NWF Group (NWF)

Sector:

Support

Index:

FTSE AIM All-Share

206.00p
   
  • Change Today:
      3.00p
  • 52 Week High: 275.00
  • 52 Week Low: 173.50
  • Currency: UK Pounds
  • Shares Issued: 49.44m
  • Volume: 27,994
  • Market Cap: £101.85m
  • RiskGrade: 106

Strength in fuels and food offsets feeds weakness for NWF

By Josh White

Date: Tuesday 14 Dec 2021

LONDON (ShareCast) - (Sharecast News) - Agricultural fuel, food and feed distributor NWF Group updated the market on its first half on Tuesday, reporting that trading in the latter part of the period was strong, with underlying trends in its markets consistent through the half-year.
The AIM-traded firm said that as a result, it now expected to report underlying results for the first half "significantly ahead" of last year, as it saw a return on its recent investments.

Its board said the strong first half performance provided a "solid platform" for the business entering the "seasonally important" third quarter, and thus the directors remained confident of delivering on full-year expectations.

In fuels, the company described a strong performance ahead of expectations, as well as the prior year comparative period.

The division saw a short-term benefit from increased demand related to the fuel shortages in the autumn, with the group maintaining continuity of supply at all depots across the country.

NWF said it experienced no supply shortages during the period, and had a "full complement of drivers" to meet demand.

Its board was continuing to appraise earnings-enhancing acquisition opportunities for the division, in line with the strategy of consolidating a fragmented UK fuels market.

In the food division, NWF said it performed "well ahead" of the prior year, as the business benefited from its enlarged capacity, experiencing strong demand, as well as enhanced efficiency with stock in optimum locations.

The company said there was still some near-term volatility in market conditions, as customers experienced difficulties in manufacturing and importing ambient groceries, with supermarkets increasing stock levels as a result of concerns over driver availability and supply chain issues.

Finally, in feeds, the company reported a "disappointing" performance, behind the prior year as a result of lower volumes, significant commodity price and cost inflation, and the challenges of passing that through to customers in the short term.

In the latter part of the first half, price increases were implemented to cover the inflationary pressures, and there was "an element" of volume recovery, although it was still lower than the prior year.

Net debt at the end of the first half was "materially lower" than last year, the board said, as a result of the stronger trading result, together with ongoing disciplined cash management across the group.

That provided the business with "significant capacity" to support its investment-driven growth strategy.

On the governance front, NWF said that in line with its governance policy, current non-executive chair Philip Acton would step down at the time of the 2022 annual general meeting next September, having completed nine years of service with the company.

David Downie, currently senior independent non-executive director, would be appointed as chair at that time.

The process to recruit an additional non-executive director would begin "shortly", with an appointment to be made ahead of the 2022 meeting.

"We have delivered a very strong first half performance, despite volatile market demand and significant inflationary pressures," said chief executive officer Richard Whiting.

"The group has been able to retain labour and drivers, ensuring we have continued to service our customers' needs."

Whiting said both fuels and food delivered "significant" year-on-year growth in the first half, more-than-offsetting a weaker feeds result, with the firm entering its seasonally busier second half with good momentum.

"We continue to focus on the long-term growth of the group, with a clear strategy which is supported by a very strong financial position."

At 1239 GMT, shares in NWF Group were up 0.95% at 212p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

NWF Group Market Data

Currency UK Pounds
Share Price 206.00p
Change Today 3.00p
% Change 1.48 %
52 Week High 275.00
52 Week Low 173.50
Volume 27,994
Shares Issued 49.44m
Market Cap £101.85m
RiskGrade 106

NWF Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
71.88% above the market average71.88% above the market average71.88% above the market average71.88% above the market average71.88% above the market average
82.22% above the sector average82.22% above the sector average82.22% above the sector average82.22% above the sector average82.22% above the sector average
Price Trend
22.17% below the market average22.17% below the market average22.17% below the market average22.17% below the market average22.17% below the market average
14.85% below the sector average14.85% below the sector average14.85% below the sector average14.85% below the sector average14.85% below the sector average
Income
51.52% above the market average51.52% above the market average51.52% above the market average51.52% above the market average51.52% above the market average
63.08% above the sector average63.08% above the sector average63.08% above the sector average63.08% above the sector average63.08% above the sector average
Growth
31.77% above the market average31.77% above the market average31.77% above the market average31.77% above the market average31.77% above the market average
20.00% above the sector average20.00% above the sector average20.00% above the sector average20.00% above the sector average20.00% above the sector average

What The Brokers Say

Strong Buy 1
Buy 1
Neutral 1
Sell 0
Strong Sell 0
Total 3
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

NWF Group Dividends

  Latest Previous
  Interim Final
Ex-Div 21-Mar-24 02-Nov-23
Paid 01-May-24 08-Dec-23
Amount 1.00p 6.80p

Trades for 28-Mar-2024

Time Volume / Share Price
15:40 333 @ 210.00p
14:18 270 @ 206.00p
14:18 723 @ 203.55p
14:18 230 @ 203.55p
14:15 515 @ 206.00p

NWF Group Key Personnel

Chair Philip Acton

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