Skilled for growth

NWF Group plc

Annual Report and Accounts 2023

NWF Group is a specialist distributor of fuels, food and feeds across the UK. Our people are highly skilled and focused on delivering for our customers across all divisions.

Skilled for growth

FuelsFoodFeeds

Read more on page 10

  Read more on page 14

  Read more on page 18

Divisional highlights

Fuels' resilient performance was delivered by meeting customers' needs through a period of continued significant price volatility and some localised shortages of fuels."

Dave Walmsley

Managing Director, Fuels

Food delivered a strong performance improvement as a result of increased outloads and associated backhaul work, fully utilised warehouses throughout the year and improved efficiency levels."

Angela Carus

Managing Director, Food

The outstanding performance improvement has been driven by farmers utilising nutritional advice to optimise diets and added value products to benefit from a record high

milk price."

Andrew Downie

Managing Director, Feeds

Financial highlights for the year ended 31 May 2023

Revenue

Total dividend per share

Diluted headline EPS1

£1,053.9m

7.8p

31.4p-

+20.0%

+4.0%

9.8%

23

1,053.9

23

7.8

23

31.4

22

878.6

22

7.5

22

34.8

21

675.6

21

7.2

21

20.4

Headline profit before tax¹

Headline operating profit¹

Net cash/(debt)2

£19.6m

£- 21.0m

£16.3m

-6.2%

3.7%

23

19.6

23

21.0

23

16.3

22

20.9

22

21.8

22

9.0

21

11.9

21

12.9

(5.7)

21

  1. Headline operating profit excludes exceptional items and amortisation of acquired intangibles. Headline profit before taxation excludes exceptional items, amortisation of acquired intangibles and the net finance cost in respect of the Group's defined benefit pension scheme. Diluted headline earnings per share also takes into account the taxation effect thereon.
  2. Net cash/(debt) excluding IFRS 16 lease liabilities.

Overview

Contents

Overview

52

Board of Directors and Company Secretary

IFC Divisional highlights

54

Senior management

1

Financial highlights

55

Corporate governance statement

2

At a glance

61

Audit Committee report

4

Chair's statement

64

Nomination Committee report

Strategic report

66

Directors' remuneration report

70

Directors' report

6

Chief Executive's review

72

Statement of Directors' responsibilities

9

Divisional review

Financial statements

10

Divisional review: Fuels

14

Divisional review: Food

73

Independent auditors' report

18

Divisional review: Feeds

78

Consolidated income statement

22

Business model

79

Consolidated statement of

24

Group financial review

comprehensive income

80

Consolidated balance sheet

27

Principal risks and uncertainties

81

Consolidated statement

ESG framework

82

of changes in equity

31

ESG

Consolidated cash flow statement

43

Section 172

83

Notes to the Group financial statements

48

TCFD

113 Parent Company balance sheet

114 Parent Company statement of comprehensive income

114 Parent Company statement of changes in equity

115 Notes to the Parent Company financial statements

Shareholder information

125 Notice of Annual General Meeting

126 Notes to the Notice of Annual General Meeting

128 Explanatory notes to the Notice of Annual General Meeting

IBC Financial calendar IBC Divisional contacts IBC Advisors

NWF GROUP PLCNWF.CO.UK

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At a glance

Specialist distribution across the UK

What we do

Fuels

National depot network

NWF Fuels is a leading distributor of fuel oil and fuel cards delivering over 636 million litres across the UK to 100,000 customers.

Headline operating profit

£12.9m

-25.0%

  Read more on pages 10 to 13

Food

Leading ambient consolidator

Boughey Distribution is a leading consolidator of ambient grocery products to UK supermarkets with over 1,000,000ft²

of warehousing and significant distribution assets.

Headline operating profit

£4.2m

+50.0%

  Read more on pages 14 to 17

Feeds

Focus on nutrition

NWF Agriculture has grown to be a leading national supplier of ruminant animal feed to 4,132 customers in the UK, feeding one in six dairy cows in Britain.

Headline operating profit

£3.9m

+116.7%

  Read more on pages 18 to 21

Our strategic objectives

Ambitions and commitments by 2025

Create a culture

of safety

Invest in our people

  Read more on

Respect the

pages 31 to 42

environment

Build strong partnerships

Embed a behavioural safety approach to encourage positive open dialogue about safety in all our operations.

Improve standards and policies, risk assessments and collaboration with our supply chain to maximise positive impacts for our stakeholders.

Broaden our training and professional development programmes and wider employee wellness initiatives.

Continue to invest in latest truck technology and fuel sources, and plan for renewable energy transition.

2 NWF GROUP PLCANNUAL REPORT AND ACCOUNTS 2023

How we do it

• Acquisitions and new

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Capital

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policy

  • Maintenance capital
  • Strong balance sheet
  • Minimum 50% payout ratio dividend

Overview

developments

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Additional dividend

amounts

• Share buy-backs

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Appropriate bank debt

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Investment case

Strong management team

Solid track record with ambition

7

Fuels acquisitions since 2019

Focus on returns

Return on capital employed is a key metric

27.6%

headline ROCE (2022: 30.3%)

Growth opportunities

Consolidate and optimise

1

clear strategy

Good cash generation

£32 million of cash generated from operating activities

107.6%

cash conversion (2022: 97.7%)

Asset backing

Strong balance sheet

£217.6m

total assets (2022: 213.9m)

Growing dividend

Increased dividend for 11 consecutive years

7.8p

total dividend per share (2022: 7.5p)

NWF GROUP PLCNWF.CO.UK

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Disclaimer

NWF Group plc published this content on 17 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 August 2023 10:30:08 UTC.