NWF Group plc
NWF Group plc: Final results for the year ended 31 May 2025
“A robust financial performance, slightly ahead of initial market expectations, with profitable growth across each business. Significant progress made with the Group’s strategy through delivering two acquisitions and the successful implementation of business improvement initiatives. Strong results in Fuels and Feeds offset the outcome in Food where decisive actions have been taken to improve performance.”
NWF Group plc (‘NWF’, ‘the Company’ or ‘the Group’), a specialist distributor operating in UK markets, today announces its audited final results for the year ended 31 May 2025.
| Financial highlights | 2025 | 2024 | % |
| Revenue | £903.1m | £950.6m | -5.0% |
| Headline operating profit1 | £16.3m | £14.2m | +14.8% |
| Headline profit before taxation1 | £13.2m | £12.5m | +5.6% |
| Diluted headline earnings per share1 | 18.5p | 19.2p | -3.6% |
| Total dividend per share | 8.4p | 8.1p | +3.7% |
| Headline EBITDA1 | £22.2m | £19.4m | +14.4% |
| Net cash (excluding IFRS 16 lease liabilities) | £6.3m | £10.0m | -37.0% |
| ROCE1 | 17.5% | 16.3% | +7.4% |
| Statutory results | |||
| Operating profit | £12.6m | £14.3m | -11.9% |
| Profit before taxation | £9.3m | £12.2m | -23.8% |
| Diluted earnings per share | 12.3p | 18.4p | -33.2% |
| Net debt (including IFRS 16 lease liabilities) | £53.9m | £36.3m | +48.5% |
1 Headline operating profit is statutory operating profit before exceptional items and amortisation of acquired intangibles. Headline profit before tax is statutory profit before tax after adding back the net finance costs in respect of the Group’s defined benefit pension scheme, exceptional items and amortisation of acquired intangibles. Headline EBITDA is statutory operating profit after adding back exceptional items, amortisation of all intangibles and depreciation of property, plant and equipment. Net cash represents cash and cash equivalents less borrowings. Diluted headline earnings per share also takes into account the taxation effect thereon. ROCE is segment headline operating profit over segmental net operating assets.
Financial and operating highlights:
- The Group delivered a solid result for the full-year trading slightly ahead of initial market expectations, albeit with a different contribution mix from its three businesses than originally anticipated.
- Group revenue decreased, largely reflecting the lower price of oil and agricultural feed commodities which offset higher activity levels.
- Two Fuel acquisitions for total cash consideration of £9.9 million completed in line with the Board’s stated strategy to consolidate the UK fuel distribution market, financed from the Group’s existing cash resources.
- Business improvement initiatives successfully implemented following in-year pilot of the Fuel’s regional operating model, which is now being rolled out nationally.
- Improved margins in Fuels reflected the benefits of cost management actions taken at the start of the financial year.
- Decisive action taken in Food, following a disappointing performance, with management change and a restructuring process to right-size the cost base and create a simplified structure for future growth.
- Positive market conditions in Feeds combined with continued effective management of gross margin and operational costs resulted in good progress over the prior year.
- Strong balance sheet, providing ongoing flexibility to support continued focus on targeted acquisitions and organic investment and initiatives in existing markets.
- Proposed increase in the total dividend of 3.7% to 8.4p per share, representing the 14th consecutive year of increases and reflecting the Board’s confidence in the future prospects of the Group.
- With a strong pipeline, Fuels acquisitions are being actively pursued and the opportunity for growth through consolidating a fragmented market remains significant.
- In Food, the benefits of the restructuring taken at the end of FY25 are expected to be realised through FY26 as the business focuses on converting its near-term customer pipeline as well as building longer-term demand to support future growth.
- In Feeds, stable commodity and milk prices are expected to result in solid demand.
- Performance in the current financial year to date has been consistent with the Board’s expectations.
Business highlights:
Fuels – headline operating profit of £8.4 million (2024: £7.9 million). The demand for domestic heating oil was strong supported by the low oil price, which reduced the absolute cost of home heating for consumers. In contrast, SME customer demand for commercial diesel and gas oil was reduced, reflecting the general level of economic activity in their end markets. There were stable supply conditions and a relatively low oil price throughout the year. The business actively managed its cost base at the start of the financial year to create savings to support investment in tanker renewals. This renewal programme was slightly delayed which gave rise to short-term IFRS 16 interest cost savings in the year. The Group launched an initiative in North West England to improve both its commercial and domestic sales models and to optimise fleet efficiency through a regional operating model. This model is now being rolled out across the rest of the NWF Fuels network with restructuring costs to be presented as in-year exceptional items.
Food – headline operating profit of £4.3 million (2024: £3.7 million) including the absorption of the final ramp up costs of the new warehouse at Lymedale which was completed on schedule and to budget. The conversion of the customer pipeline has been slower than anticipated leading to lower average storage volumes than originally expected. Additionally, a lower rate of pallet throughput was experienced throughout the year. In response to the performance of the business, decisive action has been taken including senior management changes and a restructuring process, with associated exceptional costs, to right-size the cost base to reflect the current activity and to provide a simplified and more scalable organisational structure for future growth.
Feeds – headline operating profit of £3.6 million (2024: £2.6 million). A stronger milk price supported increased volumes as customers sought to maximise yield. The business continued to manage margins effectively and benefitted from lower electricity, and therefore production costs through participation in the Government scheme to support energy intensive industries. The extension of the product range through the investment in moist feed production has gone well with customer demand exceeding plan.
Chris Belsham, Chief Executive Officer, NWF Group plc, commented:
“NWF has delivered another solid financial performance having progressed its strategy through two acquisitions and successfully implementing significant business improvement initiatives.
“Fuels and Feeds both delivered strong results, offsetting the performance in Food. The Group has taken appropriate action to ensure improvements in the Food business and expects to start seeing the benefits coming through in the second half of FY26.
“Performance in the current financial year to date has been consistent with the Board’s expectations. We continue to focus on our long-term growth strategy of development through targeted acquisitions, organic investment and improvement initiatives, supported by our strong financial position and confidence in NWF’s potential and prospects.”