NWF Group plc – Preliminary results

NWF Group plc, the specialist agricultural and distribution business, today makes the preliminary announcement of its audited results for the year ended 31 May 2011.
 
Commenting on the results, Mark Hudson, Chairman, said: “I am pleased to report another record year in the continuing development of the Group.  We have delivered an excellent result demonstrating the resilience of the Group during a period of significant volatility in key commodity markets.”
Richard Whiting, Chief Executive, added: “In addition to a third year of record profitability and positive cash generation, the Group has demonstrated its strategic intent with the successful acquisition and integration of the Evesons fuels business.”
 
Financial highlights

• Revenue up 22.1% to £463.8 million (2010: £379.8 million)
• Operating profit up 3.3% to £9.3 million (2010: £9.0 million)
• Profit before taxation up 7.0% to £7.6 million (2010: £7.1 million)
• Basic earnings per share up 10.6% to 11.5p (2010: 10.4p)
• Full year dividend increased by 4.7% to 4.5p per share (2010: 4.3p)
• Cash conversion 182.8% (2010: 156.7%)
• Reduction in net debt of 18.7% to £11.3 million (31 May 2010: £13.9 million)
• Debt to EBITDA at 0.9 times (31 May 2010: 1.1 times)
• £51.0 million banking facilities in place to October 2013

 
Divisional highlights:
Feeds – record operating profit of £4.0 million (2010: £2.1 million): successfully delivered at a time of significantly increasing commodity prices, implementing feed price increases, selling more compounds direct to farmers and delivering operational efficiencies across our mills and blend operations.
 
Food – operating profit of £2.0 million (2010: £3.1 million): demonstrated a positive recovery from the first half, in a year with significant volatility of demand for grocery products as food inflation was challenged by supermarkets with increased promotional activity and the requirements of our customers led to the utilisation of overflow warehousing and inefficient operations.
 
Fuels – operating profit of £3.3 million (2010: £3.8 million): focused on customer service to deliver a strong performance against a previous year which had a long cold winter, completing and successfully integrating the Evesons Fuels acquisition.
 
Commenting on the outlook for 2012, Mark Hudson added: “Progress in the new financial year has been in line with the Board’s expectations with all divisions starting as planned. The markets for the Group’s products and services remain resilient and robust. With a very stable operational and financial base we continue to target development opportunities.”