TIDMNWF
RNS Number : 5188V
NWF Group PLC
31 January 2017
NWF Group plc
NWF Group plc: Half Year results for the period ended 30
November 2016
NWF Group plc ("NWF" or "the Group"), the specialist
agricultural and distribution business delivering feed, food and
fuel across the UK, today announces its half year results for the
period ended 30 November 2016.
Financial highlights 2016 2015 %
-------------------------- ------------ ------------ --------
Revenue GBP255.9m GBP224.6m +13.9%
Headline operating
profit* GBP2.2m GBP2.8m (21.4%)
Headline profit
before taxation* GBP2.0m GBP2.6m (23.1%)
Fully diluted headline
EPS* 3.3p 4.3p (23.3%)
Fully diluted EPS 2.1p 2.9p (27.6%)
Interim dividend
per share 1.0p 1.0p -
Net debt GBP19.1m GBP10.4m +83.7%
Net debt to EBITDA 1.6x 0.8x
-------------------------- ------------ ------------ --------
* Headline operating profit excludes exceptional items. Headline
profit before taxation excludes exceptional items and the net
finance cost in respect of the Group's defined benefit pension
scheme and the taxation effect thereon where relevant. Statutory
profit before taxation was GBP1.3 million (2015: GBP1.8
million).
Operational highlights:
-- Revenue growth in all three divisions - reflecting
acquisition contributions, higher activity levels and increased
commodity prices in Feeds and Fuels
-- Profitability impacted by weak first quarter performance due
to a warm summer and rapid commodity price increases
-- Development and expansion of the feed mill infrastructure being delivered successfully
-- Board's full year expectations for performance and net debt levels maintained
Divisional highlights:
-- Feeds - headline operating loss of GBP0.3 million (H1 2015:
profit of GBP0.3 million). The business increased volumes in the
period, benefitting from acquisitions, against a tough market
backdrop. However, profitability was adversely impacted by lower
market demand for feed in the first quarter and the rapid increase
in commodity prices as a result of global dynamics and currency
movements. Our investment in mill capacity, both in the North and
Cheshire, continues on track and will benefit the division going
forward.
-- Food - headline operating profit of GBP1.6 million (H1 2015:
GBP1.4 million). A strong result achieved through delivering
additional volume demand efficiently and managing the utilisation
of external storage facilities effectively. Service levels were
maintained at 99.7%.
-- Fuels - headline operating profit of GBP0.9 million (H1 2015:
GBP1.1 million). Delivered strong volume growth from organic and
acquisition development to offset the lower levels of market demand
for heating oil over warm summer/autumn months.
Richard Whiting, Chief Executive, NWF Group plc, commented:
"NWF has delivered growth across all three divisions in the
first half of the year despite difficult market conditions. The
Group's investment in the expansion and development of new mill
capacity in the North and Cheshire has proceeded as planned and net
debt is in line with expectations. Current trading is in line with
the Board's full year expectations."
For further information please visit www.nwf.co.uk or
contact:
Richard Whiting, Reg Hoare /Andrew Leach Justin Jones /
Chief Executive / Mike Bell
Kelsey Traynor Peel Hunt LLP
NWF Group plc MHP Communications (Nominated Adviser)
Tel: 01829 260 Tel: 020 3128 8100 Tel: 020 7418 8900
260
CHAIRMAN'S STATEMENT
NWF has continued to develop its business both organically and
as a result of planned development expenditure on new feed capacity
in both the Northern and Cheshire mills. The first quarter (as
reported at the time of the AGM in September 2016) presented some
challenging conditions with the ruminant feed market being impacted
by low milk prices and the fuel market by a lack of demand for
heating oil as a result of the warm summer/autumn period. Feeds has
increased volumes against a lower level of market demand, Food has
increased activity levels on the back of increased demand from our
customers and Fuels' volumes have increased significantly to both
offset the lack of demand for heating oil and fully utilise the
tanker fleet.
Net debt at the period end was GBP19.1 million (H1 2015: GBP10.4
million), as a result of the acquisition of Jim Peet Agriculture
and planned development expenditure on mill expansions, with net
debt to EBITDA at 1.6x (H1 2015: 0.8x). The Group's banking
facilities of GBP65.0 million are committed to October 2019 and NWF
continues to operate with substantial headroom.
Results
Revenue for the half year ended 30 November 2016 was 13.9%
higher at GBP255.9 million (H1 2015: GBP224.6 million) as a result
of acquisitions, higher levels of activity in all three divisions
and increased commodity prices in Feeds and Fuels. Headline
operating profit was lower at GBP2.2 million (H1 2015: GBP2.8
million), due to weak trading conditions in the first quarter and
the adverse impact of rapidly rising commodity prices in the Feeds
division. Headline profit before taxation(1) was GBP2.0 million (H1
2015: GBP2.6 million). An exceptional item of GBP0.4 million
relates to the costs of restructuring the Feeds business as the new
mill investment is made.
Headline basic earnings per share(1) was 3.3p (H1 2015: 4.3p)
and headline diluted earnings per share(1) was 3.3p (H1 2015:
4.3p).
Operating cash inflow for the period, before movements in
working capital, amounted to GBP3.3 million (H1 2015: GBP3.7
million). Whilst the focus on working capital management has
continued, there was an increase in working capital at the end of
November 2016 due to the increased activity levels. This resulted
in net cash absorbed by operations of GBP2.3 million (H1 2015: net
cash generated of GBP3.2 million).
Net capital expenditure in the period was GBP6.1 million (H1
2015: GBP2.2 million), representing GBP3.6 million of development
spend and a normal level of replacement capital (GBP2.5
million).
Net assets at 30 November 2016 reduced to GBP34.5 million (30
November 2015: GBP36.6 million) largely due to the increase in the
accounting valuation of the pension deficit. The IAS 19R valuation
has increased from GBP19.2 million to GBP21.9 million primarily as
a result of a reduction in the discount rate from 3.90% to 3.05%. A
triennial valuation is being undertaken as at 31 December 2016.
1 Excluding GBP0.3 million (H1 2015: GBP0.4 million) net finance
cost in respect of the defined benefit pension scheme, and
exceptional restructuring costs of GBP0.4 million (H1 2015: GBP0.4
million) and, where applicable, the tax effect thereon.
Dividend
The Board has approved an interim dividend per share of 1.0p (H1
2015: 1.0p). This will be paid on 2 May 2017 to shareholders on the
register on 24 March 2017. The shares will trade ex-dividend on 23
March 2017.
Operations
Feeds
Revenue increased by 4.8% to GBP65.1 million (H1 2015: GBP62.1
million) as a result of increased volumes and commodity prices.
Headline operating loss was GBP0.3 million, compared to a GBP0.3
million profit for the same period last year.
Volumes were up 1.5% to 268,000 tonnes (H1 2015: 264,000 tonnes)
in spite of market demand being depressed as a result of a lower
milk price, particularly in the first quarter. The lower milk
prices have continued to impact feed prices and this has been
exacerbated by a significant increase in commodity costs. Across a
basket of products, commodity costs increased by over 20% from
March to November 2016 as a result of both underlying commodity
prices and adverse movements in exchange rates. Average milk prices
at the end of November were 25.5p (November 2015: 24.6p), but were
as low as 20.5p in June 2016. The acquisitions made in the last
eighteen months have continued to perform in line with
expectations.
Food
Revenue increased by 4.1% to GBP20.1 million (H1 2015: GBP19.3
million). Headline operating profit was GBP1.6 million (H1 2015:
GBP1.4 million).
The business benefited from increased activity levels both in
storage and distribution. Activity at Wardle and in external
warehouse locations has been managed efficiently to meet this
increased level of demand and importantly a service level of 99.7%
was maintained in the period. Average storage levels in the period
were 103,000 pallet spaces (H1 2015: 99,000), and transport
activity over 10% up on prior year. Post period end we have entered
into a two-year agreement with Princes Limited to store a reduced
number of pallets at Wardle as they utilise existing warehouse
capacity within their network.
Fuels
Revenue increased by 19.2% to GBP170.7 million (H1 2015:
GBP143.2 million) as a result of increased activity levels and the
benefit of Staffordshire Fuels, which was acquired in November
2015. Headline operating profit was GBP0.9 million (H1 2015: GBP1.1
million).
Volumes increased by 17.4% to 250 million litres (H1 2015: 213
million litres) with the most significant growth in commercial
customers for road diesel and gas oil, which attract a lower gross
margin than heating oil. This area continues to develop
successfully and helped to partially offset the lower market demand
for heating oil in the warm summer months. The new start up depots
at Home Counties and Martlet are performing well, as is
Staffordshire Fuels. Brent Crude was more stable than during the
previous year at an average of $48.20 per barrel (H1 2015: $52.19
per barrel) and ended the reported period at $50.47 per barrel.
Board
As announced on 4 January 2017, Chris Belsham has been appointed
as Group Finance Director and will join the Group in June 2017. In
addition, after 10 years' service as Chairman, I have informed the
Board of my decision to step down at this year's AGM to be held in
September 2017. I am pleased to confirm that Philip Acton,
currently non-executive Director of NWF and Chairman of the
Remuneration Committee, has accepted the position of Chairman which
he will commence upon the conclusion of the AGM.
Outlook and future prospects
We have performed as planned since the period end. In Feeds, our
customers have seen some further positive increases in milk prices
and the new milling capacity comes on line to optimise our
infrastructure, deliver efficiency benefits and meet increased
demand. In the Food division, demand has remained robust and we
maintained our high service levels over the crucial Christmas
period. The division is now focused on new business development to
offset the reduced demand from Princes Limited. In Fuels, oil
prices have now moved to over $50 per barrel and the business is
trading well in the normal winter conditions experienced to
date.
Having invested significantly in new feed mill and fuel capacity
and successfully integrated recent acquisitions in both areas, we
continue to focus on growth initiatives, both organic and through
further targeted acquisitions.
Overall the Group continues to trade in line with the Board's
expectations and I look forward to updating shareholders later this
year.
Mark Hudson
Chairman
31 January 2017
Condensed consolidated income statement
for the half year ended 30 November 2016 (unaudited)
Half Half
year year Year
ended ended ended
30 November 30 November 31 May
2016 2015 2016
Note GBPm GBPm GBPm
----------------------------------- ---- ------------ ------------ -------
Revenue 3 255.9 224.6 465.9
Operating expenses (254.1) (222.2) (458.8)
----------------------------------- ---- ------------ ------------ -------
Headline operating profit(1) 2.2 2.8 8.7
Exceptional items 4 (0.4) (0.4) (1.6)
----------------------------------- ---- ------------ ------------ -------
Operating profit 3 1.8 2.4 7.1
Finance costs 5 (0.5) (0.6) (1.1)
----------------------------------- ---- ------------ ------------ -------
Headline profit before taxation(1) 2.0 2.6 8.3
Net finance cost in respect
of the defined benefit pension
scheme (0.3) (0.4) (0.7)
Exceptional items 4 (0.4) (0.4) (1.6)
----------------------------------- ---- ------------ ------------ -------
Profit before taxation 1.3 1.8 6.0
Income tax expense(2) 6 (0.3) (0.4) (1.2)
----------------------------------- ---- ------------ ------------ -------
Profit for the period attributable
to equity shareholders 1.0 1.4 4.8
----------------------------------- ---- ------------ ------------ -------
Earnings per share (pence)
Basic 7 2.1 2.9 9.8
Diluted 7 2.1 2.9 9.7
---- ------------ ------------ -------
Headline earnings per share
(pence)(1)
Basic 7 3.3 4.3 13.6
Diluted 7 3.3 4.3 13.5
----------------------------------- ---- ------------ ------------ -------
1 Headline operating profit is statutory operating profit of
GBP1.8 million (H1 2015: GBP2.4 million) before exceptional items
of GBP0.4 million (GBP0.4 million). Headline profit before taxation
is statutory profit before taxation of GBP1.3 million (H1 2015:
GBP1.8 million) after adding back the net finance cost in respect
of the Group's defined benefit pension scheme of GBP0.3 million (H1
2015: GBP0.4 million) and the exceptional items and the taxation
effect thereon where relevant.
2 Taxation on exceptional items in the current period has
reduced the charge by GBP0.1 million (H1 2015: GBP0.1 million).
Condensed consolidated statement of comprehensive income
for the half year ended 30 November 2016 (unaudited)
Half Half
year year Year
ended ended ended
30 November 30 November 31 May
2016 2015 2015
GBPm GBPm GBPm
-------------------------------------- ------------ ------------ -------
Profit for the period attributable
to equity shareholders 1.0 1.4 4.8
Items that will never be reclassified
to profit or loss:
Re-measurement (loss)/gain on the
defined benefit pension scheme (3.7) 0.9 0.2
Tax on items that will never be
reclassified to profit or loss 0.6 (0.2) (0.3)
-------------------------------------- ------------ ------------ -------
Total comprehensive (expense)/income
for the period (2.1) 2.1 4.7
-------------------------------------- ------------ ------------ -------
The notes form an integral part of this condensed consolidated
half year report.
Condensed consolidated balance sheet
as at 30 November 2016 (unaudited)
30 November 30 November 31 May
2016 2015 2016
GBPm GBPm GBPm
---------------------------------- ----------- ----------- ------
Non-current assets
Property, plant and equipment 45.2 39.4 41.1
Intangible assets 23.1 22.2 23.3
Deferred income tax assets 3.7 3.5 3.4
---------------------------------- ----------- ----------- ------
72.0 65.1 67.8
---------------------------------- ----------- ----------- ------
Current assets
Inventories 4.7 5.0 3.4
Trade and other receivables 61.8 52.6 52.8
Cash and cash equivalents 0.5 - 1.8
Derivative financial instruments
(note 8) 0.2 0.2 0.2
---------------------------------- ----------- ----------- ------
67.2 57.8 58.2
---------------------------------- ----------- ----------- ------
Total assets 139.2 122.9 126.0
---------------------------------- ----------- ----------- ------
Current liabilities
Trade and other payables (57.4) (50.1) (52.7)
Current income tax liabilities (0.4) (1.2) (0.9)
Borrowings (note 8) (0.1) (0.1) (0.1)
Derivative financial instruments
(note 8) - (0.2) -
---------------------------------- ----------- ----------- ------
(57.9) (51.6) (53.7)
---------------------------------- ----------- ----------- ------
Non-current liabilities
Borrowings (note 8) (19.5) (10.3) (11.6)
Contingent deferred consideration (1.4) (1.4) (1.4)
Deferred income tax liabilities (3.6) (3.8) (3.8)
Retirement benefit obligations (21.9) (19.2) (18.3)
Provisions (0.4) - (0.5)
---------------------------------- ----------- ----------- ------
(46.8) (34.7) (35.6)
---------------------------------- ----------- ----------- ------
Total liabilities (104.7) (86.3) (89.3)
---------------------------------- ----------- ----------- ------
Net assets 34.5 36.6 36.7
---------------------------------- ----------- ----------- ------
Equity
Share capital (note 9) 12.1 12.0 12.0
Share premium 0.9 0.9 0.9
Retained earnings 21.5 23.7 23.8
---------------------------------- ----------- ----------- ------
Total equity 34.5 36.6 36.7
---------------------------------- ----------- ----------- ------
The notes form an integral part of this condensed consolidated
half year report.
Condensed consolidated statement of changes in equity
for the half year ended 30 November 2016 (unaudited)
Share Share Retained Total
capital premium earnings equity
GBPm GBPm GBPm GBPm
------------------------------------ -------- -------- --------- -------
Balance at 1 June 2015 12.0 0.9 21.9 34.8
------------------------------------ -------- -------- --------- -------
Profit for the period - - 1.4 1.4
Items that will never be
reclassified to profit
or loss:
Re-measurement gain on
the defined benefit pension
scheme - - 0.9 0.9
Tax on items that will
never be reclassified to
profit or loss - - (0.2) (0.2)
------------------------------------ -------- -------- --------- -------
Total comprehensive expense
for the period - - 2.1 2.1
------------------------------------ -------- -------- --------- -------
Transactions with owners:
Value of employee services - - (0.3) (0.3)
- - (0.3) (0.3)
------------------------------------ -------- -------- --------- -------
Balance at 30 November
2015 12.0 0.9 23.7 36.6
------------------------------------ -------- -------- --------- -------
Profit for the period - - 3.4 3.4
Items that will never be
reclassified to profit
or loss:
Re-measurement loss on
the defined benefit pension
scheme - - (0.7) (0.7)
Tax on items that will
never be reclassified to
profit or loss - - (0.1) (0.1)
------------------------------------ -------- -------- --------- -------
Total comprehensive income
for the period - - 2.6 2.6
------------------------------------ -------- -------- --------- -------
Transactions with owners:
Dividend paid - - (2.6) (2.6)
Issue of shares - - - -
Credit to equity for equity-settled
share-based payments - - 0.1 0.1
------------------------------------ -------- -------- --------- -------
- - (2.5) (2.5)
------------------------------------ -------- -------- --------- -------
Balance at 31 May 2016 12.0 0.9 23.8 36.7
------------------------------------ -------- -------- --------- -------
Profit for the period - - 1.0 1.0
Items that will never be
reclassified to profit
or loss:
Re-measurement loss on
the defined benefit pension
scheme - - (3.7) (3.7)
Tax on items that will
never be reclassified to
profit or loss - - 0.6 0.6
------------------------------------ -------- -------- --------- -------
Total comprehensive income
for the period - - (2.1) (2.1)
------------------------------------ -------- -------- --------- -------
Transactions with owners:
Issue of shares 0.1 - (0.1) -
Value of employee services - - (0.1) (0.1)
------------------------------------ -------- -------- --------- -------
0.1 - (0.2) (0.1)
------------------------------------ -------- -------- --------- -------
Balance at 30 November
2016 12.1 0.9 21.5 34.5
------------------------------------ -------- -------- --------- -------
The notes form an integral part of this condensed consolidated
half year report.
Condensed consolidated cash flow statement
for the half year ended 30 November 2016 (unaudited)
Half Half
year year Year
ended ended ended
30 November 30 November 31 May
2016 2015 2016
GBPm GBPm GBPm
--------------------------------------- ------------ ------------ -------
Cash flows from operating activities
Operating profit 1.8 2.4 7.1
Adjustments for:
Depreciation and amortisation 2.1 2.0 3.9
Cash contributions to pension
scheme (0.7) (0.9) (1.8)
Other 0.1 0.2 (0.1)
--------------------------------------- ------------ ------------ -------
Operating cash flows before movements
in working capital 3.3 3.7 9.1
Movements in working capital:
(Increase)/decrease in inventories (1.3) (1.2) 0.9
(Increase)/decrease in receivables (9.0) 5.4 7.7
Increase/(decrease) in payables 4.7 (4.7) (3.4)
--------------------------------------- ------------ ------------ -------
Net cash (absorbed by)/generated
from operations (2.3) 3.2 14.3
Interest paid (0.2) (0.2) (0.4)
Income tax paid (0.6) (0.6) (2.0)
--------------------------------------- ------------ ------------ -------
Net cash (absorbed by)/generated
from operating activities (3.1) 2.4 11.9
--------------------------------------- ------------ ------------ -------
Cash flows from investing activities
Purchase of intangible assets (0.2) (0.2) (0.3)
Purchase of property, plant and
equipment (6.0) (2.0) (3.2)
Proceeds on sale of property,
plant and equipment 0.1 - 0.1
Acquisition of subsidiaries (net
of cash acquired) - (4.5) (7.5)
--------------------------------------- ------------ ------------ -------
Net cash absorbed by investing
activities (6.1) (6.7) (10.9)
--------------------------------------- ------------ ------------ -------
Cash flows from financing activities
Increase in bank borrowings 8.0 4.3 5.5
Repayment of bank borrowings in
respect of acquisitions - - (2.0)
Capital element of finance lease
and hire purchase payments (0.1) - (0.1)
Dividends paid - - (2.6)
--------------------------------------- ------------ ------------ -------
Net cash generated from financing
activities 7.9 4.3 0.8
--------------------------------------- ------------ ------------ -------
Net movement in cash and cash
equivalents (1.3) - 1.8
Cash and cash equivalents at beginning
of period 1.8 - -
--------------------------------------- ------------ ------------ -------
Cash and cash equivalents at end
of period 0.5 - 1.8
--------------------------------------- ------------ ------------ -------
The notes form an integral part of this condensed consolidated
half year report.
Notes to the condensed consolidated half year report
for the half year ended 30 November 2016 (unaudited)
1. General information
NWF Group plc ('the Company') is a public limited company
incorporated and domiciled in the UK under the Companies Act 2006.
The address of its registered office is NWF Group plc, Wardle,
Nantwich, Cheshire CW5 6BP.
The Company has its primary listing on AIM, part of the London
Stock Exchange.
These condensed consolidated interim financial statements
('interim financial statements') were approved for issue on 31
January 2017.
These interim financial statements do not constitute statutory
accounts within the meaning of Section 434 of the Companies Act
2006. The interim financial statements for the half year ended 30
November 2016 and 30 November 2015 are neither audited nor reviewed
by the Company's auditors. Statutory accounts for the year ended 31
May 2016 were approved by the Board of Directors on 3 August 2016
and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under Section 498 of the Companies Act 2006.
2. Basis of preparation and accounting policies
Except as described below, these interim financial statements
have been prepared in accordance with the principal accounting
policies used in the Company's consolidated financial statements
for the year ended 31 May 2016. These interim financial statements
should be read in conjunction with those consolidated financial
statements, which have been prepared in accordance with IFRS as
endorsed by the European Union.
These interim financial statements do not fully comply with IAS
34 'Interim Financial Reporting', as is currently permissible under
the rules of AIM.
Taxes on income in the interim periods are accrued using the tax
rate that would be applicable to expected total annual
earnings.
The triennial actuarial valuation of the Group's defined benefit
pension scheme was completed in the half year ended 30 November
2014, with a deficit of GBP14.1 million at the valuation date of 31
December 2013. In these interim financial statements, this
liability has been updated in order to derive the IAS 19R valuation
as of 30 November 2016. The triennial valuation resulted in Group
contributions of GBP1.8 million per annum, including recovery plan
payments of GBP1.2 million per annum for 12 years from 1 January
2014.
The Directors consider that headline operating profit, headline
profit before taxation and headline earnings per share measures
referred to in these interim financial statements, provide useful
information for shareholders on underlying trends and performance.
Headline profit before taxation is reported profit before taxation,
after adding back the net finance cost in respect of the Group's
defined benefit pension scheme, and the exceptional items and the
taxation effect thereon where relevant. The calculations of basic
and diluted headline earnings per share are shown in note 7 of
these interim financial statements.
Certain statements in these interim financial statements are
forward looking. The terms 'expect', 'anticipate', 'should be',
'will be' and similar expressions identify forward looking
statements. Although the Board of Directors believes that the
expectations reflected in these forward looking statements are
reasonable, such statements are subject to a number of risks and
uncertainties and actual results and events could differ materially
from those expressed or implied by these forward looking
statements.
A number of amendments to IFRSs became effective for the
financial period beginning on 1 June 2016 however the Group did not
have to change its accounting policies or make material
retrospective adjustments as a result of adopting these new
standards.
3. Segment information
The chief operating decision-maker has been identified as the
Board of Directors ('the Board'). The Board reviews the Group's
internal reporting in order to assess performance and allocate
resources. The Board has determined that the operating segments,
based on these reports, are Feeds, Food and Fuels.
The Board considers the business from a product/services
perspective. In the Board's opinion, all of the Group's operations
are carried out in the same geographical segment, namely the
UK.
The nature of the products/services provided by the operating
segments are summarised below:
Feeds - manufacture and sale of animal feeds and other agricultural products
Food - warehousing and distribution of clients' ambient grocery
and other products to supermarket and other retail distribution
centres
Fuels - sale and distribution of domestic heating, industrial and road fuels
Segment information about the above businesses is presented
below.
The Board assesses the performance of the operating segments
based on a measure of headline operating profit. Finance income and
costs are not included in the segment result which is assessed by
the Board. Other information provided to the Board is measured in a
manner consistent with that in the financial statements.
Inter-segment transactions are entered into under the normal
commercial terms and conditions that would also be available to
unrelated third parties.
Segment assets exclude deferred income tax assets and cash and
cash equivalents. Segment liabilities exclude taxation, contingent
deferred consideration, borrowings and retirement benefit
obligations. Excluded items are part of the reconciliation to
consolidated total assets and liabilities.
Half year ended 30 November Feeds Food Fuels Group
2016 GBPm GBPm GBPm GBPm
------------------------------ ----- ----- ----- -----
Revenue
Total revenue 67.5 20.4 173.3 261.2
Inter-segment revenue (2.4) (0.3) (2.6) (5.3)
------------------------------ ----- ----- ----- -----
Revenue 65.1 20.1 170.7 255.9
------------------------------ ----- ----- ----- -----
Result
Headline operating profit (0.3) 1.6 0.9 2.2
------------------------------ ----- ----- -----
Segment exceptional items
(note 4) (0.4) - - (0.4)
-----
Operating profit as reported 1.8
Finance costs (note 5) (0.5)
-----
Profit before taxation 1.3
Income tax expense (note
6) (0.3)
------------------------------ ----- ----- ----- -----
Profit for the period 1.0
------------------------------ ----- ----- ----- -----
Other information
Depreciation and amortisation 0.6 0.8 0.7 2.1
------------------------------ ----- ----- ----- -----
Feeds Food Fuels Group
As at 30 November 2016 GBPm GBPm GBPm GBPm
---------------------------------- ------ ----- ------ -------
Balance sheet
Assets
Segment assets 52.0 32.1 50.9 135.0
---------------------------------- ------ ----- ------
Deferred income tax assets 3.7
Cash and cash equivalents 0.5
---------------------------------- ------ ----- ------ -------
Consolidated total assets 139.2
---------------------------------- ------ ----- ------ -------
Liabilities
Segment liabilities (13.3) (4.1) (40.4) (57.8)
---------------------------------- ------ ----- ------
Current income tax liabilities (0.4)
Deferred income tax liabilities (3.6)
Borrowings (19.6)
Contingent deferred consideration (1.4)
Retirement benefit obligations (21.9)
---------------------------------- ------ ----- ------ -------
Consolidated total liabilities (104.7)
---------------------------------- ------ ----- ------ -------
Half year ended 30 November Feeds Food Fuels Group
2015 GBPm GBPm GBPm GBPm
------------------------------ ----- ----- ----- -----
Revenue
Total revenue 64.3 19.6 145.5 229.4
Inter-segment revenue (2.2) (0.3) (2.3) (4.8)
------------------------------ ----- ----- ----- -----
Revenue 62.1 19.3 143.2 224.6
------------------------------ ----- ----- ----- -----
Result
Headline operating profit 0.3 1.4 1.1 2.8
------------------------------ ----- ----- -----
Segment exceptional items
(note 4) (0.2) (0.1) (0.1) (0.4)
-----
Operating profit as reported 2.4
Finance costs (note 5) (0.6)
-----
Profit before taxation 1.8
Income tax expense (note
6) (0.4)
------------------------------ ----- ----- ----- -----
Profit for the period 1.4
------------------------------ ----- ----- ----- -----
Other information
Depreciation and amortisation 0.6 0.8 0.6 2.0
------------------------------ ----- ----- ----- -----
Feeds Food Fuels Group
As at 30 November 2015 GBPm GBPm GBPm GBPm
---------------------------------- ----- ----- ------ ------
Balance sheet
Assets
Segment assets 41.9 32.2 45.3 119.4
---------------------------------- ----- ----- ------
Deferred income tax assets 3.5
Cash and cash equivalents -
---------------------------------- ----- ----- ------ ------
Consolidated total assets 122.9
---------------------------------- ----- ----- ------ ------
Liabilities
Segment liabilities (9.5) (4.2) (36.6) (50.3)
---------------------------------- ----- ----- ------
Current income tax liabilities (1.2)
Deferred income tax liabilities (3.8)
Borrowings (10.4)
Contingent deferred consideration (1.4)
Retirement benefit obligations (19.2)
---------------------------------- ----- ----- ------ ------
Consolidated total liabilities (86.3)
---------------------------------- ----- ----- ------ ------
Feeds Food Fuels Group
Year ended 31 May 2016 GBPm GBPm GBPm GBPm
------------------------------ ----- ----- ----- ------
Revenue
Total revenue 142.5 38.1 297.8 478.4
Inter-segment revenue (6.7) (0.5) (5.3) (12.5)
------------------------------ ----- ----- ----- ------
Revenue 135.8 37.6 292.5 465.9
------------------------------ ----- ----- ----- ------
Result
Headline operating profit 2.1 2.7 3.9 8.7
------------------------------ ----- ----- -----
Segment exceptional items
(note 4) (2.6) (0.1) (0.2) (2.9)
Group exceptional items 1.3
------
Operating profit as reported 7.1
Finance costs (note 5) (1.1)
------
Profit before taxation 6.0
Income tax expense (note
6) (1.2)
------------------------------ ----- ----- ----- ------
Profit for the year 4.8
------------------------------ ----- ----- ----- ------
Other information
Depreciation and amortisation 1.0 1.5 1.4 3.9
------------------------------ ----- ----- ----- ------
Feeds Food Fuels Group
As at 31 May 2016 GBPm GBPm GBPm GBPm
---------------------------------- ------ ----- ------ ------
Balance sheet
Assets
Segment assets 45.1 31.0 44.7 120.8
---------------------------------- ------ ----- ------
Deferred income tax assets 3.4
Cash and cash equivalents 1.8
---------------------------------- ------ ----- ------ ------
Consolidated total assets 126.0
---------------------------------- ------ ----- ------ ------
Liabilities
Segment liabilities (14.6) (3.9) (34.7) (53.2)
---------------------------------- ------ ----- ------
Current income tax liabilities (0.9)
Deferred income tax liabilities (3.8)
Borrowings (11.7)
Contingent deferred consideration (1.4)
Retirement benefit obligations (18.3)
---------------------------------- ------ ----- ------ ------
Consolidated total liabilities (89.3)
---------------------------------- ------ ----- ------ ------
4. Profit before taxation - exceptional items
Half Half
year year Year
ended ended ended
30 November 30 November 31 May
2016 2015 2016
GBPm GBPm GBPm
----------------------------------- ------------ ------------ -------
Restructuring costs (0.4) (0.2) (2.6)
Acquisition-related costs - (0.2) (0.3)
Net gain on pension scheme closure - - 1.3
----------------------------------- ------------ ------------ -------
Net exceptional cost (0.4) (0.4) (1.6)
----------------------------------- ------------ ------------ -------
During the period, the Group incurred exceptional costs of
GBP0.4 million relating to the new mill investment and
restructuring of the Feeds business.
5. Finance costs
Half Half
year year Year
ended ended ended
30 November 30 November 31 May
2016 2015 2016
GBPm GBPm GBPm
-------------------------------------- ------------ ------------ -------
Interest on bank loans and overdrafts 0.2 0.2 0.4
-------------------------------------- ------------ ------------ -------
Total interest expense 0.2 0.2 0.4
Net finance cost in respect
of the defined benefit pension
scheme 0.3 0.4 0.7
-------------------------------------- ------------ ------------ -------
Total finance costs 0.5 0.6 1.1
-------------------------------------- ------------ ------------ -------
6. Income tax expense
The income tax expense for the half year ended 30 November 2016
is based upon management's best estimate of the weighted average
annual tax rate expected for the full financial year ending 31 May
2017 of 20.9% (H1 2015: 20.7%).
7. Earnings per share
The calculation of basic and diluted earnings per share is based
on the following data:
Half Half
year year Year
ended ended ended
30 November 30 November 31 May
2016 2015 2016
GBPm GBPm GBPm
------------------------------------------ ------------ ------------ -------
Earnings
Earnings for the purposes of basic
and diluted earnings per share
being profit for the period attributable
to equity shareholders 1.0 1.4 4.8
------------------------------------------ ------------ ------------ -------
Half Half
year year Year
ended ended ended
30 November 30 November 31 May
2016 2015 2016
000s 000s 000s
-------------------------------------- ------------ ------------ -------
Number of shares
Weighted average number of shares
for the purposes of basic earnings
per share 48,599 48,410 48,469
Weighted average dilutive effect
of conditional share awards (note
9) 45 119 420
-------------------------------------- ------------ ------------ -------
Weighted average number of shares
for the purposes of diluted earnings
per share 48,644 48,529 48,889
-------------------------------------- ------------ ------------ -------
The calculation of basic and diluted headline earnings per share
is based on the following data:
Half Half
year year Year
ended ended ended
30 November 30 November 31 May
2016 2015 2016
GBPm GBPm GBPm
------------------------------------ ------------ ------------ -------
Profit for the period attributable
to equity shareholders 1.0 1.4 4.8
Add back:
Net finance cost in respect of
the defined benefit pension scheme 0.3 0.4 0.7
Exceptional items 0.4 0.4 1.6
Tax effect of the above (0.1) (0.1) (0.5)
------------------------------------ ------------ ------------ -------
Headline earnings 1.6 2.1 6.6
------------------------------------ ------------ ------------ -------
8. Financial instruments
The Group's financial instruments comprise cash, bank
overdrafts, invoice discounting advances, obligations under hire
purchase agreements, derivatives and various items such as
receivables and payables, which arise from its operations. There is
no significant foreign exchange risk in respect of these
instruments.
The carrying amounts of all of the Group's financial instruments
are measured at amortised cost in the financial statements, with
the exception of derivative financial instruments being forward
supply contracts. Derivative financial instruments are measured at
fair value subsequent to initial recognition.
The Group classifies fair value measurement using a fair value
hierarchy that reflects the significance of inputs used in making
measurements of fair value. The fair value hierarchy has the
following levels:
-- Level 1 fair value measurements are those derived from
unadjusted quoted prices in active markets for identical assets or
liabilities;
-- Level 2 fair value measurements are those derived from
inputs, other than quoted prices included within Level 1 above,
that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices); and
-- Level 3 fair value measurements are those derived from
valuation techniques that include inputs for the asset or liability
that are not based on observable market data (unobservable
inputs).
All of the Group's derivative financial instruments were
classified as Level 2 in the current and prior periods. There were
no transfers between levels in both the current and prior
periods.
The book and fair values of financial assets at 30 November
2016, other than non-interest bearing short-term trade and other
receivables, are as follows:
30 November 30 November 31 May
2016 2015 2016
Total book and fair value GBPm GBPm GBPm
-------------------------------------- ----------- ----------- ------
Financial assets carried at fair
value: derivatives 0.2 0.2 0.2
Financial assets carried at amortised
cost: cash and cash equivalents 0.5 - 1.8
-------------------------------------- ----------- ----------- ------
Financial assets 0.7 0.2 2.0
-------------------------------------- ----------- ----------- ------
The book and fair values of financial liabilities at 30 November
2016, other than non-interest bearing short-term trade and other
payables, are as follows:
30 November 30 November 31 May
2016 2015 2016
Total book and fair value GBPm GBPm GBPm
-------------------------------------- ----------- ----------- ------
Financial liabilities carried
at fair value: derivatives - 0.2 -
Financial liabilities carried
at amortised cost:
- Hire purchase obligations repayable
within one year 0.1 0.1 0.1
- Floating rate invoice discounting
advances 9.4 3.2 1.4
- Revolving credit facility 10.0 7.0 10.0
- Hire purchase obligations repayable
after more than one year 0.1 0.1 0.2
-------------------------------------- ----------- ----------- ------
19.5 10.3 11.6
Financial liabilities 19.6 10.6 11.7
-------------------------------------- ----------- ----------- ------
9. Share capital
Number
of shares Total
(000s) GBPm
----------------------------------------- ---------- -----
Allotted and fully paid: ordinary shares
of 25p each
Balance at 31 May 2015 48,350 12.0
Issue of shares (see below) 178 -
----------------------------------------- ---------- -----
Balance at 30 November 2015 48,528 12.0
Issue of shares - -
----------------------------------------- ---------- -----
Balance at 31 May 2016 48,528 12.0
Issue of shares (see below) 116 0.1
----------------------------------------- ---------- -----
Balance at 30 November 2016 48,644 12.1
----------------------------------------- ---------- -----
During the half year ended 30 November 2016, 116,139 (H1 2015:
178,103) shares with an aggregate nominal value of GBP29,035 (H1
2015: GBP44,525) were issued under the Company's conditional
Performance Share Plan.
The maximum total number of ordinary shares that may vest in the
future in respect of conditional Performance Share Plan awards
outstanding at 30 November 2016 amounted to 866,884 (H1 2015:
1,164,392) shares. These shares will only be issued subject to
satisfying certain performance criteria.
12. Half Year Report
Copies of this Half Year Report are due to be sent to
shareholders on 7 February 2017. Further copies may be obtained
from the Company Secretary at NWF Group plc, Wardle, Nantwich,
Cheshire CW5 6BP, or from the Company's website at
www.nwf.co.uk.
13. 2017 financial calendar
Interim dividend paid 2 May 2017
Financial year end 31 May 2017
Full year results announcement Early August 2017
Publication of Annual Report and Accounts Late August 2017
Annual General Meeting 28 September 2017
Final dividend paid Early December 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAPFEDEEXEFF
(END) Dow Jones Newswires
January 31, 2017 02:00 ET (07:00 GMT)
Nwf (LSE:NWF)
Historical Stock Chart
From Mar 2024 to Apr 2024
Nwf (LSE:NWF)
Historical Stock Chart
From Apr 2023 to Apr 2024
