Interim Results

NWF Group PLC
1 February 2002


                                 NWF Group plc


           INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2001


                              Chairman's Statement


I am pleased to report another strong performance by the Group. Pre-tax profit
for the period was up 20% to £1,203,000 from last year's £1,005,000. Turnover
rose by 5% from £70m to £74m and earnings per share climbed from 8.8p to 10.5p.


The Board has reconfirmed its progressive dividend policy and approved an
Interim Dividend of 3.6p per share (2000: 3.2p) which will be paid on 1 May 2002
to shareholders on the Register on 2 April 2002. The shares will go ex-dividend
on 27 March 2002.


The Agriculture business lifted operating profits significantly to £469,000 from
£276,000 in the first half of last year by further increases in market share and
by improved efficiencies. In the period, sales of compounded and blended feeds
were 115,000 tons (2000: 102,000 tons). Trading activities of other agricultural
inputs were also successful.


The first half year saw the full use of the new warehousing capacity in
Distribution which helped raise operating profits from £554,000 to £608,000.
Further operating efficiencies are in train. The packing activity was
particularly busy with a turnover in the period more than double that of last
year.


Fuels had a firm half with operating profits at £462,000 which were, as
expected, a little lower than last year's result of £491,000 which had been
partially driven by the exceptional demand for fuels in the autumn of 2000.
Lincolnshire Fuels has been launched as a start-up, drawing product from the
Conoco refinery at Immingham.


The Retail business enjoyed better success this time and returned an on-plan
operating profit of £6,000, an improvement on the weather-affected loss of
£36,000 last year. Garden Centre sales were 10% higher than last time while the
majority of the Country Stores also improved on last year.


The Board expects that progress for the Group will be maintained but the second
half performance, which has historically contributed the majority of the annual
profit, will depend on the usual seasonal factors in the final months leading up
to May 2002.


On 1 November, we welcomed John Acornley to the Board as a Non-Executive
Director. John, who is 48, has extensive business and financial experience and
currently serves on the Board of several other companies.




J Roy Willis

Chairman

31 January 2002






Group Profit and Loss Account

Half year to 30 November 2001

                                                                  Unaudited         Unaudited           Audited

                                                               Half year to      Half year to           Year to

                                                                30 November       30 November            31 May

                                                                       2001              2000              2001
                                                                                                    as restated
                                                            ---------------   ---------------   ---------------
                                                                      £'000             £'000             £'000
Turnover                                                             73,883            70,327           147,187
Operating costs                                                    (72,338)          (69,042)         (143,090)
                                                            ---------------   ---------------   ---------------
Operating profit                                                      1,545             1,285             4,097
Interest payable                                                      (342)             (280)             (693)
                                                            ---------------   ---------------   ---------------
Profit on ordinary activities before taxation                         1,203             1,005             3,404
Taxation                                                              (373)             (312)           (1,055)
                                                            ---------------   ---------------   ---------------
Profit after taxation                                                   830               693             2,349
Equity dividends payable                                              (285)             (253)             (877)
                                                            ---------------   ---------------   ---------------
Profit transferred to reserves                                          545               440             1,472
                                                            ---------------   ---------------   ---------------

Earnings per share (see note 1)
Basic and diluted                                                     10.5p              8.8p             29.7p


Dividends per share                                                    3.6p              3.2p             11.1p



    Summarised Group Balance Sheet

    At 30 November 2001

                                                                  Unaudited         Unaudited           Audited

                                                                30 November       30 November            31 May

                                                                       2001              2000              2001
                                                                                  as restated       as restated
                                                            ---------------   ---------------   ---------------
                                                                      £'000             £'000             £'000
Goodwill                                                                687               724               705
Fixed assets                                                         17,434            17,187            17,324
Stocks                                                                4,562             5,122             4,943
Debtors                                                              18,372            18,960            19,281
Cash and bank balances                                                   22                15                21
Creditors: amounts falling due within one year                     (22,639)          (24,615)          (24,050)
                                                            ---------------   ---------------   ---------------
Total assets less current liabilities                                18,438            17,393            18,224
Creditors: amounts falling due after more than one year             (3,840)           (4,411)           (4,180)
Provision for liabilities and charges                               (1,008)             (988)           (1,018)
                                                            ---------------   ---------------   ---------------
Net assets                                                           13,590            11,994            13,026
                                                            ---------------   ---------------   ---------------
Total equity shareholders' funds                                     13,590            11,994            13,026
                                                            ---------------   ---------------   ---------------




Reconciliation of Movements in Equity

Shareholders' Funds

Half year to 30 November 2001
                                                                 Unaudited         Unaudited           Audited

                                                              Half year to      Half year to           Year to

                                                               30 November       30 November            31 May

                                                                      2001              2000              2001
                                                                                 as restated       as restated
                                                           ---------------   ---------------   ---------------
                                                                     £'000             £'000             £'000
Profit after taxation                                                  830               693             2,349
Dividends                                                            (285)             (253)             (877)
Share capital subscribed including premium                              19                 -                 -
                                                           ---------------   ---------------   ---------------
Net addition to equity shareholders' funds                             564               440             1,472
Original opening equity shareholders' funds                              -            11,849            11,849
Prior period adjustment for deferred tax (see note 4)                    -             (295)             (295)
Adjusted opening shareholders' funds                                13,026                 -                 -
                                                           ---------------   ---------------   ---------------
Closing equity shareholders' funds                                  13,590            11,994            13,026
                                                           ---------------   ---------------   ---------------




Summarised Group Cash Flow Statement

Half year to 30 November 2001
                                                                 Unaudited         Unaudited           Audited

                                                              Half year to      Half year to           Year to

                                                               30 November       30 November            31 May

                                                                      2001              2000              2001
                                                           ---------------   ---------------   ---------------
                                                                     £'000             £'000             £'000
Operating profit                                                     1,545             1,285             4,097
Goodwill amortisation                                                   18                 5                24
Depreciation                                                           927               910             1,808
Increase in working capital                                          (118)           (2,157)           (1,428)
Other                                                                 (28)              (42)             (133)
                                                           ---------------   ---------------   ---------------
Operating cash flow                                                  2,344                 1             4,368
Interest                                                             (365)             (199)             (670)
Taxation                                                             (437)             (204)           (1,068)
Equity dividends                                                     (624)             (561)             (814)
Purchase of tangible fixed assets                                  (1,039)           (3,554)           (4,759)
Sale of tangible fixed assets                                           20                54               361
Acquisitions                                                             -             (421)             (421)
Deferred acquisition payments                                        (800)             (650)             (650)
Share capital subscribed including premium                              19                 -                 -
                                                           ---------------   ---------------   ---------------
Net cash outflow before financing                                    (882)           (5,534)           (3,653)
Medium term loan movements                                           (223)             2,249             2,034
                                                           ---------------   ---------------   ---------------
Decrease in cash in the period                                     (1,105)           (3,285)           (1,619)
                                                           ---------------   ---------------   ---------------



Reconciliation of Net Cash Flow to Movement

in Net Debt

Half year to 30 November 2001
                                                                 Unaudited         Unaudited           Audited

                                                              Half year to      Half year to           Year to

                                                               30 November       30 November            31 May

                                                                      2001              2000              2001
                                                           ---------------   ---------------   ---------------
                                                                     £'000             £'000             £'000
Decrease in cash per cash flow statement                           (1,105)           (3,285)           (1,619)
Cash outflow/(inflow) from decrease/(increase) in debt
financing                                                              223           (2,249)           (2,034)
                                                           ---------------   ---------------   ---------------
Change in net debt resulting from cash flows                         (882)           (5,534)           (3,653)
Net debt brought forward                                          (10,926)           (7,273)           (7,273)
                                                           ---------------   ---------------   ---------------
Net debt carried forward                                          (11,808)          (12,807)          (10,926)
                                                           ---------------   ---------------   ---------------
Analysis of net debt:

Cash and bank balances                                                  22                15                21
Overdrafts                                                         (7,519)           (8,073)           (6,413)
Short term loan                                                      (471)             (438)             (454)
Medium/long term loans                                             (3,840)           (4,311)           (4,080)
                                                           ---------------   ---------------   ---------------
                                                                  (11,808)          (12,807)          (10,926)
                                                           ---------------   ---------------   ---------------

Segmental Analysis

Half year to 30 November 2001
                                                                 Unaudited         Unaudited           Audited

                                                              Half year to      Half year to           Year to

                                                               30 November       30 November            31 May

                                                                      2001              2000              2001
                                                           ---------------   ---------------   ---------------
                                                                     £'000             £'000             £'000
Turnover
Agriculture                                                         19,400            15,202            38,816
Distribution                                                         6,464             4,134             8,990
Fuels                                                               41,865            45,215            86,158
Retail                                                               6,154             5,776            13,223
                                                           ---------------   ---------------   ---------------
                                                                    73,883            70,327           147,187
                                                           ---------------   ---------------   ---------------
Operating profit
Agriculture                                                            469               276             1,270
Distribution                                                           608               554             1,125
Fuels                                                                  462               491             1,106
Retail                                                                   6              (36)               596
                                                           ---------------   ---------------   ---------------
                                                                     1,545             1,285             4,097
                                                           ---------------   ---------------   ---------------
Net operating assets
Agriculture                                                          9,347             8,573             8,735
Distribution                                                         9,398             9,627             9,670
Fuels                                                                2,889             3,228             3,314
Retail                                                               5,005             5,529             4,508
                                                           ---------------   ---------------   ---------------
                                                                    26,639            26,957            26,227
                                                           ---------------   ---------------   ---------------

Notes:


 1. The calculation of basic earnings per share for the half year is based on
    profit after taxation of £830,000 (2000: £693,000) and on 7,910,471 (2000:
    7,900,941) ordinary shares representing the weighted average number of
    shares in issue during the period.


    The calculation of the diluted earnings per share for the half year is
    based on the figures shown above amended for the weighted average number
    (6,470) of share options outstanding through the period (2000: 16,000).


 2. The comparative figures for the year to 31 May 2001 are an abridged version
    of the Accounts filed with the Registrar of Companies, subject to notes 3
    and 4 below, on which an unqualified audit opinion has been given.


 3. The above statement and those following have been prepared on the basis of
    accounting policies set out in the 2001 Annual Financial Statements with the
    following exceptions. For the financial year beginning on 1 June 2001, the
    Group has adopted three new Financial Reporting Standards - FRS17
    (Retirement Benefits), FRS 18 (Accounting Policies) and FRS 19 (Deferred
    Tax). The comparative figures for the year to 31 May 2001 have been restated
    to reflect the impact of FRS 19 (see note 4). There have been no changes to
    the financial information in the Interim Statement as a consequence of
    adopting FRS 17 and 18.


 4. The comparative figures have been restated to reflect the change in
    accounting policy for deferred tax. The new standard requires full provision
    to be made for timing differences between the recognition of gains and
    losses in the accounts and their recognition in related tax computations,
    whereas a partial provision was previously followed in accordance with the
    previous standard.


    The prior period adjustment is a cumulative debit adjustment to reserves of
    £260,000, the majority of which relates to the year ended 31 May 2000 and
    prior periods. The comparative amounts for the year to 31 May 2001 have been
    restated in accordance with the new policy. The impact on results for the
    six months to 30 November 2000 was immaterial and the full year to 31 May
    2001 was a credit of £35,000.



2002 Financial Calendar

Interim Dividend Paid                                                                         1 May 2002
Financial Year End                                                                           31 May 2002
Preliminary Announcement of Full Year Results                                                August 2002
Publication of Full Year Report and Accounts                                              September 2002
Annual General Meeting                                                                 26 September 2002
Final Dividend Paid                                                                      1 November 2002



Copies of the Interim Statement are being sent to shareholders on Friday, 8
February 2002. Further copies can be obtained from the Company Secretary at NWF
Group plc, Wardle, Nantwich, Cheshire, CW5 6BP or viewed on the Company's Web
site: http://nwf.co.uk


For further information contact:

Graham Scott (Chief Executive) 01829 260260

Alan Fulker (Finance Director)



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