Interim Results

NWF Group PLC
02 February 2004

Strictly Embargoed until 07.00, 2 February 2004

                         NWF GROUP PLC INTERIM RESULTS
                   FOR THE SIX MONTHS ENDED 30 NOVEMBER 2003

NWF Group plc ('NWF'), the diversified sales and distribution business, today
announces interim results for the six months ended 30 November 2003, which
reflect continued organic growth.

Commenting on the results, J Roy Willis, Chairman said: 'I am pleased to report
NWF Group's interim results, which are very much in line with the Board's
expectations and with my comments in our Report and Accounts for the year ended
31 May 2003.  The increasing costs of insurance and pensions, highlighted at our
year end, have impacted the Group's profits as expected.'

Financial Highlights (comparative figures for six months to 30 November 2002):

•        Turnover increased by 17% to £89.3 million                                   (2002: £76.5 million)
•        Pre tax profit up to £1,521,000                                                 (2002: £1,514,000)
•        Post tax profit up to £1,049,000                                                (2002: £1,045,000)
•        Basic earnings per share 13.2p                                                       (2002: 13.1p)
•        Interim dividend increased by 5% to 4.2p per share                          (2002: 4.0p per share)


Divisional Highlights:

  • Distribution - Additional warehousing space taken at Winsford and
    operating profit increased by 22%
  • Feeds - increased volume yet again to 136,000 tonnes (2002: 122,000
    tonnes) with compound volumes up 8 % and blends volumes up 35 %
  • Fuels - Acquisition of Fuel Oil Supply Co. Limited and strong volumes
    which increased by 9%
  • Retail - doubling of interior space at Wheatcroft garden centre and
    divisional turnover increased by 5.4%

On the outlook for the coming months J Roy Willis added: 'Early indications of
trading in the second half year are in line with our expectations, this being
the period which in recent years has come to represent approximately 70 % of the
year's profits due to the increased seasonality of our business.'

For further information please visit www.nwf.co.uk or contact:

Graham Scott, Chief Executive                                      John West
Alan Fulker, Finance Director                                      Claire Melly
NWF Group plc                                                      Tavistock Communications
Tel: [phone]                                                 Tel: [phone]



CHAIRMAN'S STATEMENT

For the six months ended 30 November 2003

I am pleased to report NWF Group's interim results, which are very much in line
with the Board's expectations and with my comments in our Report and Accounts
for the year ended 31 May 2003.

For the six months ended 30 November 2003, profit before taxation was £1,521,000
(2002: £1,514,000) on a turnover of £89m (2002: £76m). The majority of the sales
value increase lay in the Fuels business where both volume and product prices
were higher. The increasing costs of insurance and pensions, highlighted at our
year end, have impacted the Group's profits as expected. Basic earnings per
share were 13.2 pence (2002: 13.1 pence).

The Board has again pursued its progressive dividend policy by declaring an
interim dividend of 4.2 pence per share (2002: 4.0 pence), which will be paid on
1 May 2004 to shareholders on the register on 2 April 2004. The shares will
trade ex dividend on 31 March 2004.

The Distribution business improved its operating profit by 22% to £811,000
(2002: £667,000) as a result of greater operating efficiencies on turnover of
£8.1 million (2002: £6.5 million). In September, we took on a large warehouse at
Winsford, which is already performing ahead of expectations.

Feeds increased its volume yet again to 136,000 tonnes (2002: 122,000 tonnes)
with compound volumes up 8% and blends volumes up 35%. Margins were tighter than
last year, however, as raw material prices increased significantly leading to a
lower operating profit of £253,000 (2002: £545,000). Installation of the blends
lines at Wardle and at Kirkbride was completed during the period.

NWF Fuels had another good half year with strong volumes which increased by 12%
to 118m litres (2002: 105m litres) and margins also remained firm. Operating
profit increased by 24% to £644,000 (2002: £520,000). Road fuels did
particularly well as our coverage of retail garages increased. Fuel Oil Supply
Co. Limited, based in Nottingham and Birmingham, was acquired on 31 October and
has been successfully integrated into the division.

For the Retail business, the early summer was wet but sales came through
strongly later in the period, particularly as the Christmas trade got under way.
The doubling of interior space at Wheatcroft garden centre, opened in October,
proved to be very successful. Turnover increased to £7.7 million (2002: £7.3
million) and operating profit was level at £41,000 (2002: £41,000).

Early indications of trading in the second half year are in line with our
expectations, this being the period which in recent years has come to represent
approximately 70% of the year's profits due to the increased seasonality of our
business.


J Roy Willis
Chairman
30 January 2004





Group Profit and Loss Account
Half year to 30 November 2003
                                                               Unaudited            Unaudited          Audited
                                                            Half year to         Half year to          Year to
                                                             30 November          30 November           31 May
                                                                    2003                 2002             2003

                                                                  £'000                £'000            £'000
Turnover                                                         89,279               76,478          168,553
Operating costs                                                 (87,530)             (74,705)        (162,987)

Operating profit                                                  1,749                1,773            5,566
Interest payable                                                   (228)                (259)            (517)

Profit on ordinary activities before taxation                     1,521                1,514            5,049
Taxation                                                           (472)                (469)          (1,658)

Profit after taxation                                             1,049                1,045            3,391
Equity dividends payable                                           (334)                (318)          (1,178)

Profit transferred to reserves                                      715                  727            2,213

Earnings per share (see note 1)
    Basic                                                          13.2p                13.1p            42.6p
    Diluted                                                        12.9p                12.9p            41.9p

Dividends per share                                                 4.2p                 4.0p            14.8p



Summarised Group Balance Sheet
At 30 November 2003
                                                                    Unaudited          Unaudited       Audited
                                                                  30 November        30 November        31 May
                                                                         2003               2002          2003

                                                                       £'000              £'000         £'000
Intangible assets                                                      3,443              2,566         2,954
Tangible assets                                                       19,377             17,563        17,411
Stocks                                                                 5,846              5,441         5,317
Debtors                                                               22,463             18,736        19,625
Cash and bank balances                                                    26                 24            23
Creditors: amounts falling due within one year                       (27,396)           (22,867)      (22,984)

Total assets less current liabilities                                 23,759             21,463        22,346
Creditors: amounts falling due after more than
  one year                                                            (4,913)            (4,733)       (4,215)
Provision for liabilities and charges                                   (819)              (905)         (820)

Net assets                                                            18,027             15,825        17,311

Total equity shareholders' funds                                      18,027             15,825        17,311






Reconciliation of Movements in Equity Shareholders' Funds
Half year to 30 November 2003
                                                             Unaudited            Unaudited           Audited
                                                          Half year to         Half year to           Year to
                                                           30 November          30 November            31 May
                                                                  2003                 2002              2003

                                                                £'000                £'000             £'000
Profit after taxation                                           1,049                1,045             3,391
Dividends                                                        (334)                (318)           (1,178)
Share capital issued including premium                              1                    -                 -

Net addition to equity shareholders' funds                        716                  727             2,213
Opening equity shareholders' funds                             17,311               15,098            15,098

Closing equity shareholders' funds                             18,027               15,825            17,311




Summarised Group Cash Flow Statement
Half year to 30 November 2003
                                                               Unaudited         Unaudited           Audited
                                                            Half year to      Half year to           Year to
                                                             30 November       30 November            31 May
                                                                    2003              2002              2003

                                                                  £'000             £'000             £'000
Operating profit                                                  1,749             1,773             5,566
Goodwill amortisation                                                81                68               143
Depreciation                                                      1,095             1,017             2,038
(Increase)/decrease in working capital                           (1,228)             (256)              977
Other                                                               (15)               (5)                3

Operating cash flow                                               1,682             2,597             8,727
Interest                                                           (226)             (287)             (543)
Taxation                                                         (1,036)             (568)           (1,631)
Equity dividends                                                   (860)             (748)           (1,066)
Purchase of tangible fixed assets                                (2,741)           (1,513)           (2,263)
Sale of tangible fixed assets                                         5                86               109
Acquisitions including bank overdraft acquired                     (926)                -              (616)
Deferred acquisition payments                                      (509)             (188)             (187)
Share capital subscribed including premium                            1                 -                 -

Net cash (outflow)/inflow before financing                       (4,610)             (621)            2,530
Term loan and HP finance movements                                  888              (240)             (739)

(Decrease)/increase in cash in the period                        (3,722)             (861)            1,791




Reconciliation of Net Cash Flow to Movement in Net Debt
Half year to 30 November 2003
                                                                   Unaudited         Unaudited       Audited
                                                                Half year to      Half year to       Year to
                                                                 30 November       30 November        31 May
                                                                        2003              2002          2003

                                                                      £'000             £'000         £'000
(Decrease)/increase in cash per cash flow statement                  (3,722)             (861)        1,791
Cash (inflow)/outflow from (increase)/decrease
  in HP and debt financing                                            (888)               240           739

Change in net debt resulting from cash flows                         (4,610)             (621)        2,530
HP and lease finance acquired with acquisition                         (174)                -             -
Net debt brought forward                                             (7,900)          (10,430)      (10,430)

Net debt carried forward                                            (12,684)          (11,051)       (7,900)


Analysis of net debt:

Cash and bank balances                                                   26                24            23
Overdrafts                                                           (6,707)           (5,635)       (2,982)
HP and Lease Finance                                                   (171)                -             -
Short term loans                                                     (1,045)           (1,007)       (1,026)
Medium/long term loans                                               (4,787)           (4,433)       (3,915)

                                                                    (12,684)          (11,051)       (7,900)





Segmental Analysis
Half year to 30 November 2003
                                                              Unaudited            Unaudited          Audited
                                                           Half year to         Half year to          Year to
                                                            30 November          30 November           31 May
                                                                   2003                 2002             2003

                                                                 £'000                £'000            £'000
Turnover
Distribution                                                     8,108                6,466           14,071
Feeds                                                           20,850               18,601           43,555
Fuels                                                           52,582               44,067           94,645
Retail                                                           7,739                7,344           16,282

                                                                89,279               76,478          168,553

Operating profit
Distribution                                                       811                  667            1,447
Feeds                                                              253                  545            1,426
Fuels                                                              644                  520            1,716
Retail                                                              41                   41              977

                                                                 1,749                1,773            5,566

Net operating assets
Distribution                                                    10,384                9,748            9,296
Feeds                                                            9,146                8,442            7,410
Fuels                                                            3,839                3,684            4,301
Retail                                                           5,919                5,267            4,757

                                                                29,288               27,141           25,764



Notes:

1.      The calculation of basic earnings per share for the half year is based
on profit after taxation of £1,049,000 (2002: £1,045,000) and on 7,960,278
(2002: 7,960,241) 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 dilutive effect
(196,660) of share options outstanding through the period (2002: 139,590).

2.      The Group acquired Fuel Oil Supply Co. Limited, a fuels distribution
business, on 31 October 2003. The results for the period since acquisition were
not material.

3.      The comparative figures for the year to 31 May 2003 are an abridged
version of the Accounts filed with the Registrar of Companies on which an
unqualified audit opinion has been given.

4.      The above statements have been prepared on the basis of accounting
policies set out in the 2003 Annual Financial Statements.



2004 Financial Calendar

Interim Dividend Paid                                                                          1 May 2004
Financial Year End                                                                            31 May 2004
Preliminary Announcement of Full Year Results                                                 August 2004
Publication of Full Year Report and Accounts                                               September 2004
Annual General Meeting                                                                     1 October 2004
Final Dividend Paid                                                                       1 November 2004

Copies of the Interim Statement are being sent to Shareholders on Friday, 6
February 2004.  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: www.nwf.co.uk


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