Final Results - Year Ended 30 November 1999
NWF Group PLC
1 February 2000
NWF Group plc
(Diversified Industrials)
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 1999
1999 1998 Change
Turnover £53.00m £47.00m +13%
Profit before tax £1.11m £1.04m +7%
Earnings per share 9.6p 8.9p +8%
(basic)
Dividend 3.1p 2.9p +7%
AGRICULTURE
* Operating profits up 38%
* Improved sales of animal feed
* Extension to mill capacity fully commissioned
Distribution
* Turnover down 19% but operating profits up 39%
* Construction of new 90,000 sq ft warehouse approved
FUELS
* Volumes 8% higher but operating profits down 69%
* Not expecting a recovery in remainder of the year
Retail
* Continuing growth at the six country stores
* Sales at Rivendell Garden Centre up 35%
* Acquisition of 9 acre Wheatcroft Garden Centre
Outlook
* Majority of profit earned in second half
* All divisions apart from fuels expected to deliver solid
performances
For further information contact:
Graham Scott (Chief Executive) 01829 260 260
Alan Fulker (Finance Director)
Binns & Co Public Relations
Brian Coleman-Smith / Bruce Croxford 0207 786 9600
NWF Group plc
(Diversified Industrials)
Interim Results for the six months ended 30 November 1999
The Group has once again improved its performance with pre-
tax profits up 7% at £1,113,000 (1998: £1,039,000). Sales,
partly influenced by higher fuel prices, were 13% higher at
£53m (1998: £47m) and earnings per share rose 8% to 9.6p
(1998: 8.9p). Gearing was virtually unchanged at 78%.
An Interim Dividend of 3.1p per share (1998: 2.9p) has been
approved by the Board for payment on 1 May 2000 to
shareholders who are on the Register on 24 March 2000. The
shares will go ex-dividend on 20 March 2000.
Our Agriculture business saw further improved sales of
animal feed, now running at an annual rate of 194,000 tons
compared to 147,000 tons a year ago. The extension to mill
production capacity was fully commissioned in the period.
Sales of other farm inputs were also satisfactory and
operating profits were 38% higher than in 1998.
The Distribution activity was extremely busy with new
clients contributing to very high storage and distribution
levels. Turnover was 19% lower, due to the closure of our R
N Bolton subsidiary in the summer, but operating profit was
39% higher than last year. The Board has approved the
construction of a new 90,000 sq ft warehouse at Wardle in
response to increasing customer demand. This facility will
be available in the last quarter of 2000.
In Fuels, the very steep rise in crude oil prices worked
through to the range of finished products sold with the
result that, although volumes were 8% higher than last year,
margins were much tighter and operating profit was 69% lower
than in 1998. We do not expect a market recovery in the
remainder of the year. Malpas Oil, a small distributor
acquired in September, has been integrated successfully with
the existing Wardle depot.
Retail saw a continuing growth in consumer sales at the six
Country Stores, particularly in equine products, helping to
offset the stagnation in farmer purchases. Rivendell Garden
Centre had sales 35% up on last year as its ranging and
reputation grow. The Retail business in total reported
operating profits around the same level as last year. The
Board has already announced the acquisition of the business
of the 9-acre Wheatcroft Garden Centre near Nottingham. This
second major step into large established garden centres will
allow us to develop this activity and further utilise the
plant growing capacity at Rivendell.
Apart from the Fuels business, which is affected by the
exceptional market circumstances, we expect our other three
divisions to continue to deliver solid performances in the
second half year when the majority of profit is earned.
J Roy Willis
Chairman
1 February 2000
Group Profit and Lost Account
Half year to 30 November 1999
Unaudited Unaudited Audited
Half Year Half Year Year to
to 30 to 30 31 May
November November 1999
1999 1998
--------- --------- ---------
£'000 £'000 £'000
TURNOVER 53,000 47,002 98,547
Operating costs (51,676) (45,773) (95,094)
--------- --------- --------
OPERATING PROFIT 1,324 1,229 3,453
Exceptional item (Note 1) - - (1,401)
--------- --------- ---------
1,324 1,229 2,052
Interest payable (211) (190) (426)
--------- --------- ---------
Profit on ordinary
activities before taxation 1,113 1,039 1,626
Taxation (356) (332) (853)
--------- --------- ---------
PROFIT AFTER TAXATION 757 707 773
Equity dividends payable (245) (229) (750)
--------- --------- ---------
PROFIT TRANSFERRED TO
RESERVES 512 478 23
--------- --------- ---------
Earnings per share (Note 2)
Adjusted (excluding
exceptional item) 9.6p 8.9p 26.5p
Basic (including
exceptional item) 9.6p 8.9p 9.8p
Diluted (including
exceptional item) 9.6p 8.9p 9.8p
DIVIDENDS PER SHARE 3.1p 2.9p 9.5p
Notes:
1.The exceptional item in the year to 31 May 1999 relates to the
closure of the business of R.N. Bolton Limited.
2.The calculation of basic earnings per share for the half-year
is based on profit after taxation of £757,000 (1998:
£707,000) and on 7,900,941 (1998: 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 16,000
share options outstanding through the period (1998: 16,000).
The calculation of the adjusted earnings per share for the year
to 31 May 1999 is based on profit after taxation amended for
the exceptional item net of tax in that year (£1,320,000).
3.The comparative figures for the year to 31 May 1999 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 statement and those following have been
prepared on the basis of accounting policies set out in the
1999 Annual Financial Statements.
Group Summarised Balance Sheet
At 30 November 1999
Unaudited Unaudited Audited
30 30 31 May
November November 1999
1999 1998
--------- --------- -------
£'000 £'000 £'000
FIXED ASSETS 14,686 14,615 14,562
Goodwill 95 - -
Stocks 4,388 3,471 3,757
Debtors 15,206 13,567 13,184
Cash and bank balances 21 12 23
Creditors: amounts falling
due within one year (19,769) (17,198) (16,500)
---------- --------- -------
TOTAL ASSETS LESS CURRENT
LIABILITIES 14,627 14,467 15,026
Creditors: amounts falling
due after more than one
year (2,899) (3,800) (3,800)
Provision for liabilities
and charges (697) (718) (707)
--------- --------- -------
NET ASSETS 11,031 9,949 10,519
--------- --------- -------
TOTAL EQUITY SHAREHOLDERS'
FUNDS 11,031 9,949 10,519
--------- --------- -------
Net debt 8,556 7,682 6,275
Gearing 78% 77% 60%
Reconciliation of Movements in Equity
SHAREHOLDERS' FUNDS
Half year to 30 November 1999
Unaudited Unaudited Audited
Half Year Half Year Year to
to 30 to 30 31 May
November November 1999
1999 1998
--------- --------- --------
£'000 £'000 £'000
Profit after taxation 757 707 773
Dividends (245) (229) (750)
--------- --------- --------
512 478 23
Write back of goodwill
previously written off
relating to closure of
business - - 987
Adjustment to goodwill
arising in previous year - - 38
--------- --------- --------
Net addition to equity
shareholders' funds 512 478 1,048
Opening equity
shareholders' funds 10,519 9,471 9,471
--------- --------- --------
Closing equity
shareholders' funds 11,031 9,949 10,519
--------- --------- --------
GROUP SUMMARISED CASH FLOW STATEMENT
Half Year to 30 November 1999
Unaudited Unaudited Audited
Half Year Half Year Year to
to 30 to 30 31 May
November November 1999
1999 1998
--------- --------- --------
£'000 £'000 £'000
OPERATING PROFIT 1,324 1,229 3,453
Depreciation 815 904 1,621
Increase in working capital
(1,658) (1,242) (900)
Other (99) (74) (172)
--------- --------- --------
OPERATING CASH FLOW 382 817 4,002
Interest (235) (213) (411)
Taxation (12) (254) (800)
Equity dividends (521) (435) (664)
Purchase of tangible fixed
assets (1,095) (1,371) (2,288)
Sale of tangible fixed
assets 245 98 210
Acquisitions (95) - -
Deferred acquisition
payments (950) (188) (188)
--------- --------- --------
NET CASH OUTFLOW BEFORE
FINANCING (2,281) (1,546) (139)
Medium term loan repayment (500) (500) (1,000)
--------- --------- --------
DECREASE IN CASH IN THE
PERIOD (2,781) (2,046) (1,139)
--------- --------- --------
Reconciliation of Net Cash Flow to Movement in Net Debt
HALF YEAR TO 30 NOVEMBER 1999
Unaudited Unaudited Audited
Half Year Half Year Year to
to 30 to 30 31 May
November November 1999
1999 1998
--------- --------- --------
£'000 £'000 £'000
Decrease in cash per cash
flow (2,781) (2,046) (1,139)
Cash outflow from decrease
in debt financing 500 500 1,000
--------- --------- --------
Change in net debt resulting
from cash flows (2,281) (1,546) (139)
Net debt brought forward (6,275) (6,136) (6,136)
--------- --------- --------
-
Net debt carried forward (8,556) (7,682) (6,275)
--------- --------- --------
ANALYSIS OF NET DEBT
Cash and bank balances 21 12 23
Overdrafts (6,077) (4,194) (3,298)
Short term loan (251) (1,000) (500)
Medium/long term loan (2,249) (2,500) (2,500)
--------- --------- --------
(8,556) (7,682) (6,275)
--------- --------- --------
Segmental Analysis
Half Year to 30 November 1999
Unaudited Unaudited Audited
Half Year Half Year Year to
to 30 to 30 31 May
November November 1999
1999 1998
--------- --------- --------
£'000 £'000 £'000
Turnover
Agriculture 12,710 10,967 26,735
Distribution 4,635 5,738 10,841
Fuels 31,097 26,696 52,085
Retail 4,558 3,601 8,886
--------- --------- --------
53,000 47,002 98,547
--------- --------- --------
Operating profit
Agriculture 377 274 851
Distribution 686 492 1,228
Fuels 90 294 874
Retail 171 169 500
--------- --------- --------
1,324 1,229 3,453
--------- --------- --------
Net operating assets
Agriculture 7,076 5,720 5,769
Distribution 7,431 8,611 7,593
Fuels 3,366 2,952 3,106
Retail 5,128 4,413 4,647
--------- --------- --------
23,001 21,696 21,115
--------- --------- --------
2000 Financial Calendar
Interim Dividend Paid 1 May 2000
Financial Year End 31 May 2000
Preliminary Announcement of Full Year
Results August 2000
Publication of Full Year Report and
Accounts September 2000
Annual General Meeting 28 September 2000
Final Dividend Paid 1 November 2000
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