Nwf Share Discussion Threads

[dealit] 14/8/2009 19:11

As I said in my previous post mm`s are playing games. If you look at the chart of this stock for 3 years they took a massive hit in Oct 07 for as far as I can see no reason. Strange place the stock market, that is what makes it a chalenge I have made money out of stocks with less pedigree than NWF in saying that I paid 110p for these and will still hold for 20%.

[cambium] 12/8/2009 18:24

NWF looks to grow after year of record profits


Oil, food and animal feed distributor NWF Group Plc (AIM: NWF), today announced a 47.6 per cent rise in pre-tax profits to £6.2m on turnover 5.4 per cent ahead at £380.6m.

The record results for the continuing businesses in the year to May 31 reflect the renewed focus of the group on distribution following the sale of its garden centre chain.

Chairman Mark Hudson said it had been "an outstanding performance given the difficult general economic backdrop".

The former farmers' co-operative, based at Wardle near Nantwich, increased its full-year dividend by 5.1 per cent to 4.1p (2008: 3.9p).

Net debt fell by 63 per cent to £19.3m, largely due to the £14.5m sale of the garden centres to Notcutts last October.

Profit from food distribution quadrupled to £2m thanks to revenue generated from new warehouse capacity and the efficiency gains achieved as it filled up.

The feeds business proceed an operating profit of £2.8m, down from £3.1m in 2008, which NWF blamed on volatile raw material markets and a reduction in milk output and feed market volumes.

Fuel distribution profits hit a record of £4.1m, nearly double the 2008 figure of £2.2m. The company said it benefited from good market conditions, significant falls and volatility in oil prices, and a very cold winter. It said these factors were "capitalised on by a strong effective depot-based management team".

Richard Whiting, chief executive, said it had been "a year of significant development". He added: "The strategy to focus the group as a specialist distributor of food, feed and fuel was implemented and delivered record results with very strong performances from all three divisions."

NWF said progress in the current year was "satisfactory" with all divisions starting the year as planned. The company said that in spite of the poor general economic outlook, demand for the its products and services remained robust.

Whiting hinted that further investment or acquisitions may be on the horizon as he added: "The significant achievement in reducing debt by 63 per cent allows us to review development opportunities in all three divisions to build on the excellent progress we have made in 2009

"In food distribution the objective is to maintain high levels of storage and distribution activity and continue the drive to be more efficient, whilst maintaining the high service levels established to date.

"In feeds we are working to continue the development of direct business with farmers, with a particular emphasis in the South where we have increased our sales resource and have an opportunity to grow our market share.

"In fuels we plan to continue to develop the successful depot network and are looking for start up opportunities and bolt on acquisitions to continue our development."

[linhur] 12/8/2009 11:59

I expect Ellemaitch was referring to the large exit of dairy farmers as a result of the falling milk prices. NWF are combatting this problem by extending their geographical area.

Generally the results were good with the most significant figure being the reduction in the bank debt which threatened to be a major problem this time last year before the sale of the garden centres in the autumn.

The results from the fuels division contained a "super profit" in the year of £1m which may not be repeated.It is good to see the progress in the food distribution business, but this is a cut throat activity with lots of competitors and supermarkets looking to cut prices at every opportunity. I suspect the margins will come under pressure whilst general economic conditions are difficult.

NWF tend to fair best when the economy is expanding, so they will do well to match 2009 results in 2010.I shall be interested to see if there is any movement in the Icelandic Atorka's shareholding of 25% now that the results are out. They have always been very supportive.

As a long term holder, there might be a chance to increase at a lower level if the markets decline.

regards
Linhur

[chadders] 12/8/2009 11:03

It is quite comical really. Around 50,000 shares out of 46 million were traded and the Independent describes it as profit-taking.

[gateside] 12/8/2009 10:51

NWF Group

Our view: Avoid for now

Share price: 105p (-8p)

Without any doubt, NWF is doing well. The Cheshire-based groceries, fuel and animal feeds distributor issued record results yesterday, saying that its profits, EPS, dividend and revenues all hit record levels in the year to the end of May.

While the dividend is clearly a fillip, much of the good news is already priced into the shares and yesterday's 7.1 per cent fall indicates profit-taking. Frankly, it would have been better to buy at the group's last update, when it said it expected to beat market expectations. The stock had risen by 28 per cent over the past month, before yesterday's update.

Even analysts at house broker Charles Stanley have slightly itchy feet. They advise "add" rather than "buy", saying the stock is trading at a premium. While remaining "positive on medium-term opportunities" for NWF, they say the downgrade is "in light of the recent price rally". Do not buy now, but keep the group in mind, it is probably a long-term winner. Avoid for now.

[chadders] 12/8/2009 10:28

Ed 123, Ellemaitch is probably a paid basher so best left ignored or filtered. He/she, posts mindless comments on this thread and others from time to time.

Interesting that the share options were granted yesterday and announced at the same time as the results. I suspect the remuneration committee and the directors expected an upward movement in the share price yesterday.

[ed 123] 11/8/2009 21:39

Ellemaitch.

Where is the "losing customers" data?

Thanks

[dealit] 11/8/2009 20:48

Well what can you say about the fall in the share price today, unexpected to say the least after results so positive. The way I see it the mm`s either have too much stock on their hands or they are trying to create selling to fill orders. Time will tell but I do feel that the dividend is the key to this and the share price will move North over the next few weeks as buyers come in as the XD date approaches.

[cockneyrebel] 11/8/2009 10:20

Results looked good to me Ellmaitch - decided to follow the traders and take my profits but I suspect you'd like to be a buyer :-)

I'll be back I expect, a matter of timing.

CR

[ellemaitch] 11/8/2009 08:41

losing customers

[knitcraft] 11/8/2009 08:12

Few short termers decided to get out. share price will steadily rise as soon as they are finished. Good stock to tuck away and forget.

[chadders] 11/8/2009 07:57

Spectacular!

[kyjb] 11/8/2009 07:52

To infinity and beyond then!! :)

[dealit] 11/8/2009 07:15

Great set of results, share price should move North on the back of these results.


NWF Group plc, the specialist distribution business, today makes the preliminary announcement of its audited results for the year ended 31 May 2009.




Commenting on the results, Mark Hudson, Chairman, said: 'I am pleased to report a very successful year in the development of the Group. We implemented our strategy to focus the Group as a specialist distributor of food, feed and fuel and completed the sale of the Garden Centre division. The proceeds of the sale and our focus on cash and working capital have reduced net debt by over 60%. Our continuing businesses have delivered a record level of profitability, with pre-tax profit up 47.6%, which is an outstanding performance given the difficult general economic backdrop.'

Commenting on the outlook for the current year he added: 'Progress to date has been satisfactory with all divisions starting the year as planned. In spite of the poor general economic outlook, demand for the Group's products and services remains robust.'







Financial highlights




Revenue1 increased by 5.4% to £380.6 million (2008: £361.2 million)

Operating profit1 up 53.4% to £8.9 million (2008: £5.8 million)

Profit before taxation1 up 47.6% to £6.2 million (2008: £4.2 million)

Headline basic earnings per share1, 2 of 10.4p (2008: 6.0p)

Full year dividend increased by 5.1% to 4.1p per share (2008: 3.9p)

Reduction in net debt of 63.0% to £19.3 million (2008: £52.1 million)

Focused the Group as a specialist distributor and completed the sale of the Garden Centres for £14.5 million





1 From continuing operations only, excluding Garden Centres.

2 Excluding £3.5 million (2008: £Nil) exceptional deferred tax charge arising from the phased withdrawal of industrial buildings allowances.




Divisional highlights:




Food Distribution - significant increase in operating profit to £2.0 million (2008: £0.5 million) as revenue was generated from the new warehouse capacity that was filled in the year and operating efficiency improved.

Feeds - operating profit of £2.8 million (2008: £3.1 million) as the business successfully managed volatile raw material markets and a reduction in milk output and feed market volumes.

Fuels - record operating profits in a year of outstanding performance. Operating profit of £4.1 million (2008: £2.2 million) with good market conditions due to significant falls and volatility in oil prices, and a very cold winter capitalised on by a strong effective depot-based management team.

[chadders] 10/8/2009 10:29

Nice movement upwards this morning. Results tomorrow, management very bullish. Could do well. DYOR etc.

[chadders] 04/8/2009 10:47

Looks primed for a rise up to the results.

[cockneyrebel] 30/7/2009 10:57

That's a breakout too :-)

CR

[knitcraft] 30/7/2009 10:54

Someone bought 10k at 120p ( delayed trade )

[chadders] 30/7/2009 10:42

Cambium, with the trading update being so bullish maybe Questor will pick up on this at a later date as it's clearly a sector of opportunity for him.


kc, agreed, added a few this morning but it took ages to execute the deal. Two weeks to results and a steady daily rise would do nicely.

[knitcraft] 30/7/2009 09:13

I have a price of 150p at least after the results. Very little stock around
and results are going to be stonking. A few small buys and they move 3p.
Can`t see anyone who follows this share would contemplate selling at the moment.Very hard to get a decent amount. 2500 seems most you can get without the mms moving the price.