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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Nwf Group Plc | LSE:NWF | London | Ordinary Share | GB0006523608 | ORD 25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -4.50 | -2.05% | 215.50 | 211.00 | 220.00 | 220.50 | 215.50 | 220.50 | 12,869 | 14:06:20 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Groceries, General Line-whsl | 1.05B | 14.9M | 0.3014 | 7.15 | 106.54M |
From Apr 2019 to Apr 2024
TIDMNWF
RNS Number : 2612D
NWF Group PLC
30 January 2018
NWF Group plc
30 January 2018
NWF Group plc
NWF Group plc: Half Year results for the period ended 30 November 2017
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 2017.
Financial highlights H1 2017 H1 2016 % ---------------------- ------------ ------------ --------- Revenue GBP295.8m GBP255.9m +15.6% Headline operating profit* GBP2.4m GBP2.2m +9.1% Headline profit before taxation* GBP2.2m GBP2.0m +10.0% Headline diluted EPS* 3.6p 3.3p +9.1% Interim dividend per share 1.0p 1.0p - Net debt GBP16.3m GBP19.1m (14.7%) Net debt to EBITDA 1.2x 1.6x - Statutory results Profit before taxation GBP1.9m GBP1.3m +46.2% Operating profit GBP2.4m GBP1.8m +33.3% Diluted EPS 3.1p 2.1p +47.6%
* 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. Headline diluted EPS also takes into account the taxation effect thereon.
Operational highlights:
-- Revenue growth from increased activity levels and higher commodity prices in Feeds and Fuels -- Delivery of planned profit improvements in Feeds and Fuels -- New customer wins in Food ensures Wardle will be fully utilised -- Board's full year expectations for trading performance and net debt levels unchanged
Divisional highlights:
-- Feeds - headline operating profit of GBP0.4 million (H1 2016: loss of GBP0.3 million). The planned benefits from the investment at Longtown and Wardle are being delivered with increases in operational efficiency driving profitability.
-- Food - headline operating profit of GBP0.9 million (H1 2016: GBP1.6 million). Profit in line with our expectations, reflecting lower storage volumes. The focus on business development has been successful with significant new customer wins in the first half year.
-- Fuels - headline operating profit of GBP1.1 million (H1 2016: GBP0.9 million). Delivered strong volume growth with commercial customers to offset the lower levels of market demand for heating oil over summer/autumn months.
Board appointment:
David Downie appointed to the Board as a non-executive director with immediate effect.
Richard Whiting, Chief Executive, NWF Group plc, commented:
"NWF has delivered profit improvement in line with our expectations in the first half year with each of the divisions performing as planned. The significant increase in profits in Feeds is of particular note, demonstrating the expected return on the capital investment completed in 2017. Current trading is in line with the Board's full year expectations."
A short videocast of the Half Year Results highlights is available to view here.
For further information please visit www.nwf.co.uk or contact:
Richard Whiting, Reg Hoare /Andrew Leach Justin Jones / Chief Executive MHP Communications Mike Bell Chris Belsham, Tel: 020 3128 8100 Peel Hunt LLP Finance Director (Nominated Adviser) NWF Group plc Tel: 020 7418 8900 Tel: 01829 260 260
CHAIRMAN'S STATEMENT
NWF has continued its development as planned in the first half year. Feeds has significantly increased its profitability as a consequence of last year's investment in Longtown and Wardle and more stable commodity prices. Food had spare capacity as anticipated, however we are pleased to report new customer wins, particularly Arla UHT, which will ensure the Wardle facility is fully utilised. Fuels has continued to grow with increasing volumes across the depot network in commercial fuels.
Net debt at the period end was lower at GBP16.3 million (H1 2016: GBP19.1 million), reflecting profit improvement and further reductions in working capital, particularly in Feeds, with net debt to EBITDA at 1.2x (H1 2016: 1.6x). 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 2017 was 15.6% higher at GBP295.8 million (H1 2016: GBP255.9 million) as a result of increased activity in Feeds and Fuels and higher commodity prices. Headline operating profit was higher at GBP2.4 million (H1 2016: GBP2.2 million), with the increases in Feeds and Fuels more than offsetting the reduction in Food. Headline profit before taxation(1) was GBP2.2 million (H1 2016: GBP2.0 million).
Headline basic earnings per share(1) was 3.6p (H1 2016: 3.3p) and headline diluted earnings per share(1) was 3.6p (H1 2016: 3.3p).
Net cash absorbed by operations for the period amounted to GBP0.6 million (H1 2016: net cash absorbed of GBP2.3 million). Whilst the normal seasonal trading pattern results in a cash outflow in the first half, a continued focus on working capital management has reduced the level of cash absorbed.
Net capital expenditure in the period was GBP1.6 million (H1 2016: GBP6.1 million). This reflects normal replacement capex as planned, compared to last year when significant capital investments were made.
Net assets at 30 November 2017 increased to GBP39.6 million (30 November 2016: GBP34.5 million) largely due to the decrease in the accounting valuation of the pension scheme deficit. The IAS 19R valuation has decreased from GBP21.9 million to GBP19.0 million primarily as a result of a reduction in the discount rate from 3.05% to 2.70%.
The triennial valuation at 31 December 2016 has been completed as planned with the deficit increasing as anticipated from GBP14.1 million to GBP19.1 million. As a consequence the Group has increased recovery contributions from GBP1.2 million to GBP1.8 million per annum from 1 January 2018.
1 Excluding GBP0.3 million (H1 2016: GBP0.3 million) net finance cost in respect of the defined benefit pension scheme, and exceptional restructuring costs of GBPNil (H1 2016: GBP0.4 million) and, where applicable, the tax effect thereon.
Dividend
The Board has approved an interim dividend per share of 1.0p (H1 2016: 1.0p). This will be paid on 1 May 2018 to shareholders on the register as at 23 March 2018. The shares will trade ex-dividend on 22 March 2018.
Operations
Feeds
Revenue increased by 19.5% to GBP77.8 million (H1 2016: GBP65.1 million) as a result of higher commodity prices and increased sales of traded products in the period. Headline operating profit was GBP0.4 million, compared to a GBP0.3 million loss for the same period last year, due to our improved operational efficiency.
Volumes were 1.0% lower at 265,000 tonnes (H1 2016: 268,000 tonnes) as the business focused on those customers within an efficient range from our key operational locations. Market conditions were good as milk prices increased to more sustainable levels, which has improved farm incomes and confidence in the dairy sector. Feed demand increased, particularly from farmers who had cut feed rates due to a lower milk price in the prior year. Overall commodity input costs were more stable in the first half in spite of volatility caused by movements in exchange rates, albeit they increased towards the period end. Average milk prices at the end of November were 25.6% higher at 31.9p per litre (November 2016: 25.4p). Our operational platform with the expanded facilities in Longtown and Wardle delivered the planned efficiencies and provides an effective base for future development.
Food
Revenue reduced by 3.0% to GBP19.5 million (H1 2016: GBP20.1 million). Headline operating profit was GBP0.9 million (H1 2016: GBP1.6 million).
As anticipated, storage volumes were lower at 89,000 pallet spaces (H1 2016: 103,000). The division has focused on business development to fully utilise the Wardle facility and has secured, through competitive tenders, over 15,000 pallet spaces including significant pallet spaces for the storage of Arla UHT requirements. With other new ambient customers this will ensure continued full utilisation of the facility. Activity measured in the number of loads was robust in spite of lower storage volumes and higher levels of backload work were secured. The Palletline operation continued its planned development and is being utilised by food and non-food customers across the region. Service levels were at 99.5% during the period.
Fuels
Revenue increased by 16.3% to GBP198.5 million (H1 2016: GBP170.7 million) as a result of increased volumes, higher oil prices and a greater commercial product mix. Headline operating profit was GBP1.1 million (H1 2016: GBP0.9 million).
Volumes increased by 7.6% to 269 million litres (H1 2016: 250 million litres) with increased sales of diesel and gas oil in particular. Commercial growth reflected the benefit of having additional business development resources committed in several key depots across the country. Brent Crude has increased during the first half to an average of $54.11 per barrel (H1 2016: $48.20 per barrel) and ended the reported period at $63.57 per barrel.
Board appointment
I am pleased to announce the appointment of David Downie to the Board as non-executive director with immediate effect. David brings a wealth of operational and commercial skills which are complementary to the capabilities of the Board. In addition, David will chair the Remuneration Committee.
Outlook and future prospects
The Group has continued to perform as planned since the period end. In Feeds, our customers continue to buy feed to optimise their performance in a higher milk price environment, albeit some limited milk price reductions have been announced. Price increases have been implemented to offset recent increased commodity costs and we are introducing new products to support our nutritional advice on farm. In Food, the Christmas period has been delivered successfully and we are focused on the ontake of customers won in the first half year. In Fuels, the cold weather pre-Christmas supported a solid December performance as we focus on providing industry leading service levels to customers across our depot network.
We continue to focus on growth initiatives, both organic and through 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.
Philip Acton
Chairman
30 January 2018
Condensed consolidated income statement
for the half year ended 30 November 2017 (unaudited)
Hot Features
Premium
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2017 2016 2017
Note GBPm GBPm GBPm
------------------------- ------- ------------- ------------- --------
Revenue 3 295.8 255.9 555.8
Operating expenses (293.4) (254.1) (548.0)
------------------------- ------- ------------- ------------- --------
Headline operating
profit(1) 2.4 2.2 9.0
Exceptional items 4 - (0.4) (1.2)
------------------------- ------- ------------- ------------- --------
Operating profit 3 2.4 1.8 7.8
Finance costs 5 (0.5) (0.5) (1.1)
------------------------- ------- ------------- ------------- --------
Headline profit before
taxation(1) 2.2 2.0 8.5
Net finance cost in
respect of the defined
benefit pension scheme (0.3) (0.3) (0.6)
Exceptional items 4 - (0.4) (1.2)
------------------------- ------- ------------- ------------- --------
Profit before taxation 1.9 1.3 6.7
Income tax expense(2) 6 (0.4) (0.3) (1.2)
------------------------- ------- ------------- ------------- --------
Profit for the period
attributable to equity
shareholders 1.5 1.0 5.5
------------------------- ------- ------------- ------------- --------
Earnings per share
(pence)
Basic 7 3.1 2.1 11.3
Diluted 7 3.1 2.1 11.3
------------------------- ------- ------------- ------------- --------
Headline earnings per
share (pence)(1)
Basic 7 3.6 3.3 14.0
Diluted 7 3.6 3.3 14.0
------------------------- ------- ------------- ------------- --------
1 Headline operating profit is statutory operating profit of GBP2.4 million (H1 2016: GBP1.8 million) before exceptional items of GBPNil (H1 2016: GBP0.4 million). Headline profit before taxation is statutory profit before taxation of GBP1.9 million (H1 2016: GBP1.3 million), after adding back the net finance cost in respect of the Group's defined benefit pension scheme of GBP0.3 million (H1 2016: GBP0.3 million), and the exceptional items. Headline earnings per share also takes into account the taxation effect thereon.
2 Taxation on exceptional items in the current period has reduced the charge by GBPNil (H1 2016: GBP0.1 million).
Condensed consolidated statement of comprehensive income
for the half year ended 30 November 2017 (unaudited)
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2017 2016 2017
GBPm GBPm GBPm
-------------------------------------- ------------- ------------- --------
Profit for the period attributable
to equity shareholders 1.5 1.0 5.5
Items that will never be
reclassified to profit
or loss:
Re-measurement gain/(loss)
on the defined benefit
pension scheme 0.5 (3.7) (1.8)
Tax on items that will
never be reclassified to
profit or loss - 0.6 0.3
-------------------------------------- ------------- ------------- --------
Total comprehensive income/(expense)
for the period 2.0 (2.1) 4.0
-------------------------------------- ------------- ------------- --------
The notes form an integral part of this condensed consolidated half year report.
Condensed consolidated balance sheet
as at 30 November 2017 (unaudited)
30 November 30 November 31 May
2017 2016 2017
Note GBPm GBPm GBPm
----------------------------- ----- ------------ ------------ --------
Non-current assets
Property, plant and
equipment 45.8 45.2 46.6
Intangible assets 22.8 23.1 22.8
Deferred income tax
assets 3.2 3.7 3.5
----------------------------- ----- ------------ ------------ --------
71.8 72.0 72.9
----------------------------- ----- ------------ ------------ --------
Current assets
Inventories 4.6 4.7 4.2
Trade and other receivables 68.6 61.8 61.3
Cash and cash equivalents 0.6 0.5 1.0
Derivative financial
instruments 8 0.2 0.2 0.2
----------------------------- ----- ------------ ------------ --------
74.0 67.2 66.7
----------------------------- ----- ------------ ------------ --------
Total assets 145.8 139.2 139.6
----------------------------- ----- ------------ ------------ --------
Current liabilities
Trade and other payables (65.2) (57.4) (62.2)
Current income tax
liabilities (0.6) (0.4) (0.6)
Borrowings 8 (0.1) (0.1) (0.1)
Contingent deferred
consideration (0.9) - (0.5)
Derivative financial 8 - - -
instruments
----------------------------- ----- ------------ ------------ --------
(66.8) (57.9) (63.4)
----------------------------- ----- ------------ ------------ --------
Non-current liabilities
Borrowings 8 (16.8) (19.5) (13.9)
Contingent deferred
consideration - (1.4) (0.9)
Deferred income tax
liabilities (3.3) (3.6) (3.5)
Retirement benefit
obligations (19.0) (21.9) (19.9)
Provisions (0.3) (0.4) (0.3)
----------------------------- ----- ------------ ------------ --------
(39.4) (46.8) (38.5)
----------------------------- ----- ------------ ------------ --------
Total liabilities (106.2) (104.7) (101.9)
----------------------------- ----- ------------ ------------ --------
Net assets 39.6 34.5 37.7
----------------------------- ----- ------------ ------------ --------
Equity
Share capital 9 12.2 12.1 12.1
Share premium 0.9 0.9 0.9
Retained earnings 26.5 21.5 24.7
----------------------------- ----- ------------ ------------ --------
Total equity 39.6 34.5 37.7
----------------------------- ----- ------------ ------------ --------
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 2017 (unaudited)
Share Share Retained Total
capital premium earnings equity
GBPm GBPm GBPm GBPm
--------------------------------- --------- --------- ---------- --------
Balance at 1 June 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 expense
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
--------------------------------- --------- --------- ---------- --------
Profit for the period - - 4.5 4.5
Items that will never be
reclassified to profit or
loss:
Re-measurement loss on the
defined benefit pension scheme - - 1.9 1.9
Tax on items that will never
be reclassified to profit
or loss - - (0.3) (0.3)
--------------------------------- --------- --------- ---------- --------
Total comprehensive income
for the period - - 6.1 6.1
--------------------------------- --------- --------- ---------- --------
Transactions with owners:
Dividend paid - - (2.8) (2.8)
Issue of shares - - - -
Value of employee services - - (0.1) (0.1)
--------------------------------- --------- --------- ---------- --------
- - (2.9) (2.9)
--------------------------------- --------- --------- ---------- --------
Balance at 31 May 2017 12.1 0.9 24.7 37.7
--------------------------------- --------- --------- ---------- --------
Profit for the period - - 1.5 1.5
Items that will never be
reclassified to profit or
loss:
Re-measurement loss on the
defined benefit pension scheme - - 0.5 0.5
Tax on items that will never
be reclassified to profit
or loss - - (0.1) (0.1)
--------------------------------- --------- --------- ---------- --------
Total comprehensive income
for the period - - 1.9 1.9
--------------------------------- --------- --------- ---------- --------
Transactions with owners:
Issue of shares 0.1 - (0.1) -
Value of employee services - - - -
--------------------------------- --------- --------- ---------- --------
0.1 - (0.1) -
--------------------------------- --------- --------- ---------- --------
Balance at 30 November 2017 12.2 0.9 26.5 39.6
--------------------------------- --------- --------- ---------- --------
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 2017 (unaudited)
Half Half Year
year year ended
ended ended 31 May
30 November 30 November 2017
2017 2016 GBPm
GBPm GBPm
------------------------------------- ------------- ------------- --------
Cash flows from operating
activities
Operating profit 2.4 1.8 7.8
Adjustments for:
Depreciation and amortisation 2.3 2.1 4.2
Cash contributions to pension
scheme (0.7) (0.7) (1.3)
Other 0.1 0.1 0.1
------------------------------------- ------------- ------------- --------
Operating cash flows before
movements in working capital 4.1 3.3 10.8
Movements in working capital:
(Increase)/decrease in inventories (0.4) (1.3) (0.8)
(Increase)/decrease in receivables (7.3) (9.0) (8.5)
Increase/(decrease) in payables 3.0 4.7 9.5
Utilisation of provision - - (0.2)
------------------------------------- ------------- ------------- --------
Net cash (absorbed by)/generated
from operations (0.6) (2.3) 10.8
Interest paid (0.2) (0.2) (0.5)
Income tax paid (0.4) (0.6) (1.4)
------------------------------------- ------------- ------------- --------
Net cash (absorbed by)/generated
from operating activities (1.2) (3.1) 8.9
------------------------------------- ------------- ------------- --------
Cash flows from investing
activities
Purchase of intangible assets (0.1) (0.2) (0.3)
Purchase of property, plant
and equipment (1.5) (6.0) (9.1)
Payment of contingent consideration (0.5) - -
Proceeds on sale of property,
plant and equipment - 0.1 0.2
Net cash absorbed by investing
activities (2.1) (6.1) (9.2)
------------------------------------- ------------- ------------- --------
Cash flows from financing
activities
Increase in bank borrowings 3.0 8.0 2.4
Capital element of finance
lease and hire purchase payments (0.1) (0.1) (0.1)
Dividends paid - - (2.8)
------------------------------------- ------------- ------------- --------
Net cash generated from/(absorbed
by) financing activities 2.9 7.9 (0.5)
------------------------------------- ------------- ------------- --------
Net movement in cash and
cash equivalents (0.4) (1.3) (0.8)
Cash and cash equivalents
at beginning of period 1.0 1.8 1.8
------------------------------------- ------------- ------------- --------
Cash and cash equivalents
at end of period 0.6 0.5 1.0
------------------------------------- ------------- ------------- --------
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 2017 (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 30 January 2018.
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 years ended 30 November 2017 and 30 November 2016 are neither audited nor reviewed by the Company's auditors. Statutory accounts for the year ended 31 May 2017 were approved by the Board of Directors on 1 August 2017 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 2017. These interim financial statements should be read in conjunction with those consolidated financial statements, which have been prepared in accordance with International Financial Reporting Standards ("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 2017, with a deficit of GBP19.1 million at the valuation date of 31 December 2016. In these interim financial statements, this liability has been updated in order to derive the IAS 19R valuation as of 30 November 2017. The triennial valuation resulted in Group contributions of GBP2.1 million per annum, including recovery plan payments of GBP1.8 million per annum for 11 years from 1 January 2018.
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 IFRS became effective for the financial period beginning on 1 June 2017; however, the Group did not have to change its accounting policies or make material retrospective adjustments as a result of adopting these new standards.
IFRS 9 and IFRS 15 are applicable for the year beginning 1 June 2018 but are not expected to have a material impact on the Group.
IFRS 16 is applicable for the year beginning 1 June 2019. Under IFRS 16 the present distinction between operating and finance leases will be removed, resulting in all leases being recognised on the balance sheet except for those with a very low value. At inception, a right-of-use asset will be recognised together with an equivalent liability reflecting the discounted lease payments over the estimated term of the lease. Whilst the overall cost of using the asset over the lease term should be the same, it is likely that the weighting of the charge between periods may differ due to the requirement to distinguish between the lease and non- lease elements of the agreement. Adoption of this standard is likely to result in an increase in gross assets and gross liabilities, and the consolidated income statement is expected to have an increased depreciation expense; however, the lease expense will reduce by a similar amount. The Group will make an assessment of the full impact in due course.
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 results which are 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 Feeds Food Fuels Group
30 November 2017 Note GBPm GBPm GBPm GBPm
-------------------- ----- ------ ------ ------ ------
Revenue
Total revenue 80.5 19.8 201.0 301.3
Inter-segment
revenue (2.7) (0.3) (2.5) (5.5)
-------------------- ----- ------ ------ ------ ------
Revenue 77.8 19.5 198.5 295.8
-------------------- ----- ------ ------ ------ ------
Result
Headline operating
profit 0.4 0.9 1.1 2.4
-------------------- ----- ------ ------ ------
Operating profit
as reported 2.4
Finance costs 5 (0.5)
------
Profit before
taxation 1.9
Income tax expense 6 (0.4)
-------------------- ----- ------ ------ ------ ------
Profit for the
period 1.5
-------------------- ----- ------ ------ ------ ------
Other information
Depreciation and
amortisation 0.8 0.7 0.8 2.3
-------------------- ----- ------ ------ ------ ------
Feeds Food Fuels Group
As at 30 November 2017 GBPm GBPm GBPm GBPm
--------------------------- ------- ------ ------- --------
Balance sheet
Assets
Segment assets 52.6 31.0 58.4 142.0
--------------------------- ------- ------ -------
Deferred income tax
assets 3.2
Cash and cash equivalents 0.6
--------------------------- ------- ------ ------- --------
Consolidated total
assets 145.8
--------------------------- ------- ------ ------- --------
Liabilities
Segment liabilities (15.0) (4.2) (46.3) (65.5)
--------------------------- ------- ------ -------
Current income tax
liabilities (0.6)
Deferred income tax
liabilities (3.3)
Borrowings (16.9)
Contingent deferred
consideration (0.9)
Retirement benefit
obligations (19.0)
--------------------------- ------- ------ ------- --------
Consolidated total
liabilities (106.2)
--------------------------- ------- ------ ------- --------
Half year ended Feeds Food Fuels Group
30 November 2016 Note 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 4 (0.4) - - (0.4)
------
Operating profit
as reported 1.8
Finance costs 5 (0.5)
------
Profit before
taxation 1.3
Income tax expense 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)
--------------------------- ------- ------ ------- --------
Year ended 31 Feeds Food Fuels Group
May 2017 Note GBPm GBPm GBPm GBPm
--------------------- ------- ------ ------ ------ ------
Revenue
Total revenue 158.2 39.6 364.0 561.8
Inter-segment
revenue - (0.6) (5.4) (6.0)
--------------------- ------- ------ ------ ------ ------
Revenue 158.2 39.0 358.6 555.8
--------------------- ------- ------ ------ ------ ------
Result
Headline operating
profit 1.5 3.0 4.5 9.0
--------------------- ------- ------ ------ ------
Segment exceptional
items 4 (1.2) - - (1.2)
------
Operating profit
as reported 7.8
Finance costs 5 (1.1)
------
Profit before
taxation 6.7
Income tax expense 6 (1.2)
--------------------- ------- ------ ------ ------ ------
Profit for the
year 5.5
--------------------- ------- ------ ------ ------ ------
Other information
Depreciation and
amortisation 1.2 1.5 1.5 4.2
--------------------- ------- ------ ------ ------ ------
Feeds Food Fuels Group
As at 31 May 2017 GBPm GBPm GBPm GBPm
--------------------- ------- ------ ----------------- ----------------
Balance sheet
Assets
Segment assets 53.1 30.1 51.9 135.1
Deferred income
tax assets 3.5
Cash at bank and
in hand 1.0
--------------------- ------- ------ ----------------- ----------------
Consolidated total
assets 139.6
--------------------- ------- ------ ----------------- ----------------
Liabilities
Segment liabilities (17.0) (3.5) (42.0) (62.5)
--------------------- ------- ------ -----------------
Current income tax
liabilities (0.6)
Deferred income
tax liabilities (3.5)
Borrowings (14.0)
Contingent deferred
consideration (1.4)
Retirement benefit
obligations (19.9)
--------------------- ------- ------ ----------------- ----------------
Consolidated total
liabilities (101.9)
--------------------- ------- ------ -----------------------------------
4. Profit before taxation - exceptional items
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2017 2016 2017
GBPm GBPm GBPm
----------------------- -------------- ------------- --------
Restructuring costs - (0.4) (1.2)
Net exceptional costs - (0.4) (1.2)
----------------------- -------------- ------------- --------
During the year ended 31 May 2017, the Group incurred restructuring costs of GBP1.2 million in Feeds as it completed its mill development projects in the North and Cheshire and the associated restructuring to align the business with its production facilities.
5. Finance costs
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2017 2016 2017
GBPm GBPm GBPm
--------------------------------- --------------------------- ------------- --------
Interest on bank loans
and overdrafts 0.2 0.2 0.5
--------------------------------- --------------------------- ------------- --------
Total interest expense 0.2 0.2 0.5
Net finance cost in respect
of the defined benefit pension
scheme 0.3 0.3 0.6
--------------------------------- --------------------------- ------------- --------
Total finance costs 0.5 0.5 1.1
--------------------------------- --------------------------- ------------- --------
6. Income tax expense
The income tax expense for the half year ended 30 November 2017 is based upon management's best estimate of the weighted average annual tax rate expected for the full financial year ending 31 May 2018 of 20.9% (H1 2016: 20.9%).
7. Earnings per share
The calculation of basic and diluted earnings per share is based on the following data:
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2017 2016 2017
GBPm GBPm GBPm
-------------------------------- --------------------------- ------------- --------
Earnings
Earnings for the purposes
of basic and diluted earnings
per share, being profit for
the period attributable to
equity shareholders 1.5 1.0 5.5
--------------------------------- -------------------------- ------------- --------
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2017 2016 2017
000s 000s 000s
------------------------------ ------------- ------------- --------
Number of shares
Weighted average number
of shares for the purposes
of basic earnings per share 48,646 48,599 48,620
Weighted average dilutive
effect of conditional share
awards (note 9) 14 45 24
------------------------------ ------------- ------------- --------
Weighted average number
of shares for the purposes
of diluted earnings per
share 48,660 48,644 48,644
------------------------------ ------------- ------------- --------
The calculation of basic and diluted headline earnings per share is based on the following data:
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2017 2016 2017
GBPm GBPm GBPm
------------------------------------ --------------------------- ------------- --------
Profit for the period attributable
to equity shareholders 1.5 1.0 5.5
Add back:
Net finance cost in respect
of the defined benefit pension
scheme 0.3 0.3 0.6
Exceptional items - 0.4 1.2
Tax effect of the above (0.1) (0.1) (0.5)
------------------------------------ --------------------------- ------------- --------
Headline earnings 1.7 1.6 6.8
------------------------------------ --------------------------- ------------- --------
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 2017, other than non-interest bearing short-term trade and other receivables, are as follows:
30 November 30 November 31 May
2017 2016 2017
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 0.6 0.5 1.0
----------------------------- ------------ ------------ -------
Financial assets 0.8 0.7 1.2
----------------------------- ------------ ------------ -------
The book and fair values of financial liabilities at 30 November 2017, other than non-interest bearing short-term trade and other payables, are as follows:
30 November 30 November 31 May
2017 2016 2017
Total book and fair value GBPm GBPm GBPm
----------------------------------- ------------ ------------ -------
Financial liabilities carried - - -
at fair value: derivatives
Financial liabilities carried
at amortised cost:
Hire purchase obligations
repayable within one year 0.1 0.1 0.1
0.1 0.1 0.1
----------------------------------- ------------ ------------ -------
Floating rate invoice discounting
advances 12.8 9.4 9.8
Revolving credit facility 4.0 10.0 4.0
Hire purchase obligations
repayable after more than
one year - 0.1 0.1
----------------------------------- ------------ ------------ -------
16.8 19.5 13.9
----------------------------------- ------------ ------------ -------
Financial liabilities 16.9 19.6 14.0
----------------------------------- ------------ ------------ -------
9. Share capital
Number
of shares Total
000s GBPm
------------------------------ ----------- ------
Allotted and fully paid:
ordinary shares of 25p each
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
Issue of shares - -
------------------------------ ----------- ------
Balance at 31 May 2017 48,644 12.1
Issue of shares (see below) 16 0.1
------------------------------ ----------- ------
Balance at 30 November 2017 48,660 12.2
------------------------------ ----------- ------
During the half year ended 30 November 2017, 15,900 (H1 2016: 116,139) shares with an aggregate nominal value of GBP3,975 (H1 2016: GBP29,035) 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 2017 amounted to 1,124,619 (H1 2016: 866,884) shares. These shares will only be issued subject to satisfying certain performance criteria.
10. Half Year Report
Copies of this Half Year Report are due to be sent to shareholders on 7 February 2018. 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.
11. 2018 financial calendar Interim dividend paid 1 May 2018 Financial year end 31 May 2018 Full year results announcement Early August 2018 Publication of Annual Late August 2018 Report and Accounts Annual General Meeting 27 September 2018 Final dividend paid Early December 2018
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BLMRTMBATBMP
(END) Dow Jones Newswires
January 30, 2018 02:00 ET (07:00 GMT)
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