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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