Interim Results

NWF Group PLC 25 January 2001 NWF Group plc (Diversified Industrials) INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2000 Chairman's Statement As anticipated, the Group pre-tax profit of £1,005,000 for the period shows a slight drop from last year's £1,113,000 due mainly to seasonal factors. Sales, once again heavily influenced by fuel prices, rose from £53m to £70m and earnings per share were 8.8p (1999: 9.6p). An Interim Dividend of 3.2p per share (1999: 3.1p) has been approved by the Board for payment on 1 May to shareholders on the Register on 30 March 2001. The shares will go ex-dividend on 28 March 2001. The Agriculture business continues to achieve record sales with total processed feed volumes running at over 210,000 tons pa. Margins were tighter than last year as the dairy industry experienced its worst circumstances for decades and operating profit in the half was reduced to £276,000 (1999: £377,000). The unexpected EC ban on fish meal use in ruminant feeds caused a stock write-down of £38,000 which has been included in this result. The mill will see further efficiency investment and the blends plant is being extended with the expectation of a busy second half. Distribution had a quieter first half than last year when there was some extra business from the Millennium preparations. The new warehouse project was completed on time and within budget and we expect it shortly to be taken fully into use by a major customer. Various start-up costs associated with this development also contributed to bringing operating profit down to £554,000 (1999: £686,000) but the second half outlook is favourable. Fuels saw a significant return to historical profit levels as oil prices stabilised, albeit at high levels. Volumes were 19% up on last year in total across all products and margins were closer to typical values. Operating profit was £491,000 (1999: £90,000). A further depot was added to the business at Ammanford, Carmarthenshire, by the acquisition of G. Thomas & Sons in October. The Retail operations have suffered from the exceptionally poor weather of 2000, particularly in the garden centres where customers have been discouraged from their normal seasonal outdoor activities. The operating result was a loss of £36,000 for this period (1999: £171,000 profit). Investments and improvements have been carried out in expectation of better prospects for the gardening and leisure markets in 2001. We were pleased to win the 2000 AIM Award for Best Communication to investors. Historically, the majority of our profit is earned in the second half year and we expect the four businesses to deliver results which will reflect further progress in their markets. J. Roy Willis, Chairman, 25 January 2001 Group Profit and Loss Account Half year to 30 November 2000 Unaudited Unaudited Audited Half year to Half year to Year to 30 November 30 November 31 May 2000 1999 2000 --------------- --------------- --------- £'000 £'000 £'000 Turnover 70,327 53,000 117,128 Operating costs (69,042) (51,676) (113,572) --------------- --------------- --------- Operating profit 1,285 1,324 3,556 Interest payable (280) (211) (468) --------------- --------------- ---------Profit on ordinary activities before 1,005 1,113 3,088 taxation Taxation (312) (356) (952) --------------- --------------- ---------Profit after taxation 693 757 2,136 Equity dividends payable (253) (245) (806) --------------- --------------- ---------Profit transferred to reserves 440 512 1,330 --------------- --------------- --------- Earnings per share (Note 1) Basic 8.8p 9.6p 27.0p Diluted 8.8p 9.6p 27.0p Dividends per share 3.2p 3.1p 10.2p Notes: 1. The calculation of basic earnings per share for the half year is based on profit after taxation of £693,000 (1999: £757,000) and on 7,900,941 (1999: 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 (1999: 16,000). 2. The comparative figures for the year to 31 May 2000 are an abridged version of the Accounts filed with the Registrar of Companies on which an unqualified audit opinion has been given. 3. The above statement and those following have been prepared on the basis of accounting policies set out in the 2000 Annual Financial Statements. Summarised Group Balance Sheet At 30 November 2000 Unaudited Unaudited Audited 30 November 30 November 31 May 2000 1999 2000 --------------- --------------- --------- £'000 £'000 £'000 Goodwill 724 95 152 Fixed assets 17,187 14,686 14,522 Stocks 5,122 4,388 4,736 Debtors 18,960 15,206 15,207 Cash and bank balances 15 21 18 Creditors: amounts falling due within one (24,615) (19,769) (19,387) year --------------- --------------- ---------Total assets less current liabilities 17,393 14,627 15,248 Creditors: amounts falling due after more than one year (4,411) (2,899) (2,684) Provision for liabilities and charges (693) (697) (715) --------------- --------------- ---------Net assets 12,289 11,031 11,849 --------------- --------------- ---------Total equity shareholders' funds 12,289 11,031 11,849 --------------- --------------- --------- Reconciliation of Movements in Equity Shareholders' Funds Half year to 30 November 2000 Unaudited Unaudited Audited Half year to Half year to Year to 30 November 30 November 31 May 2000 1999 2000 --------------- --------------- ------------ £'000 £'000 £'000 Profit after taxation 693 757 2,136 Dividends (253) (245) (806) --------------- --------------- ------------Net addition to equity shareholders' 440 512 1,330 funds Opening equity shareholders' funds 11,849 10,519 10,519 --------------- --------------- ------------Closing equity shareholders' funds 12,289 11,031 11,849 --------------- --------------- ------------ Summarised Group Cash Flow Statement Half year to 30 November 2000 Unaudited Unaudited Audited Half year to Half year to Year to 30 November 30 November 31 May 2000 1999 2000 --------------- --------------- --------------- £'000 £'000 £'000 Operating profit 1,285 1,324 3,556 Goodwill amortisation 5 - 5 Depreciation 910 815 1,661 Increase in working capital (2,157) (1,658) (894) Other (42) (99) (158) --------------- --------------- --------------- Operating cash flow 1 382 4,170 Interest (199) (235) (457) Taxation (204) (12) (1,153) Equity dividends (561) (521) (766) Purchase of tangible fixed (3,554) (1,095) (1,651) assets Sale of tangible fixed assets 54 245 307 Acquisitions (421) (95) (498) Deferred acquisition payments (650) (950) (950) --------------- --------------- --------------- Net cash outflow before (5,534) (2,281) (998) financing Medium term loan movements 2,249 (500) (500) --------------- --------------- --------------- Decrease in cash in the period (3,285) (2,781) (1,498) --------------- --------------- --------------- Reconciliation of Net Cash Flow to Movement in Net Debt Half year to 30 November 2000 Unaudited Unaudited Audited Half year Half year Year to to to 31 May 30 30 November November 2000 2000 1999 --------------- --------------- -------- £'000 £'000 £'000 Decrease in cash per cash flow statement (3,285) (2,781) (1,498) Cash (inflow)/outflow from increase/decrease in debt financing (2,249) 500 500 --------------- --------------- --------Change in net debt resulting from cash flows (5,534) (2,281) (998) Net debt brought forward (7,273) (6,275) (6,275) --------------- --------------- --------Net debt carried forward (12,807) (8,556) (7,273) --------------- --------------- --------Analysis of net debt: Cash and bank balances 15 21 18 Overdrafts (8,073) (6,077) (4,791) Short term loan (438) (251) (466) Medium/long term loans (4,311) (2,249) (2,034) --------------- --------------- -------- (12,807) (8,556) (7,273) --------------- --------------- -------- Segmental Analysis Half year to 30 November 2000 Unaudited Unaudited Audited Half year to Half year to Year to 30 November 30 November 31 May 2000 1999 2000 --------------- --------------- --------------- £'000 £'000 £'000 Turnover Agriculture 15,202 12,710 29,767 Distribution 4,134 4,635 8,968 Fuels 45,215 31,097 66,843 Retail 5,776 4,558 11,550 --------------- --------------- --------------- 70,327 53,000 117,128 --------------- --------------- --------------- Operating profit Agriculture 276 377 1,100 Distribution 554 686 1,342 Fuels 491 90 421 Retail (36) 171 693 --------------- --------------- --------------- 1,285 1,324 3,556 --------------- --------------- --------------- Net operating assets Agriculture 8,573 7,076 7,044 Distribution 9,627 7,431 6,765 Fuels 3,228 3,366 3,055 Retail 5,529 5,128 5,291 --------------- --------------- --------------- 26,957 23,001 22,155 --------------- --------------- --------------- 2001 Financial Calendar Interim Dividend Paid 1 May 2001 Financial Year End 31 May 2001 Preliminary Announcement of Full Year Results August 2001 Publication of Full Year Report and Accounts September 2001 Annual General Meeting 27 September 2001 Final Dividend Paid 1 November 2001 Copies of the Interim Statement are being sent to shareholders on Monday, 5 February 2001. 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: http://nwf.co.uk For further information contact: Graham Scott (Chief Executive) 01829 260260 Alan Fulker (Finance Director)

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