Interim Results

NWF Group PLC 1 February 2002 NWF Group plc INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2001 Chairman's Statement I am pleased to report another strong performance by the Group. Pre-tax profit for the period was up 20% to Â£1,203,000 from last year's Â£1,005,000. Turnover rose by 5% from Â£70m to Â£74m and earnings per share climbed from 8.8p to 10.5p. The Board has reconfirmed its progressive dividend policy and approved an Interim Dividend of 3.6p per share (2000: 3.2p) which will be paid on 1 May 2002 to shareholders on the Register on 2 April 2002. The shares will go ex-dividend on 27 March 2002. The Agriculture business lifted operating profits significantly to Â£469,000 from Â£276,000 in the first half of last year by further increases in market share and by improved efficiencies. In the period, sales of compounded and blended feeds were 115,000 tons (2000: 102,000 tons). Trading activities of other agricultural inputs were also successful. The first half year saw the full use of the new warehousing capacity in Distribution which helped raise operating profits from Â£554,000 to Â£608,000. Further operating efficiencies are in train. The packing activity was particularly busy with a turnover in the period more than double that of last year. Fuels had a firm half with operating profits at Â£462,000 which were, as expected, a little lower than last year's result of Â£491,000 which had been partially driven by the exceptional demand for fuels in the autumn of 2000. Lincolnshire Fuels has been launched as a start-up, drawing product from the Conoco refinery at Immingham. The Retail business enjoyed better success this time and returned an on-plan operating profit of Â£6,000, an improvement on the weather-affected loss of Â£36,000 last year. Garden Centre sales were 10% higher than last time while the majority of the Country Stores also improved on last year. The Board expects that progress for the Group will be maintained but the second half performance, which has historically contributed the majority of the annual profit, will depend on the usual seasonal factors in the final months leading up to May 2002. On 1 November, we welcomed John Acornley to the Board as a Non-Executive Director. John, who is 48, has extensive business and financial experience and currently serves on the Board of several other companies. J Roy Willis Chairman 31 January 2002 Group Profit and Loss Account Half year to 30 November 2001 Unaudited Unaudited Audited Half year to Half year to Year to 30 November 30 November 31 May 2001 2000 2001 as restated --------------- --------------- --------------- Â£'000 Â£'000 Â£'000 Turnover 73,883 70,327 147,187 Operating costs (72,338) (69,042) (143,090) --------------- --------------- --------------- Operating profit 1,545 1,285 4,097 Interest payable (342) (280) (693) --------------- --------------- --------------- Profit on ordinary activities before taxation 1,203 1,005 3,404 Taxation (373) (312) (1,055) --------------- --------------- --------------- Profit after taxation 830 693 2,349 Equity dividends payable (285) (253) (877) --------------- --------------- --------------- Profit transferred to reserves 545 440 1,472 --------------- --------------- --------------- Earnings per share (see note 1) Basic and diluted 10.5p 8.8p 29.7p Dividends per share 3.6p 3.2p 11.1p Summarised Group Balance Sheet At 30 November 2001 Unaudited Unaudited Audited 30 November 30 November 31 May 2001 2000 2001 as restated as restated --------------- --------------- --------------- Â£'000 Â£'000 Â£'000 Goodwill 687 724 705 Fixed assets 17,434 17,187 17,324 Stocks 4,562 5,122 4,943 Debtors 18,372 18,960 19,281 Cash and bank balances 22 15 21 Creditors: amounts falling due within one year (22,639) (24,615) (24,050) --------------- --------------- --------------- Total assets less current liabilities 18,438 17,393 18,224 Creditors: amounts falling due after more than one year (3,840) (4,411) (4,180) Provision for liabilities and charges (1,008) (988) (1,018) --------------- --------------- --------------- Net assets 13,590 11,994 13,026 --------------- --------------- --------------- Total equity shareholders' funds 13,590 11,994 13,026 --------------- --------------- --------------- Reconciliation of Movements in Equity Shareholders' Funds Half year to 30 November 2001 Unaudited Unaudited Audited Half year to Half year to Year to 30 November 30 November 31 May 2001 2000 2001 as restated as restated --------------- --------------- --------------- Â£'000 Â£'000 Â£'000 Profit after taxation 830 693 2,349 Dividends (285) (253) (877) Share capital subscribed including premium 19 - - --------------- --------------- --------------- Net addition to equity shareholders' funds 564 440 1,472 Original opening equity shareholders' funds - 11,849 11,849 Prior period adjustment for deferred tax (see note 4) - (295) (295) Adjusted opening shareholders' funds 13,026 - - --------------- --------------- --------------- Closing equity shareholders' funds 13,590 11,994 13,026 --------------- --------------- --------------- Summarised Group Cash Flow Statement Half year to 30 November 2001 Unaudited Unaudited Audited Half year to Half year to Year to 30 November 30 November 31 May 2001 2000 2001 --------------- --------------- --------------- Â£'000 Â£'000 Â£'000 Operating profit 1,545 1,285 4,097 Goodwill amortisation 18 5 24 Depreciation 927 910 1,808 Increase in working capital (118) (2,157) (1,428) Other (28) (42) (133) --------------- --------------- --------------- Operating cash flow 2,344 1 4,368 Interest (365) (199) (670) Taxation (437) (204) (1,068) Equity dividends (624) (561) (814) Purchase of tangible fixed assets (1,039) (3,554) (4,759) Sale of tangible fixed assets 20 54 361 Acquisitions - (421) (421) Deferred acquisition payments (800) (650) (650) Share capital subscribed including premium 19 - - --------------- --------------- --------------- Net cash outflow before financing (882) (5,534) (3,653) Medium term loan movements (223) 2,249 2,034 --------------- --------------- --------------- Decrease in cash in the period (1,105) (3,285) (1,619) --------------- --------------- --------------- Reconciliation of Net Cash Flow to Movement in Net Debt Half year to 30 November 2001 Unaudited Unaudited Audited Half year to Half year to Year to 30 November 30 November 31 May 2001 2000 2001 --------------- --------------- --------------- Â£'000 Â£'000 Â£'000 Decrease in cash per cash flow statement (1,105) (3,285) (1,619) Cash outflow/(inflow) from decrease/(increase) in debt financing 223 (2,249) (2,034) --------------- --------------- --------------- Change in net debt resulting from cash flows (882) (5,534) (3,653) Net debt brought forward (10,926) (7,273) (7,273) --------------- --------------- --------------- Net debt carried forward (11,808) (12,807) (10,926) --------------- --------------- --------------- Analysis of net debt: Cash and bank balances 22 15 21 Overdrafts (7,519) (8,073) (6,413) Short term loan (471) (438) (454) Medium/long term loans (3,840) (4,311) (4,080) --------------- --------------- --------------- (11,808) (12,807) (10,926) --------------- --------------- --------------- Segmental Analysis Half year to 30 November 2001 Unaudited Unaudited Audited Half year to Half year to Year to 30 November 30 November 31 May 2001 2000 2001 --------------- --------------- --------------- Â£'000 Â£'000 Â£'000 Turnover Agriculture 19,400 15,202 38,816 Distribution 6,464 4,134 8,990 Fuels 41,865 45,215 86,158 Retail 6,154 5,776 13,223 --------------- --------------- --------------- 73,883 70,327 147,187 --------------- --------------- --------------- Operating profit Agriculture 469 276 1,270 Distribution 608 554 1,125 Fuels 462 491 1,106 Retail 6 (36) 596 --------------- --------------- --------------- 1,545 1,285 4,097 --------------- --------------- --------------- Net operating assets Agriculture 9,347 8,573 8,735 Distribution 9,398 9,627 9,670 Fuels 2,889 3,228 3,314 Retail 5,005 5,529 4,508 --------------- --------------- --------------- 26,639 26,957 26,227 --------------- --------------- --------------- Notes: 1. The calculation of basic earnings per share for the half year is based on profit after taxation of Â£830,000 (2000: Â£693,000) and on 7,910,471 (2000: 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 the weighted average number (6,470) of share options outstanding through the period (2000: 16,000). 2. The comparative figures for the year to 31 May 2001 are an abridged version of the Accounts filed with the Registrar of Companies, subject to notes 3 and 4 below, 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 2001 Annual Financial Statements with the following exceptions. For the financial year beginning on 1 June 2001, the Group has adopted three new Financial Reporting Standards - FRS17 (Retirement Benefits), FRS 18 (Accounting Policies) and FRS 19 (Deferred Tax). The comparative figures for the year to 31 May 2001 have been restated to reflect the impact of FRS 19 (see note 4). There have been no changes to the financial information in the Interim Statement as a consequence of adopting FRS 17 and 18. 4. The comparative figures have been restated to reflect the change in accounting policy for deferred tax. The new standard requires full provision to be made for timing differences between the recognition of gains and losses in the accounts and their recognition in related tax computations, whereas a partial provision was previously followed in accordance with the previous standard. The prior period adjustment is a cumulative debit adjustment to reserves of Â£260,000, the majority of which relates to the year ended 31 May 2000 and prior periods. The comparative amounts for the year to 31 May 2001 have been restated in accordance with the new policy. The impact on results for the six months to 30 November 2000 was immaterial and the full year to 31 May 2001 was a credit of Â£35,000. 2002 Financial Calendar Interim Dividend Paid 1 May 2002 Financial Year End 31 May 2002 Preliminary Announcement of Full Year Results August 2002 Publication of Full Year Report and Accounts September 2002 Annual General Meeting 26 September 2002 Final Dividend Paid 1 November 2002 Copies of the Interim Statement are being sent to shareholders on Friday, 8 February 2002. 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) This information is provided by RNS The company news service from the London Stock Exchange

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