REG - NWF Group PLC - Fuels Acquisition

NWFAnnouncement

10/03/2025 07:00

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RNS Number : 8931Z  NWF Group PLC  10 March 2025

For release: 7.00am, 10 March 2025

 

NWF Group plc

 

Fuels Acquisition

 

NWF Group plc ("NWF" or the "Group"), the specialist distributor, announces it
has acquired 100 per cent. of the issued share capital of Northern Energy Oil
Limited ("Northern"). This is in line with the Group's strategy to grow its
fuels distribution business through consolidation, which represents the third
largest operation in the United Kingdom.

 

Acquisition rationale and background

 

Northern is a 42 million litre fuel distributor operating five sites in North
Yorkshire, Northumbria and Lincolnshire, with a largely domestic customer
base. The acquisition increases the Group's presence in the North-East of
England, where NWF is currently underrepresented. Northern will increase NWF's
total fuel volumes by about six per cent. on a pro forma basis.

 

The total consideration for Northern is £8.3 million, which comprises £7.3
million paid in cash on completion from NWF's existing cash resources, with
the remaining £1.0 million being held on retention to be released in three
tranches, subject to the vendors complying with certain post-completion
conditions, which are expected to be met within the next 18 months.

 

In the 12 months to 31 August 2024, Northern generated revenue of £35.1
million, EBITDA of £0.6 million, profit before tax of £0.1 million and had
period end net assets of £2.7 million. These results included costs of
approximately £0.6 million relating to other business activities of the
owners of Northern which will not be incurred following completion of the
transaction. Northern is expected to be immediately earnings accretive and to
benefit from margin expansion once fully integrated into the Group's existing
infrastructure.

 

 

Commenting on the acquisition, Chris Belsham, CEO of NWF Group, said:

 

"We are delighted to announce the acquisition of Northern, which represents an
excellent example of NWF's strategy at play to consolidate the highly
fragmented fuels distribution market. This acquisition, our first since Geoff
Boorman in 2023, demonstrates our intent to pursue attractive, earnings
accretive transactions, consistent with our strong and established track
record. Our pipeline of potential fuels acquisitions remains active, supported
by our robust financial position.  I would like to welcome our new Northern
colleagues to the Group."

 

 

 Chris Belsham, Chief Executive Officer     Reg Hoare            Mike Bell

 Katie Shortland, Chief Financial Officer   Veronica Farah       Ed Allsopp

MHP Communications

 NWF Group plc
                    Peel Hunt LLP (Nominated adviser and broker)

Tel: 01829 260 260                        nwf@mhpgroup.com
Tel: 020 7418 8900

Tel: 07711 191 518

 

 

 

 

 

 

 

 

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