NWF Group

Website: NWF Group
Index: AIM
EPIC: NWF
Supersector: Industrial Goods and Services
Sector: Support Services
Subsector: Industrial Suppliers
Market Cap: £65.72M
Payout Frequency: Semi-Annual

NWF Group Dividend Analysis and Summary

Dividend headline

Interim dividend per share: 1.0p (unchanged vs H1 FY24)
Ex-dividend date: 20/03/2026
Record date: 21/03/2026
Payment date: 01/05/2026
Indicative cash cost: c.£0.5m (c.49.6m shares x 1.0p)
Policy/track record: Company notes c.4% annual dividend growth for the last 14 years; interim held flat this year pending H2 performance.

Context and coverage

H1 diluted EPS: 1.4p statutory; 1.6p headline. Interim dividend of 1.0p implies H1 coverage of ~1.4x (stat) to 1.6x (headline).
Operating cash generation: Net cash from operations £9.1m (before capex/leases); underlying cash conversion 77%.
Balance sheet/liquidity: Net cash excluding leases £0.8m; net debt including leases £61.1m. Committed banking facilities of £61.0m to May 2028.
Capital allocation in H1: £5.5m on two bolt-on fuels acquisitions; net capex £2.1m.

Operational backdrop

Mixed H1: Food and Feeds strong; Fuels weak (headline operating loss £1.6m) on low demand and competitive pricing; colder weather post-period is aiding domestic oil demand.
Guidance: Board’s full-year expectations unchanged; H2 seasonally more significant.
Pension: Scheme moved to a £0.7m surplus (from a £2.3m deficit at FY25), but ongoing cash contributions of £2.1m p.a. continue to Dec 2026, plus a percentage uplift linked to dividend growth above £3.1m.

Structural changes and policy signals

M&A: Two bolt-on fuel distributors acquired (Noel Booth & Sons; Harrison Oils). Integration underway; expected cost synergies in the North West region.
Operating model: National rollout of the Fuels regional operating model (July 2025) to improve efficiency and margins.
No share consolidation, demerger or stated changes to dividend policy; interim maintained, with full-year outcome dependent on H2 trading.

Risks/flags relevant to dividend stability

Fuels cyclicality and weather exposure: H1 highlighted demand sensitivity; commercial fuels remain highly competitive, pressuring margins.
Leverage optics: While cash position is positive excluding leases, lease liabilities are material (£61.9m leases outstanding) and finance costs increased (H1 finance costs £2.2m vs £1.5m).
Pension linkage to dividend growth: Contributions rise with dividend growth over £3.1m, modestly constraining future increases.
One-offs: H1 included £1.2m insurance settlement (non-recurring) and ongoing ERP/restructuring costs; integration risk from acquisitions.

Analyst’s take: sustainability and growth trajectory

Near-term sustainability: The flat 1.0p interim appears prudent given weak Fuels H1. Coverage on H1 earnings is adequate and the cash cost is small relative to operating cash flow, supporting payment.
Full-year growth potential: Management’s unchanged guidance and seasonally stronger H2 provide scope to maintain the long-run pattern of low single-digit dividend growth, but the unchanged interim signals a cautious stance pending H2 delivery.
Support from capital allocation/financials: Healthy operating cash generation and undrawn facilities underpin the dividend, though ongoing acquisitions, higher lease-related interest, and pension contributions limit headroom for accelerated dividend growth.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
20/03/2025	01/05/2025	Interim	1.00p	GBX
30/10/2025	05/12/2025	Final	7.40p	GBX

Total (Annual Dividends Per Share): 8.40p

Dividend Yield = Annual Dividends Per Share (8.40p) ÷ Share Price (130.41p) = 6.44%

Ex Dividend Date	Payment Date	Type	Amount	Currency
20/03/2026	01/05/2026	Interim	1.0000p	GBX
30/10/2025	05/12/2025	Final	7.40p	GBX
20/03/2025	01/05/2025	Interim	1.00p	GBX
31/10/2024	06/12/2024	Final	7.10p	GBX
21/03/2024	01/05/2024	Interim	1.00p	GBX
02/11/2023	08/12/2023	Final	6.80p	GBX
16/03/2023	02/05/2023	Interim	1.00p	GBX
03/11/2022	09/12/2022	Final	6.50p	GBX
17/03/2022	03/05/2022	Interim	1.00p	GBX
04/11/2021	10/12/2021	Final	6.20p	GBX
18/03/2021	05/05/2021	Interim	1.00p	GBX
05/11/2020	08/12/2020	Final	5.90p	GBX
19/03/2020	06/05/2020	Interim	1.00p	GBX
31/10/2019	05/12/2019	Final	5.60p	GBX
21/03/2019	01/05/2019	Interim	1.00p	GBX
01/11/2018	06/12/2018	Final	5.30p	GBX
22/03/2018	01/05/2018	Interim	1.00p	GBX
02/11/2017	04/12/2017	Final	5.00p	GBX
23/03/2017	02/05/2017	Interim	1.00p	GBX
03/11/2016	05/12/2016	Final	4.70p	GBX
24/03/2016	03/05/2016	Interim	1.00p	GBX
29/10/2015	04/12/2015	Final	4.40p	GBX
19/03/2015	01/05/2015	Interim	1.00p	GBX
30/10/2014	05/12/2014	Final	4.10p	GBX
19/03/2014	01/05/2014	Interim	1.00p	GBX

Year	Interim	Final	Currency	Total	Change
2024	1.000	7.100	GBX	8.100	3.840
2023	1.000	6.800	GBX	7.800	4.000
2022	1.000	6.500	GBX	7.500	4.160
2021	1.000	6.200	GBX	7.200	4.340
2020	1.000	5.900	GBX	6.900	4.540
2019	1.000	5.600	GBX	6.600	4.760
2018	1.000	5.300	GBX	6.300	5.000
2017	1.000	5.000	GBX	6.000	5.260
2016	1.000	4.700	GBX	5.700	5.550
2015	1.000	4.400	GBX	5.400	5.880
2014	1.000	4.100	GBX	5.100

Number of Shares:

Payment	Paid	Amount
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