Trading Update

For immediate release

NWF Group plc

NWF Group plc: Pre-close Trading Update

NWF Group plc ('NWF' the 'Company' or the 'Group'), the specialist distributor today provides a trading update for the half-year ending 30 November 2025 (the "Period").

Trading update

Trading across the Group's three businesses since its trading statement issued at the time of its AGM in September (the "AGM Statement") has been mixed, with solid performances in Food and Feeds more than off-set by a disappointing trading period for Fuels.

Fuels

In the AGM Statement, it was noted that demand for domestic heating oil and commercial fuels was below the prior year, and data published by the Department for Energy Security and Net Zero ("DESNZ") on 30 October 2025 has reported that heating oil volumes in the three-month period to August 2025 were 25 per cent lower than the prior year. These lower volumes have continued to be experienced, largely attributable to temperatures through the Autumn being warmer than historical averages. With the seasonally busier winter months still to come, the Group expects that heating oil demand will return to normal levels, but this will not compensate for the unusually lower volumes in the first half of the year.

Demand for commercial diesel and gas oil has also been lower in the period following the AGM Statement. Gas oil, which is a higher margin product for the Group, has been specifically impacted, with DESNZ reporting on 30 October 2025 that gas oil volumes in the three-month period to August 2025 were nearly 30 per cent lower than the prior year.

The suppressed market demand for both domestic and commercial fuel has resulted in an increasingly competitive market with pricing pressure impacting margins and profitability of the business.

As announced in the Group's AGM trading statement in September, the national roll out of the Fuels regional operating model was concluded in July. Against the backdrop of the difficult market conditions this operational change has created some short term challenges as the business embeds the new operating model. The investment that has been made will result in commercial and operational improvements as the year progresses.

Food

The Food business has secured new contracted business during the first half of the year, and the benefits from the restructuring of the cost base undertaken in June 2025 are being realised. Taken together, this has resulted in a financial performance for the business ahead of the comparative period. Management continues to focus on delivering further efficiency opportunities and delivering on its growth strategy to develop a national network of scale.

Feeds

The positive momentum in Feeds referred to in the AGM Statement has continued, with volumes in line with the prior year, and healthy margins maintained as the business moves into the traditionally busier half of the year. The milk price remained stable throughout the Period, which encouraged customers to feed livestock to maximise yield.

Outlook

The Group expects the performance of Fuels to improve in the second half as demand for domestic heating oil increases through the colder months. Despite the anticipated recovery, the Board does not believe this will offset the shortfall experienced in the first half, and accordingly, the Group results for the financial year ending 31 May 2026 are now expected to be significantly below current market expectations1.

The medium-term outlook for domestic heating oil remains positive, and on 29 October 2025, DESNZ confirmed that the UK Government would no longer proceed with previous Government proposals to implement regulations restricting fossil fuel heating installations in off-gas grid properties. The Board will continue to monitor developments regarding the Government's proposals and will review the outcome of the recently issued consultation when published.

Whilst this short-term trading performance is disappointing, the Group's financial position is strong and the Board remains confident in its medium-term prospects, and continues to focus on its sustainable growth strategy of development through targeted acquisitions, growth investment, and business improvement initiatives, supported by a strong balance sheet.

Notice of Results

NWF expects to announce its results for the half year ending 30 November 2025 in early February 2026.

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014), as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018) ("MAR") prior to its release as part of this announcement and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

Information for investors, including analyst consensus forecasts, can be found on the Group's website at www.nwf.co.uk.

1Company compiled full year analyst consensus as at 20 November 2025 is for Headline operating profit of £17.9m and Headline profit before tax of £13.2m.