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 year ending 31 May 2026 (the "Year").

Second half trading update

Fuels - following a disappointing first half trading performance, demand for heating oil normalised during December 2025 in line with Board expectations, in part due to the arrival of colder weather, leading to a corresponding positive impact on Fuels' performance.

Since the start of March 2026, the conflict in the Middle East has resulted in the Group experiencing volatile trading conditions in its Fuels' business, with very significant short-term movements in oil prices and heightened expectations of a supply constrained UK fuel market. As a result, performance in the Fuels' business during the final quarter of the financial year, to date, has been stronger than anticipated.

Demand levels have remained consistent for commercial customers, whilst domestic demand has reduced in recent weeks. To date, supply has been stable. The business continues to embed the change to its regional operating model.

Food - the business has performed as expected with storage levels being maintained with a continued focus on delivering further efficiency opportunities.

Feeds - volumes and margins were maintained throughout the winter, though market sentiment has softened with the reduction in the milk price over the last few months.

Outlook

Given the stronger performance in Fuels, the Group adjusted profit before tax for the full year is expected to be significantly ahead of market consensus1.

The ongoing situation in the Middle East is leading to uncertainty in respect of the cost of fuel and whether UK fuel supply will become constrained. This is particularly the case for aviation fuel, which in the UK is also the fuel used for heating oil. Demand for heating oil is normally low across the summer, but without a resolution in the Middle East and greater visibility over the security of supply into the UK, there could be a further impact on its affordability and availability going into the colder weather months. In the meantime, the price of oil fluctuates considerably in response to the evolution of the situation.

In light of this backdrop, visibility remains limited heading into the new financial year, and the Board is mindful that the future performance of the Fuels business is difficult to predict. As a consequence, the Board continues to monitor the situation closely and will provide an update to shareholders when the outlook becomes clearer. The Group's full year results are expected to be released in late July 2026.

As it announced on 20 March 2026, the Competition and Markets Authority (CMA') has launched a market study into the retail supply of heating oil for domestic use in the UK. As the third largest fuel distributor in the UK, albeit with less than five per cent. market share, the Group has responded to the CMA statement of scope. The CMA is expected to report in June 2026.

The Board remains confident in the Group's prospects and continues to focus on NWF's long term growth strategy of development through targeted acquisitions, growth investment, and business improvement initiatives, supported by our strong balance sheet.

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 11 May 2026 is for Headline operating profit of £14.9 million and Headline profit before tax of £10.3 million.