NWF Fuels is a leading distributor of fuel oil and fuel cards, delivering over 647 million litres across the UK.
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647m
Litres per annum
339
People
32
Depots
174
Tankers
Our Fuels locations
Review of the year
Fuels experienced very challenging market conditions. The warm weather in late spring 2025 and autumn 2025 resulted in UK market heating oil demand being 16% lower in the first half versus the prior year whilst UK demand for commercial gas oil was 6% lower. This suppressed market demand resulting in volume and margin pressure on all products throughout that period.
The arrival of colder weather in December and January led to improving demand for heating oil with a corresponding positive impact on Fuels’ performance.
The start of the conflict in the Middle East in March resulted in a significant increase in oil prices combined with significant day-to-day volatility. This was particularly marked for heating oil which is closely related to the global price and availability of aviation fuel. After some initial panic buying, UK demand for heating oil fell sharply for the remainder of the financial year. Demand for commercial diesel and gas oil remained consistent and the business performance benefitted from the volatility. This is similar to the demand profile which the Group experienced in 2022 at the outset of the war in Ukraine.
Volumes were slightly below the prior year at 647 million litres (2025: 660 million litres). Revenue increased by 4.0% to £636.7 million (2025: £612.3 million) driven by the increased oil price in the latter quarter of the year. The average Brent Crude oil price in the year was consistent with the prior year at $75 per barrel. However, the volatility during the year was very high compared to prior years, with a high of $118 per barrel in April 2026 and a low of $59 per barrel in December 2025. This volatility largely occurred in the fourth quarter as a result of the conflict in the Middle East, and it resulted in additional profit for the Group in this period of the year. Headline operating profit was £8.1 million
(2025: £8.4 million), which resulted in a reported net profit of 1.25p per litre (2025: 1.27p per litre).
Two acquisitions were completed in the first half of the financial year, both in the North-West of England: Noel Booth & Sons Limited for £1.6 million cash paid (July 2025) and Harrison Oils Limited for £3.2 million paid net of cash acquired (September 2025). These acquisitions were integrated into the new regional operating model as part of the North-West region providing the opportunity to realise cost synergies over time.
The Fuels business currently provides a service to domestic and SME commercial customers across England and Wales from 32 depots. Historically, the depots have operated as individual businesses which has provided the opportunity to respond flexibly to local market conditions, albeit it has made it difficult to deliver improvements in its sales processes and operational efficiency. During the year, and in response to these challenges, the Group has rolled out a regional operating model nationally to centralise its sales and operational activities into regional hub offices whilst maintaining the individual depots as delivery locations. This model allows the Group to enhance its domestic and commercial sales processes, provide an improved and consistent customer experience, and utilise its tanker fleet more effectively.
The challenging market conditions meant that fully embedding the new operating model has taken longer than anticipated; however, the visibility and control offered by the new model has enhanced the ability of the business to react accordingly and deliver the associated benefits going forward. Utilising this new model the Board believes there is opportunity to grow NWF’s market share organically and improve its efficiency, delivering a higher margin business. The extensive depot network also provides the opportunity to supply larger, more complex commercial customers which require reliable service in multiple or difficult locations.
With 117,000 customers (2025: 109,000) being supplied across England and Wales, Fuels operates in large and robust markets, and as a business has consistently proved it can effectively manage the impact of volatility in oil prices. The industry remains highly fragmented, with many small operators, which provides NWF with further opportunities to consolidate the market and/or increase its market share organically, subject to investment elsewhere in the Group.
