Origin Enterprises
plc
PRELIMINARY RESULTS
STATEMENT
Solid Q4 operating
performance underpins full year adjusted EPS of 48.06
cent,
at upper end of
guidance range
Dublin, London, 24 September 2024: Origin Enterprises plc ('Origin' or 'the Group'), the
international group championing
sustainable land use solutions, announces
results for the financial year ended 31 July 2024
('FY24').
Financial Summary
· Operating profit1 of €83.5 million and adjusted
EPS3 of 48.06 cent at upper end of guidance range, back
8.0% and 9.6% respectively on prior year
· Decrease in Group revenue of 16.7% to €2.0 billion,
reflecting lower global feed and fertiliser raw materials pricing,
partly offset by a 7.1% volume increase driven by a recovery in
fertiliser volumes and strong feed volumes
· Volume growth improved to 12.7% in H2 as demand for feed and
fertiliser improved and crop protection volumes benefited from
strong late season applications
· Strong balance sheet at year end with net debt4 of
€71.7 million and key EBITDA:Net Debt covenant at 0.66x
· Agriculture
o Operating profit1
from Agriculture of €71.6 million, a reduction of 10.1% year on
year, as a result of adverse weather during key application
periods, primarily in the UK and Ireland
o Continental Europe and Latin
America delivered a good performance with volume growth across both
regions resulting in operating profits of €17.5 million and
€15.1 million respectively
· Living Landscapes
o Operating profit1
of €11.9 million, representing a 7.1% increase on FY23 supported by
the performance from recent acquisitions
o Living Landscapes now
represents 14.2% of Group operating profit1
Capital Allocation Summary
· Cumulative acquisition spend of €44.3 million in FY24,
primarily driven by the completion of the put/call option for the
residual 35% interest in Fortgreen in Latin America of €30.9
million
· Strategic capital expenditure of €34.1m, primarily in
Agriculture, including:
o New FoliQ fertiliser plant in Poland
o Investment programme to expand micropack production facility
in Agrii Romania
o Build of a new blending plant and warehouse at the Port of
Tyne in our Origin Fertiliser UK business
o Continued expansion of production facilities in
Brazil
o Continued rollout of our new ERP D365 platform across the
Ireland and UK businesses
· Further expansion of Living Landscapes with acquisition of
Avian Ecology and Bowland Ecology, two UK based specialist
ecological consultancy businesses, post year end
· €20
million share buyback completed on 13 September 2024; average price
of €3.17 per share
· Proposed final dividend of 13.65 cent per share; total FY24
dividend of 16.80 cent, in line with prior year
Origin's Chief Executive Officer, Sean Coyle,
commented:
"Following a solid Q4 performance,
supported by strong late applications, Origin delivered an FY24
operating profit of €83.5 million and an adjusted earnings per
share of 48.06 cent, which is at the upper end of our Q3 guidance
range. This result is a significant improvement on the last
challenging weather year experienced in FY20 and that is testament
to the growth in Fertiliser and Feed operations, Central Europe and
LATAM performance and the Group's ongoing diversification and
expansion into Living Landscapes.
Our Agriculture businesses
delivered an operating profit of €71.6 million, a 10.1% reduction
on the prior year primarily driven by the UK market which
experienced a reduced planted area and delayed on-farm activity as
a result of challenging early season drilling and application
window. To ensure the business is better aligned to the future
margin opportunity, we had to take the difficult decision to reduce
staff numbers in our UK agronomy business.
Our animal feed joint ventures in
Ireland delivered strong results, largely as a result of the
increased demand for feed due to the poor weather. The Group's
performance was supported by the growth of our newly branded
'Living Landscapes' operations, which includes our amenity,
ecology, and environmental businesses. We made progress on our
strategic objective of expanding our footprint in this space, with
the completion of two complementary acquisitions during the year
and a further two subsequent to year end. Living Landscapes now
accounts for 14.2% of the Group's operating profit, up from 12.2%
last year and we remain ambitious for further acquisition and
organic growth in the coming years. We were delighted to appoint TJ
Kelly, former Group CFO, as Managing Director of Living Landscapes
and overseeing its development and expansion, with Colm Purcell
joining as Group CFO on 15 July 2024.
We continue to pursue a
disciplined approach to capital allocation. During the year we
returned €36.7 million to shareholders though the share buyback
programme and dividends. Total shareholder returns for the last 3
years amounts to €128.1 million, or 36% of our current market
capitalisation. We have invested €44.3 million in acquisition
growth including the completion of the acquisition of the residual
35% interest in Fortgreen in Latin America for €30.9 million, while
maintaining a year end EBITDA:Net Debt ratio of less than
1x.
While trading conditions have been
particularly challenging throughout FY24, the resilience of our
business model and increased diversity of our earnings profile is
evident in our solid full year performance. The Group remains well
on track to deliver the strategic, operational and financial goals
outlined in our 2022 Capital Markets Day. Consistent with previous
years, the Group will issue a Q1 Trading Update for FY25 on the
date of the AGM, 21 November 2024."
Financial Review - Summary
|
FY24
€'000
|
FY23
€'000
|
Change
%
|
Constant
Currency
%
|
|
|
|
|
|
Group revenue
|
2,045,701
|
2,456,168
|
(16.7%)
|
(18.0%)
|
Operating
profit1
|
83,516
|
90,791
|
(8.0%)
|
(8.7%)
|
Associates and joint
venture2
|
6,421
|
4,040
|
58.9%
|
56.7%
|
Total group operating profit1
|
89,937
|
94,831
|
(5.2%)
|
(5.9%)
|
Finance expense, net
|
(18,566)
|
(12,963)
|
43.2%
|
42.2%
|
Profit before tax1
|
71,371
|
81,868
|
(12.8%)
|
13.5%
|
Taxation
|
(16,180)
|
(19,230)
|
(15.9%)
|
|
Adjusted net profit
|
55,191
|
62,638
|
(11.9%)
|
|
Basic EPS (cent)
|
36.73
|
45.24
|
(18.8%)
|
|
Adjusted diluted EPS (cent)3
|
48.06
|
53.16
|
(9.6%)
|
|
Return on capital employed (%)
|
11.2%
|
12.6%
|
(140bps)
|
|
Group net (debt)/cash4
|
(71,686)
|
53,175
|
(124,861)
|
|
Operating margin1 (%)
|
4.1%
|
3.7%
|
40bps
|
|
Free cash flow (€'000)
|
6,175
|
104,418
|
(98,243)
|
|
Dividend per ordinary share (cent)
|
16.80c
|
16.80c
|
-
|
|
Adjusted net profit reconciliation
|
FY24
€'000
|
FY23
€'000
|
|
Reported net profit
|
40,428
|
51,032
|
|
Amortisation of non-ERP intangible
assets
|
13,312
|
13,435
|
|
Tax on amortisation of non-ERP
related intangible assets
|
(2,864)
|
(2,460)
|
|
Exceptional items (net of
tax)
|
4,315
|
631
|
|
Adjusted net profit
|
55,191
|
62,638
|
|
|
|
|
|
Group revenue
Group revenue decreased by 16.7%
to €2,045.7 million on a reported basis and 18.0% on a constant
currency basis. Excluding crop marketing, revenue reduced by 17.1%,
with price reductions of 26.1%, reflecting expected global
commodity price movements, partially offset by volume increases of
7.8% and acquisitions of 1.2%.
Operating profit1
Operating profit1
amounted to €83.5 million compared to €90.8 million in FY23, a
reduction of 8.0%. Overall, our Agriculture businesses saw a 10.1%
reduction in operating profit to €71.6 million, while Living
Landscapes saw a 7.1% increase to €11.9 million. Group operating
margin increased from 3.7% to 4.1% in FY24, principally driven by
margin improvements in our Agriculture business.
Associates and joint venture2
Origin's share of the profit after
taxation from associates and joint venture amounted to €6.4 million
in the period (FY23: €4.0 million). The FY24 performance reflects a
stronger feed commodity market largely driven by the increased
demand for feed due to the poor weather during the year.
Finance costs and net bank debt4
Net debt4 at 31 July
2024 was €71.7 million (FY23: Net cash4 of €53.2
million), a movement of €124.9 million on the prior year. The
movement reflects an acquisition spend of €44.3 million, including
the settlement of the Fortgreen put/call option of €30.9 million, a
net working capital outflow during the year of €62.9 million
(including sanction payments amounting to €37.5 million), growth
related capital expenditure of €34.1 million and returns to
shareholders through share buy backs and dividends of €36.7
million.
Net finance costs amounted to
€18.6 million, which represents an increase of €5.6 million on the
prior year, reflecting increased interest rates and average debt,
year-on-year, across the Group.
At 31 July 2024, the Group had
unsecured committed banking facilities of €400.0 million (2023:
€400.0 million), with pricing linked to ESG performance, which will
expire in 2026.
At year end the Group's key
banking covenants were as follows:
|
Banking
Covenant
|
FY24
|
FY23
|
|
|
|
|
Net debt to
EBITDA
|
Maximum
3.5
|
0.66
|
-
|
|
|
|
|
EBITDA to net interest
|
Minimum
3.0
|
6.51
|
8.57
|
Working capital
For the year ended 31 July 2024,
there was a working capital outflow of €62.9 million. The increase
in working capital investment was primarily driven by higher
debtors as a result of delayed applications due to weather and a
reduction in creditors following the payment of c.50% of
outstanding suspended supplier amounts in compliance with sanctions
regimes amounting to €37.5 million.
The period end working capital
position includes the residual net impact of trade payables which
have been suspended in accordance with international sanctions
imposed by authorities in response to the Russian invasion of
Ukraine in 2022. We continue to closely monitor the situation with
regard to sanctions and act accordingly.
Adjusted diluted earnings per share
('EPS')3
Adjusted diluted EPS3
amounted to 48.06 cent per share (FY23: 53.16 cent), a decrease of
9.6% on a reported basis and 10.3% on a constant currency
basis.
Free cash flow
|
FY24
€'m
|
FY23
€'m
|
|
|
|
Free cash flow
|
6.2
|
104.4
|
Free cash flow conversion
ratio
|
12.7%
|
178.2%
|
|
|
|
|
The Group generated free cash flow
in the year of €6.2 million (FY23: €104.4 million). The movement in
the free cash flow is primarily due to the timing of suspended
sanction payments year on year and the timing of receipts with
higher sales later in the year as a result of delayed
applications.
Free cash flow means the total of
earnings before interest, tax, depreciation (excluding depreciation
of IFRS 16 Right of Use leased assets), amortisation of non-ERP
related intangible assets and exceptional items of wholly owned
businesses ('EBITDA') adjusted to take account of interest, tax,
routine capital expenditure, working capital cash flows and
dividends received.
Free cash flow conversion ratio
means free cash flow as a percentage of profit after tax of wholly
owned businesses, excluding exceptional items and amortisation of
non-ERP related intangible assets.
Return on capital employed
|
FY24
|
FY23
|
Return on capital employed
('ROCE')
|
11.2%
|
12.6%
|
The Group delivered a ROCE of
11.2%. The Group's operating performance decline resulted in a ROCE
of 11.2%, below our target range of 12-15%. Return on capital
employed is a key performance indicator for the Group and
represents Group earnings before interest, tax and amortisation of
non-ERP related intangible assets from continuing operations
('EBITA') taken as a percentage of the Group Net Assets. For the
purposes of this calculation:
(i)
|
EBITA includes the net profit
contribution from associates and joint venture (after interest and
tax) and excludes the impact of exceptional and non-recurring
items; and
|
|
|
(ii)
|
Group Net Assets means total
assets less total liabilities as shown in the annual report
excluding net debt, derivative financial instruments, put option
liabilities, accumulated amortisation of non-ERP related intangible
assets and taxation related balances. Net Assets are also adjusted
to reflect the average level of acquisition investment spend and
the average level of working capital for the accounting
period.
|
Exceptional items
Exceptional items net of tax
amounted to a charge of €4.3 million in the year (FY23: €0.6
million), and are summarised in the table below:
|
FY24
€'m
|
|
FY23
€'m
|
|
|
|
|
|
|
|
|
Acquisition related items
|
(2.0)
|
|
2.3
|
|
|
Ukraine related costs
|
4.5
|
|
2.0
|
|
|
Redundancy and restructuring
costs
|
3.5
|
|
-
|
|
|
Arising in associates and joint
venture
|
(1.7)
|
|
(3.7)
|
|
|
Total exceptional items, net of tax
|
4.3
|
|
0.6
|
|
|
Acquisition-related items include
adjustments to the fair value of contingent consideration during
the year. Operations in Ukraine were closed down in Q3 FY24 with
associated costs and costs relating sanction payments included
above. Redundancy and restructuring costs are largely driven by
restructuring within the Agrii UK business to position the Group
for future growth. Associates and joint venture costs include the
gain on disposal of property and settlement of an insurance
claim.
Dividends
The Directors are proposing a
final dividend of 13.65 cent per ordinary share for approval at the
AGM in November 2024, bringing the total dividend payment for FY24
to 16.80 cent. Subject to shareholder approval at the AGM, this
final dividend will be paid on 14 February 2025 to shareholders on
the register on 24 January 2025.
Board changes
Mr Dick Hordijk
(Netherlands), Chief Executive Officer and
Chairman of the Executive board of Royal Agrifirm Group, a global
agricultural cooperative, will be appointed to
the Board as an independent Non-Executive Director, with effect
from 16 October 2024.
Colm Purcell joined the Group as
Chief Financial Officer on 15 July 2024. Colm will be co-opted to
the Board on 25 September 2024 following the publication of the
Group's full year results for 2024.
Share buyback programme
On 21 November 2023 the Group
commenced a share buyback programme to repurchase up to €20 million
of ordinary shares. At 31 July 2024, the Group had spent €18.2
million on the programme and it was successfully completed on 13
September 2024.
ESG
Update
In FY24, Origin advanced its ESG
agenda through ongoing portfolio diversification and a commitment
to the Science Based Targets initiative (SBTi), which was validated
in November 2023. Our approach aims to address climate challenges
and geopolitical shifts, promote biodiversity, sustainable land
practices, and innovation. By reducing emissions, protecting and
conserving resources, Origin seeks to enhance food security,
optimise sustainable land use, and promote inclusive
growth.
Corporate development
During the year, the Group
continued to strengthen its offering in the Living Landscapes
space. The Group acquired Groundtrax Systems Limited ('Groundtrax')
and the business and operating assets of Suregreen Limited
('Suregreen') from its administrators. Groundtrax is a leading
supplier of ground protection and sustainable urban drainage
systems and Suregreen is a UK based landscape and gardening
products supplier for trade professionals and DIY customers. The
Group also completed the Fortgreen put/call option which is the
final payment for the Latin America business within the Agriculture
segment.
Subsequent to year end, the Group
completed the acquisition of Avian Ecology
Limited ('Avian') and Bowland Ecology Limited ('Bowland'). Both
Avian and Bowland are specialist ecological consultancy businesses
in the UK.
Investor relations
Our strategy aims to create
long-term shareholder value and we support this strategy through
regular and open communication with all capital market
participants. Contact with institutional shareholders is the
responsibility of the executive management team including the Chief
Executive Officer, the Chief Financial Officer and the Head of
Investor Relations.
We engage with institutional
investors in numerous one-on-one meetings, as well as at roadshows
and equity conferences. During FY24, meetings were held with 145
institutional investors. Engagement was facilitated through a
combination of in-person meetings and remotely using virtual
conferences and video calls.
Annual General Meeting (AGM)
The AGM is scheduled to be held on
21 November 2024 at 11.00am (UK/Ireland time) in the Merrion Hotel,
Upper Merrion Street, Dublin 2.
1
|
Before amortisation of non-ERP intangible assets and
exceptional items
|
2
|
Profit after interest and tax before exceptional
items
|
3
|
Before amortisation of non-ERP intangible assets, net of
related deferred tax (2024: €10.4m, 2023: €11.0m) and exceptional
items, net of tax (2024: €4.3m, 2023:
€0.6m)
|
4
|
Group net cash/(bank debt) before impact of IFRS 16
Leases
|
Cautionary statement
This Preliminary Results Statement
contains forward looking statements. These statements have been
made by the Directors in good faith based on the information
available to them up to the time of the preparation of this
document. Due to the inherent uncertainties, including both
economic and business risk factors underlying such forward-looking
information, actual results may differ materially from those
expressed or implied by these forward-looking
statements.
The Directors undertake no
obligation to update any forward-looking statements contained in
this document, whether as a result of new information, future
events or otherwise.
Conference Call and Webcast details:
The management team will host a
live conference call and webcast, for analysts and institutional
investors today, 24 September 2024, at 08:30 (Irish/UK time).
Registration details for the Conference Call and Webcast can be
accessed at: www.originenterprises.com
Alternatively, please contact FTI
Consulting by email at originenterprises@fticonsulting.com
Participants are requested to dial
in 5 to 10 minutes prior to the scheduled start time.
Enquiries:
|
|
|
|
Origin Enterprises plc
|
|
Colm Purcell
|
|
Chief Financial Officer
|
Tel: +353 (0)1 563
4900
|
|
|
Brendan Corcoran
|
|
Head of Investor
Relations
|
Tel: +353 (0)1 563
4900
|
|
|
Goodbody (Euronext Growth (Dublin)
Adviser)
Joe Gill
|
Tel: +353 (0)1 641
9449
|
|
|
Davy (Nominated Adviser)
|
|
Anthony Farrell
|
Tel: +353 (0)1 614
9993
|
|
|
Berenberg (Corporate Broker)
|
|
Clayton Bush
|
Tel: +44 (0)20 3207 7800
|
|
|
FTI Consulting (Financial
Communications Advisers)
|
|
Jonathan Neilan / Patrick
Berkery
|
Tel: +353 (86) 602
5988
|
About Origin Enterprises plc
|
Origin Enterprises plc champions
sustainable land use through technically-led solutions, empowering
our customers to enrich their land so it can achieve its true
potential. The Group has leading market positions in Ireland,
the United
Kingdom, Brazil, Poland and Romania, and is
listed on the Euronext Growth Dublin market and the AIM market of
the London Stock Exchange.
|
Euronext Growth (Dublin) ticker
symbol:
OIZ
|
AIM ticker
symbol:
OGN
|
Website:
www.originenterprises.com
|
Review of
Operations
Group
Overview
|
FY24
Revenue
€'m
|
FY24
Operating
profit
€'m
|
FY24
Operating
margin
%
|
FY23
Revenue
€'m
|
FY23
Operating profit
€'m
|
FY23
Operating margin
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agriculture:
|
|
|
|
|
|
|
Ireland and the UK
|
1,208.6
|
39.0
|
3.2%
|
1,513.2
|
46.7
|
3.1%
|
Continental Europe
|
557.7
|
17.5
|
3.1%
|
696.3
|
17.3
|
2.5%
|
Latin America
|
130.1
|
15.1
|
11.6%
|
118.1
|
15.7
|
13.3%
|
Total
|
1,896.4
|
71.6
|
3.8%
|
2,327.6
|
79.7
|
3.4%
|
|
|
|
|
|
|
|
Living Landscapes
|
149.3
|
11.9
|
8.0%
|
128.6
|
11.1
|
8.6%
|
|
|
|
|
|
|
|
Group
|
2,045.7
|
83.5
|
4.1%
|
2,456.2
|
90.8
|
3.7%
|
1
|
Before amortisation of non-ERP
intangible assets and exceptional items
|
2
|
Excluding currency
movements
|
Agriculture
Agriculture delivered a robust
performance during the year despite the significant challenges of
adverse weather and commodity price movements. This challenging
operating environment resulted in a decrease in revenues and
operating profit of 18.5% and 10.1% respectively. Geographical
analysis is set out below:
Ireland and the
UK
|
|
|
|
Change
on the prior year
|
|
|
FY24
€'m
|
FY23
€'m
|
Change
%
|
Constant
Currency3
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
1,208.6
|
1,513.2
|
(20.1%)
|
(21.1%)
|
Operating
profit1
|
|
39.0
|
46.7
|
(16.6%)
|
(17.7%)
|
Operating
margin1
|
|
3.2%
|
3.1%
|
10bps
|
10bps
|
|
|
|
|
|
|
Associates and joint
venture2
|
|
6.4
|
4.0
|
58.9%
|
57.6%
|
1
|
Before amortisation of non-ERP
intangible assets and exceptional items
|
2
|
Profit after interest and tax before
exceptional items
|
3
|
Excluding currency
movements
|
Ireland and the UK delivered a
reduced operating profit contribution in FY24, primarily driven by
the UK market where sales of crop protection and other farm inputs
were impacted by adverse weather conditions. While revenues
declined by 20.1%, the impact on operating profit was somewhat
mitigated by operational efficiencies and cost control initiatives.
Overall operating margins increased from 3.1% to 3.2%.
Sustainable Agronomy
Our Sustainable Agronomy business
delivers agronomy services and sales of inputs direct to farmers,
predominantly in the UK. During the year, performance was impacted
by difficult weather and in-field conditions that saw an 8.5%
reduction in the overall planted area to 3.9 million hectares. This
resulted in curtailed investment by growers that directly impacted
our revenue and operating profit.
Soil Nutrition
Our Soil Nutrition business
largely encompasses the Ireland and UK business-to-business
fertiliser operations. Overall Soil Nutrition performance was in
line with expectations. The operating profit reduction, driven by
falling commodity markets, more than offset volume increases, with
volumes making some recovery from recent historical lows and
pricing now returning to more normalised levels.
Animal Nutrition
Origin's Feed Ingredients business
delivered a strong performance in FY24, benefitting from increased
demand given the challenging in-field conditions experienced on the
island of Ireland.
The Group's animal feed
manufacturing associate, John Thompson & Sons Limited, in which
the Group has a 50% shareholding, delivered a good
performance in the period.
Continental
Europe
|
|
|
|
Change
on prior year
|
|
|
FY24
€'m
|
FY23
€'m
|
Change
%
|
Constant
Currency2
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
557.7
|
696.3
|
(19.9%)
|
(22.3%)
|
Revenue (excl. crop
marketing)
|
|
378.2
|
464.6
|
(18.6%)
|
(20.0%)
|
Operating
profit1
|
|
17.5
|
17.3
|
1.3%
|
(0.4%)
|
Operating profit1 (excl.
crop marketing)
|
|
16.5
|
15.8
|
4.6%
|
3.2%
|
Operating
margin1
|
|
3.1%
|
2.5%
|
60bps
|
70bps
|
Operating margin1 (excl.
crop marketing)
|
|
4.4%
|
3.4%
|
100bps
|
100bps
|
1
|
Before amortisation of non-ERP
intangible assets and exceptional items
|
2
|
Excluding currency
movements
|
Continental Europe ('CE')
delivered a good performance in FY24, with operating profit of
€16.5 million, an increase of 4.6% on FY23. The Group completed the
closure of the Ukraine business in Q3 with no material impact to
Group operating profit.
Overall revenue, excluding crop
marketing, declined by 18.6% in the year which represents commodity
pricing reductions. Overall sales volumes increased by 7.9%, with
both geographies showing growth, and a favourable product mix
contributing to margin enhancement. Operating margin increased from
3.4% to 4.4% in the year.
Poland
Poland delivered a good
performance in FY24, supported by a cropping area in line with FY23
and higher disease pressure during the key application
windows.
The completion and commissioning
of the new FoliQ foliar fertiliser plant occurred during the year,
with a ramp-up of production now underway.
The harvest is now complete, with
average yields lower than FY23 due to dry conditions during the
season and reduced on-farm spend in some regions. Current farm
sentiment remains cautious due to commodity price volatility and
dry conditions in some areas.
Romania
Romania reported a solid
performance in FY24, with a planted area broadly in line with FY23,
however drought conditions did impact product demand in certain
regions and mix of product.
During the year we enhanced our
micro-pack facility with new bottling capabilities to meet growing
demand.
The harvest is largely complete,
with average yields below last year due to soil moisture deficits
in some areas. The reduced yields have impacted farm sentiment
negatively, with planting decisions for the FY25 season being
delayed in some areas while soil moisture deficits
remain.
Latin
America
|
|
|
|
Change
on prior period
|
|
|
FY24
€'m
|
FY23
€'m
|
Change
%
|
Constant
Currency2
%
|
|
|
|
|
|
|
Revenue
|
|
|
130.1
|
118.1
|
10.1%
|
11.7%
|
Operating
profit1
|
|
|
15.1
|
15.7
|
(3.3%)
|
(1.8%)
|
Operating
margin1
|
|
|
11.6%
|
13.3%
|
(170bps)
|
(160bps)
|
|
|
|
|
|
|
|
1
|
Before amortisation of non-ERP
intangible assets and exceptional items
|
2
|
Excluding currency
movements
|
Latin America delivered a solid
performance in FY24, ahead of expectations in a challenging macro
environment, with operating profit of €15.1
million.
There was an underlying increase
in volumes of 37.4% in the year. The sustained volume growth across
all product portfolios is driven by continued investment in the
sales organisation and operations infrastructure. The reduction in
operating margin reflects the impact of the deflationary
environment within Brazilian fertiliser markets versus a strong
comparative prior year, together with the mix effect of a greater
increase in CRF sales compared to speciality products.
The overall result was supported
by the total cropping area dedicated to soya, Brazil's principal
crop, increasing by 4.0% on the prior year to 45.4 million
hectares. However, the expected soya harvest is currently estimated
to be 148.5 million tonnes, down from the 154.6 million tonnes in
the prior year due to a hot and dry growing season. The total
production for Brazil's second corn crop, known as 'safrinha', is
forecasted to decrease by 9.4% to 119.5 million tonnes due to a
reduction in planted area, coupled with lower projected
yields.
Living
Landscapes
|
|
|
|
Change
on prior year
|
|
|
|
FY24
€'m
|
FY23
€'m
|
Change
%
|
Constant
Currency2
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
149.3
|
128.6
|
16.1%
|
14.7%
|
|
Operating
profit1
|
|
11.9
|
11.1
|
7.1%
|
5.8%
|
|
Operating
margin1
|
|
8.0%
|
8.6%
|
(60bps)
|
(70bps)
|
|
1
|
Before amortisation of non-ERP
intangible assets and exceptional items
|
2
|
Excluding currency
movements
|
|
|
|
|
|
|
|
|
Living Landscapes delivered a good
performance during the year, supported by the positive impact of
acquisitions over the current and prior year. This segment now
accounts for 14.2% of the Group's operating profit, up from 12.2%
last year, demonstrating the effectiveness of our strategy and its
contribution to a more diversified and resilient earnings
base.
During the year, the Group
completed two acquisitions, Groundtrax and Suregreen, for initial
consideration of €5.3 million. These acquisitions complement
Origin's growth strategy and extends our product range and service
offering in the Living Landscapes sector.
Sports
Our Sports businesses provide
agronomic advice, supporting technically-led retail sales of the
inputs required to help each playing or recreational space achieve
its true potential. Performance during the year was impacted by
prolonged wet conditions across the UK, which impacted application
windows for sports turf products.
Landscapes
Our Landscapes businesses provide
professional-grade landscaping, tree planting and forestry services
and products to developers, construction contractors, architects,
and custodians of land across all types of land development. The
division continues to benefit from ongoing investment within urban
greening and infrastructure projects.
Environmental
Our environmental businesses offer
ecological and environmental services to organisations involved in
land management, development, restoration, and conservation. We
continue to grow our footprint through ongoing
investment.
Subsequent to year end, the Group
completed two further bolt-on acquisitions in the environmental
space - Avian Ecology and Bowland Ecology. These specialist
consultancies further strengthen the Group's environmental services
and complement our Neo Environmental and Keystone Environmental
businesses.
ENDS
Origin Enterprises plc
Consolidated Income
Statement
For the financial year ended 31 July 2024
|
|
Pre-
|
|
|
|
|
|
Pre-
|
|
|
|
|
|
|
exceptional
|
|
Exceptional
|
|
Total
|
|
exceptional
|
|
Exceptional
|
|
Total
|
|
|
2024
|
|
2024
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
|
Notes
|
|
|
(Note 3)
|
|
|
|
|
|
(Note
3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
2
|
2,045,701
|
|
-
|
|
2,045,701
|
|
2,456,168
|
|
-
|
|
2,456,168
|
Cost of sales
|
|
(1,701,665)
|
|
-
|
|
(1,701,665)
|
|
(2,122,029)
|
|
-
|
|
(2,122,029)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
334,036
|
|
-
|
|
334,036
|
|
334,139
|
|
-
|
|
334,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs
|
|
(273,832)
|
|
(7,318)
|
|
(281,150)
|
|
(256,783)
|
|
(4,489)
|
|
(261,272)
|
Share of profit of associates and
joint venture
|
|
6,421
|
|
1,653
|
|
8,074
|
|
4,040
|
|
3,692
|
|
7,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
76,625
|
|
(5,665)
|
|
70,960
|
|
81,396
|
|
(797)
|
|
80,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income
|
|
3,386
|
|
-
|
|
3,386
|
|
2,080
|
|
-
|
|
2,080
|
Finance expense
|
|
(21,952)
|
|
-
|
|
(21,952)
|
|
(15,043)
|
|
-
|
|
(15,043)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax
|
|
58,059
|
|
(5,665)
|
|
52,394
|
|
68,433
|
|
(797)
|
|
67,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
(expense)/credit
|
|
(13,316)
|
|
1,350
|
|
(11,966)
|
|
(16,770)
|
|
166
|
|
(16,604)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
44,743
|
|
(4,315)
|
|
40,428
|
|
51,663
|
|
(631)
|
|
51,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share for the year
|
|
|
|
2024
|
|
|
|
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
4
|
|
|
|
36.73c
|
|
|
|
|
|
45.24c
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
4
|
|
|
|
35.21c
|
|
|
|
|
|
43.31c
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origin Enterprises plc
Consolidated Statement of
Comprehensive Income
For the financial year ended 31 July 2024
|
2024
|
|
2023
|
|
€'000
|
|
€'000
|
|
|
|
|
Profit for the year
|
40,428
|
|
51,032
|
|
|
|
|
Other comprehensive (expense) / income
|
|
|
|
|
|
|
|
Items that will not be reclassified subsequently to the
Consolidated Income Statement:
|
|
|
|
Group/Associate defined benefit pension
obligations
|
|
|
|
-remeasurements on Group's defined
benefit pension schemes
|
3,154
|
|
(6,103)
|
-deferred tax effect of
remeasurements
|
(836)
|
|
1,506
|
-share of remeasurements on
associate's defined benefit pension schemes
|
(79)
|
|
(53)
|
-share of deferred tax effect of
remeasurements - associates
|
20
|
|
13
|
|
|
|
|
Items that may be reclassified subsequently to the
Consolidated Income Statement:
|
|
|
|
Group foreign exchange translation details
|
|
|
|
-exchange difference on
translation of foreign operations
|
(12,089)
|
|
(1,580)
|
|
|
|
|
Group/Associate cash flow hedges
|
|
|
|
-effective portion of changes in
fair value of cash flow hedges
|
(3,608)
|
|
7,387
|
-fair value of cash flow hedges
transferred to operating costs and other income
|
(414)
|
|
(7,801)
|
-deferred tax effect of cash flow
hedges
|
250
|
|
394
|
-share of associates and joint
venture cash flow hedges
|
295
|
|
(1,960)
|
-deferred tax effect of share of
associates and joint venture cash flow hedges
|
(37)
|
|
245
|
|
|
|
|
|
|
|
|
Other comprehensive expense for the year, net of
tax
|
(12,804)
|
|
(7,952)
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year attributable to
equity shareholders
|
27,624
|
|
43,080
|
|
|
|
|
Origin Enterprises plc
Consolidated Statement of Financial
Position
As
at 31 July 2024
|
|
2024
|
|
2023
|
|
Notes
|
€'000
|
|
€'000
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
Property, plant and
equipment
|
5
|
132,665
|
|
118,107
|
Right-of-use-asset
|
|
59,834
|
|
54,037
|
Investment properties
|
|
2,270
|
|
2,270
|
Goodwill and intangible
assets
|
6
|
308,852
|
|
299,906
|
Investments in associates and
joint venture
|
7
|
44,484
|
|
52,387
|
Other financial assets
|
|
913
|
|
898
|
Deferred tax assets
|
|
6,866
|
|
8,737
|
Post employment benefit schemes
surplus
|
9
|
6,715
|
|
2,579
|
Derivative financial
instruments
|
|
2,760
|
|
6,960
|
|
|
|
|
|
Total non-current assets
|
|
565,359
|
|
545,881
|
|
|
|
|
|
Current assets
|
|
|
|
|
Assets classified as held for
sale
|
|
5,800
|
|
5,800
|
Inventory
|
|
228,132
|
|
232,167
|
Trade and other
receivables
|
|
477,851
|
|
440,398
|
Derivative financial
instruments
|
|
634
|
|
118
|
Cash and cash
equivalents
|
11
|
124,540
|
|
151,237
|
|
|
|
|
|
Total current assets
|
|
836,957
|
|
829,720
|
|
|
|
|
|
TOTAL ASSETS
|
|
1,402,316
|
|
1,375,601
|
|
|
|
|
|
Origin Enterprises plc
Consolidated Statement of Financial
Position (continued)
As
at 31 July 2024
|
|
2024
|
|
2023
|
|
Notes
|
€'000
|
|
€'000
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
Called up share capital presented
as equity
|
12
|
1,253
|
|
1,253
|
Share premium
|
|
160,526
|
|
160,526
|
Retained earnings and other
reserves
|
|
243,151
|
|
248,814
|
|
|
|
|
|
TOTAL EQUITY
|
|
404,930
|
|
410,593
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Interest bearing loans and
borrowings
|
11
|
196,225
|
|
96,964
|
Lease liabilities
|
|
47,184
|
|
42,835
|
Deferred tax
liabilities
|
|
21,732
|
|
20,720
|
Provisions for
liabilities
|
8
|
9,419
|
|
11,331
|
Derivative financial
instruments
|
|
538
|
|
25
|
|
|
|
|
|
Total non-current liabilities
|
|
275,098
|
|
171,875
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Interest bearing loans and
borrowings
|
11
|
1
|
|
1,098
|
Lease liabilities
|
|
14,348
|
|
12,081
|
Trade and other
payables
|
|
693,992
|
|
722,605
|
Corporation tax payable
|
|
6,538
|
|
11,937
|
Put option liability
|
|
-
|
|
32,382
|
Provisions for
liabilities
|
8
|
6,455
|
|
11,987
|
Derivative financial
instruments
|
|
954
|
|
1,043
|
|
|
|
|
|
Total current liabilities
|
|
722,288
|
|
793,133
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
997,386
|
|
965,008
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES
|
|
1,402,316
|
|
1,375,601
|
|
|
|
|
|
|
|
|
|
|
Origin Enterprises plc
Consolidated Statement of Changes in
Equity
For the financial year ended 31 July 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-
|
|
|
|
Foreign
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
Cash flow
|
|
|
|
based
|
|
|
|
currency
|
|
|
|
|
|
Share
|
|
Share
|
|
Treasury
|
|
redemption
|
|
hedge
|
|
Revaluation
|
|
payment
|
|
Re-organisation
|
|
translation
|
|
Retained
|
|
|
|
capital
|
|
Premium
|
|
shares
|
|
reserve
|
|
reserve
|
|
reserve
|
|
reserve
|
|
reserve
|
|
reserve
|
|
earnings
|
|
Total
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 August 2023
|
1,253
|
|
160,526
|
|
(51,689)
|
|
145
|
|
2,869
|
|
12,843
|
|
6,226
|
|
(196,884)
|
|
(45,328)
|
|
520,632
|
|
410,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
40,428
|
|
40,428
|
Other comprehensive
(expense)/income for the year
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,974)
|
|
-
|
|
-
|
|
-
|
|
(12,089)
|
|
2,259
|
|
(12,804)
|
Total comprehensive income / (expense) for the
year
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,974)
|
|
-
|
|
-
|
|
-
|
|
(12,089)
|
|
42,687
|
|
27,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based payment
charge
Share buyback
Re-issue of treasury
shares
|
-
-
-
|
|
-
-
-
|
|
-
(18,150)
2,270
|
|
-
-
-
|
|
-
-
-
|
|
-
-
-
|
|
2,439
-
-
|
|
-
-
-
|
|
-
-
-
|
|
-
-
(1,306)
|
|
2,439
(18,150)
964
|
Dividend paid to
shareholders
Transfer of share based payment
reserve
to retained earnings
|
-
-
|
|
-
-
|
|
-
-
|
|
-
-
|
|
-
-
|
|
-
-
|
|
-
(1,063)
|
|
-
-
|
|
-
-
|
|
(18,540)
1,063
|
|
(18,540)
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 July 2024
|
1,253
|
|
160,526
|
|
(67,569)
|
|
145
|
|
(105)
|
|
12,843
|
|
7,602
|
|
(196,884)
|
|
(57,417)
|
|
544,536
|
|
404,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origin Enterprises plc
Consolidated Statement of Cash
Flows
For the financial year ended 31 July 2024
|
2024
|
|
2023
|
|
€'000
|
|
€'000
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
Profit before tax
|
52,394
|
|
67,636
|
Exceptional items
|
5,665
|
|
797
|
Finance income
|
(3,386)
|
|
(2,080)
|
Finance expense
|
21,952
|
|
15,043
|
Loss on disposal of property,
plant and equipment
|
(79)
|
|
718
|
Share of profit of associates and
joint venture
|
(6,421)
|
|
(4,040)
|
Depreciation of property, plant
and equipment
|
8,822
|
|
8,678
|
Depreciation of right of use
assets
|
14,320
|
|
12,810
|
Amortisation of intangible
assets
|
15,002
|
|
14,218
|
Employee share-based payment
charge
|
2,439
|
|
2,550
|
Pension contributions in excess of
service costs and administration costs
|
(803)
|
|
(834)
|
Settlement of non-trade related
item
|
(7,205)
|
|
-
|
Payment of exceptional Ukraine
related costs
|
(4,043)
|
|
(1,918)
|
Payment of exceptional acquisition
and disposal related costs
|
(4,669)
|
|
(1,537)
|
|
|
|
|
|
|
|
|
Operating cash flow before changes in working
capital
|
93,998
|
|
112,041
|
|
|
|
|
Movement in inventory
|
3,809
|
|
146,884
|
Movement in trade and other
receivables
|
(40,449)
|
|
19,845
|
Movement in trade and other
payables
|
(26,249)
|
|
(122,835)
|
|
|
|
|
|
|
|
|
Cash generated from operating activities
|
31,099
|
|
155,935
|
|
|
|
|
Interest paid
|
(14,466)
|
|
(11,526)
|
Income tax paid
|
(16,064)
|
|
(19,631)
|
|
|
|
|
|
|
|
|
Cash inflow from operating activities
|
569
|
|
124,778
|
|
|
|
|
Origin Enterprises plc
Consolidated Statement of Cash
Flows (continued)
For the financial year ended 31 July 2024
|
2024
|
|
2023
|
|
€'000
|
|
€'000
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
Proceeds from sale of property,
plant and equipment
|
924
|
|
235
|
Purchase of property, plant and
equipment
|
(23,542)
|
|
(18,567)
|
Additions to intangible
assets
|
(19,831)
|
|
(17,683)
|
Consideration relating to
acquisitions (net of cash acquired)
|
(5,302)
|
|
(30,112)
|
Payment of contingent acquisition
consideration
|
(8,084)
|
|
(115)
|
Net proceeds from disposal of
subsidiary
|
-
|
|
705
|
Purchase of other financial
assets
|
-
|
|
(345)
|
Payment of put option
liability
|
(30,912)
|
|
-
|
Dividends received from
associates
|
16,596
|
|
144
|
|
|
|
|
|
|
|
|
Cash outflow from investing activities
|
(70,151)
|
|
(65,738)
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
Drawdown of bank loans
|
423,226
|
|
334,599
|
Repayment of bank loans
|
(325,966)
|
|
(369,244)
|
Lease liability
payments
|
(15,955)
|
|
(14,810)
|
Share buyback
|
(18,150)
|
|
(20,000)
|
Issue of share capital
|
-
|
|
5
|
Proceeds from re-issue of treasury
shares
|
1,608
|
|
1,654
|
Payment of dividends to equity
shareholders
|
(18,540)
|
|
(17,990)
|
|
|
|
|
|
|
|
|
Cash inflow / (outflow) from financing
activities
|
46,223
|
|
(85,786)
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash
equivalents
|
(23,359)
|
|
(26,746)
|
Translation adjustment
|
(2,241)
|
|
515
|
Cash and cash equivalents at start
of year
|
150,139
|
|
176,370
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of year (Note
11)
|
124,539
|
|
150,139
|
|
|
|
|
|
|
|
|
Origin Enterprises plc
Notes to the preliminary results
statement
For the financial year ended 31 July 2024
1 Basis of
preparation
The financial information included
on pages 12 to 32 of this preliminary results statement has been
extracted from the Group financial statements for the year ended 31
July 2024 on which the auditor has issued an unqualified audit
opinion.
The financial information has been
prepared in accordance with the accounting policies set out in the
Group's consolidated financial statements for the year ended 31
July 2024, which were prepared in accordance with International
Financial Reporting Standards as adopted by the EU.
The consolidated financial
information is presented in Euro, rounded to the nearest thousand,
which is the functional currency of the parent.
2 Segment
information
IFRS 8, 'Operating Segments',
requires operating segments to be identified on the basis of
internal reports that are regularly reviewed by the Chief Operating
Decision Maker ('CODM') in order to allocate resources to the
segments and to assess their performance.
The Group performed a review of
operating segments during the year. Given the recent acquisitions
in the Ecology and Environmental sector and the Group's strategic
objective to expand further into this sector, the Group has
determined there are two operating segments as follows:
Agriculture
This segment includes the Group's
wholly owned Business-to-Business Agri-Inputs operations,
Integrated Agronomy and On-Farm Services operations in Ireland, the
United Kingdom, Poland, Romania, and Brazil. In addition, this
segment includes the Group's associate and joint venture
undertakings.
Living Landscapes
This segment includes the Group's
wholly owned Amenity, Environmental and Ecology operations,
providing a range of consultancy, inputs and technical solutions in
sports turf management, landscaping, and environmental
conservation.
Prior year comparative information
has been presented on a consistent basis to reflect the changes in
our reporting segments.
Information regarding the results
of each reportable segment is included below. Performance is
measured based on segment operating profit as included in the
internal management reports that are reviewed by the Group's CODM,
being the Origin Executive Directors. Segment operating profit is
used to measure performance, as this information is the most
relevant in evaluating the results of the Group's
segments.
Segment results, assets and
liabilities include all items directly attributable to a
segment.
Segment capital expenditure is the
total amount incurred during the period to acquire segment assets
that are expected to be used for more than one accounting
period.
Origin Enterprises plc
Notes to the preliminary results
statement (continued)
For the
financial year ended 31 July 2024
2
Segment information (continued)
(i) Segment revenue and results
|
|
Agriculture
|
|
Living
Landscapes
|
|
Total
Group
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Ireland & UK
|
|
1,208,575
|
|
1,513,176
|
|
149,288
|
|
128,588
|
|
1,357,863
|
|
1,641,764
|
Continental Europe
|
|
557,742
|
|
696,268
|
|
-
|
|
-
|
|
557,742
|
|
696,268
|
Latin America
|
|
130,096
|
|
118,136
|
|
-
|
|
-
|
|
130,096
|
|
118,136
|
Total
|
|
1,896,413
|
|
2,327,580
|
|
149,288
|
|
128,588
|
|
2,045,701
|
|
2,456,168
|
Segment Result
|
|
|
|
|
|
|
|
|
|
|
|
|
Ireland & UK
|
|
38,957
|
|
46,736
|
|
11,898
|
|
11,105
|
|
50,855
|
|
57,841
|
Continental Europe
|
|
17,523
|
|
17,297
|
|
-
|
|
-
|
|
17,523
|
|
17,297
|
Latin America
|
|
15,138
|
|
15,653
|
|
-
|
|
-
|
|
15,138
|
|
15,653
|
Total
|
|
71,618
|
|
79,686
|
|
11,898
|
|
11,105
|
|
83,516
|
|
90,791
|
Profit from associate & joint
venture
|
|
6,421
|
|
4,040
|
|
-
|
|
-
|
|
6,421
|
|
4,040
|
Amortisation of non-ERP intangible
assets
|
|
(10,603)
|
|
(11,500)
|
|
(2,709)
|
|
(1,935)
|
|
(13,312)
|
|
(13,435)
|
Operating profit before exceptional items
|
|
67,436
|
|
72,226
|
|
9,189
|
|
9,170
|
|
76,625
|
|
81,396
|
Exceptional items
|
|
(7,528)
|
|
524
|
|
1,863
|
|
(1,321)
|
|
(5,665)
|
|
(797)
|
Operating profit
|
|
59,908
|
|
72,750
|
|
11,052
|
|
7,849
|
|
70,960
|
|
80,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origin Enterprises plc
Notes to the preliminary results
statement (continued)
For the financial year ended 31 July 2024
2 Segment information
(continued)
(ii) Segment earnings before financing costs and tax is
reconciled to reported profit before tax and profit after tax as
follows:
|
2024
|
|
2023
|
|
€'000
|
|
€'000
|
|
|
|
|
Segment earnings before financing
costs and tax
|
70,960
|
|
80,599
|
|
|
|
|
Finance income
|
3,386
|
|
2,080
|
Finance expense
|
(21,952)
|
|
(15,043)
|
|
|
|
|
|
|
|
|
Reported profit before tax
|
52,394
|
|
67,636
|
|
|
|
|
Income tax expense
|
(11,966)
|
|
(16,604)
|
|
|
|
|
|
|
|
|
Reported profit after
tax
|
40,428
|
|
51,032
|
|
|
|
|
3 Exceptional
items
Exceptional items are those that,
in management's judgement, should be separately presented and
disclosed by virtue of their nature or amount. Such items are
included within the Consolidated Income Statement caption to which
they relate. The following exceptional items arose during the
year:
|
2024
|
|
2023
|
|
€'000
|
|
€'000
|
Ukraine related costs
(i)
|
4,755
|
|
2,226
|
Acquisition, disposal and other
related (credit) / costs (ii)
|
(1,951)
|
|
2,263
|
Redundancy & restructuring
costs (iii)
|
4,514
|
|
-
|
|
|
|
|
Exceptional costs before tax and before associates and joint
venture
|
7,318
|
|
4,489
|
Tax credit on exceptional
items
|
(1,350)
|
|
(166)
|
Exceptional costs before associates and joint
venture
|
5,968
|
|
4,323
|
Arising in associates and joint
venture, net of tax (iv)
|
(1,653)
|
|
(3,692)
|
Total exceptional costs after tax
|
4,315
|
|
631
|
|
|
|
|
Origin Enterprises plc
Notes to the preliminary results
statement (continued)
For the financial year ended 31 July 2024
3 Exceptional items
(continued)
(i) Ukraine related
costs
Ukraine related costs comprise of
rationalisation costs attributable to termination payments from
restructuring programmes in Ukraine along with costs associated
with international sanctions imposed by authorities in response to
the Russian invasion of Ukraine. The tax impact of this exceptional
item in the year was a tax credit of €0.4 million.
(ii) Acquisition, disposal and
other related costs / (credit)
Acquisition, disposal and other
related costs principally comprised of transaction costs incurred
in relation to the acquisitions completed during the current year,
offset by a credit for excess deferred consideration. The tax
impact of this exceptional item in the current year was a charge of
€nil.
(iii) Redundancy &
restructuring costs
Redundancy & restructuring
costs relate to termination payments from restructuring programmes
across the Group. The tax impact of this exceptional item in the
current year was a tax credit of €1.0 million.
(iv) Arising in associates and
joint venture
During 2021 the R&H Hall
storage facility in Ringaskiddy suffered fire damage. A credit of
€1.0 million represents the excess of the insurance claim proceeds
over the net book value of the assets destroyed and other
restructuring costs incurred. Also included is a credit of €0.7
million related to an exceptional gain on disposal of property. The
tax impact of these exceptional items in the current year was a tax
charge of €0.7 million.
Origin Enterprises plc
Notes to the preliminary results
statement (continued)
For the financial year ended 31 July 2024
4 Earnings per
share
Basic earnings per share
|
2024
|
|
2023
|
|
€'000
|
|
€'000
|
|
|
|
|
Profit for the year attributable to equity
shareholders
|
40,428
|
|
51,032
|
|
|
|
|
|
'000
|
|
'000
|
Weighted average number of ordinary shares for
the year
|
110,068
|
|
112,791
|
|
|
|
|
|
Cent
|
|
Cent
|
|
|
|
|
Basic earnings per
share
|
36.73
|
|
45.24
|
Diluted earnings per share
|
2024
|
|
2023
|
|
€'000
|
|
€'000
|
|
|
|
|
Profit for the year attributable to equity
shareholders
|
40,428
|
|
51,032
|
|
|
|
|
|
'000
|
|
'000
|
|
|
|
|
Weighted average
number of ordinary shares used in basic calculation
|
110,068
|
|
112,791
|
Impact of shares
with a dilutive effect
|
3,927
|
|
2,671
|
Impact of the SAYE
scheme
|
832
|
|
2,379
|
Weighted average number of ordinary shares
(diluted) for the year
|
114,827
|
|
117,841
|
|
|
|
|
|
Cent
|
|
Cent
|
|
|
|
|
Diluted earnings
per share
|
35.21
|
|
43.31
|
Origin Enterprises plc
Notes to the preliminary results
statement (continued)
For the financial year ended 31 July 2024
4 Earnings per share
(continued)
|
2024
|
|
2023
|
|
'000
|
|
'000
|
Adjusted basic
earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares for the year
|
110,068
|
|
112,791
|
|
2024
|
|
2023
|
|
€'000
|
|
€'000
|
|
|
|
|
Profit for the
year
|
40,428
|
|
51,032
|
|
|
|
|
Adjustments:
|
|
|
|
Amortisation of
non-ERP related intangible assets (Note 6)
|
13,312
|
|
13,435
|
Tax on
amortisation of non-ERP related intangible assets
|
(2,864)
|
|
(2,460)
|
Exceptional items,
net of tax
|
4,315
|
|
631
|
Adjusted profit for the year
|
55,191
|
|
62,638
|
|
|
|
|
|
Cent
|
|
Cent
|
|
|
|
|
Adjusted basic earnings per
share
|
50.14
|
|
55.53
|
Adjusted diluted
earnings per share
|
2024
|
|
2023
|
|
'000
|
|
'000
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in basic calculation
|
110,068
|
|
112,791
|
Impact of shares
with a dilutive effect
|
3,927
|
|
2,671
|
Impact of the SAYE
scheme
|
832
|
|
2,379
|
Weighted average
number of ordinary shares (diluted) for the year
|
114,827
|
|
117,841
|
|
2024
|
|
2023
|
|
€'000
|
|
€'000
|
|
|
|
|
Adjusted profit for the year (as
above)
|
55,191
|
|
62,638
|
|
|
|
|
|
Cent
|
|
Cent
|
|
|
|
|
Adjusted diluted earnings per
share
|
48.06
|
|
53.16
|
Origin Enterprises plc
Notes to the preliminary results
statement (continued)
For the financial year ended 31 July 2024
5 Property, plant and
equipment
|
2024
|
|
2023
|
|
€'000
|
|
€'000
|
|
|
|
|
At 1 August
|
118,107
|
|
107,906
|
Arising on acquisition (Note
10)
|
799
|
|
1,459
|
Additions
|
23,519
|
|
18,891
|
Disposals
|
(812)
|
|
(1,014)
|
Depreciation charge for the
year
|
(8,822)
|
|
(8,678)
|
Translation adjustments
|
(126)
|
|
(457)
|
At 31 July
|
132,665
|
|
118,107
|
|
|
|
|
6 Goodwill and intangible
assets
|
2024
|
|
2023
|
|
€'000
|
|
€'000
|
|
|
|
|
At 1 August
|
299,906
|
|
251,999
|
Arising on acquisition (Note
10)
|
7,165
|
|
46,650
|
Additions
Disposals
|
19,835
(20)
|
|
17,683
(886)
|
Purchase adjustment
|
-
|
|
(58)
|
Amortisation of non-ERP intangible
assets
|
(13,312)
|
|
(13,435)
|
ERP intangible
amortisation
|
(1,690)
|
|
(783)
|
Translation adjustments
|
(3,032)
|
|
(1,264)
|
At 31 July
|
308,852
|
|
299,906
|
|
|
|
|
Origin Enterprises plc
Notes to the preliminary results
statement (continued)
For the financial year ended 31 July 2024
7 Investments in associates and joint
venture
|
2024
|
|
2023
|
|
€'000
|
|
€'000
|
|
|
|
|
At 1
August
|
52,387
|
|
47,053
|
Share of profits
after tax, before exceptional items
|
6,421
|
|
4,040
|
Share of exceptional
items, net of tax (Note 3)
|
1,653
|
|
3,692
|
Dividends
received
|
(16,596)
|
|
(144)
|
Share of other
comprehensive income / (expense)
|
199
|
|
(1,755)
|
Translation
adjustments
|
420
|
|
(499)
|
At 31 July
|
44,484
|
|
52,387
|
Split as
follows:
|
|
|
|
Total associates
|
25,359
|
|
27,219
|
Total joint venture
|
19,125
|
|
25,168
|
|
44,484
|
|
52,387
|
|
|
|
|
8 Provisions for
liabilities
The
estimate of provisions is a key judgement in the preparation of the
financial statements.
|
2024
€'000
|
|
2023
€'000
|
|
|
|
|
At 1 August
Arising on acquisition (Note
10)
|
23,318
2,001
|
|
5,612
15,199
|
Provided in year
|
2,458
|
|
2,738
|
Paid / utilised in year
|
(9,385)
|
|
(115)
|
Released in the year
|
(2,703)
|
|
(290)
|
Translation adjustments
|
185
|
|
174
|
At 31 July
|
15,874
|
|
23,318
|
Split as
follows:
|
|
|
|
Current liabilities
|
6,455
|
|
11,987
|
Non-current liabilities
|
9,419
|
|
11,331
|
|
15,874
|
|
23,318
|
|
|
|
|
Provisions primarily relate to
contingent acquisition consideration arising on a number of
acquisitions completed during the current and prior
years.
Origin Enterprises plc
Notes to the preliminary results
statement (continued)
For the financial year ended 31 July 2024
9 Post employment benefit
obligations
The Group operates a number of
defined benefit pension schemes and defined contribution schemes
with assets held in separate trustee administered funds. All of the
defined benefit schemes are closed to new members.
The valuations of the defined
benefit schemes used for the purposes of the following disclosures
are those of the most recent actuarial valuations carried out at 31
July 2024 by an independent, qualified actuary. The
valuations have been performed using the projected unit
method.
Movement in net asset recognised in the Consolidated
Statement of Financial Position
|
|
2024
|
|
2023
|
|
|
€'000
|
|
€'000
|
|
|
|
|
|
|
At 1 August
|
2,579
|
|
7,767
|
|
Current service cost
|
(150)
|
|
(414)
|
|
Administrative expenses paid from
plan assets
|
(246)
|
|
-
|
|
Employer contributions
|
1,199
|
|
1,248
|
|
Other finance income
|
124
|
|
255
|
|
Remeasurements
|
3,154
|
|
(6,103)
|
|
Translation adjustments
|
55
|
|
(174)
|
|
|
|
|
|
|
At 31 July
|
6,715
|
|
2,579
|
|
|
|
|
|
10 Acquisition of subsidiary
undertakings
On 25 August 2023, the Group
acquired the business and operating assets of Suregreen Limited, a
UK based landscape and gardening products supplier for trade
professionals and DIY customers from its administrators.
On 1 February 2024, the Group
acquired 100% of the share capital of Groundtrax Systems Limited in
the UK, a leading specialist supplier of ground protection and
reinforcement systems.
Origin Enterprises plc
Notes to the preliminary results
statement (continued)
For the financial year ended 31 July 2024
10 Acquisition of
subsidiary undertakings - continued
|
|
Fair
|
|
|
value
|
|
|
€'000
|
Assets
|
|
|
Non-current
|
|
|
Property, plant &
equipment
|
|
799
|
Right of use leased
assets
|
|
199
|
Intangible assets
|
|
719
|
Total non-current assets
|
|
1,717
|
|
|
|
Current assets
|
|
|
Inventory
|
|
691
|
Trade and other
receivables
|
|
565
|
Cash and cash
equivalents
|
|
3,360
|
Total current assets
|
|
4,616
|
|
|
|
Liabilities
|
|
|
Trade and other payables
|
|
(1,581)
|
Lease Liabilities
|
|
(199)
|
Corporation tax
|
|
(197)
|
Deferred tax liability
|
|
(139)
|
Total liabilities
|
|
(2,116)
|
|
|
|
Total identifiable net assets at fair value
|
|
4,217
|
|
|
|
Goodwill arising on
acquisition
|
|
6,446
|
Total net assets acquired
|
|
10,663
|
|
|
|
Consideration satisfied by:
|
|
|
|
|
|
Cash consideration
|
|
8,662
|
Contingent consideration arising
from acquisition
|
|
2,001
|
Total consideration related to acquisitions
|
|
10,663
|
|
|
|
Net cash outflow - arising on acquisitions
|
|
|
Cash consideration
|
|
8,662
|
Less cash and cash equivalents
acquired
|
|
(3,360)
|
Total consideration related to acquisitions
|
|
5,302
|
|
|
|
Details of the net assets acquired and goodwill arising from
the business combinations are as follows:
(i) Trade Receivables
acquired were €0.6 million. All amounts deemed
recoverable.
Origin Enterprises plc
Notes to the preliminary results
statement (continued)
For the financial year ended 31 July 2024
11 Analysis of net cash / (debt)
|
|
2023
|
|
Cash flow
|
|
Non-cash
movements
|
|
Translation
adjustments
|
|
2024
|
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
|
€'000
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
151,237
|
|
(24,426)
|
|
-
|
|
(2,271)
|
|
124,540
|
|
Overdrafts
|
(1,098)
|
|
1,067
|
|
-
|
|
30
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
150,139
|
|
(23,359)
|
|
-
|
|
(2,241)
|
|
124,539
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
(96,964)
|
|
(97,260)
|
|
(534)
|
|
(1,467)
|
|
(196,225)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash / (debt)
|
53,175
|
|
(120,619)
|
|
(534)
|
|
(3,708)
|
|
(71,686)
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease liabilities
|
(54,916)
|
|
15,955
|
|
(21,867)
|
|
(704)
|
|
(61,532)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt including
lease liabilities
|
(1,741)
|
|
(104,664)
|
|
(22,401)
|
|
(4,412)
|
|
(133,218)
|
|
|
|
|
|
|
|
|
|
|
|
Origin Enterprises plc
Notes to the preliminary results
statement (continued)
For the financial year ended 31 July 2024
12 Share capital
|
2024
|
|
2023
|
|
€'000
|
|
€'000
|
Authorised
|
|
|
|
250,000,000
ordinary shares of €0.01 each (i)
|
2,500
|
|
2,500
|
|
|
|
|
Allotted, called up and fully
paid
|
|
|
|
125,320,375 (2023: 125,320,375) ordinary shares
of €0.01 each (i) (ii)
|
1,253
|
|
1,253
|
|
|
|
|
|
|
|
|
|
|
|
Number of treasury
shares
|
|
Nominal value of
shares
|
|
Carrying value of
shares
|
|
|
|
€'000
|
|
€'000
|
Treasury shares in issue
|
|
|
|
|
|
At 1 August
2023
|
13,558,484
|
|
135
|
|
51,689
|
Share buyback
(ii)
|
5,759,134
|
|
58
|
|
18,150
|
Re-issue of
treasury shares (iii)
|
(627,983)
|
|
(6)
|
|
(2,270)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,689,635
|
|
187
|
|
67,569
|
|
|
|
|
|
|
(i) Ordinary
shareholders are entitled to dividends as declared and each
ordinary share carries equal voting rights at meetings of the
Company.
(ii) During the
financial year, the Group commenced a share buyback programme. The
total number of ordinary shares purchased by the Group was
5,759,134 for a total consideration before expenses of €18.2
million. The re-purchased shares are held as treasury
shares.
(iii) During the
financial year, the Group re-issued 627,983 treasury shares to
satisfy the exercise of share options granted under the Company's
Long-Term Incentive Plan (2015) and the exercise of share options
granted under the Group's UK ad ROI Savings Related Share Option
Scheme.
Origin Enterprises plc
Notes to the preliminary results
statement (continued)
For the financial year ended 31 July 2024
13
Return on capital employed
Return on capital employed is a
key performance indicator for the Group and represents Group
earnings before interest, tax and amortisation of non-ERP related
intangible assets taken as a percentage of Group net assets and is
consistent with the definition approved as part of the 2015 Long
Term Incentive Plan.
|
|
2024
€'000
|
|
2023
€'000
|
|
|
|
|
|
Total assets
|
|
1,402,316
|
|
1,375,601
|
Total liabilities
|
|
(997,386)
|
|
(965,008)
|
Adjusted for:
|
|
|
|
|
Net debt
|
|
133,218
|
|
1,741
|
Tax, put option and derivative
financial instruments, net
|
|
19,419
|
|
50,292
|
Accumulated amortisation of
non-ERP related intangible assets
|
|
96,590
|
|
84,557
|
Capital employed
|
|
654,157
|
|
547,183
|
Average capital employed
|
|
800,653
|
|
754,287
|
|
|
|
|
|
Operating profit (excluding
exceptional items)
|
|
70,204
|
|
77,356
|
Amortisation of non-ERP intangible
assets
|
|
13,312
|
|
13,435
|
Share of profit of associates and
joint venture
|
|
6,421
|
|
4,040
|
Return
|
|
89,937
|
|
94,831
|
|
|
|
|
|
Return on capital employed
|
|
11.2%
|
|
12.6%
|
In years where the Group makes
significant acquisitions or disposals, the return on invested
capital calculation is adjusted accordingly to ensure that the
impact of the acquisition or disposal is time apportioned
appropriately.
14 Related party
transactions
Related party transactions
occurring in the year were similar in nature to those described in
the 2023 Annual Report.
15 Dividend
The
Directors are proposing a final dividend of 13.65 cent per ordinary
share for approval at the AGM in November 2024, bringing the
total dividend payment to 16.80 cent. Subject to shareholder
approval at the AGM, this final dividend will be paid on 14
February 2025 to shareholders on the register on 24 January
2025.
Origin Enterprises plc
Notes to the preliminary results
statement (continued)
For the financial year ended 31 July 2024
16 Subsequent
events
In September 2024, the Group announced the acquisition of
Avian Ecology, a company providing a broad range of services,
particularly specialising in the areas of ornithology and renewable
energy issues.
In addition, the
Group also announced the acquisition Bowland Ecology, specialising
in terrestrial and freshwater ecology, delivering a full range of
ecological technical solutions.
There have been no
other material events subsequent to 31 July 2024 that would require
adjustment to or disclosure in this report.