TIDMNSH
RNS Number : 0337N
Norish PLC
20 September 2019
Norish plc
Interim results 2019
Results
Norish plc (AIM: NSH), is pleased to announce its interim
results for the six months ended 30 June 2019.
Financial Highlights
-- Operating profit ahead by 37%, from GBP1.0m to GBP1.4m.
-- Profit before tax ahead by 43%, from GBP0.9m to GBP1.3m
-- Fully diluted adjusted EPS ahead by 41%, year on year, from 2.2p to 3.1p
-- Net debt after IFRS 16 adjustments reduced from Stg GBP10.1m
at Dec-18 to Stg GBP9.6m at Jun-19. (Pre-IFRS 16 it reduced from
GBP4.9m to GBP4.7m).
Divisional Highlights
GBP'm Cold Store Sourcing Dairy
Jun-19 Jun-18 % Growth Jun-19 Jun-18 % Growth Jun-19 Jun-18 % Growth
------- ------- --------- ------- ------- --------- ------- ------- ---------
Revenue 7.3 6.7 10.4% 9.8 11.6 (15.5%) 0.4 0.2 100%
------- ------- --------- ------- ------- --------- ------- ------- ---------
Operating
Profit 1.6 1.3 23% 0.2 0.3 (33.3%) (0.1) (0.2) 50%
------- ------- --------- ------- ------- --------- ------- ------- ---------
Operating
Margin 21.6% 17.9% 2.0% 2.6% (25%) (100%)
------- ------- --------- ------- ------- --------- ------- ------- ---------
Cold Store division
Cold Stores are our largest business activity, accounting for
circa 75% of the non-current assets in the business. Sales in cold
stores increased by 9% or GBP0.6m, from GBP6.7m to GBP7.3m. This
growth in revenue, combined with tight cost control, saw divisional
profits grow by 23% or GBP0.3m.
The drivers of the growth in revenue, which was predominantly
North West based, comprised a 13% increase in pallets handled, a
13% increase in blast frozen throughput, an improved stock turn
(from 7.0 weeks to 6.6 weeks) and a slightly higher occupancy
level. Occupancy increased from 93% in the first half of 2018, to
95% in the first half of 2019.
Labour and energy, our two largest costs were up 2%, year on
year. Power units consumed were lower by 2%, a creditable
performance in the context of 13% growth in blast freezing
volumes.
Operating margins expanded from 17.9% to 21.6%, year on
year.
Sourcing Division
Sales at our sourcing division declined by 15.5% in the first
half of 2019, compared with the same period in 2018, from GBP11.4m
to GBP9.8m. Operating profit declined by a corresponding 33.3%,
year on year, from GBP0.3m to GBP0.2m, reflecting trading
uncertainty and currency fluctuations arising from the ongoing
Brexit process.
Dairy Division
In our dairy business, we continue to make progress.
At Cantwellscourt Farm, milk production was 68% ahead year on
year, reflecting a very good grass growing period, improved
management, increased stock numbers and a maturing herd. Our
partnership with Captal Farms has resulted in a more robust
operating model with sourcing economies, benchmarking with other
Captal Farms across key KPIs and support from a highly skilled
operations team.
Our subsidiary, Grass to Milk Company, is developing an
A2-protein milk supply and combining this with novel dairy
processing IP, to develop an early-life stage milk-based beverage
targeting high-value export markets. Grass to Milk Company is
targeting commercial production in the second half of 2020.
Discontinued
During the period the group decided to exit the Juice business
for the ready to drinks market. A loss of GBPNil was incurred,
compared to GBP0.3m last year.
Outlook
Our cold store business continues to focus on improved revenue
generation (in particular sales mix) by working collaboratively
with customers, in the context of the resources available to the
business. We continue to pursue initiatives to offset underlying
cost growth pressures. In a general sense, the Temperature
Controlled market appears to be operating close to capacity, as we
head into the important final months of the year.
We expect to make further progress in our cold store business
over the remainder of the year and beyond.
Within the sourcing division we have recently added fish to our
protein supply and are implementing other initiatives to return to
a growth trajectory.
With respect to the dairy division, it has been a very good year
for grass production and this together with renewed focus on cost
control should see the farm generate a much-improved result.
Next year should see an opportunity to further increase stock
numbers and transition to an A2 protein dairy herd. We expect Grass
to Milk Company to achieve commercial sales in the second half of
2020; a major milestone in the development of this niche, value-add
dairy business.
Dividend
The board does not recommend the payment of an interim dividend,
unchanged from last year.
The final dividend of 1.80 EURcent per share announced earlier
in the year will be paid on 18 October 2019 to those shareholders
on the register on the 27 September 2019.
Norish plc
Consolidated income statement
For the six months ended 30 June
2019
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2019 2018 2018
(Unaudited) (Restated) (Restated)
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 17,512 18,454 36,802
Cost of sales (15,775) (17,054) (33,658)
Gross profit 1,737 1,400 3,144
Other income 70 24 43
Administrative expenses (381) (383) (851)
------------- ---------------- ----------- ---------------
Operating profit from continuing
operations 1,426 1,041 2,336
------------- ---------------- ----------- ---------------
Finance income - interest receivable - - 3
Finance expenses - interest paid (167) (163) (363)
Profit on continuing activities before
taxation 1,259 878 1,976
Income taxes - Corporation tax (311) (216) (393)
Income taxes - Deferred tax - - (46)
Profit for the period attributable
to owners of the parent from continuing
operations 948 662 1,537
Loss from discontinued activities (16) (289) (379)
------------- ---------------- ----------- ---------------
Profit for the period 932 373 1,158
------------- ---------------- ----------- ---------------
Other comprehensive income - - -
Total comprehensive income for the
year 932 373 1,158
------------- ---------------- ----------- ---------------
Profit for the period attributable
to owners of parent 932 373 1,158
Loss for the financial year attributable
to non-controlling interest - - -
------------- ---------------- ----------- ---------------
Earnings per share expressed in pence
per share:
From continuing operations
- basic 3.1p 2.2p 5.1p
- diluted 3.1p 2.2p 5.1p
From discontinued operations
- basic 0p (1.0)p (1.3)p
- diluted 0p (1.0)p (1.3)p
Norish plc
Interim balance sheet
As at 30 June 2019
As at As at As at
30 June 30 June 31 December
2019 2018 2018
(Unaudited) (Restated) (Restated)
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Goodwill 2,338 2,338 2,338
Intangible assets 332 54 166
Biological assets 674 658 639
Property, plant and equipment 22,644 21,559 22,871
25,988 24,609 26,014
---------------- --------------------- ---------------
Current assets
Trade and other receivables 6,230 6,721 6,250
Inventories 993 480 624
Cash and cash equivalents 973 1,167 1,543
Assets of disposal group classified
as held for sale 284 363 324
8,480 8,731 8,741
---------------- --------------------- ---------------
TOTAL ASSETS 34,468 33,340 34,755
---------------- --------------------- ---------------
Equity attributable to equity
holders of the parent
And non-controlling interest
Share capital 5,640 5,640 5,640
Share premium account 7,321 7,321 7,321
Other reserves 103 103 103
Treasury shares (563) (563) (563)
Retained earnings 4,682 3,374 3,719
---------------- --------------------- ---------------
TOTAL EQUITY 17,183 15,875 16,220
---------------- --------------------- ---------------
Non-current liabilities
Borrowings 6,119 5,673 6,222
Deferred tax 999 953 999
---------------- --------------------- ---------------
7,118 6,626 7,221
---------------- --------------------- ---------------
Current liabilities
Trade and other payables 4,993 5,699 5,446
Current tax liabilities 747 583 390
Borrowings 4,427 4,494 5,433
Liabilities of disposal group
classified as held for sale - 63 15
10,167 10,839 11,284
---------------- --------------------- ---------------
TOTAL EQUITY AND LIABILITIES 34,468 33,340 34,755
---------------- --------------------- ---------------
Norish plc
Consolidated statement of changes in equity
For the six months ended 30 June 2019
Non-
Share Share Other Treasury Retained Controlling Total
capital premium Reserves shares earnings Total interest Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2018 5,616 7,281 103 (563) 3,516 15,953 - 15,953
------- ------- ----------- -------- ------------ ------- ----------- ----------
Transition impact
of IFRS 16 (512) (512) (512)
------- ------- ----------- -------- ------------ ------- ----------- ----------
At 1 January 2018
Restated 5,616 7,281 103 (563) 3,004 15,441 15,441
------- ------- ----------- -------- ------------ ------- ----------- ----------
Net profit for the
financial period - - - 373 373 - 373
------- ------- ----------- -------- ------------ ------- ----------- ----------
Total
comprehensive
income for the
period - - - - 373 373 - 373
Issue of share
capital 24 40 - - - 64 - 64
Equity dividends
paid (recognised
directly in
equity) - - - - - - - -
Treasury shares
acquired - - - - - - - -
------- ------- ----------- -------- ------------ ------- ----------- ----------
Transactions with
owners 24 40 - - 373 437 - 437
At 30 June 2018 5,640 7,321 103 (563) 3,377 15,878 - 15,878
------- ------- ----------- -------- ------------ ------- ----------- ----------
Net profit/(loss)
for the financial
period - - - 785 785 - 785
------- ------- ----------- -------- ------------ ------- ----------- ----------
Total
comprehensive
income for the
period - - - 785 785 - 785
Issue of share
capital - - - - - - -
Equity dividends
paid (recognised
directly in
equity) - - - (413) (413) - (413)
Foreign Exchange
gain - - - - - - - -
Transactions with
owners - - - - 372 372 - 372
At 31 December
2018 5,640 7,321 103 (563) 3,749 16,250 - 16,250
======= ======= =========== ======== ============ ======= =========== ==========
Net profit for the
financial period - - - 932 932 - 932
----- ----- --- ------- ----- ------ ------
Total comprehensive
income for the period - - - 932 932 - 932
Issue of share capital - - - - - - -
Equity dividends
paid (recognised
directly in equity) - - - - - - -
Foreign Exchange
gain - - - - - - - -
Transactions with
owners - - - - 932 932 - 932
At 30 June 2019 5,640 7,321 103 (563) 4,682 17,183 -17,183
===== ===== === ======= ===== ====== ======
Norish plc
Consolidated cash flow statement
For the six months ended 30 June 2019
Six months Six months Year
Ended ended Ended
30 June 30 June 31 December
2019 2018 2018
(Unaudited) (Restated) (Restated)
GBP'000 GBP'000 GBP'000
Profit on continuing activities before taxation 1,259 878 1,976
Gain on biological assets (70) (24) (43)
Amortisation of intangible assets - 141 141
Foreign exchange gain - - (23)
Loss on discontinued activities (16) (289) (379)
Finance expenses 167 163 363
Finance income - - (3)
Depreciation - property, plant and equipment 826 652 1,427
----------- ---------- -----------
2,166 1,521 3,459
Changes in working capital:
Decrease /(increase) in inventories (369) 229 85
Decrease in trade and other receivables 20 732 1,287
Increase/(decrease) in trade and other receivables for disposal 40 - (45)
Increase/(decrease) in current liabilities held for sale (15) 45 (3)
(Decrease)/increase in payables (453) (981) (1,234)
Cash generated from operations 1,389 1,546 3,549
Interest paid (167) (163) (363)
Interest received - - 3
Taxation refund/(paid) 46 - (370)
Net cash from operating activities 1,268 1,383 2,819
----------- ---------- -----------
Investing activities
Investment in intangible assets (166) (54) (166)
Purchase of biological assets (4) - (35)
Sale of biological assets 39 68
Purchase of property, plant and equipment (599) (687) (2,756)
Net cash used in investing activities (730) (741) (2,889)
----------- ---------- -----------
Financing activities
Dividends paid to shareholders - - (413)
Deferred consideration payments - (29) (29)
Share issue proceeds - 64 64
Invoice finance (payments)/receipts (799) (325) 551
Overdraft receipts - - (210)
Finance lease capital repayments (514) (348) (868)
Finance lease advance 51 - 1,669
Term loan advance 314 - 2,200
Term loan repayments (160) (395) (2,909)
Net cash used in financing activities (1,108) (1,033) (55)
----------- ---------- -----------
Net decrease in cash and cash equivalents (570) (391) (15)
----------- ---------- -----------
Cash and cash equivalents, at beginning of period 1,543 1,558 1,558
----------- ---------- -----------
Cash and cash equivalents end of period 973 1,167 1,543
----------- ---------- -----------
Note: The accounting policies applied throughout the period are
consistent with those applied for the year ended 31 December 2018,
as set out in the 2018 Annual Report.
Transition to IFRS 16 Leases
The accounting policies adopted in the preparation of the
interim statement for the six-month period ending 30 June 2019 are
consistent with those adopted in the annual report for the year
ended 31 December 2018 with the exception of transition to IFRS 16
Leases.
IFRS 16 has been endorsed by the EU and is effective from 1
January 2019. For lessees, the standard removes the distinction
between finance leases (on balance sheet) and operating leases (off
balance sheet) and introduces a single lessee accounting model
where almost all leases are recognised on balance sheet as both
assets and liabilities.
The Group has applied the standard using the full retrospective
approach. Accordingly, the 2018 financial information included in
these interim financial statements has been restated for the
effects of transition to IFRS 16. A cumulative transitional
adjustment has been recorded on 1 January 2018, the date of initial
application. The Group only applies IFRS 16 to leases which were
previously identified as leases under IAS 17 and IFRIC 4 in
accordance with the practical expedient allowed under IFRS 16.
The Group's loan covenants are on a 'frozen-GAAP' basis and,
accordingly, the transition to IFRS 16 has had no impact.
Impact of Consolidated Statement of Comprehensive Income
For the six-month period ended 30 June 2018, cost of sales
reduced by a net GBP91,000 and finance expense increased by a net
GBP76,000 resulting in an overall GBP15,000 increase in the profit
for the period. Cost of sales reduced as the expense (fixed fees
only) relating to operating leases has been replaced by a lesser
amount of depreciation expense relating to the right to use asset
resulting in a net reduction in cost of sales in the period.
For the six-month period ended 30 June 2018, finance expense
increased as a result of the recognition of interest on the
additional lease liabilities recognised under IFRS16's single
lessee accounting model.
Overall, a net gain arose in the six-month period ended 30 June
2018 as the reduction in cost of sales exceeded the increase in
finance expense as a result of the differing pattern of recognition
between depreciation expense and finance expense.
Impact on Consolidated Statement of Financial Position
At 30 June 2018, the right to use asset recognised under IFRS's
single lessee accounting model increased property, plant and
equipment by GBP3,513,000 (31 December 2018: GBP4,746,000, 1
January 2018: GBP3,766,000).
At 30 June 2018, the additional lease liability recognised under
IFRS's single lessee accounting model increased borrowings by
GBP4,013,000 (31 December 2018: GBP5,221,000, 1 January 2018:
GBP4,280,000).
At 30 June 2018, the combined adjustments to both property,
plant and equipment and borrowings resulted in a reduction in
equity of GBP500,000 (31 December 2018: GBP475,000, 1 January 2018:
GBP512,000).
Impact on Consolidated Statement of Cash Flows
For the six-month period ended 30 June 2018 cash flow generated
by operating activities increased by GBP186,000 and cash flow used
in financing activities increased by a similar amount as a result
of payments in relation to previously recognised operating leases
being classified as finance expenses as opposed to lease
expenses.
The amounts stated above are subject to audit and, as a result,
may be subject to change.
Enquiries:
Norish
Aidan Hughes, Finance Director Telephone: + 44 1293 862 498
Davy
Anthony Farrell Telephone: + 353 1 679 6363
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR BLGDCCUBBGCC
(END) Dow Jones Newswires
September 20, 2019 02:00 ET (06:00 GMT)
Roebuck Food (LSE:NSH)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Roebuck Food (LSE:NSH)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
