Origin Share News (OGN)

LONDON (Alliance News) - Agri-services firm Origin Enterprises PLC on Thursday said loss in the seasonally quieter first half narrowed significantly due to higher volumes and margins.

Revenue in the six months to January rose by 4.0% to EUR586.9 million from EUR564.4 million, while Origin's loss before tax narrowed to EUR2.8 million from EUR12.7 million in the same period the year before.

Origin swung to an operating profit for the period of EUR1.2 million, from an operating loss of EUR8.9 million the year before.

It is to pay an interim dividend of 3.15 euro cents per share, flat year-on-year.

Revenue growth, the company said, was driven by higher agronomy service revenue and crop input volumes alongside higher fertiliser prices, while profitability was helped by the same factors as well as better margins.

UK & Ireland revenue rose to 6.4% EUR377.5 million, while revenue in continental Europe was broadly flat at EUR209.4 million compared to EUR209.5 million the year before.

Operating profit in the UK & Ireland was down to EUR1.1 million from EUR1.2 million, with continental Europe operating profit dipping to EUR193,000 from EUR224,000.

Chief Executive Tom O'Mahony said: "Origin has achieved a good first half result with favourable activity levels on farm supporting a 12.6% increase in group operating profit in the seasonally quiet trading period."

"The acquisition of Belgium based Pillaert-Mekoson in the period scales our market position in continental Europe and provides further buy and build consolidation and growth opportunity. Our objectives for digital services enablement across Origin's customer and geographic markets were significantly advanced during the period."

He added: "We continue to prioritise new growth opportunity in agri-services while focusing on cash generation, operational and commercial effectiveness. The autumn and winter cropping profile established to date provides a solid foundation for the seasonally more important second half when over 90% of earnings are typically generated."

The company will release a trading update for its third quarter to April on June 19. The stock was up 1.1% on Thursday morning at 5.79 euro cents per share.