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(Alliance News) - Origin Enterprises PLC on Thursday issued a profit warning and said that it swung to a loss in the first half of financial 2020 due to prolonged adverse weather conditions.
For the six months to the end of January, the agri-services provider reported a pretax loss of EUR11.7 million versus EUR1,000 profit a year ago. Operating loss was EUR6.2 million versus EUR5.9 million profit.
First half revenue fell 14% to EUR604.9 million from EUR701.6 million the year before. The drop in revenue was as a result of prolonged rainfall in the UK which led to a 40% reduction in the level of autumn and winter crop plantings.
Net debt at the end of the period stood at EUR264.2 million, up 11% year-on-year from EUR238.8 million.
"The impact of the prolonged, adverse conditions experienced means that we expect group operating profit and adjusted diluted earnings per share for the full year ending July 31 will be significantly lower than expected at the time of our first quarter trading update," said Chief Executive Tom O'Mahony.
The company maintained its interim dividend at 3.15 cents per share.
Shares in the company were down 2.1% at EUR3.01 each.
Origin Enterprises shares in London
By Ife Taiwo; ifetaiwo@alliancenews.com
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