4 Sep 2008 07:00
Norish plc
Interim results 2008
Results
Norish plc announces pre-tax profits of £184,000 for the six months ended 30 June 2008. This compares with pre-tax profits of £320,000 for the same period last year. Turnover from continuing operations decreased by £232,000 to £5,318,000. Earnings per share decreased to 1.4p compared to 2.4p for the same period last year.
The cold stores experienced a slight downturn in trade compared with last year as customers reduced their stock holdings.
Our ambient site at York suffered from significantly reduced stocks, as a result of changes in its major customer's supply chain, which has resulted in reduced profits compared to last year. Management efforts to source new business continue.
Acquisition
On the 28th March 2008 we completed the purchase of a cold store at Gillingham, Kent for £3,100,000. The acquisition is in a prime location situated close to London. When this store is fully operational it will make a positive contribution to the results in 2009. The purchase was funded by a combination of surplus cash and a 15 year term loan.
Dividend
A final dividend was paid of €1.25c per share in respect of the year 2007, on the 23 May 2008 to those on the register as at 25 April 2008. As with last year, the board do not recommend a payment of an Interim dividend.
Outlook
We have experienced a downturn in trade in 2008 compared to last year and this has carried through into the second half of the year. Although we would expect trading to pick up due to new business wins and seasonal uplift, the performance in the second half of the year is expected to be down on last year.
Financial Strength
Shareholders funds at 30 June 2008 were £6,858,000 compared with £6,816,000 at 31 December 2007. Net debt at 30 June 2008 was £8,249,000, compared with a net debt of £5,424,000 at 31 December 2007.
Ted O'Neill
Chairman
04 September 2008
| Norish plc Consolidated income statement For the six months ended 30 June 2008 | ||||
| Six months ended 30 June 2008 (Unaudited) | Six months ended 30 June 2008 (Unaudited) | Six months ended 30 June 2007 (Unaudited) | Year ended 31 December 2007 (Audited) | |
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| £'000 | €'000 | £'000 | £'000 |
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| Continuing operations |
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| Revenue | 5,318 | 6,647 | 5,550 | 10,994 |
| Cost of sales | (4,814) | (6,017) | (4,924) | (9,699) |
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| Gross profit | 504 | 630 | 626 | 1,295 |
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| Administrative expenses | (120) | (150) | (144) | (269) |
| Operating profit from continuing operations | 384 | 480 | 482 | 1,026 |
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| Finance expenses | (230) | (288) | (215) | (437) |
| Finance income | 30 | 37 | 53 | 28 |
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| Profit on continuing activities before taxation | 184 | 229 | 320 | 617 |
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| Tax on profit on ordinary activities | (64) | (80) | (112) | (112) |
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| Profit for the period attributable to shareholders | 120 | 149 | 208 | 505 |
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| Profit per share expressed in pence per share: |
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| From continuing operations - basic | 1.4p | 1.7c | 2.4p | 6.0p |
| Weighted average number of ordinary shares | 8,466,230 | 8,466,230 | 8,466,230 | 8,466,230 |
| - diluted | 1.4p | 1.7c | 2.4p | 6.0p |
| Weighted average number of diluted ordinary shares | 8,466,230 | 8,466,230 | 8,467,295 | 8,469,602 |
Note : The unaudited financial information presented in pounds sterling as of and for the period ended 30 June 2008 is also expressed in Euro, solely for convenience, at the rate of €1 = £0.80, the closing rate for the period. No representation is made that the pounds sterling amounts have been, could have been or could be converted into Euro at that or any other rate.
| Norish plc Interim balance sheet As at 30 June 2008 | |||
| As at 30 June 2008 (Unaudited) | As at 30 June 2007 (Unaudited) | As at 31 December 2007 (Audited) | |
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| £'000 | £'000 | £'000 |
| Assets |
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| Non current assets |
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| Goodwill | 216 | 216 | 216 |
| Property, plant and equipment | 15,517 | 12,715 | 12,501 |
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| 15,733 | 12,931 | 12,717 |
| Current assets |
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| Trade and other receivables | 2,927 | 2,909 | 2,438 |
| Financial assets: Fair value of interest rate swaps | 44 | 82 | 29 |
| Cash and cash equivalents | 13 | 400 | 1,076 |
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| 2,984 | 3,391 | 3,543 |
| Liabilities |
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| Current liabilities |
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| Trade and other payables | (2,748) | (2,116) | (2,159) |
| Current tax liabilities | (326) | (275) | (262) |
| Bank overdraft and loans | (678) | (500) | (500) |
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| (3,752) | (2,891) | (2,921) |
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| Net current assets | (768) | 500 | 622 |
| Non-current liabilities |
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| Bank loans | (7,584) | (6,250) | (6,000) |
| Deferred tax | (523) | (676) | (523) |
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| (8,107) | (6,926) | (6,523) |
| Net assets | 6,858 | 6,505 | 6,816 |
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| Equity |
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| Share capital | 1,493 | 1,493 | 1,493 |
| Share premium account | 3,156 | 3,156 | 3,156 |
| Capital conversion reserve fund | 23 | 23 | 23 |
| Retained earnings | 2,186 | 1,833 | 2,144 |
| Equity attributable to equity holders of the parent | 6,858 | 6,505 | 6,816 |
| Norish plc Consolidated statement of changes in equity For the six months ended 30 June 2008 | |||||
| Share Capital (Unaudited) | Share premium (Unaudited) | Capital Conversion Reserve (Unaudited) | Retained earnings (Unaudited) | Total (Unaudited) | |
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| £'000 | £'000 | £'000 | £'000 | £'000 |
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| At 1 January 2007 | 1,493 | 3,156 | 23 | 1,625 | 6,297 |
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| Net profit for the period | - | - | - | 208 | 208 |
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| At 30 June 2007 | 1,493 | 3,156 | 23 | 1,833 | 6,505 |
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| Net profit for the period | - | - | - | 297 | 297 |
| Credit in respect of employee share schemes | - | - | - | 14 | 14 |
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| At 31 December 2007 | 1,493 | 3,156 | 23 | 2,144 | 6,816 |
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| Net profit for the period | - | - | - | 120 | 120 |
| Credit in respect of employee share schemes | - | - | - | 7 | 7 |
| Equity dividends paid (recognised directly in equity) | - | - | - | (85) | (85) |
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| At 30 June 2008 | 1,493 | 3,156 | 23 | 2,186 | 6,858 |
| Norish plc Consolidated cash flow statement For the six months ended 30 June 2008 | |||
| Six months ended 30 June 2008 (Unaudited) | Six months ended 30 June 2007 (Unaudited) | Year Ended 31 December 2007 (Audited) | |
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| £'000 | £'000 | £'000 |
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| Profit on continuing activities before taxation | 184 | 320 | 617 |
| Adjustments for: |
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| Finance expenses | 230 | 215 | 437 |
| Finance income | (30) | (53) | (28) |
| Depreciation - property, plant and equipment | 249 | 264 | 554 |
| Employee share schemes | 7 | - | 14 |
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| Changes in working capital: |
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| (Increase)/decrease in trade and other receivables | (504) | (185) | 339 |
| Increase/(decrease) in payables | 589 | (278) | (235) |
| Cash generated from operations | 725 | 283 | 1,698 |
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| Interest paid - bank loans and overdrafts | (230) | (215) | (437) |
| Taxation refunded / (paid) | - | 21 | (145) |
| Net cash from operating activities | 495 | 89 | 1,116 |
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| Investing activities |
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| Interest received | 15 | 15 | 43 |
| Fair value gain / (loss) on swaps adjustment | 15 | 38 | (15) |
| Disposal of plant | - | - | 20 |
| Purchase of property, plant and equipment | (3,265) | (76) | (172) |
| Net cash used in investing activities | (3,235) | (23) | (124) |
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| Financing activities |
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| Dividends paid to shareholders | (85) | - | - |
| Term loan repayments | (283) | (250) | (500) |
| Net cash used in financing activities | (368) | (250) | (500) |
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| Net (decrease)/ increase in cash and cash equivalents | (3,108) | (184) | 492 |
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Note: The accounting policies applied throughout the period are consistent with those applied for the year ended 31 December 2007, as set out in the 2007 Annual Report