3 Sep 2010 09:19
Norish plc
3 September 2010
Interim results 2010
Results
Norish plc announces pre-tax profits of £208,000 for the six months ended 30 June 2010. This compares with pre-tax profits of £256,000 for the same period last year. Turnover from continuing operations increased by 1% to £4,983,000. Earnings per share increased to 2.1p compared to 2.0p for the same period last year.
Our cold store business has not performed as well as expected in the first half of the year, primarily due to pressure on rates and increased power costs.
Our ambient site at York has performed well in the period with increased contribution to the end of June.
We completed the acquisition of a new site at Leeds at a total cost of £790,000. This site which was previously leased was profitable for the first six months of the year and is a significant improvement on the previous year.
We currently use R22 refrigeration gas at 3 of our cold stores. R22 is a Hydrochlorofluorcarbon (HCFC) which is classed as an ozone depleting gas and with effect from 1st January 2010 it is no longer possible to purchase virgin R22. However, the use of re-cycled R22 is still permitted until 31st December 2014. We currently have an option to purchase 45,000 kg of re-cycled R22 at £4.05 per kg which is below the current market value. Under IAS39 we have accounted for a profit of £208,000 in the first half of the year.
Dividend
The board does not recommend a payment of an Interim dividend.
Financial Strength
Shareholders funds at 30 June 2010 were £7,234,000 compared with £7,045,000 at 31 December 2009. Net debt at 30 June 2010 was £8,135,000, compared with a net debt of £6,822,000 at 31 December 2010. The increase in net debt was primarily due to the purchase of the Leeds Site for £790,000.
Ted O'Neill
Chairman
3 September 2010
| Norish plc |
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| Consolidated income statement |
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| For the six months ended 30 June 2010 |
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| Six months | Six months | Year |
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| ended | ended | ended |
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| 30 June | 30 June | 31 December |
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| 2010 | 2009 | 2009 |
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| (Unaudited) | (Unaudited) | (Audited) |
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| £'000 | £'000 | £'000 |
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| Continuing operations |
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| Revenue |
| 4,983 | 4,939 | 10,539 |
| Cost of sales |
| (4,686) | (4,450) | (9,526) |
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| Gross profit |
| 297 | 489 | 1,013 |
| Other income |
| 208 | - | - |
| Administrative expenses |
| (185) | (158) | (343) |
| Operating profit from continuing operations |
| 320 | 331 | 670 |
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| Finance expenses |
| (136) | (149) | (291) |
| Finance income |
| 24 | 74 | 93 |
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| Profit on continuing activities before taxation |
| 208 | 256 | 472 |
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| Tax on profit on ordinary activities |
| (26) | (86) | 359 |
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| Profit for the period attributable to shareholders |
| 182 | 170 | 831 |
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| Profit per share expressed in pence per share: |
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| From continuing operations - basic |
| 2.1p | 2.0p | 9.8p |
| Weighted average number of ordinary shares |
| 8,466,230 | 8,466,230 | 8,466,230 |
| - diluted |
| 2.1p | 2.0p | 9.8p |
| Weighted average number of diluted ordinary shares |
| 8,466,230 | 8,466,230 | 8,466,230 |
| Norish plc |
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| Interim balance sheet |
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| As at 30 June 2010 |
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| As at | As at | As at |
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| 30 June | 30 June | 31 December |
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| 2010 | 2009 | 2009 |
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| (Unaudited) | (Unaudited) | (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 | 15,675 | 15,088 | 15,026 |
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| 15,891 | 15,304 | 15,242 |
| Current assets |
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| Trade and other receivables | 3,317 | 2,788 | 2,560 |
| Financial assets: Fair value of interest rate swaps | - | - | - |
| Current tax asset | - | - | - |
| Cash and cash equivalents | 8 | 35 | 445 |
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| 3,325 | 2,823 | 3,005 |
| Liabilities |
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| Current liabilities |
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| Trade and other payables | (2,217) | (1,784) | (2,274) |
| Financial liabilities: Fair value of interest rate swaps | (86) | (129) | (110) |
| Current tax liabilities | (110) | (65) | (84) |
| Bank overdraft and loans | (1,334) | (946) | (633) |
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| (3,747) | (2,924) | (3,101) |
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| Net current assets | (422) | (101) | (96) |
| Non-current liabilities |
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| Bank loans | (6,809) | (6,984) | (6,634) |
| Provisions | (527) | (378) | (568) |
| Deferred tax | (899) | (1,370) | (899) |
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| (8,235) | (8,732) | (8,101) |
| Net assets | 7,234 | 6,471 | 7,045 |
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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 | 2,562 | 1,799 | 2,373 |
| Equity attributable to equity holders of the parent | 7,234 | 6,471 | 7,045 |
| Norish plc |
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| Consolidated statement of changes in equity |
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| For the six months ended 30 June 2010 |
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| Capital |
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| Share | Share | Conversion | Retained |
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| capital | premium | Reserve | earnings | Total |
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| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
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| £'000 | £'000 | £'000 | £'000 | £'000 |
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| At 1 January 2009 | 1,493 | 3,156 | 23 | 1,718 | 6,390 |
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| Net profit for the period | - | - | - | 170 | 170 |
| Credit in respect of employee share schemes | - | - | - | 7 | 7 |
| Equity dividends paid (recognised directly in equity) | - | - | - | (96) | (96) |
| At 30 June 2009 | 1,493 | 3,156 | 23 | 1,799 | 6,471 |
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| Net profit for the period | - | - | - | 661 | 661 |
| Credit in respect of employee share schemes | - | - | - | 9 | 9 |
| Equity dividends paid (recognised directly in equity) | - | - | - | (96) | (96) |
| At 31 December 2009 | 1,493 | 3,156 | 23 | 2,373 | 7,045 |
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| Net profit for the period | - | - | - | 182 | 182 |
| Credit in respect of employee share schemes | - | - | - | 7 | 7 |
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| At 30 June 2010 | 1,493 | 3,156 | 23 | 2,562 | 7,234 |
| Norish plc |
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| Consolidated cash flow statement |
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| For the six months ended 30 June 2010 |
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| Six months | Six months | Year |
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| Ended | ended | Ended |
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| 30 June | 30 June | 31 December |
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| 2010 | 2009 | 2009 |
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| (Unaudited) | (Unaudited) | (Audited) |
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| £'000 | £'000 | £'000 |
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| Profit on continuing activities before taxation | 182 | 256 | 472 |
| Adjustments for: |
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| Finance expenses | 136 | 149 | 291 |
| Finance income | (24) | (74) | (93) |
| Depreciation - property, plant and equipment | 303 | 285 | 576 |
| Employee share schemes | 7 | 7 | 16 |
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| Changes in working capital: |
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| (Increase)/decrease in trade and other receivables | (757) | (98) | 130 |
| (Decrease)/increase in payables | (57) | (284) | 118 |
| (Decrease)/Increase in provisions | (41) | (13) | 178 |
| Cash generated from operations | (251) | 228 | 1,688 |
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| Interest paid - bank loans and overdrafts | (136) | (149) | (291) |
| Taxation refunded | - | 253 | 245 |
| Net cash from operating activities | (387) | 332 | 1,642 |
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| Investing activities |
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| Interest received | - | 5 | 5 |
| Fair value adjustment on interest rate swaps | 24 | - | 88 |
| Purchase of property, plant and equipment | (950) | (88) | (317) |
| Net cash used in investing activities | (926) | (83) | (224) |
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| Financing activities |
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| Dividends paid to shareholders | - | (96) | (192) |
| Net cash used in financing activities | - | (96) | (192) |
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| Net (decrease)/increase in cash and cash equivalents | (1,313) | 153 | 1,226 |
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| Cash and cash equivalents at the beginning of the period | (6,822) | (8,048) | (8,048) |
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| Cash and cash equivalents and bank overdrafts, term loans, end of period | (8,135) | (7,895) | (6,822) |
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Note: The accounting policies applied throughout the period are consistent with those applied for the year ended 31 December 2009, as set out in the 2009 Annual Report