13 Sep 2013 16:34
Norish plc
Interim results 2013
Results
Norish plc results for the year period ended 30th June 2013 are as follows:
· Turnover increased to £11.9m compared with £5.4m in 2012.
· Turnover from Town View Foods Limited accounted for £5.9m.
· Profit on continuing operations increased to £295,000 compared with £9,000.
· Earning per share increased to 2.2p compared with 0.1p.
· Shareholders funds increased to £8.3m compared with £7.9m.
The cold store business performed better than the first half of last year, primarily due to increased turnover.
Our ambient site at York performed poorly compared to the same period last year.
Town View Foods the new protein commodity trading business that was acquired on the 5th October 2012 was profitable despite the difficult market trading conditions.
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. At the 30 June 2013 we had an option to purchase 24ton of re-cycled R22 at £4.05 per kg .Under IAS39 Financial Instruments (Recognition and measurement) we have accounted for a loss of £25,000 in the first half of the year, which compares with a profit of £88,000 for the same period last year. The worst case scenario could adversely impact the results, in the full year, by £397,000. As the company has no obligation to exercise this option, any potential loss, is a book loss only.
Following an internal review of the Group's operations, the board has decided that the Group will dispose of its ambient storage site in York and it's temperature controlled site in Leeds as neither of those facilities are central to the future growth and development of the Group.
The Group will continue with it's temperature controlled facilities in North Wales, Birmingham and it's four sites in the South East of England.
The commodity protein trading business Town View Foods, will be further developed and expanded.
Dividend
The board does not recommend a payment of an Interim dividend, unchanged from last year.
Financial Strength
Shareholders funds at 30 June 2013 were £8,288,000 compared with £8,067,000 at 31 December 2012. Net debt at 30 June 2013 was £8,336,000, compared with a net debt of £8,192,000 at 30 June 2012.
Going forward, the board intends to dispose of both its Leeds and York sites and to look at other fundraising options to ensure the Group is in a strong financial position to pursue plans for the continued growth and development of its business.
Ted O'Neill
Chairman
Norish plc | ||||
Consolidated income statement | ||||
For the six months ended 30 June 2013 | ||||
Six months | Six months | Year | ||
ended | ended | ended | ||
30 June | 30 June | 31 December | ||
2013 | 2012 | 2012 | ||
(Unaudited) | (Unaudited) | (Audited) | ||
£'000 | £'000 | £'000 | ||
Continuing operations | ||||
Revenue | 11,881 | 5,427 | 14,876 | |
Cost of sales | (11,239) | (5,183) | (14,018) | |
Gross profit | 642 | 244 | 858 | |
Other (expense)/income | (25) | 88 | 109 | |
Acquisition expenses | - | - | (317) | |
Administrative expenses | (231) | (203) | (418) | |
Operating profit from continuing operations | 386 | 129 | 232 | |
Finance expenses - interest paid | (110) | (104) | (215) | |
Finance expenses - fair value gain/(loss) swaps/caps | 73 | (16) | (44) | |
Finance expenses - notional interest | (54) | - | (28) | |
Profit/(loss) on continuing activities before taxation | 295 | 9 | (55) | |
Tax on profit/(loss) on ordinary activities | (74) | (2) | (24) | |
Profit/(loss) for the period attributable to shareholders | 221 | 7 | (79) | |
Profit/(loss) per share expressed in pence per share: | ||||
From continuing operations - basic | 2.2p | 0.1p | (0.8)p | |
Weighted average number of ordinary shares | 10,146,185 | 9,312,852 | 9,532,431 | |
- diluted | 2.2p | 0.1p | (0.8)p | |
Weighted average number of diluted ordinary shares | 10,146,185 | 9,312,852 | 9,532,431 |
Norish plc | |||
Interim balance sheet | |||
As at 30 June 2013 | |||
As at | As at | As at | |
30 June | 30 June | 31 December | |
2013 | 2012 | 2012 | |
(Unaudited) | (Unaudited) | (Audited) | |
£'000 | £'000 | £'000 | |
Assets | |||
Non current assets | |||
Goodwill | 2,554 | 216 | 2,554 |
Property, plant and equipment | 16,144 | 16,482 | 16,299 |
Derivate financial instruments | 397 | 757 | 422 |
19,095 | 17,455 | 19,275 | |
Current assets | |||
Trade and other receivables | 4,037 | 2,611 | 4,244 |
Inventories | 107 | - | 84 |
Cash and cash equivalents | 42 | 74 | 103 |
4,186 | 2,685 | 4,431 | |
Liabilities | |||
Current liabilities | |||
Trade and other payables | (3,352) | (2,538) | (3,904) |
Financial Liabilities at fair value through profit or loss | (267) | (120) | (450) |
Current tax liabilities | (337) | (81) | (566) |
Bank overdraft and loans | (2,885) | (2,044) | (2,216) |
(6,841) | (4,783) | (7,136) | |
Net current assets | (2,655) | (2,098) | (2,705) |
Non-current liabilities | |||
Borrowings | (5,493) | (6,222) | (5,890) |
Financial Liabilities at fair value through profit or loss | (1,423) | - | (1,422) |
Provisions | (190) | (139) | (145) |
Deferred tax | (1,046) | (1,055) | (1,046) |
(8,152) | (7,416) | (8,503) | |
Net assets | 8,288 | 7,941 | 8,067 |
Equity | |||
Share capital | 1,841 | 1,674 | 1,841 |
Share premium account | 3,276 | 3,229 | 3,276 |
Capital conversion reserve fund | 23 | 23 | 23 |
Retained earnings | 3,148 | 3,015 | 2,927 |
Equity attributable to equity holders of the parent | 8,288 | 7,941 | 8,067 |
Norish plc | |||||
Consolidated statement of changes in equity | |||||
For the six months ended 30 June 2013 | |||||
Capital | |||||
Share | Share | Conversion | Retained | ||
capital | premium | Reserve | Earnings | Total | |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
£'000 | £'000 | £'000 | £'000 | £'000 | |
At 1 January 2012 | 1,674 | 3,229 | 23 | 3,099 | 8,025 |
Net profit for the period | - | - | - | 9 | 9 |
Equity dividends paid (recognised directly in equity) | - | - | - | (93) | (93) |
At 30 June 2012 | 1,674 | 3,229 | 23 | 3,015 | 7,941 |
Net loss for the period | - | - | - | (88) | (88) |
Issue of share capital | 167 | 83 | - | - | 250 |
Share issue costs | - | (36) | - | - | (36) |
Equity dividends paid (recognised directly in equity) | - | - | - | - | - |
At 31 December 2012 | 1,841 | 3,276 | 23 | 2,927 | 8,067 |
Net profit for the period | - | - | - | 221 | 221 |
Equity dividends paid (recognised directly in equity) | - | - | - | - | - |
At 30 June 2013 | 1,841 | 3,276 | 23 | 3,148 | 8,288 |
Norish plc | |||
Consolidated cash flow statement | |||
For the six months ended 30 June 2013 | |||
Six months | Six months | Year | |
Ended | ended | Ended | |
30 June | 30 June | 31 December | |
2013 | 2012 | 2012 | |
(Unaudited) | (Unaudited) | (Audited) | |
£'000 | £'000 | £'000 | |
Profit on continuing activities before taxation | 295 | 9 | (55) |
Adjustments for: | |||
Finance expenses | 164 | 120 | 287 |
Finance income | (73) | - | - |
Finance expenses - notional interest | (54) | - | (28) |
Fair value (losses)/gains on interest rate swaps/caps | 73 | (16) | (44) |
Other income | 25 | (88) | (109) |
Unrealised gain on derivative financial instrument | (25) | 88 | 49 |
Depreciation - property, plant and equipment | 326 | 291 | 595 |
Changes in working capital: | |||
Increase in inventories | (23) | - | (39) |
Decrease/(Increase) in trade and other receivables | 207 | 128 | 676 |
(Decrease)/increase in payables | (546) | (336) | (1,034) |
Increase in provisions | 45 | - | 6 |
Cash generated from operations | 414 | 196 | 304 |
R22 income received | - | - | 356 |
Interest paid - bank loans and overdrafts | (110) | (104) | (215) |
Taxation paid | (303) | - | (69) |
Net cash from operating activities | 1 | 92 | 376 |
Investing activities | |||
Payments to acquire subsidiary | (163) | - | (3,500) |
Cash acquired as part of consideration | - | - | 3,312 |
Purchase of property, plant and equipment | (171) | (1,394) | (1,515) |
Net cash used in investing activities | (334) | (1,394) | (1,703) |
Financing activities | |||
Dividends paid to shareholders | - | (93) | (93) |
Share issue proceeds | - | - | 250 |
Share issue costs | - | - | (36) |
Invoice finance receipts | 661 | 906 | 1,142 |
Finance lease capital repayments | (23) | (23) | (46) |
Term loan advance | - | 900 | 900 |
Term loan repayments | (366) | (364) | (737) |
Net cash used in financing activities | 272 | 1,326 | 1,380 |
Net decrease in cash and cash equivalents | (61) | 24 | 53 |
Cash and cash equivalents, at beginning of period | 103 | 50 | 50 |
Cash and cash equivalents end of period | 42 | 74 | 103 |
Note: The accounting policies applied throughout the period are consistent with those applied for the year ended 31 December 2012, as set out in the 2012 Annual Report.
Enquiries:
Norish | |
Aidan Hughes, Finance Director | Telephone: + 44 1293 862 498 |
Davy | |
Anthony Farrell / Ivan Murphy | Telephone: + 353 1 679 6363 |