6 Mar 2009 15:09
Norish plc
Preliminary Statement of Annual Results 2008 Results
Norish plc results for the year ended 31st December 2008 as follows:
Operating profits of £787,000 compared to £1,026,000 for 2007.
Pre - tax profits of £111,000 compared to £617,000 for 2007.
Financial expenses up to £696,000 from £437,000. This was significantly impacted in 2008 by a non-cash movement of £227,000 (2007 £15,000).
Deferred tax charge of £809,000 was significantly impacted in 2008 by a non-cash movement of £767,000. This compares with a deferred tax credit of £141,000 in 2007.
Overall results were adversely impacted by a net £930,000 (NON-CASH ITEMS) in respect of deferred tax and interest rate SWAPS.
The cold stores' profitability was adversely affected by reduced occupancy levels and a significant drop in blast freezing volumes during the year. However, through strict management control we were able to reduce our costs in line with the fall in turnover to reduce the overall impact on profit.
Our ambient site at York suffered from a further reduction in stock holding as a result of the conclusion of changes in its' major customer's supply chain. This has resulted in reduced profits compared with 2007. Management efforts to source new business continue.
Financial Strength
Shareholders funds at 31 December 2008 were £6,390,000 compared with £6,816,000 at 31 December 2007. Net debt at 31 December 2008 was £8,048,000, compared to a net debt of £5,424,000 at 31 December 2007. The increase in net debt results mainly from the Gillingham purchase in March 2008. Our un-drawn banking facilities at 31 December 2008 were £1,324,000 (2007: £644,000).
Acquisition
During 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. The store, which is now fully operational, 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 of £2,000,000.
In February 2009 we agreed to lease a 3,100 pallet cold store at Leeds for an initial rent of £15,000. We have an option to purchase this site before February 2010 for £1,000,000.
Dividend
The board recommends the payment of a final dividend of €1.25c per share. This will be paid on the 22nd May 2009 to those shareholders on the register on the 24th April 2009. It will bring the total dividend in respect of the financial year to €1.25c per share unchanged from last year.
Outlook
We have started the year with reasonable occupancy levels, but because of the current economic climate it is difficult to forecast activity levels for the remainder of the year. However, we are continuing to pursue business development opportunities and we also expect to benefit from reduced power and interest costs compared to 2008.
Ted O'Neill
Chairman
5th March 2009
The results herein do not represent full accounts. Full accounts for the year ended 31 December 2008, upon which the Auditors have given an unqualified audit report, have not yet been filed with the Registrar of Companies. Full accounts for the year ended 31 December 2007 containing an unqualified audit report from the Auditors have been delivered to the Registrar of Companies.
The audited consolidated income statement, balance sheet and cash flow statement in sterling currency, with comparatives, are attached.
Consolidated Income Statement
for the year ended 31 December 2008
| 2008 | 2007 | |
| £'000 | £'000 | |
| Continuing operations | ||
| Revenue | 9,693 | 10,994 |
| Cost of sales | (8,958) | (9,699) |
| Gross profit | 735 | 1,295 |
| Other income | 326 | - |
| Administrative expenses | (274) | (269) |
| Operating profit from continuing operations | 787 | 1,026 |
| Finance expenses | (696) | (437) |
| Finance income | 20 | 28 |
| Profit on continuing activities before taxation | 111 | 617 |
| Income taxes - Corporation tax | 342 | (253) |
| Income taxes - Deferred tax | (809) | 141 |
| (Loss)/profit for the period attributable to shareholders | (356) | 505 |
| Earnings per share expressed in pence per share: | ||
| From continuing operations - basic | (4.2)p | 6.0p |
| - diluted | (4.2)p | 6.0p |
Consolidated Balance Sheet
at 31 December 2008
| 2008 | 2007 | |
| £'000 | £'000 | |
| Assets | ||
| Non current assets | ||
| Goodwill | 216 | 216 |
| Property, plant and equipment | 15,285 | 12,501 |
| 15,501 | 12,717 | |
| Current assets | ||
| Trade and other receivables | 2,690 | 2,438 |
| Financial assets: Fair value of interest rate swaps | - | 29 |
| Current tax asset | 236 | - |
| Cash and cash equivalents | 15 | 1,076 |
| Total assets | 2,941 | 3,543 |
| Liabilities | ||
| Current liabilities | ||
| Trade and other payables | (2,068) | (2,159) |
| Financial liabilities: Fair value of interest rate swaps | (198) | - |
| Current tax liabilities | - | (262) |
| Borrowings | (796) | (500) |
| (3,062) | (2,921) | |
| Net current(liabilities)/ assets | (121) | 622 |
| Non-current liabilities | ||
| Borrowings | (7,267) | (6,000) |
| Provisions | (391) | - |
| Deferred tax | (1,332) | (523) |
| (8,990) | (6,523) | |
| Net assets | 6,390 | 6,816 |
| Equity | ||
| Share capital | 1,493 | 1,493 |
| Share premium account | 3,156 | 3,156 |
| Capital conversion reserve fund | 23 | 23 |
| Retained earnings | 1,718 | 2,144 |
| Equity attributable to equity holders of the parent | 6,390 | 6,816 |
Consolidated Statement of Changes in Equity
For the year ended 31 December 2008
| Capital | |||||
| Share | Share | Conversion | Retained | ||
| capital | premium | Reserve | earnings | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| At 1 January 2007 | 1,493 | 3,156 | 23 | 1,625 | 6,297 |
| Net profit for the year | - | - | - | 505 | 505 |
| Total recognised income and expense for the year | - | - | - | 505 | 505 |
| Credit in respect of employee share schemes | - | - | - | 14 | 14 |
| At 31 December 2007 | 1,493 | 3,156 | 23 | 2,144 | 6,816 |
| Net loss for the year | - | - | - | (356) | (356) |
| Total recognised income and expense for the year | - | - | - | (356) | (356) |
| Credit in respect of employee share schemes | - | - | - | 14 | 14 |
| Equity dividends paid (recognised directly in equity) | (84) | (84) | |||
| At 31 December 2008 | 1,493 | 3,156 | 23 | 1,718 | 6,390 |
Consolidated Cash Flow Statement
for the year ended 31 December 2008
| 2008 | 2007 | |
| £'000 | £'000 | |
| Profit on continuing activities before taxation | 111 | 617 |
| Adjustments for: | ||
| Finance expenses | 696 | 437 |
| Finance income | (20) | (28) |
| Depreciation - property, plant and equipment | 541 | 554 |
| Employee share schemes | 14 | 14 |
| Changes in working capital: | ||
| (Increase)/decrease in trade and other receivables | (223) | 339 |
| Increase/(decrease) in payables | 107 | (235) |
| Increase in provisions | 391 | - |
| Cash generated from operations | 1,617 | 1,698 |
|
| ||
| Interest paid - bank loans and overdrafts | (469) | (437) |
| Taxation (paid) / refunded | (156) | (145) |
| Net cash from operating activities | 992 | 1,116 |
| Investing activities | ||
| Interest received | 20 | 43 |
| Fair value losses/(gains) on swaps adjustment | (227) | (15) |
| Disposal of Plant | - | 20 |
| Purchase of property, plant and equipment | (3,325) | (172) |
| Net cash used in investing activities | (3,532) | (124) |
| Financing activities | ||
| Dividends paid to shareholders | (84) | - |
| Term loan advance | 2,000 | - |
| Term loan repayments | (600) | (500) |
| Net cash used in financing activities | 1,316 | (500) |
| Net increase in cash and cash equivalents | (1,224) | 492 |