6 Mar 2014 07:00
Norish plc
Preliminary Statement of Annual Results 2013
Results
Norish plc results for the year ended 31st December 2013 as follows:
· Turnover from continuing operations increased to £22.8m compared with £13.6m for 2012.
· Turnover from Townview Foods Limited amounted to £11.4m compared to £3.2m in the period 5 October 2012 to 31 December 2012.
· Turnover from our continuing temperature controlled business increased to £11.2m compared to £10.1m for 2012.
· Profit from continuing operations increased by £981k, from a loss of (£218k) in 2012, to a profit of £763k in 2013.
· Net assets increased to £8.3m from £8.1m in 2012.
· Net debt decreased, in the period, to £7.8m compared with £8m in 2012.
· Basic Earnings per share increased to 8.4p from a loss of (2.5p) in 2012.
Financial Strength
Shareholders funds at 31 December 2013 were £8.3m compared to £8.1m at 31 December 2012. Net debt at 31 December 2013 was £7.8m compared to £8m at 31 December 2012.
Operations
During the year we decided to exit our ambient site at York, as this site was not a part of our future plans for the business. Following the loss of a major customer at our Leeds site, it was decided to exit this site also and put both properties, at Leeds and York, on the market. A sale price of £1.8m has been agreed for the site at York and the sale is expected to conclude before 30 June 2014. Losses in respect of these properties, of £946k, are included under discontinued operations and compare with profits of £163k in 2012.
Following this decision we have split the business into three divisions - North West Cold Stores, South East Cold Stores and Commodity Trading.
The North West cold store business performed well against last year. The increase of pork exports to China was a significant factor in the improved performance.
The South East cold store business, performed below 2012 levels, mainly due to increased power costs. It is expected that these power cost increases will reverse from April 2014.
Our commodity trading division which we purchased in October 2012 contributed £420,000, however this was below expectations as the results were adversely impacted as a result of the Horse Meat crisis.
Chairman's Statement (Continued)
We currently use R22 refrigeration gas at two 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 a supply agreement to purchase 14,228 kg (2012: 24,868 kg) of re-cycled R22 at £4.05 per kg which is at market value. Under IAS39 we have accounted for a loss of £422,000 on the proportion of the option still held at 31 December 2013. This is based on a fair value option price of £Nil per kg at 31st December 2013. The quantity of gas held is expected to be in excess of our own use requirement.
Our pre-tax profits from continuing operations of £763,000 were adversely affected by a non cash write off on the R22 option of £422,000 but benefited from an adjustment to the deferred consideration in respect of our Commodity Trading division of £737,000.
Dividend
The board recommends the payment of a final dividend of 1.25 cent per share. This will be paid on the 24 October 2014 to those shareholders on the register on the 26 September 2014. It will bring the total dividend in respect of the financial year to 1.25 cent per share unchanged from last year.
Personnel
On behalf of the board, I would like to thank the management team and staff for their commitment and contribution in 2013.
Ted O'Neill
Chairman
5 March 2014
The results herein do not represent full accounts. Full accounts for the year ended 31 December 2013, 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 2012 containing an unqualified audit report from the Auditors have been delivered to the Registrar of Companies.
The audited Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity and Consolidated Cash Flow Statement in sterling currency, with comparatives, are attached.
Consolidated STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2013
| 2013 | 2012 | ||
| £'000 | £'000 | ||
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Continuing operations |
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Revenue | 22,811 | 13,552 | ||
Cost of sales | (21,744) | (12,857) | ||
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Gross profit | 1,067 | 695 | ||
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Other income | 315 | 109 | ||
Acquisition expenses | - | (317) | ||
Administrative expenses | (472) | (418) | ||
Operating profit from continuing operations | 910 | 69 | ||
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Finance income -fair value gain swaps/caps | 134 | - | ||
Finance expenses-interest paid | (236) | (215) | ||
Finance expenses- fair value loss swaps/caps | - | (44) | ||
Finance expenses - notional interest | (45) | (28) | ||
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Profit/(loss) on continuing activities before taxation | 763 | (218) | ||
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Income taxes - Corporation tax | (79) | (33) | ||
Income taxes - Deferred tax | 183 | 9 | ||
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Profit/(Loss) for the period attributable to owners of the parent from continuing operations | 867 | (242) | ||
(Loss)/profits from discontinued operations | (946) | 163 | ||
Loss for the period | (79) | (79) | ||
Other comprehensive income | - | - | ||
Total comprehensive expense for the period attributable to owners of the parent | (79) | (79) | ||
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Earnings per share expressed in pence per share: | ||||
From continuing operations - basic | 8.4p | (2.5)p | ||
- diluted | 8.4p | (2.5)p | ||
From discontinued operations - basic | (9.1)p | 1.7p | ||
- diluted | (9.1)p | 1.7p | ||
Consolidated Statement of financial position
at 31 December 2013
| 2013 | 2012 | ||
| £'000 | £'000 | ||
Assets |
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Non current assets |
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Goodwill | 2,338 | 2,554 | ||
Property, plant and equipment | 12,951 | 16,299 | ||
Derivative financial instruments | - | 422 | ||
| 15,289 | 19,275 | ||
Current assets |
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Trade and other receivables | 3,560 | 4,244 | ||
Inventories | 5 | 84 | ||
Cash and cash equivalents | 49 | 103 | ||
Assets of disposal group classified as held for sale | 2,434 | - | ||
| 6,048 | 4,431 | ||
Liabilities |
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Current liabilities |
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Trade and other payables | (3,313) | (3,904) | ||
Financial liabilities at fair value through profit or loss | (172) | (450) | ||
Current tax liabilities | (28) | (566) | ||
Borrowings | (2,531) | (2,216) | ||
Borrowings of disposal group classified as held for sale | (1,375) | |||
Liabilities of disposal group classified as held for sale | (92) | - | ||
| (7,512) | (7,136) | ||
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Net current liabilities | (1,464) | (2,705) | ||
Non-current liabilities |
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Borrowings | (3,901) | (5,890) | ||
Financial liabilities at fair value through profit or loss | (593) | (1,422) | ||
Provisions | (185) | (145) | ||
Deferred tax | (863) | (1,046) | ||
| (5,543) | (8,503) | ||
Net assets | 8,282 | 8,067 | ||
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Equity |
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Share capital | 2,056 | 1,841 | ||
Share premium account | 3,463 | 3,276 | ||
Capital conversion reserve fund | 23 | 23 | ||
Retained earnings | 2,740 | 2,927 | ||
Equity attributable to equity holders of the parent | 8,282 | 8,067 |
Consolidated Statement of Changes in Equity
For the year ended 31 December 2013
Capital | |||||
Share | Share | Conversion | Retained | ||
capital | premium | Reserve | earnings | Total | |
£'000 | £'000 | £'000 | £'000 | £'000 | |
At 1 January 2012 | 1,674 | 3,229 | 23 | 3,099 | 8,025 |
Net profit for the year | - | - | - | (79) | (79) |
Total comprehensive income for the year | - | - | - | (79) | (79) |
Issue of share capital | 167 | 83 | - | - | 250 |
Transactions with owners | 167 | 83 | - | (79) | 171 |
Share issue costs | - | (36) | - | - | (36) |
Equity dividends paid (recognised directly in equity) | - | - | - | (93) | (93) |
At 31 December 2012 | 1,841 | 3,276 | 23 | 2,927 | 8,067 |
Net loss for the year | - | - | - | (79) | (79) |
Total comprehensive income for the year | - | - | - | (79) | (79) |
Issue of share capital | 215 | 190 | - | - | 405 |
Transactions with owners | 215 | 190 | - | (79) | 326 |
Share issue costs | - | (3) | - | - | (3) |
Equity dividends paid (recognised directly in equity) | - | - | - | (108) | (108) |
At 31 December 2013 | 2,056 | 3,463 | 23 | 2,740 | 8,282 |
Consolidated Cash Flow Statement
for the year ended 31 December 2013 | 2013 | 2012 | |
£'000 | £'000 | ||
Profit/(loss) on continuing activities before taxation | 763 | (218) | |
Loss on discontinued activities | (946) | 163 | |
Finance expenses | 281 | 287 | |
Finance income | (134) | - | |
Other Income | (315) | (109) | |
Unrealised gain on derivative financial instrument | 422 | 49 | |
Deferred consideration | (737) | - | |
Goodwill impairment | 216 | - | |
Depreciation - property, plant and equipment-net | 1,331 | 595 | |
1,196 | 767 | ||
Changes in working capital and provisions: | |||
Decrease/(increase) in inventories | 79 | (39) | |
Decrease in trade and other receivables | 550 | 725 | |
Increase in current liabilities held for sale | 92 | - | |
Decrease in payables | (589) | (1,155) | |
Increase in provisions | 40 | 6 | |
Cash generated from operations | 1,368 | 304 | |
R22 income received | - | 356 | |
Interest paid - bank loans and overdrafts | (236) | (215) | |
Taxation paid | (617) | (69) | |
Net cash from operating activities | 515 | 376 | |
Investing activities Payments to acquire subsidiary | (110) | (3,500) | |
Cash acquired as part of acquisition | - | 3,312 | |
Disposal of plant and equipment | 41 | - | |
Purchase of property, plant and equipment | (324) | (1,515) | |
Net cash used in investing activities | (393) | (1,703) | |
Financing activities | |||
Dividends paid to shareholders | (108) | (93) | |
Deferred consideration payments | (171) | - | |
Share issue proceeds | 405 | 250 | |
Share issue costs | (3) | (36) | |
Invoice finance receipts | 370 | 1,142 | |
Overdraft receipts | 128 | - | |
Finance lease capital repayments | (51) | (46) | |
Term loan advance | - | 900 | |
Term loan repayments | (746) | (737) | |
Net cash (used)/from in financing activities | (176) | 1,380 | |
Net (decrease)/ increase in cash and cash equivalents | (54) | 53 | |
Cash and cash equivalents and bank overdrafts, Beginning of period | 103 | 50 | |
Cash and cash equivalents end of period | 49 | 103 |
Enquiries:
Norish plc | |
Aidan Hughes, Finance Director | Telephone: + 44 1293 862 498 |
Davy | |
Anthony Farrell, Director | Telephone: + 353 1 679 6363 |