8 Mar 2013 15:00
Norish plc
Preliminary Statement of Annual Results 2012
Results
Norish plc results for the year ended 31st December 2012 as follows:
·; Turnover increased to £14.9m compared with £11.2m for 2011.
·; Turnover from Townview Foods Limited accounted for £3.2m in the period 5 October 2012 to 31 December 2012.
·; Turnover from the warehousing division (being the segments ambient storage and cold storage) increased to £11.7m from £11.2m in 2011.
·; Pre-tax losses of £55,000 (after writing off acquisition costs of £317,000 compared to pre-tax profits of £406,000 for 2011).
·; Net assets increased from £8m to £8.1m compared with 2011.
·; Net debt increased to £8m from £6.8m mainly due to the acquisition of Townview Foods Limited.
·; Earnings per share decreased to (0.8)p from 4.3p mainly due to the acquisition costs.
Financial Strength
Shareholders funds at 31 December 2012 were £8.1m compared with £8.0m at 31 December 2011. Net debt at 31 December 2012 was £8m which increased from £6.8m as at 31 December 2011.
Operations
Our cold store business did not perform as well as last year. Although it increased its turnover, the business suffered from increased power costs and an increase in labour intensive handling activities for some of our customers.
Our ambient site at York performed below 2011 levels. It has suffered from reduced occupancy levels and throughput.
We purchased Townview Foods Limited on the 5th October 2012 which has contributed £131,000 to the profits of the group since the acquisition date.
We currently use R22 refrigeration gas at three 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 24,868 kg (2011: 44,808 kg) of re-cycled R22 at £4.05 per kg which is below the current market value. During the year we exercised a proportion of our option and sold 19,940 kg, resulting in a realised profit of £60,000. Under IAS39 we have also accounted for an unrealised profit of £49,000 on the proportion of the option still held at 31 December 2012. This is based on a fair value option price of £16.95 per kg at 31st December 2012. The quantity of gas held is expected to be in excess of our own use requirement.
Our pre-tax losses of £55,000 were adversely affected by £317,000 in respect of the acquisition costs of Townview Foods Limited.
Dividend
The board recommends the payment of a final dividend of 1.25 cent per share. This will be paid on the 25th October 2013 to those shareholders on the register on the 27th September 2013. 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 2012.
Ted O'Neill
Chairman
7 March 2013
The results herein do not represent full accounts. Full accounts for the year ended 31 December 2012, 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 2011 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 2012
| 2012 | 2011 | ||
| £'000 | £'000 | ||
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Continuing operations |
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Revenue | 14,876 | 11,213 | ||
Cost of sales | (14,018) | (10,375) | ||
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Gross profit | 858 | 838 | ||
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Other income | 109 | 190 | ||
Acquisition expenses | (317) | - | ||
Administrative expenses | (418) | (362) | ||
Operating profit from continuing operations | 232 | 666 | ||
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Finance expenses --interest paid | (215) | (186) | ||
Finance expenses - fair value loss swaps/caps | (44) | (89) | ||
Finance expenses - notional interest | (28) | - | ||
Finance income | - | 15 | ||
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Profit on continuing activities before taxation | (55) | 406 | ||
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Income taxes - Corporation tax | (33) | (80) | ||
Income taxes - Deferred tax | 9 | 36 | ||
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Profit for the period attributable to owners of the parent | (79) | 362 | ||
Other comprehensive income | - | - | ||
Total comprehensive income for the period attributable to owners of the parent | (79) | 362 | ||
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Earnings per share expressed in pence per share: |
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From continuing operations - basic | (0.8)p | 4.3p | ||
- diluted | (0.8)p | 4.3p |
Consolidated Statement of financial position
at 31 December 2012
| 2012 | 2011 | ||
| £'000 | £'000 | ||
Assets |
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Non current assets |
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Goodwill | 2,554 | 216 | ||
Property, plant and equipment | 16,299 | 15,379 | ||
Derivative financial instruments | 422 | 669 | ||
| 19,275 | 16,264 | ||
Current assets |
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Trade and other receivables | 4,244 | 2,827 | ||
Inventories | 84 | - | ||
Cash and cash equivalents | 103 | 50 | ||
| 4,431 | 2,877 | ||
Liabilities |
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Current liabilities |
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Trade and other payables | (3,904) | (2,892) | ||
Financial liabilities at fair value through profit or loss | (450) | (102) | ||
Current tax liabilities | (566) | (81) | ||
Borrowings | (2,216) | (991) | ||
| (7,136) | (4,066) | ||
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Net current liabilities | (2,705) | (1,189) | ||
Non-current liabilities |
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Borrowings | (5,890) | (5,856) | ||
Financial liabilities at fair value through profit or loss | (1,422) | - | ||
Provisions | (145) | (139) | ||
Deferred tax | (1,046) | (1,055) | ||
| (8,503) | (7,050) | ||
Net assets | 8,067 | 8,025 | ||
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Equity |
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Share capital | 1,841 | 1,674 | ||
Share premium account | 3,276 | 3,229 | ||
Capital conversion reserve fund | 23 | 23 | ||
Retained earnings | 2,927 | 3,099 | ||
Equity attributable to equity holders of the parent | 8,067 | 8,025 |
Consolidated Statement of Changes in Equity
For the year ended 31 December 2012
Capital | |||||
Share | Share | Conversion | Retained | ||
capital | premium | Reserve | earnings | Total | |
£'000 | £'000 | £'000 | £'000 | £'000 | |
At 1 January 2011 | 1,493 | 3,156 | 23 | 2,828 | 7,500 |
Net profit for the year | - | - | - | 362 | 362 |
Total comprehensive income for the year | - | - | - | 362 | 362 |
Credit in respect of employee share schemes | - | - | - | 1 | 1 |
Issue of share capital | 181 | 73 | - | - | 254 |
Equity dividends paid (recognised directly in equity) | - | - | - | (92) | (92) |
At 31 December 2011 | 1,674 | 3,229 | 23 | 3,099 | 8,025 |
Net loss 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 |
Consolidated Cash Flow Statement
for the year ended 31 December 2012 | 2012 | 2011 | |
£'000 | £'000 | ||
(Loss)/profit on continuing activities before taxation | (55) | 406 | |
Adjustments for: | |||
Finance expenses | 287 | 275 | |
Finance income | - | (15) | |
Finance expenses - notional interest | (28) | - | |
Fair value losses on interest rate swaps/caps | (44) | (89) | |
Other Income | (109) | (190) | |
Unrealised gain on derivative financial instrument | 49 | 190 | |
Depreciation - property, plant and equipment | 595 | 569 | |
Employee share schemes | - | 1 | |
695 | 1,147 | ||
Changes in working capital and provisions: | |||
Increase in inventories | (39) | - | |
Decrease/(increase) in trade and other receivables | 676 | (523) | |
(Decrease)/increase in payables | (1,034) | 425 | |
Increase/(decrease) in provisions | 6 | (370) | |
Cash generated from operations | 304 | 679 | |
R22 income received | 356 | - | |
Interest paid - bank loans and overdrafts | (215) | (186) | |
Taxation (paid)/received | (69) | 11 | |
Net cash from operating activities | 376 | 504 | |
Investing activities Payments to acquire subsidiary | (3,500) | - | |
Cash acquired as part of acquisition | 3,312 | - | |
Interest received | - | 15 | |
Purchase of property, plant and equipment | (1,515) | (564) | |
Net cash used in investing activities | (1,703) | (549) | |
Financing activities | |||
Dividends paid to shareholders | (93) | (92) | |
Share issue proceeds | 250 | 254 | |
Share issue costs | (36) | - | |
Invoice finance receipts | 1,142 | 278 | |
Finance lease funding | - | 155 | |
Finance lease capital repayments | (46) | (28) | |
Term loan advance | 900 | - | |
Term loan repayments | (737) | (666) | |
Net cash used in financing activities | 1,380 | (99) | |
Net decrease in cash and cash equivalents | 53 | (144) | |
Cash and cash equivalents and bank overdrafts, beginning of period |
| 50 | 194 |
Cash and cash equivalents end of period | 103 | 50 |
Enquiries:
Norish plc | |
Aidan Hughes, Finance Director | Telephone: + 44 1293 862 498 |
Davy | |
Ivan Murphy, Director | Telephone: + 353 1 679 6363 |