12 Sep 2014 08:59
Norish plc
Interim results 2014
Results
Norish plc (AIM: NSH), is pleased to announce its interim results for the six months ended 30 June 2014.
Highlights
· In May the Group raised £2.1 million (gross) through a Placing and Open Offer
· In April the Group agreed a term loan for £1.5 million
· The funds raised allowed the Group to complete the purchase of the Birmingham site for £2.4m gross and to invest £663,000 increasing its blast freezing facilities
· The acquisition of the Birmingham site will eliminate rental and landlord costs of £400,000 per annum
· The investment in blast freezing facilities will eliminate annual rental costs of £164,000
· Turnover from continuing temperature controlled business increased to £5.8m from £5.5m
· The Group entered into a new three year agreement with its largest customer in April 2014
· Net debt at £8.4 million which is up from £8.3 million
· Net assets for the period were £10.3 million compared to £8.3 million in 2013
· The Group established its new Republic of Ireland based commodity trading business in July 2014
Current trading and outlook
Turnover was down 2% to £11.1 million in the period. This was attributable to a reduction in turnover from Town View Foods of 8% to £5.4 million as the business continues to recover from the horse meat scandal which hit in February 2013. Turnover from continuing temperature controlled business increased to £5.8m from £5.5m
The Group continues to be well positioned to benefit from opportunities in the Chinese Pork Export Market in the second half of 2014. The sale of the York site is progressing and Management expect that the sale will complete by December 2014. The Leeds site is being marketed for sale. Both sites are classified as held for sale at the period end.
Management remain confident that full year results will be in line with expectations.
Dividend
The board does not recommend the payment of an interim dividend.
Ted O'Neill
Chairman
Norish plc | ||||
Consolidated income statement | ||||
For the six months ended 30 June 2014 | ||||
Six months | Six months | Year | ||
ended | ended | ended | ||
30 June | 30 June | 31 December | ||
2014 | 2013 | 2013 | ||
(Unaudited) | (Unaudited) | (Audited) | ||
£'000 | £'000 | £'000 | ||
Continuing operations | ||||
Revenue | 11,144 | 11,422 | 22,811 | |
Cost of sales | (10,602) | (10,776) | (21,744) | |
Gross profit | 542 | 646 | 1,067 | |
Other (expense)/income | - | (25) | 315 | |
Administrative expenses | (236) | (231) | (472) | |
Operating profit from continuing operations | 306 | 390 | 910 | |
Finance expenses - interest paid | (118) | (110) | (236) | |
Finance expenses - fair value gain/(loss) swaps/caps | - | 73 | 134 | |
Finance expenses - notional interest | (24) | (54) | (45) | |
Profit on continuing activities before taxation | 164 | 299 | 763 | |
Tax on profit/(loss) on ordinary activities | (41) | (74) | 104 | |
Profit for the period attributable to owners of the parent from continuing operations | 123 | 225 | 867 | |
Loss from discontinued activities | (16) | (4) | (946) | |
Profit/(loss) for the period | 107 | 221 | (79) | |
Other comprehensive income | - | - | - | |
Total comprehensive income/(expense) for the period attributable to owners of the parent | 107 | 221 | (79) | |
Earnings per share expressed in pence per share: | ||||
From continuing operations - basic | 1.1p | 2.2p | 8.4p | |
- diluted | 1.1p | 2.2p | 8.4p | |
From discontinued operations - basic | (0.1)p | 0p | (9.1)p | |
- diluted | (0.1)p | 0p | (9.1)p | |
Weighted average number of diluted ordinary shares | 11,069,070 | 10,146,185 | 10,371,347 |
Norish plc | |||
Interim balance sheet | |||
As at 30 June 2014 | |||
As at | As at | As at | |
30 June | 30 June | 31 December | |
2014 | 2013 | 2013 | |
(Unaudited) | (Unaudited) | (Audited) | |
£'000 | £'000 | £'000 | |
Assets | |||
Non current assets | |||
Goodwill | 2,338 | 2,554 | 2,338 |
Property, plant and equipment | 15,987 | 13,080 | 12,951 |
Derivate financial instruments | - | 397 | - |
18,325 | 16,031 | 15,289 | |
Current assets | |||
Trade and other receivables | 3,886 | 3,877 | 3,560 |
Inventories | 8 | 107 | 5 |
Cash and cash equivalents | 109 | 42 | 49 |
Assets of disposal group classified as held for sale | 2,458 | 3,224 | 2,434 |
6,461 | 7,250 | 6,048 | |
Liabilities | |||
Current liabilities | |||
Trade and other payables | (4,005) | (3,247) | (3,313) |
Financial Liabilities at fair value through profit or loss | (172) | (267) | (172) |
Current tax liabilities | (69) | (337) | (28) |
Borrowings | (1,762) | (2,885) | (2,531) |
Borrowings of disposal group classified as held for sale | (1,300) | (1,300) | (1,375) |
Liabilities of disposal group classified as held for sale | (95) | (105) | (93) |
(7,403) | (8,141) | (7,512) | |
Net current assets | (942) | (891) | (1,464) |
Non-current liabilities | |||
Borrowings | (5,485) | (4,193) | (3,901) |
Financial Liabilities at fair value through profit or loss | (546) | (1,423) | (593) |
Provisions | (200) | (190) | (185) |
Deferred tax | (863) | (1,046) | (864) |
(7,094) | (6,852) | (5,543) | |
Net assets | 10,289 | 8,288 | 8,282 |
Equity | |||
Share capital | 3,280 | 1,841 | 2,056 |
Share premium account | 4,139 | 3,276 | 3,463 |
Capital conversion reserve fund | 23 | 23 | 23 |
Retained earnings | 2,847 | 3,148 | 2,740 |
Equity attributable to equity holders of the parent | 10,289 | 8,288 | 8,282 |
Norish plc | |||||
Consolidated statement of changes in equity | |||||
For the six months ended 30 June 2014 | |||||
Capital | |||||
Share | Share | Conversion | Retained | ||
capital | premium | Reserve | Earnings | Total | |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
£'000 | £'000 | £'000 | £'000 | £'000 | |
At 1 January 2013 | 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 |
Net loss for the period | - | - | - | (300) | (300) |
Issue of share capital | 215 | 190 | - | - | 405 |
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 |
Net profit for the period | - | - | - | 107 | 107 |
Issue of share capital | 1,224 | 857 | - | - | 2,081 |
Share issue costs | - | (181) | - | - | (181) |
Equity dividends paid (recognised directly in equity) | - | - | - | - | - |
At 30 June 2014 | 3,280 | 4,139 | 23 | 2,847 | 10,289 |
Norish plc | |||
Consolidated cash flow statement | |||
For the six months ended 30 June 2014 | |||
Six months | Six months | Year | |
Ended | ended | Ended | |
30 June | 30 June | 31 December | |
2014 | 2013 | 2013 | |
(Unaudited) | (Unaudited) | (Audited) | |
£'000 | £'000 | £'000 | |
Profit on continuing activities before taxation | 164 | 299 | 763 |
Loss on discontinued activities | (16) | (4) | (946) |
Finance expenses | 142 | 164 | 281 |
Finance income | - | (73) | (134) |
Unrealised gain on derivative financial instrument | - | 25 | 422 |
Deferred consideration | - | - | (737) |
Goodwill impairment | - | - | 216 |
Depreciation - property, plant and equipment | 287 | 326 | 1,331 |
577 | 737 | 1,196 | |
Changes in working capital: | |||
(Increase)/decrease in inventories | (3) | (23) | 79 |
(Increase)/decrease in trade and other receivables | (350) | 207 | 550 |
Increase in current liabilities held for sale | 2 | - | 92 |
Increase/(decrease) in payables | 692 | (552) | (589) |
Increase in provisions | 15 | 45 | 40 |
Cash generated from operations | 933 | 414 | 1,368 |
Interest paid - bank loans and overdrafts | (118) | (110) | (236) |
Taxation paid | - | (303) | (617) |
Net cash from operating activities | 815 | 1 | 515 |
Investing activities | |||
Payments to acquire subsidiary | - | (110) | (110) |
Disposal of plant | - | - | 41 |
Purchase of property, plant and equipment | (3,323) | (171) | (324) |
Net cash used in investing activities | (3,323) | (281) | (393) |
Financing activities | |||
Dividends paid to shareholders | - | - | (108) |
Deferred consideration payments | (71) | (53) | (171) |
Share issue proceeds | 2,081 | - | 405 |
Share issue costs | (181) | - | (3) |
Invoice finance (payments)/receipts | (892) | 661 | 370 |
Overdraft receipts | (128) | - | 128 |
Finance lease capital repayments | (36) | (23) | (51) |
Finance Lease advance | 663 | - | - |
Term loan advance | 1,500 | - | - |
Term loan repayments | (367) | (366) | (746) |
Net cash used in financing activities | 2,568 | 219 | (176) |
Net increase/(decrease) in cash and cash equivalents | 60 | (61) | (54) |
Cash and cash equivalents, at beginning of period | 49 | 103 | 103 |
Cash and cash equivalents end of period | 109 | 42 | 49 |
Note: The accounting policies applied throughout the period are consistent with those applied for the year ended 31 December 2013, as set out in the 2013 Annual Report.
Enquiries:
Norish | |
Aidan Hughes, Finance Director | Telephone: + 44 1293 862 498 |
Davy | |
Anthony Farrell | Telephone: + 353 1 679 6363 |
NSH.L (NSH)