Interim Results

8 Sep 2006 11:05

Norish PLC08 September 2006 Norish plc Interim Report to Shareholders For the six months to 30 June 2006 Results Norish plc announces pre-tax profits of £0.3m for the six months ended 30 June2006. This compares with pre-tax profits of £0.9m (after net exceptional gainsof £0.7m) for the same period last year. Turnover from continuing operationsincreased by £0.7m to £5.2m. The adjusted earnings per share increased to 2.2pcompared to 1.7p for the same period last year. We started the year with high occupancy levels which have subsequently reducedacross the business. The Bury St Edmunds site did not perform as well as expected due to the loss ofstorage product from the closure of a customer's factory. We are confident thatwe will replace this lost business in the second half of the year. Our ambient food storage business experienced full occupancy for the first 6months resulting in the use of third party warehouses to help cope with theadditional volumes. This is likely to continue well into the second half of theyear. The group generated cash of £0.5m in the first half of the year to reduce thenet debt of the company to £6.7m. Outlook As is being experienced throughout industry, we are struggling to pass the fullimpact of high energy costs to our customers. Our trading environment continuesto be difficult and I would caution against over-optimism in the second half ofthe year. Board Changes Aidan Hughes was appointed to the board on the 7th September 2006 as FinanceDirector. He joined the company in 1996 and has been responsible for theCompany's finance function over the past year. He will also continue in the roleas Company Secretary. Norman Hatcliff has been appointed Managing Director. He joined the company in2000 and was appointed to the board as Operations Director in July 2005. Financial Strength Shareholders funds at 30 June 2006 were £6.3m compared with £6.1m at 31 December2005. Net debt at 30 June 2006 was £6.7m, compared with a net debt of £7.2m at31 December 2005. . Dividend The board has decided to declare an unchanged interim dividend of €1.25c (2005:€1.25c) to be payable on 27 October 2006 for those shareholders on the record asat 29 September 2006. Ted O'NeillExecutive Chairman 8 September 2006 Norish plc Consolidated Profit & Loss Account Six Months to 30 June 2006 Six months to Six months to Six months to 30 June 2006 30 June 2006 30 June 2005 •'000 £'000 £'000 (Unaudited) (Unaudited) (Unaudited) Group turnover Continuing operations 7,575 5,227 4,536 (see Note) Discontinued operations - - 1,192 (see Note) _______ _______ _______ 7,575 5,227 5,728 Cost of sales (6,630) (4,575) (5,256) _______ _______ _______ Gross profit 945 652 472 Administrative expenses (277) (191) (242) Exceptional item -reorganisation costs - - (197) _______ _______ _______Operating profitContinuing operations 668 461 134Discontinued operations (see Note) - - (101) _______ _______ _______ 668 461 33 Exceptional item - profiton sale of property - - - 858discontinued operations _______ _______ _______ (see Note) Profit on ordinaryactivities before interest 668 461 891 Interest payable lessinterest receivable (270) (186) (25) _______ _______ _______Profit on ordinaryactivities before taxation 398 275 866 Tax on profit on ordinaryactivities (138) (95) (10) _______ _______ _______Profit for the period 260 180 856 ====== ====== ====== Basic and diluted earnings per share €3.1c 2.1p 10.1pAdjusted earnings pershare; excluding goodwillamortisation and exceptionalitems. €3.2c 2.2p 1.7p Note : Discontinued operations in the prior year represented cocoa and coffeecommodity related services and non-food storage activities that werediscontinued as at the end of December 2005. Continuing operations turnover in2006 includes £0.5m in respect of premises at Felixstowe that we currentlysub-let. These premises previously operated as a non-food storage site and suchactivities form part of the discontinued operations results for the priorperiod.The unaudited financial information presented in pounds sterling as of and forthe period ended 30 June 2006 is also expressed in Euro, solely for convenience,at the rate of €1 = £0.69, the closing rate for the period. No representation ismade that the pounds sterling amounts have been, could have been or could beconverted into Euro at that or any other rate. Norish plc Consolidated Balance Sheet As at 30 June 2006 30 June 2006 30 June 2006 30 June 2005 •'000 £'000 £'000 (Unaudited) (Unaudited) (Unaudited) Fixed assets Intangible assets -goodwill 303 209 224Tangible fixedassets 18,849 13,006 5,409 ______ ______ ______ 19,152 13,215 5,633 Current assets Debtors 3,886 2,681 3,052Cash at bank and inhand 736 508 1,668 ______ ______ ______ 4,622 3,189 4,720Creditors: due within one (4,012) (2,768) (3,597) year ______ ______ ______Net current assets 610 421 1,123 ______ ______ ______Total assets lesscurrent liabilities 19,762 13,636 6,756 Creditors: due after more than (9,783) (6,750) - one year Provisions forliabilities andcharges (917) (633) (654) ______ ______ ______Net assets 9,062 6,253 6,102 ====== ====== ====== Capital and reserves Called up sharecapital 2,164 1,493 1,493Share premiumaccount 4,574 3,156 3,156Capital conversionreserve fund 33 23 23Profit and lossaccount 2,291 1,581 1,430 ______ ______ ______Shareholders' funds 9,062 6,253 6,102 ====== ====== ====== Norish plc Consolidated Cash Flow Statement Six Months to 30 June 2006 30 June 2006 30 June 2006 30 June 2005 •'000 £'000 £'000 (Unaudited) (Unaudited) (Unaudited) Net cash inflow fromoperating activities 1,103 761 768 Returns on investments andservicing of finance (270) (186) (25)Taxation 271 187 (70)Capital expenditureand financial investment (313) (216) 2,667Equity dividends paid (104) (72) (119) ______ ______ ______Net cash inflow before financing activities 687 474 3,221Financing activities (362) (250) (1,077) ______ ______ ______Increase in cash inthe period 325 224 2,144 ====== ====== ====== Reconciliation of net cash flow to movement in net (debt) / funds Increase in cash inthe period 325 224 2,144Decrease in debt 362 250 1,077 ______ ______ ______Change in net debtresulting from cash flows 687 474 3,221 Net debt at 1 January (10,458) (7,216) (1,967) ______ ______ ______Net (debt)/funds at 30 June (9,771) (6,742) 1,254 ====== ====== ====== Norish plc Adjusted Earnings per Share Six Months to 30 June 2006 30 June 2006 30 June 2006 30 June 2005 •'000 £'000 £'000 (Unaudited) (Unaudited) (Unaudited) Profit for the periodattributable to shareholders 261 180 856Goodwill amortisation 10 7 7Exceptional items (after tax at 30%where appropriate)- Reorganisation costs - - 138- Profit on sale of property - - (858) --------- --------- ---------Adjusted Earnings 271 187 143 ====== ====== ====== Weighted average number ofordinary shares 8,466,230 8,466,230 8,466,230 Adjusted earnings per share €3.2c 2.2p 1.7p ====== ======= ======== The adjusted earnings per share figure is presented in order to illustrateearnings per share on a consistent basis over time after eliminating the impactof goodwill amortisation and significantnon-recurring items. INFORMATION FOR SHAREHOLDERS Register The Company's share register and related records are maintained by ComputershareServices (Ireland) Ltd., to whom shareholder enquires, should be addressed. Their address is Heron House, Corrig Road, Sandyford Industrial Estate, Dublin18, Ireland. Telephone +353 (1) 2163100. Website The group's website can be accessed at www.norish.com This information is provided by RNS The company news service from the London Stock Exchange