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Origin Enterprises Plc  -  OGN   

Interim Results

Released 07:00 08-Mar-2018

RNS Number : 0463H
Origin Enterprises Plc
08 March 2018
 

 

Origin Enterprises plc

INTERIM RESULTS STATEMENT

Solid start to trading in seasonally quiet first half

 

8 March 2018

 

Origin Enterprises plc ('Origin' or 'the Group'), the Agri-Services group, today announces its interim results for the half year ended 31 January 2018.

 

Highlights

·    Good first half performance in seasonally quiet trading period with operating profit 12.6 per cent higher at €2.3 million

·    Improved working capital performance with a working capital cash inflow of €10.7 million for the twelve months to 31 January 2018

·    Favourable autumn and winter cropping base established for seasonally important second half

·    Bunn Fertiliser, acquired in August 2017, fully integrated in period

·    Acquisition of Belgium based fertiliser and nutrition business, Pillaert-Mekoson

·    Digital agronomy enablement through launch of new data driven information service and crop monitoring tools

·    Appointment of Rafal Prendke as CEO of the Group's Continental European Division

·    Interim dividend of 3.15 cent per share (2017: 3.15 cent per share)

 

 

Results Summary

6 months ended

31 Jan 2018

€'000

6 months ended

31 Jan 2017

€'000

 

 

Change

    €'000

 

Group revenue

 

586,909

 

564,436

 

 

22,473

Operating profit1

2,263

2,010

 

253

Associates and joint venture2

1,707

1,742

 

(35)

Total group operating profit1

3,970

3,752

 

218

Finance cost, net

(4,001)

(3,816)

 

(185)

Loss before tax1

(31)

(64)

 

33

Basic loss per share (cent)

(1.61)

(8.09)

 

6.48

Adjusted diluted earnings per share (cent)3

0.27

0.25

 

0.02

Group net debt    

171,378

161,584

 

(9,794)

Interim dividend per ordinary share (cent)

3.15

3.15

 

-

 

 

1 Before amortisation of non-ERP intangible assets and exceptional items

Profit after interest and tax

Before amortisation of non-ERP intangible assets, net of related deferred tax (2018: €2.4 million, 2017: €2.0 million) and exceptional items, net of tax (2018: €Nil, 2017: €8.5 million)

 

 

Origin Enterprises plc

 

Chief Executive Officer's comment:

 

Commenting on the results, Origin Chief Executive Officer, Tom O'Mahony said:

 

"Origin has achieved a good first half result with favourable activity levels on farm supporting a 12.6 per cent increase in Group operating profit in the seasonally quiet trading period.

 

The acquisition of Belgium based Pillaert-Mekoson in the period scales our market position in Continental Europe and provides further buy and build consolidation and growth opportunity. Our objectives for digital services enablement across Origin's customer and geographic markets were significantly advanced during the period.

 

We continue to prioritise new growth opportunity in Agri-Services while focusing on cash generation, operational and commercial effectiveness. The autumn and winter cropping profile established to date provides a solid foundation for the seasonally more important second half when over 90% of earnings are typically generated. An update on the full year outlook will be provided at the time of the announcement of the third quarter trading update on 19 June 2018."

 

 

ENDS

 

Conference Call

 

The results announcement is available on the Company website www.originenterprises.com.  There will be a live conference call at 8.30am (GMT) today.  To participate in this conference call, please dial the number below.  Participants are requested to dial in 5 to 10 minutes prior to the scheduled start time.

 

Participant access numbers:

                                                                       

Ireland:

Tel:

+353 (0)1 246 5638

UK/International:

Tel:

+44 (0)330 336 9105

 

 

 

Confirmation Code:

 

8419764

 

Replay

 

A replay of this call will be available for seven days.

 

Replay Access Code:

 

8419764

 

 

 

Replay Access Numbers:

 

 

Dublin:

Tel:

+353 (0)1 533 9810

UK/International:

Tel:

+44 (0)20 7660 0134

 

Enquiries

 

Origin Enterprises plc

 

 

Peter Dunne

 

 

Group Finance Director

Tel:

+353 (0)1 563 4959

 

 

 

Andrew Mills

 

 

Investor Relations Officer

Tel:

+353 (0)1 563 4900

 

 

 

Goodbody (ESM Adviser)    
Siobhan Wall Tel: +353 (0)1 641 6019

 

 

 

Davy (Nominated Adviser)    
Anthony Farrell Tel: +353 (0)1 614 9993
     

Numis (Stockbroker)

 

 

Stuart Skinner Tel: +44 (0)20 7260 1314

 

 

 

Powerscourt

 

 

Jack Hickey (Ireland)

Tel:

+353 (0)83 448 8339

Rob Greening (UK)

Tel:

+44 207 250 1446

 

 

 

  

 

About Origin Enterprises plc

 

Origin Enterprises plc is a focused Agri-Services group providing specialist On-Farm Agronomy Services, Digital Agricultural Services and the supply of crop technologies and inputs. The Group has leading market positions in Ireland, the United Kingdom, Belgium, Poland, Romania and Ukraine. Origin is listed on the ESM and AIM markets of the Irish and London Stock Exchanges.

 

ESM ticker symbol:       OIZ

AIM ticker symbol:        OGN

Website:                       www.originenterprises.com

INTERIM RESULTS STATEMENT

 

Financial Review - Summary

 

 

6 months ended

31 Jan 2018

€'000

 

6 months ended

31 Jan 2017

€'000

 

 

 

 

Group revenue

586,909

 

564,436

Operating profit1

2,263

 

2,010

Associates and joint venture, net2

1,707

 

1,742

Group operating profit3

3,970

 

3,752

Finance cost, net

(4,001)

 

(3,816)

Pre-tax loss

(31)

 

(64)

Income tax credit

366

 

373

Adjusted net profit

335

 

309

 

 

 

 

Adjusted diluted earnings per share (cent)3

0.27

 

0.25

 

 

 

 

 

 

 

 

Adjusted net profit reconciliation

 

 

 

Reported net loss

(2,024)

 

(10,157)

Amortisation of non-ERP intangible assets

2,726

 

2,307

Tax on amortisation of non-ERP related intangible assets

(367)

 

(304)

Exceptional items, net of tax

       - 

 

8,463

Adjusted net profit

   335

 

   309

 

 

 

 

Adjusted diluted earnings per share (cent)3

0.27

 

0.25

 

 

Origin delivered adjusted diluted earnings per share3 for the period of 0.27 cent compared to adjusted diluted earnings per share of 0.25 cent in the corresponding period last year.  On a like for like basis (excluding the impact of currency movements and acquisitions) the underlying increase was 0.06 cent.  The Group's earnings profile is significantly weighted towards the second half of the financial year, when over 90 per cent of earnings are typically generated.

 

 

Group revenue

 

Group revenue was €586.9 million compared to €564.4 million in the corresponding period last year, an increase of 4.0 per cent.  On an underlying basis at constant currency, revenues increased by €20.3 million (3.6 per cent), reflecting increased agronomy service revenue and crop input volumes in addition to increased fertiliser prices.

 

Underlying growth in agronomy services and crop input volumes, excluding crop marketing, was 1.2 per cent in the period compared to the corresponding period last year.

 

 

Operating profit1

 

Operating profit1 from the Agri-Services business was €2.3 million compared to a profit of €2.0 million in the corresponding period last year.  On an underlying basis at constant currency the increase year on year was €0.1 million.  The performance in the seasonally quiet first half of the year was mainly attributable to the benefit of higher agronomy service revenue and crop input volumes, together with improved margins.

 

 

Associates and joint venture2

 

Origin's share of the profit after interest and taxation from associates and joint venture was in line with the prior year at €1.7million.

 

 

Net debt and financing costs

 

The Group's financial position remains strong.

 

Average net debt amounted to €222.0 million compared to €210.0 million in the prior year. Net debt at 31 January 2018 was €171.4 million compared with €161.6 million at 31 January 2017, and is 2.17 times EBITDA4 for the twelve months to 31 January 2018. The average and period end net debt increase is principally attributable to the acquisition investment spend relating to the UK-based Bunn Fertiliser ('Bunn') and the Pillaert-Mekoson Group ('Pillaert') in Belgium.

 

Net finance costs amounted to €4.0 million compared to €3.8 million in the corresponding period last year.

 

At period end our key banking covenants are as follows:

 

Banking Covenant

2018

Times

2017

Times

 

 

 

 

 

 

 

 

Net debt to EBITDA

Maximum 3.5

2.17

1.95

 

 

 

 

EBITDA to net interest

Minimum 3.0

11.24

11.51

 

 

Working capital

 

Following the seasonal investment in working capital in the period, the net cash outflow from operating activities was €97.5 million (2017: €140.1 million) and there was an increase of €92.6 million in working capital (2017: €129.3 million). The reduction in year on year net working capital outflow reflects an underlying improvement in working capital utilisation which more than offsets the increased working capital investment associated with the Bunn and Pillaert acquisitions.

  

 

Dividend

 

An interim dividend of 3.15 cent per share will be paid on 20 April 2018 to shareholders on the register on 6 April 2018.

  

 

1 Operating profit and Group operating profit are stated before amortisation of non-ERP intangible assets and exceptional items

Profit after interest and tax

Before amortisation of non-ERP intangible assets, net of related deferred tax (2018: €2.4 million, 2017: €2.0 million) and exceptional items, net of tax (2018: €Nil, 2017: €8.5 million)

Net debt/EBITDA ratio as per the requirements of the Group's syndicated bank loan agreement

Review of Operations

 

Commentary is on a constant currency basis throughout

 

Ireland and the United Kingdom

 

 

 

 

Change on prior year

 

2018

€m

2017

€m

Change

%

Underlying3

%

 

 

 

 

 

Revenue

377.5

354.9

6.4%

5.0%

Operating profit1

1.2

0.9

35.4%

24.5%

 

 

 

 

 

Associates and joint venture2

1.7

1.7

-

-

 

1 Before amortisation of non-ERP intangible assets and exceptional items

2 Profit after interest and tax

3  Excluding currency movements and the impact of acquisitions

 

           

 

Underlying agronomy service and crop input volume growth was 0.4 per cent in the period compared to the corresponding period last year which benefited from the earlier timing of fertiliser demand. On an underlying basis at constant currency there was a 24.5% per cent increase in operating profit, driven principally by higher margins reflecting an improved sales mix.

 

 

Integrated On-Farm Agronomy Services

 

The Group's Integrated Agronomy and On-Farm Services business, Agrii, achieved a satisfactory performance in the first half with all service and input portfolios maintaining solid momentum in competitive trading conditions.

 

Whilst a later harvest combined, with wet and cold conditions during September, resulted in a delayed start to field operations, overall autumn and winter planting activity was not adversely impacted. Good sowing and growing conditions in October and November enabled significant catch up in drilling activity and crops are generally well established ahead of the spring growing season.

 

Total autumn and winter plantings for the principal combinable crops are estimated to be marginally above last year at 2.8 million hectares. Total autumn, winter and spring plantings for the 2018 growing season are forecasted to be in line with last year at 4.5 million hectares.

 

The business continues to embed new organisational design changes successfully throughout its operations as part its overall performance improvement agenda.

 

 

Digital Agricultural Services

 

Digital Agricultural Services performed satisfactorily in the period, recording both profit and margin momentum underpinned by increased software service revenue.

 

Significant progress was achieved in the period to broaden and enhance Origin's overall customer value and service offering. This organisational and product development activity has culminated in the launch of a new digital platform to coincide with the main second half trading period, called Contour.

 

Contour is a new digital information service which incorporates an integrated suite of whole farm and field level crop monitoring tools. Contour brings farmers and agronomists closer together by providing highly functional and shared applications which deliver real time content to support in-field decision making. Contour also provides greater empowerment to our agronomists by creating more opportunity for technical conversations with less time required for physical field observation activity.

 

The development of Origin's digital products and services proposition, alongside the Group's established sector positions in crop technology and serviced farmer relationships, will enable the rapid delivery of more targeted and localised crop advice and agronomy recommendations at field level. This will provide opportunity to increase the number of our serviced hectares of existing and new customers.

 

 

Business-to-Business Agri-Inputs

 

Business-to-Business Agri-Inputs recorded a satisfactory result in the period, with an improved performance from Feed and Amenity set against a lower underlying contribution from Fertiliser. 

 

 

Fertiliser

 

Excluding the impact of the Bunn acquisition, the Group recorded lower sales volumes in the first six months of the financial year. Fertiliser demand in 2018 is reflecting a more normal sales offtake pattern, with primary producers planning a higher proportion of their procurement requirements in the second half of the financial year. Sales margins continue to be positively supported by growth in sales of differentiated fertiliser and bespoke nutrition applications.

 

Bunn has performed in line with expectations in the first six months, with the business fully integrated in the period. Procurement, sales and customer management functions are centralised, with the blending and distribution facilities fully operational under Origin protocols.

 

 

Amenity

 

Origin Amenity achieved a good result in the period as new go-to-market strategies drove strong early season service and volume growth into the speciality and professional sectors. The acquisitions completed in 2016 and 2017 maintained solid momentum in the period as they continue to provide new service and customer extension.

 

 

Feed Ingredients

 

Feed Ingredients continues to perform well, with the result in the period principally supported by higher volumes. Sustained demand levels are reflecting the impact of fodder shortages and the extended period of housing of animals due to poor ground and grazing conditions. Forward buying momentum was positive in the first six months with customers taking advantage of generally favourable pricing opportunity.

 

Continental Europe1

 

 

 

 

Change on prior year

 

2018

€m

2017

€m

Change

%

Underlying3

%

 

 

 

 

 

Revenue

121.6

108.5

12.1%

14.7%

Operating profit2

0.9

0.7

28.5%

24.9%

 

Excluding crop marketing. While crop marketing has a significant impact on revenue, its impact on operating profit is insignificant.  An analysis of revenues, profits and margins attributable to agronomy services and inputs more accurately reflects the underlying drivers of business performance.

2  Before amortisation of non-ERP intangible assets and exceptional items

3  Excluding currency movements and the impact of acquisitions

 

           

 

Underlying business volume growth was 3.9 per cent in the period compared to the corresponding period last year. Overall there was a satisfactory performance in the seasonally quiet trading period, with good early season momentum in the case of value added crop technologies.

 

On an underlying basis at constant currency, there was an increase in operating profit of 24.9 per cent.

 

 

Poland

 

Poland performed well in the period, with the business achieving higher revenues and margins across the main agronomy portfolios. The result was delivered against the backdrop of a challenging operating environment for primary producers and reflects the benefit of realised efficiency gains and solid growth in differentiated agronomy packages targeted to meet farmers' individual requirements.

 

Above average rainfall in many growing regions of northern Poland delayed the completion of the harvest and curtailed new crop planting activity in the period. As a result, autumn and winter plantings are estimated to be approximately 2.9 per cent lower than the prior year at 4.6 million hectares. This shortfall is expected to be recovered through an increase in spring plantings leaving the total cropping area for the growing year broadly equivalent to last year at 8.1 million hectares.

 

 

Romania

 

Romania delivered a satisfactory result in the period with performance underpinned by increased volumes supported by new customer gains delivered against the backdrop of competitive trading conditions. Specialised nutrition portfolios grew solidly in the period reflecting the business meeting the increased demand from primary producers as this market develops. 

 

The development of enhanced technical sales support remains an area of focus for the business together with the advancement of our knowledge transfer infrastructure through our dedicated research and development function, Agricultura Plus. This function leverages knowledge from across our geographies, to localise solutions for the Romanian market. In addition, our digital offering has gained solid momentum with encouraging initial uptake across the market.

 

The total sown area for the principal autumn and winter crops is estimated to be in line with the prior year at 3.2 million hectares. The cropping area is well established and in generally good condition, notwithstanding some localised challenges encountered by unseasonally dry weather at the planting stage. Combined winter and spring plantings for the growing season as a whole are currently estimated to be in line with last year at 8.4 million hectares.

 

 

Ukraine

 

Ukraine achieved a solid performance in the seasonally quiet first half of the year against the backdrop of currency volatility and sustained input price inflation. The result in the period was primarily driven by an improved sales mix of value added technologies. The business continues to benefit from new customer gains with an increased level of sales commitments achieved ahead of the main seasonal activity in the second half.

 

Trading conditions are highly competitive with primary producers firmly focused on crop investment return and flexible financing solutions.

 

Autumn and winter crop plantings are estimated to be in line with the prior year at 7.8 million hectares with crops generally well established and in good condition. Total autumn, winter and spring plantings are currently forecast at 22.7 million hectares against 22.4 million hectares for the prior year.

 

 

Corporate development

 

In August 2017 the Group completed the acquisition of Bunn in the United Kingdom. Bunn is a leading provider of prescription fertiliser blends and nutrition management systems servicing arable, grassland and horticultural farm enterprises.

 

In January 2018 Origin announced the completion of the acquisition of the Belgian based Pillaert. Headquartered in Ghent, Pillaert is a leading provider of standard and prescription fertilisers in Belgium and surrounding regions. Pillaert, which enjoys a brand heritage of over 50 years, markets an extensive range of technically based nutrition applications and operates a strong business-to-business and retail customer franchise.

 

The total cost of both businesses on an enterprise valuation basis inclusive of average working capital was €26 million approximately. Maintainable EBIT for the combined businesses is €3.2 million.

 

 

Board and management changes

 

In February 2018 the Group announced that Imelda Hurley, Chief Financial Officer, indicated her decision to step down from the Board on 28 February 2018 and leave the Group effective 30 April 2018. Origin has initiated a search for a new CFO and an appointment will be made in due course.

 

Peter Dunne, who joined the Group in 2016, was appointed Group Finance Director in February 2018.

 

Rafal Prendke has been appointed Chief Executive Officer of the Continental European Division of Origin ('Continental Europe' or 'the Division').  

 

Rafal joined Origin in 2015 as CEO of Dalgety Polska. He has been the driving force behind the creation of the leading agronomy services and input distribution business in Poland under the Agrii brand.

 

Continental Europe incorporates the Group's operations in Belgium, Poland, Romania and Ukraine which have sales revenue of over €0.6 billion and 1,100 employees approximately. The establishment of the Division last year optimally leverages Group and in-country organisational strengths to spearhead future business development, technical innovation and growth.

 

 

Outlook

 

Sector sentiment currently remains stable against an improved short term planning environment for primary food producers. The Group is well positioned to respond to current market conditions, and the solid start to the seasonally quiet first half of the financial year provides a good foundation for the seasonally more important second half when over 90 per cent of earnings typically arise.

 

A further update will be provided at the timing of the announcement of the third quarter trading update on 19 June 2018.

 

 

ENDS

 

 

 

Origin Enterprises plc

 

Condensed Interim Consolidated Income Statement       

for the six months ended 31 January 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months

ended

January

2018

Total

€'000

 

 Six months

ended

January

2017

Total

€'000

 

Year

ended

 July

2017

Total

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes

 

 

 

Note 5

 

Note 5

 

 

 

 

 

 

 

 

 

Revenue

 

3

 

586,909

 

564,436

 

1,528,468

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

(511,273)

 

(493,556)

 

(1,297,009)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

75,636

 

70,880

 

231,459

 

 

 

 

 

 

 

 

 

Operating costs

 

 

 

(76,099)

 

(81,555)

 

(178,811)

 

 

 

 

 

 

 

 

 

Share of profit of associates and joint venture

 

 

 

1,707

 

1,742

 

4,366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit/(loss)

 

3

 

1,244

 

(8,933)

 

57,014

 

 

 

 

 

 

 

 

 

Finance income

 

 

 

602

 

262

 

703

 

 

 

 

 

 

 

 

 

Finance expense

 

 

 

(4,603)

 

(4,078)

 

(7,617)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/profit before income tax

 

 

 

(2,757)

 

(12,749)

 

50,100

 

 

 

 

 

 

 

 

 

Income tax credit/(expense)

 

 

 

733

 

2,592

 

(4,480)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/profit attributable to equity shareholders

 

 

 

(2,024)

 

(10,157)

 

45,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months

 

 Six months

 

Year

 

 

 

 

ended

 

ended

 

ended

 

 

 

 

January

 

January

 

 July

 

 

 

 

2018

 

2017

 

2017

 

 

 

 

 

 

 

 

 

Basic (loss)/earnings per share

 

4

 

(1.61c)

 

(8.09c)

 

36.33c

 

 

 

 

 

 

 

 

 

Diluted (loss)/earnings per share

 

4

 

(1.61c)

 

(8.09c)

 

36.15c

 

 

 

 

Origin Enterprises plc

 

Condensed Interim Consolidated Statement of Comprehensive Income

for the six months ended 31 January 2018

 

 

 Six months

ended

January

2018

€'000

 

 Six months

ended

January

2017

€'000

 

Year

ended

July

2017

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/profit for the period

(2,024)

 

(10,157)

 

45,620

 

 

 

 

 

 

Other comprehensive (expense)/income

 

 

 

 

 

Items that are not reclassified subsequently to the Group income statement:

 

 

 

 

 

Group/Associate defined benefit pension obligations

 

 

 

 

 

- remeasurements of Group's defined benefit pension schemes

2,205

 

(777)

 

3,407

- deferred tax effect of remeasurements

(365)

 

193

 

(519)

- share of remeasurements on associate's defined benefit pension schemes

 

-

 

 

(3,058)

 

 

(614)

- share of deferred tax effect of remeasurements - associates

-

 

551

 

135

 

 

 

 

 

 

Items that may be reclassified subsequently to the Group income statement:

 

 

 

 

 

Group foreign exchange translation details

 

 

 

 

 

- exchange difference on translation of foreign operations

(948)

 

(2,489)

 

(10,674)

 

 

 

 

 

 

Group/Associate cash flow hedges

 

 

 

 

 

- effective portion of changes in fair value of cash flow hedges

(3,243)

 

1,566

 

(2,025)

- fair value of cash flow hedges transferred to operating costs

760

 

(1,721)

 

1,754

- deferred tax effect of cash flow hedges

436

 

95

 

86

- share of associates and joint venture cash flow hedges

(1,879)

 

(1,372)

 

(4,289)

- deferred tax effect  of share of associates and joint venture cash flow hedges

 

235

 

 

171

 

 

536

 

 

 

 

 

 

 

Other comprehensive expense for the period, net of tax

(2,799)

 

(6,841)

 

(12,203)

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive (expense)/income for the period attributable to equity shareholders

 

(4,823)

 

 

(16,998)

 

 

33,417

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

Origin Enterprises plc

 

Condensed Interim Consolidated Statement of Financial Position

as at 31 January 2018

 

 

 

 

 

January

2018

€'000

 

January

2017

€'000

 

July

2017

€'000

 

 

 

 

 

 

Notes

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Property, plant and equipment

6

 

117,418

 

103,151

 

105,271

Investment properties

 

 

9,675

 

9,675

 

9,675

Goodwill and intangible assets

7

 

215,746

 

188,973

 

205,961

Investments in associates and joint venture

8

 

32,269

 

33,092

 

34,206

Other financial assets

 

 

456

 

862

 

531

Derivative financial instruments

 

 

986

 

168

 

169

Deferred tax assets

 

 

4,663

 

7,132

 

3,475

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-current assets

 

 

381,213

 

343,053

 

359,288

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Inventory

 

 

221,046

 

202,255

 

159,245

Trade and other receivables

 

 

229,960

 

254,212

 

401,303

Derivative financial instruments

 

 

122

 

1,077

 

560

Cash and cash equivalents

 

 

85,869

 

74,499

 

162,631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

 

536,997

 

532,043

 

723,739

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

918,210

 

875,096

 

1,083,027

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

Origin Enterprises plc

 

Condensed Interim Consolidated Statement of Financial Position (continued)

as at 31 January 2018

 

 

 

 

 

January

2018

€'000

 

January

2017

€'000

 

July

2017

€'000

 

 

 

 

 

 

Notes

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

Called up share capital presented as equity

11

 

1,264

 

1,264

 

1,264

Share premium

 

 

160,422

 

160,399

 

160,422

Retained earnings and other reserves

 

 

97,855

 

78,346

 

125,043

 

 

 

 

 

 

 

 

TOTAL EQUITY

 

 

259,541

 

240,009

 

286,729

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

Interest-bearing borrowings

 

 

242,131

 

217,363

 

177,854

Deferred tax liabilities

 

 

18,272

 

18,597

 

17,553

Put option liability

 

 

5,516

 

7,998

 

5,450

Provision for liabilities

9

 

8,261

 

3,997

 

8,072

Post employment benefit obligations

 

 

813

 

7,575

 

3,646

Derivative financial instruments

 

 

-

 

100

 

204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-current liabilities

 

 

274,993

 

255,630

 

212,779

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Interest-bearing borrowings

 

 

15,116

 

18,720

 

16,227

Trade and other payables

 

 

353,028

 

343,140

 

548,130

Corporation tax payable

 

 

7,657

 

8,343

 

11,090

Provision for liabilities

9

 

4,130

 

8,071

 

7,392

Derivative financial instruments

 

 

3,745

 

1,183

 

680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

 

383,676

 

379,457

 

583,519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

658,669

 

635,087

 

796,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

 

918,210

 

875,096

 

1,083,027

 

 

 

 

 

 

 

 

 

Origin Enterprises plc

 

Condensed Interim Consolidated Statement of Changes in Equity

for the six months ended 31 January 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-

based

payment

reserve

€'000

 

 

 

Foreign

currency

translation

reserve

€'000

 

 

 

 

 

 

 

 

 

 

 

 

Capital

redemption

reserve

€'000

 

Cashflow

hedge

reserve

€'000

 

 

 

 

 

 

 

 

 

 

 

 

Share

capital

€'000

 

Share

premium

€'000

 

Treasury

shares

€'000

 

 

 

Revaluation

reserve

€'000

 

 

Re-organisation

reserve

€'000

 

 

Retained

earnings

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 August 2017

1,264

 

160,422

 

(8)

 

134

 

(2,665)

 

12,843

 

358

 

(196,884)

 

(38,076)

 

349,341

 

286,729

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(2,024)

 

(2,024)

 

Other comprehensive expense for the period

 

-

 

 

-

 

 

-

 

 

-

 

 

(3,691)

 

 

-

 

 

-

 

 

-

 

 

(948)

 

 

1,840

 

 

(2,799)

 

Share-based payment charge

-

 

-

 

-

 

-

 

-

 

-

 

80

 

-

 

-

 

-

 

80

 

Dividend paid to shareholders (Note 13)

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(22,445)

 

(22,445)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31 January 2018

1,264

 

160,422

 

(8)

 

134

 

(6,356)

 

12,843

 

438

 

(196,884)

 

(39,024)

 

326,712

 

259,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

Origin Enterprises plc

 

Condensed Interim Consolidated Statement of Changes in Equity

for the six months ended 31 January 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-

based

payment

reserve

€'000

 

 

 

Foreign

currency

translation

reserve

€'000

 

 

 

 

 

 

 

 

 

 

 

 

Capital

redemption

reserve

€'000

 

Cashflow

hedge

reserve

€'000

 

 

 

 

 

 

 

 

 

 

 

 

Share

capital

€'000

 

Share

premium

€'000

 

Treasury

shares

€'000

 

 

 

Revaluation

reserve

€'000

 

 

Re-organisation

reserve

€'000

 

 

Retained

earnings

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 August 2016

1,264

 

160,399

 

(8)

 

134

 

1,273

 

12,843

 

-

 

(196,884)

 

(27,402)

 

327,683

 

279,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(10,157)

 

(10,157)

 

Other comprehensive income/(expense) for the period

 

-

 

 

-

 

 

-

 

 

-

 

 

(1,261)

 

 

-

 

 

-

 

 

-

 

 

(2,489)

 

 

(3,091)

 

 

(6,841)

 

Share-based payment credit

-

 

-

 

-

 

-

 

-

 

-

 

121

 

-

 

-

 

-

 

121

 

Dividend paid to shareholders (Note 13)

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(22,416)

 

(22,416)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31 January 2017

1,264

 

160,399

 

(8)

 

134

 

12

 

12,843

 

121

 

(196,884)

 

(29,891)

 

292,019

 

240,009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Origin Enterprises plc

 

Condensed Interim Consolidated Statement of Cash Flows 

for the six months ended 31 January 2018

 

 

 

 Six months

ended

January 2018

€'000

 

 Six months

ended

January 2017

€'000

 

Year

ended

July 2017

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

(Loss)/profit before tax

(2,757)

 

(12,749)

 

50,100

Exceptional items

-

 

10,378

 

12,524

Finance income

(602)

 

(262)

 

(703)

Finance expense

4,603

 

4,078

 

7,617

Profit on disposal of property, plant and equipment

(128)

 

(132)

 

(229)

Share of profit of associates and joint venture

(1,707)

 

(1,742)

 

(4,366)

Depreciation of property, plant and equipment

3,498

 

3,378

 

7,099

Amortisation of intangible assets

3,972

 

3,597

 

6,718

Employee share-based payment charge

80

 

121

 

358

Pension contributions in excess of service costs

(691)

 

(821)

 

(576)

Payment of exceptional rationalisaton costs

(2,943)

 

(8,331)

 

(10,145)

Payment of employment related incentive costs

-

 

-

 

-

Payment of exceptional acquisition costs

(1,443)

 

(275)

 

(1,532)

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flow before changes in working capital

1,882

 

(2,760)

 

66,865

 

 

 

 

 

 

Increase in inventory

(60,830)

 

(40,980)

 

(2,706)

Decrease in trade and other receivables

113,500

 

171,455

 

13,765

Decrease in trade and other payables

(145,253)

 

(259,751)

 

(37,115)

 

 

 

 

 

 

 

 

 

 

 

 

Cash (absorbed)/generated from operating activities

(90,701)

 

(132,036)

 

40,809

 

 

 

 

 

 

Interest paid

(2,698)

 

(2,817)

 

(6,336)

Income tax paid

(4,073)

 

(5,222)

 

(8,166)

 

 

 

 

 

 

 

 

 

 

 

 

Cash (outflow)/inflow from operating activities

(97,472)

 

(140,075)

 

26,307

 

 

 

 

 

 

 

 

 

 

 

 

  

 

Origin Enterprises plc

 

Condensed Interim Consolidated Statement of Cash Flows (continued)

for the six months ended 31 January 2018

 

 

 

 Six months

ended

January 2018

€'000

 

Six months

ended

January 2017

€'000

 

Year

ended

July  2017

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Proceeds from sale of property, plant and equipment

1,091

 

225

 

409

Proceeds from sale of equity investment

-

 

-

 

306

Purchase of property, plant and equipment

(6,373)

 

(3,794)

 

(11,206)

Additions to intangible assets

(1,505)

 

(857)

 

(3,566)

Arising on acquisitions

(16,164)

 

(956)

 

(20,305)

Proceeds from business disposal

5,250

 

-

 

-

Payment of put option liability

-

 

(1,746)

 

(1,746)

Payment of contingent acquisition consideration

(704)

 

(3,015)

 

(3,408)

Restricted cash

-

 

2,948

 

2,948

Loan repayment from associate

84

 

-

 

-

Dividends received from associates

2,351

 

3,697

 

3,822

 

 

 

 

 

 

 

 

 

 

 

 

Cash outflow from investing activities

(15,970)

 

(3,498)

 

(32,746)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Drawdown of bank loans

60,063

 

64,050

 

24,031

Payment of dividends to equity shareholders (Note 13)

(22,445)

 

(22,416)

 

(26,371)

Increase of finance lease obligations

176

 

67

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Cash inflow/(outflow) from financing activities

37,794

 

41,701

 

(2,340)

 

 

 

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

(75,648)

 

(101,872)

 

(8,779)

 

 

 

 

 

 

Translation adjustment

141

 

(1,610)

 

(3,963)

 

 

 

 

 

 

Cash and cash equivalents at start of period

146,715

 

159,457

 

159,457

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period (Note 10)

71,208

 

55,975

 

146,715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Origin Enterprises plc

 

Notes to the Condensed Interim Consolidated Financial Statements

for the six months ended 31 January 2018

 

1    Basis of preparation

 

The Group condensed interim consolidated financial statements has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting (IAS 34), as endorsed by the EU. The condensed interim consolidated financial statements have been prepared as information for the shareholders and do not include all the information and disclosures required in the annual financial statements. They should be read in conjunction with the Group's annual financial statements in respect of the year ended 31 July 2017, which have been prepared in accordance with IFRSs. The financial statements for the year ended 31 July 2017 are available on the company's website www.originenterprises.com. Those financial statements contained an unqualified audit report.

 

The Group condensed interim consolidated financial statements for the six months ended 31 January 2018 and the comparative figures for the six months ended 31 January 2017 are unaudited and have not been reviewed by the Auditors. The summary financial statements for the year ended 31 July 2017 represents an abbreviated version of the Group's full accounts for that year.

 

The Group condensed interim consolidated financial statements are presented in euro and rounded to the nearest thousand, which is the functional currency of the parent.

 

A comprehensive review of the Group's performance for the six months ended 31 January 2018 is included in the financial highlights section included on pages 5 to 12.  The group's business is seasonal and is heavily weighted towards the second half of the financial year.

 

 

2    Accounting policies

 

The Group interim financial statements have been prepared on the basis of the accounting policies as set out on pages 79 to 84 of the Group's Annual Report for the year ended 31 July 2017.

 

The Group has not applied early adoption of any standards for which the effective date is not yet required.

 

 

3    Segment information

 

IFRS 8, 'Operating Segments', requires operating segments to be identified on the basis of internal reports that are regularly reviewed by the Chief Operating Decision Maker ('CODM') in order to allocate resources to the segments and to assess their performance. Following the acquisition of three businesses in Continental Europe during 2016 and subsequent restructuring of the Group's business, the basis of segmentation was amended during the year ended 31 July 2017 to reflect the new business model. Two operating segments have been identified: (1) Ireland and the United Kingdom and (2) Continental Europe. All comparative amounts have been restated to reflect the new basis of segmentation. The reclassification has no impact on revenue or operating profit reported by the Group.

 

Ireland and the United Kingdom

This segment includes the Group's wholly owned Irish and UK based Business-to-Business Agri-Inputs operations, Integrated Agronomy and On-Farm Services operations and Digital Agricultural Services business. In addition, this segment includes the Group's Associate and joint venture undertakings.

 

Continental Europe

This segment includes the Group's Business-to-Business Agri-Inputs operations, Integrated Agronomy and On-Farm Services operations in Belgium, Poland, Romania and Ukraine.

 

Information regarding the results of each reportable segment is included below. Performance is measured based on segment operating profit as included in the internal management reports that are reviewed by the Group's CODM, being the Origin Executive Directors. Segment operating profit is used to measure performance, as this information is the most relevant in evaluating the results of the Group's segments.

 

 

      3     Segment information (continued)

 

 

(i) Segment revenue and result

Ireland & UK

 

Continental Europe

Total Group

 

Six months

ended

January 2018

€'000

 

Six months

ended

January 2017

€'000

 

Six months

ended

January 2018

€'000

 

Six months

ended

January 2017

€'000

 

Six months

ended

January 2018

€'000

 

Six months

ended

January 2017

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

534,864

 

497,703

 

209,418

 

209,519

 

744,282

 

707,222

Less revenue from associates and joint venture

(157,373)

 

(142,786)

 

-      

 

-      

 

(157,373)

 

(142,786)

 

Revenue

 

377,491

 

 

354,917

 

 

209,418

 

 

209,519

 

 

586,909

 

 

564,436

Segment result

1,220

 

901

 

1,043

 

1,109

 

2,263

 

2,010

Profit from associates and joint ventures

1,707

 

1,742

 

-   

 

-   

 

1,707

 

1,742

Amortisation of non-ERP intangible assets

(1,876)

 

(1,422)

 

(850)

 

(885)

 

(2,726)

 

(2,307)

Operating profit before exceptional items

1,051

 

1,221

 

193

 

224

 

1,244

 

1,445

Exceptional items

-      

 

(10,149)

 

-      

 

(229)

 

-      

 

(10,378)

Operating profit / (loss)

1,051

 

(8,928)

 

193

 

(5)

 

1,244

 

(8,933)

 

 

 

 

 

 

 

 

 

 

 

 

 

(ii) Segment earnings before financing costs and tax is reconciled to reported loss before tax and loss after tax as follows:

 

 

 

 

 

 

 

 

 

 

Six months

ended

January 2018

€'000

 

Six months

ended

January 2017

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment earnings before financing and tax

 

 

 

 

 

 

 

1,244

 

(8,933)

Finance income

 

 

 

 

 

 

 

 

602

 

262

Finance expense

 

 

 

 

 

 

 

 

(4,603)

 

(4,078)

Reported loss before tax

 

 

 

 

 

 

 

 

(2,757)

 

(12,749)

Income tax credit

 

 

 

 

 

 

 

 

733

 

2,592

Reported loss after tax

 

 

 

 

 

 

 

 

(2,024)

 

(10,157)

 

 

 

 

 

 

 

 

 

 

 

 

                           

   

 

 

(iii) Segment assets

Ireland & UK

 

Continental Europe

 

Total Group

 

 

Six months

ended

January

2018

€'000

 

Six months

ended

January

2017

€'000

 

Six months

ended

January

2018

€'000

 

Six  months

ended

January

2017

€'000

 

Six months

ended

January

2018

€'000

 

Six months

ended

January

2017

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets excluding investment in associates

 

 

 

 

 

 

 

 

 

 

 

 

and joint venture and investment properties

543,842

 

517,215

 

250,003

 

241,355

 

793,845

 

 

Investment in associates and joint venture

 

 

 

 

 

 

 

 

 

 

 

 

(including other financial assets)

32,725

 

33,650

 

-   

 

-   

 

32,725

 

33,650

 

 

Segment assets

 

576,567

 

 

550,865

 

 

250,003

 

 

241,355

 

 

826,570

 

 

792,220

 

 

 

 

 

 

 

 

 

 

 

 

 

   Reconciliation to total assets as reported in Condensed Interim Consolidated Statement of Financial Position

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

85,869

 

74,499

 

Derivative financial instruments

 

 

 

 

 

 

 

 

1,108

 

1,245

 

Deferred tax assets

 

 

 

 

 

 

 

 

4,663

 

7,132

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets as reported in Condensed Interim Consolidated Statement of Financial Position

 

918,210

 

875,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(iv) Segment liabilities

Ireland & UK

 

Continental Europe

 

Total Group

 

 

Six months

ended

January

2018

€'000

 

Six months

ended

January

2017

€'000

 

Six months

ended

January

2018

€'000

 

Six  months

ended

January

2017

€'000

 

Six months

ended

January

2018

€'000

 

Six months

ended

January

2017

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment liabilities

 

259,920

 

 

260,210

 

 

111,828

 

 

110,571

 

 

371,748

 

 

370,781

 

 

Reconciliation to total liabilities as reported in Condensed Interim Consolidated Statement of Financial Position

 

 

Interest-bearing loans and liabilities

 

 

 

 

 

 

 

 

257,247

 

236,083

 

Derivative financial instruments

 

 

 

 

 

 

 

 

3,745

 

1,283

 

Current and deferred tax liabilities

 

 

 

 

 

 

 

 

25,929

 

26,940

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities as reported in Condensed Interim Consolidated Statement of Financial Position

 

658,669

 

635,087

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

4   (Loss)/earnings per share

 

Basic loss per share

 

 

Six months

ended

January

2018

€'000

 

Six months

ended

January

2017

€'000

 

 

 

 

 

 

 

 

 

 

 

 

    Loss for the financial period attributable to equity shareholders

(2,024)

 

(10,157)

 

 

 

 

 

'000

 

'000

 

 

 

 

    Weighted average number of ordinary shares for the period

125,582

 

125,578

 

 

 

 

 

Cent

 

Cent

 

 

 

 

    Basic loss per share

(1.61)

 

(8.09)

                                                                                                                                                                                       

 

 

        Diluted loss per share

Six months

ended

January

2018

€'000

 

Six months

ended

January

2017

€'000

 

 

 

 

 

 

 

 

 

 

 

 

    Loss for the financial period attributable to equity shareholders

(2,024)

 

(10,157)

 

 

 

 

 

'000

 

'000

 

 

 

 

        Weighted average number of ordinary shares used in basic calculation

125,582

 

125,578

        Impact of shares

77

 

 -

        Impact of SAYE scheme

531

 

495

    Weighted average number of ordinary shares (diluted) for the period

126,190

 

126,073

 

 

 

 

 

Cent

 

Cent

 

 

 

 

        Diluted loss per share (1)

(1.61)

 

(8.09)

 

(1)    The impact from potential shares are anti-dilutive for the earnings per share.

 

   

 

4   (Loss)/earnings per share (continued)

 

 

Adjusted basic earnings per share

 

Six months

ended

January

2018

€'000

 

Six months

ended

January

2017

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the financial period attributable to equity shareholders

 

(2,024)

 

(10,157)

 

Amortisation of non-ERP related intangible assets

 

2,726

 

2,307

 

Tax on amortisation of non-ERP related intangible assets

 

(367)

 

(304)

 

Exceptional items, net of tax

 

-   

 

8,463

 

Adjusted basic earnings

 

335

 

309

 

 

 

 

 

 

 

 

 

Cent

 

Cent

 

Adjusted basic earnings per share

 

0.27

 

0.25

 

 

 

 

 

 

 

Total adjusted basic earnings - as above

 

335

 

309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cent

 

Cent

 

Total adjusted diluted earnings per share

 

0.27

 

0.25

 

 

 

 

 

 

 

The calculation of basic adjusted earnings per share is based on the weighted average number of shares in issue during the period of 125,581,696 (31 January 2017: 125,578,447). The weighted average number of shares used in the calculation of adjusted diluted earnings/(loss) per share is 126,190,275 (31 January 2017: 126,073,154).

 

 

 

5   Condensed Interim Consolidated Income Statements for the six months ended 31 January 2017 and year ended 31 July 2017

 

        An analysis of the Condensed Interim Consolidated Income Statement (including exceptional items) for the six months ended 31 January 2017 and year ended 31 July 2017 is set out below.

 

 

    Six months ended 31 January 2017

 

 

 

 

Six months

ended

January

2017 Pre-

Exceptional

€'000

 

Six months

ended

January

2017

Exceptional

€'000

 

Six months

ended

January

2017

Total

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

564,436

 

-

 

564,436

 

 

 

Cost of sales

 

(493,556)

 

-

 

(493,556)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

70,880

 

-

 

70,880

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs

 

(71,177)

 

(10,378)

 

(81,555)

 

 

 

Share of profit of associates and joint venture

 

 

1,742

 

 

-

 

 

1,742

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss)

 

1,445

 

(10,378)

 

(8,933)

 

 

 

 

 

 

 

 

 

 

 

 

Finance income

 

262

 

-

 

262

 

 

 

Finance expense

 

(4,078)

 

-

 

(4,078)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income tax

 

(2,371)

 

(10,378)

 

(12,749)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax credit

 

677

 

1,915

 

2,592

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

 

 

 

(1,694)

 

 

 

(8,463)

 

 

 

(10,157)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

5   Condensed Interim Consolidated Income Statements for the six months ended 31 January 2017 and year ended 31 July 2017 (continued)

 

 

    Year ended 31 July 2017

 

 

 

 

Year

ended

July

2017 Pre-

Exceptional

€'000

 

Year

ended

July

2017

Exceptional

€'000

 

Year

ended

July

2017

Total

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

1,528,468

 

-

 

1,528,468

 

 

Cost of sales

 

(1,297,009)

 

-

 

(1,297,009)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

231,459

 

-

 

231,459

 

 

 

 

 

 

 

 

 

 

 

Operating costs

 

(166,287)

 

(12,524)

 

(178,811)

 

 

Share of profit of associates and joint venture

 

 

4,366

 

 

-

 

 

4,366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

69,538

 

(12,524)

 

57,014

 

 

 

 

 

 

 

 

 

 

 

Finance income

 

703

 

-

 

703

 

 

Finance expense

 

(7,617)

 

-

 

(7,617)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before income tax

 

62,624

 

(12,524)

 

50,100

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

(7,702)

 

3,222

 

(4,480)

 

 

 

 

 

 

 

 

 

 

 

Profit for the year

 

 

54,922

 

 

(9,302)

 

 

45,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6    Property, plant and equipment

 

 

January

2018

€'000

 

July

2017

€'000

 

 

 

 

 

 

 

 

Net book value

 

 

 

At beginning of period

105,271

 

102,796

Arising on acquisitions (Note 12)

10,087

 

388

Additions

6,215

 

11,816

Disposals

(1,413)

 

(180)

Depreciation charge

(3,498)

 

(7,099)

Translation adjustments

756

 

(2,450)

 

 

 

 

 

 

 

 

At end of period

117,418

 

105,271

 

 

 

 

 

 

 

 

 

 

       

7     Goodwill and intangible assets

 

 

January

2018

€'000

 

July

2017

€'000

 

 

 

 

 

 

 

 

Net book value

 

 

 

At beginning of period

205,961

 

192,696

Arising on acquisitions (Note 12)

10,550

 

25,602

Additions

1,505

 

3,566

Amortisation of non-ERP intangible assets

(2,726)

 

(4,837)

ERP intangible amortisation

(1,246)

 

(1,881)

Translation adjustments

1,702

 

(9,185)

 

 

 

 

 

 

 

 

At end of period

215,746

 

205,961

 

 

 

 

 

    Included in the total goodwill and intangible assets above is goodwill of €138,504,000 (July 2017: €128,701,000). There have been no indicators of impairment in the first half of the year therefore a full assessment of the carrying value of goodwill and intangibles will be carried out in the second half of the year.

 

 

8      Investments in associates and joint venture

 

 

January

2018

€'000

 

 

July

              2017

             €'000

 

 

 

 

 

 

 

 

At beginning of period

34,206

 

39,008

Share of profits after tax

1,707

 

4,366

Dividends received

(2,351)

 

(3,822)

Share of other comprehensive expense

(1,644)

 

(4,232)

Translation adjustments

351

 

(1,114)

 

 

 

 

 

 

 

 

At end of period

32,269

 

34,206

 

 

 

 

 

 

 

 

 

 

   

9   Provision for liabilities 

 

        The estimate of provisions is a key judgement in the preparation of the Interim condensed financial statements.

 

 

 

January

2018

€'000

 

 

July

              2017

             €'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At beginning of period

15,464

 

13,778

 

 

Arising on acquisition

-

 

5,129

 

 

Provided in period

1,323

 

11,590

 

 

Paid in period

(3,649)

 

(13,560)

 

 

Released in period

(990)

 

(977)

 

 

Unwinding of fair value discount

74

 

-

 

 

Translation adjustments

169

 

(496)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At end of period

12,391

 

15,464

 

 

 

 

 

 

 

 

 

 

 

                 

 

Provisions for liabilities relate to various operating and employment related costs and contingent acquisition consideration that arose on various acquisitions.

 

  

 

10

Analysis of net debt

 

 

 

 

 

 

 

 

 

 

 

 

31 July

2017

€'000

 

Cash flow

€'000

 

 

Non-cash

movements

€'000

 

 

Translation

adjustment

€'000

 

  

31 January

2018

€'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

162,631

 

(76,875)

 

-

 

113

 

85,869

 

Overdraft

(15,916)

 

1,227

 

-

 

28

 

(14,661)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

146,715

 

(75,648)

 

-

 

141

 

71,208

 

 

 

 

 

 

 

 

 

 

 

 

Finance lease obligations

(739)

 

(176)

 

-

 

34

 

(881)

 

Loans

(177,426)

 

(60,063)

 

(466)

 

(3,750)

 

(241,705)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net debt

(31,450)

 

(135,887)

 

(466)

 

(3,575)

 

(171,378)

 

 

 

 

 

 

 

 

 

 

 


          The loans included above are unsecured and the facility extends to May 2022.

 

 

 

11

Share capital

January

2018

€'000

 

July

2017

€'000

 

 

 

 

 

 

 

 

 

 

 

 

Authorised

 

 

 

 

250,000,000 ordinary shares of €0.01 each (i)

2,500

 

2,500

 

 

 

 

 

 

Allotted, called up and fully paid

 

 

 

 

126,378,777 ordinary shares of €0.01 each (i)

1,264

 

1,264

 

(i)     Ordinary shareholders are entitled to dividends as declared and each ordinary share carries equal voting rights at meetings of the Company.

 

 

 

12   Acquisition of subsidiary undertakings

 

     During the period, the Group completed the acquisition of the fertiliser activities and certain assets of Bunn Fertilisers Limited ('Bunn) in the United Kingdom and the acquisition of Pillaert-Mekoson Group ('Pillaert-Mekoson') in Belgium.  These acquisitions complement the Group's prescription fertilisers and speciality nutrition business.

 

         Details of the acquisitions are as follows:

 

(i)            On 10 August 2017 the Group completed the acquisition of the fertiliser activities and certain assets of Bunn. Based in the United Kingdom, Bunn is a leading producer of prescription fertiliser blends and nutrition management systems servicing the arable grassland and horticulture sector.

 

(ii)            On 23 January 2018 the Group announced it had acquired 100% of Pillaert-Mekoson. Based in Belgium, Pillaert-Mekoson markets an extensive range of technically based nutrition applications and operates a strong business and retail customer franchise.

 

Details of the net assets acquired and goodwill arising from the business combinations are as follows:

 

 

 

 

 

 

 

 

 

Fair

value

€'000

 

 

Assets

 

Non-current

 

 

Property, plant and equipment

 

10,087

Intangible assets

 

2,195

 

 

 

Total non-current assets

 

12,282

 

 

 

Current assets

 

 

Inventory

 

1,919

Trade receivables

 

4,578

Other receivables

 

508

 

 

 

Total current assets

 

7,005

 

 

 

Liabilities

 

 

Trade and other payables

 

(6,969)

Corporation tax

 

(371)

Deferred tax liability

 

(604)

 

 

 

Total liabilities

 

(7,944)

 

 

 

Total identifiable net assets at fair value

 

11,343

Goodwill arising on acquisition

 

8,355

 

Total net assets acquired

 

 

19,698

 

 

 

Consideration satisfied by:

 

 

Cash consideration

 

22,152

Cash acquired

 

(5,988)

Net cash outflow

 

16,164

 

 

 

Working capital/net debt adjustment

 

3,534

 

 

 

Total consideration

 

19,698

               

 

The fair values presented in this note are based on provisional valuations due to the close proximity of the transactions to the end of the half year period.

 

 

13    Dividends

 

On 15 December 2017 a final dividend of 17.85 cent per ordinary share was paid in respect of the year ended 31 July 2017 which when combined with the interim dividend of 3.15 cent per ordinary share brings the total dividend for the year ended 31 July 2017 to 21 cent per ordinary share.

 

An interim dividend of 3.15 cent (2017: 3.15 cent) per ordinary share will be paid on 20 April 2018 to shareholders on the register on 6 April 2018.  These condensed interim consolidated financial statements do not reflect this dividend payable.

 

 

14    Taxation

 

The taxation credit for the interim period is an estimate based on the expected full year effective tax rate on full year profits.

 

 

15   Contingent liabilities

 

The Group is not aware of any major changes with regard to contingent liabilities in comparison with the situation as of 31 July 2017.

 

 

16   Financial commitments  

 

The Group has a financial commitment of €7.8 million attributable to a strategic partnership with University College Dublin ('UCD'). The commitment is over a four year period.

 

 

17   Related party transactions

 

 Related party transactions occurring in the period were similar in nature to those described in the 2017 Annual Report.

 

 

18    Release of half yearly condensed interim consolidated financial statements

 

The Group condensed interim consolidated financial information was approved for release by the Board on 7 March 2018.

 

 

19    Distribution of Interim Report

 

This interim report is available on the Group's website (www.originenterprises.com). A printed copy is available to the public at the Company's registered office.

 

 

 

 

 

 

 

 

 

 


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