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Anpario PLC   -  ANP   

Half-year Report

Released 07:00 11-Sep-2019

Half-year Report

LONDON--(BUSINESS WIRE)--  

11 September 2019

Anpario plc
(“Anpario” or the “Group”)

Interim Results

Anpario plc (AIM:ANP), the international producer and distributor of natural animal feed additives for animal health, nutrition and biosecurity is pleased to announce its interim results for the six months to 30 June 2019.

Financial highlights

Operational highlights

Peter Lawrence, Chairman, commented:

“The board is encouraged by the continued recovery in a number of our markets which struggled during 2018. Latin America and the Middle East delivered strong performances and the United States continued its double-digit sales growth. As expected, China and certain territories in South East Asia experienced weak trading, where the impact of African Swine Fever put farmers under significant strain. As our improved profitability demonstrates, the geographic and species diversity of the Group is a major strength when facing such external challenges and we have been able to mitigate some of the impact by focusing on higher value-added products and developing more direct routes to market, which have helped to improve gross margins.

Expanding profitable sales and distribution channels around the world remains our priority. Our strong balance sheet and cash generation capability provide Anpario with a firm platform from which to invest in new products and to develop the exciting Anpario Direct opportunity. Our business development initiatives, backed by the quality and ability of our employees worldwide, give me confidence that we are in line for our full year management expectations.”

Chairman’s statement

Group sales in the six months to 30 June 2019 were broadly the same as in the equivalent period last year, after allowing for the termination of our non-core business in the Philippines in early 2018. The impact of African Swine Fever in China and the surrounding region and the US – China trade dispute created tougher trading conditions than experienced during this period last year and which affected our business in Asia. However, this was significantly offset by the very strong recovery in our Latin American and Middle East markets and continued progress in the US. These positive trends highlight the benefit of our geographic diversity and the underlying strength of the business.

Profit before tax rose 1% to £2.3m (2018: £2.2m). Basic earnings were unchanged at 9.16 pence per share while diluted earnings increased 3% to 8.88 pence per share (2018: 8.66 pence). The Board is recommending an interim dividend of 2.5 pence per share (2018: 2.2 pence) an increase of 14%. This dividend, payable on 29 November to shareholders on the register at close of business on 15 November, continues to reflect the Board’s confidence in the future of Anpario and its ability to generate cash.

Enquiries:

Anpario plc
Richard Edwards, Chief Executive Officer +44 (0)7776 417129
Karen Prior, Group Finance Director +44 (0)1909 537380

Peel Hunt LLP +44 (0)20 7418 8900
Adrian Trimmings, George Sellar

Operations

Latin America has delivered a very strong performance with sales growth of 29% compared with the same period last year. The upturn has been driven by a number of business development initiatives, particularly in Brazil, which are now beginning to produce results. Our Brazilian egg laying customers, using Orego-Stim®, have experienced improved production with additional eggs per laying hen and better egg size distribution. These benefits contribute to a significant return on investment for our customers and we expect further progress in the coming months. Mexico and Argentina also recovered well after a poor 2018, with sales growth in the period of 41% and 91% respectively. There has been renewed focus on our aquaculture efforts in the region, where we recently registered a number of products.

The USA achieved 14% sales growth compared with the same period last year with Orego-Stim® contributing significantly to the performance. Our mycotoxin binder growth was somewhat subdued due to a weaker dairy sector but the recruitment of sales personnel in California earlier this year is starting to deliver new business and we are in discussions with a number of customers about our Optomega dairy fertility product. Building on our success in Brazil with Orego-Stim®, we have recently added to our US sales team by expanding our poultry expertise, which is targeting the layer industry. Results have also been replicated in a significant trial programme commenced earlier in the year with North Carolina State University, which is one of the world’s leading institutions in rearing and egg laying research. We continue to develop the poultry broiler sector by supporting integrators with their antibiotic free programmes.

In the UK and Europe sales declined 8%. This was largely due to the closure of a customer, who we supplied with lower margin vitamin and mineral premix formulations. Excluding this customer, sales were flat with a small increase in gross profit compared to the previous year. In general, the UK market was stable following a stronger previous year where higher feed volumes and rising milk prices benefited our toxin binder range. The UK sales team is focused on driving smaller farm customers to use the Anpario Direct online platform where they can experience transparent pricing, ease of ordering and next day delivery for order requirements of less than one tonne. A German subsidiary has been incorporated, as part of our preparations for the potential impact of Brexit, and also to enable Anpario to employ a sales team in the region as part of our strategy to develop more direct routes to market.

The Middle East and Africa had its best six months on record with sales growth of 23% compared with the previous year. The region experienced strong performances in Iraq, Israel and the United Arab Emirates driven by sales of Orego-Stim® and Mastercube, our pellet binder. Turkey continued to disappoint as a result of the economic situation there, but this is offset by strong sales to Iraq; a region whose animal nutrition capability is now recovering having been formerly dependent on supply from Turkey.

In China sales declined by 16% compared with the previous year mainly as the result of African Swine Fever. In addition, a large swine producer experienced financial difficulties and stopped using our products. However, our China team has worked hard to refocus the business by targeting the poultry industry, both broiler and layers, where they have been successful in selling our acid based eubiotic products.

In Asia African Swine Fever has spread to a number of countries, particularly Vietnam, which has a land border with China. Anpario’s Asia region sales, excluding China, declined by 30% with a third of this fall due to our decision to terminate non-core and low margin product sales in the Philippines. In addition, a number of larger customers either stopped or reduced their purchase volumes in South Korea, Malaysia and the Philippines. Some of these decisions are due to the cost pressures faced by integrators as a consequence of cheap US meat exports, which have been diverted from the China market because US production is currently uncompetitive, given the tariff situation and the ongoing trade dispute. Territories that delivered strong sales performances include Bangladesh, Taiwan and Thailand. While Asia is expected to experience these headwinds for the remainder of the year, we remain optimistic that we can build on some of the work already underway when the region recovers.

Brexit

As highlighted in our full year results, released on 6 March 2019, Anpario’s products and processes comply with European Union regulations. However, it is difficult to anticipate exactly what the regulatory environment will look like for our products in the event of a no-deal Brexit. In preparation for this possibility, we have incorporated a company in Germany. This business will be able to invoice customers in the EU and we have plans in place with our EU suppliers to try to minimise any Brexit related disruption. These arrangements also include increasing certain raw material stock levels in the UK.

Production

The £1 million investment in the automated bottling plant at Manton Wood is now complete. The plant has been commissioned and all previously toll-manufactured production brought in-house. This investment will speed up the turnaround time for our customers and enable us to support the Anpario Direct channel and some of their target customer segments for whom liquid versions of our products are more popular.

Our Anpario Direct channel was recently launched to the UK market with both sales and user visits to the website increasing week on week. The priority is to drive direct marketing activity which will include online offers and promotional campaigns coinciding with various agricultural shows throughout the UK. The Anpario Direct proposition was designed to also complement our field sales team channel and the UK sales team is actively introducing the online platform to those farmers who typically order smaller product quantities. The channel also targets other species such as equine, pigeon and game birds.

Innovation and development

Following an extensive programme of both in-vitro and in-vivo trials on our Anpro® mycotoxin binder product, the dossier for making mycotoxin deactivation claims was submitted during the period to the EU for their approval. We anticipate receiving a response early in 2020.

Anpario has an extensive programme of both scientific and commercial trials covering various aspects of animal health and performance. There is increasing pressure on the pig industry to reduce antimicrobial usage whilst maximising animal health and performance and some recent trials performed concluded that adding Orego-Stim® to the feed on farm made significant improvements to health and profitability.

Outlook

Sales in the current year are at a similar level to the equivalent period last year, albeit with improved gross margins. We expect African Swine Fever to continue to impact the market although this should gradually ease albeit the timing remains uncertain. Expanding profitable sales and distribution channels around the world remains our priority. Our strong balance sheet and cash generation capability provide Anpario with a firm platform from which to invest in new products and to develop the exciting Anpario Direct opportunity.

Our business development initiatives, backed by the quality and ability of our employees worldwide, give me confidence that we are in line for our full year management expectations.

Peter Lawrence
Chairman
11 September 2019

Financial Review

 

 

restated

restated

 

six months to

six months to

year ended

 

30/06/2019

30/06/2018

31/12/2018

 

£000

£000

£000

 

 

 

 

Revenue

14,285

14,773

28,277

Gross profit

7,102

6,994

13,542

Profit before tax

2,253

2,242

4,555

Adjusted EBITDA (note 3)

2,805

2,753

5,583

Adjusted earnings per share (note 4)

9.16p

9.16p

18.91p

 

 

 

 

Cash generated/(absorbed)

718

(861)

(615)

Cash and cash equivalents

13,653

12,647

12,912

Revenues for the first half of the year declined 3% to £14.3m (2018: £14.8m). There was strong double digit sales growth across the Middle-East, Latin America and US markets. However, overall sales declined, largely due to the Asia region which was impacted by a number of factors including African Swine Fever and the previously announced planned withdrawal from non-core and low margin product sales (£0.4m) in the Philippines which stopped after H1 2018.

Gross profits were 2% higher than last year at £7.1m (2018: £7.0m). This is a result of both increased sales to direct end user segments in strategically important markets and the withdrawal from the aforementioned, non-core, low margin sales. Gross margins increased to 49.7% from 47.3%.

Administrative expenses, excluding foreign exchange, were virtually unchanged at £4.9m (2018: £4.8m). Included in administrative costs are immaterial net foreign exchange gains while the prior year included gains of £0.2m.

Profit before tax rose by 1% to £2.3m (2018: £2.2m). Adjusted EBITDA, also increased by 1% to £2.8m.

Basic and adjusted earnings per share were unchanged at 9.16 pence per share and diluted earnings per share increased by 3% to 8.88 pence per share (2018: 8.66 pence).

The balance sheet remains strong and debt free, with a period-end cash balance of £13.7m (Dec 2018: £12.9m).

These financial statements reflect the adoption of IFRS 16 by the Group, as outlined in the last annual report the impact of this on the Income Statement is immaterial. IFRS 16 requires operating leases to be capitalised on the statement of financial position, as well as the present value of future lease obligations being shows in liabilities. Prior period comparatives have been restated to reflect the adoption and more detail about the impact can be found in the notes to the financial statements.

Unaudited consolidated income statement
for the six months ended 30 June 2019

 

 

 

 

 

restated1

 

restated1

 

 

 

 

 

six months to

 

six months to

 

year ended

 

 

 

 

 

30/06/2019

 

30/06/2018

 

31/12/2018

 

 

 

Notes

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

3

 

14,285

 

14,773

 

28,277

 

 

Cost of sales

 

 

(7,183)

 

(7,779)

 

(14,735)

 

 

Gross profit

 

 

7,102

 

6,994

 

13,542

 

 

Administrative expenses

 

 

(4,891)

 

(4,786)

 

(9,069)

 

 

Operating profit

 

 

2,211

 

2,208

 

4,473

 

 

Finance income

 

 

42

 

34

 

82

 

 

Profit before income tax

 

 

2,253

 

2,242

 

4,555

 

 

Income tax expense

 

 

(371)

 

(366)

 

(552)

 

 

Profit for the period

 

 

1,882

 

1,876

 

4,003

 

 

Profit attributable to:

 

 

 

 

 

 

 

 

 

Owners of the parent

 

 

1,882

 

1,875

 

4,003

 

 

Non-controlling interests

 

 

-

 

1

 

-

 

 

Profit for the period

 

 

1,882

 

1,876

 

4,003

 

 

 

Basic earnings per share

 4

9.16p

 

9.16p

 

19.54p

 

 

Diluted earnings per share

 4

8.88p

 

8.66p

 

18.53p

 

 

Unaudited consolidated statement of comprehensive income
for the six months ended 30 June 2019

 

 

 

restated1

restated1

 

 

six months to

six months to

year ended

 

 

30/06/2019

30/06/2018

31/12/2018

 

 

£000

£000

£000

 

 

 

 

 

Profit for the period

 

1,882

1,876

4,003

Items that may be subsequently reclassified to profit or loss:

 

 

 

 

Exchange difference on translating foreign operations

 

(43)

76

(3)

Cashflow hedge movements (net of deferred tax)

 

(75)

(107)

(184)

Total comprehensive income for the period

 

1,764

1,845

3,816

 

 

 

 

 

Attributable to the owners of the parent:

 

1,764

1,844

3,816

Non-controlling interests

 

-

1

-

Total comprehensive income for the period

 

1,764

1,845

3,816

1 Prior period comparatives have been restated following the adoption of IFRS 16 as disclosed in note 8.

Unaudited consolidated balance sheet
as at 30 June 2019

 

 

 

restated1

restated1

 

 

as at

as at

as at

 

 

30/06/2019

30/06/2018

31/12/2018

 

Notes

£000

£000

£000

 

 

 

 

 

Intangible assets

5

11,474

10,954

11,373

Property, plant and equipment

6

4,207

3,319

3,710

Right of use assets

7

280

131

196

Deferred tax assets

 

688

451

641

Non-current assets

 

16,649

14,855

15,920

 

 

 

 

 

Inventories

 

3,405

3,852

4,031

Trade and other receivables

 

5,767

6,821

5,328

Derivative financial instruments

 

6

76

6

Cash and cash equivalents

 

13,653

12,647

12,912

Current assets

 

22,831

23,396

22,277

 

 

 

 

 

Total assets

 

39,480

38,251

38,197

 

 

 

 

 

Called up share capital

 

5,394

5,357

5,360

Share premium

 

10,849

10,397

10,423

Other reserves

 

(5,824)

(5,346)

(5,449)

Retained earnings

 

24,696

22,119

22,814

Equity attributable to owners of the parent company

35,115

32,527

33,148

Non-controlling interest

 

-

(1)

-

Total equity

 

35,115

32,526

33,148

 

 

 

 

 

Lease liabilities

 

213

75

115

Deferred tax liabilities

 

1,288

1,045

1,182

Non-current liabilities

 

1,501

1,120

1,297

 

 

 

 

 

Trade and other payables

 

2,368

4,149

3,426

Lease liabilities

7

70

60

83

Derivative financial instruments

 

113

-

11

Current income tax liabilities

 

313

396

232

Current liabilities

 

2,864

4,605

3,752

 

 

 

 

 

Total liabilities

 

4,365

5,725

5,049

 

 

 

 

 

Total equity and liabilities

 

39,480

38,251

38,197

1 Prior period comparatives have been restated following the adoption of IFRS 16 as disclosed in note 8.

Unaudited consolidated statement of changes in equity
for the six months ended 30 June 2019

 

Called up share capital

Share premium

Other
reserves

Retained earnings

Non-controlling interest

 

Total
equity

 

£000

£000

£000

£000

£000

 

£000

 

 

 

 

 

 

 

 

Balance at 1 January 2018

5,350

10,330

(5,406)

20,248

-

 

30,522

IFRS 16 Adjustment

-

-

-

(5)

-

 

(5)

Balance at 1 January 2018 - restated1

5,350

10,330

(5,406)

20,243

-

 

30,517

Profit for the period

-

-

-

1,876

(1)

 

1,875

Currency translation differences

-

-

76

-

-

 

76

Cash flow hedge reserve

-

-

(107)

-

-

 

(107)

Total comprehensive income for the period

-

-

(31)

1,876

(1)

 

1,844

Issue of share capital

7

67

-

-

-

 

74

Share-based payment adjustments

-

-

91

-

-

 

91

Transactions with owners

7

67

91

-

-

 

165

Balance at 30 June 2018

5,357

10,397

(5,346)

22,119

(1)

 

32,526

Profit for the period

-

-

-

2,127

1

 

2,128

Currency translation differences

-

-

(79)

-

-

 

(79)

Cash flow hedge reserve

-

-

(77)

-

-

 

(77)

Total comprehensive income for the period

-

-

(156)

2,127

1

 

1,972

Issue of share capital

3

26

-

-

-

 

29

Deferred tax regarding share–based payments

-

-

(23)

-

-

 

(23)

Share-based payment adjustments

-

-

76

-

-

 

76

Final dividend relating to 2017

-

-

-

(965)

-

 

(965)

Interim dividend relating to 2018

-

-

-

(467)

-

 

(467)

Transactions with owners

3

26

53

(1,432)

-

 

(1,350)

Balance at 31 December 2018

5,360

10,423

(5,449)

22,814

-

 

33,148

Profit for the period

-

-

-

1,882

-

 

1,882

Currency translation differences

-

-

(43)

-

-

 

(43)

Cash flow hedge reserve

-

-

(75)

-

-

 

(75)

Total comprehensive income for the period

-

-

(118)

1,882

-

 

1,764

Issue of share capital

34

426

-

-

-

 

460

Joint-share ownership plan

-

-

(320)

-

-

 

(320)

Share-based payment adjustments

-

-

63

-

-

 

63

Transactions with owners

34

426

(257)

-

-

 

203

Balance at 30 June 2019

5,394

10,849

(5,824)

24,696

-

 

35,115

1 Prior period comparatives have been restated following the adoption of IFRS 16 as disclosed in note 8.

Unaudited consolidated statement of cash flows
for the six months ended 30 June 2019

 

 

restated1

restated1

 

six months to

six months to

year ended

 

30/06/2019

30/06/2018

31/12/2018

 

£000

£000

£000

 

 

 

 

Cash generated from operating activities

1,885

(172)

3,362

Income tax paid

(229)

(257)

(673)

Net cash generated from operating activities

1,656

(429)

2,689

Investment in subsidiary

-

-

(132)

Purchases of property, plant and equipment

(657)

(130)

(695)

Payments to acquire intangible assets

(394)

(354)

(1,106)

Interest received

47

35

87

Net cash used in investing activities

(1,004)

(449)

(1,846)

Joint share ownership plan

(320)

-

-

Proceeds from issuance of shares

460

74

103

Cash payments in relation to lease liabilities

(69)

(56)

(124)

Operating lease interest paid

(5)

(1)

(5)

Dividend paid to Company's shareholders

-

-

(1,432)

Net cash used in financing activities

66

17

(1,458)

Net increase in cash and cash equivalents

718

(861)

(615)

Effect of exchange rate changes

23

(51)

(32)

Cash and cash equivalents at the beginning of the period

12,912

13,559

13,559

Cash and cash equivalents at the end of the period

13,653

12,647

12,912

 

 

restated1

restated1

 

six months to

six months to

year ended

 

30/06/2019

30/06/2018

31/12/2018

 

£000

£000

£000

 

 

 

 

Cash generated from operating activities

 

 

 

Profit before income tax

2,253

2,242

4,555

Net finance income

(42)

(34)

(82)

Depreciation, amortisation and impairment

523

433

992

(Profit)/Loss on disposal of property, plant and equipment

-

-

13

Share-based payments

63

91

167

Fair value adjustment to derivatives

(75)

37

32

Changes in working capital:

 

 

 

Inventories

657

(783)

(900)

Trade and other receivables

(426)

(1,130)

401

Trade and other payables

(1,068)

(1,028)

(1,816)

Net cash generated from operating activities

1,885

(172)

3,362

1 Prior period comparatives have been restated following the adoption of IFRS 16 as disclosed in note 8.

Notes to the financial statements
for the six months ended 30 June 2019

1. General information

Anpario plc ("the Company") and its subsidiaries (together "the Group") manufacture and supply high performance natural feed additives for the agricultural market with products to improve the health and output of animals.

The Company is traded on the London Stock Exchange AIM market and is incorporated and domiciled in the UK. The address of the registered office is Manton Wood Enterprise Park, Worksop, Nottinghamshire, S80 2RS.

2. Basis of preparation

The consolidated financial statements comprise the accounts of the Company and its subsidiaries drawn up to 30 June 2019.

The Group has presented its financial statements in accordance with International Financial Reporting Standards (“IFRS’s”), as endorsed by the European Union, IFRS IC interpretations and the Companies Act 2006 applicable to companies reporting under IFRS. Full details on the basis of the accounting policies used are set out in the Group’s financial statements for the year ended 31 December 2018, which are available on the Company’s website at www.anpario.com.

This condensed consolidated interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2018 were approved by the Board of Directors on 6 March 2019 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 (2) or (3) of the Companies Act 2006.

The consolidated interim financial information for the period ended 30 June 2019 is neither audited nor reviewed.

3. Segment information

Management has determined the operating segments based on the reports reviewed by the Board that are used to make strategic decisions. The Board considers the business from a geographic perspective.

 

 

Americas

 

Asia

 

Europe

 

MEA

 

Head Office

 

Total

 

 

£000

 

£000

 

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

 

 

 

 

 

for the six months ended 30 June 2019

 

 

 

 

 

 

 

 

 

 

 

 

Total segmental revenue

 

3,339

 

4,958

 

5,556

 

2,577

 

-

 

16,430

Inter-segment revenue

 

-

 

-

 

(2,145)

 

-

 

-

 

(2,145)

Revenue from external customers

 

3,339

 

4,958

 

3,411

 

2,577

 

-

 

14,285

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

784

 

1,556

 

1,442

 

848

 

(1,825)

 

2,805

Depreciation and amortisation

 

(2)

 

(9)

 

-

 

-

 

(512)

 

(523)

Net finance income

 

-

 

-

 

-

 

1

 

41

 

42

Share-based payments

 

-

 

-

 

-

 

-

 

(71)

 

(71)

Profit before income tax

 

782

 

1,547

 

1,442

 

849

 

(2,367)

 

2,253

Income tax

 

-

 

-

 

-

 

-

 

(371)

 

(371)

Profit for the period

 

782

 

1,547

 

1,442

 

849

 

(2,738)

 

1,882

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

 

 

 

39,480

 

39,480

Total liabilities

 

 

 

 

 

 

 

 

 

(4,365)

 

(4,365)

 

 

Americas

 

Asia

 

Europe

 

MEA

 

Head Office

 

Total

 

 

£000

 

£000

 

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

 

 

 

 

 

for the six months ended 30 June 2018

 

 

 

 

 

 

 

 

 

 

 

 

Total segmental revenue

 

2,678

 

6,401

 

6,366

 

2,068

 

-

 

17,513

Inter-segment revenue

 

-

 

-

 

(2,740)

 

-

 

-

 

(2,740)

Revenue from external customers

 

2,678

 

6,401

 

3,626

 

2,068

 

-

 

14,773

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

568

 

2,118

 

1,410

 

645

 

(1,988)

 

2,753

Depreciation and amortisation

 

(4)

 

(6)

 

-

 

-

 

(423)

 

(433)

Net finance income

 

-

 

-

 

-

 

1

 

33

 

34

Share-based payments

 

-

 

-

 

-

 

-

 

(112)

 

(112)

Profit before income tax

 

564

 

2,112

 

1,410

 

646

 

(2,490)

 

2,242

Income tax

 

-

 

-

 

-

 

-

 

(366)

 

(366)

Profit for the period

 

564

 

2,112

 

1,410

 

646

 

(2,856)

 

1,876

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

 

 

 

38,251

 

38,251

Total liabilities

 

 

 

 

 

 

 

 

 

(5,725)

 

(5,725)

 

 

Americas

 

Asia

 

Europe

 

MEA

 

Head Office

 

Total

 

 

£000

 

£000

 

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

 

 

 

 

 

for the year ended 31 Dec 2018

 

 

 

 

 

 

 

 

 

 

 

 

Total segmental revenue

 

5,703

 

11,563

 

12,341

 

3,614

 

-

 

33,221

Inter-segment revenue

 

-

 

-

 

(4,944)

 

-

 

-

 

(4,944)

Revenue from external customers

 

5,703

 

11,563

 

7,397

 

3,614

 

-

 

28,277

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

1,444

 

3,776

 

2,971

 

1,097

 

(3,705)

 

5,583

Depreciation and amortisation

 

(7)

 

(12)

 

-

 

-

 

(973)

 

(992)

Net finance income

 

-

 

1

 

-

 

2

 

79

 

82

Share-based payments

 

-

 

-

 

-

 

-

 

(118)

 

(118)

Profit before income tax

 

1,437

 

3,765

 

2,971

 

1,099

 

(4,717)

 

4,555

Income tax

 

103

 

(72)

 

-

 

-

 

(583)

 

(552)

Profit for the year

 

1,540

 

3,693

 

2,971

 

1,099

 

(5,300)

 

4,003

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

 

 

 

38,197

 

38,197

Total liabilities

 

 

 

 

 

 

 

 

 

(5,049)

 

(5,049)

4. Earnings per share

 

 

restated1

restated1

 

six months to

six months to

year ended

 

30/06/2019

30/06/2018

31/12/2018

 

 

 

 

Weighted average number of shares in Issue (000's)

20,538

20,472

20,482

Adjusted for effects of dilutive potential Ordinary shares (000's)

664

1,183

1,121

Weighted average number for diluted earnings per share (000's)

21,202

21,655

21,603

 

 

 

 

Profit attributable to owners of the Parent (£000's)

1,882

1,875

4,003

 

 

 

 

Basic earnings per share

9.16p

9.16p

19.54p

Diluted earnings per share

8.88p

8.66p

18.53p

 

 

restated1

restated1

 

six months to

six months to

year ended

 

30/06/2019

30/06/2018

31/12/2018

 

£000

£000

£000

 

 

 

 

Adjusted profit attributable to owners of the Parent

 

 

 

Profit attributable to owners of the Parent

1,882

1,875

4,003

Prior year tax adjustments

-

-

(129)

Adjusted profit attributable to owners of the Parent

1,882

1,875

3,874

 

 

 

 

Adjusted earnings per share

9.16p

9.16p

18.91p

Diluted adjusted earnings per share

8.88p

8.66p

17.93p

5. Intangible assets

 

Goodwill

Brands

Customer relationships

Patents, trademarks and registrations

Development costs

Software and Licences

   

Total

 

 

£000

£000

£000

£000

£000

£000

   

£000

 

Cost

 

 

 

 

 

 

   

 

 

As at 1 January 2019

5,960

3,432

786

1,636

2,499

688

   

15,001

 

Additions

-

11

-

124

254

5

   

394

 

As at 30 June 2019

5,960

3,443

786

1,760

2,753

693

   

15,395

 

 

 

 

 

 

 

 

 

 

Accumulated amortisation/impairment

 

As at 1 January 2019

-

394

522

635

1,823

254

   

3,628

 

Charge for the period

-

71

38

127

-

57

   

293

 

As at 30 June 2019

-

464

561

761

1,823

312

   

3,921

 

 

 

 

 

 

 

 

   

 

 

Net book value

 

 

 

 

 

 

   

 

 

As at 30 June 2019

5,960

2,979

225

999

930

381

   

11,474

 

As at 1 January 2019

5,960

3,038

264

1,001

676

434

   

11,373

 

6. Property, plant and equipment

 

Land and buildings

Plant and machinery

Fixtures, fittings and equipment

Assets in the course of construction

   

Total

 

£000

£000

£000

£000

   

£000

 

 

 

 

 

   

 

Cost

 

 

 

 

   

 

As at 1 January 2019

2,181

2,137

488

554

   

5,360

Additions

-

525

132

-

   

657

Transfer of assets in construction

-

554

-

(554)

   

-

As at 30 June 2019

2,181

3,216

620

-

   

6,017

 

 

 

 

 

   

 

Accumulated depreciation

 

 

 

 

   

 

As at 1 January 2019

340

973

337

-

   

1,650

Charge for the period

15

110

35

-

   

160

As at 30 June 2019

355

1,083

372

-

   

1,810

 

 

 

 

 

   

 

Net book value

 

 

 

 

   

 

As at 30 June 2019

1,826

2,133

248

-

   

4,207

As at 1 January 2019

1,841

1,164

151

554

   

3,710

7. Right-of-use assets

 

Land
and buildings

Plant
and machinery

Fixtures, fittings
and equipment

   

Total

 

£000

£000

£000

   

£000

 

 

 

 

   

 

Cost

 

 

 

   

 

As at 1 Jan 2019

404

106

28

   

538

Additions

149

-

-

   

149

Disposals

(209)

(64)

-

   

(273)

Modification to lease terms

-

5

-

   

5

As at 30 June 2019

344

47

28

   

419

 

 

 

 

   

 

Accumulated depreciation

 

 

 

   

 

As at 1 Jan 2019

236

90

16

   

342

Depreciation

60

6

4

   

70

Disposals

(209)

(64)

-

   

(273)

As at 30 June 2019

87

32

20

   

139

 

 

 

 

   

 

NBV

 

 

 

   

 

As at 1 Jan 2019

168

16

12

   

196

As at 30 June 2019

257

15

8

   

280

 

 

 

as at

   

as at

 

 

 

30/06/2019

   

31/12/2018

 

 

 

£000

   

£000

 

 

 

 

   

 

Non-current

 

 

213

   

115

Current

 

 

70

   

83

Total lease liabilities

 

 

283

   

198

8. Effect of the adoption of IFRS 16

IFRS 16 Leases has been adopted by the Group. The standard has been applied from 1 January 2019, the comparatives for prior periods have been restated accordingly. IFRS16 requires operating leases to be capitalised on the statement of financial position. Anpario has applied the full retrospective approach and as such at the end of 2018 fixed assets increased by £0.2m being the present value of future lease obligations with a corresponding increase in liabilities of £0.2m. The impact on the profit before tax in the Consolidated Income Statement is not material and the cash flow impact is nil. The tables below detail the full impact of the restatement.

Restated consolidated income statement

 

As reported

IFRS 16 Adjustments

Restated

As reported

IFRS 16 Adjustments

Restated

 

six months to

six months to

six months to

year ended

year ended

year ended

 

30/06/2018

30/06/2018

30/06/2018

31/12/2018

31/12/2018

31/12/2018

 

£000

£000

£000

£000

£000

£000

 

 

 

 

 

 

 

Revenue

14,773

-

14,773

28,277

-

28,277

Gross profit

6,994

-

6,994

13,541

1

13,542

Administrative expenses

(4,788)

2

(4,786)

(9,076)

7

(9,069)

Operating profit

2,206

2

2,208

4,465

8

4,473

Net finance income

35

(1)

34

87

(5)

82

Profit before income tax

2,241

1

2,242

4,552

3

4,555

Profit for the period

1,875

1

1,876

4,000

3

4,003

 

 

 

 

 

 

 

Profit attributable to:

 

 

 

 

 

 

Owners of the parent

1,874

1

1,875

4,000

3

4,003

Profit for the period

1,875

1

1,876

4,000

3

4,003

Restated adjusted EBITDA

 

As reported

IFRS 16 Adjustments

Restated

As reported

IFRS 16 Adjustments

Restated

 

six months to

six months to

six months to

year ended

year ended

year ended

 

30/06/2018

30/06/2018

30/06/2018

31/12/2018

31/12/2018

31/12/2018

 

£000

£000

£000

£000

£000

£000

 

 

 

 

 

 

 

Adjusted EBITDA

2,696

57

2,753

5,454

129

5,583

Depreciation and amortisation

(378)

(55)

(433)

(871)

(121)

(992)

Net finance income

35

(1)

34

87

(5)

82

Profit before income tax

2,241

1

2,242

4,552

3

4,555

Profit for the period

1,875

1

1,876

4,000

3

4,003

Restated consolidated balance sheet

 

as reported

IFRS 16 adjustments

restated

as reported

IFRS 16 adjustments

restated

 

six months to

six months to

six months to

year ended

year ended

year ended

 

30/06/2018

30/06/2018

30/06/2018

31/12/2018

31/12/2018

31/12/2018

 

£000

£000

£000

£000

£000

£000

 

 

 

 

 

 

 

Right of use assets

-

131

131

-

196

196

Total assets

38,120

131

38,251

38,001

196

38,197

 

 

 

 

 

 

 

Retained earnings

22,123

(4)

22,119

22,816

(2)

22,814

Total equity

32,530

(4)

32,526

33,150

(2)

33,148

 

 

 

 

 

 

 

Lease liabilities

-

75

75

-

115

115

Non-current liabilities

1,045

75

1,120

1,182

115

1,297

 

 

 

 

 

 

 

Lease liabilities

-

60

60

-

83

83

Current liabilities

4,545

60

4,605

3,669

83

3,752

 

 

 

 

 

 

 

Total liabilities

5,590

135

5,725

4,851

198

5,049

 

 

 

 

 

 

 

Total equity and liabilities

38,120

131

38,251

38,001

196

38,197

Restated consolidated statement of cash flows

 

as reported

IFRS 16

restated

as reported

IFRS 16

restated

 

six months to

adjustments

six months to

year ended

adjustments

year ended

 

30/06/2018

var

30/06/2018

31/12/2018

var

31/12/2018

 

£000

£000

£000

£000

£000

£000

 

 

 

 

 

 

 

Cash generated from operating activities

(229)

57

(172)

3,233

129

3,362

Net cash generated from operating activities

(486)

57

(429)

2,560

129

2,689

Net cash used in investing activities

(449)

-

(449)

(1,846)

-

(1,846)

Cash payments in relation to lease liabilities

-

(56)

(56)

-

(124)

(124)

Operating lease interest paid

-

(1)

(1)

-

(5)

(5)

Net cash used in financing activities

74

(57)

17

(1,329)

(129)

(1,458)

Net increase in cash and cash equivalents

(861)

-

(861)

(615)

-

(615)

Cash and cash equivalents at the end of the period

12,647

-

12,647

12,912

-

12,912

 

 

 

 

 

 

 

Cash generated from operating activities

 

 

 

 

 

 

Profit before income tax

2,241

1

2,242

4,552

3

4,555

Net finance income

(35)

1

(34)

(87)

5

(82)

Depreciation, amortisation and impairment

378

55

433

871

121

992

Net cash generated from operating activities

(229)

57

(172)

3,233

129

3,362

 

Anpario plc

Source: Anpario plc


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Half-year Report - RNS