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Norish PLC   -  NSH   

Preliminary Results

Released 07:00 08-Mar-2019

RNS Number : 2270S
Norish PLC
08 March 2019
 

 

Norish plc

Preliminary results 2018

 

Results

 

Norish plc (AIM: NSH), is pleased to announce its preliminary results for the year ended 31 December 2018. 

 

Financial Highlights

·    Profit before tax increased by 17.6% to £1.94m (2017: £1.65m)

·    Diluted adjusted Eps increased by 22% to 5p (2017: 4.1p)

·    Group revenue decreased by 12.4% to £36.8m (2017: £42.0m)

·    Dividend increased by 9% to 1.80 €cent (2017: 1.65 €cent)

·    Net debt was reduced from £5.4m at start of year to £4.9m at year end.

·    Interest cover has increased to 11.4 times (2017: 8.7 times)

 

 

Operations

 

Cold Store Division

 

Sourcing Division

Dairy

Discontinued

 

Capital

 

Outlook

 

 

Despite the current volatility in its underlying markets, our protein sourcing division is well placed to deliver in line with expectation on the back of its low risk operating model.

 

Our dairy farming division is now performing strongly. Work in relation to our major dairy project is ongoing at pace. We have assembled a very experienced team, to drive this initiative, to achieve the market position we have set for this development over a two to four-year time frame.

 

 

 

 

Financial Review

 

Dividend

 

Brexit

 

 

 

 

  

Ted O'Neill

Chairman

 

 

 

Financial Review

 

The average occupancy increased from 92% to 94%.

 

The significant feature of the year was the improvement of the profitability and returns at our cold stores.

 

Sales

 

Gross profit

 

Operating profit

 

Loss from discontinued operations

 

During the year the group decided to exit the Juice business for the ready to drinks market. A loss of £0.38m was incurred, compared to £0.1m last year.

 

 

Earnings per share

 

Capital

 

 

Cash Position

 

Dividend

Treasury policy and management

The treasury function, which is managed centrally, handles all Group funding, debt, cash, working capital and foreign exchange exposures.  Group treasury policy concentrates on the minimisation of risk in all of the above areas and is overseen and approved by the Board.  Speculative positions are not  taken.

 

Financial risk management

 

The Group's financial instruments comprise borrowings, cash, derivatives, and various items, such as trade receivables, trade payables etc., that arise directly from its operations.  The main purpose of the financial instruments not arising directly from operations is to raise finance for the Group's operations.

 

The Group may enter into derivative transactions such as interest rate swaps, caps or forward foreign currency transactions in order to minimise its risks.  The purpose of such transactions is to manage the interest rate and currency risks arising from the Group's operations and its sources of finance. 

 

The main risks arising from the Group's financial instruments are interest rate risk and, liquidity risk.  The Group's policies for managing each of these risks are summarised below.

 

Interest rate risk

 

The Group finances its operations through a mixture of retained profits, bank and other borrowings at both fixed and floating rates of interest, and working capital.  The Group determines the level of borrowings at fixed rates of interest having regard to current market rates and future trends.  At the year-end there are, £2.2m term loans of which, £1.96m are at floating base rate plus a bank margin of 1.85% and £0.24m are at a floating rate of 3.75%.

 

Liquidity risk

 

The Group's policy is that, in order to ensure continuity of funding, a significant portion of its borrowings should mature in more than one year.  At the year-end, 73% of the Group's borrowings were due to mature in more than one year. The Group achieves short-term flexibility by means of invoice finance and overdraft.

 

  

 

Aidan Hughes

Finance Director

 

 

 

Consolidated STATEMENT OF COMPREHENSIVE INCOME

 

for the financial year ended 31 December 2018

 

 

 

2018

2017

 

 

 

£'000

£'000

 

 

 

 

 

Continuing operations

 

 

 

 

Revenue

 

 

36,802

42,012

Cost of sales

 

 

(33,871)

(39,233)

 

 

 

 

 

Gross profit

 

 

2,931

2,779

 

 

 

 

 

Other income

 

 

43

66

Deferred consideration

 

 

-

(100)

Administrative expenses

 

 

(851)

(889)

Operating profit from continuing operations

 

 

2,123

1,856

 

 

 

 

 

Finance income - fair value gain on swaps

 

 

-

10

Finance income - interest receivable

 

 

3

1

Finance expenses - interest paid

 

 

(187)

(201)

Finance expenses - notional interest

 

 

-

(13)

 

 

 

 

 

Profit on continuing activities before taxation

 

 

1,939

1,653

 

 

 

 

 

Income taxes - Corporation tax

 

 

(393)

(413)

Income taxes - Deferred tax

 

 

(46)

(28)

 

 

 

 

 

Profit for the financial year from continuing operations

 

 

1,500

1,212

 

 

 

 

 

Loss from discontinued operations

 

 

(379)

(219)

 

 

 

 

 

Profit for the financial year attributable to

owners of the parent

 

 

1,121

993

 

 

 

 

 

Other comprehensive income

 

 

            -

-

Total comprehensive income for the year attributable to owners of the parent

 

 

1,121

993

 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

for the financial year ended 31 December 2018

 

 

 

2018

2017

 

 

 

 

 

Earnings per share expressed in pence per share:

 

 

 

 

From continuing operations

- basic

 

 

5.0p

4.1p

- diluted

 

 

5.0p

4.1p

 

 

 

 

 

 

 

 

 

 

From discontinued operations

- basic

 

 

(1.3)p

(0.7)p

- diluted

 

 

(1.3)p

(0.7)p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of financial position

at 31 December 2018

 

 

 

2018

2017

 

 

 

£'000

£'000

Non current assets

 

 

 

 

Goodwill

 

 

2,338

2,338

Intangible assets

 

 

166

141

Property, plant and equipment

 

 

18,125

17,759

Biological assets

 

 

639

624

 

 

 

21,268

20,862

Current assets

 

 

 

 

Trade and other receivables

 

 

6,250

7,537

Inventories

 

 

624

709

Cash and cash equivalents

 

 

1,543

1,558

Assets of disposal group classified as held for sale

 

 

324

279

 

 

 

8,741

10,083

 

 

 

 

 

TOTAL ASSETS

 

 

30,009

30,945

 

 

 

 

 

Equity attributable to equity holders of the parent

 

 

 

 

Share capital

 

 

5,640

5,616

Share premium account

 

 

7,321

7,281

Other reserves

 

 

103

103

Treasury shares

 

 

(563)

(563)

Retained earnings

 

 

4,224

3,516

TOTAL EQUITY

 

 

16,725

15,953

 

 

 

 

 

Non-current liabilities

 

 

 

 

Borrowings

 

 

1,787

2,390

Deferred tax

 

 

999

953

 

 

 

2,786

3,343

Current liabilities

 

 

 

 

Trade and other payables

 

 

5,446

6,680

Financial liabilities at fair value through profit or loss

 

 

-

29

Current tax liabilities

 

 

390

367

Borrowings

 

 

4,647

4,555

Liabilities of disposal group classified as held for sale

 

 

15

18

 

 

 

10,498

11,649

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

 

30,009

30,945

  

 

 

 

 

 

 

Consolidated Statement of Changes in Equity

 

For the financial year ended 31 December 2018

 

 

 

 

 

 

 

 

Non-

 

 

Share

Share

Other

Treasury

Retained

 

Controlling

Total

 

capital

premium

Reserves

shares

earnings

Total

interest

Equity

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

At 1 January 2017

5,616

7,281

23

(563)

2,926

15,283

(22)

15,261

Net profit for the financial year

-

-

-

 

993

993

 

-

 

993

Total comprehensive income for the financial year

-

-

-

-

993

993

-

993

Issue of share capital

-

-

-

-

-

-

-

-

Equity dividends paid (recognised directly in equity)

-

-

-

-

(381)

(381)

-

(381)

Foreign exchange gain

-

-

80

-

-

80

-

80

Minority Interest acquired

-

-

-

-

(22)

(22)

22

-

Transactions with owners

-

-

80

-

590

670

22

692

At 31 December 2017

5,616

7,281

103

(563)

3,516

15,953

-

15,953

 

 

 

 

 

 

 

 

 

Net profit for the financial year

-

-

-

 

1,121

1,121

-

1,121

Total comprehensive income for the financial year

-

-

-

 

1,121

1,121

-

1,121

Issue of share capital

24

40

-

 

-

64

-

64

Equity dividends paid (recognised directly in equity)

-

-

-

 

(413)

(413)

-

(413)

Foreign exchange gain

-

-

-

-

-

-

-

-

Minority Interest acquired

-

-

-

-

-

-

-

-

Transactions with owners

24

40

-

-

708

772

-

772

At 31 December 2018

5,640

7,321

103

 

(563)

4,224

16,725

-

16,725

 

 

 

Consolidated Cash Flow Statement

 for the financial year ended 31 December 2018

 

2018

2017

 

 

£'000

£'000

Profit on continuing activities before taxation

 

1,939

1,653

Gain on biological assets

 

(43)

(66)

Amortisation of intangible assets

 

141

6

Foreign exchange (loss)/gain

 

(23)

63

Loss on discontinued activities

 

(379)

(219)

Deferred consideration

 

-

100

Finance expenses

 

187

214

Finance income

 

(3)

(11)

Depreciation - property, plant and equipment-net

 

812

709

 

 

2,631

2,449

Changes in working capital and provisions:

 

 

 

(Decrease)/increase in inventories

 

85

(226)

Decrease/(increase) in trade and other receivables

 

1,287

(854)

Decrease/(increase) in current assets held for sale

 

(45)

-

(Decrease)/Increase in current liabilities held for sale

 

(3)

11

(Decrease) /Increase in payables

 

(1,234)

1,598

Cash generated from operations

 

2,721

2,978

 

 

 

 

 

 

 

 

Interest paid

 

(187)

(201)

Interest received

 

3

1

Taxation paid

 

(370)

(251)

Net cash generated from operating activities

 

2,167

2,527

 

 

 

 

Investing activities

 

 

 

Investment in intangible assets

 

(166)

(82)

Purchase of property, plant and equipment

 

(1,160)

(1,816)

Sale of biological assets

 

68

-

Purchase of biological assets

 

(35)

(19)

Net cash used in investing activities

 

(1,293)

(1,917)

 

Financing activities

 

 

 

Dividends paid to shareholders

 

(413)

(381)

Deferred consideration payments

 

(29)

(372)

Share issue proceeds

 

64

-

Invoice finance receipts

 

551

487

Overdraft repayments

 

(210)

(94)

Finance lease capital repayments

 

(216)

(189)

Term loan advance

 

2,200

266

Finance lease advance

 

73

24

Term loan repayments

 

(2,909)

(837)

Net cash outflow from financing activities

 

(889)

(1,096)

 

 

 

 

Net decrease in cash and cash equivalents

 

(15)

(486)

 

 

 

 

Cash and cash equivalents and bank overdrafts,

Beginning of period

 

1,558

2,044

 

 

 

 

Cash and cash equivalents end of period

 

1,543

1,558

 


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