Interim Results 2021

RNS Number : 4650H
Norish PLC
04 August 2021
 

 

Norish plc

Interim Results 2021

Results

 

Norish plc (AIM: NSH), is pleased to announce its interim results for the six months ended 30 June 2021.

 

Financial Highlights

· Sales increased by 19%, from £15.9m to £18.9m.

· Operating profit increased by 61%, from £0.94m to £1.51m.

· Pre-tax profit increased by 73%, from £0.78m to £1.35m.

· Fully diluted adjusted Eps increased by 74%, from 2.06p to 3.58p.

· Interest cover stood at 9.9x, at the half year stage.

· Net debt increased from £8.7m at December 2020 to £9.5m.

 

Divisional Highlights

 

£'m

Cold Store

Sourcing

Dairy

 

Jun-21

£'000

Jun-20

£'000

% Growth

Jun-21

£'000

Jun-20

£'000

% Growth

Jun-21

£'000

Jun-20

£'000

% Growth

Revenue

7,938

7,083

12%

10,479

8,413

25%

508

399

27%

Operating Profit

1,755

1,374

28%

121

101

20%

32

(143)

 

Operating Margin

22.1%

19.4%

 

1.2%

1.2%

 

6.3%

(36%)

 

 

 

Cold Stores

 

Sales in the temperature-controlled division increased 12%, (+7% excluding Blast Freezing), from £7.1m to £7.9m. Costs increased by 8%, with power up 10% and employee costs up 3%.

Operating profits increased by 28% from £1.4m to £1.8m and operating margins improved, from 19.4% to 22.1%. EBITDA increased by 21% from £2.25m to £2.72m in the period under review.

 

At an operational level, pallets inbound were ahead by 9%, on the same period in the prior year while blast freezing volumes were ahead 32% on the same period. Occupancy was largely unchanged at 89% (90% in the first half of 2020). Stock turn improved from 8.2 weeks on average in H1 2020 to 7.6 weeks in H1 2021.

 

Sourcing Division

 

Sales at our sourcing division increased by 25%, compared with the same period in 2020, from £8.4m to £10.5m. Operating profit improved from £101,000 to £121,000.

 

Our product sourcing division was impacted by Covid-19 and Brexit in the first quarter of 2021. We have seen a strong recovery in the second quarter with the development of a protein export business to South Africa.

 

 

Dairy Division

Our subsidiary, Grass to Milk Company Ltd, continues to make progress; commercialising A2 protein, grass-fed, dairy products.

 

We are pleased to announce an exciting collaboration with Bright Dairy & Food Co Ltd and New Zealand Focus Group, jointly developing a new ultra-premium, A2-protein, grass-fed, Pure Milk UHT product for China, which will go on sale in the second half of the year.

 

Our operations team completed the development of a robust supply chain and quality system in the first half of 2021, which will act as a future growth platform; we were recently awarded an AA BRC audit score for Grass to Milk Ltd . Management built out a commercial team on the ground in China and are expanding into high growth retail channels such as Social Commerce, E-Commerce and High-End Retail.

 

Cantwellscourt Farm Ltd is providing A2 protein milk supply to Grass to Milk Ltd, in the first instance. Cantwellscourt Farm continues to improve operationally across key operating KPI's. Milk production was 18% ahead year on year. Profits improved substantially from a loss of £143,000 in half one 2020, to a profit of £32,000 in the first half of 2021.

 

Outlook

 

We remain optimistic for continued growth in profitability at Norish Cold Stores for the balance of the year. Group occupancy at this juncture (at 85%) is 9% higher than the same time last year.

 

We are happy with the significant progress made with the development of our A2 protein milk supply via Cantwellscourt Farm. Grass to Milk Company will deliver its first sale in the second half of the year.

 

Our protein sourcing division is expected to have a strong second half to the year as markets continue to normalise.

 

Strategic Review

 

We announced in March 2021 that we would carry out a strategic review of our cold store operations. This process continues and we will provide an update in due course.

 

Dividend

 

The board does not recommend the payment of an interim dividend, unchanged from last year.

 

Net Debt

 

Net debt (post IFRS 16) increased to £9.5m at end June 2021, from £8.7m in December 2020. The increase in net debt reflects additional working capital requirements and ongoing investment. Cash generated from operations amounted to £1.3m. Investment of £1.9m was made in assets, comprising £0.7m in Grass to Milk and £1.2m in equipment at the cold store division.

 

 

 

 

Norish plc

 

 

 

 

 

 

 

Consolidated income statement

 

 

 

 

For the six months ended 30 June 2021

 

 

 

 

 

 

 

 

 

 

 

Six months

Six months

Year

 

 

ended

ended

ended

 

 

30 June

30 June

31 December

 

 

2021

2020

2020

 

 

(Unaudited)

(Unaudited)

(Audited)

 

 

 

 

 

 

 

£'000

£'000

£'000

 

 

 

 

 

Continuing operations

 

 

 

 

Revenue

 

18,925

15,895

33,361

Cost of sales

 

(17,130)

(14,659)

(30,389)

Gross profit

 

1,795

1,236

2,972

 

 

 

 

 

Other income

 

113

88

182

Administrative expenses

 

(402)

(388)

(865)

 

Operating profit from continuing operations

 

1,506

936

2,289

 

 

 

 

 

Finance income - interest receivable

 

-

-

1

Finance expenses - lease interest

 

(87)

(94)

(117)

Finance expenses - interest on bank loans

 

(65)

(63)

(196)

Profit on continuing activities before taxation

 

1,354

779

1,977

 

 

 

 

 

Income taxes - Corporation tax

 

(277)

(160)

(224)

Income taxes - Deferred tax

 

-

-

(245)

 

 

 

 

 

Profit for the period attributable to owners of the parent from continuing operations

 

1,077

619

1,508

 

 

 

 

 

Loss from discontinued activities

 

(69)

-

(71)

 

 

 

 

 

Profit for the period

 

1,008

619

1437

 

 

 

 

 

Other comprehensive income

 

(228)

-

162

 

 

 

 

 

Total comprehensive income for the year

 

780

619

1,599

 

Earnings per share expressed in pence per share:

 

 

 

 

From continuing operations

- basic

 

3.58p

2.06p

5.02p

- diluted

 

3.58p

2.06p

5.02p

From discontinued operations

- basic

 

(0.23)p

0p

(0.24)p

- diluted

 

(0.23)p

0p

(0.24)p

 

 

 

 

 

 

 

 

 

 

 

 

Norish plc

 

 

 

 

Interim balance sheet

 

 

 

 

As at 30 June 2021

 

 

 

 

 

As at

As at

As at

 

 

30 June

30 June

31 December

 

 

2021

2020

2020

 

 

(Unaudited)

(Restated)

(Audited)

 

 

 

 

 

 

 

£'000

£'000

£'000

 

ASSETS

 

 

 

 

Non-current assets

 

 

 

 

Goodwill

2,338

2,338

2,338

 

Intangible assets

1,906

807

1,269

 

Biological assets

856

700

770

 

Property, plant and equipment

22,960

22,592

22,898

 

 

28,060

26,437

27,275

 

Current assets

 

 

 

 

Trade and other receivables

8,494

4,838

7,526

 

Inventories

157

1,025

58

 

Cash and cash equivalents

843

1,501

1,550

 

Assets of disposal group classified as held for sale

270

277

381

 

 

9,764

7,641

9,515

 

 

 

 

 

 

TOTAL ASSETS

37,824

34,078

36,790

 

 

 

 

 

 

Equity attributable to equity holders of the parent

And non-controlling interest

 

 

 

 

Share capital

5,640

5,640

5,640

 

Share premium account

7,321

7,321

7,321

 

Other reserves

(87)

(21)

141

 

Retained earnings

6,758

4,932

5,750

 

TOTAL EQUITY

19,632

17,872

18,852

 

 

Non-current liabilities

 

 

 

 

Borrowings

5,052

5,757

5,514

 

Deferred tax

1,244

1,002

1,244

 

 

6,296

6,759

6,758

 

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

6,119

5,526

6,288

 

Current tax liabilities

450

442

151

 

Borrowings

5,327

3,479

4,741

 

 

11,896

9,447

11,180

 

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

37,824

34,078

36,790

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norish plc

Consolidated statement of changes in equity

For the six months ended 30 June 2021

 

 

 

 

 

 

 

 

 

 

 

 

Share

Share

Other

Treasury

Retained

 

 

 

 

 

capital

premium

Reserves

shares

earnings

Total

 

 

 

 

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2020

5,640

7,321

(21)

-

4,313

17,253

 

 

 

 

 

 

 

 

 

 

 

 

 

Net profit for the financial period

-

-

-

 

619

619

 

 

 

Total comprehensive income for the period

-

-

-

-

619

619

 

 

 

Issue of share capital

-

-

-

-

-

-

 

 

 

Equity dividends paid (recognised directly in equity)

-

-

-

-

-

-

 

 

 

Transactions with owners

-

-

-

-

619

619

 

 

 

At 30 June 2020

5,640

7,321

(21)

-

4,932

17,872

 

 

 

 

 

 

 

 

 

 

 

 

 

Net profit/(loss) for the financial period

-

-

-

 

818

818

 

 

 

Total comprehensive income for the period

-

-

-

 

818

818

 

 

 

Issue of share capital

-

-

-

-

-

-

 

 

 

Equity dividends paid (recognised directly in equity)

-

-

-

 

-

-

 

 

 

Foreign Exchange gain

-

-

162

-

-

162

 

 

 

Transactions with owners

-

-

162

-

818

980

 

 

 

At 31 December 2020

5,640

7,321

141

 

-

5,750

18,852

 

 

 

                                 

 

Net profit for the financial period

-

-

-

-

1,008

1,008

 

 

Total comprehensive income for the period

-

-

-

-

1,008

1,008

 

 

Issue of share capital

-

-

-

-

-

-

 

 

Equity dividends paid (recognised directly in equity)

-

-

-

-

-

-

 

 

Foreign Exchange loss

-

-

(228)

-

-

(228)

 

 

Transactions with owners

-

-

(228)

-

1,008

780

 

 

At 30 June 2021

5,640

7,321

(87)

 

-

6,758

19,632

 

 

 

 

 

 

 

 

Norish plc

 

 

 

 

Consolidated cash flow statement

 

 

 

For the six months ended 30 June 2021

 

 

 

 

Six months

Six months

Year

 

Ended

ended

Ended

 

30 June

30 June

31 December

 

2021

2020

2020

 

(Unaudited)

(Restated)

(Restated)

 

£'000

£'000

£'000

Profit on continuing activities before taxation

1,354

779

1,977

Gain on biological assets

(113)

(88)

(182)

Foreign exchange loss/(gain)

205

(51)

(55)

Loss on discontinued activities

(69)

-

(71)

Finance expenses

152

157

316

Finance income

-

-

(1)

Depreciation - property, plant and equipment

987

887

1,789

 

2,516

1,684

3,773

Changes in working capital:

 

 

 

(Increase)/decrease in inventories

(99)

80

1,047

(Increase)/decrease in trade and other receivables

(968)

2,019

(669)

Increase/(decrease) in trade and other receivables for disposal

111

-

(104)

Increase/(decrease) in current liabilities held for sale

-

-

-

Decrease in payables

(169)

(1,038)

(276)

Cash generated from operations

1,391

2,745

3,771

 

 

 

 

Interest paid

(152)

(157)

(316)

Interest received

-

-

1

Taxation refund/(paid)

22

51

(304)

Net cash from operating activities

1,261

2,639

3,152

 

Investing activities

 

 

 

Investment in intangible assets

(685)

(243)

(705)

Purchase of biological assets

(10)

(5)

(65)

Sale of biological assets

8

268

346

Purchase of property, plant and equipment

(1,177)

(634)

(1,741)

Net cash used in investing activities

(1,864)

(614)

(2,165)

Financing activities

 

 

 

Dividends paid to shareholders

-

-

-

Invoice finance receipts/ (payments)

475

(1,225)

(150)

Finance lease capital repayments

(623)

(405)

(845)

Finance lease advance

258

215

882

Term loan advance

-

-

-

Term loan repayments

(214)

(163)

(378)

Net cash used in financing activities

(104)

(1,578)

(491)

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

(707)

447

496

 

Cash and cash equivalents, at beginning of period

1,550

1,054

1,054

 

 

 

 

Cash and cash equivalents end of period

843

1,501

1,550

 

Note : The accounting policies applied throughout the period are consistent with those applied for the year ended 31 December 2020, as set out in the 2020 Annual Report.

 

 

 

 

Enquiries:

Norish

 

Aidan Hughes, Finance Director

Telephone: + 44 1293 862 498

 

 

 

Davy

 

Anthony Farrell

Telephone: + 353 1 679 6363

 

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