Interim Results

RNS Number : 7031C

Norish PLC

04 September 2008

 



Norish plc

Interim results 2008

Results

Norish plc announces pre-tax profits of £184,000 for the six months ended 30 June 2008. This compares with pre-tax profits of £320,000 for the same period last year. Turnover from continuing operations decreased by £232,000 to £5,318,000. Earnings per share decreased to 1.4p compared to 2.4p for the same period last year.

The cold stores experienced a slight downturn in trade compared with last year as customers reduced their stock holdings.

Our ambient site at York suffered from significantly reduced stocks, as a result of changes in its major customer's supply chain, which has resulted in reduced profits compared to last year. Management efforts to source new business continue.

Acquisition

On the 28th March 2008 we completed the purchase of a cold store at Gillingham, Kent for £3,100,000. The acquisition is in a prime location situated close to London. When this store is fully operational it will make a positive contribution to the results in 2009. The purchase was funded by a combination of surplus cash and a 15 year term loan.

Dividend

A final dividend was paid of €1.25c per share in respect of the year 2007, on the 23 May 2008 to those on the register as at 25 April 2008. As with last year, the board do not recommend a payment of an Interim dividend.

Outlook

We have experienced a downturn in trade in 2008 compared to last year and this has carried through into the second half of the year. Although we would expect trading to pick up due to new business wins and seasonal uplift, the performance in the second half of the year is expected to be down on last year.

Financial Strength

Shareholders funds at 30 June 2008 were £6,858,000 compared with £6,816,000 at 31 December 2007. Net debt at 30 June 2008 was £8,249,000, compared with a net debt of £5,424,000 at 31 December 2007.

Ted O'Neill

Chairman

04 September 2008

Norish plc Consolidated income statement For the six months ended 30 June 2008
	Six months ended 30 June 2008 (Unaudited)	Six months ended 30 June 2008 (Unaudited)	Six months ended 30 June 2007 (Unaudited)	Year ended 31 December 2007 (Audited)
	£'000	€'000	£'000	£'000
Continuing operations
Revenue	5,318	6,647	5,550	10,994
Cost of sales	(4,814)	(6,017)	(4,924)	(9,699)
Gross profit	504	630	626	1,295
Administrative expenses	(120)	(150)	(144)	(269)
Operating profit from continuing operations	384	480	482	1,026
Finance expenses	(230)	(288)	(215)	(437)
Finance income	30	37	53	28
Profit on continuing activities before taxation	184	229	320	617
Tax on profit on ordinary activities	(64)	(80)	(112)	(112)
Profit for the period attributable to shareholders	120	149	208	505
Profit per share expressed in pence per share:
From continuing operations  - basic	1.4p	1.7c	2.4p	6.0p
Weighted average number of ordinary shares	8,466,230	8,466,230	8,466,230	8,466,230
- diluted	1.4p	1.7c	2.4p	6.0p
Weighted average number of diluted ordinary shares	8,466,230	8,466,230	8,467,295	8,469,602

Note :  The unaudited financial information presented in pounds sterling as of and for the period ended 30 June 2008 is also expressed in Euro, solely for convenience, at the rate of €1 = £0.80, the closing rate for the period. No representation is made that the pounds sterling amounts have been, could have been or could be converted into Euro at that or any other rate.

Norish plc Interim balance sheet As at 30 June 2008
	As at 30 June 2008 (Unaudited)	As at 30 June 2007 (Unaudited)	As at 31 December 2007 (Audited)
	£'000	£'000	£'000
Assets
Non current assets
Goodwill	216	216	216
Property, plant and equipment	15,517	12,715	12,501
	15,733	12,931	12,717
Current assets
Trade and other receivables	2,927	2,909	2,438
Financial assets: Fair value of interest rate swaps	44	82	29
Cash and cash equivalents	13	400	1,076
	2,984	3,391	3,543
Liabilities
Current liabilities
Trade and other payables	(2,748)	(2,116)	(2,159)
Current tax liabilities	(326)	(275)	(262)
Bank overdraft and loans	(678)	(500)	(500)
	(3,752)	(2,891)	(2,921)
Net current assets	(768)	500	622
Non-current liabilities
Bank loans	(7,584)	(6,250)	(6,000)
Deferred tax	(523)	(676)	(523)
	(8,107)	(6,926)	(6,523)
Net assets	6,858	6,505	6,816
Equity
Share capital	1,493	1,493	1,493
Share premium account	3,156	3,156	3,156
Capital conversion reserve fund	23	23	23
Retained earnings	2,186	1,833	2,144
Equity attributable to equity holders of the parent	6,858	6,505	6,816

Norish plc Consolidated statement of changes in equity For the six months ended 30 June 2008
	Share Capital (Unaudited)	Share premium (Unaudited)	Capital Conversion Reserve (Unaudited)	Retained earnings (Unaudited)	Total (Unaudited)
	£'000	£'000	£'000	£'000	£'000
At 1 January 2007	1,493	3,156	23	1,625	6,297
Net profit for the period	-	-	-	208	208
At 30 June 2007	1,493	3,156	23	1,833	6,505
Net profit for the period	-	-	-	297	297
Credit in respect of employee share schemes	-	-	-	14	14
At 31 December 2007	1,493	3,156	23	2,144	6,816
Net profit for the period	-	-	-	120	120
Credit in respect of employee share schemes	-	-	-	7	7
Equity dividends paid (recognised directly in equity)	-	-	-	(85)	(85)
At 30 June 2008	1,493	3,156	23	2,186	6,858

Norish plc Consolidated cash flow statement For the six months ended 30 June 2008
	Six months ended 30 June 2008 (Unaudited)	Six months ended 30 June 2007 (Unaudited)	Year Ended 31 December 2007 (Audited)
	£'000	£'000	£'000
Profit on continuing activities before taxation	184	320	617
Adjustments for:
Finance expenses	230	215	437
Finance income	(30)	(53)	(28)
Depreciation - property, plant and equipment	249	264	554
Employee share schemes	7	-	14
Changes in working capital:
(Increase)/decrease in trade and other receivables	(504)	(185)	339
Increase/(decrease) in payables	589	(278)	(235)
Cash generated from operations	725	283	1,698
Interest paid - bank loans and overdrafts	(230)	(215)	(437)
Taxation refunded / (paid)	-	21	(145)
Net cash from operating activities	495	89	1,116
Investing activities
Interest received	15	15	43
Fair value gain / (loss) on swaps adjustment	15	38	(15)
Disposal of plant	-	-	20
Purchase of property, plant and equipment	(3,265)	(76)	(172)
Net cash used in investing activities	(3,235)	(23)	(124)
Financing activities
Dividends paid to shareholders	(85)	-	-
Term loan repayments	(283)	(250)	(500)
Net cash used in financing activities	(368)	(250)	(500)
Net (decrease)/ increase in cash and cash equivalents	(3,108)	(184)	492

Note: The accounting policies applied throughout the period are consistent with those applied for the year ended 31 December 2007, as set out in the 2007 Annual Report

 

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