Preliminary Statement of Annual Results

RNS Number : 9529Y

Norish PLC

08 March 2012

Norish plc

Preliminary Statement of Annual Results 2011

Results

Norish plc results for the year ended 31^st December 2011 are as follows:

· Turnover increased to £11.2m compared with £10.7m for 2010.

· Pre-tax profits of £406,000 compared to £552,000 for 2010.

· Net assets increased to £8m compared with £7.5m for 2010.

· Net debt decreased to £6.8m from £6.9m.

· Earnings per share decreased to 4.3p from 5.2p

Financial Strength

Shareholders funds at 31 December 2011 were £8m compared with £7.5m at 31 December 2010. Net debt at 31 December 2011 was £6.8m which decreased from £6.9m as at 31 December 2010.

Operations

Our cold store business performed better this year, primarily due to increased turnover. However, the business suffered from increased power costs and an increase in labour intensive handling activities for some of our customers.

Our ambient site at York performed just below 2010 levels. It had a better second half of the year compared to the first half. This should carry forward into 2012.

We currently use R22 refrigeration gas at 3 of our cold stores. R22 is a Hydrochlorofluorcarbon (HCFC) which is classed as an ozone depleting gas and with effect from 1^st January 2010 it is no longer possible to purchase virgin R22. However, the use of re-cycled R22 is still permitted until 31^st December 2014. We currently have an option to purchase 44,808 kg of re-cycled R22 at £4.05 per kg which is below the current market value. Under IAS39 Financial Instruments(Recognition and measurement) we have accounted for a unrealised profit of £190,000 for the year.

Our pre-tax profits of £406,000 were adversely affected by a non cash derivative amount of £89,000 in 2011 against a credit of £97,000 in 2010.

Dividend

The board recommends the payment of a final dividend of 1.25 cent per share. This will be paid on the 18th May 2012 to those shareholders on the register on the 20th April 2012. It will bring the total dividend in respect of the financial year to 1.25 cent per share unchanged from last year.

Personnel

On behalf of the board, I would like to thank the management team and staff for their commitment and contribution in 2011.

Ted O'Neill

Chairman

7 March 2012

The results herein do not represent full accounts. Full accounts for the year ended 31 December 2011, upon which the Auditors have given an unqualified audit report, have not yet been filed with the Registrar of Companies. Full accounts for the year ended 31 December 2010 containing an unqualified audit report from the Auditors have been delivered to the Registrar of Companies.

The audited consolidated income statement, balance sheet and cash flow statement in sterling currency, with comparatives, are attached.

Consolidated Statement of Comprehensive Income

for the year ended 31 December 2011

	2011	2010
	£'000	£'000

Continuing operations
Revenue	11,213	10,654
Cost of sales	(10,375)	(9,850)

Gross profit	838	804

Other income	190	410
Administrative expenses	(362)	(481)
Operating profit from continuing operations	666	733

Finance expenses-interest paid	(186)	(278)
Finance expenses- fair value loss swaps/caps	(89)	-
Finance income	15	97

Profit on continuing activities before taxation	406	552

Income taxes - Corporation tax	(80)	81
Income taxes - Deferred tax	36	(192)

Profit for the period attributable to owners of the parent	362	441
Other comprehensive income	-	-
Total comprehensive income for the period attributable to owners of the parent	362	441

Earnings per share expressed in pence per share:
From continuing operations - basic	4.3p	5.2p
- diluted	4.3p	5.2p

Consolidated Statement of Financial Position

at 31 December 2011

	2011	2010
	£'000	£'000
Assets
Non current assets
Goodwill	216	216
Property, plant and equipment	15,379	15,384
Derivative financial instruments	669	479
	16,264	16,079
Current assets
Trade and other receivables	2,827	2,494
Current tax asset	-	10
Cash and cash equivalents	50	194
Total assets	2,877	2,698
Liabilities
Current liabilities
Trade and other payables	(2,892)	(2,556)
Financial liabilities: Fair value of interest rate swaps/caps	(102)	(13)
Current tax liabilities	(81)	-
Borrowings	(991)	(666)
	(4,066)	(3,235)

Net current liabilities	(1,189)	(537)
Non-current liabilities
Borrowings	(5,856)	(6,442)
Provisions	(139)	(509)
Deferred tax	(1,055)	(1,091)
	(7,050)	(8,042)
Net assets	8,025	7,500

Equity
Share capital	1,674	1,493
Share premium account	3,229	3,156
Capital conversion reserve fund	23	23
Retained earnings	3,099	2,828
Equity attributable to equity holders of the parent	8,025	7,500

Consolidated Statement of Changes in Equity

For the year ended 31 December 2011

			Capital
	Share	Share	Conversion	Retained
	capital	premium	Reserve	earnings	Total
	£'000	£'000	£'000	£'000	£'000

At 1 January 2010	1,493	3,156	23	2,373	7,045

Net profit for the year	-	-	-	441	441
Total comprehensive income for the year	-	-	-	441	441
Credit in respect of employee share schemes	-	-	-	14	14
Equity dividends paid (recognised directly in equity)				-	-

At 31 December 2010	1,493	3,156	23	2,828	7,500

Net profit for the year	-	-	-	362	362
Total comprehensive income for the year	-	-	-	362	362
Credit in respect of employee share schemes	-	-	-	1	1
Share placing	181	73	-	-	254
Equity dividends paid (recognised directly in equity)				(92)	(92)
At 31 December 2011	1,674	3,229	23	3,099	8,025

Consolidated Cash Flow Statement

for the year ended 31 December 2011

	2011	2010
	£'000	£'000

Profit on continuing activities before taxation	406	552
Adjustments for:
Finance expenses	275	278
Finance income	(15)	(97)
Fair value (losses)/gains on interest rate swaps/caps	(89)	97
Depreciation - property, plant and equipment	569	608
Employee share schemes	1	14
	1,147	1,452
Changes in working capital and provisions:
Increase in trade and other receivables	(523)	(413)
Increase in payables	425	186
Decrease in provisions	(370)	(60)
Cash generated from operations	679	1,165

Interest paid - bank loans and overdrafts	(186)	(278)
Taxation refund/(paid)	11	(13)
Net cash from operating activities	504	874

Investing activities
Interest received	15	-
Purchase of property, plant and equipment	(564)	(966)
Net cash used in investing activities	(549)	(966)

Financing activities
Dividends paid to shareholders	(92)	-
Share issue proceeds	254	-
Invoice finance receipts	278	-
Finance lease funding	155	-
Finance lease capital repayments	(28)	-
Term loan advance	-	500
Term loan repayments	(666)	(659)
Net cash used in financing activities	(99)	(159)

Net decrease in cash and cash equivalents	(144)	(251)

Cash and cash equivalents and bank overdrafts, beginning of period	194	445

Cash and cash equivalents end of period	50	194