Preliminary Statement of Annual Results

RNS Number : 6043Z

Norish PLC

08 March 2013

Norish plc

Preliminary Statement of Annual Results 2012

Results

Norish plc results for the year ended 31^st December 2012 as follows:

· Turnover increased to £14.9m compared with £11.2m for 2011.

· Turnover from Townview Foods Limited accounted for £3.2m in the period 5 October 2012 to 31 December 2012.

· Turnover from the warehousing division (being the segments ambient storage and cold storage) increased to £11.7m from £11.2m in 2011.

· Pre-tax losses of £55,000 (after writing off acquisition costs of £317,000 compared to pre-tax profits of £406,000 for 2011).

· Net assets increased from £8m to £8.1m compared with 2011.

· Net debt increased to £8m from £6.8m mainly due to the acquisition of Townview Foods Limited.

· Earnings per share decreased to (0.8)p from 4.3p mainly due to the acquisition costs.

Financial Strength

Shareholders funds at 31 December 2012 were £8.1m compared with £8.0m at 31 December 2011. Net debt at 31 December 2012 was £8m which increased from £6.8m as at 31 December 2011.

Operations

Our cold store business did not perform as well as last year. Although it increased its turnover, 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 below 2011 levels. It has suffered from reduced occupancy levels and throughput.

We purchased Townview Foods Limited on the 5^th October 2012 which has contributed £131,000 to the profits of the group since the acquisition date.

We currently use R22 refrigeration gas at three 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 24,868 kg (2011: 44,808 kg) of re-cycled R22 at £4.05 per kg which is below the current market value. During the year we exercised a proportion of our option and sold 19,940 kg, resulting in a realised profit of £60,000. Under IAS39 we have also accounted for an unrealised profit of £49,000 on the proportion of the option still held at 31 December 2012. This is based on a fair value option price of £16.95 per kg at 31^st December 2012. The quantity of gas held is expected to be in excess of our own use requirement.

Our pre-tax losses of £55,000 were adversely affected by £317,000 in respect of the acquisition costs of Townview Foods Limited.

Dividend

The board recommends the payment of a final dividend of 1.25 cent per share. This will be paid on the 25th October 2013 to those shareholders on the register on the 27th September 2013. 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 2012.

Ted O'Neill

Chairman

7 March 2013

The results herein do not represent full accounts. Full accounts for the year ended 31 December 2012, 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 2011 containing an unqualified audit report from the Auditors have been delivered to the Registrar of Companies.

The audited Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity and Consolidated Cash Flow Statement in sterling currency, with comparatives, are attached.

Consolidated STATEMENT OF COMPREHENSIVE INCOME

for the year ended 31 December 2012

	2012	2011
	£'000	£'000

Continuing operations
Revenue	14,876	11,213
Cost of sales	(14,018)	(10,375)

Gross profit	858	838

Other income	109	190
Acquisition expenses	(317)	-
Administrative expenses	(418)	(362)
Operating profit from continuing operations	232	666

Finance expenses --interest paid	(215)	(186)
Finance expenses - fair value loss swaps/caps	(44)	(89)
Finance expenses - notional interest	(28)	-
Finance income	-	15

Profit on continuing activities before taxation	(55)	406

Income taxes - Corporation tax	(33)	(80)
Income taxes - Deferred tax	9	36

Profit for the period attributable to owners of the parent	(79)	362
Other comprehensive income	-	-
Total comprehensive income for the period attributable to owners of the parent	(79)	362

Earnings per share expressed in pence per share:
From continuing operations - basic	(0.8)p	4.3p
- diluted	(0.8)p	4.3p

Consolidated Statement of financial position

at 31 December 2012

	2012	2011
	£'000	£'000
Assets
Non current assets
Goodwill	2,554	216
Property, plant and equipment	16,299	15,379
Derivative financial instruments	422	669
	19,275	16,264
Current assets
Trade and other receivables	4,244	2,827
Inventories	84	-
Cash and cash equivalents	103	50
	4,431	2,877
Liabilities
Current liabilities
Trade and other payables	(3,904)	(2,892)
Financial liabilities at fair value through profit or loss	(450)	(102)
Current tax liabilities	(566)	(81)
Borrowings	(2,216)	(991)
	(7,136)	(4,066)

Net current liabilities	(2,705)	(1,189)
Non-current liabilities
Borrowings	(5,890)	(5,856)
Financial liabilities at fair value through profit or loss	(1,422)	-
Provisions	(145)	(139)
Deferred tax	(1,046)	(1,055)
	(8,503)	(7,050)
Net assets	8,067	8,025

Equity
Share capital	1,841	1,674
Share premium account	3,276	3,229
Capital conversion reserve fund	23	23
Retained earnings	2,927	3,099
Equity attributable to equity holders of the parent	8,067	8,025

Consolidated Statement of Changes in Equity

For the year ended 31 December 2012

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

At 1 January 2011	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
Issue of share capital	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

Net loss for the year	-	-	-	(79)	(79)
Total comprehensive income for the year	-	-	-	(79)	(79)
Issue of share capital	167	83	-	-	250
Transactions with owners	167	83	-	(79)	171
Share issue costs	-	(36)	-	-	(36)
Equity dividends paid (recognised directly in equity)	-	-	-	(93)	(93)
At 31 December 2012	1,841	3,276	23	2,927	8,067

Consolidated Cash Flow Statement

for the year ended 31 December 2012	2012	2011
	£'000	£'000

(Loss)/profit on continuing activities before taxation	(55)	406
Adjustments for:
Finance expenses	287	275
Finance income	-	(15)
Finance expenses - notional interest	(28)	-
Fair value losses on interest rate swaps/caps	(44)	(89)
Other Income	(109)	(190)
Unrealised gain on derivative financial instrument	49	190
Depreciation - property, plant and equipment	595	569
Employee share schemes	-	1
	695	1,147
Changes in working capital and provisions:
Increase in inventories	(39)	-
Decrease/(increase) in trade and other receivables	676	(523)
(Decrease)/increase in payables	(1,034)	425
Increase/(decrease) in provisions	6	(370)
Cash generated from operations	304	679

R22 income received	356	-
Interest paid - bank loans and overdrafts	(215)	(186)
Taxation (paid)/received	(69)	11
Net cash from operating activities	376	504

Investing activities Payments to acquire subsidiary	(3,500)	-
Cash acquired as part of acquisition	3,312	-
Interest received	-	15
Purchase of property, plant and equipment	(1,515)	(564)
Net cash used in investing activities	(1,703)	(549)

Financing activities
Dividends paid to shareholders	(93)	(92)
Share issue proceeds	250	254
Share issue costs	(36)	-
Invoice finance receipts	1,142	278
Finance lease funding	-	155
Finance lease capital repayments	(46)	(28)
Term loan advance	900	-
Term loan repayments	(737)	(666)
Net cash used in financing activities	1,380	(99)

Net decrease in cash and cash equivalents	53	(144)

Cash and cash equivalents and bank overdrafts, beginning of period	50	194

Cash and cash equivalents end of period	103	50