Half Yearly Results Announcem

RNS Number : 5005O

Origin Enterprises Plc

09 March 2009

 



Half Yearly Results Announcement

Half Year ended 31 January 2009

Financial Highlights                        

	6 months ended 31 Jan 2009 €’000	6 months ended 31 Jan 2008 €’000	% increase
Group revenue	710,099	546,412	30
Group operating profit*
- Agri-Nutrition	18,040	11,744	54
- Food	9,198	8,497	8
Group operating profit*	27,238	20,241	35
Profit before financing costs*	27,800	21,183	31
Profit for the financial period	14,148	11,910	19
Adjusted fully diluted EPS (cent per share)*	11.17	9.37	19
Group net debt	200,356	164,402	22

*before intangible amortisation (2009:€1.5m, 2008:€0.8m)

Highlights

• Excellent performance from Agri-Nutrition businesses with a 54% increase in operating profit

• Masstock's prescription led agronomy model continued to strengthen 

• Robust performance from Food business with operating profit up by 8%

• Strong cashflow performance in the period

• Strategic consolidation of Marine Proteins business concluded in February 2009.

Origin Enterprises plc

Chief Executive Officer's comment:

Commenting on the announcement of the 2009 Half Yearly Results, Origin Chief Executive Officer, Tom O'Mahony said:

'Origin has delivered a strong first half performance, recording a 35 per cent increase in Operating Profit, reflecting the benefits from the significant strategic repositioning of the Group.  

Unprecedented volatility in input costs and output values are posing major challenges for primary food producers in enterprise planning. The Group's service focussed Agri-Nutrition model is commanding heightened relevance for our customers in supporting their risk management and procurement strategies. 

An increasing trend towards value conscious consumption and weaker consumer sentiment are key challenges being managed within the Group's Food business today. Continual service and value innovation remain fundamental to underpinning our leading brand positions. 

The merger of Origin's and Austevoll's European Marine Proteins and Oils operations, completed in early February 2009, represents a major realignment of the fishmeal and fish oil industry and furthers the strategic development of Origin.

We retain a rigorous focus on cash management and our business model continues to demonstrate resilience in an environment of considerable economic uncertainty. We remain positive regarding our prospects for the full year.'

Ends

The Half Yearly Results Announcement is available on the company website www.originenterprises.com. There will be a live conference call at 9.30am (GMT) today.   To listen to this conference call, please dial your appropriate number from the list below. Participants are requested to dial in 5 to 10 minutes prior to the scheduled start time.

The Confirmation Code is: 4528556

Participant access numbers:            [phone]      Ireland Toll

                                                     [phone]    UK/International Toll

                                                     [phone]      Switzerland Toll

                                                     [phone]    Finland Toll

                                                     [phone]      Poland Toll

                                                     [phone]    Germany Toll

                                                     [phone]    France Toll

                                                     [phone]      Netherlands Toll

                                                      1866 239 0753             USA Toll Free

For reference contact:

Brendan Fitzgerald, Chief Financial Officer        Tel: [phone]

Origin Enterprises plc

Elizabeth Headon                                              Tel: [phone]

Murray Consultants                                           Mobile: [phone]

9 March 2009

HALF YEARLY RESULTS STATEMENT

Financial Review

Origin Enterprises plc ('Origin' or the 'Group') announces a 19 per cent increase in adjusted fully diluted earnings per share for the half year ending 31 January 2009 to 11.17c per share compared to 9.37c per share in the previous period. Profit before financing costs* for the first half increased by 31 per cent to €27.8 million. 

Revenue

Group revenue was 30 per cent higher at €710.1 million, on a constant currency basis the increase was 39 per cent.

The Agri-Nutrition businesses achieved revenue of €553.5 million, an increase of 47 per cent over the previous period. On a constant currency basis the increase was 61 per cent. The Food businesses generated revenue for the period of €156.6 million, a reduction of 8 per cent.

Operating profit

Group operating profit* increased by 35 per cent to €27.2 million from €20.2 million in the previous period. The weakness of sterling relative to the euro in the first half of the current financial year compared to the same period last year reduced operating profit by €1.7 million. The operating margin increased from 3.7 per cent to 3.8 per cent.

Operating profit* from the Agri-Nutrition businesses increased by 54 per cent to €18.0 million. Operating profit* from the Food business increased by 8 per cent to €9.2 million. The operating margin in Food increased from 5.0 per cent to 5.9 per cent, principally reflecting the mix of business in the current financial period.

Associates

John Thompson and Sons Ltd, the animal feed manufacturer in which Origin has a 50 per cent interest, delivered a satisfactory performance during the period. 

Origin has committed an additional €7 million investment in Continental Farmers Group plc (€3.5 million of which was paid in the current period) to fund its ongoing development programme. After the additional investment, the Group's shareholding will increase to 37 per cent.

Finance Costs

Profit before financing costs* for the half year increased by 31 per cent to €27.8 million compared to €21.2 million in 2008.  

Cashflow and Net Debt 

Net cash outflow from operating activities was €37.7 million reflecting the seasonal investment in working capital during the first half of the financial year.  

Group net debt was €200.3 million at 31 January 2009 compared to €175.1 million at 31 July 2008 principally reflecting the seasonal investment in working capital. Net debt is €36 million higher than at 31 January 2008 after a spend of €104.5 million on acquisitions and capital investment over the past twelve months. This performance reflects the continuing strong cash generative nature of the business.

Dividend

No dividend will be paid in respect of the half year ended 31 January 2009. The board has decided to keep its dividend policy under review and will outline its policy with the announcement of the Preliminary Results in September 2009.  

*Operating profit and profit before financing costs are stated before intangible amortisation (2009:€1.5m, 2008:€0.8m).

Review of Operations

Agri-Nutrition

	2009   €'000	2008   €'000	% Change
Revenue	553,455	375,423	47%
Operating profit*	18,040	11,744	54%
Operating profit %	3.26	3.13	+13 bps

*Operating profit is stated before intangible amortisation.  

Origin's Agri-Nutrition Divison incorporating integrated on-farm agronomy, agri-inputs (feed ingredients and fertiliser blending and distribution) and marine proteins and oils (fishmeal and fish oil manufacturing and distribution) performed strongly during the first half of the year. The period under review saw primary food producers experiencing substantial challenges with significantly delayed and difficult harvest conditions and unprecedented price volatility across input costs and output values.

The highlight of the period has been the performance of Masstock's fully serviced agronomy business across the United Kingdom and Poland. Masstock's proactive development of crop management programmes underpinned by fundamental research applied to current growing conditions tangibly demonstrates to customers that investment remains the key to securing yield and improved profitability. Masstock's customer relationships ensure that the business maintains its core influence in on-farm decision making and product specification. 

In Ireland feed ingredients and fertiliser delivered a satisfactory performance. Overall feed volumes remained in line with last year with higher inclusion levels of cereals following a larger native harvest. The fertiliser business performed to expectation during this seasonally quiet period. The replenishing of animal fodder stocks, which are at historically low levels, will be one of the principal drivers of fertiliser volume in the second half of the year.

In the UK, significant volatility in pricing drove reduced fertiliser volumes in the period with customers delaying purchasing decisions until closer to the main application period. The business remains well placed to fulfill customer off-take requirements in the second half of the year. 

Marine Proteins delivered a very satisfactory performance in the period underpinned by continuing positive demand within aquaculture, pig and poultry feed diets. 

On 4 February 2009, Origin announced it had reached agreement with Austevoll Seafoods ASA ('Austevoll') to combine our respective Irish, UK and Norwegian fishmeal and fish oil operations.  This strategic consolidation initiative will enhance the position of the combined business in the globally traded marine proteins and oils sector. Benefits will include improved raw material landing and conversion efficiencies, a world class product offering supported by superior customer logistics together with the optimisation of North Atlantic 

production capacity.  Origin has transferred its Marine Protein business to Austevoll's wholly owned Norwegian subsidiary, Welcon Invest AS ('Welcon'), together with a cash contribution of €16 million in return for a 50 per cent shareholding in the enlarged Welcon group.  

Continental Farmers Group plc ('Continental'), a large scale producer of agricultural crops in Poland and Ukraine, made substantial progress in the period.  Ukraine is the primary focus of development for Continental with 20,000 hectares of leased arable land assembled and key investments in machinery and infrastructure successfully completed and fully commissioned.  The company is targeting to harvest 13,000 hectares in 2009, compared with 5,000 hectares in 2008. The business is equipped with a capacity for an extensive drilling programme which together with improved agronomic application and enhanced operational capability will positively influence performance. 

Food

	2009   €'000	2008   €'000	% Change
Revenue	156,644	170,989	(8%)
Operating profit*	9,198	8,497	8%
Operating profit %	5.9	5.0	+90 bps

*Operating profit is stated before intangible amortisation.  

Origin's Food business has market leading positions within ambient baking, Italian food ingredients and convenience snacking categories servicing the retail, food service and manufacturing sectors in Ireland. Food delivered a satisfactory performance during the period against the background of a very challenging environment and the impact of changing consumer buying patterns.

Revenue within the Food business was 8 per cent lower than the comparable period in 2008, driven by a decline in agency distribution, as customers temporarily sourced certain product ranges directly from the UK. Food operating margins increased by 90 basis points to 5.9 per cent reflecting the changed sales mix during the period. 

Shamrock, the brand leader within home baking and Roma, market leader in Italian food ingredients, recorded underlying revenue growth of 6 per cent. There is a move amongst consumers towards more meal preparation and eating at home, with Roma, Shamrock and Odlums as suppliers of staple food ingredients for the home cooking and baking markets benefiting from this increased demand. The extension of these brands into complementary product lines through focused product development and service innovation has also supported sales.  

Odlums, Ireland's premier cereal miller, delivered a satisfactory performance in the first half of the year. Industrial flour volumes were stable in the period against the background of a 

more competitive environment. Retail flour volumes performed strongly driven by higher consumption and extended distribution resulting from the integration of key sales, marketing and distribution activities into Shamrock Foods.  

During the period, Odlums sold the rights to its McCann's Irish oatmeal brand which principally serviced the North American niche speciality foods sector. McCann's oatmeal had total sales of €6.9m in the 2008 financial year.

Investment Properties

The Group's investment properties, which are carried at €193m in the Balance Sheet at 31 January 2009, principally comprise the 32 acre footprint in the Cork South Docklands. Certain of our trading operations continue to operate from these properties. Against the background of current inactivity in property markets our objective remains to sensibly unlock the value of these property assets over the medium term. We retain flexibility regarding the timing of value realisation.

Outlook

Origin has delivered a strong performance in the first half of the year. Notwithstanding the current economic environment and its associated risks, the business is well positioned for the seasonally more important second half of the year and we remain on target to deliver growth for the full year.

ENDS

About Origin Enterprises plc

Origin Enterprises plc is a leading Agri-Nutrition and Food company listed on the IEX and AIM markets of the Irish and London Stock Exchanges. The Agri-Nutrition division, through its manufacturing and distribution operations in Ireland, the United Kingdom and Poland, has leading market positions in the supply of feed ingredients, specialist agronomy services, crop nutrition and marine proteins. The Group's Food division, comprising sales, marketing, distribution and manufacturing activities in Ireland, has leadership positions in ambient food across the retail, food service and manufacturing sectors. 

IEX ticker symbol: OIZ

AIM ticker symbol: OGN

Website: www.originenterprises.com

Origin Enterprises plc

Condensed consolidated half yearly income statement

for the six months ended 31 January 2009

	Six months		Six months
	ended 31		ended 31		Year Ended
	January 2009		January 2008		31 July 2008
	€'000		€'000		€'000
	(Unaudited)		(Unaudited)		(Audited)
Revenue	710,099		546,412		1,504,242
Cost of sales	(630,996)		(495,962)		(1,335,032)
Gross profit	79,103		50,450		169,210
Operating costs	(53,342)		(30,996)		(100,681)
Operating profit	25,761		19,454		68,529
Share of profit of associates	562		942		2,252
Profit before financing costs	26,323		20,396		70,781
Finance income	2,681		2,205		5,287
Finance expenses	(11,902)		(8,064)		(19,859)
Profit before tax	17,102		14,537		56,209
Income tax	(2,954)		(2,627)		(11,747)
Profit for the period	14,148		11,910		44,462

Origin Enterprises plc

Condensed consolidated half yearly income statement (continued)

for the six months ended 31 January 2009

			Six months		Six months
			ended 31		ended 31		Year Ended
			January 2009		January 2008		31 July 2008
			€'000		€'000		€'000
			(Unaudited)		(Unaudited)		(Audited)
Attributable as follows:
Equity shareholders			14,010		12,149		44,701
Minority interest			138		(239)		(239)
			14,148		11,910		44,462
Earnings per share for the period
Basic- adjusted
Excluding amortisation			11.53c		9.69c		35.23c
Diluted- adjusted
Excluding amortisation			11.17c		9.37c		34.05c
Basic
Including amortisation			10.53c		9.14c		33.61c
Diluted
Including amortisation			10.20c		8.84c		32.47c

Origin Enterprises plc

Condensed group statement of recognised income and expense

for the six months ended 31 January 2009

		Six months		Six months
		ended 31		ended 31		Year ended
		January 2009		January 2008		31 July 2008
		€'000		€'000		€'000
		(Unaudited)		(Unaudited)		(Audited)
Items of income and expense recognised directly in
equity
Net revaluation of previously held interest in associate		-		18,116		17,960
Foreign exchange translation effects
	foreign currency net investments	(22,814)		(5,435)		(11,193)
	foreign currency borrowings	8,099		71		2,755
Actuarial gain/(loss) on Group's defined benefit
pension schemes		1,368		(13,555)		(17,813)
Deferred tax effect of actuarial gains/(losses)		(550)		1,793		2,377
Gain/(loss) relating to cash flow hedges		1,314		(2,026)		553
Deferred tax effect of cash flow hedges		(164)		250		(71)
Total expense recognised directly in equity		(12,747)		(786)		(5,432)
Profit for the financial period		14,148		11,910		44,462
Total recognised income and expense for the period		1,401		11,124		39,030
Attributable as follows:
Equity shareholders		1,499		11,363		39,531
Minority interest		(98)		(239)		(501)
Total recognised income and expense for the period		1,401		11,124		39,030

Origin Enterprises plc

Condensed consolidated half yearly balance sheet

as at 31 January 2009

		31 January		31 January		31 July
		2009		2008		2008
		€'000		€'000		€'000
		(Unaudited)		(Unaudited)		(Audited)
ASSETS
Non current assets
Property, plant and equipment		100,037		93,967		106,099
Investment properties		192,978		192,418		192,418
Goodwill and intangible assets		99,822		53,026		116,367
Investments in associates		31,863		15,490		32,844
Deferred tax assets		4,535		3,710		4,651
Total non current assets		429,235		358,611		452,379
Current assets
Inventory		190,957		124,932		160,669
Trade and other receivables		104,744		110,440		203,156
Derivative financial instruments		5,062		-		1,958
Cash and cash equivalents		46,498		48,828		75,232
Total current assets		347,261		284,200		441,015
TOTAL ASSETS		776,496		642,811		893,394

Origin Enterprises plc

Condensed consolidated half yearly balance sheet (continued)

as at 31 January 2009

		31 January		31 January		31 July
		2009		2008		2008
		€'000		€'000		€'000
		(Unaudited)		(Unaudited)		(Audited)
EQUITY
Called up share capital		1,386		1,385		1,386
Share premium		265,182		265,182		265,182
Retained earnings and other reserves		(42,729)		(73,249)		(44,686)
Total equity attributable to equity shareholders
of parent		223,839		193,318		221,882
Minority interest		1,397		1,757		1,495
TOTAL EQUITY		225,236		195,075		223,377
LIABILITIES
Non current liabilities
Interest bearing loans and borrowings		243,926		210,000		249,272
Employee benefits		21,354		16,897		23,071
Deferred government grants		2,577		2,838		2,644
Deferred tax liabilities		41,850		39,245		42,741
Deferred consideration on acquisition		10,771		-		12,483
Total non current liabilities		320,478		268,980		330,211
Current liabilities
Interest bearing loans and borrowings		2,928		3,230		1,085
Trade and other payables		216,894		160,198		328,350
Corporation tax payable		5,550		11,087		6,751
Derivative financial instruments		5,410		4,241		3,620
Total current liabilities		230,782		178,756		339,806
TOTAL LIABILITIES		551,260		447,736		670,017
TOTAL EQUITY AND LIABILITIES		776,496		642,811		893,394

Origin Enterprises plc

Condensed consolidated half yearly cash flow statement 

for the six months ended 31 January 2009

	Six months		Six months
	ended 31		ended 31		Year Ended
	January 2009		January 2008		31 July 2008
	€'000		€'000		€'000
	(Unaudited)		(Unaudited)		(Audited)
Cash flows from operating activities
Profit before tax	17,102		14,537		56,209
Financing costs, net	9,221		5,859		14,572
Share of profit of associates	(562)		(942)		(2,252)
Depreciation of property, plant and equipment	4,310		3,655		9,060
Amortisation of intangible assets	1,477		787		2,397
Amortisation of government grants	(67)		(65)		(115)
Employee share-based payment charge	458		314		709
Operating profit before changes in working capital	31,939		24,145		80,580
(Increase) in inventory	(43,961)		(51,738)		(72,805)
Decrease/(increase) in trade and other receivables	81,220		(7,890)		(49,820)
(Decrease)/increase in trade and other payables	(92,205)		22,289		139,405
Cash (absorbed)/generated from operating activities	(23,007)		(13,194)		97,360
Interest paid	(9,654)		(3,685)		(9,662)
Income tax paid	(5,001)		-		(13,083)
Net cash flow from operating activities	(37,662)		(16,879)		74,615

Origin Enterprises plc

Condensed consolidated half yearly cash flow statement (continued)

for the six months ended 31 January 2009

		Six months		Six months
		ended 31		ended 31		Year Ended
		January 2009		January 2008		31 July 2008
		€'000		€'000		€'000
		(Unaudited)		(Unaudited)		(Audited)
Cash flows from investing activities
Proceeds from sale of property, plant and equipment		24		38		411
Purchase of property, plant and equipment		(3,144)		(2,470)		(8,824)
Additions to investment properties		(560)		(12,945)		(12,945)
Acquisition of subsidiary undertaking,
net of cash acquired		-		(32,195)		(75,798)
Proceeds from sale of Mc Canns brand		6,797		-		-
Investment in associates		(3,507)		-		(15,632)
Dividends received		1,926		18		158
Net cash flow from investing activities		1,536		(47,554)		(112,630)
Cash flows from financing activities
Proceeds from issue of share capital		-		3		4
Drawdown of loan capital		10,132		100,346		104,195
Payment of finance lease obligations		(682)		-		(399)
Net cash flow from financing activities		9,450		100,349		103,800
Net (decrease)/ increase in cash and cash equivalents		(26,676)		35,916		65,785
Translation adjustment		(4,102)		(1,616)		(2,076)
Cash and cash equivalents at start of period		75,007		11,298		11,298
Cash and cash equivalents at end of period		44,229		45,598		75,007

Origin Enterprises plc

Notes to the condensed consolidated half yearly financial information 

for the six months ended 31 January 2009

• International Financial Reporting Standards

Basis of preparation

The half yearly condensed financial information has been prepared in accordance with the accounting policies set out in the Group's consolidated financial statements for the year ended 31 July 2008 and in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) as endorsed by the European Commission.

The condensed consolidated half yearly financial information is presented in euro, rounded to the nearest thousand, which is the functional currency of the Group.

A comprehensive review of the group's performance for the six months ended 31 January 2009 is included in the financial highlights section included on pages 1 to 8. The group's business is seasonal and is weighted towards the second half of the financial year.

The financial information presented herein does not amount to statutory financial statements that are required by Section 7 of the Companies (Amendment) Act 1986 to be annexed to the annual return of the company. The statutory financial statements for the year ended 31 July 2008 were filed with the Registrar of Companies and are available on the company's website www.originenterprises.com. Those financial statements contained an unqualified audit report.

Origin Enterprises plc

Notes to the condensed consolidated half yearly financial information (continued)

for the six months ended 31 January 2009

2	Segment information
	(a) Segment revenue and result
				Agri-Nutrition						Food						TOTAL
		6 months		6 months		Year		6 months		6 months		Year		6 months		6 months		Year
		ended		ended		ended		ended		ended		ended		ended		ended		ended
		31/01/09		31/01/08		31/07/08		31/01/09		31/01/08		31/07/08		31/01/09		31/01/08		31/07/08
		€'000		€'000		€'000		€'000		€'000		€'000		€'000		€'000		€'000
	Segment revenue	553,455		375,423		1,165,262		156,644		170,989		338,980		710,099		546,412		1,504,242
	Operating profit before amortisation	18,040		11,744		55,012		9,198		8,497		15,914		27,238		20,241		70,926
	Intangible amortisation	(1,104)		(117)		(1,030)		(373)		(670)		(1,367)		(1,477)		(787)		(2,397)
	Operating profit	16,936		11,627		53,982		8,825		7,827		14,547		25,761		19,454		68,529
	Share of profit of associates	562		741		2,051		-		201		201		562		942		2,252
	Profit before financing costs	17,498		12,368		56,033		8,825		8,028		14,748		26,323		20,396		70,781

Origin Enterprises plc

Notes to the condensed consolidated half yearly financial information (continued)

for the six months ended 31 January 2009

2	Segment information (continued)
	(b) Segmental assets
				Agri-Nutrition						Food						TOTAL
		6 months		6 months		Year		6 months		6 months		Year		6 months		6 months		Year
		ended		ended		ended		ended		ended		ended		ended		ended		ended
		31/01/09		31/01/08		31/07/08		31/01/09		31/01/08		31/07/08		31/01/09		31/01/08		31/07/08
		€'000		€'000		€'000		€'000		€'000		€'000		€'000		€'000		€'000
	Segment assets excluding investments in associates	388,640		240,754		443,980		106,920		141,611		142,311		495,560		382,365		586,291
	Investment in associates	31,863		15,490		32,844		-		-		-		31,863		15,490		32,844
	Investment properties	178,978		178,418		178,418		14,000		14,000		14,000		192,978		192,418		192,418
	Segment assets	599,481		434,662		655,242		120,920		155,611		156,311		720,401		590,273		811,553
	Reconciled to total assets as reported in Group balance sheet
	Cash and cash equivalents													46,498		48,828		75,232
	Derivative financial instruments													5,062		-		1,958
	Deferred tax assets													4,535		3,710		4,651
	Total assets as reported in Group balance sheet													776,496		642,811		893,394

Origin Enterprises plc

Notes to the condensed consolidated half yearly financial information (continued)

for the six months ended 31 January 2009

2

Segment information (continued)

(c) Segmental liabilities

Agri-Nutrition

Food

TOTAL

6 months

6 months

Year

6 months

6 months

Year

6 months

6 months

Year

ended

ended

ended

ended

ended

ended

ended

ended

ended

31/01/09

31/01/08

31/07/08

31/01/09

31/01/08

31/07/08

31/01/09

31/01/08

31/07/08

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

Segment liabilities

232,928

150,564

325,010

18,668

29,369

41,538

251,596

179,933

366,548

Reconciled to total liabilities as reported in Group balance sheet

Interest bearing loans and liabilities

246,854

213,230

250,357

Derivative financial instruments

5,410

4,241

3,620

Income tax and deferred tax liabilities

47,400

50,332

49,492

Total liabilities as reported in Group balance sheet

551,260

447,736

670,017

Origin Enterprises plc

Notes to the condensed consolidated half yearly financial information (continued)

for the six months ended 31 January 2009

3	Earnings per share
		6 months		6 months		Year		6 months		6 months		Year
		ended		ended		ended		ended		ended		ended
		31/01/09		31/01/08		31/07/08		31/01/09		31/01/08		31/07/08
		€'000		€'000		€'000		EPS (cent)		EPS (cent)		EPS (cent)
	Basic
	Profit for the financial period	14,010		12,149		44,701		10.53		9.14		33.61
	Amortisation of intangible assets	1,477		787		2,397		1.11		0.59		1.80
	Amortisation of related deferred tax liability	(141)		(52)		(227)		(0.11)		(0.04)		(0.18)
	Adjusted earnings per share	15,346		12,884		46,871		11.53		9.69		35.23
	Diluted
	Profit for the financial period	14,010		12,149		44,701		10.20		8.84		32.47
	Amortisation of intangible assets	1,477		787		2,397		1.07		0.57		1.74
	Amortisation of related deferred tax liability	(141)		(52)		(227)		(0.10)		(0.04)		(0.16)
	Adjusted earnings per share	15,346		12,884		46,871		11.17		9.37		34.05

    The calculation of earnings per share is based on the weighted average number of shares in issue during the period of 133,015,472 (31 January 2008: 133,015,472, 31 July 2008: 133,015,472). The weighted average number of shares used in the calculation of diluted earnings per share is 137,394,000 (31 January 2008: 137,482,206, 31 July 2008: 137,652,435).

Origin Enterprises plc

Notes to the condensed consolidated half yearly financial information (continued)

for the six months ended 31 January 2009

4	Statement of changes in shareholders' equity													Foreign
	31 January 2009					Cashflow				Share-based				currency
		Share		Share		hedge		Revaluation		payment		Reorganisation		translation		Retained		Minority
		capital		premium		reserve		reserve		reserve		reserves		reserve		earnings		interest		Total
		€'000		€'000		€'000		€'000		€'000		€'000		€'000		€'000		€'000		€'000
	At 1 August 2008	1,386		265,182		(1,288)		90,132		914		(196,884)		(9,400)		71,840		1,495		223,377
	Share-based payments	-		-		-		-		458		-		-		-		-		458
	Foreign exchange translation	-		-		-		-		-		-		(14,479)		-		(236)		(14,715)
	Group defined benefit pension schemes	-		-		-		-		-		-		-		1,368		-		1,368
	Deferred tax on group defined benefit pension schemes	-		-		-		-		-		-		-		(550)		-		(550)
	Gains relating to cash flow hedges	-		-		1,314		-		-		-		-		-		-		1,314
	Deferred tax relating to cash flow hedges	-		-		(164)		-		-		-		-		-		-		(164)
	Profit for the period	-		-		-		-		-		-		-		14,010		138		14,148
	At 31 January 2009	1,386		265,182		(138)		90,132		1,372		(196,884)		(23,879)		86,668		1,397		225,236

Origin Enterprises plc

Notes to the condensed consolidated half yearly financial information (continued)

for the six months ended 31 January 2009

4	Statement of changes in shareholders' equity (continued)													Foreign
	31 January 2008					Cashflow				Share-based				currency
		Share		Share		hedge		Revaluation		payment		Reorganisation		translation		Retained		Minority
		capital		premium		reserve		reserve		reserve		reserves		reserve		earnings		interest		Total
		€'000		€'000		€'000		€'000		€'000		€'000		€'000		€'000		€'000		€'000
	At 1 August 2007	1,382		265,182		(1,770)		72,172		205		(196,884)		(1,224)		42,575		1,996		183,634
	Issue of shares	3		-		-		-		-		-		-		-		-		3
	Net revaluation of previously held interest in asssociate	-		-		-		18,116		-		-		-		-		-		18,116
	Share-based payments	-		-		-		-		314		-		-		-		-		314
	Foreign exchange translation	-		-		-		-		-		-		(5,364)		-		-		(5,364)
	Group defined benefit pension schemes	-		-		-		-		-		-		-		(13,555)		-		(13,555)
	Deferred tax on group defined benefit pension schemes	-		-		-		-		-		-		-		1,793		-		1,793
	Losses relating to cash flow hedges	-		-		(2,026)		-		-		-		-		-		-		(2,026)
	Deferred tax relating to cash flow hedges	-		-		250		-		-		-		-		-		-		250
	Profit/(loss) for the period	-		-		-		-		-		-		-		12,149		(239)		11,910
	At 31 January 2008	1,385		265,182		(3,546)		90,288		519		(196,884)		(6,588)		42,962		1,757		195,075

Origin Enterprises plc

Notes to the condensed consolidated half yearly financial information (continued)

for the six months ended 31 January 2009

4	Statement of changes in shareholders' equity (continued)													Foreign
	31 July 2008					Cashflow				Share-based				currency
		Share		Share		hedge		Revaluation		payment		Reorganisation		translation		Retained		Minority
		capital		premium		reserve		reserve		reserve		reserves		reserve		earnings		interest		Total
		€'000		€'000		€'000		€'000		€'000		€'000		€'000		€'000		€'000		€'000
	At 1 August 2007	1,382		265,182		(1,770)		72,172		205		(196,884)		(1,224)		42,575		1,996		183,634
	Issue of shares	4		-		-		-		-		-		-		-		-		4
	Net revaluation of previously held interest in asssociate	-		-		-		17,960		-		-		-		-		-		17,960
	Share-based payments	-		-		-		-		709		-		-		-		-		709
	Foreign exchange translation	-		-		-		-		-		-		(8,176)		-		(262)		(8,438)
	Group defined benefit pension schemes	-		-		-		-		-		-		-		(19,591)		-		(19,591)
	Deferred tax on group defined benefit pension schemes	-		-		-		-		-		-		-		2,377		-		2,377
	Net actuarial gain on associated defined benefit pension scheme	-		-		-		-		-		-		-		1,778		-		1,778
	Gains relating to cash flow hedges	-		-		553		-		-		-		-		-		-		553
	Deferred tax relating to cash flow hedges	-		-		(71)		-		-		-		-		-		-		(71)
	Profit/(loss) for the period	-		-		-		-		-		-		-		44,701		(239)		44,462
	At 31 July 2008	1,386		265,182		(1,288)		90,132		914		(196,884)		(9,400)		71,840		1,495		223,377

Origin Enterprises plc

Notes to the condensed consolidated half yearly financial information (continued)

for the six months ended 31 January 2009

5	Analysis of net debt
		31 July				Exchange		31 January
		2008		Cashflow		Adjustment		2009
		€'000		€'000		€'000		€'000
	Cash	75,232		(24,632)		(4,102)		46,498
	Overdrafts	(225)		(2,044)		-		(2,269)
	Cash and cash equivalents	75,007		(26,676)		(4,102)		44,229
	Finance lease obligations	(1,831)		682		(47)		(1,196)
	Loans	(248,301)		(10,132)		15,044		(243,389)
	Net Debt	(175,125)		(36,126)		10,895		(200,356)

6      Dividends

No dividend will be paid in respect of the period ended 31 January 2009. 

7      Contingent liabilities

The group is not aware of any major changes with regard to contingent liabilities in comparison with the situation as of 31 July 2008.

8      Subsequent events

On 3 February 2009, Origin announced that it had reached agreement with Austevoll Seafoods ASA (Austevoll) to combine their respective Irish, UK and Norwegian fishmeal and fish oil operations. As part of the agreement Origin transferred its interest in its marine proteins operations (United Fish Industries) to Austevoll's wholly owned Norwegian subsidiary Welcon Invest AS together with a cash contribution of €16m. In return for this Origin obtained a 50% shareholding in the combined business. Proforma turnover of the enlarged Welcon Invest AS is approximately €175m. 

9       Release of half yearly condensed financial statements

These half yearly condensed financial statements were released by the Board on 9 March 2009.

 

END

 

 

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