Final Results

RNS Number : 5177C

Ukrproduct Group Ltd

17 April 2013

 



17 April, 2013                                                                   

Ukrproduct group limited

FINAL RESULTS FOR THE FINANCIAL YEAR

ENDING 31 DECEMBER 2012

Ukrproduct Group Limited (AIM: UKR), one of the leading producers and distributors of branded dairy products and beverages (kvass) in Ukraine announces its audited consolidated IFRS results for the twelve months ending 31 December, 2012.  

Financial Highlights:

·      Revenue increased by 19% to GBP 60.2 m (2011: GBP 50.5 m)

·      Gross profit increased by 33% to GBP 9.0 m ( 2011: GBP 6.8 m)

·      EBITDA increased by 68% to GBP 3.2 m (2011: GBP 1.86 m)

·      Tax decreased with effective rate reduced through improved tax planning

·      Profit after Tax more than doubled to GBP 0.85 m in 2012 (2011: GBP 0.4 m)

·      Dividend withheld in view of a major cost saving capital expenditure program

·      Year end cash balance stood at GBP 0.42 m (2011: GBP 0.51 m) and the Group's cash resources and facilities are sufficient to meet current obligations in the short and medium term

Operational Highlights:

·      Dairy products showed a good performance with revenue increasing by 2.6% to GBP 35.6 m (2011: 34.7  m) and gross profit increasing by 21% to GBP 7.6 m (2011: GBP 6.3 m)

·      Increased the market leadership in processed cheese achieving market share of 22.6% (16.3% in 2011)

·      Confirmed the market leading position in packaged butter maintaining the market share at 22.6% (23% in 2011)

·      SMP (Skimmed Milk Powder) revenues increased by 18.5% to GBP 8.9 m (2011: GBP 7.5 m), while gross profitability showed a gradual recovery trend compared to 2011 although still below the break-even point minus GBP 0.25 m (2011: minus GBP 0.46 m)

·      Beverages(recently acquired kvass business) showed the revenue GBP 2.4 m or 4% of total sale and a gross profit of GBP 1.2 m. This was previously accounted in the distribution services

·      Distribution Services: revenues increase by 60% to GBP 13.4 m (2011: GBP 6.7 m) but gross profit declined by 50.7% to GBP 0.48 m (2011: GBP 0.61 m) due to the acquisition of kvass business

·      Completed the first stage of the reconstruction project at the plant in Starokostiantyniv under a loan facility provided by European Bank for Reconstruction and Development.

The full text of the 2012 Annual Report, incorporating the 2012 Audited Financial Statements, is available on the Company's website www.ukrproduct.com.

A summary of the Audited Financial Statements and certain extracts from the Notes to the Financial Statements follow in this announcement.  Shareholders are advised to read the full text of the 2012 Annual Report in its entirety.

Sergey Evlanchik, CEO of Ukrproduct, commented:

 "The Company was able to deliver a strong recovery in profitability within the trading environment that continued challenging. In dairy the Russian ban on imports led to higher milk volumes availability and lower prices until September 2012. This together with the Company holding its strong market position in butter and expanding that in processed cheese provided the much improved performance. In beverages the now acquired kvass business was further developed leading to a major stride forward in sales with encouraging margins. The cost improvement program gained further momentum. This was aided especially by the major capital project at the plant in Starokostintyniv.

The Company can now be seen as branded dairy and beverages business with a wider base for profitable growth."

Conference call information

Ukrproduct management will host a conference call today at 9.00 am (London time) / 10.00 am (CET) / 11.00 am (Kiev Time) to present and discuss the audited FY2012 results.

The dial-in numbers for the conference call are:

[phone] - Standard International Access 0808 109 0700 - UK Toll Free 0 800 50 2059 - Ukraine Toll Free

Password - UKR

For the play-back or further information, please visit www.ukrproduct.com or contact:

Ukrproduct Group Ltd. Sergey Evlanchik Chief Executive Officer Tel: [phone] [e-mail] Seymour Pierce Nominated advisor and Broker Stewart Dickson/Julian Erleigh Tel: [phone] Jeremy Stephenson Tel: [phone]

The financial information provided in this announcement does not constitute audited statutory financial information. The summarised financial statements follow however the full text of the 2012 Annual Report, incorporating the 2012 Audited Financial Statements, is available in pdf form on the Company's website www.ukrproduct.com.

CONSOLIDATED INCOME STATEMENT

year ended year ended 31 December 2012 31 December 2011 £ '000 £ '000 Revenue                     60,212                     50,524 Cost of sales                   (51,177)                   (43,725) GROSS PROFIT                       9,035                       6,799 Administrative expenses                     (3,059)                     (2,855) Selling and distribution expenses                     (3,473)                     (2,884) Net other operating expenses                        (494)                          (89) PROFIT FROM OPERATIONS                       2,009                          971 Net finance costs                        (771)                        (428) Effect of foreign currency translation                          (53)                          288 PROFIT BEFORE TAXATION                        1,185                          831 Income tax expenses                        (333)                        (431) PROFIT FOR THE YEAR                          852                          400 Attributable to: Owners of the Parent                          852                          410 Non-controlling interests                             -                            (10) Earnings per share: Basic                         2.09                         1.00 Diluted                         2.09                         1.00

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

																										year ended							year ended
																										31 December 2012							31 December 2011
																										£ '000							£ '000
PROFIT FOR THE YEAR																										852							400
OTHER COMPREHENSIVE INCOME:
Exchange differences on translation to the presentation currency																										(885)							(28)
Income from changes in tax rates																										83							206
OTHER COMPREHENSIVE INCOME, NET OF TAX																										(802)							178
TOTAL COMPREHENSIVE INCOME FOR THE YEAR																										50							578
Attributable to:
Owners of the Parent																										50							588
Non-controlling interests																										-							(10)

			CONSOLIDATED STATEMENT OF FINANCIAL POSITION
																					As at		As at
																					31 December 2012		31 December 2011
																					£ '000		£ '000
ASSETS
Non-current assets
Property, plant and equipment																					18,447		17,173
Intangible assets																					1,238		1,055
Available for sale investments																					30		169
Deferred tax assets																					46		50
																					19,761		18,447
Current assets
Inventories																					3,415		4,634
Trade and other receivables																					6,899		6,906
Current taxes																					2,990		404
Other financial assets																					196		177
Cash and cash equivalents																					415		512
																					13,915		12,633
TOTAL ASSETS																					33,676		31,080
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital																					4,082		4,082
Other reserves																					1,726		2,868
Retained earnings																					13,496		12,367
																					19,304		19,317
Non-controlling interests																					-		-
																					19,304		19,317
Non-Current Liabilities
Bank borrowings																					4,903		3,844
Deferred tax liabilities																					670		881
																					5,573		4,725
Current liabilities
Bank borrowings																					4,056		3,514
Trade and other payables																					4,512		3,165
Current income tax liabilities																					110		108
Other taxes payable																					121		251
																					8,799		7,038
TOTAL EQUITY AND LIABILITIES																					33,676		31,080

CONSOLIDATED STATEMENT OF CASH FLOWS

																					year ended							year ended
																					31 December 2012							31 December 2011
																					£ '000							£ '000
Cash flows from operating activities
Profit before taxation for the year																					1,185							831
Adjustments for:
Exchange difference																					53							(288)
Depreciation and amortisation																					1,164							890
(Profit)/loss on disposal of non-current assets																					25							(214)
Impairment of trade receivables																					120							51
Impairment of inventories																					76							94
Impairment of available for sale investments																					36							-
Income from disposal of subsidiaries																					-							(18)
Interest income																					(11)							(19)
Interest expense																					782							447
Decrease / (increase) in inventories																					908							(677)
Increase in trade and other receivables																					(2,874)							(2,789)
Increase in trade and other payables																					942							1,842
Cash generated from operations																					2,406							150
Interest received																					11							19
Income tax paid																					(519)							(511)
Net cash generated by / (used in) operating activities																					1,898							(342)
Cash flows from investing activities
Payments for property, plant and equipment and intangible assets																					(3,321)							(3,792)
Proceeds from sale of property, plant and equipment																					50							422
Purchase / sale of investments																					-							113
Repayments of loans issued																					(27)							(222)
Net cash used in investing activities																					(3,298)							(3,479)
Cash flows from financing activities
Dividends paid																					-							(204)
Interest paid																					(782)							(447)
(Decrease) / increase in short term borrowing																					(118)							561
Increase in long term borrowing																					2,182							3,707
Net cash generated by financing activities																					1,282							3,617
Net decrease in cash and cash equivalents																					(118)							(204)
Effect of exchange rate changes on cash and cash equivalents																					21							40
Cash and cash equivalents at the beginning of the year																					512							676
Cash and cash equivalents at the end of the year																					415							512

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

										Attributable to owners of the parent																										Non-controlling interests				Total Equity
													Share capital				Share premium				Revaluation reserve			Retained earnings				Translation reserve				Total
													£ '000				£ '000				£ '000			£ '000				£ '001				£ '000				£ '000				£ '000
As at 1 January 2011													4,082				4,555				4,366			12,817				(5,426)				18,967				20				18,987
Profit for the year													-				-				-			410				-				410				(10)				400
Other comprehensive income													-				-				-			-				-				-				-
Income from changes of tax rates													-				-				206			-				-				206				-				206
Currency translation differences													-				-				-			-				(28)				(28)				-				(28)
Total  comprehensive income													-				-				206			410				(28)				588				(10)				578
Transactions with owners
Dividends paid (Note 28)													-				-				-			(204)				-				(204)				-				(204)
Total transactions with owners													-				-				-			(204)				-				(204)				-				(204)
Depreciation on revaluation of property, plant and equipment													-				-				(302)			302				-				-				-				-
Reduction of revaluation reserve													-				-				(136)			102				-				(34)				-				(34)
Exclusion from Group  (Note 2.1 (c))													-				-				-			(1,060)				-				-				(10)				(10)
As at 31 December 2011													4,082				4,555				4,134			12,367				(5,454)				19,317				-				19,317
Profit for the year													-				-				-			852				-				852				-				852
Other comprehensive income
Income from changes of tax rates													-				-				83			-				-				83				-				83
Currency translation differences													-				-				-			-				(885)				(885)				-				(885)
Total  comprehensive income													-				-				83			852				(885)				50				-				50
Transactions with owners
Dividends paid (Note 28)													-				-				-			-				-				-				-				-
Total transactions with owners													-				-				-			-				-				-				-				-
Depreciation on revaluation of property, plant and equipment													-				-				(283)			283				-				-				-				-
Reduction of revaluation reserve													-				-				(57)			(6)				-				(63)				-				(63)
As at 31 December 2012													4,082				4,555				3,877			13,496				(6,339)				19,304				-				19,304

These financial statements were approved and authorised for issue by the Board of Directors on 16 April 2013.

Notes to the Consolidated Financial Statements

1.   Basis of Preparation

The consolidated financial statements have been prepared on a historical cost basis, except for property, plant and equipment, intangible asset (Customer list) that have been measured at fair value. The consolidated financial statements are presented in British pounds sterling and all values are rounded to the nearest thousand (£000) except where otherwise indicated. The consolidated financial statements have been prepared on a going concern basis.

2.   Earnings per share

Basic earnings per share have been calculated by dividing net profit attributable to the ordinary shareholders by the weighted average number of shares in issue.
																					year ended							year ended
																					31 December 2012							31 December 2011
																					£ '000							£ '000
Net profit attributable to ordinary shareholders																					852							410
Weighted number of ordinary shares in issue																					40,817,599							40,817,599
Basic earnings per share, pence																					2.09							1.00
Diluted average number of shares																					40,817,599							40,817,599
Diluted earnings per share, pence																					2.09							1.00

3.   Dividends

Due to the business circumstances dictating the prudence and cash conservation, the Board has decided not to pay a final dividend in respect of the year ended 31 December 2012.

 

END

 

 

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