27th Sep 2024 07:00
Roebuck Food Group plc
Interim results 2024
Results
Roebuck Food Group plc (AIM: RFG) is pleased to announce its interim results for the six months to end June 2024.
During this period, management have completed a fundamental strategic review of the business and have developed a new strategic vision for Roebuck Food Group plc. This vision has a number of guiding pillars including the advancement and implementation of climate mitigation technologies, throughout the agricultural supply chain, from primary production through to food consumption. At this juncture, management believe we can build a business of significant scale and size over the next number of years and we are presently evaluating a number of significant investment opportunities.
As part of this new strategic vision, management have completed the divestment of two subsidiaries (Town View Foods and Cantwellscourt Farm), which were no longer considered appropriate to the direction management want to take the business. The sale of Town View Foods has results in a significant goodwill write off of circa Stg £2.3m. Net debt stood at £0.1m at end June 2024.
Continuing Operations
Moorhead & McGavin, the company which we acquired in December 2023 and which is focussed on the plant based opportunity, is growing strongly. Sales were up 22%, in the first half of the year, compared with the prior year. We continue to invest in people to grow this business and notwithstanding this investment, we expect the business to improve its profitability this year, on 2023 levels.
Foro Food Solutions, our Cork based sourcing business comprises two parts; the sourcing business which engages primarily with the food service and food manufacturing segments of the food market and a newer addition, which engages primarily with retail. The legacy division is profitable and growing strongly from a very small base. The latter will need some time to cover its investment in people. This business is benefitting from some synergies with Moorhead & McGavin and vice versa.
Discontinued Operations
The period under review and into the second half of the year has seen the divestment of two of our subsidiaries; Town View Foods (which has resulted in a substantial goodwill write off of £2.3m in the interim figures just published) together with Cantwellscourt Farm ltd.
The loss at Cantwellscourt Farm comprises a write down on the asset, professional fees, together with trading losses, reflecting the time of the year when the acquisition was completed (dairy farms typically lose money in the first few months of the year). The losses at Town View Foods comprise a trading loss of £158,479 in the period under review, together with accruals for trading losses in July and August, expenses provided for on the sale and the aforementioned good will write off.
Outlook
The aforementioned divestments will greatly simplify Roebuck Food group, resulting in a reduced overhead and with a balance sheet with a small net debt of circa £0.1m.
Management are excited for the prospects of the group. We are seeing good opportunities to grow the business in areas where we have capability and competence and look forward to delivering for shareholders in the months ahead.
Dividend
The board does not recommend the payment of a dividend.
Roebuck Food Group Plc |
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Consolidated income statement |
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For the six months ended 30 June 2024 |
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| Six months | Six months | ||||||||||||||
| ended | ended | ||||||||||||||
| 30 June | 30 June | ||||||||||||||
| 2024 | 2023 | ||||||||||||||
| (Unaudited) | (Restated) | ||||||||||||||
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| £'000 | £'000 | ||||||||||||||
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Continuing operations |
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Revenue |
| 5,966 | 1,664 | |||||||||||||
Cost of sales |
| (5,688) | (1,601) | |||||||||||||
Gross profit |
| 278 | 63 | |||||||||||||
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Administrative expenses |
| (564) | (397) | |||||||||||||
Acquisition and related costs |
| (35) | - | |||||||||||||
Operating loss from continuing operations |
| (321) | (334) | |||||||||||||
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Finance income - interest receivable |
| 3 | - | |||||||||||||
Finance expenses - lease interest |
| - | - | |||||||||||||
Finance expenses - interest on bank loans |
| (7) | (3) | |||||||||||||
Loss on continuing activities before taxation |
| (325) | (337) | |||||||||||||
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Income taxes - Corporation tax |
| - | - | |||||||||||||
Income taxes - Deferred tax |
| - | - | |||||||||||||
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Loss for the period attributable to owners of the parent from continuing operations |
| (325) | (337) | |||||||||||||
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Loss from discontinued activities |
| (3,753) | (197) | |||||||||||||
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Loss for the period |
| (4,078) | (534) | |||||||||||||
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Other comprehensive income |
| (11) | (100) | |||||||||||||
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Total comprehensive income for the year |
| (4,089) | (634) | |||||||||||||
Earnings per share expressed in pence per share: |
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From continuing operations - basic |
| (0.65)p | (0.67)p | |||||||||||||
- diluted |
| (0.65)p | (0.67)p | |||||||||||||
From discontinued operations - basic |
| (7.5)p | (0.39)p | |||||||||||||
- diluted |
| (7.5)p | (0.39)p | |||||||||||||
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Roebuck Food Group plc |
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Financial position |
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As at 30 June 2024 |
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| As at | As at | As at |
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30 June | 30 June | 31 December |
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2024 | 2023 | 2023 |
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(Unaudited) | (Unaudited) | (Audited) |
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£'000 | £'000 | £'000 |
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ASSETS |
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Non-current assets |
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Goodwill | - | 2,338 | 2,338 |
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Biological assets | - | 1,015 | 642 |
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Intangible assets | 570 | - | 600 |
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Property, plant and equipment | 1,091 | 2,024 | 3,048 |
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1,661 | 5,377 | 6,628 |
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Current assets |
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Trade and other receivables | 1,645 | 4,747 | 3,649 |
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Inventories | 1,061 | 794 | 1,044 |
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Assets held for sale | 4,274 | - | - |
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Cash and cash equivalents | 51 | 1,055 | 1,186 |
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7,031 | 6,596 | 5,879 |
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TOTAL ASSETS | 8,692 | 11,973 | 12,507 |
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Equity attributable to equity holders of the parent And non-controlling interest |
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Share capital | 990 | 564 | 990 |
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Share premium account | 2,094 | - | 2,094 |
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Other reserves | (105) | (168) | (94) |
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Retained earnings | (725) | 4,670 | 3,353 |
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TOTAL EQUITY | 2,254 | 5,066 | 6,343 |
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Non-current liabilities |
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Borrowings | 28 | 943 | 932 |
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Deferred tax | 72 | 58 | 168 |
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| 100 | 1,001 | 1,100 |
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Current liabilities |
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Trade and other payables | 1,770 | 3,356 | 3,826 |
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Liabilities held for sale | 4,405 | 154 | - |
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Borrowings | 163 | 2,396 | 1,238 |
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6,338 | 5,906 | 5,064 |
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TOTAL EQUITY AND LIABILITIES | 8,692 | 11,973 | 12,507 |
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Roebuck Food Group plc | ||||||||||||||||
Consolidated statement of changes in equity For the six months ended 30 June 2024 | ||||||||||||||||
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| Share | Share | Other | Other Distributable | Retained |
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| capital | premium | Reserves | Reserves | earnings | Total |
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£'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
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At 1 January 2023 | 564 | - | (68) | - | 5,204 | 5,700 |
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Profit for the financial year | - | - | - | - | (534) | (534) |
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Foreign exchange gain | - | - | (100) | - | - | (100) |
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Total comprehensive income for the period | - | - | (100) | - | (534) | (634) |
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Issue of share capital | - | - | - | - | - | - |
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Equity dividends paid (recognised directly in equity) | - | - | - | - | - | - |
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Transactions with owners | - | - | (100) | - | (534) | (634) |
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At 30 June 2023 | 564 | - | (168) | - | 4,670 | 5,066 |
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Net profit for the financial period | - | - | - | - | (1,317) | (1,317) |
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Foreign exchange loss | - | - | 74 | - | - | 74 |
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Total comprehensive income for the period | - | - | 74 | - | (1,317) | (1,243) |
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Issue of share capital | 426 | 2,224 | - | - | - | 2,650 |
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Share issue costs | - | (130) | - | - | - | (130) |
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Transactions with owners | 426 | 2,094 | 74 | - | (1,317) | 1,277 |
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At 31 December 2023 | 990 | 2,094 | (94) |
- | 3,353 | 6,343 |
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Net profit for the financial period | - | - | - | - | (4,078) | (4,078) | ||
Foreign Exchange Gain | - | - | (11) | - | - | (11) | ||
Total comprehensive income for the period | - | - | (11) | - | (4,078) | (4,089) |
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Issue of share capital | - | - | - | - | - | - | ||
Equity dividends paid (recognised directly in equity) | - | - | - | - | - | - | ||
Transactions with owners | - | - | (11) | - | (4,078) | (4,089) |
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At 30 June 2024 | 990 | 2,094 | (105) |
- | (725) | 2,254 |
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Note: The accounting policies applied throughout the period are consistent with those applied for the year ended 31 December 2023, as set out in the 2023 Annual Report.
Enquiries:
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| Six months | Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ended | Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 30 June | 31 December |
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