17th Sep 2008 07:00
RNS Number : 6004D
Origin Enterprises Plc
17 September 2008
Preliminary Results Announcement
Year Ended 31 July 2008
Financial Highlights
|
|
2008
€’000
|
2007
€’000
|
%
increase
|
|
Group revenue
|
1,504,242
|
889,363
|
69
|
|
Group operating profit*
|
|
|
|
|
- Agri-Nutrition
|
55,012
|
27,653
|
99
|
|
- Food
|
15,914
|
10,474
|
52
|
|
Total Group operating profit*
|
70,926
|
38,127
|
86
|
|
Profit before financing costs*
|
73,178
|
41,801
|
75
|
|
Adjusted fully diluted EPS (cent)*
|
34.05
|
23.93
|
42
|
|
Comparable adjusted fully diluted EPS (cent)**
|
34.05
|
19.63
|
74
|
|
Net cashflow from operating activities
|
74,615
|
44,903
|
66
|
|
Group net debt
|
175,125
|
71,702
|
-
|
*before intangible amortisation and exceptional items
**2007 adjusted to reflect the current capital structure of the Group
Highlights
·; Transformational year for Origin with the completion of strategic acquisitions combined with outstanding financial and operating performance.
·; Acquisition of Masstock significantly extends the Group’s business model and provides geographic expansion opportunity.
·; Acquisition of full control of Odlums Group with integration well advanced.
·; Investment in direct farming through the acquisition of a 20% stake in Continental Farmers Group.
·; Submission of planning application for the Group’s catalyst riverfront site in Cork South Docks.
·; Continued strong cashflow generation.
Origin Enterprises plc
Chief Executive Officer’s comment:
Commenting on the announcement of the 2008 results, Origin Chief Executive Officer, Tom O’Mahony said:
“2008 was a transformational year for Origin with an 86 per cent increase in Group operating profit reflecting strong underlying growth momentum across our enlarged Agri-Nutrition business. Masstock, our largest acquisition to-date, is the leading provider of integrated agronomy and farming systems advisory services to arable and grassland farm enterprises. Origin is now ideally positioned at the forefront in the provision of profitable and sustainable solutions directly to primary food producers. We also acquired the balance of Odlums Group and integration within our Food Division is well advanced.
During the year substantial progress was made in the development of the Group’s business model and we now have an excellent platform with an enhanced management capability to support further progress. The Group is well positioned for another year of growth in 2009.”
The Preliminary Results Announcement is available on the company website www.originenterprises.com. The institutional presentation will be posted on the website during the day.
ENDS
Enquiries:
Origin Enterprises plc
Brendan Fitzgerald, Chief Financial Officer Tel: +353 1 612 1259
Murray Consultants
JoeMurray Tel: +353 1 498 0300
Tel: +353 86 253 4950
Preliminary Results Statement
Financial Review
Origin Enterprises plc (‘Origin’ or ‘the Group’), announces a 74 per cent increase in comparable adjusted fully diluted earnings per share** for the year ending 31 July 2008 to 34.05c compared to 19.63c in the previous year. Profit before financing costs* for the financial year increased by 75 per cent to €73.2 million.
Revenue
Group revenue was 69 per cent higher at €1.5 billion with underlying revenue growth excluding the impact of acquisitions of 26 per cent.
The Agri-Nutrition businesses achieved revenues of €1.17 billion, an increase of 80 per cent. Underlying revenue growth excluding the impact of acquisitions was 34 per cent. The Food businesses recorded revenue growth of 40 per cent to €339 million. Excluding the impact of the Odlums acquisition underlying revenue growth was 6 per cent.
Operating profit
Group operating profit* increased by 86 per cent to €70.9 million with underlying growth in operating profit excluding acquisitions of 42 per cent.
Operating profit* from the Agri-Nutrition businesses increased by 99 per cent to €55.0 million. Excluding the impact of acquisitions, operating profit from the Agri-Nutrition businesses grew by 55 per cent. Operating profit* from the Food businesses increased by 52 per cent to €15.9 million. Excluding the impact of acquisitions, operating profit* increased by 6 per cent.
Associates
Following the acquisition of the controlling interest in Odlums in August 2007, Origin’s associate investment in the year under review primarily consisted of the 50 per cent interest in the animal feed manufacturer John Thompson and Sons Ltd, which delivered a satisfactory performance during the year.
Finance Costs
Net finance costs amounted to €14.6 million and are covered 5.6 times by EBITDA.
Net cashflow from operating activities
Net cashflow from operating activities increased by 66 per cent to €74.6 million, attributable to a strong underlying performance across the businesses and focussed cash management against the backdrop of significant increases in commodity prices.
Balance Sheet
Net debt at 31 July 2008 was €175.1 million compared with €71.7 million at the end of the previous year. This represents an excellent performance after a capital expenditure and acquisition spend of €179.0 million.
Dividend
As previously outlined no dividend will be paid in respect of the year ended 31 July 2008. The Board will review its dividend policy in advance of the announcement of its Interim Results in March 2009.
*Profit before financing costs and Group operating profit are stated before intangible amortisation and exceptional items.
**Before intangible amortisation and exceptional items. The 2007 comparative has been adjusted to reflect the current capital structure of the Group.
Review of Operations
2008 was a transformational year for Origin driven by strong demand led growth momentum across the Group’s markets and significant acquisition and business development initiatives.
Agri-Nutrition
|
|
2008
€’000
|
2007
€’000
|
% Change
|
Excluding Acquisitions
|
|
Revenue
|
1,165,262
|
647,683
|
80%
|
34%
|
|
|
|
|
|
|
|
Operating profit*
|
55,012
|
27,653
|
99%
|
55%
|
|
|
|
|
|
|
|
Operating profit %
|
4.7
|
4.3
|
-
|
-
|
|
|
|
|
|
|
Agri-Nutrition comprises agri-inputs (feed ingredients and fertiliser blending and distribution), integrated on-farm agronomy and marine proteins and oils (fishmeal and fish oil manufacturing and distribution). These businesses provide customised solutions that address the efficiency, quality and output requirements of primary food producers.
Security of global food supply is placing an increasing emphasis on systems and technologies underpinning primary food production. This new focus is multi faceted comprising efficient input sourcing, prescriptive farming systems, yield enhancement technologies and the identification of regions with well situated productive soils capable of large scale efficient production.
The Group has made significant progress during 2008 in the development of its Agri-Nutrition businesses through acquisition and capital investment. We now have an extended business model with increased geographic reach potential which places the Group at the forefront in supporting the increasing requirement for systems and technologies underpinning high performing and scalable primary food production.
The Group’s strategic relationships with leading global suppliers of feed ingredients, crop protection and nutrition confers substantial sourcing benefits that are increasingly important in an environment of significantly greater volatility.
In Ireland the Feed Ingredients and Fertiliser businesses delivered a very satisfactory performance. Volume growth underpinned by stable livestock numbers drove the performance in feed. Fertiliser also delivered a strong performance against the background of higher prices driving an overall reduction in usage.
The Group’s UK fertiliser business achieved volume growth on the back of higher application rates in the arable sector as farmers sought to maximise yields and benefit from higher output prices. Increased worldwide demand for fertiliser led to tighter supplies and the business delivered an excellent performance supported by its strategically located distribution facilities and very strong operational capability.
In February 2008, Origin acquired Masstock Group Holdings Limited (‘Masstock’), the leading provider of integrated agronomy and farming systems advisory services to arable and grassland farm enterprises across the United Kingdom and Poland. Masstock delivers prescription solutions providing farmers with the optimum combinations of crop varietal selection, cultivation systems, crop nutrition and protection designed to maximise quality and yield. This competence is underpinned by Masstock’s advanced technical research based system in partnership with global manufacturers of seed, nutrition and crop protection.
The acquisition of Masstock represents an exceptional strategic fit with our existing Agri-Nutrition business and Masstock delivered an excellent contribution in the seasonally important second half of the financial year driven by increased cereal acreage.
In July 2008, Origin acquired a 20 per cent interest in Continental Farmers Group plc (‘Continental Farmers’). Continental Farmers is a large scale producer of high value arable crops that has built a successful farming business in the Vistula Delta area of Northern Poland over the past 14 years. In 2006, Continental Farmers commenced the development of an intensive arable farming operation in the L’Viv region of Western Ukraine. Continental Farmers land holding currently comprises 2,500 hectares (‘ha’) in Poland and over 18,000 ha in Ukraine. Origin will actively support the growth and development of Continental Farmers through the provision of input sourcing programmes and agronomy expertise.
Marine Proteins delivered a satisfactory performance against the background of lower price realisations for fishmeal and reduced raw material intake. The business continues to benefit from growth in aquaculture and is also benefiting from higher inclusion levels of fishmeal in pig and poultry diets.
Pressure on raw material availability combined with higher landing and conversion costs present a compelling case for industry consolidation. Origin is ideally positioned to lead and support a consolidation initiative as the largest producer of fishmeal and fish oil in Ireland and the UK and third largest in Europe. Discussions which commenced earlier in the year with Austevoll Seafood ASA with a view to combining our respective fishmeal and fish oil operations in Europe are ongoing.
Food
|
|
2008
€’000
|
2007
€’000
|
% Change
|
Excluding Acquisitions
|
|
Revenue
|
338,980
|
241,680
|
40%
|
6%
|
|
|
|
|
|
|
|
Operating profit*
|
15,914
|
10,474
|
52%
|
6%
|
|
|
|
|
|
|
|
Operating profit %
|
4.7
|
4.3
|
-
|
-
|
|
|
|
|
|
|
Food delivered a very satisfactory performance during 2008 with the Group’s brands maintaining their strong market positions and achieving good underlying sales growth. One of the key features of the year was the significant increase in raw material prices experienced across a number of categories.
The Shamrock and Roma brands achieved excellent sales growth in the year reflecting continuing momentum through category and channel extension. The Shamrock Just brand proved very successful in the healthy snacking market, gaining increased distribution. Roma’s extension into Mediterranean food ingredients combined with a renewed focus and rebranding of Roma Organics, resulted in increased distribution driving strong underlying sales growth. Foodservice had an excellent year increasing its presence in a number of new channels and the agency business continued to perform well. The businesses were successful in recovering significant input cost inflation during the year.
Odlums, Ireland’s premier cereal miller, delivered a satisfactory performance in the period. The business experienced a challenging first half relating to the timing of the implementation of price increases reflecting higher raw material costs which were fully implemented from the start of the second half of the financial year. Key sales, marketing and distribution activities were integrated into Shamrock Foods during the year resulting in improved customer service levels and streamlined distribution.
Odlums, Shamrock and Roma are market leading brands across the home baking, snacking and ambient Italian food ingredients categories. This complementary product range is now supported by a focussed sales, marketing, distribution and product development capability enabling the Group to capitalise on the key characteristics demanded by today’s consumers for quality, healthy and natural products.
Property
The Group's major property asset comprises its interest in the Cork South Docks. Following the acquisition of Odlums this now comprises a 32 acre footprint with prime water frontage.
After extensive consultation the Cork South Docks Local Area Plan ('SDLAP') was formally adopted by Cork City Council in February 2008. The SDLAP provides greater certainty on the extent and timing of development and Origin supports the recommendations set out in the plan.
Following the adoption of the SDLAP Origin submitted a detailed Masterplan for its entire 32 acre footprint. A planning application for the Group’s first two acre riverfront site at the apex of the docks was submitted in June 2008. This planning application is for buildings with an aggregate area of 51,000 sq. metres comprising a mixture of retail, office and residential space.
We will continue to advance our objective of maximising the marketability of our surplus property assets over the medium term.
Outlook
During 2008 the Group made substantial investment in the expansion of its capability to service primary food producers. We are confident that our extended business model positions the Group to provide superior benefits to our customers and we are well placed to achieve further growth in the current financial 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
Group income statement
for the year ended 31 July 2008
|
|
2008
|
|
2007
|
|
|
€’000
|
|
€’000
|
|
|
|
|
|
|
Revenue
|
1,504,242
|
|
889,363
|
|
Cost of sales
|
(1,335,032)
|
|
(793,046)
|
|
|
|
|
|
|
Gross Profit
|
169,210
|
|
96,317
|
|
Operating costs, net
|
(100,681)
|
|
(57,841)
|
|
|
|
|
|
|
Operating Profit
|
68,529
|
|
38,476
|
|
Share of profit of associates
|
2,252
|
|
3,674
|
|
|
|
|
|
|
Profit before financing costs
|
70,781
|
|
42,150
|
|
Financing income
|
5,287
|
|
2,310
|
|
Financing costs
|
(19,859)
|
|
(4,955)
|
|
|
|
|
|
|
Profit before tax
|
56,209
|
|
39,505
|
|
Income tax expense
|
(11,747)
|
|
(6,856)
|
|
|
|
|
|
|
Profit for the financial year
|
44,462
|
|
32,649
|
|
|
|
|
|
|
Attributable as follows:
|
|
|
|
|
Equity shareholders
|
44,701
|
|
32,686
|
|
Minority interest
|
(239)
|
|
(37)
|
|
|
|
|
|
|
|
44,462
|
|
32,649
|
|
|
|
|
|
|
|
|
|
|
Origin Enterprises plc
Group income statement (continued)
for the year ended 31 July 2008
Earnings per share
|
|
2008
|
2007
|
|
|
|
|
|
Basic – adjusted
|
|
|
|
Excluding amortisation and exceptional items
|
35.23c
|
24.65c
|
|
|
|
|
|
Diluted – adjusted
|
|
|
|
Excluding amortisation and exceptional items
|
34.05c
|
23.93c
|
|
|
|
|
|
Basic
|
|
|
|
Including amortisation and exceptional items
|
33.61c
|
24.57c
|
|
|
|
|
|
Diluted
|
|
|
|
Including amortisation and exceptional items
|
32.47c
|
23.86c
|
Origin Enterprises plc
Group statement of recognised income and expense
for the year ended 31 July 2008
|
|
2008
|
|
2007
|
|
|
€’000
|
|
€’000
|
|
Items of income and expense recognised
directly in equity
|
|
|
|
|
Net revaluation of previously held interest in associate
|
17,960
|
|
-
|
|
Foreign exchange translation effects
- foreign currency net investments
- foreign currency borrowings
|
(11,193)
2,755
|
|
-
2,053
|
|
Actuarial (loss)/gain on Group’s defined benefit pension schemes
|
(19,591)
|
|
7,039
|
|
Deferred tax effect of actuarial (loss)/gain
|
2,377
|
|
(895)
|
|
Actuarial gain on associate’s defined benefit scheme, net of deferred tax
|
1,778
|
|
3,745
|
|
Gain/(loss) relating to cash flow hedges
|
553
|
|
(1,027)
|
|
Deferred tax effect of cash flow hedges
|
(71)
|
|
298
|
|
Revaluation gains on properties transferred to
investment properties
|
-
|
|
87,380
|
|
Deferred tax effect on gains on revaluation of properties transferred to investment properties
|
-
|
|
(15,208)
|
|
|
|
|
|
|
Net (expense)/income recognised directly in equity
|
(5,432)
|
|
83,385
|
|
Profit for the financial year
|
44,462
|
|
32,649
|
|
|
|
|
|
|
Total recognised income and expense for the year
|
39,030
|
|
116,034
|
|
|
|
|
|
|
Attributable as follows:
|
|
|
|
|
Equity shareholders
|
39,531
|
|
116,071
|
|
Minority interest
|
(501)
|
|
(37)
|
|
|
|
|
|
|
Total recognised income and expense for the year
|
39,030
|
|
116,034
|
|
|
|
|
|
Origin Enterprises plc
Group balance sheetas at 31 July 2008
|
|
2008
|
|
2007
|
|
|
€’000
|
|
€’000
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Non current assets
|
|
|
|
|
Property, plant and equipment
|
106,099
|
|
71,149
|
|
Investment properties
|
192,418
|
|
165,473
|
|
Goodwill and intangible assets
|
116,367
|
|
15,220
|
|
Investments in associates
|
32,844
|
|
26,521
|
|
Deferred tax assets
|
4,651
|
|
1,633
|
|
|
|
|
|
|
|
|
|
|
|
Total non current assets
|
452,379
|
|
279,996
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Inventory
|
160,669
|
|
67,476
|
|
Trade and other receivables
|
203,156
|
|
84,993
|
|
Derivative financial instruments
|
1,958
|
|
-
|
|
Cash and cash equivalents
|
75,232
|
|
31,989
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
441,015
|
|
184,458
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
893,394
|
|
464,454
|
|
|
|
|
|
|
|
|
|
|
Origin Enterprises plc
Group balance sheet (continued)
as at 31 July 2008
|
|
2008
|
|
2007
|
|
|
€’000
|
|
€’000
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
Called up share capital
|
1,386
|
|
1,382
|
|
Share premium
|
265,182
|
|
265,182
|
|
Retained earnings and other reserves
|
(44,686)
|
|
(84,926)
|
|
|
|
|
|
|
Total equity attributable to equity shareholders of parent
|
221,882
|
|
181,638
|
|
|
|
|
|
|
Minority interest
|
1,495
|
|
1,996
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY
|
223,377
|
|
183,634
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Non current liabilities
|
|
|
|
|
Interest bearing borrowings
|
249,272
|
|
83,000
|
|
Employee benefits
|
23,071
|
|
1,771
|
|
Deferred government grants
|
2,644
|
|
2,674
|
|
Deferred tax liabilities
|
42,741
|
|
31,740
|
|
Deferred consideration on acquisition
|
12,483
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total non current liabilities
|
330,211
|
|
119,185
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Interest bearing borrowings
|
1,085
|
|
20,691
|
|
Trade and other payables
|
328,350
|
|
130,172
|
|
Corporation tax payable
|
6,751
|
|
8,556
|
|
Derivative financial instruments
|
3,620
|
|
2,216
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
339,806
|
|
161,635
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
670,017
|
|
280,820
|
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES
|
893,394
|
|
464,454
|
|
|
_______
|
|
_______
|
Origin Enterprises plc
Group cash flow statement
for the year ended 31 July 2008
|
|
|
2008
|
|
2007
|
|
|
|
€’000
|
|
€’000
|
|
Cash flows from operating activities
|
|
|
|
|
|
Profit before tax
|
|
56,209
|
|
39,505
|
|
Financial income
|
|
(5,287)
|
|
(2,310)
|
|
Financial expense
|
|
19,859
|
|
4,955
|
|
Share of profit of associates
|
|
(2,252)
|
|
(3,674)
|
|
Depreciation of property, plant and equipment
|
|
9,060
|
|
7,527
|
|
Amortisation of intangible assets
|
|
2,397
|
|
797
|
|
Amortisation of government grants
|
|
(115)
|
|
(124)
|
|
Employee share-based payment charge
|
|
709
|
|
205
|
|
Exceptional items
|
|
-
|
|
(1,146)
|
|
Foreign exchange gains
|
|
-
|
|
32
|
|
|
|
|
|
|
|
Operating profit before changes in working capital
|
|
80,580
|
|
45,767
|
|
|
|
|
|
|
|
(Increase) in inventory
|
|
(72,805)
|
|
(11,736)
|
|
(Increase)/ Decrease in trade and other receivables
|
|
(49,820)
|
|
9,103
|
|
Increase in trade and other payables
|
|
139,405
|
|
3,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operating activities
|
|
97,360
|
|
46,695
|
|
Interest paid
|
|
(9,662)
|
|
(1,792)
|
|
Income tax paid
|
|
(13,083)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cashflow from operating activities
|
|
74,615
|
|
44,903
|
|
|
|
|
|
|
Origin Enterprises plc
Group cash flow statement (continued)
for the year ended 31 July 2008
|
|
2008
|
|
2007
|
|
|
€’000
|
|
€’000
|
|
Cash flows from investing activities
|
|
|
|
|
Proceeds from sale of property, plant and equipment
|
411
|
|
205
|
|
Purchase of property, plant and equipment
|
|
|
|
|
- Ongoing
|
(6,010)
|
|
(3,767)
|
|
- New investments
|
(2,814)
|
|
(2,336)
|
|
Additions to investment properties
|
(12,945)
|
|
-
|
|
Insurance proceeds, net
|
-
|
|
6,118
|
|
(Acquisition)/disposal of subsidiary undertaking,
|
|
|
|
|
net of cash acquired
|
(75,798)
|
|
1,045
|
|
Investment in associates
|
(15,632)
|
|
-
|
|
Dividends received
|
158
|
|
574
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flow from investing activities
|
(112,630)
|
|
1,839
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
Proceeds from issue of share capital
|
4
|
|
104,192
|
|
Share issue expenses
|
-
|
|
(1,691)
|
|
Net cash movement in balance with IAWS
|
-
|
|
(255,545)
|
|
Drawdown of loan capital
|
104,195
|
|
83,000
|
|
Payment of finance lease obligations
|
(399)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flow from financing activities
|
103,800
|
|
(70,044)
|
|
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents
|
65,785
|
|
(23,302)
|
|
|
|
|
|
|
Translation adjustment
|
(2,076)
|
|
177
|
|
|
|
|
|
|
Cash and cash equivalents at start of year
|
11,298
|
|
34,423
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of year
|
75,007
|
|
11,298
|
|
|
|
|
|
Origin Enterprises plc
Notes to the preliminary results statement
for the year ended 31 July 2008
1 Basis of preparation
The financial information included on pages 9to 23of this preliminary results statement has been extracted from the Group financial statements for the year ended 31 July 2008 on which the auditor has issued an unqualified audit opinion.
The 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 which were prepared in accordance with International Financial Reporting Standards as adopted by the EU.
The consolidated financial information is presented in euro, rounded to the nearest thousand, which is the functional currency of the parent and majority of the Group’s operations.
2 Segment information
(i) Segment revenue and result
|
|
|
Food
|
|
Agri-Nutrition
|
|
Total
|
||||||
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
|
|
€’000
|
|
€’000
|
|
€’000
|
|
€’000
|
|
€’000
|
|
€’000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenue
|
338,980
|
|
241,680
|
|
1,165,262
|
|
647,683
|
|
1,504,242
|
|
889,363
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit before exceptional items and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortisation of intangible assets
|
15,914
|
|
10,474
|
|
55,012
|
|
27,653
|
|
70,926
|
|
38,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortisation of intangible assets
|
(1,367)
|
|
(501)
|
|
(1,030)
|
|
(296)
|
|
(2,397)
|
|
(797)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exceptional items
|
-
|
|
(1,314)
|
|
-
|
|
2,460
|
|
-
|
|
1,146
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
14,547
|
|
8,659
|
|
53,982
|
|
29,817
|
|
68,529
|
|
38,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of profit of associates
|
201
|
|
1,886
|
|
2,051
|
|
1,788
|
|
2,252
|
|
3,674
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before financing costs
|
14,748
|
|
10,545
|
|
56,033
|
|
31,605
|
|
70,781
|
|
42,150
|
|
|
|
|||||||||||
Origin Enterprises plc
Notes to the preliminary results statement
for the year ended 31 July 2008
2 Segment information (continued)
(ii) Segment assets
|
|
Food
|
|
Agri-Nutrition
|
|
Total Group
|
||||||
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
|
€’000
|
|
€’000
|
|
€’000
|
|
€’000
|
|
€’000
|
|
€’000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets excluding investment in associates and investment properties
|
142,311
|
|
69,313
|
|
443,980
|
|
169,525
|
|
586,291
|
|
238,838
|
|
Investment in associates
|
-
|
|
10,247
|
|
32,844
|
|
16,274
|
|
32,844
|
|
26,521
|
|
Investment properties
|
14,000
|
|
-
|
|
178,418
|
|
165,473
|
|
192,418
|
|
165,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets
|
156,311
|
|
79,560
|
|
655,242
|
|
351,272
|
|
811,553
|
|
430,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to total assets as reported in Group balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
75,232
|
|
31,989
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
1,958
|
|
-
|
|
Deferred tax assets
|
|
|
|
|
|
|
|
|
4,651
|
|
1,633
|
|
Total assets as reported in Group balance sheet
|
|
|
|
|
|
|
|
|
893,394
|
|
464,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(iii) Segment liabilities
|
|
Food
|
|
Agri-Nutrition
|
|
Total Group
|
||||||
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
|
€’000
|
|
€’000
|
|
€’000
|
|
€’000
|
|
€’000
|
|
€’000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment liabilities
|
41,538
|
|
23,896
|
|
325,010
|
|
110,721
|
|
366,548
|
|
134,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to total liabilities as reported in Group balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing loans and liabilities
|
|
|
|
|
|
|
|
|
250,357
|
|
103,691
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
3,620
|
|
2,216
|
|
Current and deferred tax liabilities
|
|
|
|
|
|
|
|
|
49,492
|
|
40,296
|
|
Total liabilities as reported in Group balance sheet
|
|
|
|
|
|
|
|
|
670,017
|
|
280,820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origin Enterprises plc
Notes to the preliminary results statement
for the year ended 31 July 2008
3 Earnings per share
Basic earnings per share
The calculation of basic earnings per share for the year ended 31 July 2008 was based on the profit for the financial year attributable to ordinary shareholders of €44,701,000 (2007: €32,686,000) and the weighted average number of ordinary shares in issue.
|
|
2008
|
|
2007
|
|
|
€’000
|
|
€’000
|
|
|
|
|
|
|
Profit for financial year attributable to equity shareholders
|
44,701
|
|
32,686
|
|
|
|
|
|
|
|
|
|
|
|
|
‘000
|
|
’000
|
|
|
|
|
|
|
Weighted average number of ordinary shares for the year
|
133,016
|
|
133,016 *
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
33.61 cent
|
|
24.57 cent
|
|
|
|
|
|
* The number of ordinary shares immediately following the IPO of Origin in June 2007 has been used as the weighted average number for 2007.
Diluted earnings per share
The calculation of diluted earnings per share at 31 July 2008 was based on profit for the financial year attributable to ordinary shareholders of €44,701,000 (2007: €32,686,000) and the weighted average number of ordinary shares outstanding of 137,652,435 (2007 :136,983,607) calculated as follows:
|
|
2008
|
|
2007
|
|
|
€’000
|
|
€’000
|
|
|
|
|
|
|
Profit for financial year attributable to equity shareholders
|
44,701
|
|
32,686
|
|
|
|
|
|
|
|
|
|
|
|
|
‘000
|
|
‘000
|
|
Weighted average number of ordinary shares used in
|
|
|
|
|
basic calculation
|
133,016
|
|
133,016
|
|
Effect of convertible shares with a dilutive effect
|
4,636
|
|
3,968
|
|
|
|
|
|
|
Weighted average number of ordinary shares (diluted) for the year
|
137,652
|
|
136,984
|
|
|
|
|
|
|
Diluted earnings per share
|
32.47 cent
|
|
23.86 cent
|
|
|
|
|
Origin Enterprises plc
Notes to the preliminary results statement
for the year ended 31 July 2008
3 Earnings per share (continued)
Adjusted basic earnings per share
|
|
|
|
|
2008
‘000
|
|
2007
‘000
|
||
|
Weighted average number of ordinary shares (diluted)
|
|
133,016
|
|
133,016 *
|
||||
|
|
2008
€’000
|
|
2008
Per share
€ cent
|
|
2007
€’000
|
|
2007
Per share
€ cent
|
|
|
Adjusted
|
||||||||
|
Profit for the financial year
|
|
44,701
|
|
33.61
|
|
32,686
|
|
24.57
|
|
Adjustments:
|
||||||||
|
Amortisation of intangible assets
|
|
2,397
|
|
1.80
|
|
797
|
|
0.60
|
|
Amortisation of related deferred tax
|
|
(227)
|
|
(0.18)
|
|
-
|
|
-
|
|
Exceptional items, net of tax
|
|
-
|
|
-
|
|
(696)
|
|
(0.52)
|
|
Adjusted basic earnings per share
|
|
46,871
|
|
35.23
|
|
32,787
|
|
24.65
|
\* The number of ordinary shares immediately following the IPO of Origin in June 2007 has been used as the weighted average number for 2007.
Adjusted diluted earnings per share
|
|
|
|
|
2008
‘000
|
|
|
|
2007
‘000
|
|
Weighted average number of ordinary shares (diluted)
|
|
|
|
137,652
|
|
|
|
136,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2008
€’000
|
|
2008
Per share
€ cent
|
|
2007
€’000
|
|
2007
Per share
€ cent
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
Profit for the financial year
|
|
44,701
|
|
32.47
|
|
32,686
|
|
23.86
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortisation of intangible assets
|
|
2,397
|
|
1.74
|
|
797
|
|
0.58
|
|
Amortisation of related deferred tax
|
|
(227)
|
|
(0.16)
|
|
-
|
|
-
|
|
Exceptional items, net of tax
|
|
-
|
|
-
|
|
(696)
|
|
(0.51)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per share
|
|
46,871
|
|
34.05
|
|
32,787
|
|
23.93
|
|
|
|
|
|
|
|
|
|
|
Origin Enterprises plc
Notes to the preliminary results statement
for the year ended 31 July 2008
4 Analysis of net debt
|
|
31 July 2007
€’000
|
|
Cashflow
€’000
|
|
Arising on
acquisition
€’000
|
|
Other
non cash
movements
€’000
|
|
Translation
adjustments
€’000
|
|
31 July
2008
€’000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
31,989
|
|
45,319
|
|
-
|
|
-
|
|
(2,076)
|
|
75,232
|
|
Overdrafts
|
(20,691)
|
|
20,466
|
|
-
|
|
-
|
|
-
|
|
(225)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
11,298
|
|
65,785
|
|
-
|
|
-
|
|
(2,076)
|
|
75,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance lease obligations
|
-
|
|
399
|
|
(2,144)
|
|
(191)
|
|
105
|
|
(1,831)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
(83,000)
|
|
(104,195)
|
|
(63,861)
|
|
-
|
|
2,755
|
|
(248,301)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt
|
(71,702)
|
|
(38,011)
|
|
(66,005)
|
|
(191)
|
|
784
|
|
(175,125)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origin Enterprises plc
Notes to the preliminary results statement
for the year ended 31 July 2008
5 Statement of changes in shareholders’ equity
|
|
Share
capital
€’000
|
Share
Premium
€’000
|
Cashflow
Hedge
reserve
€’000
|
Revalation
reserve
€’000
|
Share based
payment
reserve
€’000
|
Reorganisation
reserve
€’000
|
Foreign currency
translation
reserve
€’000
|
Retained
earnings
€’000
|
Minority Interest
€’000
|
Total
€’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 associate
|
-
|
-
|
-
|
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 schemes
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,377
|
-
|
2,377
|
|
Net actuarial gain on associate defined benefit pension scheme
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,778
|
-
|
1,778
|
|
Gains related to cash flow hedges and other
|
-
|
-
|
553
|
-
|
-
|
-
|
-
|
-
|
-
|
553
|
|
Deferred tax relating to cash flow hedges and other
|
-
|
-
|
(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 preliminary results statement
for the year ended 31 July 2008
6 Acquisition of subsidiary undertakings
During the year the Group completed two acquisitions:
1. On 30 August 2007, the Group acquired the remaining 50% interest in the Odlum Group not previously owned.
2. On 1 February 2008, the Group completed the acquisition of 100% of Masstock Group Holdings Limited (“Masstock”). Masstock, with operations in the United Kingdom and Poland, is the leading provider of specialist agronomy services directly to arable and grassland farm enterprises.
Details of the net assets acquired and goodwill arising from the business combinations are as follows:
|
|
Acquiree’s carrying amount
€’000
|
Fair value adjustments
€’000
|
Fair value
€’000
|
Split of fair value
Masstock Odlums
€’000 €’000
|
|
|
Net assets acquired:
|
|
|
|
|
|
|
Property, plant and equipment
|
40,305
|
(954)
|
39,351
|
14,095
|
25,256
|
|
Investments properties
|
-
|
14,000
|
14,000
|
-
|
14,000
|
|
Intangible assets
|
5,176
|
38,442
|
43,618
|
14,718
|
28,900
|
|
Inventory
|
27,333
|
(500)
|
26,833
|
18,456
|
8,377
|
|
Trade and other receivables
|
74,102
|
(586)
|
73,516
|
52,992
|
20,524
|
|
Trade and other payables
|
(61,633)
|
(895)
|
(62,528)
|
(53,926)
|
(8,602)
|
|
Debt assumed
|
(63,861)
|
-
|
(63,861)
|
(36,776)
|
(27,085)
|
|
Finance leases
|
(2,144)
|
-
|
(2,144)
|
(2,144)
|
-
|
|
Deferred tax
|
103
|
(10,983)
|
(10,880)
|
(3,276)
|
(7,604)
|
|
Employee benefit liability
|
(4,218)
|
-
|
(4,218)
|
(1,794)
|
(2,424)
|
|
Corporation tax
|
125
|
(191)
|
(66)
|
90
|
(156)
|
|
Government grants
|
(248)
|
-
|
(248)
|
-
|
(248)
|
|
|
————
|
————
|
————
|
————
|
————
|
|
|
|
|
|
|
|
|
Net assets acquired
|
|
|
53,373
|
2,435
|
50,938
|
|
Goodwill arising on acquisition
|
|
|
63,823
|
53,804
|
10,019
|
|
|
|
|
————
|
————
|
————
|
|
|
|
|
|
|
|
|
|
|
|
117,196
|
56,239
|
60,957
|
|
|
|
|
═════
|
═════
|
═════
|
|
Satisfied by:
|
|
|
|
|
|
|
Cash consideration
|
|
|
77,387
|
42,037
|
35,350
|
|
Cash acquired
|
|
|
(1,589)
|
1,215
|
(2,804)
|
|
Fair value of previously held 50% interest in Odlum Group
|
28,411
|
-
|
28,411
|
||
|
Deferred consideration
|
|
|
12,987
|
12,987
|
-
|
|
|
|
|
————
|
————
|
————
|
|
|
|
|
117,196
|
56,239
|
60,957
|
|
|
|
|
═════
|
═════
|
═════
|
Origin Enterprises plc
Notes to the preliminary results statement
for the year ended 31 July 2008
6 Acquisitions of subsidiary undertakings(continued)
Post acquisition revenues and operating profit relating to these acquisitions amounted to
€383,371,000 and €16,901,000 respectively. Masstock contributed revenue of €300,613,000 and operating profit of €12,104,000. Odlums contributed revenue of €82,758,000 and operating profit of €4,797,000.
If the acquisitions had occurred on 1 August 2007, management estimates that consolidated revenue would have been €1,721,111,000 and consolidated operating profit for the period would have been €67,824,000. In determining these amounts management has assumed that the fair value adjustments that arose on the dates of acquisition would have been the same if the acquisition occurred on 1 August 2007.
The goodwill recognised on the acquisitions is attributable to the skills and technical talent of the acquired business’s work force, and the synergies expected to be achieved from integrating the company into the Group’s existing business.
This information is provided by RNS
The company news service from the London Stock Exchange
Related Shares:
Origin