TIDMNUT
RNS Number : 0289Z
NeutraHealth Plc
15 September 2009
?
15 September 2009
NEUTRAHEALTH PLC ("the Company")
ANNOUNCEMENT OF 2009 INTERIM RESULTS
NeutraHealth plc, one of the leading UK vitamins & supplements companies, today
announces its interim results for the six months to 30th June 2009.
The Company has increased revenue by 43% in the first half of the year, and
delivered an EBITDA growth of 33%.
+-------------------------------+-------+----------+------+----------+-----+-----------+
| Financial Highlights | H1 2009 | H1 2008 | FY 2008 |
| | | | |
+-------------------------------+------------------+-----------------+-----------------+
| Revenue | | GBP16.6m | | GBP11.6m | | GBP28.9m |
+-------------------------------+-------+----------+------+----------+-----+-----------+
| EBITDA | | GBP1.1m | | GBP0.9m | | GBP1.9m |
+-------------------------------+-------+----------+------+----------+-----+-----------+
| Adjusted | | GBP0.7m | | GBP0.5m | | GBP1.0m |
| PBT | | | | | | |
+-------------------------------+-------+----------+------+----------+-----+-----------+
| Adjusted | | 0.3p | | 0.2p | | 0.4p |
| EPS | | | | | | |
+-------------------------------+-------+----------+------+----------+-----+-----------+
| Net | | GBP5.1m | | GBP3.4m | | GBP4.4m |
| Debt | | | | | | |
+-------------------------------+-------+----------+------+----------+-----+-----------+
| Cashflow from operations before | GBP1.1m | | GBP0.7m | | GBP1.1m |
| working capital changes | | | | | |
+-------------------------------+-------+----------+------+----------+-----+-----------+
* Revenue increased by 43% to GBP16.6m (2008: GBP11.6m)
* Like for like revenue increased by 2%
* EBITDA increased by 33% to GBP1.1m (2008 excluding one off items:GBP0.9m)
* Adjusted* PBT increased by 24% to GBP0.7m (2008:GBP0.5m)
* Adjusted* EPS increased by 28% to 0.3p (2008:0.2p)
*Adjusted figure excludes the non-cash effect of acquired intangible asset
amortisation, share option related charges (and post tax impact of one off items
for EPS).
* Net debt increased by GBP0.9m due to final deferred consideration payment of
GBP0.7m and seasonal increase in inventory
Ray Myers, NeutraHealth Chief Executive, commented:
"NeutraHealth has achieved solid organic growth in terms of both revenue and
profits and we are very pleased with these results despite a difficult twelve
months for the wider UK economy.
Our emphasis is now on further organic growth across the Group and on improving
our core business revenue and profitability through new product development and
cost price reduction. We expect to continue steady progress with this over the
coming months."
Further information for investors is available on the Company's website at
www.neutrahealthplc.com/
+-------------------------------------+-------------------------------------+
| NeutraHealth plc | |
+-------------------------------------+-------------------------------------+
| Ray Myers, Chief Executive | 07768 940 630 |
+-------------------------------------+-------------------------------------+
| Robin Hilton, Finance Director | 07738 018 411 |
+-------------------------------------+-------------------------------------+
| Cenkos (Nominated Adviser and Broker) |
+---------------------------------------------------------------------------+
| Stephen Keys | 020 7397 8900 |
+-------------------------------------+-------------------------------------+
| Pelham Public Relations | |
+-------------------------------------+-------------------------------------+
| Kate Catchpole | 020 7337 1512 |
+-------------------------------------+-------------------------------------+
BOARD STATEMENT
Overview
NeutraHealth has maintained forward momentum in the first half of 2009 following
the challenging market conditions of 2008. We are experiencing enhanced demand
for our products and are building ever stronger relationships with key
customers, resulting in increased business.
We are well progressed in our project to source materials more cost effectively,
in response to volatile and rising input prices in 2008, and we are having
success with our product innovation which helps maintain product margins.
Results
Revenue growth of 43% to GBP16.6m includes the full year effect of the
acquisition of Perrigo UK Ltd in June 2008 which saw us become the market
leading supplier of private label vitamins and supplements in the UK. More
significant is the 2% like for like revenue growth achieved. Our seven largest
customers, who generate two thirds of group revenue, have grown like for like by
14.8%. The most pleasing aspect of our results is the increase in EBITDA to
GBP1.1m or 6.9% of revenue. This helped to deliver the 28% adjusted EPS increase
to 0.3p. We expect success in our material sourcing project will help deliver
increased profitability and revenue growth opportunities.
Our net debt increased from GBP4.2m at the end of 2008 to a peak of over GBP6m
in March, falling to GBP5.1m in June 2009, and is expected to continue to
decline. There have been two significant factors behind the increase. Firstly
the final deferred consideration payment of GBP0.7m for Brunel Healthcare Ltd
(acquired in January 2007) was made in March 2009. Secondly, inventories have
increased by GBP1.4m. This increase has been a result of low inventory during
the consolidation of operations in 2008, and significant holdings at the end of
June 2009 to fulfil new business won, to satisfy orders from multiple
retailers in advance of the autumn increase in demand, and to cover lower
production during the holiday months. Nonetheless, inventory value is only 4%
higher than June 2008. We continue to investigate ways of maintaining an
appropriate balance between working capital levels and operational efficiency.
Review of businesses
Brunel has maintained its position of market leader in the private label
multiple retail sector and we continue to increase market share. The four
fundamentals for private label success are cost, quality, service and
innovation. Our quality and service are good. We are working to reduce cost
through our sourcing project as we pursue factory gate prices direct from
world-leading suppliers. Our progress in innovation has resulted in a number of
significant new lines being listed by customers. We have recruited a highly
respected and experienced business development director for Brunel, which we
expect will lead to new sales and product opportunities in this sector.
BioCare and our other businesses focused across the practitioner, independent
and direct to consumer channels are starting to benefit from the data made
available by recently installed systems. Although the smaller branded businesses
are not performing as well as management expected, we are investigating the
options to address this and have restructured and strengthened the team in our
Birmingham based operations. Market research has confirmed the strength of the
BioCare brand and has revealed areas for growth that we are now pursuing.
Outlook
For the time being our focus is on organic growth across the group, in the UK
and abroad as those opportunities arise. We are now fully focussed on our core
business, free from the distractions of operational consolidation, system
installations, and the potential offer for the Group.
We expect the vitamin and supplement industry to consolidate further and our
strategy of being a consolidator in the market is unchanged. We expect that
improved performance and greater stability in the financial markets will give us
opportunities to resume acquisition activity.
Consolidated Income Statement
Six months ended 30 June 2009
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| | Unaudited | Unaudited | Audited |
| | 6 months | 6 months | 12 months |
| | 30 June | 30 June | 31 December |
| | 2009 | 2008 | 2008 |
| | | | |
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------+------------------------+----------------------+---------------------+
| | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| REVENUE | | 16,552 | | 11,558 | | 28,864 |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Cost of sales | | (10,070) | | (7,303) | | (18,047) |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Gross profit | | 6,482 | | 4,255 | | 10,817 |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Other operating income | | 588 | | - | | 641 |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Administrative expenses | | (6,333) | | (3,630) | | (10,251) |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| PROFIT FROM OPERATIONS BEFORE ONE OFF | | 737 | | 625 | | 1,207 |
| ITEMS | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Other expenses: | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Employee termination and | | - | | (145) | | (825) |
| reorganisation costs | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Impairment of property, plant and | | - | | - | | (675) |
| equipment | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Impairment of available-for-sale | | - | | - | | (262) |
| investments | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Recognition of onerous lease | | - | | - | | (615) |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Profit on disposal of subsidiary | | - | | 3,380 | | 3,380 |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| PROFIT FROM OPERATIONS | | 737 | | 3,860 | | 2,210 |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Investment income | | 3 | | 34 | | 72 |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Finance costs | | (159) | | (226) | | (489) |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| PROFIT BEFORE TAX | | 581 | | 3,668 | | 1,793 |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Income tax (expense) / credit | | (154) | | (75) | | 318 |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| PROFIT FOR THE PERIOD ATTRIBUTABLE | | | | | | |
| TO | | 427 | | 3,593 | | 2,111 |
| EQUITY HOLDERS OF THE | | | | | | |
| COMPANY | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Earnings per share | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Basic | | 0.2p | | 2.0p | | 1.2p |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| Diluted | | 0.2p | | 2.0p | | 1.2p |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
| | | | | | | |
+--------------------------------------------+----------+-------------+--------+-------------+------+--------------+
Consolidated Statement of Equity
Six months ended 30 June 2009
+----------------------------------------------+----------------+----------------+----------------+--------------+
| | Share | Other | Retained | Total |
| | capital | reserves | earnings | |
| | GBP000 | GBP000 | GBP000 | GBP000 |
+----------------------------------------------+----------------+----------------+----------------+--------------+
| | | | | |
+----------------------------------------------+----------------+----------------+----------------+--------------+
| At 1 January 2009 | 17,599 | 2,161 | 4,015 | 23,775 |
+----------------------------------------------+----------------+----------------+----------------+--------------+
| | | | | |
+----------------------------------------------+----------------+----------------+----------------+--------------+
| Profit for the period | - | - | 427 | 427 |
+----------------------------------------------+----------------+----------------+----------------+--------------+
| Recognition of share based payments | - | 5 | - | 5 |
+----------------------------------------------+----------------+----------------+----------------+--------------+
| Lapse of share options | - | (35) | 35 | - |
+----------------------------------------------+----------------+----------------+----------------+--------------+
| | | | | |
+----------------------------------------------+----------------+----------------+----------------+--------------+
| At 30 June 2009 | 17,599 | 2,131 | 4,477 | 24,207 |
+----------------------------------------------+----------------+----------------+----------------+--------------+
| | | | | |
+----------------------------------------------+----------------+----------------+----------------+--------------+
Consolidated Balance Sheet
At 30 June 2009
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | Unaudited | Unaudited | Audited |
| | 30 June | 30 June | 31 December |
| | 2009 | 2008 | 2008 |
| | GBP000 | GBP000 | GBP000 |
+------------------------------------------+-------------------------+---------------------+---------------------+
| ASSETS | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Non-current assets | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Goodwill | | 18,414 | | 18,657 | | 18,414 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Other intangible assets | | 1,869 | | 1,780 | | 1,935 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Property, plant and equipment | | 4,152 | | 3,922 | | 4,245 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Available-for-sale investments | | - | | 262 | | - |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Deferred tax assets | | 6 | | - | | 129 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | 24,441 | | 24,621 | | 24,723 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Current assets | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Inventories | | 7,082 | | 6,798 | | 5,691 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Trade and other receivables | | 6,442 | | 7,433 | | 6,929 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Current tax assets | | 25 | | - | | 39 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Cash and cash equivalents | | 1,327 | | 1,955 | | 1,283 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | 14,876 | | 16,186 | | 13,942 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Total assets | | 39,317 | | 40,807 | | 38,665 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| EQUITY AND LIABILITIES | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Capital and reserves | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Share capital | | 17,599 | | 17,599 | | 17,599 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Other reserves | | 2,131 | | 2,262 | | 2,161 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Retained earnings | | 4,477 | | 5,363 | | 4,015 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Total equity attributable to equity | | 24,207 | | 25,224 | | 23,775 |
| holders of the parent | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Non-current liabilities | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Deferred tax liabilities | | 853 | | 797 | | 899 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Provisions | | 438 | | - | | 640 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Bank loan | | 5,450 | | 2,929 | | 4,544 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Obligations under finance leases | | 25 | | 86 | | 57 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | 6,766 | | 3,812 | | 6,140 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Current liabilities | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Trade and other payables | | 6,827 | | 8,923 | | 7,292 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Current tax liabilities | | 64 | | 288 | | - |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Provisions | | 425 | | - | | 425 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Bank loan | | 967 | | 2,472 | | 972 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Obligations under finance leases | | 61 | | 88 | | 61 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | 8,344 | | 11,771 | | 8,750 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Total liabilities | | 15,110 | | 15,583 | | 14,890 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| Total equity and liabilities | | 39,317 | | 40,807 | | 38,665 |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
| | | | | | | |
+------------------------------------------+------------+------------+--------+------------+------+--------------+
Consolidated Cash Flow Statement
Six months ended 30 June 2009
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | Unaudited | | Unaudited | | Audited |
| | 6 months | | 6 months | | 12 months |
| | 2009 | | 2008 | | 2008 |
| | GBP000 | | GBP000 | | GBP000 |
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| CASH FLOWS FROM OPERATING ACTIVITIES | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Profit from operations for the period | 737 | | 3,860 | | 2,210 |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Adjustments for: | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Depreciation and amortisation | 395 | | 208 | | 1,353 |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Share-based expense payments | 5 | | 23 | | 56 |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Profit on disposal of subsidiary | - | | (3,380) | | (3,380) |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Impairment of available-for-sale investments | - | | - | | 262 |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Recognition of onerous lease | - | | - | | 615 |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Cash generated by operations before changes in working | | | | | |
| capital | 1,137 | | 711 | | 1,116 |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| (Increase) / Decrease in inventories | (1,391) | | (389) | | 719 |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Decrease / (Increase) in receivables | 487 | | (1,345) | | (874) |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| (Decrease) / Increase in payables | (21) | | 1,460 | | (130) |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Cash generated from operations | 212 | | 437 | | 831 |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Income taxes paid | - | | (111) | | (190) |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Interest paid | (71) | | (242) | | (437) |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Net cash generated by operating activities | 141 | | 84 | | 204 |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| INVESTING ACTIVITIES | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Interest received | 3 | | 34 | | 72 |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Purchases of property, plant & equipment | (234) | | (252) | | (656) |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Payments for intangible assets | - | | (425) | | (468) |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Acquisition of subsidiaries, net of cash acquired | (720) | | (7,464) | | (7,860) |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Disposal of subsidiary, net of cash disposed | - | | 5,692 | | 5,661 |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Net cash used in investing activities | (951) | | (2,415) | | (3,251) |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| FINANCING ACTIVITIES | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Repayment of borrowings | (500) | | (500) | | (1,000) |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Repayment of obligations under finance leases | (32) | | (103) | | (159) |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| New finance leases | - | | - | | - |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Proceeds on issue of shares | - | | - | | - |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Cost of issue of shares | - | | - | | - |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| New bank loans raised | 1,400 | | 1,500 | | 2,100 |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Cost of raising bank loans | (14) | | - | | - |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Net cash from financing activities | 854 | | 897 | | 941 |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Net increase / (decrease) in cash and cash equivalents | | | | | |
| | 44 | | (1,434) | | (2,106) |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Cash and cash equivalents at the beginning of the period | | | | | |
| | 1,283 | | 3,389 | | 3,389 |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| Cash and cash equivalents at the end of the period | 1,327 | | 1,955 | | 1,283 |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
| | | | | | |
+-----------------------------------------------------------+----------------+--+-----------------+--+-----------------+
Notes to the Interim Report
For the six months ended 30 June 2009
1.General Information
NeutraHealth plc is a company incorporated in England & Wales under the
provisions of the Companies Act 1985. The address of the registered office is
180 Lifford Lane, Kings Norton, Birmingham, B30 3NU.
Copies of the interim statement maybe obtained from the above address or the
Investors section of the Company's website.
2. Basis of preparation
These interim consolidated financial statements are for the six months ended 30
June 2009.
The interim financial report, which is unaudited, has been prepared in
accordance with the recognition and measurement criteria of International
Financial Reporting Standards and IFRIC interpretations adopted for use in the
European Union ("IFRS"). The accounting policies and methods of computation used
are consistent with those used in the Group annual report for the year ended 31
December 2008 and are expected to be used in the Group Annual Report for the
year ended 31 December 2009. The six month period figures have not been audited.
The financial information for the year ended 31 December 2008 does not
constitute statutory information. A copy of the statutory accounts for that year
has been delivered to the Registrar of Companies. The auditors' report on those
accounts was not qualified and did not contain statements under section 237(2)
or 237(3) of the Companies Act 1985.
The interim consolidated financial statements are presented in pounds sterling
because that is the currency of the primary economic environment in which the
group operates. All values are rounded to the nearest thousand pounds (GBP'000)
except when otherwise stated.
The reconciliation of Profit from Operations before one off items to EBITDA is
as follows:
+--------------------------------------------------------------+----------------+---------------+-----------------+
| | Unaudited | Unaudited | Audited |
| | 6 months | 6 months | 12 months |
| | 2009 | 2008 | 2008 |
| | GBP000 | GBP000 | GBP000 |
+--------------------------------------------------------------+----------------+---------------+-----------------+
| | | | |
+--------------------------------------------------------------+----------------+---------------+-----------------+
| Profit from Operations before one off items | 737 | 625 | 1,207 |
+--------------------------------------------------------------+----------------+---------------+-----------------+
| Depreciation and amortisation | 395 | 208 | 678 |
+--------------------------------------------------------------+----------------+---------------+-----------------+
| Charge for share based payments | 5 | 23 | 56 |
+--------------------------------------------------------------+----------------+---------------+-----------------+
| | | | |
+--------------------------------------------------------------+----------------+---------------+-----------------+
| EBITDA | 1,137 | 856 | 1,941 |
+--------------------------------------------------------------+----------------+---------------+-----------------+
| | | | |
+--------------------------------------------------------------+----------------+---------------+-----------------+
3. Significant Accounting Policies
Except as stated below, the accounting policies and presentation applied in this
condensed set of financial statements are consistent with those described in the
Annual Report for the year ended 31 December 2008.
Presentation of Cash Flow Statement
A revised presentation of the Consolidated Cash Flow statement has been adopted
to present cash flow information with more clarity. Values have remained
consistent with previously reported information.
4. Revenue
The whole of revenue is attributable to one principal activity of the Group,
being the sale and distribution of nutraceutical products. For management
purposes, all results are reported as part of this single activity.
All revenue originates in the United Kingdom. A geographical analysis of revenue
by destination is as follows:
+------------------------------------------------------------------+---------------+---------------+----------------+
| | Unaudited | Unaudited | Audited |
| | 6 months | 6 months | 12 months |
| | 2009 | 2008 | 2008 |
| | | | |
| | GBP000 | GBP000 | GBP000 |
+------------------------------------------------------------------+---------------+---------------+----------------+
| | | | |
+------------------------------------------------------------------+---------------+---------------+----------------+
| United Kingdom | 15,573 | 10,863 | 26,906 |
+------------------------------------------------------------------+---------------+---------------+----------------+
| Europe (excluding UK) | 743 | 536 | 1,680 |
+------------------------------------------------------------------+---------------+---------------+----------------+
| Rest of world | 236 | 159 | 278 |
+------------------------------------------------------------------+---------------+---------------+----------------+
| | | | |
+------------------------------------------------------------------+---------------+---------------+----------------+
| | 16,552 | 11,558 | 28,864 |
+------------------------------------------------------------------+---------------+---------------+----------------+
| | | | |
+------------------------------------------------------------------+---------------+---------------+----------------+
5. Earnings per share
There is no dilutive effect from the share options in issue.
+------------------------------------------------------------------+---------------+---------------+----------------+
| | Unaudited | Unaudited | Audited |
| | 6 months | 6 months | 12 months |
| | 2009 | 2008 | 2008 |
| | | | |
| | GBP000 | GBP000 | GBP000 |
+------------------------------------------------------------------+---------------+---------------+----------------+
| Earnings | | | |
+------------------------------------------------------------------+---------------+---------------+----------------+
| Earnings for the purposes of basic and diluted earning per share | | | |
| (profit for the period attributable to equity holders of the | | | |
| parent) | 427 | 3,593 | 2,111 |
+------------------------------------------------------------------+---------------+---------------+----------------+
| Add back: | | | |
+------------------------------------------------------------------+---------------+---------------+----------------+
| Amortisation of intangible assets recognised on acquisition, net | | | |
| of deferred tax credit | 67 | 51 | 101 |
+------------------------------------------------------------------+---------------+---------------+----------------+
| Charge for share options in issue | 5 | 23 | 56 |
+------------------------------------------------------------------+---------------+---------------+----------------+
| One off items, net of corporation tax impact | - | 104 | 1,974 |
+------------------------------------------------------------------+---------------+---------------+----------------+
| Less profit on disposal of subsidiary | - | (3,380) | (3,380) |
+------------------------------------------------------------------+---------------+---------------+----------------+
| | | | |
+------------------------------------------------------------------+---------------+---------------+----------------+
| Earnings for the purposes of Adjusted EPS | 499 | 391 | 862 |
+------------------------------------------------------------------+---------------+---------------+----------------+
| | | | |
+------------------------------------------------------------------+---------------+---------------+----------------+
| | | | |
+------------------------------------------------------------------+---------------+---------------+----------------+
| Number | '000 | '000 | '000 |
+------------------------------------------------------------------+---------------+---------------+----------------+
| Number of shares | | | |
+------------------------------------------------------------------+---------------+---------------+----------------+
| Weighted average number of ordinary shares for the purposes of | | | |
| basic and diluted earnings per share | | | |
| | 175,985 | 175,985 | 175,985 |
+------------------------------------------------------------------+---------------+---------------+----------------+
| | | | |
+------------------------------------------------------------------+---------------+---------------+----------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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