TIDMPIL
RNS Number : 2631A
Produce Investments PLC
23 March 2017
23 March 2017
PRODUCE INVESTMENTS PLC
("Produce," "Company" or the "Group")
INTERIM RESULTS
New strategy in place and positive outlook for the second
half
Produce Investments plc, (AIM:PIL) ("Produce," "Company" or the
"Group"), a leading operator in the fresh potato and daffodil
sectors, announces its interim results for the 26 weeks to 24
December 2016.
Key Operational Points:
- Board significantly strengthened with appointment of new
Chairman, Group Finance Director and Non-Executive directors
- New "Acquire, Develop, Manage the Portfolio" strategy for
future growth formulated and ready for implementation
- Increased business and improved long term visibility on
volumes and margins secured with key customers from 2017/2018
- New ERP (Enterprise Resource Planning) system installed
Key Financial Points
- Revenue GBP79.3m, up 1.0% (2015: GBP78.5m)
- Operating profit GBP0.2m (2015: GBP3.4m) as result mainly of
lag in raw material price recovery, and costs associated with the
new ERP system
- Exceptional non-cash write-offs of GBP1.0m following review of interim accounts
- Interim dividend increased by 2% to 2.44p (2015: 2.39p) per share
- Net debt GBP29.1m (2015: GBP22.8m)
Neil Davidson, Chairman, commented:
"First half trading profits have been significantly depressed by
delays in the recovery of unseasonably high ex-farm potato prices,
and by costs associated with the implementation of our new ERP
system.
"In addition, in order to ensure that all balances transferred
into the new ERP system were correct, the Directors commissioned a
full review of the interim accounts. As a result of this work a
number of non-cash write-downs totalling GBP1.0m have been taken in
the first half.
"Current trading is well ahead of last year as we begin to
recover raw material cost increases through our pricing
arrangements with key customers. The year-end trading result will
depend on that rate of price recovery, the outcome of the daffodil
season, now in full swing, and the Jersey Royals new potato season
which is only just beginning. While we believe that underlying
trading profit for the year is likely to be broadly in line with
the Board's original expectations, full year profit before tax will
be lower than these expectations as a result of the non-cash
write-offs.
"We now know the outcome of a number of retailer supplier
reviews and have secured additional business going into next year,
which also gives us good visibility on likely volumes for the next
three years. This, in turn, will improve efficiencies at our two
fresh potato sites at Duns and Floods Ferry, following our three
into two factory rationalisation last year. We will also derive
significant efficiency benefits from ERP implementation.
"We are pleased to announce a 2% increase in the interim
dividend to underline our confidence in the financial strength,
management capability and future prospects of the Group."
"The strengthened and restructured board has identified a new
"Acquire, Develop, Manage the Portfolio" strategy for Produce
Investments which will make the most of our collective experience
in turning around and developing profitable food businesses. We
have appointed new advisers as a result and we look forward to
pursuing this to generate significant incremental value for our
shareholders as suitable acquisition opportunities arise."
-End-
For further information contact:
Produce Investments plc
Jonathan Lamont 01890 819503
Numis Securities Limited
(Nomad)
Oliver Cardigan / Tom Ballard 020 7260 1000
Powerscourt
Nick Dibden / Samantha
Trillwood
produce@powerscourt-group.com 020 7250 1446
Notes to Editors
The Group is a vertically integrated company supplying blue chip
retail customers with potatoes and daffodils.
Website: www.produceinvestments.co.uk
Financial review
Revenue in the first six months increased by 1.0% to GBP79.3m,
compared to GBP78.5m for the comparative period last year, driven
predominantly by higher raw material prices. Volumes were more than
5% lower than in the comparative period last year, as anticipated
under the terms of a new long term contract with one of our key
retail customers. However, cost prices were considerably higher
than we had expected as a result of the lowest yielding potato crop
in recent UK history, which drove an increase in our cost of sales
from GBP51.7m to GBP53.8m. Administrative and other costs also
increased, from GBP23.4m to GBP25.3m, principally as the result of
a longer than expected implementation process for our new ERP
system, which will deliver efficiency gains in the coming financial
year. This resulted in an operating profit before interest, tax and
exceptional items of GBP0.2m from GBP3.4m last year, resulting in
an operating margin of 0.3% compared to 4.4% profit margin in the
comparative period last year.
In order to ensure that all balances transferred into the new
ERP system were correct, the Directors commissioned a full review
of the interim accounts. As a result of this work a number of
non-cash exceptional write-downs totalling GBP1m have been taken in
the first half. These comprise exceptional charges of GBP547,000
relating to suspense accounts, and fixed asset impairment charges
of GBP460,000.
In addition a charge of GBP330,000 has been taken relating to
share options against trading profit. A further non-cash charge of
GBP420,000 relating to the treatment of biological assets will be
taken in the second half.
As a result of these exceptional charges the loss before tax for
the half year is (GBP1.0m) (2015: loss (GBP0.2m)) and basic
earnings per share are (3.21) pence per share (2015: (0.79) pence
per share).
Net debt increased to GBP29.1m (2015: GBP22.8m) driven primarily
by the higher prices paid for our raw materials and the lag in
recovering these in retail pricing. However, the Group remains
highly cash generative and net debt for the full year is expected
to be lower than last year as stock levels reduce.
Dividends
The Board has approved a 2% increase to the interim dividend to
2.44 pence per share (2015: 2.39 pence per share) in the light of
improved trading in the second half and our confidence in the
financial strength and future strategy and prospects of the Group.
This will be paid on 21 April 2017 to shareholders on the register
at close of business on 7 April 2017. The shares will trade
ex-dividend on 6 April 2017.
Operational review
We continue our work to align our capacity and costs with
forecast sales. In a market that has been less stable than in
previous years as a result of lower crop yields and higher pricing,
we have taken steps to remove excess capacity in our Fresh Potato
business, and invested to strengthen our operational team.
Additional retail volumes on longer term contacts have been secured
by investment in margin and by adopting a more collaborative style
of supply chain management, a strategy that positions the business
well for the future.
Planting of Jersey Royals for the coming season is progressing
well and is nearly complete. Commercial programmes have been
finalised with our customers and we are confident of achieving an
improved result in 2017 compared to that of 2016.
Sales of Daffodils in January and February were in line with
forecast and, with Easter arriving later this year, we remain
optimistic on the outcome for the flower business over the
financial year as a whole. Additional retail business wins have
helped improve the sales mix of the daffodil crop compared with
prior years.
Swancote Foods, our processing business, has benefited from new
site management and a greater focus on processes and efficiencies,
which are helping us to expand its customer base, and we are
pleased to report the award of a new long term contract since the
beginning of the second half.
Looking ahead, early indications point to an increase in the
planted area of potatoes for the 2017 season as many growers seek
to capitalise on the recent strength of prices. With additional
business secured, and good visibility on our volumes and margins
for the next three years, we are seeking to secure more contracted
crop to ensure greater stability in the market.
Principal risks and uncertainties
The Group set out in its 2016 Annual Report and Financial
Statements the principal risks and uncertainties that could have an
impact on its performance. These remain largely unchanged since the
Annual report was published with the main areas of potential risk
and uncertainty being the threat from competition and any
disruption to the supply and as seen this year, the quality of
potatoes.
The Board
The Board was comprehensively restructured during the first half
of the year. At the Company's AGM on 28 October 2016 Neil Davidson
succeeded Barrie Clapham as Chairman and Sean Christie and Liz
Kynoch joined the Board as Non-Executive Directors, while the
former Non-Executive Directors Derek Porter, Michael Jankowski and
Tony Bambridge all retired from the Board. Brian Macdonald,
formerly Group Finance Director, stood down from the Board on 31
December 2016 and was replaced by Jonathan Lamont. The Group now
has a Board that is well equipped to guide it through a new phase
of strategic development, in which it will be able to draw on its
members' in-depth knowledge of both food manufacturing and food
retailing in the UK, as well as their wider business
experience.
Advisers
The Company appointed Numis Securities Limited as its Nominated
Adviser and sole Broker on 17 February 2017, and Hogan Lovells as
its legal adviser.
Future strategy
The Board believes that there is a clear opportunity to bring
the proven investment model of "Acquire, Develop, Manage the
Portfolio" to the food sector. We have observed and understand the
strength, simplicity and success of this model, and the Group Board
and management team have an excellent track record of value
creation across a diverse range of businesses and subsectors. The
existing Produce business provides a strong platform for further
development, as an established brand leader in potatoes through
Greenvale and Jersey Royals, and a supplier to most of the UK's
leading retailers. It also has a record of increasing market share
through both organic growth and acquisitions since it was
established in 2006.
We believe that there are still many companies in the food
sectors with scope for material improvement, and that we have the
skills and experience needed to deliver an "Acquire, Develop,
Manage the Portfolio" strategy across the diverse cultures and
ownership structures within the industry. Produce Investments is
clearly differentiated from other players that may compete for
these assets and will pursue a conservative financing approach that
will allow us to fund appropriate capital investment and / or
bolt-on mergers and acquisitions to create value. We believe that
these distinctive characteristics will make us an attractive and
nimble acquirer of assets and businesses from private vendors,
corporates and private equity houses alike.
Our criteria for the three strands of our future strategy are as
follows:
Acquire. We are looking to acquire businesses with a broad base
of customers and distribution channels, long term retailer
relationships or agreements, strong management teams and well
invested assets, that are operating in growing markets or
categories and have the potential to generate strong cash flows. We
will also consider opportunistic acquisitions of undervalued
operations. Our initial targets will be UK-headquartered private or
public businesses with enterprise values up to GBP500m, operating
in the food sectors, both branded and unbranded, whether selling
through retailers or other routes to market. We believe that there
are many potential acquisition opportunities that meet these
criteria, including non-core subsidiaries, "stranded" private
equity-owned assets, and private family businesses. Our financing
will be prudently structured, targeting leverage of 2.0x net debt
to EBITDA.
Develop. We will create value for our shareholders by improving
the quality, scale and / or scope of the businesses we acquire,
with a focus on driving sustainable returns and a relentless
pursuit of quality that may mean we shrink to grow the quality of a
business rather than pursuing size for size's sake. Our financial
model will ensure that we have significant capacity to invest in
our businesses to drive returns, whether through capital
expenditure or complementary acquisitions.
Trade the Portfolio. We will manage our business portfolio to
maximise shareholder value, holding assets while they are in the
"Develop" phase and retaining those that offer attractive high
returns, and are generating robust margins and strong cash flows.
However, we will be open minded to the divestment of all assets
where we can see opportunities to take advantage of cyclical
dynamics or of opportunistic purchasers. There will be an acute
focus on the generation of value for our shareholders, which we aim
to achieve through both a progressive regular dividend policy and
through special returns of disposal proceeds and / or surplus
cash.
Outlook
Current trading is well ahead of last year as we begin to
recover higher raw material costs through our pricing arrangements
with key customers. The year-end result will depend on that rate of
price recovery, the outcome of the daffodil season, now in full
swing, and the Jersey Royals new potato season which is only just
beginning. Underlying trading profit for the year is broadly in
line with the Board's original expectations, however full year
profit before tax will be lower than these expectations as a result
of the non-cash write-offs.
We now know the outcome of a number of retailer supplier reviews
and have secured additional business going into next year, which
also gives us good visibility on likely volumes for the next three
years. This, in turn, will improve efficiencies at our two fresh
potato sites at Duns and Floods Ferry, following our three into two
factory rationalisation last year. We will also derive significant
efficiency benefits from ERP implementation.
The Group continues to be cash generative and remains committed
to its long term strategy of widening both its product and customer
base within its established produce operations. The strengthened
and restructured board has identified a new strategy for Produce
Investments which will make the most of our collective experience
in turning around and developing profitable food businesses, and we
look forward to pursuing this to generate significant incremental
value for our shareholders as opportunities for appropriate and
timely acquisitions arise.
Neil Davidson Angus Armstrong
Chairman Chief Executive
23.03.2017
CONSOLIDATED CONDENSED INCOME STATEMENT (UNAUDITED)
For the 26 weeks ended 24 December 2016
Notes 2016 2015
GBP'000 GBP'000
CONTINUING OPERATIONS
Revenue 4 79,333 78,531
Cost of sales (53,812) (51,656)
--------- ---------
Gross profit 25,521 26,875
Administrative and other
operating expenses (25,278) (23,441)
Operating (loss) / profit,
before interest and exceptional
items 243 3,434
Exceptional Items 4 (1007) (3,248)
Finance costs (232) (384)
(Loss) before tax (996) (198)
Income tax credit 6 200 40
--------- ---------
(Loss) after tax (796) (158)
========= =========
Attributable to:
Equity holders of the parent (862) (211)
Non- controlling interests 66 53
--------- ---------
(796) (158)
Basic earnings per share 5 (3.21) (0.79)
pence pence
Diluted earnings per share 5 (3.21) (0.79)
pence pence
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
(UNAUDITED)
For the 26 weeks ended 24 December 2016
2016 2015
GBP'000 GBP'000
------------------------------ ----------- -----------
(Loss) for the period (796) (158)
=========== ===========
Total comprehensive income
for the period, net of
tax (796) (158)
================================ =========== ===========
Attributable to:
Equity holders of the parent (862) (211)
Non- controlling interests 66 53
----------- -----------
(796) (158)
============================== =========== ===========
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION
(UNAUDITED)
At 24 December 2016
Notes 2016 2015
GBP'000 GBP'000
--------------------------------- ------- --------- ---------
ASSETS
Non-current assets
Property, plant and equipment 8 33,921 36,578
Intangible assets 15,873 16,356
Investment in an associate 707 250
Deferred tax assets 1,518 1,533
--------- ---------
52,019 54,717
--------- ---------
Current assets
Inventories 19,835 16,849
Biological assets 20,914 17,061
Trade and other receivables 26,902 21,871
Prepayments 3,034 2,630
Cash and short-term deposits 11 381 927
Asset held for resale 1,250 -
72,316 59,338
Total assets 124,335 114,055
================================= ======= ========= =========
EQUITY AND LIABILITIES
Equity
Equity share capital 9 21,989 21,928
Other capital reserves 10,228 10,228
Retained earnings 16,717 17,364
--------- ---------
Equity attributable to
equity holders of the parent 48,934 49,520
Non-controlling interests 596 505
--------- ---------
Total equity 49,530 50,025
========= =========
Non-current liabilities
Interest-bearing loans
and borrowings 11 10,000 5,500
Other non-current financial
liabilities 395 1,517
Deferred revenue 108 65
Pensions and other post
employment benefit obligations 12 6,992 5,805
Deferred tax liability 3,943 5,542
21,438 18,429
--------- ---------
Current liabilities
Trade and other payables 33,557 27,008
Interest-bearing loans
and borrowings 11 19,441 18,221
Deferred revenue 100 70
Income tax payable 269 302
53,367 45,601
--------- ---------
Total liabilities 74,805 64,030
--------------------------------- ------- --------- ---------
Total equity and liabilities 124,335 114,055
================================= ======= ========= =========
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY
(UNAUDITED)
For the 26 weeks ended 24 December 2016
Equity Other
Share capital Retained Non-controlling Total
capital reserves earnings Total interest Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- --------- ---------- ---------- -------- ---------------- --------
As at 25 June
2016 21,938 10,228 18,559 50,725 530 51,255
Profit and total
comprehensive
income for the
period - - (862) (862) 66 (796)
Equity dividends
paid - - (1,310) (1,310) - (1,310)
Share issue 51 - - 51 - 51
Share based payment
transactions - - 330 330 - 330
As at 24 December
2016 21,989 10,228 16,717 48,934 596 49,530
======================= ========= ========== ========== ======== ================ ========
Equity Other
Share capital Retained Non-controlling Total
capital reserves earnings Total interest Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- --------- ---------- ---------- -------- ---------------- --------
As at 27 June
2015 21,865 10,228 18,855 50,948 452 51,400
Profit and total
comprehensive
income for the
period - - (211) (211) 53 (158)
Equity dividends
paid - - (1,280) (1,280) - (1,280)
Share issue 63 - - 63 - 63
Share-based payment - - - - - -
transactions
As at 26 December
2015 21,928 10,228 17,364 49,520 505 50,025
======================= ========= ========== ========== ======== ================ ========
CONSOLIDATED CONDENSED CASH FLOW STATEMENT (UNAUDITED)
For the 26 weeks ended 24 December 2016
Note 2016 2015
GBP'000 GBP'000
------------------------------- ---- ----- --------- ---------
Operating activities
(Loss) before tax
from continuing operations (996) (198)
Adjustments to reconcile
profit before tax
for the period to
net cash inflow from
operating activities
Depreciation and amortisation 2,443 2,269
Impairment 460 1,865
Loss on disposal of
property plant and
equipment - 30
Share-based payment 330 -
transaction expense
Finance costs 238 384
Difference between
pension contributions
paid and amounts recognised
in the income statement (276) (258)
Working capital adjustments:
Decrease in trade
and other receivables
and prepayments 2,142 6,016
Increase in inventories (12,096) (6,848)
(Decrease)/increase
in trade and other
payables 2,171 (1,735)
(Decrease) in deferred
revenue 50 (90)
Income tax (paid) (700) (548)
--------- ---------
Net cash inflows arising
from operating activities (6,234) 887
--------- ---------
Investing activities
Purchase of property,
plant and equipment 8 (3,200) (1,667)
Purchase of Intangible
assets - (11)
Net cash outflows
arising from investing
activities (3,200) (1,678)
--------- ---------
Financing activities
Dividends paid to
equity shareholders
of parent (1,310) (1,280)
Proceeds from share
issues 51 63
Drawdown of bank borrowings 7,820 557
New loans arranged 2,750 -
in period
Interest paid (238) (384)
Net cash outflows
arising from financing
activities 9,073 (1,044)
--------- ---------
Net (decrease) in
cash and cash equivalents (361) (1,835)
Cash and cash equivalents
at beginning of period 742 2,762
------------------------------------- ----- --------- ---------
Cash and cash equivalents
at end of period 381 927
===================================== ===== ========= =========
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 26 weeks ended 24 December 2016
1. General information
The Company is a public limited company incorporated and
domiciled in the UK. The address of its registered office is
Produce Investments plc, Greenvale AP, Floods Ferry Road,
Doddington, March, Cambridgeshire, PE15 0UW. The Company is listed
on the London Stock Exchange AIM market.
The condensed consolidated interim financial statements of the
Group were approved for issue on 22 March 2017. These interim
financial results do not comprise statutory accounts within the
meaning of Section 434 of the Companies Act 2006. Statutory
accounts for the 52 weeks ended 25 June 2016 were approved by the
Board of Directors on 29 September 2016 and delivered to the
Registrar of Companies. The report of the auditors on those
accounts was unqualified, did not contain an emphasis of matter
paragraph and did not contain any statement under Section 498 of
the Companies Act 2006.
2. Basis of preparation
The condensed consolidated interim financial statements for the
26 weeks ended 24 December 2016 have been prepared on the same
basis and using the same accounting policies of the Group from the
year ended 25 June 2016. These consolidated interim financial
statements have not been prepared in accordance with IAS 34 Interim
Financial Reporting and do not include all of the information
required for full annual financial information and should be read
in conjunction with the annual financial statements for the year
ended June 2016 which have been prepared in accordance with IFRS as
adopted by the EU.
The Group's business activities, together with the factors
likely to affect its future development, performance and position,
are discussed in the Operating and Financial Review. The Group net
debt position is highlighted in note 11 of the condensed
consolidated interim financial statements. The interim information
contained in these condensed interim financial statements is
unaudited. The Directors report that having reviewed current
performance and forecast they have a reasonable expectation that
the Group has adequate resources to continue in operational
existence for the foreseeable future. For this reason they continue
to adopt the going concern basis in preparing these condensed
consolidated interim financial statements.
3. Accounting policies
The accounting policies adopted are consistent with those of the
annual financial statements for the period ended 25 June 2016, as
described in those annual financial statements.
There has been no impact on the Group's financial position or
performance from new and amended IFRS and IFRIC interpretations
mandatory as of 25 June 2016.
4. Operating segment information
Management have determined the operating segments based on the
reports utilised by the directors that are used to make strategic
decisions. These are split as follows:
- Fresh
- Processing
- Other
Fresh comprises the sites, staff and assets that grow, source,
pack and deliver fresh potatoes to customers, ranging from large
retailers, wholesalers to small private businesses. As an element
of raw material is not suitable for this purpose it also includes
any supplementary sales achieved. Also included under the fresh
segment are the operational activities of Rowe Farming. These cover
the growing, packing and selling of both early season fresh
potatoes and daffodil flowers and bulbs. Jersey Royal potato
activity is also included in the fresh segment.
Processing comprises the staff and assets that supply
pre-prepared potato products which are ultimately sold as
ingredients for food manufacturers.
Other comprises seed sales for both the UK and export, traded
volume where Greenvale acts as an intermediary between the farmer
and the end customer taking a small margin to cover costs, and all
sales activities of Restrain Company Limited, a 70% owned
subsidiary that provides ethylene based storage solutions for
potatoes and onions. No element within 'other' is large enough to
require additional segmentation.
Management monitors the operating results of its business units
separately for the purpose of making decisions about resource
allocation and performance assessment. Segment performance is
evaluated based on operating profit or loss and is measured
consistently with operating profit or loss in the consolidated
financial statements. However, Group financing (including finance
costs and finance income) and income taxes are managed on a Group
basis and are not allocated to operating segments. Inventory
procurement, receivables and payables are managed centrally and as
a result assets and liabilities are managed at Group level.
Consequently, no segmental analysis of these items is
presented.
26 weeks ended 26 December 2015
-----------------------------------------------------------------------
Fresh Processing Other Total
GBP'000 GBP'000 GBP'000 GBP'000
----------------- ---- --------- ----------- --------- ---------
Revenue 63,045 2,256 13,230 78,531
Depreciation
and amortisation (1,638) (385) (246) (2,269)
Loss on disposal
of fixed assets (30) - - (30)
Other operating
costs (57,531) (2,378) (12,889) (72,798)
Operating profit
/ (loss) 3,846 (507) 95 3,434
Costs not
allocated:
Exceptional
Items (3,248)
Finance costs (384)
Loss before
tax (198)
Capital
expenditure (687) (338) (642) (1,667)
Development
costs - - (11) (11)
26 weeks ended
24 December 2016
-------------------------- --------- ----------- --------- ---------
Fresh Processing Other Total
GBP'000 GBP'000 GBP'000 GBP'000
-------------------- --- --------- ----------- --------- ---------
Revenue 62,631 2,945 13,757 79,333
Depreciation and
amortisation (1,923) (266) (254) (2,443)
Other operating
costs (60,421) (3,434) (12,792) (76,647)
Operating
profit/(loss) 287 (755) 711 243
Costs not allocated:
Exceptional items (1,007)
Finance costs (232)
Profit before
tax (996)
Capital expenditure (2,315) (190) (695) (3,200)
Development costs - - - -
===================== === ========= =========== ========= =========
The accounting policies for the segments are the same as those
described in the summary of significant accounting policies. The
revenues and operating profit / (loss) per reportable segment agree
in aggregate to the consolidated totals per the interim financial
statements.
The Exceptional Items relate to the write off of old
intercompany balances and the impairment of assets at our operating
sites.
Segmentation of Assets and liabilities
Investments in associates are not segmented. Such items are
managed at board level and are not integral to the operations of
any of the Group segments.
Other non current financial assets and liabilities are not
segmented. Such items are managed at board level with the support
of the Group central services team. These items are not integral to
the operations of any of the Group segments.
No segmentation is presented in respect of receivables, payables
and cash. The Group central services team manages Group treasury,
cashflow, payables and receivables independently from the operating
segments.
Taxation matters are managed by the Group central services team
and are not segmented.
Inventories and biological assets are managed centrally by the
Group procurement team. Inventories are usually stored at a Group
location most appropriate for the supplier to deliver the goods to,
usually the closest geographical location to the supplier. The
inventories are then used in the delivery of goods and services to
all segments within the Group.
The Group central services team coordinates prepayments,
accruals and provisions and these are not segmented.
The deferred revenue is managed by the central services team.
All deferred revenue relates to the 'other' segment.
Intangible assets
---------------------- --------- ---------
2016 2015
GBP'000 GBP'000
---------------------- --------- ---------
Fresh 7,280 7,286
Processing 8,457 8,982
Other 136 88
Total 15,873 16,356
======================= ========= =========
Property, plant and equipment
analysis
---------------------------------- --------- ---------
2016 2015
GBP'000 GBP'000
---------------------------------- --------- ---------
Fresh 21,678 25,299
Processing 2,123 2,525
Other 4,900 3,174
Unallocated 5,220 5,580
Total 33,921 36,578
=================================== ========= =========
The amounts for items which are not segmented are disclosed in
the balance sheet.
Geographical information
Revenues from external customers
2016 2015
GBP'000 GBP'000
--------------------------------------- --------- ---------
UK 75,361 74,636
Other EU countries 1,322 1,451
Rest of the world 2,650 2,444
----------------------------------------- --------- ---------
Total revenue per consolidated income
statement 79,333 78,531
========================================= ========= =========
The revenue information above is based on the location of the
customer.
5. Earnings per share
2016 2015
--------------------------------------- ------------- -------------
Profit / (loss) attributable to
equity shareholders (GBP'000) (862) (211)
============= =============
Number of ordinary shares for basic
eps calculation 26,876,357 26,788,181
Number of options with dilutive
effect 813,340 1,279,683
------------- -------------
Total number of shares for fully
diluted eps calculation 27,689,697 28,068,044
============= =============
Basic earnings per share - pence (3.21) (0.79)
Diluted earnings per share - pence (3.21) (0.79)
For details relating to the changes in share options and issued
equity, please refer to the notes below.
6. Taxation
Tax in these interim statements has been computed at 19.75%,
which is the anticipated effective tax rate for the year ended 24
June 2017.
7. Dividends
2016 2015
GBP000 GBP000
--------------------------- -------- --------
Dividends paid in period 1,310 1,280
============================ ======== ========
In the 26 week period ended 24 December 2016, the directors paid
a final dividend of 4.88 pence per share on 1 November 2016. The
total cash outflow was GBP1,310,000.
On 22 March 2017, the Board approved an interim dividend for the
period ended 24 December 2016 of 2.44p per share. This dividend has
not been included as a liability as at 24 December 2016, in
accordance with IAS 10 'Events after the balance sheet date'.
8. Property Plant and equipment
During the 26 weeks ended 24 December 2016, the Group acquired
assets with a cost of GBP3,200,000
(2015: GBP1,667,000).
9. Issued capital and reserves
Number
of ordinary Ordinary Share
shares shares premium Total
(thousands) GBP'000 GBP'000 GBP'000
------------------- ------------- --------- --------- ---------
As at 25 June
2016 (audited) 26,851 268 21,670 21,938
Issued in
period 69 1 50 51
As at 24 December
2016 26,920 269 21,720 21,989
===================== ============= ========= ========= =========
As at 28 June
2015 (audited) 26,753 267 21,598 21,865
Issued in
period 85 1 62 63
As at 27 December
2015 26,838 268 21,660 21,928
==================== ======= ==== ======= =======
Between 25 June 2016 and 24 December 2016, 68,445 ordinary
shares were issued to various individuals as a result of the
exercise of share options. The gross proceeds of additional share
issues were GBP51,000 and these proceeds are included within share
capital
At 24 December 2016 there were 26,919,707 ordinary shares in
issue.
Between 28 June 2015 and 26 December 2015, 84,937 ordinary
shares were issued to various individuals as a result of the
exercise of share options. The gross proceeds of additional share
issues were GBP63,000 and these proceeds are included within share
capital.
At 26 December 2015 there were 26,837,918 ordinary shares in
issue.
All shares carry equal voting rights.
10. Employee share options
No charges have been recorded in respect of employee share
options that were in existence as at 25 June 2016. These interim
statements should therefore be read in conjunction with the full
year audited financial statements of the Group, which include full
IFRS 2 disclosures.
In the 26 weeks ended 24 December 2016, the Group has recognised
a charge to income of GBP330,000 (2015 : GBPnil) in respect of
executive share options granted during the period.
11. Net debt and cash equivalents
Reconciliation of net debt between 26 June 2016 and 24 December
2016
26 June 24 December
2016 Cash flow Non cash 2016
--------------------------- --------- ---------- --------- ------------
GBP'000 GBP'000 GBP'000 GBP'000
Cash and cash equivalents 742 (361) - 381
Loans (18,871) (10,570) - (29,441)
(18,129) (10,931) - (29,060)
=========================== ========= ========== ========= ============
Reconciliation of net debt between 28 June 2015 and 26 December
2015
28 June 26 December
2015 Cash flow Non cash 2015
--------------------------- --------- ---------- --------- ------------
GBP'000 GBP'000 GBP'000 GBP'000
Cash and cash equivalents 2,762 (1,835) - 927
Loans (23,480) (241) - (23,721)
(20,718) (2,076) - (22,794)
=========================== ========= ========== ========= ============
Reconciliation to statement of financial position
24 December 26 December 25 June 27 June
2016 2015 2016 2015
-------------------------- ------------ ------------ ---------- ---------
GBP'000 GBP'000 GBP'000 GBP'000
Cash and short
term deposits 381 927 742 2,762
Non current interest
bearing loans and
borrowings (10,000) (5,500) - (7,000)
Current interest bearing
loans and borrowings (19,441) (18,221) (18,871) (16,480)
(29,060) (22,794) (18,129) (20,718)
========================== ============ ============ ========== =========
The current interest bearing loans and borrowings includes
GBP14,899,000 (2015: GBP8,409,000) relating to an Invoice Finance
facility secured on the sales ledgers of Greenvale AP Ltd and Rowe
Farming Ltd, both of which are subject to a six month notice
period. Also included is an overdraft facility of GBPnil (2015:
GBP1,753,000), repayable on demand.
12. Pensions
The Group operates a defined benefit pension scheme which is
closed to new members and no longer accrues benefits to existing
member employees.
There were no changes to the members, their accrued future
benefits or the scheme funding arrangements at any time between 25
June 2016 and 24 December 2016. Group management therefore regard
the key assumptions, in the medium to long term, as unchanged.
Given the highly volatile nature of inflation rates and asset
markets in the short term, management conclude that computing an
interim valuation on an IAS 19 basis at either 24 December 2016 or
26 December 2015 would not provide significant additional benefit
to the reader. Consequently, no actuarial valuation at either
interim date has been performed.
The movement in the pension liability between June 2016 and
December 2016 represents cash contributions made by the Group in
the period. These interim statements should therefore be read in
conjunction with the full year audited financial statements of the
Group, which include full IAS 19 disclosures.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLLLLDXFFBBD
(END) Dow Jones Newswires
March 23, 2017 03:01 ET (07:01 GMT)
Produce (LSE:PIL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Produce (LSE:PIL)
Historical Stock Chart
From Apr 2023 to Apr 2024