Donegal Investment - Half-year Results
DONEGAL INVESTMENT GROUP PLC
ANNOUNCEMENT OF RESULTS FOR THE 6 MONTHS ENDED 28 FEBRUARY 2026
29 May 2026
Donegal Investment Group plc ('DIG') ('Company') ('Group') reports its interim results for the 6 months ended 28 February 2026.
The 6-month period ended 28 February 2026 saw the Group complete the sale of its seed potato businesses, IPM Potato Group Limited, AJ Allan Limited, IPM Portugal Limited, IPM France Limited, IPM Holland Limited and IPM Kenya Limited, collectively referred to as "IPM" to the Royal HZPC Group ("HZPC") ("the Disposal"). The board would like draw shareholders attention to the following points:
· Proceeds received from the disposal total €14.1m after payment of all costs of disposal.
· An additional €2.4m will be held in Escrow for a period of 24 months to February 2028.
· An Asset held for sale of €0.5m has been recognised related to the group's interest in Kirinyaga Seeds Limited.
· The Group has recognised a profit on disposal of €8.5m after deducting the carrying value of net identifiable assets disposed of and non-controlling interests.
· The Group has fully provided for the outstanding loan to Utkal Seeds Limited of €0.95m, recognising an impairment loss equivalent to the full outstanding balance.
· Following Completion, the Company has become a cash shell for the purposes of the Euronext Growth Rules and is therefore required to complete an acquisition (or acquisitions) constituting a reverse takeover within 12 months of Completion. If the Company fails to do this, trading in its Ordinary Shares on Euronext Growth will be suspended.
· The Group's cash position at period end 28 February 2026 was €17.5m.
· Following approval at the AGM on 27 March 2026, the board plan to return €15m to shareholders at a price of €16 per share. The Group currently has issued ordinary shares outstanding of 1,213,384. The conversion and redemption will result in 936,997 shares being redeemed, leaving issued ordinary shares outstanding of 276,387. The share redemption is expected to take place in June 2026.
· The board has taken further steps to reduce the corporate overhead in light of the reduced complexity of the Group. The same governance structures will remain in place for the foreseeable future to ensure continuity and to protect the remaining interests of shareholders.
Enquiries:
Investors & Analysts
Padraic Lenehan
Director
Donegal Investment Group Plc
Tel: 074 9121766
Email: plenehan@donegaligroup.com
Anthony Farrell
Davy Corporate Finance
Tel: + 353 1 679 6363
Email: anthony.farrell@davy.ie
Donegal Investment Group plc
Condensed consolidated statement of profit or loss and comprehensive income
for the 6 months ended 28 February 2026
Note
6 months ended 28 February 2026
Total
€'000
6 months ended 28 February 2025
Total*
€'000
Audited
12 months ended 31 August 2025
Total
€'000
Continuing operations
Revenue
4
-
-
-
Cost of sales
-
-
-
Gross profit
-
-
-
Other income
5
-
3
-
Other expense
6
(951)
-
(736)
Distribution expenses
-
-
-
Administrative expenses
(1,075)
(779)
(1,154)
(Loss)/Profit from operating activities
(2,026)
(776)
(1,887)
Finance income
-
90
85
Finance expenses
-
(2)
(11)
Net finance income
-
88
74
(Loss)/Profit before income tax
(2,026)
(688)
(1,813)
Income tax (charge)/benefit
-
-
(1)
(Loss)/Profit for the period - continuing operations
4
(2,026)
(688)
(1,814)
Profit for the year - from discontinued operations, net of tax
8,507
3,212
1,979
Profit/(loss) for the year
6,481
2,524
165
* As restated to reflect the disposal of IPM
Donegal Investment Group plc
Condensed consolidated statement of profit or loss and comprehensive income (continued)
for the 6 months ended 28 February 2026
Unaudited
Unaudited
Audited
6 months ended 28 February 2026
Total
€'000
6 months ended 28 February 2025
Total*
€'000
12 months ended 31 August 2025
Total
€'000
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences for foreign operations
-
2
(18)
Recycle of currency translation differences for foreign operations
-
-
-
Total comprehensive income for the period
6,481
2,526
147
Profit attributable to:
Equity holders of the Company
6,481
2,509
113
Non-controlling interest
-
15
52
6,481
2,524
165
Total comprehensive income attributable to:
Equity holders of the Company
6,481
2,521
85
Non-controlling interest
-
5
62
6,481
2,526
147
* As restated to reflect the disposal of IPM
Donegal Investment Group plc
Condensed consolidated statement of profit or loss and comprehensive income (continued)
for the 6 months ended 28 February 2026
Unaudited
Unaudited
Audited
Earnings per share
6 months ended 28 February 2026
Total
€'000
6 months ended 28 February 2025*
Total
€'000
12 months ended 31 August 2025
Total
€'000
Basic earnings per share
(euro cent):
Continuing
(166.96)
(47.24)
(135.61)
Discontinued
701.07
219.47
144.15
534.11
172.23
8.54
Diluted earnings per share (euro cent):
Continuing
(166.96)
(47.24)
(135.61)
Discontinued
701.07
219.47
144.15
534.11
172.23
8.54
* As restated to reflect the disposal of IPM
Donegal Investment Group plc
Condensed consolidated statement of financial position
As at 28 February 2026
Unaudited
Unaudited
Audited
Note
28 February 2026
€'000
28 February 2025
€'000
31
August
2025
€'000
Assets
Property, plant and equipment
-
3,782
-
Investment property
8
-
475
-
Goodwill
-
500
-
Intangible assets
-
227
-
Investment in associates
-
-
-
Other investments
-
737
-
Total non-current assets
-
5,721
-
Inventories
-
1,884
-
Biological assets
-
-
-
Trade and other receivables
43
14,812
835
Asset held for sale
460
-
13,647
Escrow Receivable
2,400
-
-
Cash at bank
17,464
7,413
3,960
Current tax
-
-
4
Total current assets
20,367
24,109
18,446
Total assets
20,367
29,830
18,446
Equity
Share capital
159
159
159
Share premium account
2,975
2,975
2,975
Other reserves
(931)
(643)
(931)
Retained earnings
17,125
13,331
10,644
Total equity attributable to equity holders of the Company
19,328
15,822
12,847
Non-controlling interest
(214)
(587)
(530)
Donegal Investment Group plc
Condensed consolidated statement of financial position (continued)
As at 28 February 2026
Total equity
19,114
15,235
12,317
Liabilities
Loans and borrowings
-
601
-
Deferred tax liabilities
-
46
-
Deferred income
-
168
-
Total non-current liabilities
-
815
-
Loans and borrowings
-
368
-
Trade and other payables
1,253
8,676
312
Liabilities directly associated with asset held for sale
-
-
5,817
Bank overdraft
-
4,396
-
Current tax
-
340
-
Total current liabilities
1,253
13,780
6,129
Total liabilities
1,253
14,595
6,129
Total equity and liabilities
20,367
29,830
18,446
Donegal Investment Group plc
Condensed consolidated statement of changes in equity
for the 6 months ended 28 February 2026
Share
capital
€'000
Other un- denominated capital
€'000
Share
premium
account
€'000
Trans-
lation
reserve
€'000
Treasury
reserve
€'000
Retained
earnings
€'000
Total
€'000
Non-
controlling
interest
€'000
Total
equity
€'000
Balance at 1 September 2025
159
1,178
2,975
(1,800)
(309)
10,644
12,847
(530)
12,317
Total comprehensive income for the period
Profit for the period
-
-
-
-
-
6,481
6,481
-
6,481
Other comprehensive income
Foreign currency translation differences for foreign
Operations
-
-
-
-
-
-
-
-
-
Other comprehensive income
-
-
-
-
-
-
-
-
-
Total comprehensive income for the period
-
-
-
-
-
6,481
6,481
-
6,481
Transactions with owners recorded directly in equity
Contributions by and distributions to owners
Derecognition of minority interest
-
-
-
-
-
-
-
316
316
Total contributions by and distributions to owners
-
-
-
-
-
-
-
316
316
Balance at 28 February 2026
159
1,178
2,975
(1,800)
(309)
17,125
19,328
(214)
19,114
Donegal Investment Group plc
Condensed consolidated statement of changes in equity
for the 6 months ended 28 February 2026
Share
capital
€'000
Other un- denominated capital
€'000
Share
premium
account
€'000
Trans-
lation
reserve
€'000
Treasury
reserve
€'000
Retained
earnings
€'000
Total
€'000
Non-
controlling
interest
€'000
Total
equity
€'000
Balance at 1 September 2024
197
1,140
2,975
(1,772)
(48)
15,602
18,094
(592)
17,502
Total comprehensive income for the period
Profit for the period
-
-
-
-
-
2,509
2,509
15
2,524
Other comprehensive income
Foreign currency translation differences for foreign
Operations
-
-
-
12
-
-
12
(10)
2
Other comprehensive income
-
-
-
12
-
-
12
(10)
2
Total comprehensive income for the period
-
-
-
12
-
2,509
2,521
5
2,526
Transactions with owners recorded directly in equity
Contributions by and distributions to owners
Conversion and Redemption of Redeemable Shares
(38)
38
-
-
-
(4,780)
(4,780)
-
(4,780)
Purchase of treasury shares
-
-
-
-
(13)
-
(13)
-
(13)
Total contributions by and distributions to owners
(38)
38
-
-
(13)
(4,780)
(4,793)
-
(4,793)
Balance at 28 February 2025
159
1,178
2,975
(1,760)
(61)
13,331
15,822
(587)
15,235
Donegal Investment Group plc
Condensed consolidated statement of cash flows
for the 6 months ended 28 February 2026 -
Note
6 months ended 28 February 2026
6 months ended 28 February 2025
12 months ended 31 August 2025
€'000
€'000
€'000
Cash flows from operating activities
Profit for the period
6,481
2,524
165
Adjustments for:
Depreciation
-
210
493
Amortisation of intangibles
-
13
26
Amortisation of capital grant
-
1
1
Reversal of investment asset impairment
-
-
-
Change in fair value of investment property
-
(5)
35
Release of warranty provision
-
-
(53)
Change in fair value of other investments
951
-
736
Net finance income
-
(237)
142
Interest charged in relation to lease arrangements
-
26
53
MTM Revaluation of Debt Instruments
-
-
-
Gain on sale of other investments
-
-
-
Gain on sale of property, plant and equipment
-
(42)
(70)
Profit for the year - from discontinued operations, net of tax
(8,507)
-
-
Share-based payment transactions
-
-
-
Income tax expense
-
334
686
Change in inventories
-
791
(482)
Change in trade and other receivables
2,494
(10,433)
(1,125)
Change in trade and other payables
(2,333)
5,588
505
(914)
(1,230)
1,112
Interest (paid)/refund
-
(11)
(18)
Income tax (paid)/refund
-
(113)
(498)
Net cash from operating activities
(914)
(1,354)
596
Cash flows from investing activities
Interest received
-
54
48
Dividends received
-
-
-
Proceeds from sale of investment property
-
-
112
Dividend received from associate
-
36
37
Proceeds from sale of property, plant and equipment
-
49
77
Proceeds from sale of other investments
-
-
-
Disposal of discontinued operations, net of cash disposed of
14,147
-
-
Acquisition of property, plant and equipment
-
(338)
(396)
Acquisition of intangibles
-
(117)
(117)
Net cash (used)/generated in investing activities
14,147
(316)
(239)
Donegal Investment Group plc
Condensed consolidated statement of cash flows (continued)
for the 6 months ended 28 February 2026
Note
6 months ended 28 February 2026
6 months ended 28 February 2025
12 months ended 31 August 2025
€'000
€'000
€'000
Cash flows from financing activities
Payment of finance lease liabilities
-
(195)
(464)
Redemption/(Acquisition) of Debt Instruments
-
7,086
7,086
Purchase of treasury shares
Share redemption
-
-
(13)
(4,780)
(261)
(4,780)
Dividend paid
-
-
(291)
Net cashflow from financing activities
-
2,098
1,290
Net increase/(decrease) in cash and cash equivalents
13,233
428
1,647
Cash and cash equivalents at start of period
4,231
2,586
2,586
Effect of exchange rate fluctuations on cash held
-
3
(2)
Cash and cash equivalents at period end
17,464
3,017
4,231
Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements
for the 6 months ended 28 February 2026
(1) Reporting entity
Donegal Investment Group Plc (the "Company") is a company domiciled in Ireland. The unaudited condensed consolidated interim financial statements of the Group as at and for the six months ended 28 February 2026 ("the interim financial statements") comprise the Company and its subsidiaries (together referred to as the "Group") and the Group's interests in associates.
(2) Basis of preparation
These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the Group's last annual consolidated financial statements as at and for the year ended 31 August 2025 ('last annual financial statements'). They do not include all of the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements.
The 28 February 2026 figures and the 28 February 2025 comparative figures do not constitute statutory financial statements of the Group within the meaning of the Companies Act, 2014. The consolidated financial statements of the Group for the year ended 31 August 2024, together with the independent auditor's report thereon, were filed with the Irish Registrar of Companies following the Company's Annual General Meeting and are also available on the Company's Website. The auditor's report on those financial statements was unqualified.
The interim financial statements have been prepared on the going concern basis. The Directors have reviewed the Group's business plan for the next 12 months and other relevant information and have a reasonable expectation that the Group will continue in operational existence for the foreseeable future.
The Interim Financial Statements are presented in Euro, rounded to the nearest thousand, which is the functional currency of the Company and also the presentation currency for the Group's financial reporting.
The significant accounting policies applied in these interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ending 31 August 2025.
(3) Estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied in prior impairment of trade receivables, in respect of the carrying value of goodwill, recognition of deferred tax assets, measurement of financial assets and liabilities.
Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 28 February 2026
(4) Segment Information
IFRS 8 Operating Segments requires operating segments to be identified on the basis of internal reports that are regularly reviewed by the chief operating decision maker (CODM) which the Group has identified to the Board of Directors in order to allocate resources to the segments and to assess their performance.
Produce: The growing, sales and distribution of seed potatoes and rental and sale of related property assets.
The main factors employed in the identification of the single segment include:
• the Group's organisational structure
• the nature of reporting lines to the Chief Operating Decision Maker
• the structure of internal reporting documentation such as management accounts and budgets
• Segment performance is evaluated based on operating profit. Given that net finance costs, taxation, share based payments and exceptional income and costs are managed on a centralised basis, these items are not allocated to the operating segment for internal reporting purposes and in the segmental analysis below.
Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 28 February 2026
(4) Segment information (continued)
Business segments (continued)
Produce
Total - Group
6 months ended 28 February 2026
6
months ended 28 February 2025*
12
months ended 31 August 2025
6 months ended 28 February 2026
6
months ended 28 February 2025*
12
months ended 31 August 2025
€'000
€'000
€'000
€'000
€'000
€'000
Total revenues
-
-
-
-
-
-
Segment result before exceptional items
Segmental result from continuing operations before exceptional items
(2,026)
(2,026)
(776)
(776)
1,887
1,887
(2,026)
(2,026)
(776)
(776)
(1,887)
(1,887)
Change in fair value of investment property and other assets
-
-
-
Net finance income
-
88
74
Income tax (expense)/benefit
-
-
(1)
(Loss)/profit for the period - continuing operations
(2,026)
(688)
(1,814)
* As restated to reflect the disposal of IPM
Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 28 February 2026
(4) Segment Information (continued)
Business segments (continued)
Produce
Total - Group
28 February 2026
28 February 2025
31 August 2025
28 February 2026
28 February 2025
31 August 2025
€'000
€'000
€'000
€'000
€'000
€'000
Segment assets
503
22,417
839
503
22,417
839
Cash at bank (unallocated)
17,464
7,413
3,960
Escrow Receivable
2,400
-
Asset held for sale
-
-
13,647
20,367
29,830
18,446
Segment liabilities
1,253
9,230
312
1,253
9,230
312
Bank overdraft (unallocated)
-
4,396
-
Liabilities directly associated with asset held for sale
-
-
5,817
Loans and borrowings (unallocated)
-
969
-
Total liabilities
1,253
14,595
6,129
Capital expenditure (inclusive of IFRS 16)
-
662
-
-
662
-
Depreciation and amortisation
-
223
-
-
223
-
Change in fair value of investment property and other assets
-
5
-
-
5
-
Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 28 February 2026
(5) Other income - continuing operations 6 months ended 6 months ended 12 months ended
28 February 2026
28 February 2025*
31 August 2025
2019
€'000
€'000
€'000
€'000
Income from investment and other property rentals
-
3
3
80
-
3
3
110
(6) Other expense - continuing operations 6 months ended 6 months ended 12 months ended
28 February 2026
29 February 2025*
31 August 2025
2019
€'000
€'000
€'000
€'000
Change in fair value of other investment
(951)
-
(736)
80
(951)
-
(736)
110
* As restated to reflect the disposal of IPM
Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 28 February 2026
(7) Earnings per share
The calculation of basic and diluted earnings per share is set out below:
6 months ended 6 months ended 12 months ended
28 February 2026
28 February
2025*
31 August
2025
€'000
€'000
€'000
(Loss)/Profit for the period - continuing operations
(2,026)
(688)
(1,814)
(Loss)/Profit for the period - discontinued operations
8,507
3,212
1,979
(Loss)/Profit for the period
6,481
2,524
165
(Loss)/Profit attributable to ordinary shareholders
6,481
2,509
113
Weighted average number of ordinary shares
In thousands of shares
6 months ended
28 February 2026
€'000
6 months
ended
28 February 2025
€'000
12 months
ended
31 August 2025
€'000
Weighted average number of ordinary shares in issue for the period
1,233
1,460
1,345
Weighted average number of treasury shares
(19)
(3)
(8)
Denominator for basic earnings per share
1,214
1,457
1,337
Weighted average number of ordinary shares (diluted) at end of period
1,214
1,457
1,337
6 months
ended
28 February
2026
6 months
ended
28 February
2025*
12 months ended
31 August
2025
Basic earnings/(loss) per share (euro cent)
Continuing
(166.96)
(47.24)
(135.61)
Discontinued
701.07
219.47
144.15
534.11
172.23
8.54
Diluted earnings/(loss) per share (euro cent)
Continuing
(166.96)
(47.24)
(135.61)
Discontinued
701.07
219.47
144.15
534.11
172.23
8.54
* As restated to reflect the disposal of IPM
Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 28 February 2026
(8) Investment property
28 February 2026
28 February 2025
31 August 2025
€'000
€'000
€'000
Balance at start of the period
-
583
583
Disposal of investment property
-
(113)
(113)
Change in fair value
-
5
(35)
Asset transferred to asset held for sale
-
-
(435)
Balance at end of the period
-
475
-
(9) Events after the balance sheet date
There have been no significant events subsequent to the period end, which would require adjustment to, or disclosure in, the interim financial statements.
Donegal Investment Group plc
Notes to the preliminary condensed consolidated financial statements (continued)
for the 6 months ended 28 February 2026
(10) Share Capital
Ordinary Shares
of €0.13 eachRedeemable Ordinary Shares
of €0.13 eachDeferred Shares
of €0.13 eachTotal
Number
€'000
Number
€'000
Number
€'000
€'000
Authorised
Balance at 1 September 2025
50,000,000
6,500
290,222
38
290,222
38
6,576
Balance at 28 February 2026
50,000,000
6,500
290,222
38
290,222
38
6,576
Issued, called up and fully paid
Balance at 1 September 2025
1,232,071
159
-
-
-
-
159
Balance at 28 February 2026
1,232,071
159
-
-
-
-
159
(11) Related party transactions
Details of related party transactions in respect of the year ended 31 August 2025 are contained in Note 34 to the Consolidated Financial Statements of the Group's 2025 Annual Report. The Group continued to enter into transactions in the normal course of business with its associates and other related parties during the period. The Group has entered into consultancy agreements with Culkeen Consulting Limited, which is owned and operated by Non-Executive Director, Mr Ian Ireland, and Drumgornan Limited, which is owned and operated by Non-Executive Director, Mr Padraic Lenehan. These companies will provide management services as required to support the strategy of the board going forward. There were no other transactions with related parties in the period or changes to transactions with related parties disclosed during the period that had a material effect on the financial position or the performance of the Group.
(12) Discontinued operations
During the period, the Group disposed of its seed potato businesses, IPM Potato Group Limited, AJ Allan Limited, IPM Portugal Limited, IPM France Limited, IPM Holland Limited and IPM Kenya Limited, collectively referred to as "IPM" to the Royal HZPC Group ("HZPC") ("the Disposal").
At 31 August 2025, the proposed disposal of IPM met the recognition criteria under IFRS 5 Non-current assets held for sale and discontinued operations. The Group has not recognised any trade for the period to 28 February 2026 and profit for the year from discontinued operation of €8.5m relates solely to the profit on disposal of IPM.
Donegal Investment Group plc
Notes to the preliminary condensed consolidated financial statements (continued)
for the 6 months ended 28 February 2026
(13) Disposal of subsidiary
28 February 2026
28 February 2025
€'000
€'000
Profit on disposal of asset held for sale, net
8,507
-
On 6 February 2026, the Group announced that it has completed the disposal of its seed potato businesses, IPM Potato Group Limited, AJ Allan Limited, IPM Portugal Limited, IPM France Limited, IPM Holland Limited and IPM Kenya Limited, collectively referred to as "IPM" to the Royal HZPC Group ("HZPC") ("the Disposal"). Following completion Donegal Investment Group has received €13.9m including existing IPM cash of €0.3m and customary completion account adjustments of -€0.5M. A further €2.4m will be held in Escrow for a period of 24 months to February 2028 ("Escrow Period"). IPM completed the sale of its Investment Property in Dublin on 13 November 2025 resulting in an additional consideration of €0.5m to DIG at completion.
A further contingent deferred cash consideration of up to a maximum of €4m is payable dependent on the financial performance of IPM for the period 1 September 2025 to 31 August 2027, inclusive ("Deferred Consideration"). Based on recent indications of the performance of IPM for the financial year ended 31 August 2026, the board believe no deferred consideration will be forthcoming at the end of the 2-year period. The seed potato industry has experienced a highly challenging year with market prices under significant downward pressure, particularly in some of IPM's key markets.
The carrying value of net identifiable assets disposed of amounts to €7,907,000 resulting in a profit on disposal of €8,507,000 after accounting for the non-controlling interest of €316,000.
The net assets of the businesses disposed of were as follows:
2026
€'000
Assets
Goodwill and Intangible assets
Property, plant & equipment
Inventories
Biological stock
Trade & other receivables
Cash & cash equivalents
Investment Property
Total assets
Liabilities
Trade and other payables
Loans and borrowings
Bank Overdraft
Deferred Tax liabilities
Capital Grants
Current Tax
Total liabilities
Total enterprise value
628
3,660
1,246
1,804
4,615
1,336
435
13,724
(3,276)
(958)
(1,065)
(145)
(140)
(233)
(5,817)
7,907
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