REG - Essentially Grp PLC - Interim Results
29/09/2023 08:15
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RNS Number : 0681O Essentially Group PLC 29 September 2023
29 September 2023
Essentially Group PLC
("Essentially" or the "Company")
Unaudited Interim Report For The Six Months Ended 30 June 2023
Essentially Group PLC (AQSE: ESSN), announces its interim results for the
Group for the half year ending 30 June 2023.
Period Highlights
· Revenue from operational trading increased by 14% versus H1FY22.
· Our retail footprint has grown by an impressive 53% in this period, showcasing
our consistent and robust natural growth.
· Gross profit margin has increased to 52% (compared to 41% for the year to
31(st) December 2022).
· Commenced supply of healthy snacks to Emirates Palace Mandarin Oriental Hotel,
Marriot Hotel and Resort and the St. Regis, all five-star hotels in the UAE.
· Expanded the coverage of supply of beverages to all leading petrol station
operators (Emarat, ADNOC, EPPCO, ENOC). We expect the benefit of the
additional locations to materialise in the coming months.
· Commenced HPP tolling service for external clients for juice and soup
products.
· The Group has recycled more than 1,083 kilograms of plastic reducing 2,395 kgs
of CO2 with our partner RECAPP by Veolia.
Post Period Highlights
· The Group has entered into a rolling two-year private label contract with the
master UAE franchisor of a global premium F&B brand to produce and supply
11 flavours of juices and wellness shots. The brand has announced plans to
grow its presence in the UAE from 3 to 20 stores.
· In line with theGroup's strategy to transition to more environmentally
friendly packaging solution, the Group has invested in technology to supply
its beverages in biodegradable bottles. The initial investment covers its
250ml bottles with other bottle formats to follow in due course.
Chairman's Interim Report
The 6-month period ended 30th June 2023 was an exciting and significant one
for the Group.
Our High Pressure Processing equipment that was delivered at the end of 2022
had successfully been installed and trials completed during Q1. Over time we
anticipate this resulting in improved gross margins and allow us to conduct
new product research and development more efficiently and thus bringing new
products to the market quicker.
We listed on the Aquis Exchange on 17th March 2023, where I was joined by Raja
Abuljebain, our CEO, to bang the gong at the Exchange on a chilly and quiet
"FRIDAY" in the city of London….
Strong Non-Oil exports growth will keep the UAE's current account surplus in
double digits at least until 2025.
Although there could be a deceleration in Dubai real GDP from 4.2% in 2022 to
3.8% in 2023 through elevated cost of living and high and rising borrowing
costs, that said the sustained recovery of the wholesale and retail sector
along with the robust financial sector performance and investment activities
will keep growth strong by historical standards.
Travel and tourism sector in the UAE is also playing a role in driving
economic growth with increasing passenger numbers at Dubai International
Airport and Al Maktoum International Airport resulting in international
visitors to Dubai exceeding pre-pandemic levels. International visitors to the
UAE are expected to increase 40% in 2023.
Dubai is also hosting COP 28, the climate change conference, between 30th
November to 12th December 2023 and will be part of this anticipated visitor
growth. COP 28 is expected to be the largest to date.
The UAE's population continues to grow, currently at 10.17 million (an
increase of nearly 1% from 2022).
All of these drivers point to a bright year for our industry.
Stuart Lever
Chairman
29 September 2023
The directors of the Company take responsibility for this announcement.
For further information, please contact:
Essentially Group Plc
Raja W Abuljebain, CEO Tel: +97156 6440676
https://essentiallyplc.com
AQSE Exchange Corporate Adviser
Alfred Henry Corporate Finance Ltd
Nick Michaels/Maya Klein Wassink Tel: +44 (0) 20 3772 0021
www.alfredhenry.com (http://www.alfredhenry.com/)
Broker
Clear Capital Markets Ltd
Andrew Blaylock Tel: +44 (0)20 3869 6082
https://clearcapitalmarkets.co.uk
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX-MONTH PERIOD TO 30 JUNE 2023
Group Essentially Juices Manufacturing LLC Essentially Juices Manufacturing LLC
Period ending Period ending Year ending
30 June 2023 30 June 2022 31 Dec 2022
Unaudited £ Unaudited £ Audited £
Revenue 593,164 519,311 1,037,660
Cost of Goods Sold (285,683) (295,377) (610,620)
Gross Profit 307,481 223,934 427,040
Operating Costs (529,850) (270,087) (578,030)
Profit/(Loss) Before Interest & Depreciation (222,369) (46,143) (150,990)
Depreciation (124,264) (93,874) (202,649)
Profit/(Loss) Before Interest (346,633) (140,027) (353,638)
Interest Expense (53,542) (27,781) (81,435)
Net Profit/(Loss) (400,175) (167,808) (435,073)
Pence
Earnings per Share
Basic (0.78)
Diluted (0.78)
£1 = AED4.55
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
Group Essentially Juices Manufacturing LLC
Period ending Year ending
30 June 2023 31 Dec 2022
Unaudited £ Audited £
Assets
Current Assets
Cash & Cash equivalent 89,027 27,654
Trade Receivables 292,382 151,938
Prepayments & Other Receivables 501,585 68,885
Inventory 22,651 22,109
Total Current Assets 905,645 270,586
Non-Current Assets
Property Plant & Equipment 835,598 931,846
Intangible Assets 28 1,287
Right of Use Assets 95,035 147,938
Total Non-Current Assets 930,662 1,081,071
Total Assets 1,836,307 1,351,657
Liabilities & Equity
Current Liabilities
Trade and other Payables 449,213 289,806
Total Current Liabilities 449,213 289,806
Non-Current Liabilities
Loan from Shareholders - 700,000
Lease Liabilities 104,872 157,795
Interest Bearing Loans & Borrowings 759,465 76,923
Provision for End of Service 19,547 19,457
Total Non-Current Liabilities 883,884 954,175
Equity
Share Capital 51,300 66,667
Share Premium 648,700
Capital Contribution 2,116,873 1,915,914
Accumulated Losses (2,313,663) (1,874,905)
Total Equity 503,210 107,676
Total Liabilities & Equity 1,836,307 1,351,657
CONSOLIDATED GROUP CASHFLOW STATEMENT
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2023
Group Essentially Juices Manufacturing LLC
Period ending Year ending
30 June 2023 31 Dec 2022
Unaudited £ Audited £
Cash Flow from Operating activities
(Loss) For the period (400,175) (435,073)
Adjustments For:
Provision for Employees' End of services 5,444 20,291
Depreciation of Property, Plant & Equipment/ Amortization 75,493 111,280
Depreciation for Right of use Asset 48,771 98,625
Finance Cost 87,873 81,435
Broker fee paid in shares 50,000
Operating (loss) before Working Capital Changes (132,595) (123,442)
(Increase)/Decrease in Trade Receivables (18,111) (42,513)
(Increase)/Decrease in Other Receivables (432,699) (12,023)
(Increase)/Decrease in Inventory (542) (5,833)
Increase/(Decrease) in Trade Payables 55,621 100,054
Cash (used in) Operating activities (528,326) (83,757)
Employees' End of Service Payment (4,624) (7,664)
Finance Cost Paid (18,819) (21,612)
Net Cash used in Operating activities (551,769) (113,033)
Cash flow from Investing Activities
Property Plant & Equipment (10,016) (604,396)
-
Net Cash (used in) Investing Activities (10,016) (604,396)
Cash flow from Financing Activities
Loan from Shareholders - 700,000
Net movement in interest bearing loan & Borrowing (17,458) (25,251)
Share Capital 600,000 -
Capital Contribution 47,250 156,423
Lease Payments (57,187) (118,696)
Net Cash Generated from Financing Activities 572,605 712,476
Net (decrease)/Increase in cash & cash equivalent 10,819 (4,953)
Cash & Cash equivalent at the start of period 77,829 32,608
Cash & cash equivalent at the end of period 89,027 27,654
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX-MONTH PERIOD TO 30 JUNE 2023
1 General Information
Essentially Group PLC is a listed public limited company (Aquis: ESSN)
incorporated in the UK and registered in England and Wales (Company Number
14299324). The Company's registered office is at Eastcastle House, 27 - 28
Eastcastle Street, London W1W 8DH.
2 Basis of Preparation
The interim consolidated financial statements of Essentially Group Plc are
unaudited condensed financial statements for the six months ended 30(th) June
2023 (the "Interim Statements"). The Interim Statements do not constitute
statutory financial statements within the meaning of section 434 of the
Companies Act 2006.
A copy of the audited financial statements for the year ended 31(st) December
2022 for Essentially Juices Manufacturing L.L.C, the principal operating
company of the Group is available in which the auditor's opinion on those
financial statements was unqualified and did not draw attention to any matters
by way of an emphasis of matter paragraph. These Interim Statements have been
prepared on the basis of the accounting policies and the accrual basis of
accounting and expected to apply for the financial year to 31(st) December
2023 based on the recognition and measurement principles adopted International
Financial Reporting Standards (IFRS), in accordance with the provisions of the
Companies Act 2006, applicable to companies reporting under IFRS.
The Interim Statements have been prepared under the historical cost
convention. The Group's presentation and functional currency is £ Sterling.
The Interim Statements do not include all of the information required for full
annual financial statements and do not comply with all the disclosures in IAS
34 'Interim Financial Reporting. Accordingly, whilst the Interim Statements
have been prepared in accordance with IFRS, they cannot be construed as being
in full compliance with IFRS. The preparation of financial statements in
conformity with United Kingdom adopted International Financial Reporting
Standards (IFRS) requires the use of certain critical accounting estimates.
It also requires management to exercise its judgement in the process of
applying the Group's accounting policies. The accounting policies adopted are
consistent with those followed in the preparation of the Group's annual
financial statements for the year ended 31st December 2023.
3 Basis of Consolidation
The Interim Statements incorporate the assets and liabilities of Essentially
Group PLC ("Company") as at 30th June 2023 and the result of all subsidiaries
for the period then ended. Essentially Group Plc and its subsidiaries together
are referred to in these financial statements as the "Group".
Subsidiaries are all those entities over which the Company has control.
Subsidiaries are fully consolidated from the date on which control is
transferred to the Company. Intercompany transactions, as well as balances and
unrealized gains stemming from transactions among entities within the Group
are removed. Where required, the accounting policies of subsidiaries have been
adjusted to align with the policies adopted by the Group to maintain
consistency.
The accounting for the acquisition of subsidiaries follows the acquisition
method. A change in ownership interest without losing control, it is treated
as an equity transaction. In this scenario, any variance between the
consideration paid and share for share is directly recorded in the equity
section of Company.
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