REG - Norish Plc - Interim Results 2021

Roebuck FoodAnnouncement

04/08/2021 07:00

RNS Number : 4650H
  
Norish PLC
  
04 August 2021
  
 

 
Norish plc
Interim Results 2021
Results
 
Norish plc (AIM: NSH), is pleased to announce its interim results for the six months ended 30 June 2021.
 
Financial Highlights
·    Sales increased by 19%, from £15.9m to £18.9m.
·    Operating profit increased by 61%, from £0.94m to £1.51m.
·    Pre-tax profit increased by 73%, from £0.78m to £1.35m.
·    Fully diluted adjusted Eps increased by 74%, from 2.06p to 3.58p.
·    Interest cover stood at 9.9x, at the half year stage.
·    Net debt increased from £8.7m at December 2020 to £9.5m.
 
Divisional Highlights
 




£'m


Cold Store


Sourcing


Dairy




 


Jun-21
£'000


Jun-20
£'000


% Growth


Jun-21
£'000


Jun-20
£'000


% Growth


Jun-21
£'000


Jun-20
£'000


% Growth




Revenue


7,938


7,083


12%


10,479


8,413


25%


508


399


27%




Operating Profit


1,755


1,374


28%


121


101


20%


32


(143)


 




Operating Margin


22.1%


19.4%


 


1.2%


1.2%


 


6.3%


(36%)


 




 
 
Cold Stores
 
Sales in the temperature-controlled division increased 12%, (+7% excluding Blast Freezing), from £7.1m to £7.9m. Costs increased by 8%, with power up 10% and employee costs up 3%.
Operating profits increased by 28% from £1.4m to £1.8m and operating margins improved, from 19.4% to 22.1%. EBITDA increased by 21% from £2.25m to £2.72m in the period under review.
 
At an operational level, pallets inbound were ahead by 9%, on the same period in the prior year while blast freezing volumes were ahead 32% on the same period. Occupancy was largely unchanged at 89% (90% in the first half of 2020). Stock turn improved from 8.2 weeks on average in H1 2020 to 7.6 weeks in H1 2021.
 
Sourcing Division 
 
Sales at our sourcing division increased by 25%, compared with the same period in 2020, from £8.4m to £10.5m. Operating profit improved from £101,000 to £121,000.
 
Our product sourcing division was impacted by Covid-19 and Brexit in the first quarter of 2021. We have seen a strong recovery in the second quarter with the development of a protein export business to South Africa.
 
 
Dairy Division
Our subsidiary, Grass to Milk Company Ltd, continues to make progress; commercialising A2 protein, grass-fed, dairy products. 
 
We are pleased to announce an exciting collaboration with Bright Dairy & Food Co Ltd and New Zealand Focus Group, jointly developing a new ultra-premium, A2-protein, grass-fed, Pure Milk UHT product for China, which will go on sale in the second half of the year. 
 
Our operations team completed the development of a robust supply chain and quality system in the first half of 2021, which will act as a future growth platform; we were recently awarded an AA BRC audit score for Grass to Milk Ltd . Management built out a commercial team on the ground in China and are expanding into high growth retail channels such as Social Commerce, E-Commerce and High-End Retail. 
 
Cantwellscourt Farm Ltd is providing A2 protein milk supply to Grass to Milk Ltd, in the first instance. Cantwellscourt Farm continues to improve operationally across key operating KPI's. Milk production was 18% ahead year on year. Profits improved substantially from a loss of £143,000 in half one 2020, to a profit of £32,000 in the first half of 2021.
 
Outlook
 
We remain optimistic for continued growth in profitability at Norish Cold Stores for the balance of the year. Group occupancy at this juncture (at 85%) is 9% higher than the same time last year.
 
We are happy with the significant progress made with the development of our A2 protein milk supply via Cantwellscourt Farm. Grass to Milk Company will deliver its first sale in the second half of the year.
 
Our protein sourcing division is expected to have a strong second half to the year as markets continue to normalise.
 
Strategic Review
 
We announced in March 2021 that we would carry out a strategic review of our cold store operations. This process continues and we will provide an update in due course.
 
Dividend
 
The board does not recommend the payment of an interim dividend, unchanged from last year. 
 
Net Debt
 
Net debt (post IFRS 16) increased to £9.5m at end June 2021, from £8.7m in December 2020. The increase in net debt reflects additional working capital requirements and ongoing investment. Cash generated from operations amounted to £1.3m. Investment of £1.9m was made in assets, comprising £0.7m in Grass to Milk and £1.2m in equipment at the cold store division.
 
 
 




 
Norish plc


 


 


 


 
 
 
 




Consolidated income statement 


 


 


 


 




For the six months ended 30 June 2021


 


 


 


 




 


 


 


 


 




 


 


Six months


Six months


Year




 


 


ended


ended


ended




 


 


30 June 


30 June 


31 December 




 


 


2021


2020


2020




 


 


(Unaudited)


(Unaudited)


(Audited)




 


 


 


 


 




 


 


£'000


£'000


£'000




 


 


 


 


 




Continuing operations


 


 


 


 




Revenue


 


18,925


15,895


33,361




Cost of sales


 


(17,130)


(14,659)


(30,389)




Gross profit


 


1,795


1,236


2,972




 


 


 


 


 




Other income


 


113


88


182




Administrative expenses


 


(402)


(388)


(865)




 
Operating profit from continuing operations 


 


1,506


936


2,289




 


 


 


 


 




Finance income - interest receivable


 


-


-


1




Finance expenses - lease interest


 


(87)


(94)


(117)




Finance expenses - interest on bank loans


 


(65)


(63)


(196)




Profit on continuing activities before taxation


 


1,354


779


1,977




 


 


 


 


 




Income taxes - Corporation tax


 


(277)


(160)


(224)




Income taxes - Deferred tax


 


-


-


(245)




 


 


 


 


 




Profit for the period attributable to owners of the parent from continuing operations


 


1,077


619


1,508




 


 


 


 


 




Loss from discontinued activities


 


(69)


-


(71)




 


 


 


 


 




Profit for the period


 


1,008


619


1437




 


 


 


 


 




Other comprehensive income


 


(228)


-


162




 


 


 


 


 




Total comprehensive income for the year


 


780


619


1,599




 
Earnings per share expressed in pence per share:


 


 


 


 




From continuing operations 
- basic 


 


3.58p


2.06p


5.02p




- diluted


 


3.58p


2.06p


5.02p




From discontinued operations 
- basic 


 


(0.23)p


0p


(0.24)p




- diluted


 


(0.23)p


0p


(0.24)p




 
 
 


 


 


 


 




 


 


 


 


 




Norish plc


 


 


 


 




Interim balance sheet 


 


 


 


 




As at 30 June 2021


 


 


 


 




 


As at 


As at 


As at 


 




 


30 June 


30 June 


31 December


 




 


2021


2020


2020


 




 


(Unaudited)


(Restated)


(Audited)


 




 


 


 


 


 




 


£'000


£'000


£'000


 




ASSETS


 


 


 


 




Non-current assets


 


 


 


 




Goodwill


2,338


2,338


2,338


 




Intangible assets


1,906


807


1,269


 




Biological assets


856


700


770


 




Property, plant and equipment


22,960


22,592


22,898


 




 


28,060


26,437


27,275


 




Current assets


 


 


 


 




Trade and other receivables


8,494


4,838


7,526


 




Inventories


157


1,025


58


 




Cash and cash equivalents


843


1,501


1,550


 




Assets of disposal group classified as held for sale


270


277


381


 




 


9,764


7,641


9,515


 




 


 


 


 


 




TOTAL ASSETS


37,824


34,078


36,790


 




 


 


 


 


 




Equity attributable to equity holders of the parent
And non-controlling interest


 


 


 


 




Share capital


5,640


5,640


5,640


 




Share premium account


7,321


7,321


7,321


 




Other reserves


(87)


(21)


141


 




Retained earnings


6,758


4,932


5,750


 




TOTAL EQUITY


19,632


17,872


18,852


 




 
Non-current liabilities


 


 


 


 




Borrowings


5,052


5,757


5,514


 




Deferred tax


1,244


1,002


1,244


 




 


6,296


6,759


6,758


 




 


 


 


 


 




Current liabilities


 


 


 


 




Trade and other payables


6,119


5,526


6,288


 




Current tax liabilities


450


442


151


 




Borrowings


5,327


3,479


4,741


 




 


11,896


9,447


11,180


 




 


 


 


 


 




TOTAL EQUITY AND LIABILITIES


37,824


34,078


36,790


 




 


 


 


 


 




 
 
 
 
 
 


 


 


 


 




Norish plc




Consolidated statement of changes in equity
For the six months ended 30 June 2021




 




 


 


 


 


 


 


 


 


 


 




 


Share


Share 


Other


Treasury


Retained 


 


 


 


 




 


capital


premium


Reserves


shares


earnings


Total


 


 


 




 


£'000


£'000


£'000


£'000


£'000


£'000


 


 


 




 


 


 


 


 


 


 


 


 


 




At 1 January 2020


5,640


7,321


(21)


-


4,313


17,253


 


 


 




 


 


 


 


 


 


 


 


 


 




Net profit for the financial period


-


-


-


 


619


619


 


 


 




Total comprehensive income for the period


-


-


-


-


619


619


 


 


 




Issue of share capital


-


-


-


-


-


-


 


 


 




Equity dividends paid (recognised directly in equity)


-


-


-


-


-


-


 


 


 




Transactions with owners


-


-


-


-


619


619


 


 


 




At 30 June 2020


5,640


7,321


(21)


-


4,932


17,872


 


 


 




 


 


 


 


 


 


 


 


 


 




Net profit/(loss) for the financial period


-


-


-


 


818


818


 


 


 




Total comprehensive income for the period


-


-


-


 


818


818


 


 


 




Issue of share capital


-


-


-


-


-


-


 


 


 




Equity dividends paid (recognised directly in equity)


-


-


-


 


-


-


 


 


 




Foreign Exchange gain


-


-


162


-


-


162


 


 


 




Transactions with owners


-


-


162


-


818


980


 


 


 




At 31 December 2020


5,640


7,321


141


 
-


5,750


18,852


 


 


 



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



 




Net profit for the financial period


-


-


-


-


1,008


1,008


 


 




Total comprehensive income for the period


-


-


-


-


1,008


1,008


 


 




Issue of share capital


-


-


-


-


-


-


 


 




Equity dividends paid (recognised directly in equity)


-


-


-


-


-


-


 


 




Foreign Exchange loss


-


-


(228)


-


-


(228)


 


 




Transactions with owners


-


-


(228)


-


1,008


780


 


 




At 30 June 2021


5,640


7,321


(87)


 
-


6,758


19,632


 


 




 
 
 
 
 
 




Norish plc


 


 


 
 




Consolidated cash flow statement


 


 


 




For the six months ended 30 June 2021


 


 


 




 


Six months


Six months


Year




 


Ended


ended


Ended




 


30 June 


30 June 


31 December 




 


2021


2020


2020




 


(Unaudited)


(Restated)


(Restated)




 


£'000


£'000


£'000




Profit on continuing activities before taxation


1,354


779


1,977




Gain on biological assets


(113)


(88)


(182)




Foreign exchange loss/(gain)


205


(51)


(55)




Loss on discontinued activities


(69)


-


(71)




Finance expenses


152


157


316




Finance income


-


-


(1)




Depreciation - property, plant and equipment


987


887


1,789




 


2,516


1,684


3,773




Changes in working capital:


 


 


 




(Increase)/decrease in inventories


(99)


80


1,047




(Increase)/decrease in trade and other receivables


(968)


2,019


(669)




Increase/(decrease) in trade and other receivables for disposal


111


-


(104)




Increase/(decrease) in current liabilities held for sale


-


-


-




Decrease in payables


(169)


(1,038)


(276)




Cash generated from operations


1,391


2,745


3,771




 


 


 


 




Interest paid 


(152)


(157)


(316)




Interest received


-


-


1




Taxation refund/(paid)


22


51


(304)




Net cash from operating activities


1,261


2,639


3,152




 
Investing activities


 


 


 




Investment in intangible assets


(685)


(243)


(705)




Purchase of biological assets


(10)


(5)


(65)




Sale of biological assets


8


268


346




Purchase of property, plant and equipment


(1,177)


(634)


(1,741)




Net cash used in investing activities


(1,864)


(614)


(2,165)




Financing activities


 


 


 




Dividends paid to shareholders


-


-


-




Invoice finance receipts/ (payments)


475


(1,225)


(150)




Finance lease capital repayments


(623)


(405)


(845)




Finance lease advance


258


215


882




Term loan advance


-


-


-




Term loan repayments


(214)


(163)


(378)




Net cash used in financing activities


(104)


(1,578)


(491)




 


 


 


 




Net (decrease)/increase in cash and cash equivalents


(707)


447


496




 
Cash and cash equivalents, at beginning of period


1,550


1,054


1,054




 


 


 


 




Cash and cash equivalents end of period 


843


1,501


1,550




 
Note: The accounting policies applied throughout the period are consistent with those applied for the year ended 31 December 2020, as set out in the 2020 Annual Report.
 
 
 
 
Enquiries:




Norish


 




Aidan Hughes, Finance Director


Telephone: + 44 1293 862 498




 


 




 
Davy


 




Anthony Farrell 


Telephone: + 353 1 679 6363




 

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