REG - Roebuck Food Group - Interim Results
28/09/2022 07:01
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RNS Number : 8923A Roebuck Food Group PLC 28 September 2022
Roebuck Food Group plc
Interim results 2022
Results
Roebuck Food Group plc (AIM: RFG), is pleased to announce its interim results
for the six months ended 30 June 2022.
Financial Highlights
· Sales increased by 14%, from £11m to £12.5m.
· Operating profit from continued operations £0.2m (2021 loss of
£0.2m).
· Net debt of £1m (Dec 21 Net cash £1.4m). This has mainly arisen
after settling £1.5m of liabilities in respect of the sale of the cold
stores.
· Milk production increased 8.4%
· Operating margin at the Sourcing Division increased from 1.2% to 1.9%
· Operating profit from dairy division increased from breakeven to
£0.2m
Divisional Highlights
£'m Sourcing Dairy
Jun-22 Jun-21 % Growth Jun-22 Jun-21 % Growth
£'000 £'000 £'000 £'000
Revenue 11,772 10,479 12.3% 761 508 49
Operating Profit 225 121 85.9% 213 32 (566%)
Operating Margin 1.9% 1.2% 28% 6.3%
Sourcing Division
Sales at our sourcing division increased by 12%, compared with the same period
in 2021, from £10.5m to £11.8m. Operating profit improved from £121,000 to
£225,000.
Our product sourcing division has seen strong half year growth with continuous
development of the protein export business to South Africa and South America.
The sourcing division has also diversified it's product portfolio to also
include Dairy Powders, Ingredients and Plant Based Ingredients.
As part of a strategic alignment with Townview Foods Limited. Foro
International Connections Ltd has been rebranded to Townview Sourcing Ltd in
May 2022.
Dairy Division
Our primary dairy operation, Cantwellscourt Farm Ltd, continues to perform
well. Milk production for half year was up 8.4%, whilst pricing was up 32%
year on year. This was partially offset by input cost inflation, particularly
in feed and fertiliser; our pasture-based system gives us some protection from
rising input prices. Whilst weather was favourable in the first half of the
year, we experienced some drought conditions toward the end of summer which
will have some impact on feed costs and production in the second half.
Overall, we expect a strong performance for the full year, mainly driven by
higher dairy prices but also consistent performance across our main operating
KPIs for production, pasture and animal health.
Our subsidiary, Grass to Milk Company Ltd, had a difficult first half, it
exited the Chinese market due to ongoing lockdowns, supply chain disruptions
and cost inflation. China has proven a difficult market for a majority of
Overseas Dairy Companies over the past 24-months. At this juncture, management
is assessing commercialisation options for A2 protein ingredients in other
export markets, particularly the US, where a shortage of domestic infant
formula has created significant opportunities for overseas brands.
Commercialisation of these market opportunities is likely to take 12-24
months.
Discontinued
Our subsidiary Grass to Milk Company produced and shipped A2-protein liquid
dairy products for the Chinese market which we exited in the first half of
2022 due to ongoing lockdowns, supply chain disruptions and cost inflation. We
have impaired the intangible asset along with costs totalling £1m.
On the 28(th) October 2021, we sold the cold store business, resulting in a
profit on disposal of £40m. Following the sale, we made a capital return to
shareholders of £1.66 per share totaling £49.9m in November 2021. In the
first half of the year we paid £1.5m in discharging liabilities in respect of
the sale of the business.
Strategic Review
Following the successful sale of its Cold Stores business, Roebuck Food Group
PLC (RFG), formerly known as Norish PLC, returned £49.92m to shareholders at
the end of 2021. Your board is conducting a strategic review of the group's
businesses, with a view to maximising shareholder value and / or liquidity in
the company's shares.
Dividend
The board does not recommend the payment of an interim dividend, unchanged
from last year.
Roebuck Food Group Plc
Consolidated income statement
For the six months ended 30 June 2022
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2022 2021 2021
(Unaudited) (Restated) (Restated)
£'000 £'000 £'000
Continuing operations
Revenue 12,533 10,987 24,452
Cost of sales (12,228) (10,947) (24,256)
Gross profit 305 40 196
Other income 133 113 161
Administrative expenses (200) (402) (500)
Fixed asset impairment - - (862)
238 (249) (1,005)
Operating profit/(loss) from continuing operations
Finance income - interest receivable - - -
Finance expenses - lease interest (13) (13) (26)
Finance expenses - interest on bank loans (29) (16) (36)
Profit/(loss) on continuing activities before taxation 196 (278) (1,067)
Income taxes - Corporation tax - - (20)
Income taxes - Deferred tax - - 33
Profit/(loss) for the period attributable to owners of the parent from 196 (278) (1,054)
continuing operations
(Loss)/profit from discontinued activities (1,096) 1,286 39,121
(Loss)/Profit for the period (900) 1,008 38,067
Other comprehensive income 178 (228) (355)
Total comprehensive income for the year (722) 780 37,712
Earnings per share expressed in pence per share:
From continuing operations 0.65p (0.92)p (3.5)p
- basic
- diluted 0.65p (0.92)p (3.5)p
From discontinued operations (3.65)p 4.28p 130.1p
- basic
- diluted (3.65)p 4.28p 130.1p
Roebuck Food Group plc
Financial position
As at 30 June 2022
As at As at As at
30 June 30 June 31 December
2022 2021 2021
(Unaudited) (Restated) (Audited)
£'000 £'000 £'000
ASSETS
Non-current assets
Goodwill 2,338 2,338 2,338
Intangible assets - 1,906 665
Biological assets 928 856 762
Property, plant and equipment 2,188 22,960 2,014
5,454 28,060 5,779
Current assets
Trade and other receivables 4,231 8,494 3,988
Inventories 449 157 97
Cash and cash equivalents 2,255 843 4,543
Assets of disposal group classified as held for sale - 270 -
6,935 9,764 8,628
TOTAL ASSETS 12,389 37,824 14,407
Equity attributable to equity holders of the parent
And non-controlling interest
Share capital 564 5,640 564
Share premium account - 7,321 -
Other reserves (59) (87) (237)
Retained earnings 5,552 6,758 6,452
TOTAL EQUITY 6,057 19,632 6,779
Non-current liabilities
Borrowings 954 5,052 794
Deferred tax 35 1,244 35
989 6,296 829
Current liabilities
Trade and other payables 2,667 6,119 2,579
Current tax liabilities - 450 -
Liabilities held for sale 330 - 1,869
Borrowings 2,346 5,327 2,351
5,343 11,896 6,799
TOTAL EQUITY AND LIABILITIES 12,389 37,824 14,407
Roebuck Food Group plc
Consolidated statement of changes in equity
For the six months ended 30 June 2022
Share Share Other Other Retained
Distributable
capital premium Reserves Reserves earnings Total
£'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2021 5,640 7,321 141 - 5,750 18,852
Profit for the financial year - - - - 1,008 1,008
Foreign exchange gain - - (228) - - (228)
Total comprehensive income for the period - - (228) - 1,008 780
Issue of share capital - - - - - -
Equity dividends paid (recognised directly in equity) - - - - - -
Transactions with owners - - (228) - 1,008 780
At 30 June 2021 5,640 7,321 (87) - 6,758 19,632
Net profit for the financial period - - - - 37,059 37,059
Foreign exchange loss - - (127) - - (127)
Total comprehensive income for the period - - (127) - 37,059 36,932
Issue of share capital - - - - - -
Equity dividends paid - - - - (510) (510)
Capital redemption - - - (12,420) (37,497) (49,917)
Gain on capital redemption - - - - - -
JSOP - - - - 642 642
Reduction in capital (5,076) (7,321) (23) 12,420 - -
Transactions with owners (5,076) (7,321) (23) - (37,365) (49,785)
At 31 December 2021 564 - (237) 6,452 6,779
-
Net profit for the financial period - - - - (900) (900)
Foreign Exchange Gain - - 178 - - 178
Total comprehensive income for the period - - 178 - (900) (722)
Issue of share capital - - - - - -
Equity dividends paid (recognised directly in equity) - - - - - -
Transactions with owners - - 178 - (900) (722)
At 30 June 2022 564 - (59) 5,552 6,057
-
Roebuck Food Group plc
Consolidated cash flow statement
For the six months ended 30 June 2022
Six months Six months Year
Ended ended Ended
30 June 30 June 31 December
2022 2021 2021
(Unaudited) (Restated) (Restated)
£'000 £'000 £'000
Profit/(loss) on continuing activities before taxation 196 (278) (1,067)
Gain on biological assets (133) (113) (161)
Foreign exchange loss/(gain) 54 453 (50)
(Loss)/profit on discontinued activities (1,096) 1,286 (269)
Finance expenses 42 29 62
Bad debt expenses - - 13
Taxation charge - - (5)
Impairment - Intangible Asset 665 - 860
Impairment - property, plant and equipment - - 1,519
Depreciation - property, plant and equipment 84 987 1,699
(188) 2,364 2,601
Changes in working capital:
Increase in inventories (352) (99) (39)
(Increase)/decrease in trade and other receivables (243) (968) 10
Increase in trade and other receivables for disposal - 111 381
Decrease/(increase) in current liabilities held for sale (1,539) - 1,869
Increase/(decrease) in payables 88 (169) (554)
Cash generated from operations (2,234) 1,239 4,268
Taxation refund/(paid) - 22 (205)
Net cash generated from operating activities (2,234) 1,261 4,063
Investing activities
Investment in intangible assets - (685) (986)
Purchase of biological assets (12) (10) (9)
Sale of biological assets 13 8 127
Proceeds on disposal of subsidiary - - 55,160
Costs incurred on disposal of subsidiary - - (3,533)
Cash included in subsidiary disposed - - (72)
Purchase of property, plant and equipment (211) (1,177) (1,840)
Net cash used in investing activities (210) (1,864) 48,847
Financing activities
Dividends paid to shareholders - - (510)
Invoice finance receipts 3 475 1,016
Finance lease capital repayments (10) (623) (1,390)
Finance lease advance 172 258 616
Capital redemption JSOP - - 642
Share capital redemption - - (49,917)
Term loan repayments (9) (214) (374)
Net cash used in financing activities 156 (104) (49,917)
Net (decrease)/increase in cash and cash equivalents (2,288) (707) 2,993
4,543 1,550 1,550
Cash and cash equivalents, at beginning of period
Cash and cash equivalents end of period 2,255 843 4,543
Note: The accounting policies applied throughout the period are consistent
with those applied for the year ended 31 December 2021, as set out in the 2021
Annual Report.
Enquiries:
Roebuck Food Group
Gerard Murphy, Finance Director Telephone: + 44 28 30257760
Davy
Anthony Farrell Telephone: + 353 1 679 6363
Six months Year
ended Ended
30 June 31 December
Note: The accounting policies applied throughout the period are consistent
with those applied for the year ended 31 December 2021, as set out in the 2021
Annual Report.
Enquiries:
Roebuck Food Group
Gerard Murphy, Finance Director Telephone: + 44 28 30257760
Davy
Anthony Farrell Telephone: + 353 1 679 6363
Six months
Year
ended
Ended
30 June
31 December
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