TIDMOGN
RNS Number : 1025R
Origin Enterprises Plc
04 March 2021
Origin Enterprises plc
INTERIM RESULTS STATEMENT
Improved operating profit and strong working capital performance
in seasonally quieter first half
4 March 2021
Origin Enterprises plc ('Origin' or 'the Group'), the
international Agri-Services group, providing specialist agronomy
advice, crop inputs and digital agricultural solutions to farmers,
growers and amenity professionals, today announces its interim
results for the half year ended 31 January 2021.
Financial and Operational Highlights
-- Group revenue decreased by 5.4% to EUR572.4 million.
Excluding adverse foreign currency translation impacts, revenue was
broadly consistent with H1 2020
-- Operating profit of EUR1.2 million in the first half of the year (H1 2020: loss of EUR2.8m)
-- Increase in underlying(1) operating profit of EUR5.7 million,
driven by improved performance in Ireland and the UK, due to a
return to more normalised autumn and winter crop plantings
-- Continental Europe and Latin America divisions performed in
line with expectations, with adverse foreign currency translation
impacting Latin America's contribution
-- Investment in second CRF manufacturing plant in Brazil near completion
-- Adjusted diluted loss per share of 1.53 cent (H1 2020:
adjusted diluted loss per share of 4.53 cent)
-- Strong working capital performance across all business units,
delivering a reduction of EUR88.0 million
-- Decrease in net bank debt(5) by EUR105.9 million to EUR158.3
million delivered Net Debt/EBITDA ratio improvement from 3.24x to
2.76x
-- TJ Kelly joined the Group as Chief Financial Officer on 18 January 2021
-- Continued progress on the Group's sustainability agenda;
improved ESG rating and became a signatory of the United Nations
Global Compact
-- Interim dividend of 3.15 cent per share (H1 2020: 3.15 cent per share)
Results Summary Constant
31 Jan 2021 31 Jan 2020 Change Currency
EUR'000 EUR'000 EUR'000 EUR'000
Group revenue 572,410 604,908 (32,498) (530)
Operating profit/(loss)(2) 1,220 (2,789) 4,009 5,716
Associates and joint venture(3) 785 1,137 (352) (326)
Total Group operating profit/(loss)(2) 2,005 (1,652) 3,657 5,390
Finance cost, net (4,549) (5,532) 983 868
Loss before tax(2) (2,544) (7,184) 4,640 6,258
Adjusted diluted loss per
share (cent)(4) (1.53) (4.53) 3.00 4.08
Group net bank debt(5) 158,339 264,241 (105,902)
Interim dividend per ordinary
share (cent) 3.15 3.15 -
(1) Excluding currency movements and the impact of
acquisitions
(2) Before amortisation of non-ERP intangible assets and
exceptional items
(3) Profit after interest and tax
(4) Before amortisation of non-ERP intangible assets, net of
related deferred tax (2021: EUR3.4 million, 2020: EUR3.9 million)
and exceptional items, net of tax (2021: charge of EUR0.4 million,
2020: gain of EUR0.3 million)
(5) Net bank debt excludes IFRS16 Lease liabilities
Origin Enterprises plc
Commenting on the results, Origin Chief Executive Officer, Sean
Coyle said:
"While continuing to navigate the challenges caused by COVID-19,
weaker currencies in certain of the Group's geographies, and
Brexit, the Group delivered an improved performance in the first
half of the year. Operating profit of EUR1.2 million in the period
compared favourably to a loss of EUR2.8 million in H1 2020. This
was largely as a result of a more normalised cropping profile
across the Group, set against last year's highly unseasonal and
prolonged weather conditions which materially impacted business
performance in H1 2020.
Group revenue was EUR572.4 million for the first half, a decline
of 5.4% on a reported basis, but in line with the corresponding
period last year on a constant currency basis. Revenue performance
reflects underlying volume growth of 2.0%, driven primarily by
fertiliser tonnes, offset by pricing declines of 2.1%. Fertiliser
prices were lower than last year for most of H1 2020 but increased
towards the end of the period, while pricing of other crop inputs
remained stable or increased in the period.
The Group delivered a strong working capital performance across
all business units, with a significant reduction in working capital
and net bank debt, driven by enhanced management of our inventory
levels, debt recovery, and the one-off benefit of COVID-19 related
UK VAT deferrals. Our improved balance sheet allows us to resume
dividend payments, and pursue further M&A activity, in the
second half of the year.
Despite the unprecedented disruption experienced during the
period as a result of COVID-19, our businesses continued to operate
effectively, while meeting the needs of the agricultural
communities we serve. The uncertainty created by the pandemic
continues and in this challenging environment for everyone, the
Group's priority remains keeping our employees safe and well.
Thanks to the collective efforts of all of our people we continue
to serve our customers and deliver solid profitability and strong
operating cash flow.
During the first half we advanced our sustainability agenda with
an improved Sustainalytics rating and CDP awarded us a positive
first-time climate score. We also became a signatory of the United
Nations Global Compact and committed to making its core principles
an integral part of our strategy, culture and day-to-day
operations.
During the period we welcomed TJ Kelly, the Group's new Chief
Financial Officer. TJ joined the Group in January and I would like
to wish him every success in his role. I would also like to thank
Declan Giblin for his valued contribution as a Board member, as he
steps down from the Board at the end of the financial year to focus
primarily on the growth and development of our LATAM platform.
While our H1 2021 performance sets a positive foundation for the
full year, with an encouraging cropping profile across our
geographies, continued wet and cold conditions in the UK and
Ireland have meant that our expectation of 1.7 million hectares for
the total winter wheat planted area in the UK is now lower than the
1.8 million hectares anticipated at our Q1 trading update, and may
delay the spring application period. That, together with the
renewed COVID-19 restrictions across all of our geographies, means
that trading uncertainties remain heading into the seasonally more
significant second half.
The Group is well placed to deliver good growth in earnings for
the full year, and consistent with prior years, we will provide an
update on full year guidance at the time of the Q3 Trading Update
on 16 June 2021."
S
Conference Call
Origin will host a live conference call and webcast, for
analysts and institutional investors today, 4 March 2021, at 08:30
(Irish/UK time). Dial-in details are set out below for the
conference call and the webcast can be accessed on the Group
website: www.originenterprises.com . Participants are requested to
dial in 5 to 10 minutes prior to the scheduled start time.
Participant access numbers:
Ireland: Tel: +353 (0)1 506 0650
UK/International: Tel: +44 (0)844 481
9752
Confirmation Code: 7399082
Replay
A replay of this call will be available for seven days.
Replay Access Code: 7399082
Replay Access Numbers:
Dublin: Tel: +353 (0)1 553 8777
UK/International: Tel: +44 (0)844 571
8951
Enquiries
Origin Enterprises plc
TJ Kelly
Chief Financial Officer Tel: +353 (0)1 563 4959
Brendan Corcoran
Head of Investor Relations and Group
Planning Tel: +353 (0)1 563 4900
Goodbody (Euronext Growth (Dublin)
Adviser)
Finbarr Griffin Tel: +353 (0)1 641 9278
Davy (Nominated Adviser)
Anthony Farrell Tel: +353 (0)1 614 9993
Numis Securities (Stockbroker)
+44 (0)20 7260
Stuart Skinner Tel: 1314
FTI Consulting (Financial Communications
Advisers)
Jonathan Neilan / Patrick Berkery Tel: +353 (0)1 765 0884
About Origin Enterprises plc
Origin Enterprises plc is a focused Agri-Services group
providing specialist on-farm agronomy services, digital
agricultural services and the supply of crop technologies and
inputs. The Group has leading market positions in Ireland, the
United Kingdom, Belgium, Brazil, Poland, Romania and Ukraine.
Origin is listed on the Euronext Growth (Dublin) and AIM markets of
the Irish and London Stock Exchanges.
Euronext Growth (Dublin) ticker symbol: OIZ
AIM ticker symbol: OGN
Website: www.originenterprises.com
INTERIM RESULTS STATEMENT
Financial Review - Summary
6 months ended 6 months ended
31 Jan 2021 31 Jan 2020
EUR'000 EUR'000
Group revenue 572,410 604,908
Operating profit/(loss)(1) 1,220 (2,789)
Associates and joint venture, net(2) 785 1,137
Adjusted Group operating profit/(loss)(1) 2,005 (1,652)
Finance cost, net (4,549) (5,532)
Pre-tax loss (2,544) (7,184)
Income tax credit 621 1,499
Adjusted net loss (1,923) (5,685)
Adjusted diluted loss per share (cent)(3) (1.53) (4.53)
Adjusted net profit reconciliation
Reported net loss (5,752) (9,365)
Amortisation of non-ERP intangible assets 4,023 4,797
Tax on amortisation of non-ERP related
intangible assets (631) (857)
Exceptional items, net of tax 437 (260)
Adjusted net loss (1,923) (5,685)
Adjusted diluted loss per share (cent)(3) (1.53) (4.53)
Origin delivered an adjusted diluted loss per share(3) in H1
2021 of 1.53 cent compared to an adjusted diluted loss per share of
4.53 cent in H1 2020. On a like-for-like basis (excluding the
impact of currency movements and acquisitions/disposals) the
underlying increase was 4.27 cent.
Group revenue
Group revenue was EUR572.4 million in H1 2021 compared to
EUR604.9 million in the corresponding period last year, a reduction
of 5.4%. On an underlying basis at constant currency, revenues
decreased by EUR0.5 million (0.1%).
The underlying increase in agronomy services and crop input
volumes, excluding crop marketing, was 6.8% in H1 2021 compared to
H1 2020 (and 2.0% including crop marketing).
Operating profit/(loss)(1)
Operating profit(1) in H1 2021 was EUR1.2 million compared to a
loss of EUR2.8 million in H1 2020. On an underlying basis at
constant currency, the increase year-on-year was EUR5.7
million.
Associates and joint venture(2)
Origin's share of the profit after interest and taxation from
associates and joint ventu re amounted to EUR0.8 million, a EUR0.3
million decrease on the prior year, principally due to the disposal
of the Group's interest in Ferrari Zagatto.
Net bank debt and financing costs
Net bank debt(5) at 31 January 2021 was EUR158.3 million
compared with EUR264.2 million at 31 January 2020, and is 2.76
times EBITDA(4) for the twelve months to 31 January 2021. The
period end net bank debt reduction is principally attributable to a
continued focus on working capital efficiencies across the Group.
Net finance costs amounted to EUR4.5 million compared to EUR5.5
million in the corresponding period last year. The reduction in net
finance costs of EUR1.0 million in the period reflected reduced
levels of net bank debt across the period including in higher
interest geographies like Ukraine.
At period end our key banking covenants are as follows:
Banking Covenant H1 2021 H1 2020 FY 20
Times Times Times
Net debt to EBITDA Maximum 3.5 2.76 3.24 1.18
EBITDA to net interest Minimum 3.0 6.75 7.57 5.76
Working capital
Following the seasonal investment in working capital in the
period, the net cash outflow from operating activities was EUR94.3
million (H1 2020: EUR141.2 million) and there was a decrease in
working capital at period end to EUR101.2 million (H1 2020:
EUR189.2 million). The year-on-year net working capital reduction
includes a more normalised working capital profile in the UK which
was elevated in FY 20 due to higher inventory levels in advance of
the possible hard Brexit on 31 October 2019. It also reflects a
continued focus on working capital efficiencies across the Group,
improved debtor recovery and enhanced inventory planning and
management protocols in Continental Europe together with the
positive impact of COVID-19 VAT deferrals in the UK, amounting to
EUR13.9 million, the benefit of which will flow out over the coming
twelve months.
Dividend
Due to the market challenges and uncertainty caused by COVID-19,
the Board determined that it was prudent to suspend the final
dividend for FY 20. We are pleased to announce that an interim
dividend of 3.15 cent per share will be paid on 30 April 2021 to
shareholders on the register on 9 April 2021.
Executive and Non-Executive Director changes
On 18 January 2021, TJ Kelly joined Origin as Group Chief
Financial Officer. TJ was also appointed as a Director of the
Company at that time.
Declan Giblin, our CEO LATAM, has informed the Board of his
intention to retire in the next two years, and has decided he will
step down from the Board at the end of FY 21, to focus primarily on
the continued growth and development of our LATAM platform. Declan
joined the Board of Origin following the acquisition of Masstock in
2007, and has been instrumental in the growth of the Group in the
subsequent 14 years. He initially led the creation of the Agrii
group in the UK and subsequently led the diversification of the
Group internationally with further acquisitions in the UK, Europe
and LATAM.
In October the Group also announced the appointment of Ms Helen
Kirkpatrick to the Board as an independent Non-Executive
Director.
COVID-19
COVID-19 and its impact in the markets in which the Group
operates continues to be a significant area of focus for the Board
and senior management teams. The Group actively monitors the advice
and guidance of governments and health authorities across our
markets, with ongoing audits at all our operating facilities to
ensure we adhere to safe social distancing and all other health and
safety guidance.
The Group continues to monitor developments closely across our
locations and is taking appropriate actions to ensure we provide
the safest environment we can for our stakeholders, while
continuing to serve the needs of the agricultural community in a
responsible manner. The Group will repay the GBP0.2 million of
furlough support payments claimed by our Amenity business in the
period.
Brexit
Following the conclusion of the trade deal between the European
Union and the United Kingdom, the Brexit transition period
officially concluded on 31 December 2020. The Group had taken all
appropriate steps to ensure we were adequately prepared in the
event of a no deal scenario. All appropriate protocols are
currently being adhered to and the Group is monitoring all advice
and guidance issued by the European Union and the United Kingdom
authorities to ensure our supply chain continues to operate
effectively and our customers are served in an efficient and
effective manner.
Origin currently utilises the UK-based CREST settlement system
for electronic trades made in the Company's ordinary shares. As a
consequence of Brexit it will no longer be possible for Irish
public companies to use the CREST system after 30 June 2021. In
common with all other affected Irish incorporated and traded PLCs,
the Company will have to migrate settlement to another system based
within the EU, through Euroclear Bank in Belgium. Origin held an
Extraordinary General Meeting on 28 January 2021 where all three
resolutions required to enable the migration to the Euroclear Bank
settlement system were approved. It is expected that the migration
will take place in mid-March 2021.
(1) Operating profit/(loss) and Group operating profit/(loss)
are stated before amortisation of non-ERP intangible assets and
exceptional items
(2) Profit after interest and tax
(3) Before amortisation of non-ERP intangible assets, net of
related deferred tax (2021: EUR3.4 million, 2020: EUR3.9 million)
and exceptional items, net of tax (2021: charge of EUR0.4 million,
2020: gain of EUR0.3 million)
(4) Net debt/EBITDA ratio as per the requirements of the Group's
syndicated bank loan agreement
(5) Net bank debt excludes IFRS16 Lease liabilities
Review of Operations
Group Overview
Change on prior period
Constant
H1 2021 H1 2020 Change Underlying(4) Currency(5)
EUR'm EUR'm EUR'm EUR'm EUR'm
----------------------------- --------- --------- -------- ----------------------------- ------------
Revenue 572.4 604.9 (32.5) (0.5) (0.5)
Operating profit /
(loss)(1) 1.2 (2.8) 4.0 5.7 5.7
Associates and joint
venture(2) 0.8 1.1 (0.3) (0.1) (0.3)
Adjusted diluted EPS
(cent)(3) (1.53) (4.53) 3.00 4.27 4.08
(1) Before amortisation of non-ERP intangible assets and exceptional
items
(2) Profit after interest and tax
(3) Before amortisation of non-ERP intangible assets, net of
related deferred tax (2021: EUR3.4 million, 2020: EUR3.9 million)
and exceptional items, net of tax (2021: charge of EUR0.4 million,
2020: gain of EUR0.3 million)
(4) Excluding currency movements and the impact of acquisitions/disposals
(5) Excluding currency movements
----------------------------------------------------------------------------------------------------------
Origin delivered an improved financial performance in the first
half of the year compared to a challenging H1 2020 which was
impacted by extreme, mainly weather related, operating conditions
for farmers and growers in Ireland and the UK. This resulted in an
increase in operating profit and adjusted fully diluted loss per
share to EUR1.2 million and 1.53 cent, respectively. While Group
revenue reduced by 5.4% to EUR572.4 million on a reported basis,
when negative currency impacts are excluded, revenue was broadly
flat compared to H1 2020. The improved performance was supported by
a positive cropping profile across the Group with planting
returning to more normalised levels compared with FY 20.
Ireland and the United Kingdom
Change on prior period
Constant
H1 2021 H1 2020 Change Underlying(3) Currency(4)
EUR'm EUR'm EUR'm EUR'm EUR'm
------------------------------- --------- --------- -------- ------------------------------- ------------
Revenue 344.5 337.4 7.1 17.6 17.6
Operating loss(1) (2.7) (9.1) 6.4 6.1 6.1
Associates and joint
venture(2) 0.8 0.9 (0.1) (0.1) (0.1)
(1) Before amortisation of non-ERP intangible assets and exceptional items
(2) Profit after interest and tax
(3) Excluding currency movements and the impact of acquisitions
(4) Excluding currency movements
--------------------------------------------------------------------------------------------------------------
Ireland and the United Kingdom recorded increased revenues and
overall contribution in an improved performance in the seasonally
quiet first half.
The increase in revenues and performance in the period largely
reflected more normalised activity levels and a positive cropping
profile set against prolonged unseasonal weather conditions in H1
2020. On an underlying basis, at constant currency, there was a
EUR6.1 million reduction in operating loss. The increase in
underlying business volumes was 10.1%, primarily driven by
fertiliser and feed ingredient volumes.
Integrated On-Farm Agronomy Services
Integrated Agronomy and On-Farm Services recorded lower revenues
in the period, however an increased contribution was delivered
against the comparable period in H1 2020. The reduction in crop
input volumes was primarily driven by a delayed harvest which
impacted oil seed rape plantings, which were back 6.0% on H1 2020,
and the impact of carried-over stock on-farm. Set against a
challenging comparable period, farm sentiment has improved in H1
2021 with a more normalised cropping profile across the UK
resulting in increased profitability.
Total autumn and winter plantings for principal crops are
estimated to be 49.9%, or 0.8 million hectares, ahead of last year
at 2.5 million hectares. The area of winter wheat is estimated to
be up 68.1% to 1.7 million hectares (1.0 million hectares in FY
20), lower than the area expected at the time of our Q1 trading
update (1.8 million hectares). As a result of the increased area of
winter crops, the area of spring cropping in H1 2021 is expected to
be back 9.1% on H1 2020, where an element of the winter shortfall
was transferred to spring.
Total autumn, winter and spring plantings for the 2021 growing
season are forecast to be 10.4% ahead of last year, at 4.4 million
hectares. Although farm sentiment has improved with this more
normalised cropping profile, farmers are facing challenges across
the UK with prolonged cold and wet weather, which may delay the
start of in-field operations for the second half of the year.
Digital Agricultural Services
Digital Agricultural Services has maintained the positive
momentum of FY 20, with over 1.4 million active hectares on-boarded
to the Group's digital platform by the end of H1 2021, compared to
1.2 million hectares at end of H1 2020. As we continue to embed our
digital decision support services across the Group's established
routes-to-market, enhancement of functionality remains a key
priority which is being rolled out to farmers ahead of the main
spring input application period in 2021.
Business-to-Business Agri-Inputs
Our Business-to-Business Agri-Inputs division had an improved
start to the financial year, recording higher volumes and operating
profit.
Fertiliser
With more positive on-farm sentiment, volumes in the period
increased, resulting in an improved contribution compared to H1
2020. The more normalised autumn and winter cropping profile across
the UK provides a solid foundation for an improved outlook for the
remainder of the year.
Focus continues to be given to the Group's speciality and
bespoke nutrition ranges, which maintained the positive momentum
achieved to date.
Amenity
The Group's Amenity business delivered an improved performance
in the period, benefitting from the easing of COVID-19 restrictions
in the first quarter, and the recovery of some of the volume lost
in the second half of FY 20 as a result of the pandemic. This
positive momentum will be impacted by the extent to which COVID-19
restrictions, which were reintroduced across the UK in the second
quarter, persist into the spring, impacting the key selling
period.
Feed Ingredients
Feed Ingredients achieved a satisfactory performance in H1 2021,
recording higher volumes compared to H1 2020. During the period,
operations were temporarily impacted by a fire in the facility of
our animal feed business, R&H Hall, at the Port of Cork,
Ireland. Given the insurance cover in place, the financial impact
from the fire is expected to be minimal. For the second half of the
year volumes are expected to be lower, due to logistical challenges
arising from commodity supply side constraints.
The Group's animal feed manufacturing associate, John Thompson
& Sons Limited, in which the Group has a 50% shareholding,
delivered a satisfactory performance in the period.
Continental Europe(1)
Change on prior period
Constant
H1 2021 H1 2020 Change Underlying(3) Currency(4)
EUR'm EUR'm EUR'm EUR'm EUR'm
-------------------------------- -------------- --------- -------- ----------------------- ------------
Revenue 122.4 142.1 (19.7) (11.1) (11.1)
Operating profit(2) 0.1 0.7 (0.6) (0.7) (0.7)
(1) Excluding crop marketing. While crop marketing has a significant
impact on revenue, its impact on operating profit is insignificant.
An analysis of revenue and profit attributable to agronomy services
and inputs more accurately reflects the underlying drivers of
business performance
(2) Before amortisation of non-ERP intangible assets and exceptional
items
(3) Excluding currency movements and the impact of acquisitions
(4) Excluding currency movements
------------------------------------------------------------------------------------------------------------
Continental Europe recorded a EUR0.7 million decrease in
underlying operating profit at constant currency in the seasonally
quieter first half. Underlying business volumes reduced by 5.7% in
H1 2021, compared to H1 2020, with a solid start to the year in
Poland set against a slower start in Romania and Ukraine. The
overall winter and spring cropping area across our CE markets is
expected to be marginally ahead of last year.
Belgium
Belgium achieved a satisfactory performance in the period
delivering an increase in underlying business volumes. Performance
is set against a challenging comparative period last year where
demand was impacted by wet in-field conditions and an uncertain
pricing environment for fertiliser raw materials.
Poland
Poland delivered an improved overall contribution while
recording lower underlying business volumes in the seasonally quiet
first half supported by a favourable business mix.
A late harvest and wet in-field conditions resulted in some
delays to in-field operations. Autumn and winter plantings are
estimated to be marginally behind last year at 4.6 million hectares
with an increase in winter barley offsetting a 1.6% reduction in
the oil seed rape area. The shortfall in autumn and winter
plantings are expected to largely transfer to spring, with the
total cropping area for the 2021 growing season expected to be 0.9%
behind the prior year at 8.1 million hectares.
Romania
Romania has had a slow start to the year, recording lower
underlying business volumes and a reduced contribution in H1 2021.
This reflected the impact of dry conditions early in the period
which resulted in some delays to in-field operations. In the second
quarter, most of the cropped area received sufficient rainfall to
allow soil moisture levels to return to more normalised levels.
The total sown area for autumn and winter plantings is forecast
to be 1.7% behind last year at 3.0 million hectares. Combined
winter and spring plantings for the growing season are currently
anticipated to be 1.1% behind last year at 8.3 million
hectares.
Mild weather conditions at the end of the period allowed late
sown crops to develop in good condition.
Ukraine
Ukraine recorded a satisfactory result in the period in line
with expectations. There was a reduction in volumes and overall
contribution driven by prolonged dry conditions early in the
period, followed by subsequent wetter in-field conditions which
curtailed planting activities. Overall crop establishment in the
period is satisfactory, with sufficient snow cover in place to
limit crop damage.
Total autumn and winter plantings are anticipated to be
marginally behind last year at 8.1 million hectares, with combined
autumn and spring plantings currently forecast to be 1.9% ahead of
last year at 24.2 million hectares.
Latin America
Change on prior period
Constant
H1 2021 H1 2020 Change Underlying(3) Currency(4)
EUR'm EUR'm EUR'm EUR'm EUR'm
---------------------------------------- --------- --------- -------- ----------------- -------------
Revenue 21.6 21.9 (0.3) 8.7 8.7
Operating profit(1) 3.9 5.7 (1.8) 0.3 0.3
Associate(2) - 0.2 (0.2) - (0.2)
(1) Before amortisation of non-ERP intangible
assets and exceptional items
(2) Profit after interest and tax
(3) Excluding currency movements and the
impact of acquisitions/disposals
(4) Excluding currency movements
-------------------------------------------------------------- -------------------- ----- -------------
Latin America achieved higher underlying revenues and operating
profits in the seasonally significant first half. Underlying
business volumes grew by 37.8% compared with the corresponding
period last year. This performance was driven by a significant
increase in controlled release fertiliser sales in H1 2021,
together with a 3.5% increase to 38.3 million hectares in the total
cropping area dedicated to soya, Brazil's principal crop. The
cropping area dedicated to Brazil's secondary crop, maize is also
expected to increase in the current year by 2.3% to 13.2 million
hectares.
The impact of foreign currency translation has significantly
impacted Latin America's contribution in the period and although
reported operating profit has reduced by EUR1.8m (31.6%),
underlying profit at constant currency has increased by EUR0.3m
(6.2%) in H1 2021.
Fortgreen have almost completed the construction of a new
controlled release fertiliser plant in Minas Gerais and it is
expected to become operational in the second half of the financial
year.
Outlook
Origin's H1 2021 performance sets a positive foundation for the
full year, based on the encouraging cropping profile across our
geographies. Uncertainties remain heading into the seasonally more
important second half, including the impact of ongoing COVID-19
restrictions, a slightly reduced area for winter cropping in the
UK, and persistent cold and damp conditions in the UK and Ireland,
which may delay the spring application period.
The Group is well placed to deliver good growth in earnings for
the full year and will provide a further update on the expected FY
21 outcome at the time of the Q3 Trading Update on 16 June
2021.
S
Origin Enterprises plc
Condensed Interim Consolidated Income Statement
for the six months ended 31 January 2021
Six months Six months Six months Six months Year
ended ended ended ended ended
January January January January July
2021 2021 2021 2020 2020
Pre-exceptional Exceptional Total Total Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Notes Note 7 Note 7
Revenue 5 572,410 - 572,410 604,908 1,589,142
Cost of sales (495,559) - (495,559) (527,580) (1,359,547)
Gross profit 76,851 - 76,851 77,328 229,595
Operating costs (79,654) (525) (80,179) (84,654) (201,382)
Share of profit of associates and
joint venture 785 - 785 1,137 6,154
Operating (loss)/profit 5 (2,018) (525) (2,543) (6,189) 34,367
Finance income 511 - 511 622 954
Finance expense (5,060) - (5,060) (6,154) (12,204)
(Loss)/profit before income
tax (6,567) (525) (7,092) (11,721) 23,117
Income tax credit/(expense) 1,252 88 1,340 2,356 (3,258)
(Loss)/profit attributable to equity
shareholders (5,315) (437) (5,752) (9,365) 19,859
Six months Six months Year
ended ended ended
January January July
2021 2020 2020
Basic (loss)/earnings per
share 6 (4.58c) (7.46c) 15.81c
Diluted (loss)/earnings per
share 6 (4.58c) (7.46c) 15.53c
Origin Enterprises plc
Condensed Interim Consolidated Statement of Comprehensive
Income
for the six months ended 31 January 2021
Six months Six months Year
ended ended ended
January January July
2021 2020 2020
EUR'000 EUR'000 EUR'000
(Loss)/profit for the period (5,752) (9,365) 19,859
Other comprehensive (expense)/income
Items that are not reclassified subsequently to the Group income
statement:
Group/Associate defined benefit pension obligations
- remeasurements of Group's defined benefit pension schemes 3,294 (703) 553
- deferred tax effect of remeasurements (569) 120 (70)
- share of remeasurements on associate's defined benefit pension schemes - - (1,001)
- share of deferred tax effect of remeasurements - associates - - 190
Items that may be reclassified subsequently to the Group income
statement:
Group foreign exchange translation details
- exchange difference on translation of foreign operations (1,772) 6,653 (17,350)
Group/Associate cash flow hedges
* effective portion of changes in fair value of cash
flow hedges (1,403) (977) (1,976)
* fair value of cash flow hedges transferred to
operating costs 1,904 87 (58)
- deferred tax effect of cash flow hedges (78) 164 311
* share of associates and joint venture cash flow
hedges (1,632) (3,663) (5,508)
- deferred tax effect of share of associates and joint venture cash flow
hedges 204 458 689
Other comprehensive (expense)/income for the period, net of tax (52) 2,139 (24,220)
Total comprehensive expense for the period attributable to equity
shareholders (5,804) (7,226) (4,361)
============ ============ ==========
Origin Enterprises plc
Condensed Interim Consolidated Statement of Financial
Position
as at 31 January 2021
January January July
2021 2020 2020
Notes EUR'000 EUR'000 EUR'000
ASSETS
Non-current assets
Property, plant and equipment 8 108,760 114,230 109,363
Right of use asset 43,158 43,313 39,824
Investment properties 2,270 4,221 2,270
Goodwill and intangible assets 9 234,492 273,057 235,949
Investments in associates and joint venture 10 36,177 41,194 40,597
Other financial assets 531 620 575
Deferred tax assets 6,198 3,907 6,890
Post employment benefit surplus 3,896 - 403
Total non-current assets 435,482 480,542 435,871
Current assets
Properties held for sale 24,200 24,135 27,100
Inventory 251,059 270,927 188,775
Trade and other receivables 286,042 306,446 406,857
Derivative financial instruments 67 677 1,460
Cash and cash equivalents 12 106,455 63,146 172,309
Total current assets 667,823 665,331 796,501
TOTAL ASSETS 1,103,305 1,145,873 1,232,372
Origin Enterprises plc
Condensed Interim Consolidated Statement of Financial Position
(continued)
as at 31 January 2021
January January July
2021 2020 2020
Notes EUR'000 EUR'000 EUR'000
EQUITY
Called up share capital presented as equity 13 1,264 1,264 1,264
Share premium 160,498 160,498 160,498
Retained earnings and other reserves 144,030 153,034 150,564
--------- --------- ---------
TOTAL EQUITY 305,792 314,796 312,326
LIABILITIES
Non-current liabilities
Interest-bearing borrowings 12 225,835 299,868 205,889
Lease liability 12 34,341 31,584 31,961
Deferred tax liabilities 19,101 22,199 19,785
Put option liability 21,302 27,800 22,073
Provision for liabilities 11 1,532 1,906 1,649
Post employment benefit obligations - 1,369 -
Derivative financial instruments 728 751 1,262
Total non-current liabilities 302,839 385,477 282,619
Current liabilities
Interest-bearing borrowings 12 38,959 27,519 19,633
Lease liability 12 9,911 11,882 8,775
Trade and other payables 435,854 388,146 590,182
Corporation tax payable 7,421 6,540 11,976
Provision for liabilities 11 1,096 10,598 4,393
Derivative financial instruments 1,433 915 2,468
Total current liabilities 494,674 445,600 637,427
TOTAL LIABILITIES 797,513 831,077 920,046
TOTAL EQUITY AND LIABILITIES 1,103,305 1,145,873 1,232,372
Origin Enterprises plc
Condensed Interim Consolidated Statement of Changes in
Equity
for the six months ended 31 January 2021
Share- Foreign
Capital Cashflow based currency
Share Share Treasury redemption hedge Revaluation payment Re-organisation translation Retained
capital premium shares reserve reserve reserve reserve reserve reserve earnings Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
At 1 August
2020 1,264 160,498 (8) 134 (4,710) 12,843 1,131 (196,884) (60,176) 398,234 312,326
Loss for the
period - - - - - - - - - (5,752) (5,752)
Other
comprehensive
expense for
the period - - - - (1,005) - - - (1,772) 2,725 (52)
Share-based
payment
charge - - - - - - 90 - - - 90
Change in fair
value of put
option - - - - - - - - - (820) (820)
At 31 January
2021 1,264 160,498 (8) 134 (5,715) 12,843 1,221 (196,884) (61,948) 394,387 305,792
Origin Enterprises plc
Condensed Interim Consolidated Statement of Changes in
Equity
for the six months ended 31 January 2020
Share- Foreign
Capital Cashflow based currency
Share Share Treasury redemption hedge Revaluation payment Re-organisation translation Retained
capital premium shares reserve reserve reserve reserve reserve reserve earnings Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
At 1 August
2019 1,264 160,498 (8) 134 1,832 12,843 1,537 (196,884) (42,826) 407,449 345,839
Loss for the
period - - - - - - - - - (9,365) (9,365)
Other
comprehensive
expense for
the period - - - - (3,931) - - - 6,653 (583) 2,139
Share-based
payment
charge - - - - - - 90 - - - 90
Change in fair
value of put
option - - - - - - - - - (1,081) (1,081)
Dividend paid
to
shareholders - - - - - - - - - (22,826) (22,826)
At 31 January
2020 1,264 160,498 (8) 134 (2,099) 12,843 1,627 (196,884) (36,173) 373,594 314,796
Origin Enterprises plc
Condensed Interim Consolidated Statement of Cash Flows
for the six months ended 31 January 2021
Six months Six months Year
ended ended ended
January 2021 January 2020 July
2020
EUR'000 EUR'000 EUR'000
Cash flows from operating activities
(Loss)/profit before tax (7,092) (11,721) 23,117
Exceptional items 525 (260) 6,505
Finance income (511) (622) (954)
Finance expense 5,060 6,154 12,204
Profit on disposal of property, plant and equipment (306) (248) (533)
Share of profit of associates and joint venture (785) (1,137) (6,154)
Depreciation of property, plant and equipment 3,958 4,090 8,564
Depreciation of right of use assets 5,253 4,753 10,184
Amortisation of intangible assets 5,111 6,036 12,301
Employee share-based payment charge 90 90 (406)
Pension contributions in excess of service costs (226) (642) (1,007)
Payment of exceptional rationalisation/ pension related costs (962) (449) (726)
Payment of exceptional acquisition costs - (1,057) (1,439)
Operating cash flow before changes in working capital 10,115 4,987 61,656
(Increase)/decrease in inventory (61,722) (57,251) 6,622
Decrease in trade and other receivables 119,208 239,349 104,366
Decrease in trade and other payables (156,117) (320,499) (80,663)
Cash (absorbed)/generated from operating activities (88,516) (133,414) 91,981
Interest paid (2,157) (3,639) (8,628)
Income tax paid (3,611) (4,128) (7,947)
Cash (outflow)/inflow from operating activities (94,284) (141,181) 75,406
Origin Enterprises plc
Condensed Interim Consolidated Statement of Cash Flows
(continued)
for the six months ended 31 January 2021
Six months Six months Year
ended ended ended
January 2021 January 2020 July
2020
EUR'000 EUR'000 EUR'000
Cash flows from investing activities
Proceeds from sale of investment property 2,900 - -
Proceeds from disposal of investment in associate - - 904
Proceeds from sale of property, plant and equipment 587 542 991
Purchase of property, plant and equipment (3,512) (7,041) (12,056)
Additions to intangible assets (4,522) (1,792) (3,670)
Payment of contingent acquisition consideration (1,655) (2,341) (7,386)
Loan repayment with associate 56 42 113
Dividends received from associates 4,197 5,682 5,776
Cash outflow from investing activities (1,949) (4,908) (15,328)
Cash flows from financing activities
Drawdown of bank loans 109,841 199,821 250,025
Repayment of bank loans (57,235) (59,603) (209,528)
Lease liability payments (5,982) (5,397) (11,422)
Payment of dividends to equity shareholders (Note 14) - (22,826) (26,780)
Cash inflow from financing activities 46,624 111,995 2,295
Net (decrease)/ increase in cash and cash equivalents (49,609) (34,094) 62,373
Translation adjustment 665 1,979 2,418
Cash and cash equivalents at start of period 152,676 87,885 87,885
Cash and cash equivalents at end of period (Note 12) 103,732 55,770 152,676
Origin Enterprises plc
Notes to the Condensed Interim Consolidated Financial
Statements
for the six months ended 31 January 2021
1 Basis of preparation
The Group condensed interim consolidated financial statements
have been prepared in accordance with International Accounting
Standard 34, Interim Financial Reporting (IAS 34), as endorsed by
the EU. The condensed interim consolidated financial statements
have been prepared as information for the shareholders and do not
include all the information and disclosures required in the annual
financial statements. They should be read in conjunction with the
Group's annual financial statements in respect of the year ended 31
July 2020, which have been prepared in accordance with IFRSs. The
financial statements for the year ended 31 July 2020 are available
on the company's website www.originenterprises.com . Those
financial statements contained an unqualified audit report.
The Group condensed interim consolidated financial statements
for the six months ended 31 January 2021 and the comparative
figures for the six months ended 31 January 2020 are unaudited and
have not been reviewed by the Auditors. The summary financial
statements for the year ended 31 July 2020 represent an abbreviated
version of the Group's full accounts for that year.
A comprehensive review of the Group's performance for the six
months ended 31 January 2021 is included in the financial
highlights included on pages 5 to 12. The group's business is
seasonal and is heavily weighted towards the second half of the
financial year.
2 Going concern
Having reassessed the principal risks facing the Group, the
Directors believe that the Group is well placed to manage these
risks successfully. No concerns or material uncertainties have been
identified as part of our assessment which also considered the
impact of the COVID-19 pandemic.
The Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the
foreseeable future, a period of not less than twelve months from
the date of this report. The Board considered the profile of the
group's borrowing facilities and the plans in place for
renewal/refinancing of facilities that fall due within the next
twelve months. For this reason, the Directors continue to adopt the
going concern basis of accounting in preparing the condensed
interim consolidated financial statements.
Impact of COVID-19
The Group has considered the impact of COVID-19 with respect to
the judgements and estimates it makes in the application of its
accounting policies. The Group reassessed the carrying value of
goodwill (EUR162.1 million) allocated to the Group's cash
generating units ('CGUs'), which have been updated to take account
of future potential trading scenarios as a result of this pandemic.
No indicators of impairment were identified.
The carrying value of trade receivables were also reviewed for
indicators of impairment. There has been no significant
deterioration in the ageing of trade receivables and there was no
material increase in the impairment losses for trade
receivables.
3 Accounting policies
The Group condensed interim consolidated financial statements
have been prepared on the basis of the accounting policies as set
out on pages 130 to 140 of the Group's Annual Report for the year
ended 31 July 2020.
There are a number of new standards which are also effective
from 1 August 2020. The following amendments, issued by the
International Accounting Standards Board ('IASB') and the
International Financial Reporting Interpretations Committee
('IFRIC'), are effective for the Group for the first time in the
current financial period and where relevant have been adopted by
the Group:
-- Amendments to References to the Conceptual Framework in IFRS Standards;
-- Amendments to IAS 1 'Presentation of Financial Statements'
and IAS 8 'Accounting Policies, Changes in Accounting Estimates and
Errors' Definition of material;
-- Amendments to IFRS 3 'Business Combinations' - Definition of a business;
-- Amendments to IFRS 9 'Financial instruments', IAS 39
'Financial instruments: Recognition and measurement' and IFRS 7
'Financial instruments: Disclosures' - Interest Rate Benchmark
Reform;
-- Amendments to 'IFRS 16 Leases' - COVID-19-related rent concessions
Adoption of the standards above has had no material impact on
the Group condensed interim consolidated financial statements
during
Origin Enterprises plc
Notes to the Condensed Interim Consolidated Financial Statements
(continued)
for the six months ended 31 January 2021
4 Reporting currency
The Group condensed interim consolidated financial statements
are presented in euro (denoted by the symbol 'EUR') and rounded to
the nearest thousand, which is the functional currency of the
parent. Transactions in foreign currencies are translated at the
foreign exchange rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies
at the period end date are translated to functional currency at the
foreign exchange rate ruling at that date. Foreign exchange
differences arising on translation are recognised in the
Consolidated Income Statement.
The principal exchange rates used for translation of results and
balance sheets into euro were as follows:
Average foreign exchange Closing foreign exchange
rate rate
Six months Six months Six months Six months
ended ended Year ended ended Year
ended ended
Jan 2021 Jan 2020 July Jan 2021 Jan 2020 July
2020 2020
EUR EUR1= EUR EUR1= EUR EUR1= EUR EUR1= EUR EUR1= EUR EUR1=
Brazilian Real 6.42944 4.54413 5.09412 6.59468 4.67975 6.12525
British Pound
Sterling 0.90251 0.87305 0.87885 0.88520 0.83950 0.90450
Polish Zloty 4.49292 4.30103 4.37478 4.53460 4.30090 4.40910
Romanian Leu 4.86466 4.75977 4.79315 4.87990 4.77940 4.83310
Ukrainian Hryvnia 33.52279 27.10321 28.28343 33.91050 26.71283 32.88067
5 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') in order to
allocate resources to the segments and to assess their performance.
Three operating segments have been identified: (1) Ireland and the
United Kingdom, (2) Continental Europe and (3) Latin America.
Ireland and the United Kingdom
This segment includes the Group's wholly owned Irish and UK
based Business-to-Business Agri-Inputs operations, Integrated
Agronomy and On-Farm Services operations and Digital Agricultural
Services business. In addition, this segment includes the Group's
Associate and joint venture undertakings.
Continental Europe
This segment includes the Group's Business-to-Business
Agri-Inputs operations, Integrated Agronomy and On-Farm Services
operations in Belgium, Poland, Romania and Ukraine.
Latin America
This segment includes the Group's 65 per cent controlling
interest in the Brazilian based speciality nutrition and crop
inputs business, Fortgreen Commercial Agricola Ltda.
Information regarding the results of each reportable segment is
included below. Performance is measured based on segment operating
profit as included in the internal management reports that are
reviewed by the Group's CODM, being the Origin Executive Directors.
Segment operating profit is used to measure performance, as this
information is the most relevant in evaluating the results of the
Group's segments.
Origin Enterprises plc
Notes to the Condensed Interim Consolidated Financial Statements
(continued)
for the six months ended 31 January 2021
5 Segment information (continued)
Ireland & UK Continental Europe Latin America Total Group
Six Six Six months Six months Six months Six Six Six
months months months months months
ended ended ended ended ended ended ended ended
Jan 2021 Jan 2020 Jan 2021 Jan 2020 Jan 2021 Jan Jan 2021 Jan 2020
2020
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Total revenue 500,211 489,359 206,351 245,659 21,596 31,816 728,158 766,834
Less revenue
from
associates
and joint
venture (155,748) (151,963) - - - (9,963) (155,748) (161,926)
---------- ---------- ------------- ------------- ------------- -------- ---------- ----------
Revenue 344,463 337,396 206,351 245,659 21,596 21,853 572,410 604,908
========== ========== ============= ============= ============= ======== ========== ==========
Segment result (2,688) (9,079) 41 633 3,867 5,657 1,220 (2,789)
Profit from
associates
and joint
venture 785 893 - - - 244 785 1,137
Amortisation
of non-ERP
intangible
assets (2,394) (2,490) (757) (1,072) (872) (1,235) (4,023) (4,797)
---------- ---------- ------------- ------------- ------------- -------- ---------- ----------
Operating
(loss)/profit
before
exceptional
items (4,297) (10,676) (716) (439) 2,995 4,666 (2,018) (6,449)
Exceptional
items (525) (178) - - - 438 (525) 260
---------- ---------- ------------- ------------- ------------- -------- ---------- ----------
Operating
(loss)/profit (4,822) (10,854) (716) (439) 2,995 5,104 (2,543) (6,189)
========== ========== ============= ============= ============= ======== ========== ==========
Segment
earnings
before
financing and
tax (2,543) (6,189)
Finance income 511 622
Finance
expense (5,060) (6,154)
---------- ----------
Reported loss
before tax (7,092) (11,721)
Income tax
credit 1,340 2,356
---------- ----------
Reported loss
after tax (5,752) (9,365)
========== ==========
Origin Enterprises plc
Notes to the Condensed Interim Consolidated Financial Statements
(continued)
for the six months ended 31 January 2021
5 Segment information (continued)
(ii) Segment Ireland & UK Continental Europe Latin America Total
assets Group
Six Six Six months Six months Six months Six Six Six
months months months months months
ended ended ended ended ended ended ended ended
Jan Jan Jan 2021 Jan 2020 Jan 2021 Jan Jan Jan 2020
2021 2020 2020 2021
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Assets excluding
investment
in associates
and joint
venture 528,166 594,305 327,041 335,047 98,670 106,977 953,877 1,036,329
Investment in
associates
and joint
venture
(including other
financial
assets) 36,708 40,530 - - - 1,284 36,708 41,814
------- -------- ------------- ------------- ------------- ------- --------- ---------
Segment assets 564,874 634,835 327,041 335,047 98,670 108,261 990,585 1,078,143
======= ======== ============= ============= ============= ======= ========= =========
Reconciliation to total assets as reported in Condensed Interim Consolidated Statement
of Financial Position
Cash and cash
equivalents 106,455 63,146
Derivative
financial
instruments 67 677
Deferred tax
assets 6,198 3,907
--------- ---------
Total assets as reported in Condensed Interim Consolidated Statement of Financial
Position 1,103,305 1,145,873
========= =========
(iii) Segment Ireland & UK Continental Europe Latin America Total Group
liabilities
Six Six Six months Six months Six months Six Six Six
months months months months months
ended ended ended ended ended ended ended ended
Jan Jan Jan 2021 Jan 2020 Jan 2021 Jan Jan 2021 Jan 2020
2021 2020 2020
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Segment
liabilities 253,816 211,310 170,819 169,307 35,149 49,202 459,784 429,819
======= ======= ============= ============= ============= ======= ========= =========
Reconciliation of total liabilities as reported in Condensed Interim Consolidated
Statement of Financial Position
Interest-bearing
loans and
lease
liabilities 309,046 370,853
Derivative
financial
instruments 2,161 1,666
Current and
deferred tax
liabilities 26,522 28,739
--------- ---------
Total liabilities as reported in Condensed Interim Consolidated Statement of Financial
Position 797,513 831,077
========= =========
Origin Enterprises plc
Notes to the Condensed Interim Consolidated Financial Statements
(continued)
for the six months ended 31 January 2021
6 Loss per share
Basic loss per share
Six months Six months
ended ended
January January
2021 2020
EUR'000 EUR'000
Loss for the financial period attributable to equity shareholders (5,752) (9,365)
========== ==========
'000 '000
Weighted average number of ordinary shares for the period 125,596 125,596
========== ==========
Cent Cent
Basic loss per share (4.58) (7.46)
========== ==========
Diluted loss per share Six months Six months
ended ended
January January
2021 2020
EUR'000 EUR'000
Loss for the financial period attributable to equity shareholders (5,752) (9,365)
========== ==========
'000 '000
Weighted average number of ordinary shares used in basic calculation 125,596 125,596
Potential impact of shares with dilutive effect (1) 1,402 323
Potential impact of SAYE scheme with dilutive effect (1) 1,901 677
---------- ----------
Weighted average number of ordinary shares (diluted) for the period 128,899 126,596
========== ==========
Cent Cent
Diluted loss per share (4.58) (7.46)
========== ==========
(1) The impact from potential shares are anti-dilutive for
earnings per share
Origin Enterprises plc
Notes to the Condensed Interim Consolidated Financial Statements
(continued)
for the six months ended 31 January 2021
6 Loss per share (continued)
Adjusted basic loss per share Six months Six months
ended ended
January January
2021 2020
EUR'000 EUR'000
Loss for the financial period attributable to equity shareholders (5,752) (9,365)
Amortisation of non-ERP related intangible assets 4,023 4,797
Tax on amortisation of non-ERP related intangible assets (631) (857)
Exceptional items, net of tax 437 (260)
---------------------------- ----------
Adjusted basic loss (1,923) (5,685)
============================ ==========
Cent Cent
Adjusted basic loss per share (1.53) (4.53)
Total adjusted basic loss - as above (1,923) (5,685)
Cent Cent
Total adjusted diluted loss per share (1) (1.53) (4.53)
============================ ==========
The calculation of basic adjusted earnings per share is based on
the weighted average number of shares in issue during the period of
125,595,854 (31 January 2020: 125,595,854). The weighted average
number of shares used in the calculation of adjusted diluted
earnings/(loss) per share is 128,898,822 (31 January 2020:
126,596,854).
(1) The impact from potential shares are anti-dilutive for
earnings per share.
Origin Enterprises plc
Notes to the Condensed Interim Consolidated Financial Statements
(continued)
for the six months ended 31 January 2021
7 Condensed Interim Consolidated Income Statements for the six
months ended 31 January 2020 and year ended 31 July 2020
An analysis of the Condensed Interim Consolidated Income
Statement (including exceptional items) for the six months ended 31
January 2020 and year ended 31 July 2020 is set out below.
Six months ended 31 January 2020
Six months Six months Six months
ended ended ended
Jan 2020 Jan 2020 Jan 2020
Pre-Exceptional Exceptional Total
EUR'000 EUR'000 EUR'000
Revenue 604,908 - 604,908
Cost of sales (527,580) - (527,580)
---------------- ------------ ------------
Gross profit 77,328 - 77,328
Operating costs (84,914) 260 (84,654)
Share of profit of associates and joint venture 1,137 - 1,137
---------------- ------------ ------------
Operating loss (6,449) 260 (6,189)
Finance income 622 - 622
Finance expense (6,154) - (6,154)
---------------- ------------ ------------
Loss before income tax (11,981) 260 (11,721)
Income tax credit 2,356 - 2,356
---------------- ------------ ------------
Loss attributable to equity shareholders (9,625) 260 (9,365)
================ ============ ============
Year ended 31 July 2020
Year ended Year ended Year ended
July 2020 July 2020 July 2020
Pre-Exceptional Exceptional Total
EUR'000 EUR'000 EUR'000
Revenue 1,589,142 - 1,589,142
Cost of sales (1,359,547) - (1,359,547)
---------------- ------------ ------------
Gross profit 229,595 - 229,595
Operating costs (194,877) (6,505) (201,382)
Share of profit of associates and joint venture 6,154 - 6,154
---------------- ------------ ------------
Operating profit 40,872 (6,505) 34,367
Finance income 954 - 954
Finance expense (12,204) - (12,204)
---------------- ------------ ------------
Profit before income tax 29,622 (6,505) 23,117
Income tax expense (4,519) 1,261 (3,258)
---------------- ------------ ------------
Profit for the year 25,103 (5,244) 19,859
================ ============ ============
Origin Enterprises plc
Notes to the Condensed Interim Consolidated Financial Statements
(continued)
for the six months ended 31 January 2021
8 Property, plant and equipment
January July
2021 2020
EUR'000 EUR'000
Net book value
At beginning of period 109,363 108,411
Leased asset transfer on IFRS 16 adoption - (1,230)
Additions 3,160 14,055
Disposals (281) (424)
Depreciation charge (3,958) (8,564)
Translation adjustments 476 (2,885)
At end of period 108,760 109,363
9 Goodwill and intangible assets
January July
2021 2020
EUR'000 EUR'000
Net book value
At beginning of period 235,949 271,085
Additions 4,522 3,684
Impairment of goodwill and intangibles - (6,853)
Amortisation of non-ERP intangible assets (4,023) (9,381)
ERP intangible amortisation (1,088) (2,920)
Translation adjustments (868) (19,666)
At end of period 234,492 235,949
Included in the total goodwill and intangible assets above is
goodwill of EUR162,138,000 (July 2020: EUR162,681,000). There have
been no indicators of impairment in the first half of the year
therefore a full assessment of the carrying value of goodwill and
intangibles will be carried out in the second half of the year.
Origin Enterprises plc
Notes to the Condensed Interim Consolidated Financial Statements
(continued)
for the six months ended 31 January 2021
10 Investments in associates and joint venture
January July
2021 2020
EUR'000 EUR'000
At beginning of period 40,597 47,140
Share of profits after tax, before exceptional items 785 6,154
Dividends received (4,197) (5,776)
Disposal of equity investment - (113)
Share of other comprehensive expense (1,428) (5,630)
Disposal of interest in Ferrari Zagatto - (1,308)
Translation adjustments 420 130
At end of period 36,177 40,597
11 Provision for liabilities
The estimate of provisions is a key judgement in the preparation
of the condensed interim consolidated condensed financial
statements.
January July
2021 2020
EUR'000 EUR'000
At beginning of period 6,042 18,618
Provided in period - 144
Paid in period (2,608) (9,750)
Released in period (843) (2,000)
Translation adjustments 37 (970)
At end of period 2,628 6,042
Provisions primarily relate to contingent acquisition
consideration arising on a number of acquisitions completed during
prior years.
Origin Enterprises plc
Notes to the Condensed Interim Consolidated Financial Statements
(continued)
for the six months ended 31 January 2021
12 Analysis of net debt
31 July Non-cash Translation 31 J anuary
2020 Cashflow movements adjustment 2021
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Cash 172,309 (65,977) - 123 106,455
Overdraft (19,633) 16,368 - 542 (2,723)
Cash and cash equivalents 152,676 (49,609) - 665 103,732
Loans (205,889) (52,606) (300) (3,276) (262,071)
Net debt (53,213) (102,215) (300) (2,611) (158,339)
Lease liabilities (40,736) 5,982 (8,779) (719) (44,252)
Net debt including lease liabilities (93,949) (96,233) (9,079) (3,330) (202,591)
The Group has unsecured committed banking facilities of EUR430m,
comprising three loan facilities. There is a revolving loan
facility of EUR300m, which matures June 2024, a term loan facility
of EUR100m which matures May 2022 and a loan facility of EUR30m
which matures September 2021.
The Group adopted IFRS 16 on the transition date of 1 August
2019. As at 31 January 2021, the Group has an outstanding lease
liability of EUR44,252,000 (July 2020: EUR40,736,000) and a
corresponding right-of-use leased asset EUR43,158,000 (July 2020:
EUR39,824,000) has been recognised.
13 Share capital
January July
2021 2020
EUR'000 EUR'000
Authorised
250,000,000 ordinary shares of EUR0.01 each (i) 2,500 2,500
Allotted, called up and fully paid
126,396,184 ordinary shares of EUR0.01 each (i) 1,264 1,264
(i) Ordinary shareholders are entitled to dividends as declared
and each ordinary share carries equal voting rights at meetings of
the Company.
Origin Enterprises plc
Notes to the Condensed Interim Consolidated Financial Statements
(continued)
for the six months ended 31 January 2021
14 Dividends
The Board determined that it was prudent to suspend the final
dividend for the 2020 financial year (2019: 18.17 cent per
share).
An interim dividend of 3.15 cent (2020: 3.15 cent) per ordinary
share will be paid on 30 April 2021 to shareholders on the register
on 9 April 2021. These condensed interim consolidated financial
statements do not reflect this dividend payable.
15 Taxation
The taxation credit for the interim period is an estimate based
on the expected full year effective tax rate on full year
profits.
16 Contingent liabilities
The Group is not aware of any major changes with regard to
contingent liabilities in comparison with the situation as of 31
July 2020.
17 Financial commitments
The Group has a financial commitment of EUR5.2 million
attributable to a strategic partnership with University College
Dublin ('UCD'). The commitment is over a four year period.
18 Related party transactions
Related party transactions occurring in the period were similar
in nature to those described in the 2020 Annual Report.
19 Release of half yearly condensed interim consolidated financial statements
The Group condensed interim consolidated financial information
was approved for release by the Board on 3 March 2021.
20 Distribution of Interim Report
This interim report is available on the Group's website (
www.originenterprises.com ). A printed copy is available to the
public at the Company's registered office.
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END
IR SSIEFDEFSESD
(END) Dow Jones Newswires
March 04, 2021 02:00 ET (07:00 GMT)
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