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Origin Enterprises (OGN)

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Wednesday 17 September, 2008

Origin Enterprises

Preliminary Results

RNS Number : 6004D
Origin Enterprises Plc
17 September 2008
 
 
 
 
Preliminary Results Announcement
Year Ended 31 July 2008
 
 
Financial Highlights                                                                                                        
                       
 
2008
€’000
2007
€’000
%
increase
 
Group revenue
1,504,242
889,363
69
Group operating profit*
 
 
 
    - Agri-Nutrition
55,012
27,653
99
    - Food
15,914
10,474
52
Total Group operating profit*
70,926
38,127
86
Profit before financing costs*
73,178
41,801
75
Adjusted fully diluted EPS (cent)*
34.05
23.93
42
Comparable adjusted fully diluted EPS (cent)**
    34.05
19.63
74
Net cashflow from operating activities
   74,615
44,903
66
Group net debt
 175,125
71,702
-
                                                                                               
*before intangible amortisation and exceptional items
**2007 adjusted to reflect the current capital structure of the Group
 
Highlights
 
·        Transformational year for Origin with the completion of strategic acquisitions combined with outstanding financial and operating performance.
·        Acquisition of Masstock significantly extends the Group’s business model and provides geographic expansion opportunity.
·        Acquisition of full control of Odlums Group with integration well advanced.
·        Investment in direct farming through the acquisition of a 20% stake in Continental Farmers Group.
·        Submission of planning application for the Group’s catalyst riverfront site in Cork South Docks.
·        Continued strong cashflow generation.
 
 
 
Origin Enterprises plc
 
Chief Executive Officer’s comment:
 
Commenting on the announcement of the 2008 results, Origin Chief Executive Officer, Tom O’Mahony said:
 
“2008 was a transformational year for Origin with an 86 per cent increase in Group operating profit reflecting strong underlying growth momentum across our enlarged Agri-Nutrition business. Masstock, our largest acquisition to-date, is the leading provider of integrated agronomy and farming systems advisory services to arable and grassland farm enterprises. Origin is now ideally positioned at the forefront in the provision of profitable and sustainable solutions directly to primary food producers. We also acquired the balance of Odlums Group and integration within our Food Division is well advanced.
 
During the year substantial progress was made in the development of the Group’s business model and we now have an excellent platform with an enhanced management capability to support further progress. The Group is well positioned for another year of growth in 2009.”
 
 
The Preliminary Results Announcement is available on the company website www.originenterprises.com. The institutional presentation will be posted on the website during the day.
 
ENDS
 
Enquiries:
 
Origin Enterprises plc
Brendan Fitzgerald, Chief Financial Officer                                   Tel: +353 1 612 1259
 
Murray Consultants
JoeMurray                                                                                          Tel: +353 1 498 0300
                                                                                                                                                                                                                                                                                                 Tel: +353 86 253 4950

 

Preliminary Results Statement
 
Financial Review
 
Origin Enterprises plc (‘Origin’ or ‘the Group’), announces a 74 per cent increase in comparable adjusted fully diluted earnings per share** for the year ending 31 July 2008 to 34.05c compared to 19.63c in the previous year. Profit before financing costs* for the financial year increased by 75 per cent to €73.2 million.
 
Revenue
 
Group revenue was 69 per cent higher at €1.5 billion with underlying revenue growth excluding the impact of acquisitions of 26 per cent. 
 
The Agri-Nutrition businesses achieved revenues of €1.17 billion, an increase of 80 per cent. Underlying revenue growth excluding the impact of acquisitions was 34 per cent. The Food businesses recorded revenue growth of 40 per cent to €339 million. Excluding the impact of the Odlums acquisition underlying revenue growth was 6 per cent.
 
Operating profit
 
Group operating profit* increased by 86 per cent to €70.9 million with underlying growth in operating profit excluding acquisitions of 42 per cent. 
 
Operating profit* from the Agri-Nutrition businesses increased by 99 per cent to €55.0 million. Excluding the impact of acquisitions, operating profit from the Agri-Nutrition businesses grew by 55 per cent. Operating profit* from the Food businesses increased by 52 per cent to €15.9 million. Excluding the impact of acquisitions, operating profit* increased by 6 per cent.
 
Associates
 
Following the acquisition of the controlling interest in Odlums in August 2007, Origin’s associate investment in the year under review primarily consisted of the 50 per cent interest in the animal feed manufacturer John Thompson and Sons Ltd, which delivered a satisfactory performance during the year.
 
Finance Costs
 
Net finance costs amounted to €14.6 million and are covered 5.6 times by EBITDA.
 
Net cashflow from operating activities
 
Net cashflow from operating activities increased by 66 per cent to €74.6 million, attributable to a strong underlying performance across the businesses and focussed cash management against the backdrop of significant increases in commodity prices.
 
 
 
Balance Sheet
 
Net debt at 31 July 2008 was €175.1 million compared with €71.7 million at the end of the previous year. This represents an excellent performance after a capital expenditure and acquisition spend of €179.0 million. 
 
Dividend
 
As previously outlined no dividend will be paid in respect of the year ended 31 July 2008. The Board will review its dividend policy in advance of the announcement of its Interim Results in March 2009.
 
 
*Profit before financing costs and Group operating profit are stated before intangible amortisation and exceptional items.

**Before intangible amortisation and exceptional items. The 2007 comparative has been adjusted to reflect the current capital structure of the Group.

 

Review of Operations
 
2008 was a transformational year for Origin driven by strong demand led growth momentum across the Group’s markets and significant acquisition and business development initiatives.
 
Agri-Nutrition
 
 
   2008
   €’000
 2007
 €’000
% Change
Excluding Acquisitions
Revenue
1,165,262
647,683
80%
34%
 
 
 
 
 
Operating profit*
   55,012
 27,653
99%
55%
 
 
 
 
 
Operating profit %
     4.7
    4.3
   -
   -
 
 
 
 
 
 
 
Agri-Nutrition comprises agri-inputs (feed ingredients and fertiliser blending and distribution), integrated on-farm agronomy and marine proteins and oils (fishmeal and fish oil manufacturing and distribution). These businesses provide customised solutions that address the efficiency, quality and output requirements of primary food producers.
 
Security of global food supply is placing an increasing emphasis on systems and technologies underpinning primary food production. This new focus is multi faceted comprising efficient input sourcing, prescriptive farming systems, yield enhancement technologies and the identification of regions with well situated productive soils capable of large scale efficient production. 
 
The Group has made significant progress during 2008 in the development of its Agri-Nutrition businesses through acquisition and capital investment. We now have an extended business model with increased geographic reach potential which places the Group at the forefront in supporting the increasing requirement for systems and technologies underpinning high performing and scalable primary food production. 
 
The Group’s strategic relationships with leading global suppliers of feed ingredients, crop protection and nutrition confers substantial sourcing benefits that are increasingly important in an environment of significantly greater volatility.
 
In Ireland the Feed Ingredients and Fertiliser businesses delivered a very satisfactory performance. Volume growth underpinned by stable livestock numbers drove the performance in feed. Fertiliser also delivered a strong performance against the background of higher prices driving an overall reduction in usage.
 
The Group’s UK fertiliser business achieved volume growth on the back of higher application rates in the arable sector as farmers sought to maximise yields and benefit from higher output prices. Increased worldwide demand for fertiliser led to tighter supplies and the business delivered an excellent performance supported by its strategically located distribution facilities and very strong operational capability.
 
In February 2008, Origin acquired Masstock Group Holdings Limited (‘Masstock’), the leading provider of integrated agronomy and farming systems advisory services to arable and grassland farm enterprises across the United Kingdom and Poland. Masstock delivers prescription solutions providing farmers with the optimum combinations of crop varietal selection, cultivation systems, crop nutrition and protection designed to maximise quality and yield. This competence is underpinned by Masstock’s advanced technical research based system in partnership with global manufacturers of seed, nutrition and crop protection.  
 
The acquisition of Masstock represents an exceptional strategic fit with our existing Agri-Nutrition business and Masstock delivered an excellent contribution in the seasonally important second half of the financial year driven by increased cereal acreage.
 
In July 2008, Origin acquired a 20 per cent interest in Continental Farmers Group plc (‘Continental Farmers’). Continental Farmers is a large scale producer of high value arable crops that has built a successful farming business in the Vistula Delta area of Northern Poland over the past 14 years. In 2006, Continental Farmers commenced the development of an intensive arable farming operation in the L’Viv region of Western Ukraine. Continental Farmers land holding currently comprises 2,500 hectares (‘ha’) in Poland and over 18,000 ha in Ukraine. Origin will actively support the growth and development of Continental Farmers through the provision of input sourcing programmes and agronomy expertise.
 
Marine Proteins delivered a satisfactory performance against the background of lower price realisations for fishmeal and reduced raw material intake. The business continues to benefit from growth in aquaculture and is also benefiting from higher inclusion levels of fishmeal in pig and poultry diets.
 
Pressure on raw material availability combined with higher landing and conversion costs present a compelling case for industry consolidation. Origin is ideally positioned to lead and support a consolidation initiative as the largest producer of fishmeal and fish oil in Ireland and the UK and third largest in Europe. Discussions which commenced earlier in the year with Austevoll Seafood ASA with a view to combining our respective fishmeal and fish oil operations in Europe are ongoing.
 
 
Food
 
 
 2008
 €’000
 2007
 €’000
% Change
Excluding Acquisitions
Revenue
338,980
241,680
40%
   6%
 
 
 
 
 
Operating profit*
 15,914
 10,474
52%
   6%
 
 
 
 
 
Operating profit %
   4.7
   4.3
    -
    -
 
 
 
 
 
 
 
Food delivered a very satisfactory performance during 2008 with the Group’s brands maintaining their strong market positions and achieving good underlying sales growth. One of the key features of the year was the significant increase in raw material prices experienced across a number of categories.
 
The Shamrock and Roma brands achieved excellent sales growth in the year reflecting continuing momentum through category and channel extension. The Shamrock Just brand proved very successful in the healthy snacking market, gaining increased distribution. Roma’s extension into Mediterranean food ingredients combined with a renewed focus and rebranding of Roma Organics, resulted in increased distribution driving strong underlying sales growth. Foodservice had an excellent year increasing its presence in a number of new channels and the agency business continued to perform well. The businesses were successful in recovering significant input cost inflation during the year.
 
Odlums, Ireland’s premier cereal miller, delivered a satisfactory performance in the period. The business experienced a challenging first half relating to the timing of the implementation of price increases reflecting higher raw material costs which were fully implemented from the start of the second half of the financial year. Key sales, marketing and distribution activities were integrated into Shamrock Foods during the year resulting in improved customer service levels and streamlined distribution.
 
Odlums, Shamrock and Roma are market leading brands across the home baking, snacking and ambient Italian food ingredients categories. This complementary product range is now supported by a focussed sales, marketing, distribution and product development capability enabling the Group to capitalise on the key characteristics demanded by today’s consumers for quality, healthy and natural products. 
 
 
 
Property
 
The Group's major property asset comprises its interest in the Cork South Docks. Following the acquisition of Odlums this now comprises a 32 acre footprint with prime water frontage. 
 
After extensive consultation the Cork South Docks Local Area Plan ('SDLAP') was formally adopted by Cork City Council in February 2008. The SDLAP provides greater certainty on the extent and timing of development and Origin supports the recommendations set out in the plan.
 
Following the adoption of the SDLAP Origin submitted a detailed Masterplan for its entire 32 acre footprint. A planning application for the Group’s first two acre riverfront site at the apex of the docks was submitted in June 2008. This planning application is for buildings with an aggregate area of 51,000 sq. metres comprising a mixture of retail, office and residential space.
 
We will continue to advance our objective of maximising the marketability of our surplus property assets over the medium term.
 
Outlook
 
During 2008 the Group made substantial investment in the expansion of its capability to service primary food producers. We are confident that our extended business model positions the Group to provide superior benefits to our customers and we are well placed to achieve further growth in the current financial year.
 
 
ENDS
 
About Origin Enterprises plc
 
Origin Enterprises plc is a leading Agri-Nutrition and Food company listed on the IEX and AIM markets of the Irish and London Stock Exchanges. The Agri-Nutrition division, through its manufacturing and distribution operations in Ireland, the United Kingdom and Poland, has leading market positions in the supply of feed ingredients, specialist agronomy services, crop nutrition and marine proteins. The Group's Food division, comprising sales, marketing, distribution and manufacturing activities in Ireland, has leadership positions in ambient food across the retail, food service and manufacturing sectors.
 
IEX ticker symbol: OIZ
AIM ticker symbol: OGN
 
Website: www.originenterprises.com
 

Origin Enterprises plc

 
Group income statement
for the year ended 31 July 2008                                                                                          
                                                                                                                                                                                  
 
2008
 
2007
 
€’000
 
€’000
 
 
 
 
Revenue
1,504,242
 
889,363
Cost of sales
(1,335,032)
 
(793,046)
 
 
 
Gross Profit
169,210
 
96,317
Operating costs, net
(100,681)
 
(57,841)
 
 
 
 
Operating Profit
68,529
 
38,476
Share of profit of associates
2,252
 
3,674
 
 
 
 
Profit before financing costs
70,781
 
42,150
Financing income
5,287
 
2,310
Financing costs
(19,859)
 
(4,955)
 
 
 
 
Profit before tax
56,209
 
39,505
Income tax expense
(11,747)
 
(6,856)
 
 
 
 
Profit for the financial year
44,462
 
32,649
 
 
 
 
Attributable as follows:
 
 
 
Equity shareholders
44,701
 
32,686
Minority interest
(239)
 
(37)
 
 
 
 
 
44,462
 
32,649
 
 
 
 
 
 
 
 
                                                                                                                                            
                                                                    
 
 
Origin Enterprises plc
 
Group income statement (continued)
for the year ended 31 July 2008
 
 
Earnings per share
 
 
2008
2007
 
 
 
Basic – adjusted
 
 
Excluding amortisation and exceptional items
35.23c
24.65c
 
 
 
Diluted – adjusted
 
 
Excluding amortisation and exceptional items
34.05c
23.93c
 
 
 
Basic
 
 
Including amortisation and exceptional items
33.61c
24.57c
 
 
 
Diluted
 
 
Including amortisation and exceptional items
32.47c
23.86c
 

Origin Enterprises plc

 
Group statement of recognised income and expense
for the year ended 31 July 2008
 
 
2008
 
2007
 
€’000
 
€’000
Items of income and expense recognised
   directly in equity
 
 
 
 
Net revaluation of previously held interest in associate
17,960
 
-
Foreign exchange translation effects
-     foreign currency net investments
-     foreign currency borrowings
 
(11,193)
2,755
 
 
-
2,053
Actuarial (loss)/gain on Group’s defined benefit pension schemes
(19,591)
 
7,039
Deferred tax effect of actuarial (loss)/gain
2,377
 
(895)
Actuarial gain on associate’s defined benefit scheme, net of deferred tax
 
1,778
 
 
3,745
Gain/(loss) relating to cash flow hedges
553
 
(1,027)
Deferred tax effect of cash flow hedges
(71)
 
298
Revaluation gains on properties transferred to
investment properties
 
-
 
 
87,380
Deferred tax effect on gains on revaluation of properties transferred to investment properties
 
-
 
 
(15,208)
 
 
 
 
Net (expense)/income recognised directly in equity
(5,432)
 
83,385
Profit for the financial year
44,462
 
32,649
 
 
 
 
Total recognised income and expense for the year
39,030
 
116,034
 
 
 
 
Attributable as follows:
 
 
 
Equity shareholders
39,531
 
116,071
Minority interest
(501)
 
(37)
 
 
 
 
Total recognised income and expense for the year
39,030
 
116,034
 
 
 
 
 
                                                                                                 
                                                                                                                                                         

Origin Enterprises plc

Group balance sheet
as at 31 July 2008

 
2008
 
2007
 
       €’000
 
€’000
ASSETS
 
 
 
 
 
 
 
Non current assets
 
 
 
Property, plant and equipment
106,099
 
71,149
Investment properties
192,418
 
165,473
Goodwill and intangible assets
116,367
 
15,220
Investments in associates
32,844
 
26,521
Deferred tax assets
      4,651
 
1,633
 
 
 
 
 
 
 
 
Total non current assets
452,379
 
279,996
 
 
 
 
 
 
 
 
Current assets
 
 
 
Inventory
160,669
 
67,476
Trade and other receivables
203,156
 
84,993
Derivative financial instruments
       1,958
 
-
Cash and cash equivalents
75,232
 
31,989
 
 
 
 
 
 
 
 
Total current assets
441,015
 
184,458
 
 
 
 
 
 
 
 
TOTAL ASSETS
893,394
 
464,454
 
 
 
 
 
 
 

 

 

Origin Enterprises plc

 
Group balance sheet (continued)
as at 31 July 2008
 
2008
 
2007
 
€’000
 
€’000
EQUITY
 
 
 
 
 
 
 
Called up share capital
1,386
 
1,382
Share premium
265,182
 
265,182
Retained earnings and other reserves
(44,686)
 
(84,926)
 
                   
 
        
Total equity attributable to equity shareholders of parent
221,882
 
181,638
 
 
 
 
Minority interest
1,495
 
1,996
 
                    
 
        
 
 
 
 
TOTAL EQUITY
223,377
 
183,634
 
                    
 
        
LIABILITIES
 
 
 
 
 
 
 
Non current liabilities
 
 
 
Interest bearing borrowings
249,272
 
83,000
Employee benefits
23,071
 
1,771
Deferred government grants
2,644
 
2,674
Deferred tax liabilities
42,741
 
31,740
Deferred consideration on acquisition
12,483
 
                -
 
                    
 
        
 
 
 
 
Total non current liabilities
330,211
 
119,185
 
                    
 
        
Current liabilities
 
 
 
Interest bearing borrowings
1,085
 
20,691
Trade and other payables
328,350
 
130,172
Corporation tax payable
6,751
 
8,556
Derivative financial instruments
3,620
 
2,216
 
                    
 
        
 
 
 
 
Total current liabilities
339,806
 
161,635
 
 
 
 
TOTAL LIABILITIES
670,017
 
280,820
 
 
 
 
TOTAL EQUITY AND LIABILITIES
893,394
 
464,454
 
_______             
 
_______             
 

 

Origin Enterprises plc

 
Group cash flow statement
for the year ended 31 July 2008
 
 
 
2008
 
2007
 
 
€’000
 
€’000
Cash flows from operating activities
 
 
 
 
Profit before tax
 
56,209
 
39,505
Financial income
 
  (5,287)
 
(2,310)
Financial expense
 
19,859
 
4,955
Share of profit of associates
 
(2,252)
 
(3,674)
Depreciation of property, plant and equipment
 
       9,060
 
7,527
Amortisation of intangible assets
 
       2,397
 
797
Amortisation of government grants
 
         (115)
 
(124)
Employee share-based payment charge
 
           709
 
205
Exceptional items
 
               -
 
(1,146)
Foreign exchange gains
 
               -
 
32
 
 
 
 
        
Operating profit before changes in working capital
 
80,580
 
45,767
 
 
 
 
 
(Increase) in inventory
 
(72,805)
 
(11,736)
(Increase)/ Decrease in trade and other receivables
 
(49,820)
 
9,103
Increase in trade and other payables
 
139,405
 
3,561
 
 
 
 
 
 
 
 
 
 
Cash generated from operating activities
 
97,360
 
46,695
Interest paid
 
(9,662)
 
(1,792)
Income tax paid
 
(13,083)
 
            -
 
 
 
 
        
 
 
 
 
 
Net cashflow from operating activities
 
74,615
 
44,903
 
 
 
 
        
 
 
 
 
Origin Enterprises plc
 
Group cash flow statement (continued)
for the year ended 31 July 2008
 
2008
 
2007
 
€’000
 
 €’000
Cash flows from investing activities
 
 
 
Proceeds from sale of property, plant and equipment
411
 
205
Purchase of property, plant and equipment
 
 
 
-           Ongoing
(6,010)
 
(3,767)
-           New investments
(2,814)
 
(2,336)
Additions to investment properties
(12,945)
 
                  -
Insurance proceeds, net
                  -
 
6,118
(Acquisition)/disposal of subsidiary undertaking,
 
 
 
    net of cash acquired
(75,798)
 
1,045
Investment in associates
(15,632)
 
                  -
Dividends received
158
 
574
 
       
 
                 
   
 
 
 
Net cash flow from investing activities
(112,630)
 
1,839
 
 
 
 
Cash flows from financing activities
 
 
 
Proceeds from issue of share capital
                    4
 
104,192
Share issue expenses
                    -
 
(1,691)
Net cash movement in balance with IAWS
                    -
 
(255,545)
Drawdown of loan capital
104,195
 
83,000
Payment of finance lease obligations
(399)
 
                       -
 
                   
 
        
 
 
 
 
Net cash flow from financing activities
103,800
 
(70,044)
 
                 
 
        
 
 
 
 
Net increase/(decrease) in cash and cash equivalents
65,785
 
(23,302)
 
 
 
 
Translation adjustment
(2,076)
 
177
 
 
 
 
Cash and cash equivalents at start of year
11,298
 
34,423
 
        
 
        
 
 
 
 
Cash and cash equivalents at end of year
75,007
 
11,298
 
              
 
                
                                                                                               
                                                                             
 
Origin Enterprises plc
 
Notes to the preliminary results statement
for the year ended 31 July 2008
 
1                      Basis of preparation
 
The financial information included on pages 9to 23of this preliminary results statement has been extracted from the Group financial statements for the year ended 31 July 2008 on which the auditor has issued an unqualified audit opinion.
 
The financial information has been prepared in accordance with the accounting policies set out in the Group’s consolidated financial statements for the year ended 31 July 2008 which were prepared in accordance with International Financial Reporting Standards as adopted by the EU.
 
The consolidated financial information is presented in euro, rounded to the nearest thousand, which is the functional currency of the parent and majority of the Group’s operations.
 
 
2                                  Segment information
 
(i) Segment revenue and result
 
 
               Food
 
           Agri-Nutrition
 
              Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2008
 
2007
 
2008
 
2007
 
2008
 
2007
 
 
€’000
 
€’000
 
€’000
 
€’000
 
€’000
 
€’000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment revenue
338,980
 
241,680
 
1,165,262
 
647,683
 
1,504,242
 
889,363
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit before exceptional items and
 
 
 
 
 
 
 
 
 
 
 
 
amortisation of intangible assets
15,914
 
10,474
 
 55,012
 
27,653
 
 70,926
 
38,127
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortisation of intangible assets
(1,367)
 
(501)
 
(1,030)
 
(296)
 
(2,397)
 
(797)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exceptional items
-
 
(1,314)
 
-
 
2,460
 
-
 
1,146
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit
14,547
 
8,659
 
53,982
 
29,817
 
68,529
 
38,476
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share of profit of associates
201
 
1,886
 
2,051
 
1,788
 
2,252
 
3,674
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit before financing costs
14,748
 
10,545
 
56,033
 
31,605
 
70,781
 
42,150
 
 
                                                                                                                 
 
                                                             Origin Enterprises plc
 
Notes to the preliminary results statement
for the year ended 31 July 2008
 
               
2                                  Segment information (continued)
 
(ii) Segment assets
                                                                                                                                                  
 
Food
 
Agri-Nutrition
 
Total Group
 
2008
 
2007
 
2008
 
2007
 
2008
 
2007
 
€’000
 
€’000
 
€’000
 
€’000
 
€’000
 
€’000
 
 
 
 
 
 
 
 
 
 
 
 
Segment assets excluding investment in associates and investment properties
 
142,311
 
 
69,313
 
 
443,980
 
 
169,525
 
 
586,291
 
 
238,838
Investment in associates
-
 
10,247
 
32,844
 
16,274
 
32,844
 
26,521
Investment properties
14,000
 
-
 
178,418
 
165,473
 
192,418
 
165,473
 
 
 
 
 
 
 
 
 
 
 
 
Segment assets
156,311
 
79,560
 
655,242
 
351,272
 
811,553
 
430,832
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to total assets as reported in Group balance sheet
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
 
 
 
75,232
 
31,989
Derivative financial instruments
 
 
 
 
 
 
 
 
1,958
 
-
Deferred tax assets
 
 
 
 
 
 
 
 
4,651
 
1,633
Total assets as reported in Group balance sheet
 
 
 
 
 
 
 
 
 
893,394
 
 
464,454
 
 
 
 
 
 
 
 
 
 
 
 
 
(iii) Segment liabilities
 
 
Food
 
Agri-Nutrition
 
Total Group
 
2008
 
2007
 
2008
 
2007
 
2008
 
2007
 
€’000
 
€’000
 
€’000
 
€’000
 
€’000
 
€’000
 
 
 
 
 
 
 
 
 
 
 
 
Segment liabilities
41,538
 
23,896
 
325,010
 
110,721
 
366,548
 
134,617
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to total liabilities as reported in Group balance sheet
 
 
 
 
 
 
 
 
 
 
 
Interest bearing loans and liabilities
 
 
 
 
 
 
 
 
250,357
 
103,691
Derivative financial instruments
 
 
 
 
 
 
 
 
3,620
 
2,216
Current and deferred tax liabilities
 
 
 
 
 
 
 
 
49,492
 
40,296
Total liabilities as reported in Group balance sheet
 
 
 
 
 
 
 
 
 
670,017
 
 
280,820
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                                                                                       
               
 
                                                                                                               
               
                                                                                                                                                       
Origin Enterprises plc
 
Notes to the preliminary results statement
for the year ended 31 July 2008
 
3          Earnings per share
 
            Basic earnings per share
     
      The calculation of basic earnings per share for the year ended 31 July 2008 was based on the profit for the financial year attributable to ordinary shareholders of €44,701,000 (2007: €32,686,000) and the weighted average number of ordinary shares in issue.
 
2008
 
2007
 
€’000
 
€’000
 
 
 
 
Profit for financial year attributable to equity shareholders
44,701
 
32,686
 
 
 
 
 
 
 
 
 
‘000
 
’000
 
 
 
 
Weighted average number of ordinary shares for the year
133,016
 
133,016 *
 
 
 
 
 
 
 
 
Basic earnings per share
33.61 cent
 
24.57 cent
 
 
 
 
            * The number of ordinary shares immediately following the IPO of Origin in June 2007 has been used as the weighted average number for 2007.
 
            Diluted earnings per share
                             The calculation of diluted earnings per share at 31 July 2008 was based on profit for the financial year attributable to ordinary shareholders of €44,701,000 (2007: €32,686,000) and the weighted average number of ordinary shares outstanding of 137,652,435 (2007 :136,983,607) calculated as follows:
 
2008
 
2007
 
€’000
 
€’000
 
 
 
 
Profit for financial year attributable to equity shareholders
44,701
 
32,686
 
 
 
 
 
 
 
 
‘000
 
‘000
Weighted average number of ordinary shares used in
 
 
 
basic calculation
133,016
 
133,016
Effect of convertible shares with a dilutive effect 
4,636
 
3,968
 
 
 
 
Weighted average number of ordinary shares (diluted) for the year
137,652
 
136,984
 
 
 
 
Diluted earnings per share
32.47 cent
 
23.86 cent
 
 
 

 

 

Origin Enterprises plc

 
Notes to the preliminary results statement
for the year ended 31 July 2008
 
3           Earnings per share (continued)
 
Adjusted basic earnings per share
                                                                                         
 
 
 
2008
‘000
 
2007
‘000
Weighted average number of ordinary shares (diluted)
 
133,016
 
133,016 *
 
2008
€’000
 
2008
Per share
€ cent
 
2007
€’000
 
2007
Per share
€ cent
Adjusted
Profit for the financial year
 
44,701
 
33.61
 
32,686
 
24.57
Adjustments:
Amortisation of intangible assets
 
2,397
 
1.80
 
797
 
0.60
Amortisation of related deferred tax
 
(227)
 
(0.18)
 
-
 
-
Exceptional items, net of tax
 
-
 
-
 
(696)
 
(0.52)
Adjusted basic earnings per share
 
46,871
 
35.23
 
32,787
 
24.65
*The number of ordinary shares immediately following the IPO of Origin in June 2007 has been used as the weighted average number for 2007.
 

Adjusted diluted earnings per share

 
 
 
 
2008
‘000
 
 
 
2007
‘000
Weighted average number of ordinary shares (diluted)
 
 
 
137,652
 
 
 
136,984
 
 
 
 
 
 
 
 
 
 
 
2008
€’000
 
2008
Per share
€ cent
 
2007
€’000
 
2007
Per share
€ cent
Adjusted
 
 
 
 
 
 
 
 
Profit for the financial year
 
44,701
 
32.47
 
32,686
 
23.86
 
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
 
Amortisation of intangible assets
 
2,397
 
1.74
 
797
 
0.58
Amortisation of related deferred tax
 
(227)
 
(0.16)
 
-
 
-
Exceptional items, net of tax
 
 -
 
 -
 
(696)
 
(0.51)
 
 
 
 
 
 
 
 
 
Adjusted diluted earnings per share
 
46,871
 
34.05
 
32,787
 
23.93
 
 
 
 
 
 
 
 
 

 

Origin Enterprises plc

 
Notes to the preliminary results statement
for the year ended 31 July 2008
 
 
4          Analysis of net debt
 
               
 
31 July 2007
 
€’000
 
Cashflow
 
 
€’000
 
Arising on
acquisition
 
€’000
 
Other
non cash
movements
€’000
 
Translation
adjustments
 
€’000
 
31 July
2008
 
€’000
 
 
 
 
 
 
 
 
 
 
 
 
Cash
31,989
 
45,319
 
-
 
-
 
(2,076)
 
75,232
Overdrafts
(20,691)
 
20,466
 
-
 
-
 
-
 
(225)
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
11,298
 
65,785
 
-
 
-
 
(2,076)
 
75,007
 
 
 
 
 
 
 
 
 
 
 
 
Finance lease obligations
-
 
399
 
(2,144)
 
(191)
 
105
 
(1,831)
 
 
 
 
 
 
 
 
 
 
 
 
Loans
(83,000)
 
(104,195)
 
(63,861)
 
-
 
2,755
 
(248,301)
 
 
 
 
 
 
 
 
 
 
 
 
Net debt
(71,702)
 
(38,011)
 
(66,005)
 
(191)
 
784
 
(175,125)
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                             

Origin Enterprises plc

 
Notes to the preliminary results statement
for the year ended 31 July 2008
 
5          Statement of changes in shareholders’ equity

 

 
Share
 capital
 
€’000
Share
Premium
 
€’000
Cashflow
Hedge
 reserve
€’000
Revalation
reserve
 
€’000
Share based
payment
reserve
€’000
Reorganisation
 reserve
 
 €’000
Foreign currency
 translation
reserve
 €’000
Retained
earnings
 
€’000
Minority Interest
 
 
€’000
Total
 
 
€’000
 
 
 
 
 
 
 
 
 
 
 
At 1 August 2007
1,382
265,182
(1,770)
72,172
205
(196,884)
(1,224)
42,575
1,996
183,634
Issue of shares
4
-
-
-
-
-
-
-
-
4
Net revaluation of previously held interest in associate
 
-
 
-
 
-
 
17,960
 
-
 
-
 
-
 
-
 
-
 
17,960
Share based payments
-
-
-
-
709
-
-
-
-
709
Foreign Exchange Translation
-
-
-
-
-
-
(8,176)
-
(262)
(8,438)
Group defined benefit pension schemes
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
(19,591)
 
-
 
(19,591)
Deferred tax on group defined benefit schemes
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
2,377
 
-
 
2,377
Net actuarial gain on associate defined benefit pension scheme
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
1,778
 
-
 
1,778
Gains related to cash flow hedges and other
 
-
 
-
 
553
 
-
 
-
 
-
 
-
 
-
 
-
 
553
Deferred tax relating to cash flow hedges and other
 
-
 
-
 
(71)
 
-
 
-
 
-
 
-
 
-
 
-
 
(71)
Profit/(loss) for the period
-
-
-
-
-
-
-
44,701
(239)
44,462
At 31 July 2008
1,386
265,182
(1,288)
90,132
914
(196,884)
(9,400)
71,840
1,495
223,377
 
 
 
 
 
 
 
 
 
 
 

 

           
 
   Origin Enterprises plc
 
Notes to the preliminary results statement
for the year ended 31 July 2008
                                                                                                                                                                   
6    Acquisition of subsidiary undertakings
           
During the year the Group completed two acquisitions:                
 
1.   On 30 August 2007, the Group acquired the remaining 50% interest in the Odlum Group not previously owned.
2.   On 1 February 2008, the Group completed the acquisition of 100% of Masstock Group Holdings Limited (“Masstock”). Masstock, with operations in the United Kingdom and Poland, is the leading provider of specialist agronomy services directly to arable and grassland farm enterprises.
 
Details of the net assets acquired and goodwill arising from the business combinations are as follows:
 
Acquiree’s carrying amount
€’000
 
Fair value adjustments
€’000
 
Fair value
€’000
Split of fair value
Masstock         Odlums
€’000                €’000
Net assets acquired:
 
 
 
 
 
Property, plant and equipment
40,305
(954)
39,351
14,095
25,256
Investments properties
-
14,000
14,000
-
14,000
Intangible assets
5,176
38,442
43,618
14,718
28,900
Inventory
27,333
(500)
26,833
18,456
8,377
Trade and other receivables
74,102
(586)
73,516
52,992
20,524
Trade and other payables
(61,633)
(895)
(62,528)
(53,926)
(8,602)
Debt assumed
(63,861)
-
(63,861)
(36,776)
(27,085)
Finance leases
(2,144)
-
(2,144)
(2,144)
-
Deferred tax
103
(10,983)
(10,880)
(3,276)
(7,604)
Employee benefit liability
(4,218)
-
(4,218)
(1,794)
(2,424)
Corporation tax
125
(191)
(66)
90
(156)
Government grants
(248)
-
(248)
-
(248)
 
————
————
————
————
————
 
 
 
 
 
 
Net assets acquired
 
 
53,373
2,435
50,938
Goodwill arising on acquisition
 
 
63,823
53,804
10,019
 
 
 
————
————
————
 
 
 
 
 
 
 
 
 
117,196
56,239
60,957
 
 
 
═════
═════
═════
Satisfied by:
 
 
 
 
 
Cash consideration
 
 
77,387
42,037
35,350
Cash acquired
 
 
(1,589)
1,215
(2,804)
Fair value of previously held 50% interest in Odlum Group
28,411
-
28,411
Deferred consideration
 
 
12,987
12,987
-
 
 
 
————
————
————
 
 
 
117,196
56,239
60,957
 
 
 
═════
═════
═════
Origin Enterprises plc
 
Notes to the preliminary results statement
for the year ended 31 July 2008
                                                                                                                                   
6          Acquisitions of subsidiary undertakings(continued)                   
             
            Post acquisition revenues and operating profit relating to these acquisitions amounted to
            €383,371,000 and €16,901,000 respectively. Masstock contributed revenue of €300,613,000 and operating profit of €12,104,000. Odlums contributed revenue of €82,758,000 and operating profit of €4,797,000.
 
            If the acquisitions had occurred on 1 August 2007, management estimates that consolidated revenue would have been €1,721,111,000 and consolidated operating profit for the period would have been €67,824,000. In determining these amounts management has assumed that the fair value adjustments that arose on the dates of acquisition would have been the same if the acquisition occurred on 1 August 2007.
 
            The goodwill recognised on the acquisitions is attributable to the skills and technical talent of the acquired business’s work force, and the synergies expected to be achieved from integrating the company into the Group’s existing business.
 
 
 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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