An encouraging start to trading in seasonally quiet first half
9 March 2017Origin Enterprises plc ('Origin' or 'the Group'), today announces its interim results for the half year ended 31 January 2017.
HighlightsImproved first half performance in seasonally quiet trading period
More stable near term planning environment for primary producers, combined with generally settled weather, has driven good early season demand for agronomy services and inputs
Solid foundation established for seasonally important second half with cropping base consistent with prior year
Agreement to acquire the fertiliser blending and nutrition business of Bunn Fertiliser in the UK
Commencement of a five year collaborative research partnership with University College Dublin to build digitally based agronomy advisory tools
Origin separately announced today the acquisition of the digital agricultural services group - Resterra
Interim dividend of 3.15 cent per share (2016: 3.15 cent per share)
Results Summary | 6 months ended 31 Jan 2017 €'000 | 6 months ended 31 Jan 2016 €'000 | |
Change €'000 | |||
Group revenue | 564,436 | 507,213 | 57,223 |
Group operating profit/(loss) | |||
- Operating profit/(loss) - Agri-Services* | 2,010 | (1,790) | 3,800 |
- Associates and joint venture** | 1,742 | 1,476 | 266 |
Total group operating profit/(loss)* | 3,752 | (314) | 4,066 |
Finance cost, net | (3,816) | (3,769) | (47) |
Loss before tax* | (64) | (4,083) | 4,019 |
Basic loss per share (cent) | (8.09) | (5.24) | (2.85) |
Adjusted diluted earnings/(loss) per share (cent)*** | 0.25 | (2.47) | 2.72 |
Group net debt**** | 161,584 | 168,272 | (6,688) |
Interim dividend per ordinary share (cent) | 3.15 | 3.15 | - |
* Before amortisation of non-ERP intangible assets and exceptional items
** Profit after interest and tax
*** Before amortisation of non-ERP intangible assets, net of related deferred tax (2017: €2.0 million, 2016:
€3.5 million) and exceptional items, net of tax (2017: €8.5 million, 2016: €Nil)
**** Includes restricted cash of €Nil (2016: €2.9m)
Origin Enterprises plc Chief Executive Officer's comment:Commenting on the results, Origin Chief Executive Officer, Tom O'Mahony said:
"The Group achieved good volume growth and margin recovery in the seasonally quiet first half of the financial year following a challenging trading year in 2016. Performance was supported by a more stable near term planning environment for primary producers together with the benefit of generally settled weather, which led to increased on-farm activity throughout the period.
Our investment priorities for technology development and strategic acquisitions are focused on capturing growth opportunity in the provision of dynamic crop management systems that meet the requirements of today's primary producer as well as broadening new customer and service potential.
We remain focused on embedding strategic cost initiatives, working capital management and business integration. The consolidation of acquisitions completed in 2016 in the UK, Poland and Romania is progressing as planned. The performance in the period provides a solid foundation for the seasonally more important second half when over 90% of earnings are typically generated."
ENDS
Capital Markets Site VisitOrigin will host an analyst and institutional investor site visit to our Technology Centre in Throws Farm near Stansted, UK, on Wednesday 14 June 2017. Further information will be circulated in due course.
Conference CallThe results announcement is available on the Company website www.originenterprises.com. There will be a live conference call at 8.30am (GMT) today. To participate in this conference call, please dial the number below. Participants are requested to dial in 5 to 10 minutes prior to the scheduled start time.
Participant access numbers:
Ireland: | Tel: | +353 (0)1 247 6528 |
UK/International: | Tel: | +44 (0)20 3427 1919 |
Confirmation Code: | 9006163 |
A replay of this call will be available for seven days.
Replay Access Code: | 9006163 | |
Replay Access Numbers: | ||
Dublin: | Tel: | +353 (0)1 486 0902 |
UK/International: | Tel: | +44 (0)20 3427 0598 |
Origin Enterprises plc | ||
Imelda Hurley | ||
Chief Financial Officer | Tel: | +353 (0)1 563 4959 |
Andrew Mills | ||
Investor Relations Officer | Tel: | +353 (0)1 563 4900 |
Goodbody (ESM Adviser) | ||
Siobhan Wall | Tel: | +353 (0)1 641 6019 |
Davy (Nominated Adviser) | ||
Anthony Farrell | Tel: | +353 (0)1 614 9993 |
Powerscourt | ||
Jack Hickey (Ireland) | Tel: | +353 (0)83 448 8339 |
Rob Greening (UK) | Tel: | +44 207 250 1446 |
Origin Enterprises plc is a focused Agri-Services group providing specialist on-farm agronomy services and the supply of crop technologies and inputs. The Group has leading market positions in Ireland, the United Kingdom, Poland, Romania and Ukraine. Origin is listed on the ESM and AIM markets of the Irish and London Stock Exchanges.
ESM ticker symbol: OIZ AIM ticker symbol: OGN
Website: www.originenterprises.com
Origin Enterprises plc published this content on 09 March 2017 and is solely responsible for the information contained herein.
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