RNS Number : 8923A
Roebuck Food Group PLC
28 September 2022
 

 

Roebuck Food Group plc

Interim results 2022

Results

 

Roebuck Food Group plc (AIM: RFG), is pleased to announce its interim results for the six months ended 30 June 2022.

 

Financial Highlights

·    Sales increased by 14%, from £11m to £12.5m.

·    Operating profit from continued operations £0.2m (2021 loss of £0.2m).

·    Net debt of £1m (Dec 21 Net cash £1.4m). This has mainly arisen after settling £1.5m of liabilities in respect of the sale of the cold stores.

·    Milk production increased 8.4%

·    Operating margin at the Sourcing Division increased from 1.2% to 1.9%

·    Operating profit from dairy division increased from breakeven to £0.2m

 

Divisional Highlights

 

£'m

Sourcing

Dairy


Jun-22

£'000

Jun-21

£'000

% Growth

Jun-22

£'000

Jun-21

£'000

% Growth

Revenue

11,772

10,479

12.3%

761

508

49

Operating Profit

225

121

85.9%

213

32

(566%)

Operating Margin

1.9%

1.2%


28%

6.3%


 

 

Sourcing Division

 

Sales at our sourcing division increased by 12%, compared with the same period in 2021, from £10.5m to £11.8m. Operating profit improved from £121,000 to £225,000.

 

Our product sourcing division has seen strong half year growth with continuous development of the protein export business to South Africa and South America. The sourcing division has also diversified it's product portfolio to also include Dairy Powders, Ingredients and Plant Based Ingredients.

 

As part of a strategic alignment with Townview Foods Limited. Foro International Connections Ltd has been rebranded to Townview Sourcing Ltd in May 2022.

 

Dairy Division

 

Our primary dairy operation, Cantwellscourt Farm Ltd, continues to perform well. Milk production for half year was up 8.4%, whilst pricing was up 32% year on year. This was partially offset by input cost inflation, particularly in feed and fertiliser; our pasture-based system gives us some protection from rising input prices. Whilst weather was favourable in the first half of the year, we experienced some drought conditions toward the end of summer which will have some impact on feed costs and production in the second half. Overall, we expect a strong performance for the full year, mainly driven by higher dairy prices but also consistent performance across our main operating KPIs for production, pasture and animal health.

 

Our subsidiary, Grass to Milk Company Ltd, had a difficult first half, it exited the  Chinese market due to ongoing lockdowns, supply chain disruptions and cost inflation. China has proven a difficult market for a majority of Overseas Dairy Companies over the past 24-months. At this juncture, management is assessing commercialisation options for A2 protein ingredients in other export markets, particularly the US, where a shortage of domestic infant formula has created significant opportunities for overseas brands. Commercialisation of these market opportunities is likely to take 12-24 months.  

 

Discontinued

 

Our subsidiary Grass to Milk Company produced and shipped A2-protein liquid dairy products for the Chinese market which we exited in the first half of 2022 due to ongoing lockdowns, supply chain disruptions and cost inflation. We have impaired the intangible asset along with costs totalling £1m.

 

On the 28th October 2021, we sold the cold store business, resulting in a profit on disposal of £40m. Following the sale, we made a capital return to shareholders of £1.66 per share totaling £49.9m in November 2021. In the first half of the year we paid £1.5m in discharging liabilities in respect of the sale of the business.

 

Strategic Review

 

Following the successful sale of its Cold Stores business, Roebuck Food Group PLC (RFG), formerly known as Norish PLC, returned £49.92m to shareholders at the end of 2021. Your board is conducting a strategic review of the group's businesses, with a view to maximising shareholder value and / or liquidity in the company's shares.

 

Dividend

 

The board does not recommend the payment of an interim dividend, unchanged from last year.

 

 

 

 

Roebuck Food Group Plc

 



 

 

 

 

Consolidated income statement

 




For the six months ended 30 June 2022

 





 





 

Six months

Six months

Year


 

ended

ended

ended


 

30 June

30 June

31 December


 

2022

2021

2021


 

(Unaudited)

(Restated)

(Restated)


 

 




 

£'000

£'000

£'000

 

 

 



Continuing operations

 

 



Revenue

 

12,533

10,987

24,452

Cost of sales

 

(12,228)

(10,947)

(24,256)

Gross profit

 

305

40

196


 

 



Other income

 

133

113

161

Administrative expenses

 

(200)

(402)

(500)

Fixed asset impairment

 

-

-

(862)

 

Operating profit/(loss) from continuing operations

 

238

(249)

(1,005)

 

 

 



Finance income - interest receivable

 

-

-

-

Finance expenses - lease interest

 

(13)

(13)

(26)

Finance expenses - interest on bank loans

 

(29)

(16)

(36)

Profit/(loss) on continuing activities before taxation

 

196

(278)

(1,067)


 

 



Income taxes - Corporation tax

 

-

-

(20)

Income taxes - Deferred tax

 

-

-

33


 

 



Profit/(loss) for the period attributable to owners of the parent from continuing operations

 

196

(278)

(1,054)


 

 



(Loss)/profit from discontinued activities

 

(1,096)

1,286

39,121


 

 



(Loss)/Profit for the period

 

(900)

1,008

38,067


 

 



Other comprehensive income

 

178

(228)

(355)


 

 



Total comprehensive income for the year

 

(722)

780

37,712

 

Earnings per share expressed in pence per share:

 

 



From continuing operations

- basic

 

0.65p

(0.92)p

(3.5)p

- diluted

 

0.65p

(0.92)p

(3.5)p

From discontinued operations

- basic

 

(3.65)p

4.28p

130.1p

- diluted

 

(3.65)p

4.28p

130.1p

 

 

 

 

 




 

 



Roebuck Food Group plc

 



 

Financial position

 



 

As at 30 June 2022

 



 

 

As at

As at

As at

 


30 June

30 June

31 December

 


2022

2021

2021

 


(Unaudited)

(Restated)

(Audited)

 


 



 


£'000

£'000

£'000

 

ASSETS

 



 

Non-current assets

 



 

Goodwill

2,338

2,338

2,338

 

Intangible assets

-

1,906

665

 

Biological assets

928

856

762

 

Property, plant and equipment

2,188

22,960

2,014

 


5,454

28,060

5,779

 

Current assets

 

 


 

Trade and other receivables

4,231

8,494

3,988

 

Inventories

449

157

97

 

Cash and cash equivalents

2,255

843

4,543

 

Assets of disposal group classified as held for sale

-

270

-

 


6,935

9,764

8,628

 

 

 

 


 

TOTAL ASSETS

12,389

37,824

14,407

 

 

 

 


 

Equity attributable to equity holders of the parent

And non-controlling interest

 

 


 

Share capital

564

5,640

564

 

Share premium account

-

7,321

-

 

Other reserves

(59)

(87)

(237)

 

Retained earnings

5,552

6,758

6,452

 

TOTAL EQUITY

6,057

19,632

6,779

 

 

Non-current liabilities

 

 


 

Borrowings

954

5,052

794

 

Deferred tax

35

1,244

35

 

 

989

6,296

829

 

 

 

 

 

 

Current liabilities

 

 


 

Trade and other payables

2,667

6,119

2,579

 

Current tax liabilities

-

450

-

 

Liabilities held for sale

330

-

1,869

 

Borrowings

2,346

5,327

2,351

 


5,343

11,896

6,799

 


 

 


 

TOTAL EQUITY AND LIABILITIES

12,389

37,824

14,407

 





 

 

 

 

 

 




 

Roebuck Food Group plc

Consolidated statement of changes in equity

For the six months ended 30 June 2022

 

 


 

 

 

 

 

 

 

 

 

Share

Share

Other

Other

Distributable

Retained

 

 

 

 

 

capital

premium

Reserves

Reserves

earnings

Total

 

 

 


£'000

£'000

£'000

£'000

£'000

£'000

 

 

 










 

At 1 January 2021

5,640

7,321

141

-

5,750

18,852

 

 

 










 

Profit for the financial year

-

-

-

                          -

1,008

1,008



 

Foreign exchange gain

-

-

(228)

-

-

(228)



 

Total comprehensive income for the period

-

-

(228)

-

1,008

780

 

 

 

Issue of share capital

-

-

-

-

-

-



 

Equity dividends paid (recognised directly in equity)

-

-

-

-

-

-



 

Transactions with owners

-

-

(228)

-

1,008

780

 

 

 

At 30 June 2021

5,640

7,321

(87)

-

6,758

19,632

 

 

 

 

 

 

 

 

 

 

 

 

 

Net profit for the financial period

-

-

-

-

37,059

37,059



 

Foreign exchange loss

-

-

(127)

-

-

(127)



 

Total comprehensive income for the period

-

-

(127)

-

37,059

36,932

 

 

 

Issue of share capital

-

-

-

-

-

-



 

Equity dividends paid

-

-

-

-

(510)

(510)



 

Capital redemption

-

-

-

(12,420)

(37,497)

(49,917)



 

Gain on capital redemption

-

-

-

-

-

-



 

JSOP

-

-

-

-

642

642



 

Reduction in capital

(5,076)

(7,321)

(23)

12,420

-

-



 

Transactions with owners

(5,076)

(7,321)

(23)

-

(37,365)

(49,785)

 

 

 

At 31 December 2021

564

-

(237)

 

-

6,452

6,779

 

 

 


















 

Net profit for the financial period

-

-

-

-

(900)

(900)



Foreign Exchange Gain

-

-

178

-

-

178



Total comprehensive income for the period

-

-

178

-

(900)

(722)

 

 

Issue of share capital

-

-

-

-

-

-



Equity dividends paid (recognised directly in equity)

-

-

-

-

-

-



Transactions with owners

-

-

178

-

(900)

(722)

 

 

At 30 June 2022

564

-

(59)

 

-

5,552

6,057

 

 

 

 

 

 

 

 

 

 

Roebuck Food Group plc

 


 

 

Consolidated cash flow statement

 



For the six months ended 30 June 2022

 



 

Six months

Six months

Year


Ended

ended

Ended


30 June

30 June

31 December


2022

2021

2021


(Unaudited)

(Restated)

(Restated)


£'000

£'000

£'000

Profit/(loss) on continuing activities before taxation

196

(278)

(1,067)

Gain on biological assets

(133)

(113)

(161)

Foreign exchange loss/(gain)

54

453

(50)

(Loss)/profit on discontinued activities

(1,096)

1,286

(269)

Finance expenses

42

29

62

Bad debt expenses

-

-

13

Taxation charge

-

-

(5)

Impairment - Intangible Asset

665

-

860

Impairment - property, plant and equipment

-

-

1,519

Depreciation - property, plant and equipment

84

987

1,699


(188)

2,364

2,601

Changes in working capital:

 



Increase in inventories

(352)

(99)

(39)

(Increase)/decrease in trade and other receivables

(243)

(968)

10

Increase in trade and other receivables for disposal

-

111

381

Decrease/(increase) in current liabilities held for sale

(1,539)

-

1,869

Increase/(decrease) in payables

88

(169)

(554)

Cash generated from operations

(2,234)

1,239

4,268

Taxation refund/(paid)

-

22

(205)

Net cash generated from operating activities

(2,234)

1,261

4,063

 

Investing activities

 



Investment in intangible assets

-

(685)

(986)

Purchase of biological assets

(12)

(10)

(9)

Sale of biological assets

13

8

127

Proceeds on disposal of subsidiary

-

-

55,160

Costs incurred on disposal of subsidiary

-

-

(3,533)

Cash included in subsidiary disposed

-

-

(72)

Purchase of property, plant and equipment

(211)

(1,177)

(1,840)

Net cash used in investing activities

(210)

(1,864)

48,847

Financing activities

 



Dividends paid to shareholders

-

-

(510)

Invoice finance receipts

3

475

1,016

Finance lease capital repayments

(10)

(623)

(1,390)

Finance lease advance

172

258

616

Capital redemption JSOP

-

-

642

Share capital redemption

-

-

(49,917)

Term loan repayments

(9)

(214)

(374)

Net cash used in financing activities

156

(104)

(49,917)

 

 



Net (decrease)/increase in cash and cash equivalents

(2,288)

(707)

2,993

 

Cash and cash equivalents, at beginning of period

4,543

1,550

1,550


 



Cash and cash equivalents end of period

2,255

843

4,543

 

Note: The accounting policies applied throughout the period are consistent with those applied for the year ended 31 December 2021, as set out in the 2021 Annual Report.

 

 

 

 

Enquiries:

Roebuck Food Group


Gerard Murphy, Finance Director

Telephone: + 44 28 30257760



 

Davy


Anthony Farrell

Telephone: + 353 1 679 6363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 



 

 



 

 

Six months

Year


 

ended

Ended


 

30 June

31 December

 

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