BENCHMARK HOLDINGS PLC
(“Benchmark” or the “Company” or the “Group”)
Interim results for the six months ended 31 March 2018
Profit growth driven by increased sales from higher margin products
Benchmark (LSE: BMK), the aquaculture health, genetics and advanced nutrition business is pleased to announce its interim results for the six months ended 31 March 2018 (the “period”).
Financial summary
|
£m |
H1 2018 |
H1 2017 |
% |
FY 2017 |
|
Revenue |
75.7 |
69.2 |
+9% |
140.2 |
|
EBITDA 1 |
6.3 |
5.2 |
+21% |
15.7 |
|
Adjusted EBITDA2 |
6.3 |
3.3 |
+91% |
10.0 |
|
Adjusted PBT3 |
4.4 |
(0.7) |
– |
6.3 |
|
Loss before tax |
(5.6) |
(8.9) |
– |
(8.1) |
|
Profit/(loss) for the period |
3.6 |
(8.2) |
– |
(7.1) |
|
Basic earnings/(loss) per share (p) |
0.67 |
(1.58) |
– |
(1.43) |
|
Net debt 4 |
(41.3) |
(12.8) |
– |
(23.9) |
(1) EBITDA is earnings before interest, tax, depreciation and amortisation
(2) Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, exceptional items and acquisition related expenditure
(3) Adjusted PBT is profit/loss before tax, before amortisation, share option charge, exceptional items and acquisition related expenditure
(4) Net debt is cash and cash equivalents less loans and borrowings
Financial highlights:
· Revenue increased by 9% to £75.7m (H1 2017: £69.2m), despite movements in foreign exchange rates. Using the same rates experienced in H1 2017, revenue increased by 17%
· Adjusted EBITDA increased by 91% to £6.3m (H1 2017: £3.3m) driven by revenue growth in higher margin nutrition and genetics products (and despite a £2.1m reduction in Animal Health)
· £3.6m reported profit for the period (H1 2017: loss of £8.2m) influenced by improved trading and:
o Reduction in finance costs in the period as a result of foreign exchange movements in USD denominated borrowing
o £9.2m tax credit (H1 2017: £0.7m) due to reduction in the tax rates in Belgium which reduced the deferred tax liability on intangibles from the acquisition of INVE
· Increase in net debt to £41.3m as expected, primarily due to £15.1m capital expenditure (including £8.6m investment in Salten facility and investment associated with the field trials of the new sea lice treatment). Net debt includes £18m ringfenced non-recourse debt to fund the Salten facility
Operational highlights:
· Commercial scale field trials of Benchmark's new products (Ectosanâ and Cleantreatâ) continuing in Norway; increasing interest from leading producers
· 16% revenue growth in Advanced Nutrition driven by high demand for specialist diets and health products in most markets and particularly in India
· Continued demand for Genetics products (revenue +11%); construction of additional capacity progressing on time for production in Q3 2018
Board
· Appointment of Peter George as Chairman on 8 May 2018
Post period end: JV with Empresas AquaChile
· On 8 June 2018, Benchmark announced a breeding and genetics joint venture with Empresas AquaChile and placing to raise £19m (before expenses)
· Acquisition of 49% interest in strategically important Chilean JV for a total cash consideration of $16.25m (£12.2m):
o Accelerates and de-risks Benchmark's strategy in Chile, the world's second largest salmon market
o Partnering with AquaChile, the world's sixth largest salmonid producer, and the largest in Chile
o JV is expected to be immediately and continuously earnings accretive
· Placing with existing and new investors to raise £19m (before expenses) to fund the total cash consideration of $16.25m (£12.2m), a $5.4m (£4m) loan to the JV and transaction expenses, with the balance being used for general working capital purposes
· The establishment of the JV is conditional on Bank Approval and Admission amongst other things. The Placing is conditional upon, amongst other things, Admission and the Placing Agreement not being terminated in accordance with its terms
· Benchmark expects to receive Bank Approval in the next few days and Admission is expected to occur four business days after bank approval is obtained
Outlook
· Positive macro environment in the Group's main markets. Group on track to deliver on expectations for the full year
Peter George, Chairman of Benchmark, commented:
“Having joined the Board in May, I have been impressed with Benchmark's range of products, its scale and global distribution network, and its reputation and relationships in the industry. Put this together with the drive and energy of the management team and it is clearly well placed to take advantage of the strong growth fundamentals in its market.
“I look forward to helping to deliver shareholder value as we continue to develop the Group's leading position in aquaculture.”
Malcolm Pye, CEO of Benchmark, commented:
“The Group has delivered good organic revenue growth and improving profitability on an adjusted basis, while we continued to invest in our pipeline of new products and infrastructure.”
“The outlook for the Group is positive as the drivers for our business are stronger than ever before, with continued growth in aquaculture and increasing recognition from consumers, producers and regulators of the need for sustainable solutions to enable future growth.
“We also expect to benefit from the recently announced, strategically important Chilean JV.
“Overall, we remain on track to achieve our expectations for the current year, and are confident of Benchmark's capacity to generate attractive returns in the years to come.”
The Company's Interim Report for the period ended 31 March 2018 will shortly be available to view on the Company's website (www.benchmarkplc.com).
A presentation for analysts will be held today at 09.30 at the offices of MHP Communications, 6 Agar Street, London, WC2N 4HN. The presentation will also be accessible via a live conference call for registered participants. To register for the call please contact MHP Communications on +44 (0)20 3128 8730 or 8742, or by email on benchmark@mhpc.com.
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For further information, please contact: |
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Benchmark Holdings plc |
Tel: 020 7920 3150 |
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Malcolm Pye, CEO |
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Mark Plampin, CFO |
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Ivonne Cantu, Investor Relations |
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Numis |
Tel: 020 7260 1000 |
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Michael Meade, Freddie Barnfield (NOMAD) |
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James Black (Corporate Broking) |
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MHP Communications |
Tel: 020 3128 8730 / 8742 |
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Katie Hunt / Reg Hoare / Alistair de Kare-Silver |
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For further information on Benchmark please visit www.benchmarkplc.com
Interim Management Report
Chairman's statement
Overview
The fundamental drivers for our business are stronger than ever before, with continued growth in aquaculture, and an increasing recognition from consumers, producers and regulators of the need for sustainable solutions to enable future growth. This has driven our mission from the outset and we are well positioned to succeed.
The Group performed well during the first six months of the year. We delivered revenue growth ahead of the industry average and are steadily moving towards profitability, while continuing to invest in our pipeline of new products and infrastructure. Our strategy to diversify our product offering and geographic footprint has proven successful, mitigating local risks inherent in our business.
Operationally, we continued our programme to realise synergies from our complementary platform. We are particularly focused on the roll-out of our Group key account programme, and the potential in shrimp genetics by bringing together our genetics capabilities with our leading position in the shrimp hatchery segment through Advanced Nutrition.
We have also completed an initial review of our activities and are in the process of implementing an action plan. In the area of diagnostic services, for example, we are restructuring our operations in a way that harnesses the expertise we have in-house while reducing our cost base.
We are also exploring the potential for partnership opportunities with organisations within the wider animal health market to exploit our technologies outside aquaculture. We will report on further progress in due course.
Animal Health: field trials of next generation sea lice treatment: Ectosanâ and Cleantreatâ
Early in the period we launched commercial scale trials for our highly innovative next generation sea lice treatment, with successful results. To date we have completed four trials, with all lice counts showing 100% efficacy. We continue to work on optimising the Cleantreatâ system to increase the efficiency of the total solution.
We estimate the loss to the salmon industry as a result of sea lice to be significantly more than $500m per annum, at a time when there has been a recognised lack of effective solutions in the market which are environmentally and welfare friendly. Our trials show Benchmark can address this unmet need, having shown 100% efficacy against sea lice, whilst eliminating all medicine residues ahead of water discharge into the ocean. Once fully licenced we estimate peak annual sales of up to £45m for our new treatment with some revenues already having been booked during the trials phase.
Benchmark will continue field trials as part of its market authorisation registration process. Commercial trials are ongoing in Norway, where we have increasing interest for our treatment from the major salmon producers, and will continue to the end of the year. In addition, we will extend trials to other markets and we are exploring the opportunity to start trials in an additional market outside of Norway before the end of 2018.
Advanced Nutrition: growth in diets and health products
Our Advanced Nutrition division delivered organic growth driven by increased demand for our higher margin specialist diets and health products, in most markets, and particularly from India and Ecuador, reflecting the increasing importance of these markets and the strength of our platform and network to grow in new regions as they develop. India is the second largest and one of the fastest growing shrimp producing countries, having benefited from a shift in the industry resulting from the Early Mortality Syndrome (EMS) break-outs in Asia in recent years.
It is pleasing to see the good performance of our specialist diet and health products, validating our R&D strategy. We have an active programme of upgrades and new products aimed at strengthening our competitive position and achieving profitable growth, and we saw the launch of three new products in the period.
Live feed artemia continues to be the main revenue contributor in Advanced Nutrition (58% of sales in the period), and the recent harvest of top quality GSL artemia was a record one, resulting in stability of supply. Development of our next generation larval feed protocols which combine live feed artemia with artemia replacement diets is progressing according to plan. We believe our next generation diets will allow producers to achieve long term growth, by eliminating the natural constraints resulting from a fully exploited global supply of artemia.
Genetics: Consolidating position in salmon and expansion into shrimp
Our Genetics division delivered organic revenue growth from continued higher sales volumes and average selling prices. At the same time, we took action to support future growth and higher margins which resulted in some increased operating costs.
During the period, we saw the value of having a well-diversified business in terms of customers, geographies and supply chain. There are inherent risks in our industry including disease, border closures and environmental effects and we were able to manage these risks where they materialised while delivering attractive growth.
Salmon
Following the announced JV with AquaChile, we have leading market positions in salmon genetics in all of the key markets. Our strategy to continue to deliver profitable growth is based on innovation and the year-round, biosecure availability of eggs; progress was made in both areas during the period. Construction of our new Salten facility in Norway continued according to plan, and we expect production to commence in Q3 2018 for delivery of first eggs in Q1 2019. The new facility will significantly increase our capacity, meeting our need for increased production, and will provide the flexibility to be able to offer certainty of supply and biosecurity to our customers.
Shrimp
Shrimp genetics represent a very attractive opportunity for the Group where we believe we will be able to leverage our experience in salmon and our position in shrimp hatcheries. We are pleased to report that the results of first round of trials in Vietnam were very encouraging and led to the decision to extend trials to Thailand and China, with other key markets to follow.
Financial review
Group revenue for the period increased by 9% to £75.7m (H1 2017: £69.2m) driven by revenue growth in Advanced Nutrition, Genetics and Knowledge Services of 16%, 11% and 15% respectively.
Adjusted EBITDA, which is used by management as the primary measure of financial performance allowing better understanding of the underlying performance of the Group, increased to £6.3m (H1 2017: £3.3m). The increase arose principally from increased sales and a movement in mix towards higher margin products in Advanced Nutrition. This was offset by a higher adjusted EBITDA loss in Animal Health, due to a one-off credit note for the repurchase of inventory linked to the renegotiation of distributor relationships and a relatively high fixed cost base geared up to support the final development and scaling up of new products.
Overall investment in R&D (expensed and capitalised) increased from £7.1m to £7.8m. Within that, expensed R&D was reduced but there was an increase in the level of capitalised development costs as the new products progress through the development phase. Operating costs increased in line with sales growth, representing 29.3% of sales (H1 2017: 29.4%).
The Group's operating loss reduced from £6.7m to £6.0m. Depreciation during the period increased by 35% from £2.3m to £3.1m, a direct result of investment in plant and machinery. Loss before taxation decreased to £5.6m (H1 2017: £8.9m), significantly helped by a shift from a net finance cost of £2.2m in 2017 to net finance income of £0.7m. This is a result of the foreign exchange gain arising from the revaluation of our USD denominated debt.
We reported a £3.6m net profit for the period (H1 2017: £8.2m net loss) driven by a £9.2m tax credit (H1 2017: tax charge £0.7m) due to a decrease in the tax rates in Belgium from 34% to 25% which reduces the deferred tax liability on the intangible assets from the INVE acquisition. Basic earnings per share were 0.67p (2017: loss (£1.58)).
As expected, net debt increased to £41.3m (FY 2017: £23.9m; H1 2017: £12.8m) primarily due to £15.1m capital expenditure, including for the expansion of production capacity in the Genetics division (Salten), and investment in capitalised R&D. In addition, working capital investment has increased as revenues have grown.
Outlook
The outlook for the Group is positive. Our markets have strong long-term growth fundamentals as well as a positive outlook in the near term. We also expect to benefit from the recently announced strategically important Chilean JV.
We remain on track to achieve our expectations for the current year, and are confident of Benchmark's capacity to generate attractive returns in the years to come.
Independent Review Report to Benchmark Holdings plc
Conclusion
We have been engaged by the company to review the condensed set of financial statements in the half-yearly report for the six months ended 31 March 2018 which comprises the consolidated income statement, the consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated statement of changes in equity, the consolidated cash flow statement and the related explanatory notes.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly report for the six months ended 31 March 2018 is not prepared, in all material respects, in accordance with the recognition and measurement requirements of International Financial Reporting Standards (IFRSs) as adopted by the EU and the AIM Rules
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the half-yearly report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Directors' responsibilities
The half-yearly report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly report in accordance with the AIM Rules.
As disclosed in note 2, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the EU. The directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly report based on our review
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the company in accordance with the terms of our engagement. Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.
Ian Beaumont
for and on behalf of KPMG LLP
Chartered Accountants
1 Sovereign Square, Sovereign Street, Leeds, LS1 4DA
19 June 2018
Consolidated Income Statement
for the 6 months ended 31 March 2018
|
|
Notes |
6 months |
6 months |
12 months |
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|
|
£000 |
£000 |
£000 |
|
|
|
|
|
|
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Revenue |
|
75,714 |
69,155 |
140,172 |
|
Cost of sales |
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(41,637) |
(39,113) |
(77,781) |
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Gross profit |
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34,077 |
30,042 |
62,391 |
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Research and development costs |
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(5,621) |
(6,433) |
(13,055) |
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Other operating costs |
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(22,178) |
(20,302) |
(39,297) |
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Adjusted EBITDA² |
|
6,278 |
3,307 |
10,039 |
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Exceptional including acquisition related items |
8 |
– |
1,872 |
5,649 |
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EBITDA¹ |
|
6,278 |
5,179 |
15,688 |
|
Depreciation |
11 |
(3,148) |
(2,333) |
(4,877) |
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Amortisation and impairment |
12 |
(9,153) |
(9,516) |
(18,473) |
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Operating loss |
|
(6,023) |
(6,670) |
(7,662) |
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Finance cost |
|
(1,069) |
(2,300) |
(1,960) |
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Finance income |
|
1,730 |
92 |
1,495 |
|
Share of (loss)/profit of equity-accounted investees, net of tax |
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(231) |
25 |
27 |
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Loss before taxation |
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(5,593) |
(8,853) |
(8,100) |
|
Tax on loss |
9 |
9,164 |
672 |
980 |
|
Profit/(loss) for the period |
|
3,571 |
(8,181) |
(7,120) |
|
|
|
|
|
|
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Profit/(loss) for the period attributable to: |
|
|
|
|
|
– Owners of the parent |
|
3,492 |
(8,255) |
(7,440) |
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– Non-controlling interest |
|
79 |
74 |
320 |
|
|
|
3,571 |
(8,181) |
(7,120) |
|
|
|
|
|
|
|
Basic earnings/(loss) per share (pence) |
10 |
0.67 |
(1.58) |
(1.43) |
|
|
|
|
|
|
|
Diluted earnings/(loss) per share (pence) |
10 |
0.66 |
(1.58) |
(1.43) |
1 EBITDA – Earnings before interest, tax, depreciation and amortisation
2 Adjusted EBITDA – EBITDA before exceptional and acquisition related items
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|
|
6 months |
6 months |
12 months |
|
|
|
£000 |
£000 |
£000 |
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|
|
|
|
|
|
Profit/(loss) for the year |
|
3,571 |
(8,181) |
(7,120) |
|
Other comprehensive income |
|
|
|
|
|
Items that are or may be reclassified subsequently to profit or loss |
|
|
|
|
|
Foreign exchange translation differences |
|
(10,318) |
9,234 |
(7,128) |
|
Total comprehensive income for the year |
|
(6,747) |
1,053 |
(14,248) |
|
|
|
|
|
|
|
Total comprehensive income for the year attributable to: |
|
|
|
|
|
– Owners of the parent |
|
(6,864) |
1,013 |
(14,407) |
|
– Non-controlling interest |
|
117 |
40 |
159 |
|
|
|
(6,747) |
1,053 |
(14,248) |
Consolidated Balance Sheet
as at 31 March 2018
|
|
|
As at |
As at |
As at |
|
|
|
(unaudited) |
(unaudited) |
(audited) |
|
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Notes |
£000 |
£000 |
£000 |
|
Assets |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment |
11 |
89,961 |
62,100 |
80,845 |
|
Intangible assets |
12 |
310,723 |
354,344 |
329,137 |
|
Equity-accounted investees |
|
2,749 |
362 |
2,512 |
|
Other investments |
|
112 |
216 |
237 |
|
Biological and agricultural assets |
|
4,924 |
5,866 |
5,745 |
|
Trade and other receivables |
|
– |
200 |
– |
|
Total non-current assets |
|
408,469 |
423,088 |
418,476 |
|
Current assets |
|
|
|
|
|
Inventories |
|
21,618 |
26,584 |
20,053 |
|
Biological and agricultural assets |
|
13,612 |
6,149 |
10,798 |
|
Trade and other receivables |
|
32,991 |
31,025 |
38,530 |
|
Cash and cash equivalents |
|
21,869 |
26,312 |
18,779 |
|
Total current assets |
|
90,090 |
90,070 |
88,160 |
|
Total assets |
|
498,559 |
513,158 |
506,636 |
|
Liabilities |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
(34,133) |
(28,948) |
(44,498) |
|
Loans and borrowings |
|
(558) |
(57) |
(6,234) |
|
Corporation tax liability |
|
(5,716) |
(2,214) |
(2,844) |
|
Provisions |
|
(429) |
(871) |
(450) |
|
Total current liabilities |
|
(40,836) |
(32,090) |
(54,026) |
|
Non-current liabilities |
|
|
|
|
|
Loans and borrowings |
13 |
(62,627) |
(39,015) |
(36,453) |
|
Other payables |
|
(1,232) |
(6,825) |
(1,213) |
|
Deferred tax |
|
(41,134) |
(62,429) |
(56,359) |
|
Total non-current liabilities |
|
(104,993) |
(108,269) |
(94,025) |
|
Total liabilities |
|
(145,829) |
(140,359) |
(148,051) |
|
Net assets |
|
352,730 |
372,799 |
358,585 |
|
Issued capital and reserves attributable to owners of the parent |
|
|
|
|
|
Share capital |
3 |
522 |
522 |
522 |
|
Additional paid-in capital |
|
339,431 |
339,431 |
339,431 |
|
Capital redemption reserve |
|
5 |
5 |
5 |
|
Retained earnings |
|
(20,376) |
(26,643) |
(24,742) |
|
Foreign exchange reserve |
|
28,042 |
54,633 |
38,398 |
|
Equity attributable to owners of the parent |
|
347,624 |
367,948 |
353,614 |
|
Non-controlling interest |
|
5,106 |
4,851 |
4,971 |
|
Total equity and reserves |
|
352,730 |
372,799 |
358,585 |
The notes on pages 14 to 23 are an integral part of this interim consolidated financial information
Consolidated Statement of Changes in Equity
for the 6 months ended 31 March 2018
|
|
Share |
Share |
Other |
Retained |
Total attributable |
Non- |
Total |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
As at 30 September 2016 (audited) |
521 |
339,431 |
45,370 |
(18,904) |
366,418 |
1,281 |
367,699 |
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the period |
|
|
|
|
|
|
|
|
(Loss)/profit for the period |
– |
– |
– |
(8,255) |
(8,255) |
74 |
(8,181) |
|
Other comprehensive income |
– |
– |
9,268 |
– |
9,268 |
(34) |
9,234 |
|
Total comprehensive income for the period |
– |
– |
9,268 |
(8,255) |
1,013 |
40 |
1,053 |
|
Transactions with owners of the company |
|
|
|
|
|
|
|
|
Contributions by and distributions to owners |
|
|
|
|
|
|
|
|
Share issue |
1 |
– |
– |
– |
1 |
– |
1 |
|
Share based payment |
– |
– |
– |
516 |
516 |
– |
516 |
|
Total contributions by and distributions to owners |
1 |
– |
– |
516 |
517 |
– |
517 |
|
Changes in ownership |
|
|
|
|
|
|
|
|
Investment in subsidiary by NCI |
– |
– |
– |
– |
– |
3,530 |
3,530 |
|
Total changes in ownership interests |
– |
– |
– |
– |
– |
3,530 |
3,530 |
|
Total transactions with owners of the Company |
– |
– |
– |
516 |
517 |
3,530 |
4,047 |
|
As at 31 March 2017 (unaudited) |
522 |
339,431 |
54,638 |
(26,643) |
367,948 |
4,851 |
372,799 |
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the period |
|
|
|
|
|
|
|
|
Profit for the period |
– |
– |
– |
815 |
815 |
246 |
1,061 |
|
Other comprehensive income |
– |
– |
(16,235) |
– |
(16,235) |
(127) |
(16,362) |
|
Total comprehensive income for the period |
– |
– |
(16,235) |
815 |
(15,420) |
119 |
(15,301) |
|
Transactions with owners of the company |
|
|
|
|
|
|
|
|
Contributions by and distributions to owners |
|
|
|
|
|
|
|
|
Share based payment |
– |
– |
– |
1,086 |
1,086 |
– |
1,086 |
|
Total contributions by and distributions to owners |
– |
– |
– |
1,086 |
1,086 |
– |
1,086 |
|
Changes in ownership |
|
|
|
|
|
|
|
|
Investment of subsidiary with NCI |
– |
– |
– |
– |
– |
1 |
1 |
|
Total changes in ownership interests |
– |
– |
– |
– |
– |
1 |
1 |
|
Total transactions with owners of the Company |
– |
– |
– |
1,086 |
1,086 |
1 |
1,087 |
|
As at 30 September 2017 (audited) |
522 |
339,431 |
38,403 |
(24,742) |
353,614 |
4,971 |
358,585 |
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the period |
|
|
|
|
|
|
|
|
Profit for the period |
– |
– |
– |
3,492 |
3,492 |
79 |
3,571 |
|
Other comprehensive income |
– |
– |
(10,356) |
– |
(10,356) |
38 |
(10,318) |
|
Total comprehensive income for the period |
– |
– |
(10,356) |
3,492 |
(6,864) |
117 |
(6,747) |
|
Transactions with owners of the company |
|
|
|
|
|
|
|
|
Contributions by and distributions to owners |
|
|
|
|
|
|
|
|
Share based payment |
– |
– |
– |
874 |
874 |
– |
874 |
|
Total contributions by and distributions to owners |
– |
– |
– |
874 |
874 |
– |
874 |
|
Changes in ownership |
|
|
|
|
|
|
|
|
Acquisition of NCI without a change in control |
– |
– |
– |
– |
– |
18 |
18 |
|
Total changes in ownership interests |
– |
– |
– |
– |
– |
18 |
18 |
|
Total transactions with owners of the Company |
– |
– |
– |
874 |
874 |
18 |
892 |
|
As at 31 March 2018 (unaudited) |
522 |
339,431 |
28,047 |
(20,376) |
347,624 |
5,106 |
352,730 |
Consolidated Statement of Cash Flows
for the 6 months ended 31 March 2018
|
|
|
6 months ended 31 March 2018 (unaudited) |
6 months ended 31 March 2017 (unaudited) |
12 months ended 30 September 2017 (audited) |
|
|
Notes |
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
Profit/(loss) for the period |
|
3,571 |
(8,181) |
(7,120) |
|
Adjustments for: |
|
|
|
|
|
Depreciation of property, plant and equipment |
11 |
3,148 |
2,333 |
4,877 |
|
Amortisation of intangible fixed assets |
12 |
8,706 |
9,516 |
18,473 |
|
Loss on sale of property, plant and equipment |
|
5 |
50 |
19 |
|
Impairment loss on goodwill |
12 |
447 |
– |
– |
|
Finance income |
|
(1,730) |
(92) |
(1,495) |
|
Finance costs |
|
1,069 |
2,300 |
1,960 |
|
Share of profit of equity-accounted investees, net of tax |
|
231 |
(25) |
(27) |
|
Non-cash and other movements |
|
– |
(473) |
– |
|
Foreign exchange gains |
|
(1,314) |
(23) |
(1,434) |
|
Share based payment expense |
|
874 |
516 |
1,602 |
|
Tax credit |
9 |
(9,164) |
(672) |
(980) |
|
|
|
5,843 |
5,249 |
15,875 |
|
Decrease/(increase) in trade and other receivables |
|
4,409 |
2,985 |
(1,250) |
|
Increase in inventories and biological assets |
|
(3,188) |
(2,728) |
(1,253) |
|
(Decrease)/increase in trade and other payables |
|
(8,837) |
(3,614) |
3,665 |
|
Decrease in provisions |
|
(29) |
(176) |
(643) |
|
|
|
(1,802) |
1,716 |
16,394 |
|
Income taxes paid |
|
(1,119) |
(1,192) |
(3,015) |
|
Net cash flows (used in)/from operating activities |
|
(2,921) |
524 |
13,379 |
|
Investing activities |
|
|
|
|
|
Proceeds from investment by NCI |
|
– |
– |
188 |
|
Purchase of investments |
|
(377) |
(183) |
(2,032) |
|
Purchases of property, plant and equipment |
11 |
(12,881) |
(10,930) |
(32,740) |
|
Purchase of intangibles |
12 |
(2,249) |
(840) |
(2,423) |
|
Proceeds from sale of fixed assets |
|
131 |
148 |
245 |
|
Interest received |
|
94 |
92 |
270 |
|
|
|
|
|
|
|
Net cash flows used in investing activities |
|
(15,282) |
(11,714) |
(36,492) |
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Proceeds of share issues |
|
– |
1 |
1 |
|
Proceeds from bank or other borrowings |
|
28,273 |
– |
5,921 |
|
Share-issue costs recognised through equity |
|
– |
191 |
– |
|
Repayment of bank borrowings |
|
(5,840) |
– |
– |
|
Acquisition of non-controlling interests |
|
(32) |
– |
– |
|
Interest and finance charges paid |
|
(896) |
(683) |
(1,869) |
|
Payments to finance lease creditors |
|
(212) |
(146) |
(301) |
|
Net cash inflow/(outflow) from financing activities |
|
21,293 |
(637) |
3,752 |
|
Net increase/(decrease) in cash and cash equivalents |
|
3,090 |
(11,828) |
(19,361) |
|
Cash and cash equivalents at beginning of year |
|
18,779 |
38,140 |
38,140 |
|
Cash and cash equivalents at end of year |
|
21,869 |
26,312 |
18,779 |