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| Date/Time | Headline | Source |
|---|---|---|
| 08-09-09 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 6681Y
Total Produce Plc
08 September 2009
TOTAL PRODUCE PLC INTERIM RESULTS FOR
6 MONTHS ENDING 30 JUNE 2009
TOTAL PRODUCE ANNOUNCES SATISFACTORY 2009 FIRST HALF RESULTS
· Revenue (including share of JVs and associates) growth of 1.2% to EUR1,311 million.
· Adjusted EBITA (i), down 4.7% to EUR26.3 million.
· Adjusted profit before tax (i), down 2.3% to EUR24.3 million.
· Adjusted earnings per share (ii), down 0.7% to 4.06 cent.
· Interim dividend maintained at 0.54 cent per share.
(i) excludes fair value movements on investment property, exceptional items and amortisation of intangible assets.
(ii) excludes fair value movements on investment property, exceptional items, amortisation of intangible assets and related tax.
Commenting on the results, Carl McCann, Chairman, said:
"We are pleased to report growth in revenue to EUR1,311 million for the first half year along with adjusted earnings per share almost unchanged at 4.06 cent per share. These results are in line with expectations and consistent with the Group's previously announced target earnings. The constant focus by Total Produce on costs has enabled the Group to overcome the tougher economic climate in various markets and to successfully meet its targets.
The Group's interim dividend is maintained at 0.54 cent per share. Total Produce is also pleased to confirm that it continues to target adjusted earnings per share in the range of 5.5 to 6.5 cent per share for the full year."
8 September 2009
For further information, please contact:
Debbie O'Brien or Sheila Gahan, Wilson Hartnell PR - Tel: +353-1-669-0030
TOTAL PRODUCE PLC INTERIM RESULTS FOR
6 MONTHS ENDING 30 JUNE 2009
2009 2008 % change
EUR million EUR million
Revenue, including Group share of joint 1,311 1,295 + 1.2%
ventures and associates
Group revenue 1,153 1,148 + 0.4%
Adjusted EBITDA (i) 32.7 34.7 - 5.7%
Adjusted EBITA (i) 26.3 27.6 - 4.7%
Adjusted profit before tax (i) 24.3 24.9 - 2.3%
Operating profit (before exceptional 22.7 24.8 - 8.3%
items)
Profit before tax (after exceptional 20.6 22.0 -6.4%
items)
Euro cent Euro cent % change
Adjusted earnings per share (ii) 4.06 4.09 - 0.7%
Basic and diluted earnings per share 3.42 3.61 - 5.3%
Interim dividend per share 0.54 0.54 No change
(i) excludes fair value movements on investment property, exceptional items and amortisation of intangible assets.
(ii) excludes fair value movements on investment property, exceptional items, amortisation of intangible assets and related tax.
Financial results and operating review
Revenue
Revenue, including Group share of joint ventures and associates ("revenue") for the six months ended 30 June 2009 increased by 1.2% to EUR1,311m helped by contributions from acquisitions in the second half of 2008. This increase was primarily offset by marginally lower like-for-like volumes in some of the Group's markets and lower translation value of non-euro revenues due to the strengthening of the euro relative to Sterling and the Swedish Krona in the period compared to the same period in 2008.
On a divisional basis, revenue in the Group's Produce Division grew by 2.8% to EUR1,252m. In this division, trading conditions have, as expected been more challenging in the current economic environment and short term larger volumes of certain lines created an excess of supply relative to demand during the first half of the year. Overall volumes in this division are up due to the contribution of acquisitions made in the second half of 2008. On a like-for-like basis volumes are slightly down with average prices lagging in some markets.
Within the Produce Division, revenue in Eurozone countries has increased due to the contribution from acquisitions in the second half of 2008. With the benefit of these acquisitions overall volumes are up, although like-for-like volumes and average prices were marginally behind. In the UK, the Produce Division has performed well despite the difficult trading conditions with positive demand for English produce. Overall volumes in the UK are up, with the contribution of bolt-on acquisitions leading to an increase in local currency revenue in the period. Like-for-like volumes are relatively flat. The strengthening of the Euro by 13% against Sterling in the period gave rise to a lower translated euro value of UK revenue. Similarly in Scandinavia, local currency sales are up helped by increased volumes, however the strengthening of the euro by 16% against the Swedish Krona in the period led to a decrease in revenue on translation.
Revenue in the Group's Consumer Goods and Healthfoods Division has decreased, reflecting the competitive trading conditions in Ireland.
Adjusted EBITA and operating profit
Adjusted EBITA (1) decreased by EUR1.3m or 4.7% to EUR26.3m on the same period in 2008. This outcome was satisfactory given the current economic environment and the strength of the euro in the period which had an impact on the translation of the non-euro results. The results included the contributions earned from prior year acquisitions whose earnings are seasonally weighted towards the first half of the year. Net adjusted EBITA margins were 2.01% compared to 2.13% in the same period in 2008, reflecting the trading conditions experienced during the first half of 2009.
Operating profit (after exceptional items) decreased to EUR22.3m in the period from EUR24.8m in the same period in 2008.
Exceptional items
The exceptional item of EUR0.4m in the period relates to the Group's share of fair value adjustments on properties held within joint ventures. Details of exceptional items are outlined in note 4 to the accompanying interim financial information and are excluded from the Group's adjusted EBITA and adjusted earnings per share calculations.
Net financial expense
Net financial expense for the year was EUR1.8m compared to EUR2.8m in the same period in 2008 due mainly to lower interest rates in the current period. Net interest cover for the period was 12.5 times (2008: 9.8 times).
Minority interest share of earnings
The EUR3.3m minority share of earnings was down EUR0.5m on the same period in 2008 due to a decrease in after tax profits in a number of the Group's non-wholly owned subsidiaries. This decrease was partially offset by the minority interest share in the after tax profits of companies acquired in the second half of 2008.
Adjusted and basic earnings per share
Adjusted earnings per share (2) amounted to 4.06 cent for the six months ended 30 June 2009, almost unchanged on the 4.09 cent recorded in the same period in 2008. This slight decrease in adjusted earnings per share was lower that the decrease in adjusted EBITA due to a lower finance expense and the lower minority interest share of after tax profits in the period. Basic earnings per share amounted to 3.42 cent compared to 3.61 cent in the same period in 2008.
Balance Sheet and Cashflow
The Group has a strong balance sheet and generates good operating cashflows from its broad geographical spread of activities.
The balance sheet has strengthened in the period with shareholders' equity increasing EUR12.8m since 31 December 2008 to EUR157.4m at 30 June 2009. The increase was due to earnings attributable to equity shareholders of EUR12.0m in the period and a gain on the translation of the net assets of foreign currency operations. This was offset by the increase in the net deficit on employee defined benefit pension schemes and the payment of the final 2008 dividend of EUR4.0m to equity shareholders of the company.
The Group's employee defined benefit pension deficit, net of deferred tax, increased by EUR2.3m since 31 December 2008, to EUR16.8m at 30 June 2009. The increase is due primarily to actuarial losses relating to changes in the assumptions underlying the calculation of the present value of scheme obligations and to pension scheme assets not achieving their expected return over the period. See note 6 of the accompanying financial information for further information. A review of the employee benefit pension schemes is currently in progress.
Net debt at 30 June 2009 was EUR82.3m compared to EUR80.0m at 30 June 2008 and EUR60.2m at 31 December 2008. Total Produce generated EUR22.9m in operating cashflows during the period before mid-year seasonal working capital outflows of EUR26.6m. The cash outflows on acquisitions and investments in subsidiaries and joint ventures along with deferred consideration payments, totalled EUR5.5m. Cash outflow on capital expenditure, net of disposals, was EUR5.9m representing a significant decrease on the net spend of EUR11.0m in the comparative period. Dividend payments to equity shareholders amounted to EUR4.0m during the period along with dividends of EUR2.8m to minority shareholders within a number of the Group's non-wholly owned subsidiaries.
Acquisitions and other developments
During the period, the Group invested EUR2.7m (including debt acquired) in a bolt on operation in Europe together with a total spend of EUR2.5m in new and existing joint ventures. The principal investment in the period was a 50% joint venture stake in ASF Holland which is involved exclusively in the soft fruit business and complements the Group's existing business in this specialist area.
Also in the period, Total Produce increased its shareholding in its South African investment in Capespan Group Limited ("Capespan") to 15.6% as a result of a share buy back by Capespan. The Capespan group is one of the world's leading marketers and exporters of fresh produce.
Buy-back
The Group continues to consider exercising its authority to buy its own shares in the market if the appropriate opportunities arise. This authority permits the Group to buy up to 10% of the issued share capital at a price which may not exceed 105% of the average price over the previous 5 trading days. Any shares which may be purchased will be acquired through a subsidiary of the Company and will be held as treasury shares and will not be cancelled. Any purchases should have a positive effect on earnings per share.
Dividend
The Board has declared an interim dividend of 0.54 cent per share, unchanged on the 2008 interim dividend. This dividend will be paid on 23 October 2009 to shareholders on the register on 25 September 2009 subject to Irish dividend withholding tax. In accordance with company law and IFRS, this dividend has not been provided for in the balance sheet at 30 June 2009.
Current Trading and Outlook
Total Produce is pleased to report growth in revenue to EUR1,311 million for the first half year along with adjusted earnings per share almost unchanged at 4.06 cent per share. These results are in line with expectations and consistent with the Group's previously announced target earnings. The constant focus by Total Produce on costs has enabled the Group to overcome the tougher economic climate in various markets and to successfully meet its targets.
The Group's interim dividend is maintained at 0.54 cent per share. Total Produce is pleased to confirm that it continues to target adjusted earnings per share in the range of 5.5 to 6.5 cent per share for the full year.
Carl McCann, Chairman
on behalf of the Board
8 September 2009
(1) Adjusted EBITA is operating profit excluding fair value movements on investment property, exceptional items, amortisation of intangible assets and before interest and tax (including the equivalent share of joint ventures). This calculation is set out in note 3 of the accompanying interim financial information.
(2) Adjusted earnings per share excludes fair value movements on investment property, exceptional items, amortisation of intangible assets and related tax on such items. This calculation is set out in note 5 of the accompanying interim financial information.
Copies of this announcement will be available from the Company's registered office at Charles McCann Building, Rampart Road, Dundalk, Co. Louth, Ireland and on our website at www.totalproduce.com.
Total Produce plc
Condensed Group Income Statement
for the half year ended 30 June 2009
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) (Audited
June 2009 June 2009 June 2009 June 2008 Dec 2008 Dec 2008 Dec 2008
Pre- Pre-
Exceptional Exceptional
EUR'000 Exceptional Total Total EUR'000 Exceptional Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Revenue, including Group share
of joint ventures and 1,310,632 _____- 1,310,632 1,294,722 2,515,694 - 2,515,694
associates
Group revenue 1,152,631 - 1,152,631 1,147,981 2,250,964 - 2,250,964
Cost of sales (999,521) ____- (999,521) (993,438) (1,951,218) - (1,951,218)
Gross profit 153,110 - 153,110 154,543 299,746 - 299,746
Operating expenses (131,651) - (131,651) (131,356) (262,412) (2,996) (265,408)
Share of profit of joint 1,287 (429) 858 1,609 2,575 (1,593) 982
ventures/associates
Operating profit 22,746 (429) 22,317 24,796 39,909 (4,589) 35,320
Net financial expense (1,752) - (1,752) (2,829) (5,509) - (5,509)
Profit before tax 20,994 (429) 20,565 21,967 34,400 (4,589) 29,811
Income tax expense (5,263) - (5,263) (5,539) (8,285) (185) (8,470)
Profit for the period 15,731 (429) 15,302 16,428 26,115 (4,774) 21,341
Attributable as follows:
Equity shareholders of the 12,024 12,686 15,357
Company
Minority interests 3,278 3,742 5,984
15,302 16,428 21,341
Earnings per share
Basic 3.42 cent 3.61 cent 4.36 cent
Fully diluted 3.42 cent 3.61 cent 4.36 cent
Adjusted fully diluted 4.06 cent 4.09 cent 6.75 cent
Total Produce plc
Condensed Group Statement of Comprehensive Income
for the half year ended 30 June 2009
(Unaudited) (Unaudited) (Audited)
6 months to 6 months to Year ended
30 June 2009 30 June 2008 31 Dec 2008
EUR'000 EUR'000 EUR'000
Movement on translation of net
equity investments and 5,923 943 (15,966)
borrowings
Revaluation gains on property,
plant and equipment, net - - 3,929
Fair value adjustment on
available for sale financial 1,957 - 62
assets
Actuarial loss on defined (3,796) (8,458) (18,403)
benefit pension schemes
Effective portion of cashflow (490) (456) 668
hedges, net
Deferred tax on items taken 1,141 850 1,389
directly to equity
Share of joint ventures'
revaluation loss on property, - - (660)
plant and equipment
Share of joint ventures'
actuarial loss on defined - - (105)
benefit pension schemes
Share of joint ventures' fair
value adjustment on available - - (3)
for sale financial assets
Share of joint ventures'
effective portion of cashflow - - (9)
hedges
Share of joint ventures'
deferred tax on items taken ___- 262
directly to equity _____-
Net income / (loss) recognised 4,735 (7,121) (28,836)
directly in equity
Profit for period 15,302 16,428 21,341
Total recognised income and 20,037 9,307 (7,495)
expense
Attributable as follows:
Equity shareholders of the 16,669 5,491 (13,923)
Company
Minority interests 3,368 3,816 6,428
20,037 9,307 (7,495)
Total Produce plc
Condensed Group Balance Sheet
as at 30 June 2009
(Unaudited) (Unaudited) (Audited)
30 June 2009 30 June 2008 31 Dec 2008
EUR'000 EUR'000 EUR'000
Assets
Non-current assets
Property, plant and equipment 124,835 130,828 121,679
Investment property 13,750 12,077 12,339
Goodwill and intangible assets 124,877 123,836 119,096
Investments in joint ventures 39,455 43,152 35,913
and associates
Equity investments 10,217 9,439 8,180
Other receivables 3,813 1,328 3,286
Deferred tax assets 7,284 5,169 6,168
Employee benefit assets 1,596 2,962 3,237
Total non-current assets 325,827 328,791 309,898
Current assets
Inventories 42,740 42,700 39,628
Trade and other receivables 311,992 310,556 271,327
Corporation tax receivable - - 1,577
Derivative financial 24 98 1,370
instruments
Cash and cash equivalents 90,954 67,598 85,293
Total current assets 445,710 420,952 399,195
Total assets 771,537 749,743 709,093
Equity
Called-up share capital 3,519 3,519 3,519
Share premium 252,574 252,574 252,574
Retained earnings and other (98,717) (90,755) (111,486)
reserves
Total equity attributable to
equity shareholders of the 157,376 165,338 144,607
Parent
Minority interests 54,070 47,893 53,528
Total equity 211,446 213,231 198,135
Liabilities
Non-current liabilities
Interest-bearing loans and 98,827 108,110 79,512
borrowings
Deferred government grants 1,969 2,127 1,932
Other payables 3,177 3,412 3,118
Provisions 10,276 8,095 8,366
Corporation tax payable 8,185 7,772 8,185
Deferred tax liabilities 20,476 18,957 20,820
Employee benefit liabilities 21,612 11,324 19,915
Total non-current liabilities 164,522 159,797 141,848
Current liabilities
Interest-bearing loans and 74,436 39,495 65,981
borrowings
Trade and other payables 314,529 329,086 298,496
Provisions 4,764 3,087 3,024
Derivative financial 282 1,267 174
instruments
Corporation tax payable 1,558 3,780 1,435
Total current liabilities 395,569 376,715 369,110
Total liabilities 560,091 536,512 510,958
Total liabilities and equity 771,537 749,743 709,093
Total Produce plc
Condensed Group Statement of Changes in Equity
for the half year ended 30 June 2009
For the half year ended 30
June 2008 Currency translation Share-
(Unaudited) Share reserve Other holders
capital Share EUR'000 Revaluation Demerger reserve equity Retained funds Minority interests Total
EUR'000 Premium reserve EUR'000 reserves Earnings EUR'000 EUR'000 equity
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Balance at 31 December 2007 3,519 252,574 (3,407) 14,152 (122,521) 31 19,366 163,714 45,997 209,711
Total recognised income and - - 790 - - (612) 5,313 5,491 3,816 9,307
expense
Minority arising on - - - - - - - - 1,020 1,020
acquisition
Dividends paid - - - - - - (4,047) (4,047) (2,940) (6,987)
Share-based payments - - - - _______- 180 - 180 - 180
Balance at 30 June 2008 3,519 252,574 (2,617) 14,152 (122,521) (401) 20,632 165,338 47,893 213,231
For the half year ended 30 Currency translation Other Share-holders
June 2009 Share Share premium reserve Revaluation reserve Demerger equity Retained earnings funds Minority Total
(Unaudited) capital EUR'000 EUR'000 EUR'000 reserve reserves EUR'000 EUR'000 interests equity
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Balance at 31 December 2008 3,519 252,574 (19,354) 16,568 (122,521) 816 13,005 144,607 53,528 198,135
Total recognised income and - - 5,897 - - 1,502 9,270 16,669 3,368 20,037
expense
Minority arising on - - - - - - - - (51) (51)
acquisition
Dividends paid - - - - - - (4,047) (4,047) (2,775) (6,822)
Share-based payments - - - - _______- 147 - 147 - 147
Balance at 30 June 2009 3,519 252,574 (13,457) 16,568 (122,521) 2,465 18,228 157,376 54,070 211,446
For the year ended 31 December Currency translation Other Share-
2008 Share Share premium reserve Revaluation reserve Demerger reserve equity Retained earnings holder Minority interests Total
(Audited) capital EUR'000 EUR'000 EUR'000 EUR'000 reserves EUR'000 funds EUR'000 equity
EUR'000 EUR'000 EUR'000 EUR'000
Balance at 31 December 2007 3,519 252,574 (3,407) 14,152 (122,521) 31 19,366 163,714 45,997 209,711
Total recognised income and - - (15,947) 2,416 - 504 (896) (13,923) 6,428 (7,495)
expense
Minority arising on - - - - - - - - 7,154 7,154
acquisition
Buyout of minority
shareholders on acquisition - - - - - - 482 482 (2,474) (1,992)
Contribution by minority - - - - - - - - 1,770 1,770
interests
Dividends paid - - - - - - (5,947) (5,947) (5,347) (11,294)
Share-based payments - - - - - 281 - 281 - 281
Balance at 31 December 2008 3,519 252,574 (19,354) 16,568 (122,521) 816 13,005 144,607 53,528 198,135
Total Produce plc
Condensed Group Cash Flow Statement for the half year ended 30 June 2009
(Unaudited) (Unaudited) (Audited)
30 June 2009 30 June 2008 31 Dec 2008
EUR'000 EUR'000 EUR'000
Operating activities
Profit before tax 20,565 21,967 29,811
Depreciation of property, 6,375 7,060 13,911
plant and equipment
Impairment of property, plant - - 2,176
and equipment
Fair value movement on - - (2,497)
investment property
Impairment of available for - - 1,169
sale equity investments
Goodwill written off on - - 396
termination of business
Amortisation of intangible 2,500 2,205 4,776
assets (excluding JV's)
Amortisation of research and 237 223 382
development
Amortisation of grants (169) (288) (508)
Movement on provisions (1,943) - 1,943
Equity settled share-based 147 180 281
compensation expense
Contributions to defined (2,029) (2,051) (4,439)
benefit pension schemes
Defined benefit pension 1,281 823 1,677
schemes expense
Net (gain)/loss on disposal of (163) (323) 109
plant and equipment
Net loss/(gain) on non-hedging
derivative financial 115 427 (442)
instruments
Net interest expense 1,752 2,829 5,509
Income from available for sale 352 271 270
equity investments
Share of profits of joint (858) (1,609) (982)
ventures and associates
Income tax paid (3,274) (256) (7,071)
Net interest paid (2,002) (3,597) (6,032)
Cash from operations before
working capital movements 22,886 27,861 40,439
(Increase) / decrease in (26,589) (14,799) 12,043
working capital
Cash flows from operating (3,703) 13,062 52,482
activities
Investing activities
Acquisition of subsidiaries, (2,718) (1,316) (17,922)
net of cash acquired
Acquisition of and investment
in joint ventures, including (2,512) (2,666) (3,679)
loans
Acquisition of trade (16) (13) (47)
investment
Payments of deferred (292) (359) (1,677)
consideration
Acquisition of property, plant (6,422) (11,765) (16,380)
and equipment
Proceeds from disposal of 555 797 1,704
property, plant and equipment
Dividends received from joint 1,695 1,911 2,017
ventures/associates
Research and development (178) (165) (347)
expenditure capitalised
Government grants received 208 - 55
Cash flows from investing (9,680) (13,576) (36,276)
activities
Financing activities
Net increase / (decrease) in 15,659 (12,702) 3,577
borrowings
Capital element of finance (202) (423) (679)
lease repayments
Dividends paid to equity (4,047) (4,047) (5,947)
shareholders
Capital contribution by - - 750
minority interests
Dividends paid to minority (2,775) (2,940) (5,347)
interests
Cash flows from financing 8,635 (20,112) (7,646)
activities
Net (decrease) / increase in
cash and cash equivalents (4,748) (20,626) 8,560
Cash and cash equivalents,
including bank overdrafts at 77,221 74,111 74,111
start of period
Exchange translation 1,050 60 (5,450)
adjustment
Cash and cash equivalents,
including bank overdrafts at 73,523 53,545 77,221
end of period
Total Produce plc
Notes supporting the interim condensed financial statements
for the half year ended 30 June 2009
1. Basis of preparation
The interim financial information has been prepared in accordance with the recognition and measurement requirements of IAS 34 Interim Financial Reporting, as adopted by the EU. The accounting policies and methods of computation adopted in the preparation of the financial information are consistent with those set out in the Group's consolidated financial statements for the year ended 31 December 2008 which were prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU Commission except as noted below.
The preparation of the interim financial information requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of certain assets, liabilities, revenues and expenses together with disclosure of contingent assets and liabilities. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The interim financial information for both the six months ended 30 June 2009 and the comparative six months ended 30 June 2008 are unaudited. The financial information for the year ended 31 December 2008 represents an abbreviated version of the Group's statutory financial statements for that year. Those statutory financial statements contained an unqualified audit report and have been filed with the Registrar of Companies.
Changes in accounting policies
A number of changes in accounting policies arise in the current period from the adoption of new or revised International Financial Reporting Standards as follows:
* IFRS 8 Operating segments which became effective on 1 January 2009, sets out the requirements for disclosure of financial and descriptive information about an entity's operating segments, its products and services, the geographical areas in which it operates and its major customers. This standard requires operating segments to be identified on the basis of internal reports that are regularly reviewed by the chief operating decision maker of the Group in order to allocate resources to the segments and to assess their performance. This new standard will impact the Group, on the presentation of the full year results for the year ended 31 December 2009 and the Group will be revising the way it reports information on its segments.
* IFRS 23 Borrowing costs has been revised with effect from 1 January 2009 and the Group elected to avail of the option to early adopt this standard in its prior year financial statement for the year ended 31 December 2008. The Group is now required to capitalise borrowing costs, to the extent that they are directly attributable to the acquisition, production and construction of a qualifying asset, as part of the cost of that asset.
* IAS 1 Presentation of financial statements has been revised with effect from 1 January 2009. The standard introduces a "statement of comprehensive income" and effectively replaces the statement of recognised income and expense. The Group has adopted the "two separate statements" approach of presenting income and expenses within an income statement as before and components of other comprehensive income within a statement of comprehensive income. The Group also now presents a statement of changes in equity as a primary statement.
The financial information is presented in euro, rounded to the nearest thousand.
2. Translation of foreign currencies
The financial information of the Group is presented in euro. Results and cashflows of foreign currency denominated operations have been translated into euro at the average exchange rates for the period, and the related balance sheets have been translated at the rates of exchange ruling at the balance sheet date. Adjustments arising on the translation of the results of foreign currency denominated operations at average rates, and on restatement of the opening net assets at closing rates, are dealt with within a separate translation reserve within equity, net of differences on related foreign currency borrowings. All other translation differences are taken to the income statement. The principal rates used in the translation of results and balance sheets into euro were:
Average rate
6 months to Closing rate
30 June 30 June % change 30 June 30 June % change
2009 2008 2009 2008
Pound Sterling 0.888 0.785 (13.1%) 0.852 0.967 11.9%
Swedish Krona 10.854 9.373 (15.8%) 10.868 10.992 1.1%
Czech Koruna 27.051 25.166 (7.5%) 26.013 26.843 3.1%
Danish Kroner 7.453 7.454 - 7.447 7.442 -
South African Rand 12.281 11.736 (4.6%) 10.832 12.850 15.7%
3. Adjusted profit before tax and adjusted EBITA
(Unaudited) (Unaudited) (Audited)
6 months to 6 months to Year ended
30 June 2009 30 June 2008 31 Dec 2008
EUR'000 EUR'000 EUR'000
Profit before tax per income 20,565 21,967 29,811
statement
Adjustments
Exceptional items before share
of joint venture tax (note 4) 429 - 4,454
Group share of tax charge of
joint ventures and associates 702 736 1,495
Amortisation of intangibles
including share of joint 2,629 2,205 5,082
ventures
Adjusted profit before tax 24,325 24,908 40,842
Exclude
Net financial expense - Group 1,752 2,829 5,509
Net financial expense /
(income) - share of joint 259 (101) 72
ventures and associates
Adjusted EBITA 26,336 27,636 46,523
For the purpose of assessing the Group's performance, Total Produce management believe that adjusted profit before tax, and adjusted earnings per share (note 5 below) are the most appropriate measures of the underlying performance of the Group, excluding exceptional items and amortisation charges. Similarly, adjusted earnings before interest, tax, exceptional items, fair value movements on investment property and amortisation (adjusted EBITA) are a more indicative reflection of the underlying operations of the Group.
4. Exceptional items
During the period, the Group incurred an exceptional charge of EUR429,000 relating to the fair value movement of an investment property within a joint venture. Details of this exceptional item, along with exceptional items of EUR4,589,000 booked in the full year income statement in 2008, are detailed below. These items have been classified in the Group income statement as exceptional given their materiality and in order to distinguish them from income in the Group's core activities.
(Unaudited (Unaudited) (Audited)
6 months to 6 months to Year ended
30 June 2009 30 June 2008 31 Dec 2008
EUR'000 EUR'000 EUR'000
Costs associated with - - (2,148)
termination of activities
(note a)
Impact of fair value
adjustments of investment
property and impairment of
property, plant and equipment - - 321
within subsidiaries (note b)
Share of joint ventures' fair
value adjustments on (429) - (1,458)
investment property (note b)
Impairment of available for
sale equity investments (note ___- ____- (1,169)
c)
Total exceptional items
(before joint ventures tax) (429) - (4,454)
Share of movement in joint
venture's deferred tax on ___- ___- (135)
investment property
Total exceptional items (after (429) - (4,589)
joint venture tax)
Tax on exceptional items - ____- ___- (185)
subsidiaries
Total exceptional items (net (429) - (4,774)
of tax)
(a) Costs associated with termination of activities
During 2008, the Group terminated an operation in the Consumer Goods and Healthfoods Division and also closed a number of smaller operations in its UK Produce Division. The total cost of these closures amounted to EUR2,148,000.
(b) Fair value of movements of investment property and property, plant and equipment including joint ventures
During the period, the Group recognised a fair value loss on an investment property held within a joint venture resulting in an expense of EUR429,000 in the Group income statement. During 2008, the Group recognised a fair value adjustment of EUR1,458,000 relating to the revaluation of investment properties within its joint ventures.
During 2008, the Group revalued land and buildings, including investment property in Group companies, resulting in a net credit of EUR321,000 in the Group income statement. This net credit consists of a EUR2,176,000 impairment charge arising on property, plant and equipment, and fair value gains on investment property in the amount of EUR2,497,000.
(c) Impairment of available for sale equity investments
In 2008, the Group recognised an impairment of EUR1,169,000 in an available for sale equity investment. This represented a EUR1,107,000 reduction in the carrying value of the investment together with the elimination of a EUR62,000 fair value deficit recognised in equity in the previous year. The fair value of the investment was measured in the foreign currency in which it is denominated. On translation to euro using the closing rate, a foreign exchange loss resulted in an overall fair value decline.
5. Earnings per share
(Unaudited) (Unaudited) (Audited)
6 months to 6 months to Year ended
30 June 2009 30 June 2008 31 Dec 2008
EUR'000 EUR'000 EUR'000
Profit attributable to equity
shareholders of the Company 12,024 12,686 15,357
No. of shares No. of shares No. of shares
'000 '000 '000
Weighted average number of 351,887 351,887 351,887
shares for the period
cent cent cent
Basic and fully diluted 3.42 3.61 4.36
earnings per share
(Unaudited) (Unaudited (Audited)
6 months to 6 months to Year ended
30 June 2009 30 June 2008 31 Dec 2008
EUR'000 EUR'000 EUR'000
Calculation of adjusted fully diluted earnings per
share
Profit attributable to equity
shareholders of the Company 12,024 12,686 15,357
Adjustments
Exceptional items (note 4) 429 - 4,589
Amortisation of intangible
assets (including share of 2,629 2,205 5,082
joint ventures)
Tax effect of exceptional
items and amortisation charges (579) (500) (907)
Minority impact of exceptional
items and amortisation and (202) ____- __(368)
related tax
Earnings for calculation of
adjusted fully diluted 14,301 14,391 23,753
earnings per share
cent cent cent
Adjusted fully diluted 4.06 4.09 6.75
earnings per share
Adjusted fully diluted earnings per share exclude the impact of fair value movements on investment property, exceptional items, intangible asset amortisation, related tax charges/credits and the impact of share options with a dilutive effect.
Share options outstanding at 30 June 2009, 31 December 2008 and 30 June 2008 of 7,485,000 are anti-dilutive in all periods and therefore the weighted average number of shares outstanding applied in the calculation of basic and diluted adjusted earnings per share is the same.
6. Employee post employment benefits
(Unaudited (Unaudited) (Audited)
6 months to 6 months to Year ended
30 June 2009 30 June 2008 31 Dec 2008
EUR'000 EUR'000 EUR'000
Deficit at beginning of period (16,678) (1,440) (1,440)
Net current/past service cost
less finance income recognised (1,281) (823) (1,677)
in income statement
Contributions to schemes 2,029 2,051 4,439
Actuarial losses recognised in
statement of comprehensive (3,796) (8,458) (18,403)
income
Foreign currency movements __(290) __308 ___403
Deficit at end of period (20,016) (8,362) (16,678)
Related deferred tax asset __3,241 __1,380 __2,207
(net)
Net deficit at end of period (16,775) (6,982) (14,471)
This table summarises the total combined movements in the net asset/deficit of the Group's various defined benefit pension schemes, in Ireland, the UK and Continental Europe. The Group's balance sheet at 30 June 2009 reflects net pension assets of EUR1.6m in respect of schemes in surplus and net pension liabilities of EUR21.6m in respect of schemes in deficit, resulting in a net deficit of EUR20.0m before deferred tax above.
The current/past service cost and interest cost on the scheme's obligations is charged in the Income Statement, net of the finance income on scheme assets. The actuarial losses are recognised in the Statement of Comprehensive Income, in accordance with the amendment to IAS 19 Actuarial Gains and Losses, Group Plans and Disclosures.
The estimation of employee benefit costs requires the use of actuaries and the determination of appropriate assumptions such as discount rates and expected future rates of return as explained and set out in note 26 of the 2008 annual report. The assumptions at 30 June 2009 remain unchanged from the assumptions at 31 December 2008, with the exception of the discount rate used to calculate the present value of liabilities of the Irish pension schemes which increased from 5.80% to 5.90% and rate of inflation and expected rate of increase in pension used to calculate the present value of liabilities in the UK schemes increased from 2.75% to 3.25%.
The increase in the pension deficit during the period ended 30 June 2009 was principally due to actuarial losses of EUR3.8m (before deferred tax). The actuarial losses, primarily relate to the changes to UK assumptions highlighted above, underlying the calculation of the present value of the UK scheme liabilities and also due to pension scheme assets not achieving their expected returns in the period.
A review of the employee benefit pension schemes is currently in progress.
7. Dividends
The Board has approved an interim dividend of 0.54 cent per share (2008: 0.54 cent per share). This dividend, which will be subject to Irish withholding tax rules, will be paid on 23 October 2009 to shareholders on the register at 25 September 2009.
In accordance with company law and IFRS, this dividend has not been provided for in the balance sheet at 30 June 2009.
8. Analysis of movement in net debt in the period
31 December Cash Acquisitions & 30 June
2008 Flow Non-cash disposals Translation 2009
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Bank balances and call
deposits 85,293 3,977 - - 1,684 90,954
Overdrafts (8,072) (6,133) - (2,592) (634) (17,431)
Cash and cash equivalents per
cash flow statement 77,221 (2,156) - (2,592) 1,050 73,523
Bank loans - non current (79,112) (4,894) (12,480) - (1,980) (98,466)
Bank loans - current (57,564) (10,765) 12,480 - (824) (56,673)
Finance leases (745) 202 (109) - (41) (693)
Total interest bearing
borrowings (137,421) (15,457) (109) - (2,845) (155,832)
Net debt (60,200) (17,613) (109) (2,592) (1,795) (82,309)
31 December Cash Acquisitions & 30 June
2007 Flow Non-cash disposals Translation 2008
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Bank balances and call
deposits 87,104 (19,428) - - (78) 67,598
Overdrafts (12,993) (1,198) - - 138 (14,053)
Cash and cash equivalents per
cash flow statement 74,111 (20,626) - - 60 53,545
Bank loans - non current (109,153) 12,609 (10,336) - (545) (107,425)
Bank loans - current (35,478) 93 10,336 - 163 (24,886)
Finance leases (1,493) 423 (210) - 39 (1,241)
Total interest bearing
borrowings (146,124) 13,125 (210) - (343) (133,552)
Net debt (72,013) (7,501) (210) - (283) (80,007)
9. Businesses acquired and other developments
During the period, the Group invested EUR2.7m (including debt acquired) on a 100% interest in a produce operation in Europe. This bolt-on acquisition is expected to complement the Group's existing business interests in this region. The purchase method of accounting has been applied for this acquisition. The provisional fair value of the identifiable assets and liabilities acquired amounts to EUR0.1m, consisting predominantly of net working capital, offset by bank overdrafts and other payables.
Also during the period, the Group invested EUR2.5m in new and existing joint ventures including loans to joint ventures. The main investment was the acquisition of a 50% joint venture interest in ASF Holland B.V. ("ASF") which is an unlisted company based in the Netherlands and involved exclusively in the soft fruit business, complementing the Group's existing business in this specialist area. The equity method of accounting has been applied. The provisional fair value of the Group's share of the identifiable assets and liabilities acquired amounts to EUR1.4m, consisting predominantly of intangible assets.
Other than the valuation of intangible assets, there are no material differences between the fair value of assets and liabilities acquired and the acquirees carrying value at acquisition date. The initial assignment of fair values to identifiable net assets acquired has been performed on a provisional basis in respect of these acquisitions given the timing of closure of these deals, and will be finalised within twelve months from the acquisition date, as permitted by IFRS 3 Business Combinations. The post-acquisition impact of these acquisitions on Group profit for the period is not sufficiently material to warrant separate disclosure.
Also in the period, Total Produce increased its shareholding in its South African investment in Capespan Group Limited to 15.6% as a result of a share buy back by Capespan Group Limited. The Capespan group is one of the world's leading marketers and exporters of fresh produce.
10. Accounting estimates and judgements
The preparation of financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses.
Management discussed with the Audit Committee the development, selection and disclosure of the Group's critical accounting policies and estimates and the application of these policies and estimates.
Particular areas which are subject to accounting estimates and judgements in these financial statements are areas such as impairment testing, post employment benefits, fair values of properties, fair value of equity investments and in relation to judgemental provisions and accruals particularly those relating to deferred consideration obligations based on earn out arrangements.
Impairment testing assets, particularly of goodwill, involves estimating the future cash flows for a cash generating unit and an appropriate discount rate to determine a recoverable value. The estimation of employee benefit costs requires the use of actuaries and the determination of appropriate assumptions such as discount rates and expected future rates of return are explained in note 6 to this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR CKOKNDBKBCCK
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| 02-09-09 | RNS |
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RNS Number : 3662Y Total Produce Plc 02 September 2009
TOTAL PRODUCE PLC 2 September 2009 Stock Exchange Announcement Total Produce plc will be announcing its interim results for the six months to 30 June 2009 on Tuesday, 8 September 2009. M. Reid Company Secretary This information is provided by RNS The company news service from the London Stock Exchange END
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| 06-07-09 | RNS |
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RNS Number : 1357V Total Produce Plc 06 July 2009 Stock Exchange Announcement TOTAL PRODUCE plc Management appointments at Total Produce plc Total Produce plc, the European fresh produce group, is pleased to announce the following management appointments. Frank Gernon, who is 55 and is currently Finance Director, will become Director - Financial Strategy and Development. Frank is an FCCA and joined the Group in 1973 and has been Finance Director since 1998. Frank will focus on the strategic and development aspects of the Group's financial management. Frank Davis, who is 49, will be appointed Finance Director of Total Produce. Frank joined the Group in 1983, with experience both in practice and industry. He is an FCCA with an MA in financial control and LLB. He is currently the Group Chief Financial Officer and Company Secretary, having previously held various senior accounting and financial positions in the Group. Marie Reid, aged 37, who is an FCA with MAcc and BComm degrees, will be appointed Company Secretary. Marie joined the Group in 2004 and is currently the Assistant Company Secretary. These appointments will be effective from 1st August 2009 and are key appointments as the Group continues its strategy to significantly increase the size of its business. . 06 July 2009 For further information, please contact: Brian Bell, Wilson Hartnell PR Tel: +3531 669 0030 The details specified by Schedule 2(g) of the AIM and IEX Rules in respect of the appointment of Frank Davis, save as set out below, there are no items requiring disclosure in accordance with Schedule 2 (g) iii,iv,vi - viii of the AIM rules and the IEX Rules. At the time of appointment to the Board, Frank Davis holds 253,213 EUR0.01 shares in the Company, and 160,000 share options exercisable at a price of EUR0.65 each between 20/09/2010 and 19/09/2017 and 140,000 shares options exercisable at a price of EUR0.60 each between 05/03/2011 and 04/03/2018. Frank Davis has held the following directorships or partnerships in the past five years:-
Sunpak & Mayfield Fresh Produce Ltd FII Holdings Limited
Total Produce International Limited FII (Market) Limited
Holdings Limited
Total Produce Management Services Florexport (Ireland) Limited
Ltd
Beresford Software Development Ltd Fyffes Banana Processing Limited
Total Produce Ireland Pension Trust Helston Securities Limited
Ltd
Khet - Se Agriproduce India Pvt Ltd Irish Elk Products (1975) Ltd
Limited
Capespan International Holdings Swords Property Developments Limited
Ltd.
Redbridge Produce & Flowers Limited Total Produce Plc
Total Produce Holdings (UK) Limited Charles McCann Limited
Fyffes Redbridge Glasgow Limited** European Fruit Holding NV Total Produce Nordic AB Everfresh AB Total Produce Nordic A/S Interbanan A/S Valby Bananimport A/S Brdr. Lembcke A/S Lemflora A/S Lemflora Aarhus A/S TPN Ejendomme ApS
In relation to Schedule 2(g)v, Frank Davis ceased to be a director of J W Swithenbank Limited in 1999 when the Fyffes investment in J W Swithenbank Limited was acquired by the other shareholders. This company subsequently went into liquidation. 06 July 2009 This information is provided by RNS The company news service from the London Stock Exchange END
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| 16-06-09 | RNS |
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RNS Number : 0079U Total Produce Plc 16 June 2009 16 June 2009 Total Produce plc The Manager, The Irish Stock Exchange, 28 Anglesea Street, DUBLIN 2. Dear Sirs, Irish Life Investment Managers have advised Total Produce plc in Form TR-I dated 16 June 2009, that as of 26 May 2009, their cumulative holding on behalf of third party, discretionary clients was 14,541,598 EUR01 cent ordinary shares, being 4.13% of the issued share capital of the company. Yours truly, Total Produce plc Frank Davis Company Secretary. This information is provided by RNS The company news service from the London Stock Exchange END
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MUMBAI (Thomson Financial) - India's Tata Chemicals Ltd is planning a major foray into the wholesale business of fruits and vegetables in the country through its 50:50 joint venture with Irelands Total Produce PLC called Khetse Agriproduce India, local business daily The Economic Times reported.
The newspaper quoted Homi Khusrokhan, managing director of Tata Chemicals, saying Khetse will invest almost 7.5 bln rupees to set up 50 cash-and-carry distribution centres by 2012. Khusrokhan also said the venture would not enter into the retail business and may consider exporting the surplus fruits and vegetables produced in the country. The paper said the first distribution centre will be opened at Ludhiana in the northern Indian state of Punjab in April 2008. TATA ar MASSIVE, OWN CORUS STEEL, TAKING OVER JAG and Landrover.A multintional conglomerate,This is good news for TOT in an expanding market.Long term investment but Indias the place to be . Good old Mc Canns IRELAND and INDIA like it. K.C.M. More | View thread (1) | Respond | Login to Vote up | Login to Vote down |
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Well well, thats a good sign to advance in a falling market.
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Mike , I believe that we have 3 winners here in TOT, BlK, and Fyffes. All very well run . All seem to be stockbrokers chooice in their sector for long term growth . I would not dare to advice you as to which to dilute from .I hold 10000 shares of each and am looking at increasing dramatically, but I am looking at eveything in my portolio as a 5 years min, exposure. I expect that there will be more acquisitions particularily with BLK and TOT .
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This stock keeps advancing since its Demerger from Fyffes, which is also on the move,Blackrock too.
These 3 stocks combined are now £1.73 a share . Whats going on, any one any views I am baffled, I have been in FYFFES for the past 7 years or so and bought in at about 60 odd pence, so have had a good ride to date .Dont want to loose any of my paper profits, and thinking to unload a few, any views please. Tiger, Ben Collie and others Come Back . K.C.M. More | View thread (2) | Respond | Login to Vote up | Login to Vote down |
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The contents of the postings summarised here represents the opinions of the authors and not of Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
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