-

DONEGAL INVESTMENT GROUP PLC

ANNOUNCEMENT OF RESULTS FOR THE 6 MONTHS ENDED 29 FEBRUARY 2024 25 April 2024

Donegal Investment Group plc ('DIG') ('Company') ('Group') reports its interim results for the 6 months ended 29 February 2024.

FINANCIAL PERFORMANCE

  • The Group's seed potato business delivered a satisfactory trading performance for the period ended 29 February 2024. Revenue increased by 7% (€1.6m) to €23.0m - with lower seed potato yields across Europe resulting in strong demand and pricing. The business delivered an operating profit €1.8m, a decrease of €0.2m on the prior period.
  • High levels of seasonal working capital have resulted in the group being €2.0m in overdraft at period end. It should also be noted that €2.5m in surplus cash was invested on 5 October 2023 in highly liquid Zero-Coupon German Bond which will mature on 15 June 2024.

6 months ended

6 months ended

29 February 2024

28 February 2023

Change

Continuing operations - pre exceptional

Revenue

€'000

23,024

21,436

+€1.6m

Operating profit

€'000

1,814

1,970

-€0.2m

Profit before tax

€'000

1,885

1,708

+€0.2m

Profit after tax

€'000

1,606

1,507

+€0.1m

Cash at bank (net of overdraft)

€'000

(2,000)

(3,268)

+€1.3m

Net cash/(debt)

€'000

(2,756)

(3,952)

+€1.2m

Other Investments

€'000

3,236

737

+€2.5m

Investment property carrying value

€'000

540

595

-€0.1m

Net asset value per share*

€'000

€11.73

€10.68

+€1.05

*Net assets are total equity attributable to equity holders of the Company

Enquiries:

Investors & Analysts

Padraic Lenehan

Director

Donegal Investment Group Plc

Tel: 074 9121766

Email:plenehan@donegaligroup.com

Anthony Farrell

Davy Corporate Finance

Tel: + 353 1 679 6363

Email:anthony.farrell@davy.ie

1

H1 2022/23 Performance Review

The Board is pleased with the trading performance of our seed potato business in the first six months of the year. Volumes sold were significantly impacted by the very poor harvest across Europe in the fall of 2023. However market shortages were offset by higher prices achieved, which resulted in a small decrease in profitability.

The business delivered a Profit after Tax of €1.6m, an increase of €0.1m on the prior period. As advised, we are at a high point in the working capital cycle of our seed potato business. We are pleased to note that shortages in the availability of hard currencies experienced by customers last season which delayed payments has not reoccurred.

Net asset value per share increased 9.8% to €11.73.

Outlook

The Board has noted the poor weather conditions which have delayed the planting of this years' potato crop around Europe. However, our available stock has in the main been sold at this stage and we expect the full year performance before exceptions to be in line with prior year.

We continue to invest in new varieties and markets with particular focus on how to accelerate our development in Continental Europe, East Africa, and India into the future.

AGM

The Group will announce in due course the date of its next AGM.

Geoffrey Vance

Chairman

2

Donegal Investment Group plc

Condensed consolidated statement of profit or loss and comprehensive income

for the 6 months ended 29 February 2024

Unaudited

Unaudited

Audited

6 months

6 months

12 months

Note

ended 29

ended 28

ended 31

February

February

August

Pre-

Note 10

2024

Pre-

Note 10

2023

2023

Exceptional

Exceptional

Total

Exceptional

Exceptional

Total

Total

€'000

€'000

€'000

€'000

€'000

€'000

€'000

Continuing operations

Revenue

4

23,024

-

23,024

21,436

-

21,436

29,719

Cost of sales

(15,568)

-

(15,568)

(13,531)

-

(13,531)

(19,928)

Gross profit

7,456

-

7,456

7,905

-

7,905

9,791

Other income

5

77

-

77

16

-

16

315

Other expense

6

-

-

-

(2)

-

(2)

(57)

Distribution expenses

(2,863)

-

(2,863)

(3,405)

-

(3,405)

(3,916)

Administrative expenses

(2,856)

-

(2,856)

(2,544)

-

(2,544)

(4,377)

Profit/(loss) from operating activities

Finance income

Finance expenses

Net finance income

Profit/(loss) before income tax Income tax (charge)/benefit

1,814

-

1,814

1,970

-

1,970

1,756

130

-

130

0

-

0

70

(59)

-

(59)

(262)

-

(262)

(445)

71

-

71

(262)

-

(262)

(375)

1,885

-

1,885

1,708

-

1,708

1,381

(279)

-

(279)

(201)

-

(201)

(86)

Profit for the period - continuing

4

1,606

-

1,606

1,507

-

1,507

1,295

operations

Profit for the year - from discontinued

-

-

-

-

731

731

843

operations, net of tax

Profit/(loss) for the year

1,606

-

1,606

1,507

731

2,238

2,138

3

Donegal Investment Group plc

Condensed consolidated statement of profit or loss and comprehensive income (continued)

for the 6 months ended 29 February 2024

Unaudited

Unaudited

Audited

6 months ended 29 February 2024

6 months ended 28 February 2023

12 months ended 31 August 2023

Total

Total

Total

€'000

€'000

€'000

Other comprehensive income

Items that are or may be reclassified to profit or loss

Foreign currency translation differences for foreign operations

1

53

186

Recycle of currency translation differences for foreign operations

-

-

-

Total comprehensive income for the period

1,607

2,291

2,324

Profit attributable to:

Equity holders of the Company

1,607

2,270

2,016

Non-controlling interest

(1)

(32)

122

1,606

2,238

2,138

Profit attributable to:

Continuing operations

1,606

1,507

1,295

Discontinued operations

-

731

843

1,606

2,238

2,138

Total comprehensive income attributable to:

Equity holders of the Company

1,607

2,288

2,124

Non-controlling interest

-

3

200

1,607

2,291

2,324

4

Donegal Investment Group plc

Condensed consolidated statement of profit or loss and comprehensive income (continued)

for the 6 months ended 29 February 2024

Unaudited

Unaudited

Audited

6 months

6 months

12 months

ended 29

ended 28

ended 31

February

February

August

2024

2023

2023

Total

Total

Total

Earnings per share

€'000

€'000

€'000

Basic earnings per share

(euro cent):

Continuing

105.60

101.09

88.39

Discontinued

-

48.01

55.38

105.60

149.10

143.77

Diluted earnings per share (euro

cent):

Continuing

105.60

101.09

88.39

Discontinued

-

48.01

55.38

105.60

149.10

143.77

5

Donegal Investment Group plc

Condensed consolidated statement of financial position

As at 29 February 2024

Unaudited

Unaudited

Audited

Note

29

28

31

February

February

August

2024

2023

2023

€'000

€'000

€'000

Assets

Property, plant and equipment

8

2,937

3,074

2,998

Investment property

9

540

595

540

Goodwill

500

500

500

Intangible assets

117

119

119

Investment in associates

-

-

224

Other investments

3,236

737

737

Total non-current assets

7,330

5,025

5,118

Inventories

1,749

972

835

Biological assets

-

-

1,366

Trade and other receivables

19,474

17,497

5,385

Contingent consideration receivable

-

3,110

-

Cash at bank

3,223

6,104

6,942

Deferred tax asset

8

9

8

Total current assets

24,454

27,692

14,536

Total assets

31,784

32,717

19,654

Equity

Share capital

197

206

197

Share premium account

2,975

2,975

2,975

Other reserves

(721)

1,766

(682)

Retained earnings

15,394

11,316

13,796

Total equity attributable to equity holders of the

Company

17,845

16,263

16,286

Non-controlling interest

(574)

(672)

(574)

Donegal Investment Group plc

6

Condensed consolidated statement of financial position (continued)

As at 29 February 2024

Total equity

17,271

15,591

15,712

Liabilities

Loans and borrowings

489

472

548

Deferred income

147

136

153

Total non-current liabilities

636

608

701

Loans and borrowings

267

212

254

Trade and other payables

8,018

6,845

2,975

Bank overdraft

5,222

9,372

-

Current tax

370

89

12

Total current liabilities

13,877

16,518

3,241

Total liabilities

14,513

17,126

3,942

Total equity and liabilities

31,784

32,717

19,654

7

Donegal Investment Group plc

Condensed consolidated statement of changes in equity

for the 6 months ended 29 February 2024

Other un-

Share

Trans-

Reserve

Reval-

Fair

Share

Non-

Share

denominated

premium

lation

for own

uation

value

option

Retained

controlling

Total

capital

capital

account

reserve

shares

reserves

reserve

reserve

earnings

Total

interest

equity

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

Balance at 1 September 2023

197

1,140

2,975

(1,813)

-

-

-

-

13,787

16,286

(574)

15,712

Total comprehensive income

for the period

Profit for the period

-

-

-

-

-

-

-

-

1,607

1,607

(1)

1,606

Other comprehensive income

Foreign currency translation

differences for foreign

operations

-

-

-

-

-

-

-

-

-

-

1

1

Other comprehensive income

-

-

-

-

-

-

-

-

-

1

1

Total comprehensive income

for the period

-

-

-

-

-

-

-

-

1,607

1,607

-

1,607

Transactions with owners

recorded directly in equity

Contributions by and

distributions to owners

Purchase of treasury shares

-

-

-

-

-

-

-

(48)

-

(48)

-

(48)

Total contributions by and

distributions to owners

-

-

-

-

-

-

-

(48)

-

(48)

-

(48)

Balance at 29 February 2024

197

1,140

2,975

(1,813)

-

-

-

(48)

15,394

17,845

(574)

17,271

8

Donegal Investment Group plc

Condensed consolidated statement of changes in equity (continued)

for the 6 months ended 29 February 2024

Other un-

Share

Trans-

Reserve

Reval-

Fair

Share

Non-

Share

denominated

premium

lation

for own

uation

value

option

Retained

controlling

Total

capital

capital

account

reserve

shares

reserves

reserve

reserve

earnings

Total

interest

equity

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

Balance at 1 September 2022

206

1,131

2,975

(1,921)

(845)

3,382

-

-

9,046

13,974

(674)

13,300

Total comprehensive income

for the period

Profit for the period

-

-

-

-

-

-

-

-

2,270

2,270

(32)

2,238

Other comprehensive income

Foreign currency translation

differences for foreign

operations

-

-

-

19

-

-

-

-

-

19

34

53

Other comprehensive income

-

-

-

19

-

-

-

-

19

34

53

Total comprehensive income

for the period

-

-

-

19

-

-

-

-

2,270

2,289

2

2,291

Transactions with owners

recorded directly in equity

Contributions by and

distributions to owners

Share Redemption

-

-

-

-

-

-

-

-

-

-

-

-

Derecognition of minority

-

-

-

-

-

-

-

-

-

-

-

-

interest

Total contributions by and

distributions to owners

-

-

-

-

-

-

-

-

-

-

-

-

Balance at 28 February 2023

206

1,131

2,975

(1,902)

(845)

3,382

-

-

11,316

16,263

(672)

15,591

9

Donegal Investment Group plc

Condensed consolidated statement of cash flows

for the 6 months ended 29 February 2024

-

6 months

6 months

12 months

Note

ended 29

ended 28

ended 31

February

February

August

2024

2023

2023

€'000

€'000

€'000

Cash flows from operating activities

Profit for the period

1,606

2,238

2,138

Adjustments for:

Depreciation

216

244

450

Amortisation of intangibles

2

2

5

Amortisation of capital grant

5

23

13

Reversal of investment asset impairment

-

-

(224)

Change in fair value of investment property

-

-

55

Change in fair value of other investments

-

-

-

Net finance income

(90)

246

341

Interest charged in relation to lease arrangements

19

16

34

Loss on sale of investment property

-

2

2

Gain on sale of other investments

-

-

-

Gain on sale of property, plant and equipment

-

(10)

(42)

Profit for the year - from discontinued operations, net of tax

-

(731)

(843)

Share-based payment transactions

-

-

-

Income tax expense

279

201

86

Change in inventories

454

909

(301)

Change in trade and other receivables

(14,015)

(13,741)

(1,657)

Change in trade and other payables

5,045

3,504

73

(6,479)

(7,097)

130

Interest (paid)/refund

(40)

(32)

(76)

Income tax refund/(paid)

73

(9)

(25)

Net cash from operating activities

(6,446)

(7,138)

29

Cash flows from investing activities

Interest received

32

-

70

Dividends received

-

-

-

Proceeds from sale of investment property

225

220

220

Proceeds from repayment of loan from associate

-

-

-

Proceeds from sale of property, plant and equipment

-

48

141

Proceeds from sale of other investments

-

-

-

Disposal of discontinued operations, net of cash disposed of

-

-

3,260

Acquisition of property, plant and equipment

(68)

(27)

(125)

Acquisition of intangibles

-

-

(2)

Net cash generated/(used) in investing activities

189

241

3,564

10

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Disclaimer

Donegal Investment Group plc published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 12:10:16 UTC.