-
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
Attachments
- Original Link
- Original Document
- Permalink
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.