TIDMOGN
RNS Number : 5961N
Origin Enterprises Plc
26 September 2023
Origin Enterprises plc
PRELIMINARY RESULTS STATEMENT
Strong operational delivery, robust cash generation; adjusted
EPS of 53.16 cent, at the top end of guidance
Dublin, London, 26 September 2023: Origin Enterprises plc
('Origin' or 'the Group'), the international Agronomy-Services
group, providing specialist advice, inputs and digital solutions to
promote sustainable land use, announces its results for the
financial year ended 31 July 2023 ('FY23').
Results highlights for FY23
-- Strong Group performance delivering operating profit(1) of EUR90.8 million
-- Increase in Group revenue of 4.9% to EUR2.5 billion
-- Adjusted diluted earnings per share(3) of 53.16 cent
-- Strong cash generation and conversion with free cash flow of
EUR104.4 million (free cash flow conversion of 178.2%)
-- Year end net cash(4) position of EUR53.2 million (FY22: EUR43.4 million)
-- Completion of four complementary acquisitions in the Group's
strategically important Amenity, Environmental and Ecology
business
-- Strong ESG progress with improved external ESG ratings
-- Proposed final dividend of 13.65 cent per share with total FY23 dividend of 16.8 cent
-- Completion of EUR20.0 million share buyback
Commenting on FY23 performance, Origin's Chief Executive
Officer, Sean Coyle said:
"Origin delivered a strong overall performance in declining
commodity markets. The Group delivered an operating profit of
EUR90.8 million resulting in adjusted diluted earnings per share of
53.16 cent, at the top end of our guidance.
Effective operational execution helped deliver a robust cash
performance with a net cash position of EUR53.2 million at year
end. This result was driven by a strong free cash flow of EUR104.4
million which included a working capital inflow of EUR43.9 million,
as fertiliser raw materials and feed prices decreased globally,
combined with favourable timing impacts of purchases and sales.
We continue to pursue a disciplined approach to capital
allocation to drive shareholder returns. We made strong progress
against a number of our strategic objectives with four
acquisitions, totalling EUR30.1 million, in our Amenity,
Environmental and Ecology business. These acquisitions complement
our organic growth strategy and broaden our expertise and
capabilities in the growing market for ecological and environmental
products and services. From our strong cash flow, we also returned
EUR38.0 million to shareholders this year through a combination of
share buybacks and dividends.
We have, however, taken the difficult decision to close our
Ukraine business at the end of September. This decision was taken
after much deliberation, given the reduced activity levels and the
market dynamics over recent years which have resulted in the
business being loss making, with little evidence that the trading
environment will improve.
Thanks to the continued dedication of all our staff, we continue
to drive sustainable growth and are on track to deliver our
strategic ambitions as set out in our 2022 Capital Markets Day. We
delivered a return on capital employed in FY23 within our targeted
range at 12.6% and we will continue to invest for growth across our
existing operations and strengthen our earnings potential through
margin accretive acquisitions."
Constant
2023 2022 Change Currency
Results Summary EUR'000 EUR'000 % %
Group revenue 2,456,168 2,342,102 4.9% 6.5%
Operating profit(1) 90,791 119,740 (24.2%) (24.4%)
Associates and joint venture(2) 4,040 6,845 (41.0%) (40.4%)
Total group operating profit(1) 94,831 126,585 (25.1%) (25.2%)
Finance expense, net (12,963) (11,057) (17.2%) (18.6%)
Profit before tax(1) 81,868 115,528 (29.1%) (29.4%)
Basic EPS (cent) 45.24 65.40 (30.8%) (31.1%)
Adjusted diluted EPS (cent)(3) 53.16 71.53c (25.7%) (25.9%)
Return on capital employed
(%) 12.6% 18.3% (570bps)
Group net cash(4) 53,175 43,434 9,741
Operating margin(1) (%) 3.7% 5.1% (140bps)
Free cash flow (EUR'000) 104,418 108,489 (4,071)
Dividend per ordinary share
(cent) 16.80c 16.00c 5.0%
Consistent with previous years, the Group will issue a Q1
Trading Update for FY24 on the date of the AGM, 16 November
2023.
(1) Before amortisation of non-ERP intangible assets and
exceptional items
(2) Profit after interest and tax before exceptional items
(3) Before amortisation of non-ERP intangible assets, net
of related deferred tax (2023: EUR11.0m, 2022: EUR13.0m)
and exceptional items, net of tax (2023: charge of EUR0.6m,
2022: credit of EUR2.8m)
(4) Group net cash/(bank debt) before impact of IFRS 16 Leases
Conference Call and Webcast details:
The management team will host a live conference call and
webcast, for analysts and institutional investors today, 26
September 2023, at 08:30 (Irish/UK time). Registration details for
the Conference Call and Webcast can be accessed at:
www.originenterprises.com
Alternatively, please contact FTI Consulting by email at
originenterprises@fticonsulting.com
Participants are requested to dial in 5 to 10 minutes prior to
the scheduled start time.
Enquiries:
Origin Enterprises plc
TJ Kelly
Chief Financial Officer Tel: +353 (0)1 563 4900
Brendan Corcoran
Head of Investor Relations Tel: +353 (0)1 563 4900
Goodbody (Euronext Growth (Dublin)
Adviser) Tel: +353 (0)1 641 9449
Joe Gill
Davy (Nominated Adviser)
Anthony Farrell Tel: +353 (0)1 614 9993
Numis Securities (Stockbroker)
Stuart Skinner Tel: +44 (0)20 7260 1314
FTI Consulting (Financial Communications
Advisers)
Jonathan Neilan / Patrick Berkery Tel: +353 (86) 602 5988
About Origin Enterprises plc
Origin Enterprises plc is an international Agronomy-Services
group, providing specialist advice, inputs and digital solutions
to promote sustainable land use. The Group has leading market
positions in Ireland, the United Kingdom, Brazil, Poland, Romania
and Ukraine. Origin's ordinary shares are listed on the Euronext
Growth (Dublin) market of Euronext Dublin and the AIM market
of the London Stock Exchange.
Euronext Growth (Dublin) ticker symbol: OIZ
AIM ticker symbol: OGN
Website: www.originenterprises.com
Financial Review - Summary
2023 2022
EUR'000 EUR'000
Group revenue 2,456,168 2,342,102
Operating profit(1) 90,791 119,740
Associates and joint venture, net(2) 4,040 6,845
Group operating profit(1) 94,831 126,585
Finance costs, net (12,963) (11,057)
Profit before tax(1) 81,868 115,528
Income tax (19,230) (25,509)
Adjusted net profit 62,638 90,019
Adjusted diluted EPS (cent)(3) 53.16c 71.53c
Adjusted net profit reconciliation
Reported net profit 51,032 79,899
Amortisation of non-ERP intangible
assets 13,435 15,236
Tax on amortisation of non-ERP related
intangible assets (2,460) (2,269)
Exceptional items (net of tax) 631 (2,847)
Adjusted net profit 62,638 90,019
Adjusted diluted EPS (cent)(3) 53.16c 71.53c
Operating margin(1) 3.7% 5.1%
Return on capital employed 12.6% 18.3%
Free cash flow EUR104.4m EUR108.5m
Group revenue
Group revenue increased by 4.9% to EUR2,456.2 million on a
reported basis and 6.5% on a constant currency basis. Excluding
crop marketing, revenue in the Agronomy and Inputs businesses
delivered constant currency growth of 5.2%, with price growth of
12.5%, reflecting global commodity prices, and an increase of 1.1%
from acquisitions set against reduced volumes of 8.4%, driven
primarily by a combination of reduced Ukraine activity and lower
fertiliser volumes.
Operating profit(1)
Operating profit(1) amounted to EUR90.8 million compared to the
unique contribution in FY22 of EUR119.7 million, which was impacted
by strong commodity prices and highly volatile trading conditions.
Excluding FY22's result, the operating profit delivered in FY23 of
EUR90.8m exceeds the previous best of the Group with increases
recorded in Continental Europe and Latin America set against the
expected reduced contribution from Ireland and the UK.
Group operating margin reduced from 5.1% to 3.7% in FY23,
principally driven by the Ireland and UK segment, which saw its
operating margin reduce from 5.9% in FY22 to 3.5% in FY23.
Associates and joint venture(2)
Origin's share of the profit after taxation from associates and
joint venture amounted to EUR4.0 million in the period (FY22:
EUR6.8 million). The FY23 performance reflects a weaker feed
commodity market in the second half of the year compared to the
stronger operating and trading conditions experienced in FY22.
Finance costs and net bank debt(4)
Net cash(4) at 31 July 2023 was EUR53.2 million (net debt(4) of
EUR1.7 million including IFRS 16 lease debt) compared to net
cash(4) of EUR43.4 million (net debt(4) EUR5.1 million including
IFRS 16 lease debt) at the end of the prior year, an increase of
EUR9.8 million. The movement is primarily driven by the strong FY23
operating performance and a net working capital inflow during the
year, as described below.
Net finance costs amounted to EUR13.0 million, which represents
an increase of EUR1.9 million on the prior year. Excluding the
impact of IFRS 16, there was an increase in net finance costs of
EUR1.8 million reflecting increased interest rates, year-on-year,
across the Group.
At 31 July 2023, the Group had unsecured committed banking
facilities of EUR400.0 million (2022: EUR400.0 million), with
pricing linked to ESG performance, of which EUR33.8 million will
expire in 2024 and EUR366.2 million in 2026.
At year end the Group's key banking covenants were as
follows:
Banking Covenant 2023 2022
Net debt to EBITDA Maximum 3.5 - -
EBITDA to net
interest Minimum 3.0 8.57 13.83
Working capital
For the year ended 31 July 2023, there was a working capital
inflow of EUR43.9 million reflecting the continued focus on working
capital optimisation across the Group. While the year-end
represents the low point in the working capital cycle for the Group
reflecting the seasonality of the business, working capital
performance was positively impacted by lower fertiliser raw
material and feed pricing, the favourable timing impact of
purchases and sales offtakes during H2 and the net benefit of trade
payables which have been suspended in accordance with international
sanctions imposed in response to the Russian invasion of Ukraine in
2022. We continue to monitor the situation regarding sanctions and
work very closely with the relevant National Competent Authorities
and will continue to act in accordance with their guidance.
Adjusted diluted earnings per share ('EPS')(3)
Adjusted diluted EPS(3) amounted to 53.16 cent per share (FY22:
71.53 cent), a decrease of 25.7% on a reported basis and 25.9% on a
constant currency basis.
Free cash flow
2023 2022
EUR'm EUR'm
Free cash flow 104.4 108.5
Free cash flow conversion ratio 178.2% 130.5%
The Group generated free cash flow in the year of EUR104.4
million (2022: EUR108.5 million). This strong cash flow performance
delivered a net cash position of EUR53.2 million at year end. This
was due to a continued focus on working capital optimisation,
falling feed and fertiliser raw material prices and disciplined
cash management across the Group.
Free cash flow means the total of earnings before interest, tax,
depreciation (excluding depreciation of IFRS 16 Right of Use leased
assets), amortisation of non-ERP related intangible assets and
exceptional items of wholly owned businesses ('EBITDA') adjusted to
take account of interest, tax, routine capital expenditure, working
capital cash flows and dividends received.
Free cash flow conversion ratio means free cash flow as a
percentage of profit after tax of wholly owned businesses,
excluding exceptional items and amortisation of non-ERP related
intangible assets.
Return on capital employed
2023 2022
Return on capital employed ('ROCE') 12.6% 18.3%
The Group's strong operating performance delivered a ROCE of
12.6%, within our targeted range. Return on capital employed is a
key performance indicator for the Group and represents Group
earnings before interest, tax and amortisation of non-ERP related
intangible assets from continuing operations ('EBITA') taken as a
percentage of the Group Net Assets. For the purposes of this
calculation:
(i) EBITA includes the net profit contribution from associates
and joint venture (after interest and tax) and excludes
the impact of exceptional and non-recurring items; and
(ii) Group Net Assets means total assets less total liabilities
as shown in the annual report excluding net debt, derivative
financial instruments, put option liabilities, accumulated
amortisation of non-ERP related intangible assets and taxation
related balances. Net Assets are also adjusted to reflect
the average level of acquisition investment spend and the
average level of working capital for the accounting period.
Exceptional items
Exceptional items net of tax amounted to a charge of EUR0.6
million in the year (FY22: credit of EUR2.8 million), and are
summarised in the table below:
2023 2022
EUR'm EUR'm
Acquisition and disposal related costs 2.3 -
Ukraine related costs 2.0 -
Arising in associates and joint venture (3.7) -
Gain on the disposal of investment properties - (2.7)
Other - (0.1)
Total exceptional items, net of tax 0.6 (2.8)
Dividends
The Directors are proposing a final dividend of 13.65 cent per
ordinary share for approval at the AGM in November 2023, bringing
the total dividend payment for FY23 to 16.80 cent, an increase of
5.0%. Subject to shareholder approval at the AGM, this final
dividend will be paid on 9 February 2024 to shareholders on the
register on 19 January 2024.
Board changes
Rose Hynes resigned as a Director of the Company with effect
from the conclusion of the 2022 AGM in November 2022 and was
succeeded by Gary Britton as Chairman as planned. Also during the
year Mr. Alan Ralph and Ms. Pam Powell were appointed as
independent Non-Executive Directors.
Share buyback programme
On 28 September 2022 the Group commenced a share buyback
programme to repurchase up to EUR20 million of ordinary shares. The
programme was completed on 29 March 2023, with the average price
paid per share of EUR4.0583.
Sustainability
Origin made significant progress on its Environmental, Social
and Governance ("ESG") agenda in FY23. During the year the Group
continued the implementation of its environmental sustainability
strategy, 'Nurturing Growth' and its associated targets. Origin is
focused on actions in the areas that are most important to
stakeholders and has prioritised work in the evolution of a more
sustainable product portfolio.
The Group also implemented its carbon transition plan and has
committed to a 54.9% reduction in Scope 1 and 2 emissions, and a
32.5% reduction in Scope 3 emissions by 2032 from a 2019 base.
These targets have been submitted for validation to the Science
Based Target initiative ("SBTi").
The Group's efforts have been acknowledged with improved ESG
ratings: Sustainalytics (Low Risk), MSCI (A rating), and CDP (B
rating). This achievement has resulted in Origin attaining the top
end of its ESG targets within its sustainability-linked revolving
credit facility.
On the social agenda, Origin has also made progress on Diversity
and Inclusion during the year with good engagement across the
organisation culminating in achieving a 25% female representation
in leadership and management positions (7% increase since 2018) and
33% female representation on the Origin Board. The Group also
increased resourcing within its environmental compliance team and
launched a series of actions across education, talent acquisition
and engagement to further embed our progress.
Corporate development
During the year, the Group continued to strengthen its offering
in its Amenity, Environmental and Ecology business with the
acquisitions of Keystone Environmental, Neo Environmental, Agrigem
and British Hardwood Tree Nursery. Subsequent to the year end, the
Group acquired the business and operating assets of Suregreen
Limited ('Suregreen'), a UK based landscape and gardening products
supplier for trade professionals and DIY customers from its
Administrators. These acquisitions complement the Group's organic
growth strategy, are EPS enhancing and broaden its expertise and
capabilities in the growing market for ecological and environmental
products and services which will continue to play an important role
in sustainable land use to help tackle climate change, restore
biodiversity, and create recreational spaces to promote social
wellbeing.
The Group also continues the rollout of Dynamics 365 ERP
solution across its UK and Ireland businesses, with the solution
being deployed to the remaining key business units over FY24.
Investor relations
Our strategy aims to create long-term shareholder value and we
support this strategy through regular and open communication with
all capital market participants. Contact with institutional
shareholders is the responsibility of the executive management team
including the Chief Executive Officer, the Chief Financial Officer
and the Head of Investor Relations.
We engage with institutional investors in numerous one-on-one
meetings, as well as at roadshows and equity conferences. During
FY23, meetings were held with 142 institutional investors.
Engagement was facilitated through a combination of in-person
meetings and remotely using virtual conferences and video
calls.
Annual General Meeting (AGM)
The AGM is scheduled to be held on 16 November 2023 at 11.00am
(UK/Ireland time) in the Merrion Hotel, Upper Merrion Street,
Dublin 2.
Cautionary statement
This Preliminary Results Statement contains forward looking
statements. These statements have been made by the Directors in
good faith based on the information available to them up to the
time of the preparation of this document. Due to the inherent
uncertainties, including both economic and business risk factors
underlying such forward-looking information, actual results may
differ materially from those expressed or implied by these
forward-looking statements.
The Directors undertake no obligation to update any
forward-looking statements contained in this document, whether as a
result of new information, future events or otherwise.
Review of Operations
Group Overview
Change on prior year
Constant
2023 2022 Change Underlying(3) Currency(4)
EUR'm EUR'm % % %
---------------------- --------- -------- --------- --------------- -----------------
Revenue 2,456.2 2,342.1 4.9% 5.5% 6.5%
Operating profit(1) 90.8 119.7 (24.2%) (27.4%) (24.4%)
Operating margin(1) 3.7% 5.1% (140bps) (160bps) (150bps)
Adjusted diluted EPS
(cent)(2) 53.16 71.53 (25.7%) (28.6%) (25.9%)
(1) Before amortisation of non-ERP intangible assets and exceptional
items
(2) Before amortisation of non-ERP intangible assets, net of related
deferred tax (2023: EUR11.0m, 2022: EUR13.0m) and exceptional
items, net of tax (2023: charge of EUR0.6m, 2022: credit of
EUR2.8m)
(3) Excluding currency movements and the impact of acquisitions
and disposals
(4) Excluding currency movements
---- -----------------------------------------------------------------
The Group delivered a strong overall performance in FY23,
despite significant price and volume volatility across all our
markets. As previously noted, the FY23 performance is set against a
strong comparable period in FY22 due to the unique backdrop of
strong commodity prices and highly volatile trading conditions.
Group revenue increased by 4.9% on a reported basis, while Group
operating profit and adjusted fully diluted earnings per share
reduced by 24.2% and 25.7% respectively.
There was an underlying decrease in agronomy services and crop
input volumes, primarily driven by a combination of reduced Ukraine
activity and lower fertiliser volumes, excluding crop marketing
volumes, of 8.4% for FY23.
Ireland and the United Kingdom
Change on prior year
Constant
2023 2022 Change Underlying(3) Currency(4)
EUR'm EUR'm % % %
Revenue 1,641.8 1,614.4 1.7% 2.6% 4.0%
Operating profit(1) 57.8 94.5 (38.8%) (41.1%) (37.2%)
Operating margin(1) 3.5% 5.9% (240bps) (250bps) (230bps)
Associates and joint
venture(2) 4.0 6.8 (41.0%) (40.4%) (40.4%)
(1) Before amortisation of non-ERP intangible assets and exceptional
items
(2) Profit after interest and tax before exceptional items
(3) Excluding currency movements and the impact of acquisitions
and disposals
(4) Excluding currency movements
---- -----------------------------------------------------------------
Ireland and the UK delivered a good performance in FY23,
reflective of a return to more normalised trading conditions as the
year progressed, including some recovery in Q4 from what was a wet
and cold Q3 period. As previously stated, FY23 is set against a
unique prior year comparative, and while reported revenue increased
by 1.7%, operating profit decreased by 38.8%.
While FY23 continued to be characterised by significant price
and volume volatility, these challenges were successfully managed
across the Group. Agronomy Services and Agri-inputs experienced an
underlying volume reduction of 7.4% for the period, primarily
fertiliser driven.
Operating margin decreased to 3.5% from 5.9% in the prior year.
This again reflects the exceptional nature of FY22's result.
Agronomy Services
Integrated Agronomy and On-Farm Services delivered a strong
result for the year.
The result was supported by a robust planted area across the UK,
despite the impact of some weather related challenges. Strong
volume performance across our seed portfolio was set against
reductions in fertiliser and crop protection volumes, as
anticipated. The FY23 harvest is progressing well, after a slow
start, and yields to-date are as expected.
Agri-inputs
Our Business-to-Business Agri-Inputs division delivered a solid
performance, despite experiencing reduced demand as a result of
higher global raw material prices, which have fallen towards the
end of the year.
Fertiliser
Fertiliser delivered a solid financial and operating
performance, while navigating ongoing pricing uncertainties and
supply chain challenges. The global fertiliser market experienced
significant raw material price volatility throughout the year, and
this negatively impacted FY23 volumes.
Despite the challenges faced in global markets, the Group
continues to execute strongly across the business. Sustainable land
use and soil health are a core focus for the Group, and Origin will
continue to invest in innovative products to meet evolving
customer's needs.
Feed Ingredients
Origin's Feed Ingredients division delivered a satisfactory
performance in FY23, again set against stronger FY22 operating and
trading conditions.
The Group's animal feed manufacturing associate, John Thompson
& Sons Limited, in which the Group has a 50% shareholding,
delivered a satisfactory performance in the period.
Amenity, Environmental and Ecology
As part of the strategy outlined at the Group's 2022 Capital
Markets Day, Origin committed to accelerating its participation in
the amenity, environmental and ecology markets. In FY23, the
Group's Amenity, Environmental and Ecology business delivered a
good performance supported by the impact of acquisitions completed
during the year.
During the year, the Group completed four acquisitions in this
space, totalling EUR30.1 million, with a further acquisition post
year end. The five acquisitions are: Agrigem; British Hardwood Tree
Nursery; Keystone Environmental; Neo Environmental; and
Suregreen.
These newly acquired businesses provide a diverse range of
ecological and environmental products and services , in areas such
as forestry, landscaping and habitat conservation. They primarily
cater for the growing demand from customers seeking sustainable
nature based solutions.
These acquisitions complement Origin's organic growth strategy
and broaden its offering in the emerging nature economy through
sustainable land use.
Continental Europe (1)
Change on prior year
Constant
2023 2022 Change Underlying(3) Currency(4)
EUR'm EUR'm % % %
Revenue 464.6 461.8 0.6% 2.4% 2.4%
Operating profit(2) 15.8 14.8 6.6% 5.1% 5.1%
Operating margin(2) 3.4% 3.2% 20bps 10bps 10bps
(1) Excluding crop marketing. While crop marketing has a significant
impact on revenue, its impact on operating profit is less
significant. For the year ending 31 July 2023 crop marketing
revenues and profits attributable to Continental Europe amounted
to EUR231.7 million and EUR1.5 million respectively (2022:
EUR192.7 million and EUR0.8 million respectively). An analysis
of revenues, profits and margins attributable to agronomy
services and inputs more accurately reflects the underlying
drivers of business performance
(2) Before amortisation of non-ERP intangible assets and exceptional
items
(3) Excluding currency movements and the impact of acquisitions
(4) Excluding currency movements
---- ------------------------------------------------------------------
Continental Europe ('CE') delivered a solid performance in FY23,
with an overall increase in operating profit to EUR15.8 million, an
increase of 6.6% on FY22.
Overall volumes were back in each geography in CE, with
underlying business volumes reducing by 18.2% in the period,
primarily driven by Ukraine and the impact of higher product
pricing.
Poland
Poland delivered a good performance in FY23, with the cropping
area largely in line with FY22.
The performance was characterised by a continued focus on
working capital optimisation, with a reduction in net working
capital delivered year-on-year. Across Poland, the harvest is
progressing as planned with good yields reported across most
regions. Farm sentiment remains cautious, with input price
volatility delaying purchasing decisions. The construction of the
expanded 'Foliq'-branded liquid foliar fertiliser facility is
progressing to plan, with commissioning expected during first half
of calendar 2024.
Romania
Romania reported a strong performance in FY23, supported by a
robust planted area, satisfactory crop establishment and generally
favourable soil moisture levels.
The harvest of winter crops is largely complete across Romania,
with record oilseed rape yields recorded in some regions set
against lower than average yields for other winter cereals. Farm
sentiment is cautious with some early purchasing of oilseed rape
noted, however purchasing decisions for other winter cereals are
expected to be delayed. The Group will commence its investment
programme to expand our micropack production facility and
fertiliser coating facilities in early FY24.
Ukraine
Activity levels in Ukraine have continued to reduce
significantly as a result of the war. In recent years the Group has
undertaken a significant de-risking of the balance sheet through a
sustained focus on working capital reduction. Subsequent to year
end, the Group took the difficult decision to wind down operations
in Ukraine, and it will cease trading at the end of September 2023.
The Group's Ukraine business has experienced a number of
challenges, most recently as a result of the war with reduced
activity levels in relation to on-farm liquidity, however, a
volatile trading environment and challenging market dynamics have
resulted in the business being loss making over a number of years,
with little evidence that the trading environment will improve post
war.
Latin America
Change on prior period
Constant
2023 2022 Change Underlying(2) Currency(3)
EUR'm EUR'm % % %
---------------------- --------- -------- -------- --------------- -------------
Revenue 118.1 73.2 61.3% 48.5% 48.5%
Operating profit(1) 15.7 9.7 62.1% 47.3% 47.3%
Operating margin(1) 13.3% 13.2% 10bps (10bps) (10bps)
(1) Before amortisation of non-ERP intangible assets and exceptional
items
(2) Excluding currency movements and the impact of acquisitions
(3) Excluding currency movements
---- -----------------------------------------------------------------
The Latin American ('LATAM') reporting segment incorporates the
Group's operations in Brazil.
Latin America delivered another strong performance in FY23, with
operating profit increasing to EUR15.7 million from EUR9.7 million
in FY22, with an underlying increase of EUR4.6 million.
There was an underlying increase in volumes of 30.1%. The strong
volume development and underlying growth was enabled by the
broadening of our product range, following additional investment to
increase capacity of liquid, dry and Controlled Release Fertiliser
('CRF'). The Group's CRF operations reached maximum capacity, ahead
of targets, in FY23. Further investment will be required in FY24 to
address current production related constraints. The establishment
of F1rst Agbiotech, a dedicated biological business unit supporting
research and development of bio-solutions, continued in line with
expectations, with initial sales volumes delivered through Q4
FY23.
The overall result was supported by the total cropping area
dedicated to soya, Brazil's principal crop, increasing by 5.1% on
the prior year to 43.6 million hectares, with the expected soya
harvest increasing to 153.3 million tonnes from 125.5 million
tonnes last year. The total production for Brazil's secondary crop,
maize, is forecasted to increase by 10.6% to 125.1 million
tonnes.
S
Origin Enterprises plc
Consolidated Income Statement
For the financial year ended 31 July 2023
Pre- Pre-
exceptional Exceptional Total exceptional Exceptional Total
2023 2023 2023 2022 2022 2022
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Notes (Note 3) (Note 3)
Revenue 2 2,456,168 - 2,456,168 2,342,102 - 2,342,102
Cost of sales (2,122,029) - (2,122,029) (1,972,937) - (1,972,937)
Gross profit 334,139 - 334,139 369,165 - 369,165
Operating (costs)
/ income (256,783) (4,489) (261,272) (264,661) 3,919 (260,742)
Share of profit
of associates
and joint
venture 4,040 3,692 7,732 6,845 - 6,845
Operating profit 81,396 (797) 80,599 111,349 3,919 115,268
Finance income 2,080 - 2,080 1,127 - 1,127
Finance expense (15,043) - (15,043) (12,184) - (12,184)
Profit before
income tax 68,433 (797) 67,636 100,292 3,919 104,211
Income tax
(expense)/credit (16,770) 166 (16,604) (23,240) (1,072) (24,312)
Profit for the
year 51,663 (631) 51,032 77,052 2,847 79,899
Earnings per share for the year 2023 2022
Basic earnings per share 4 45.24c 65.40c
------------ ------------
Diluted earnings per
share 4 43.31c 63.49c
------------ ------------
Origin Enterprises plc
Consolidated Statement of Comprehensive Income
For the financial year ended 31 July 2023
2023 2022
EUR'000 EUR'000
Profit for the year 51,032 79,899
Other comprehensive (expense) / income
Items that are not reclassified subsequently to the Consolidated Income Statement:
Group/Associate defined benefit pension obligations
-remeasurements on Group's defined benefit pension schemes (6,103) 909
-deferred tax effect of remeasurements 1,506 (176)
-share of remeasurements on associate's defined benefit pension schemes (53) (2,386)
-share of deferred tax effect of remeasurements - associates 13 596
Items that may be reclassified subsequently to the Consolidated Income Statement:
Group foreign exchange translation details
-exchange difference on translation of foreign operations (1,580) 9,588
Group/Associate cash flow hedges
-effective portion of changes in fair value of cash flow hedges 7,387 9,186
-fair value of cash flow hedges transferred to operating costs and other income (7,801) (3,751)
-deferred tax effect of cash flow hedges 394 (840)
-share of associates and joint venture cash flow hedges (1,960) 2,134
-deferred tax effect of share of associates and joint venture cash flow hedges 245 (267)
Other comprehensive (expense) / income for the year, net of tax (7,952) 14,993
Total comprehensive income for the year attributable to equity shareholders 43,080 94,892
------- -------
Origin Enterprises plc
Consolidated Statement of Financial Position
As at 31 July 2023
2023 2022
Notes EUR'000 EUR'000
ASSETS
Non-current assets
Property, plant and equipment 5 118,107 107,906
Right of use asset 54,037 47,705
Investment properties 2,270 2,270
Goodwill and intangible assets 6 299,906 251,999
Investments in associates and joint venture 7 52,387 47,053
Other financial assets 898 561
Deferred tax assets 8,737 6,363
Post employment benefit surplus 9 2,579 7,767
Derivative financial instruments 6,960 4,241
Total non-current asset 545,881 475,865
-------------------- ---------
Current assets
Properties held for sale 5,800 5,800
Inventory 232,167 380,412
Trade and other receivables 440,398 455,110
Derivative financial instruments 118 2,162
Cash and cash equivalents 11 151,237 193,059
Total current assets 829,720 1,036,543
-------------------- ---------
TOTAL ASSETS 1,375,601 1,512,408
Origin Enterprises plc
Consolidated Statement of Financial Position (continued)
As at 31 July 2023
2023 2022
Notes EUR'000 EUR'000
EQUITY
Called up share capital presented as equity 12 1,253 1,253
Share premium 160,526 160,521
Retained earnings and other reserves 248,814 241,003
TOTAL EQUITY 410,593 402,777
---------- ----------
LIABILITIES
Non-current liabilities
Interest-bearing borrowings 11 96,964 132,936
Lease liabilities 42,835 38,753
Deferred tax liabilities 20,720 20,854
Provision for liabilities 8 11,331 4,002
Derivative financial instruments 25 -
Total non-current liabilities 171,875 196,545
---------- ----------
Current liabilities
Interest-bearing borrowings 11 1,098 16,689
Lease liabilities 12,081 9,803
Trade and other payables 722,605 841,085
Corporation tax payable 11,937 12,290
Put option liability 32,382 29,695
Provision for liabilities 8 11,987 1,610
Derivative financial instruments 1,043 1,914
Total current liabilities 793,133 913,086
---------- ----------
TOTAL LIABILITIES 965,008 1,109,631
TOTAL EQUITY AND LIABILITIES 1,375,601 1,512,408
---------- ----------
Origin Enterprises plc
Consolidated Statement of Changes in Equity
For the financial year ended 31 July 2023
Share- Foreign
Capital Cash based currency
flow
Share Share Treasury redemption hedge Revaluation payment Re-organisation translation Retained
capital Premium shares reserve reserve reserve reserve reserve reserve earnings Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
At 1 August 2022 1,253 160,521 (36,005) 145 4,604 12,843 4,194 (196,884) (43,748) 495,854 402,777
Profit for the year - - - - - - - - - 51,032 51,032
Other comprehensive expense
for the year - - - - (1,735) - - - (1,580) (4,637) (7,952)
------- ------- --------- ---------- ------- ----------- ------- -------------------------- ----------- -------- ---------
Total comprehensive (expense)
/ income for the year - - - - (1,735) - - - (1,580) 46,395 43,080
Share-based payment charge - - - - - - 2,550 - - - 2,550
Shares issued - 5 - - - - - - - - 5
Share buyback - - (20,000) - - - - - - - (20,000)
Re-issue of treasury shares - - 4,316 - - - - - - (2,024) 2,292
Change in fair value of put
option - - - - - - - - - (2,121) (2,121)
Dividend paid to shareholders
Transfer of share based - - - - - - - - - (17,990) (17,990)
payment reserve
to retained earnings - - - - - - (518) - - 518 -
At 31 July 2023 1,253 160,526 (51,689) 145 2,869 12,843 6,226 (196,884) (45,328) 520,632 410,593
Origin Enterprises plc
Consolidated Statement of Cash Flows
For the financial year ended 31 July 2023
2023 2022
EUR'000 EUR'000
Cash flows from operating activities
Profit before tax 67,636 104,211
Exceptional items 797 (3,919)
Finance income (2,080) (1,127)
Finance expense 15,043 12,184
Loss on disposal of property, plant and equipment 718 650
Share of profit of associates and joint venture (4,040) (6,845)
Depreciation of property, plant and equipment 8,678 10,696
Depreciation of right of use assets 12,810 11,482
Amortisation of intangible assets 14,218 17,112
Employee share-based payment charge 2,550 2,285
Pension contributions in excess of service costs (834) (762)
Payment of exceptional Ukraine related costs (1,918) -
Payment of exceptional acquisition and disposal related costs (1,537) (206)
Operating cash flow before changes in working capital 112,041 145,761
Movement in inventory 146,884 (161,914)
Movement in trade and other receivables 19,845 (18,464)
Movement in trade and other payables (122,835) 196,531
Cash generated from operating activities 155,935 161,914
Interest paid (11,526) (8,040)
Income tax paid (19,631) (26,213)
Cash inflow from operating activities 124,778 127,661
Origin Enterprises plc
Consolidated Statement of Cash Flows (continued)
For the financial year ended 31 July 2023
2023 2022
EUR'000 EUR'000
Cash flows from investing activities
Proceeds from disposal of held for sale properties - 19,500
Proceeds from sale of property, plant and equipment 235 1,083
Purchase of property, plant and equipment (18,567) (13,128)
Additions to intangible assets (17,683) (10,998)
Consideration relating to acquisitions (net of cash acquired) (30,112) (1,457)
Payment of contingent acquisition consideration (115) (106)
Net proceeds from disposal of subsidiary 705 -
Purchase of other financial assets (345) -
Repayment of loans - 2,898
Dividends received from associates 144 3,042
Cash (outflow) / inflow from investing activities (65,738) 834
Cash flows from financing activities
Drawdown of bank loans 334,599 295,365
Repayment of bank loans (369,244) (334,465)
Lease liability payments (14,810) (13,499)
Share buyback (20,000) (39,997)
Issue of share capital 5 -
Proceeds from re-issue of treasury shares 1,654 -
Payment of dividends to equity shareholders (17,990) (13,449)
Cash outflow from financing activities (85,786) (106,045)
Net (decrease) / increase in cash and cash equivalents (26,746) 22,450
Translation adjustment 515 (1,858)
Cash and cash equivalents at start of year 176,370 155,778
Cash and cash equivalents at end of year (Note 11) 150,139 176,370
Origin Enterprises plc
Notes to the preliminary results statement
For the financial year ended 31 July 2023
1 Basis of preparation
The financial information included on pages 12 to 32 of this
preliminary results statement has been extracted from the Group
financial statements for the year ended 31 July 2023 on which the
auditor has issued an unqualified audit opinion.
The financial information has been prepared in accordance with
the accounting policies set out in the Group's consolidated
financial statements for the year ended 31 July 2023, which were
prepared in accordance with International Financial Reporting
Standards as adopted by the EU.
The consolidated financial information is presented in Euro,
rounded to the nearest thousand, which is the functional currency
of the parent.
2 Segment information
IFRS 8, 'Operating Segments' requires operating segments to be
identified on the basis of internal reports that are regularly
reviewed by the Chief Operating Decision Maker ('CODM') in order to
allocate resources to the segments and to assess their
performance.
The Group has three operating segments as follows:
Ireland and the United Kingdom
This segment includes the Group's wholly owned Irish and UK
based Business-to-Business Agri-Inputs operations, Integrated
Agronomy and On-Farm Services operations and Amenity, Environmental
and Ecology operations. In addition, this segment includes the
Group's associates and joint venture undertakings.
Continental Europe
This segment includes the Group's Business-to-Business
Agri-Inputs operations, Integrated Agronomy and On-Farm Services
operations in Poland, Romania and Ukraine.
Latin America
This segment includes the Group's 65% controlling interest in
Fortgreen Commercial Agricola Ltda ("Fortgreen"), a business which
is focused on the development and marketing of value added crop
nutrition and speciality inputs and which is headquartered in
Paraná State in southern Brazil.
Information regarding the results of each reportable segment is
included below. Performance is measured based on segment operating
profit as included in the internal management reports that are
reviewed by the Group's CODM, being the Origin Executive Directors.
Segment operating profit is used to measure performance, as this
information is the most relevant in evaluating the results of the
Group's segments. Segment results include all items directly
attributable to a segment.
Origin Enterprises plc
Notes to the preliminary results statement (continued)
For the financial year ended 31 July 2023
2 Segment information (continued)
(i) Segment revenue and results
Ireland & Continental Latin America Total
the UK Europe Group
---------- ------------- ---------------------- ----------
2023 2022 2023 2022 2023 2022 2023 2022
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Revenue 1,641,764 1,614,423 696,268 654,446 118,136 73,233 2,456,168 2,342,102
---------- ---------- ------------ -------- -------- -------- ---------- ----------
Segment
result 57,841 94,480 17,297 15,604 15,653 9,656 90,791 119,740
Profit from
associates
and joint
venture 4,040 6,845 - - - - 4,040 6,845
Amortisation
of non-ERP
intangible
assets (10,729) (7,967) (1,013) (5,354) (1,693) (1,915) (13,435) (15,236)
---------- ---------- ------------ -------- -------- -------- ---------- ----------
Total
operating
profit
before
exceptional
items 51,152 93,358 16,284 10,250 13,960 7,741 81,396 111,349
Exceptional
items (128) 3,919 (669) - - - (797) 3,919
Operating
profit 51,024 97,277 15,615 10,250 13,960 7,741 80,599 115,268
---------- ---------- ------------ -------- -------- -------- ---------- ----------
Origin Enterprises plc
Notes to the preliminary results statement (continued)
For the financial year ended 31 July 2023
2 Segment information (continued)
(ii) Segment earnings before financing costs and tax is
reconciled to reported profit before tax and profit after tax as
follows:
2023 2022
EUR'000 EUR'000
Segment earnings before financing costs and tax 80,599 115,268
Finance income 2,080 1,127
Finance expense (15,043) (12,184)
Reported profit before tax 67,636 104,211
Income tax expense (16,604) (24,312)
Reported profit after tax 51,032 79,899
3 Exceptional items
Exceptional items are those that, in management's judgement,
should be separately presented and disclosed by virtue of their
nature or amount. Such items are included within the Consolidated
Income Statement caption to which they relate. The following
exceptional items arose during the year:
2023 2022
EUR'000 EUR'000
Ukraine Related costs (i) 2,226 -
Acquisition, disposal and other related costs / (credit) (ii) 2,263 (125)
Gain on disposal of properties held for sale (iii) - (3,794)
Total exceptional costs / (credit) before tax and before associates and joint venture 4,489 (3,919)
Arising in associates and joint venture, net of tax (iv) (3,692) -
------- -------
Total exceptional costs / (credit) before tax including associates and joint venture 797 (3,919)
Tax (credit) / charge on exceptional items (166) 1,072
------- -------
Total exceptional costs / (credit) after tax 631 (2,847)
------- -------
Origin Enterprises plc
Notes to the preliminary results statement (continued)
For the financial year ended 31 July 2023
3 Exceptional items (continued)
(i) Ukraine related costs
Ukraine related costs comprise of rationalisation costs
attributable to termination payments from restructuring programmes
in Ukraine along with costs associated with international sanctions
imposed by authorities in response to the Russian invasion of
Ukraine. The tax impact of this exceptional item in the year was a
tax credit of EUR0.2 million
(ii) Acquisition, disposal and other related costs /
(credit)
Acquisition, disposal and other related costs principally
comprised of costs incurred in relation to the acquisitions
completed during the current year and a loss on sale of a
subsidiary. The tax impact of this exceptional item in the current
year was a charge of EURnil. The costs in the prior year
principally comprised of a dilapidation credit.
(iii) Gain on disposal of properties held for sale
During the prior year, held for sale properties were sold,
resulting in an exceptional gain of EUR3.8 million. Also included
were costs relating to the disposal of the properties. The tax
impact of this exceptional item in the prior year was a charge of
EUR1.1 million.
(iv) Arising in associates and joint venture
During 2021 the R&H Hall storage facility in Ringaskiddy
suffered fire damage. Contingency plans were implemented and the
impact on customers and operations was minimised. The gain
represents the excess of the insurance claim proceeds over the net
book value of the assets destroyed and other restructuring costs
incurred. The net tax impact of this exceptional item was EUR0.7
million .
Origin Enterprises plc
Notes to the preliminary results statement (continued)
For the financial year ended 31 July 2023
4 Earnings per share
Basic earnings per share
2023 2022
EUR'000 EUR'000
Profit for the financial year attributable to equity shareholders 51,032 79,899
------- -------
'000 '000
Weighted average number of ordinary shares for the year 112,791 122,164
------- -------
Cent Cent
Basic earnings per share 45.24 65.40
------- -------
Diluted earnings per share
2023 2022
EUR'000 EUR'000
Profit for the financial year attributable to equity shareholders 51,032 78,899
------- -------
'000 '000
Weighted average number of ordinary shares used in basic calculation 112,791 122,164
Impact of shares with a dilutive effect 2,671 1,928
Impact of the SAYE scheme 2,379 1,759
Weighted average number of ordinary shares (diluted) for the year 117,841 125,851
------- -------
Cent Cent
Diluted earnings per share 43.31 63.49
------- -------
Origin Enterprises plc
Notes to the preliminary results statement (continued)
For the financial year ended 31 July 2023
4 Earnings per share (continued)
2023 2022
'000 '000
Adjusted basic earnings per share
Weighted average number of ordinary shares for the year 112,791 122,164
------- -------
2023 2022
EUR'000 EUR'000
Profit for the financial year 51,032 79,899
Adjustments:
Amortisation of non-ERP related intangible assets (Note 6) 13,435 15,236
Tax on amortisation of non-ERP related intangible assets (2,460) (2,269)
Exceptional items, net of tax 631 (2,847)
------- -------
Adjusted earnings 62,638 90,019
------- -------
Cent Cent
Adjusted basic earnings per share 55.53 73.69
------- -------
Adjusted diluted earnings per share
2023 2022
'000 '000
Weighted average number of ordinary shares used in basic calculation 112,791 122,164
Impact of shares with a dilutive effect 2,671 1,928
Impact of the SAYE scheme 2,379 1,759
Weighted average number of ordinary shares (diluted) for the year 117,841 125,851
------- -------
2023 2022
EUR'000 EUR'000
Adjusted earnings (as above) 62,638 90,019
------- -------
Cent Cent
Adjusted diluted earnings per share 53.16 71.53
------- -------
Origin Enterprises plc
Notes to the preliminary results statement (continued)
For the financial year ended 31 July 2023
5 Property, plant and equipment
2023 2022
EUR'000 EUR'000
At 1 August 107,906 104,528
Arising on acquisition (Note 10) 1,459 874
Additions 18,891 13,477
Disposals (1,014) (1,733)
Depreciation charge for the year (8,678) (10,696)
Translation adjustments (457) 1,456
--------- ----------
At 31 July 118,107 107,906
--------- ----------
6 Goodwill and intangible assets
2023 2022
EUR'000 EUR'000
At 1 August 251,999 248,445
Arising on acquisition (Note 10) 46,650 2,314
Additions 17,683 10,998
Disposals (886) (848)
Purchase adjustment (58) -
Amortisation of non-ERP intangible assets (13,435) (15,236)
ERP intangible amortisation (783) (1,876)
Translation adjustments (1,264) 8,202
-------- --------
At 31 July 299,906 251,999
-------- --------
Origin Enterprises plc
Notes to the preliminary results statement (continued)
For the financial year ended 31 July 2023
7 Investments in associates and joint venture
2023 2022
EUR'000 EUR'000
At 1 August 47,053 42,774
Share of profits after tax, before exceptional items 4,040 6,845
Share of exceptional items, net of tax (Note 3) 3,692 -
Dividends received (144) (3,042)
Share of other comprehensive income (1,755) 77
Translation adjustment (499) 399
At 31 July 52,387 47,053
------- -------
Split as follows:
Total associates 27,219 24,580
Total joint venture 25,168 22,473
------- -------
52,387 47,053
------- -------
8 Provision for liabilities
The estimate of provisions is a key judgement in the preparation
of the financial statements.
2023 2022
EUR'000 EUR'000
At 1 August 5,612 3,459
Arising on acquisition (Note 10) 15,199 1,460
Provided in year 2,738 1,045
Paid in year (115) (384)
Released in the year (290) -
Currency translation adjustment 174 32
---------------------------------- ----------------------------------
At 31 July 23,318 5,612
---------------------------------- ----------------------------------
Split as follows:
Current liabilities 11,987 1,610
Non-current liabilities 11,331 4,002
---------------------------------- ----------------------------------
23,318 5,612
---------------------------------- ----------------------------------
Provisions primarily relate to contingent acquisition
consideration arising on a number of acquisitions completed during
the current and prior years.
Origin Enterprises plc
Notes to the preliminary results statement (continued)
For the financial year ended 31 July 2023
9 Post employment benefit obligations
The Group operates a number of defined benefit pension schemes
and defined contribution schemes with assets held in separate
trustee administered funds. All of the defined benefit schemes are
closed to new members.
The valuations of the defined benefit schemes used for the
purposes of the following disclosures are those of the most recent
actuarial valuations carried out at 31 July 2023 by an independent,
qualified actuary. The valuations have been performed using the
projected unit method.
Movement in net asset recognised in the Consolidated Statement
of Financial Position
2023 2022
EUR'000 EUR'000
At 1 August 7,767 5,939
Current service cost (414) (590)
Employer contributions 1,248 1,352
Other finance income 255 93
Remeasurements (6,103) 909
Translation adjustments (174) 64
At 31 July 2,579 7,767
------- -------
10 Acquisition of subsidiary undertakings
On 6 October 2022, the Group acquired 100% of the share capital
of Keystone Environmental Limited in the UK, an independent ecology
solutions provider specialising in the design, planning and
delivery of complete ecological solutions.
On 17 February 2023, the Group acquired 100% of the share
capital of Agrigem Limited in the UK, the largest independent
specialist supplier and advisor of ground care products throughout
the UK and Ireland.
On 31 March 2023, the Group acquired 100% of the share capital
of Neo Environmental Limited in the UK, a multi-disciplinary
consultancy business that provides market-leading planning,
environmental and technical advice.
On 2 June 2023, the Group acquired 100% of the share capital of
British Hardwood Tree Nursery Limited in the UK, one of the UK's
leading specialist wholesale suppliers of bare root plants, shrubs,
hedgerow plants and planting accessories for the forestry, farming,
estate management, corporate and landscaping sectors.
Origin Enterprises plc
Notes to the preliminary results statement (continued)
For the financial year ended 31 July 2023
10 Acquisition of subsidiary undertakings - continued
Details of the net assets acquired and goodwill arising from the
business combinations are as follows:
Fair
value
EUR'000
Assets
Non-current
Property, plant & equipment 1,459
Intangible assets 9,514
--------
Total non-current assets 10,973
--------
Current assets
Inventory 2,417
Trade receivables (i) 3,060
Other receivables 104
Cash and cash equivalents 5,081
--------
Total current assets 10,662
--------
Liabilities
Trade and other payables (5,322)
Corporation tax (575)
Deferred tax liability (2,482)
--------
Total liabilities (8,379)
--------
Total identifiable net assets at fair value 13,256
Goodwill arising on acquisition 37,136
--------
Total net assets acquired 50,392
--------
Consideration satisfied by:
Cash consideration 35,193
Contingent consideration arising from acquisition 15,199
--------
Total consideration related to acquisitions 50,392
--------
Net cash outflow - arising on acquisitions
Cash consideration 35,193
Less cash and cash equivalents acquired (5,081)
--------
Total cash outflow related to acquisitions 30,112
--------
(i) Trade Receivables acquired were EUR3.1 million. All amounts deemed recoverable.
Origin Enterprises plc
Notes to the preliminary results statement (continued)
For the financial year ended 31 July 2023
11 Analysis of net cash / (debt)
Non-cash Translation
2022 Cash flow movements adjustment 2023
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Cash 193,059 (42,113) - 291 151,237
Overdrafts (16,689) 15,367 - 224 (1,098)
Cash and cash equivalents 176,370 (26,746) - 515 150,139
Loans (132,936) 34,645 (875) 2,202 (96,964)
Net cash 43,434 7,899 (875) 2,717 53,175
Lease liabilities (48,556) 14,810 (21,838) 668 (54,916)
Net debt including
lease liabilities (5,122) 22,709 (22,713) 3,385 (1,741)
---------- ---------- ---------- ------------ ---------
Origin Enterprises plc
Notes to the preliminary results statement (continued)
For the financial year ended 31 July 2023
12 Share capital
2023 2022
EUR'000 EUR'000
Authorised
250,000,000 ordinary shares of EUR0.01 each (i) 2,500 2,500
Allotted, called up and fully paid
125,320,375 (2023: 125,317,865) ordinary shares of EUR0.01 each (i) (ii) 1,253 1,253
Number of ordinary shares Nominal value of shares
EUR'000
Allotted, called up and
fully paid
At 1 August 2022 125,317,865 1,253
Share options exercised
(ii) 2,510 -
At 31 July 2023 125,320,375 1,253
Number of treasury shares Nominal value of shares Carrying value of shares
EUR'000 EUR'000
Treasury shares in issue
At 1 August 2022 (9,763,176) (98) (36,005)
Share buyback (iii) (4,928,216) (49) (20,000)
Re-issue of treasury shares
(iv) 1,132,908 11 4,316
(13,558,484) (136) (51,689)
(i) Ordinary shareholders are entitled to dividends as declared
and each ordinary share carries equal voting rights at meetings of
the Company.
(ii) In the current financial year, the issued ordinary share
capital was increased by the issue of 2,510 ordinary shares of
nominal value EUR0.01 each, at an issue price of EUR2.02 each
pursuant to the terms of the Origin Save As You Earn Scheme.
(iii) During the financial year, the Group completed a share
buyback programme. The total number of ordinary shares purchased by
the Group was 4,928,216 for a total consideration before expenses
of EUR20 million. The re-purchased shares are held as treasury
shares.
(iv) During the financial year, the Group re-issued 1,132,908
treasury shares to satisfy the exercise of share options granted
under the Group's UK and ROI Savings Related Share Option
Schemes.
Origin Enterprises plc
Notes to the preliminary results statement (continued)
For the financial year ended 31 July 2023
13 Return on capital employed
Return on capital employed is a key performance indicator for
the Group and represents Group earnings before interest, tax and
amortisation of non-ERP related intangible assets taken as a
percentage of Group net assets and is consistent with the
definition approved as part of the 2015 Long Term Incentive
Plan.
2023 2022
EUR'000 EUR'000
Total assets 1,375,601 1,512,408
Total liabilities (965,008) (1,109,631)
Adjusted for:
Net debt 1,741 5,122
Tax, put option and derivative financial
instruments, net 50,292 51,987
Accumulated amortisation of non-ERP
related intangible assets 84,557 72,793
---------- ------------
Capital employed 547,183 532,679
---------- ------------
Average capital employed 754,287 691,369
========== ============
Operating profit (excluding exceptional
items) 77,356 104,504
Amortisation of non-ERP intangible
assets 13,435 15,236
Share of profit of associates and
joint venture 4,040 6,845
---------- ------------
Return 94,831 126,585
========== ============
Return on capital employed 12.6% 18.3%
In years where the Group makes significant acquisitions or
disposals, the return on invested capital calculation is adjusted
accordingly to ensure that the impact of the acquisition or
disposal is time apportioned appropriately.
14 Related party transactions
Related party transactions occurring in the year were similar in
nature to those described in the 2022 Annual Report.
15 Dividend
The Board is recommending a final dividend of 13.65 cent per
ordinary share (2022: 12.85) which when combined with the interim
dividend of 3.15 cent per ordinary share brings the total dividend
for the year to 16.80 cent per share (2022: 16.00 cent per share).
Subject to shareholders' approval at the Annual General Meeting,
the dividend will be paid on 9 February 2024 to shareholders on the
register on 19 January 2024. In accordance with IFRS, this dividend
has not been provided for in the Consolidated Statement of
Financial Position as at 31 July 2023.
Origin Enterprises plc
Notes to the preliminary results statement (continued)
For the financial year ended 31 July 2023
16 Financial commitments
The Group has a financial commitment of EUR2.2 million
attributable to a strategic partnership with University College
Dublin ('UCD'). The commitment is over a five year period and was
extended until January 2024.
17 Subsequent events
In August 2023, the Group exercised the option to acquire the
remaining 35 per cent interest in FortGreen Comercial Agrícola
Ltda.
In addition, the Group acquired the business and operating
assets of Suregreen Limited, a UK based landscape and gardening
products supplier for trade professionals and DIY customers from
its Administrators.
Subsequent to year end, the Group took the difficult decision to
wind down operations in Ukraine, and it will cease trading
effective 29 September 2023.
There have been no other material events subsequent to 31 July
2023 that would require adjustment to or disclosure in this
report.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR UVARRORUKUUR
(END) Dow Jones Newswires
September 26, 2023 02:00 ET (06:00 GMT)
Origin Enterprises (LSE:OGN)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Origin Enterprises (LSE:OGN)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024
