ROEBUCK FOOD GROUP PUBLIC LIMITED COMPANY

Interim / Quarterly Report • Sep 28, 2022

National Storage Mechanism | Additional information

RNS Number : 8923A

Roebuck Food Group PLC

28 September 2022

Roebuck Food Group plc

Interim results 2022

Results

Roebuck Food Group plc (AIM: RFG), is pleased to announce its interim results for the six months ended 30 June 2022.

Financial Highlights

·    Sales increased by 14%, from £11m to £12.5m.

·    Operating profit from continued operations £0.2m (2021 loss of £0.2m).

·    Net debt of £1m (Dec 21 Net cash £1.4m). This has mainly arisen after settling £1.5m of liabilities in respect of the sale of the cold stores.

·    Milk production increased 8.4%

·    Operating margin at the Sourcing Division increased from 1.2% to 1.9%

·    Operating profit from dairy division increased from breakeven to £0.2m

Divisional Highlights

£'m	Sourcing			Dairy
	Jun-22 £'000	Jun-21 £'000	% Growth	Jun-22 £'000	Jun-21 £'000	% Growth
Revenue	11,772	10,479	12.3%	761	508	49
Operating Profit	225	121	85.9%	213	32	(566%)
Operating Margin	1.9%	1.2%		28%	6.3%

Sourcing Division

Sales at our sourcing division increased by 12%, compared with the same period in 2021, from £10.5m to £11.8m. Operating profit improved from £121,000 to £225,000.

Our product sourcing division has seen strong half year growth with continuous development of the protein export business to South Africa and South America. The sourcing division has also diversified it's product portfolio to also include Dairy Powders, Ingredients and Plant Based Ingredients.

As part of a strategic alignment with Townview Foods Limited. Foro International Connections Ltd has been rebranded to Townview Sourcing Ltd in May 2022.

Dairy Division

Our primary dairy operation, Cantwellscourt Farm Ltd, continues to perform well. Milk production for half year was up 8.4%, whilst pricing was up 32% year on year. This was partially offset by input cost inflation, particularly in feed and fertiliser; our pasture-based system gives us some protection from rising input prices. Whilst weather was favourable in the first half of the year, we experienced some drought conditions toward the end of summer which will have some impact on feed costs and production in the second half. Overall, we expect a strong performance for the full year, mainly driven by higher dairy prices but also consistent performance across our main operating KPIs for production, pasture and animal health.

Our subsidiary, Grass to Milk Company Ltd, had a difficult first half, it exited the  Chinese market due to ongoing lockdowns, supply chain disruptions and cost inflation. China has proven a difficult market for a majority of Overseas Dairy Companies over the past 24-months. At this juncture, management is assessing commercialisation options for A2 protein ingredients in other export markets, particularly the US, where a shortage of domestic infant formula has created significant opportunities for overseas brands. Commercialisation of these market opportunities is likely to take 12-24 months.  

Discontinued

Our subsidiary Grass to Milk Company produced and shipped A2-protein liquid dairy products for the Chinese market which we exited in the first half of 2022 due to ongoing lockdowns, supply chain disruptions and cost inflation. We have impaired the intangible asset along with costs totalling £1m.

On the 28th October 2021, we sold the cold store business, resulting in a profit on disposal of £40m. Following the sale, we made a capital return to shareholders of £1.66 per share totaling £49.9m in November 2021. In the first half of the year we paid £1.5m in discharging liabilities in respect of the sale of the business.

Strategic Review

Following the successful sale of its Cold Stores business, Roebuck Food Group PLC (RFG), formerly known as Norish PLC, returned £49.92m to shareholders at the end of 2021. Your board is conducting a strategic review of the group's businesses, with a view to maximising shareholder value and / or liquidity in the company's shares.

Dividend

The board does not recommend the payment of an interim dividend, unchanged from last year.

Roebuck Food Group Plc
Consolidated income statement
For the six months ended 30 June 2022
							Six months		Six months			Year
							ended		ended			ended
							30 June		30 June			31 December
							2022		2021			2021
							(Unaudited)		(Restated)			(Restated)
							£'000		£'000			£'000
Continuing operations
Revenue							12,533		10,987			24,452
Cost of sales							(12,228)		(10,947)			(24,256)
Gross profit							305		40			196
Other income							133		113			161
Administrative expenses							(200)		(402)			(500)
Fixed asset impairment							-		-			(862)
Operating profit/(loss) from continuing operations							238		(249)			(1,005)
Finance income - interest receivable							-		-			-
Finance expenses - lease interest							(13)		(13)			(26)
Finance expenses - interest on bank loans							(29)		(16)			(36)
Profit/(loss) on continuing activities before taxation							196		(278)			(1,067)
Income taxes - Corporation tax							-		-			(20)
Income taxes - Deferred tax							-		-			33
Profit/(loss) for the period attributable to owners of the parent from continuing operations							196		(278)			(1,054)
(Loss)/profit from discontinued activities							(1,096)		1,286			39,121
(Loss)/Profit for the period							(900)		1,008			38,067
Other comprehensive income							178		(228)			(355)
Total comprehensive income for the year							(722)		780			37,712
Earnings per share expressed in pence per share:
From continuing operations - basic							0.65p		(0.92)p			(3.5)p
- diluted							0.65p		(0.92)p			(3.5)p
From discontinued operations - basic							(3.65)p		4.28p			130.1p
- diluted							(3.65)p		4.28p			130.1p
Roebuck Food Group plc
Financial position
As at 30 June 2022
				As at		As at				As at
				30 June		30 June				31 December
				2022		2021				2021
				(Unaudited)		(Restated)				(Audited)
				£'000		£'000				£'000
ASSETS
Non-current assets
Goodwill				2,338		2,338				2,338
Intangible assets				-		1,906				665
Biological assets				928		856				762
Property, plant and equipment				2,188		22,960				2,014
				5,454		28,060				5,779
Current assets
Trade and other receivables				4,231		8,494				3,988
Inventories				449		157				97
Cash and cash equivalents				2,255		843				4,543
Assets of disposal group classified as held for sale				-		270				-
				6,935		9,764				8,628
TOTAL ASSETS				12,389		37,824				14,407
Equity attributable to equity holders of the parent And non-controlling interest
Share capital				564		5,640				564
Share premium account				-		7,321				-
Other reserves				(59)		(87)				(237)
Retained earnings				5,552		6,758				6,452
TOTAL EQUITY				6,057		19,632				6,779
Non-current liabilities
Borrowings				954		5,052				794
Deferred tax				35		1,244				35
				989		6,296				829
Current liabilities
Trade and other payables				2,667		6,119				2,579
Current tax liabilities				-		450				-
Liabilities held for sale				330		-				1,869
Borrowings				2,346		5,327				2,351
				5,343		11,896				6,799
TOTAL EQUITY AND LIABILITIES				12,389		37,824				14,407
Roebuck Food Group plc
Consolidated statement of changes in equity For the six months ended 30 June 2022
	Share	Share	Other		Other Distributable			Retained
	capital	premium	Reserves		Reserves			earnings			Total
	£'000	£'000	£'000		£'000			£'000			£'000
At 1 January 2021	5,640	7,321	141		-			5,750			18,852
Profit for the financial year	-	-	-		-			1,008			1,008
Foreign exchange gain	-	-	(228)		-			-			(228)
Total comprehensive income for the period	-	-	(228)		-			1,008			780
Issue of share capital	-	-	-		-			-			-
Equity dividends paid (recognised directly in equity)	-	-	-		-			-			-
Transactions with owners	-	-	(228)		-			1,008			780
At 30 June 2021	5,640	7,321	(87)		-			6,758			19,632
Net profit for the financial period	-	-	-		-			37,059			37,059
Foreign exchange loss	-	-	(127)		-			-			(127)
Total comprehensive income for the period	-	-	(127)		-			37,059			36,932
Issue of share capital	-	-	-		-			-			-
Equity dividends paid	-	-	-		-			(510)			(510)
Capital redemption	-	-	-		(12,420)			(37,497)			(49,917)
Gain on capital redemption	-	-	-		-			-			-
JSOP	-	-	-		-			642			642
Reduction in capital	(5,076)	(7,321)	(23)		12,420			-			-
Transactions with owners	(5,076)	(7,321)	(23)		-			(37,365)			(49,785)
At 31 December 2021	564	-	(237)		-			6,452			6,779

Net profit for the financial period	-	-	-	-	(900)	(900)
Foreign Exchange Gain	-	-	178	-	-	178
Total comprehensive income for the period	-	-	178	-	(900)	(722)
Issue of share capital	-	-	-	-	-	-
Equity dividends paid (recognised directly in equity)	-	-	-	-	-	-
Transactions with owners	-	-	178	-	(900)	(722)
At 30 June 2022	564	-	(59)	-	5,552	6,057

Roebuck Food Group plc
Consolidated cash flow statement
For the six months ended 30 June 2022
	Six months	Six months	Year
	Ended	ended	Ended
	30 June	30 June	31 December
	2022	2021	2021
	(Unaudited)	(Restated)	(Restated)
	£'000	£'000	£'000
Profit/(loss) on continuing activities before taxation	196	(278)	(1,067)
Gain on biological assets	(133)	(113)	(161)
Foreign exchange loss/(gain)	54	453	(50)
(Loss)/profit on discontinued activities	(1,096)	1,286	(269)
Finance expenses	42	29	62
Bad debt expenses	-	-	13
Taxation charge	-	-	(5)
Impairment - Intangible Asset	665	-	860
Impairment - property, plant and equipment	-	-	1,519
Depreciation - property, plant and equipment	84	987	1,699
	(188)	2,364	2,601
Changes in working capital:
Increase in inventories	(352)	(99)	(39)
(Increase)/decrease in trade and other receivables	(243)	(968)	10
Increase in trade and other receivables for disposal	-	111	381
Decrease/(increase) in current liabilities held for sale	(1,539)	-	1,869
Increase/(decrease) in payables	88	(169)	(554)
Cash generated from operations	(2,234)	1,239	4,268
Taxation refund/(paid)	-	22	(205)
Net cash generated from operating activities	(2,234)	1,261	4,063
Investing activities
Investment in intangible assets	-	(685)	(986)
Purchase of biological assets	(12)	(10)	(9)
Sale of biological assets	13	8	127
Proceeds on disposal of subsidiary	-	-	55,160
Costs incurred on disposal of subsidiary	-	-	(3,533)
Cash included in subsidiary disposed	-	-	(72)
Purchase of property, plant and equipment	(211)	(1,177)	(1,840)
Net cash used in investing activities	(210)	(1,864)	48,847
Financing activities
Dividends paid to shareholders	-	-	(510)
Invoice finance receipts	3	475	1,016
Finance lease capital repayments	(10)	(623)	(1,390)
Finance lease advance	172	258	616
Capital redemption JSOP	-	-	642
Share capital redemption	-	-	(49,917)
Term loan repayments	(9)	(214)	(374)
Net cash used in financing activities	156	(104)	(49,917)
Net (decrease)/increase in cash and cash equivalents	(2,288)	(707)	2,993
Cash and cash equivalents, at beginning of period	4,543	1,550	1,550
Cash and cash equivalents end of period	2,255	843	4,543

Note: The accounting policies applied throughout the period are consistent with those applied for the year ended 31 December 2021, as set out in the 2021 Annual Report.

Enquiries:

Roebuck Food Group
Gerard Murphy, Finance Director	Telephone: + 44 28 30257760
Davy
Anthony Farrell	Telephone: + 353 1 679 6363

Six months

Year

ended

Ended

30 June

31 December

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