Simonds Farsons Cisk Plc

Earnings Release • Sep 26, 2012

Simonds Farsons Cisk p.l.c. The Brewery, Mriehel, BKR 3000, Malta Phone: (+356) 238 14 114 Fax: (+356) 238 14 150 Website: http://www.farsons.com Email: sfc@farsons.com Registration Number: C 113

COMPANY ANNOUNCEMENT

The following is a Company Announcement issued by Simonds Farsons Cisk p.l.c. pursuant to MFSA Listing Rule 5.16.4, 5.16.20, 5.74 and 5.75.

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At its meeting held today 26 th September 2012, the Board of Directors of Simonds Farsons Cisk p.l.c. approved the group's unaudited financial statements and half yearly Directors' report for the six month period ending 31st July 2012.

A copy of these financial statements and report are attached herewith and are also available to the public on www.farsons.com.

The Board of Directors of Simonds Farsons Cisk p.l.c. also resolved to distribute, out of tax exempt profits, an interim dividend of € 0.0133 per share on all ordinary shares. This dividend will be paid on Friday 19th October 2012 to the ordinary shareholders who will be on the Register as at the close of business on Friday 5 th October 2012. This will amount to a total interim net dividend of € 400,000.

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ANTOINETTE CARUANA Company Secretary

26 th September 2012

SIMONDS FARSONS CISK plc INTERIM REPORT 2012

Interim Directors' Report

Trading Performanc

The board of directors is pleased to submit the group's interim results for the six months ended 31 July 2012.

The group achieved an operating profit of €4.7 million, an improvement of €1.2 million (33%) over the operating profit for the comparable period last year. Group turnover increased by 10% to almost reach the €40 million mark (2011: €36 million). Profit after tax for the period amounted to €3.8 million, an increase of €1.2 million on 45% over the first six months of the previous financial year.

In spite of the persistent competitive pressures, the group has delivered a strong financial performance, largely attributable to

· A strong performance of company-owned brands such as Cisk and Kinnie;

FARSONS GROUP

Farsons

· Incremental growth coming from product innovation

· Improved efficiencies at both operational and administration levels;

· Increased volumes through the beverage importation arm;

· Record tourist numbers particularly during the summer period and exceptional warm weather conditions conducive to higher beverage consumption

· Continuous effort to contain overheads across the group

Though the challenging international economic environment, particularly within the Eurozone, has slowed the company's export performance, results still remain encouraging

The board of directors is satisfied with the group's performance and believes that the group's business model is well structured to continue to face today's market realities by ensuring a competitive response in the fast changing and dynamic economy. The continued transformation of the business model into an even more robust and resilient one will remain a priority. These results are critically important for the group to be able to adequately sustain further investments.

The immediate outlook for the forthcoming months is much dependent on international and local economic circumstances together with the sustainment of tourist numbers

The recently inaugurated brew house investment will contribute further towards improving the company's brewing capabilities, production efficiency levels and overall competitive advantage

The directors remain determined that innovation and export growth will continue to sustain a profitable business model and increased shareholder value going forward.

Dividends

During the period under review, the company paid to the ordinary shareholders a final dividend, out of tax exempt profits, of €1.7 million on 21 June 2012 in respect of the financial year ending 31 January 2012.

The board of directors is recommending a net interim dividend of €400,000 in respect of the financial year ending 31 January 2013, payable on 19 October 2012 to the ordinary shareholders on the register of members of the company on 5 October 2012. The interim dividend will be paid out of tax exempt profits and is equivalent to €0.0133 per share

Statement pursuant to Listing Rule 5.75.3 issued by the Listing Authority

I hereby confirm that to the best of my knowledge:

· the condensed interim financial information gives a true and fair view of the financial position of the group as at 31 July 2012, and of its financial performance and cash flows for the period then ended, in accordance with International Financial Reporting Standards as adopted by the EU applicable to Interim Financial Reporting (IAS34); and

· the Interim Directors' Report includes a fair review of the information required in terms of Listing Rules 5.81 to 5.84.

Linis Forngia

Louis A. Farrugia - Chairman 26 September 2012

Condensed Consolidated Statement of Financial Position As at 31 July 2012

	Group
	31 July 2012 (unaudited) € 000	31 January 2012 (audited) €'000
Assets
Non-current assets	125.076	119.664
Current assets	36,534	28.209
Total assets	161,610	147,873
Equity and Liabilities Capital and reserves attributable to owners of the company	90,166	88,186
Non-current liabilities	38,644	39,259
Current liabilities	32,800	20,428
Total liabilities	71,444	59.687
Total equity and liabilities	161,610	147,873

Condensed Consolidated Income Statement Six months ended 31 July 2012

	State of Children Market State
	31 July 2012 (unaudited) €'000	31 July 2011 (unaudited) €'000
Revenue	39,582	36.073
Gross profit	14,966	13,601
Operating profit	4.736	3,565
Finance costs	(746)	(784)
Profit before tax	3,990	2,781
Tax expense	(211)	(175)
Profit for the period	3,779	2.606
Earnings per share	€0.126	€0.087

Condensed Consolidated Statement of Comprehensive Income 5x months ended 31 July 2012

		Group
	31 July 2012	31 July 2011
	(unaudited)	(unaudited)
	€ 000	€ 000
Profit for the period	3,779	2.606
Other comprehensive income:
Cash flow hedges net of deferred tax	(99)
Other comprehensive income for the period	(99)
Total comprehensive income for the period	3,680	2,606

Condensed Statement of Changes in Equifty Six months ended 31 July 2012

	Revaluation
	Share capital € 000	Hedging reserve	and other reserves €000	Retained earnings €000	Total equity € 000
		€'000
Group
Period ended 31 July 2011
Balance at 1 February 2011	9,000		58,421	18,339	85,760
Profit for the six months ended 31 July 2011				2.606	2,606
Dividends				(1.600)	(1,600)
Balance at 31 July 2011	9,000		58,421	19,345	86,766
Period ended 31 July 2012
Balance at 1 February 2012	9,000	(296)	58,421	21,061	88,186
Profit for the six months ended 31 July 2012				3,779	3,779
Cash flow hedges net of deferred tax		(gg)			(dd)
Dividends				(1,700)	(1,700)
Balance at 31 July 2012	9,000	(395)	58,421	23,140	90,166

Condensed Consolidated Statement of Cash Flows Six months ended 31 July 2012

		Group
	31 July 2012	31 July 2011
	(unaudited)	(unaudited)
	€ 000	€ 000
Net cash from operating activities	6,157	4.471
Net cash used in investing activities	(5,690)	(3,423)
Net cash (used in)/from financing activities	(2.575)	974
Net movement in cash and cash equivalents	(2,108)	2,022
Cash and cash equivalents at beginning of period	(3.041)	(3.584)
Cash and cash equivalents at end of period	(5.149)	(1.562)

Notes to the Condensed Consolidated Interim Financial Statements

1. This report is being published pursuant to the terms of Chapter 5 of the Listing Rules issued by the Listing Authority and the Prevention of Financial Markets Abuse Act 2005.

2. The financial information being published has been extracted from the Simonds Farsons Cisk group's unaudited interim financial statements for the six months ended 31 July 2012, prepared in accordance with accounting standards adopted for use in the European Union for reported interim financial information (IAS 34 - Interim Financial Reporting). In terms of Listing Rule 5.75.5, this interim report has not been audited by the group's independent auditors.

3. The accounting policies used in the preparation of the interim financial information are consistent with those used in the annual financial statements for the year ended 31 January 2012.

4. The group's operations consist of the brewing, production and sale of beer and branded beverages, the importation, wholesale and retail of food and beverages, including wines and spirits, the operation of franchised food retailing establishments and property management. These operations are carried out, primarily, on the local market. An analysis by business segment of the group's turnover and operating profit is set out below:

		Importation,
	Brewing,	wholesale &
	production	retail of food	Operation of
	& sale of	& beverages,	franchised
	branded beers	including	food retailing	Property
	& beverages	wines & spirits	establishments	management	Group
	€ 000	€000	€'000	€ 000	€'000
Period ended 31 July 2012
Turnover	23,394	13,343	4.968	573	42,278
Less: inter-divisional sales	(864)	(1,469)		(363)	(2,696)
	22,530	11,874	4,968	210	39,582
Segment results	4.164	1.080	265	83	5,592
Unallocated costs					(856)
Operating profit					4,736
Period ended 31 July 2011
Turnover	22,250	11.415	4,774	452	38,891
Less: inter-divisional sales	(726)	(1,792)		(300)	(2,818)
	21,524	9,623	4.774	152	36,073
Segment result	3.150	1.002	232	37	4,421
Unallocated costs					(856)
Operating profit					3,565

1. During the six months ended 31 July 2012, the principal group additions to property, plant and equipment related to the new brew house totalling €4.5 million. Moreover, related capital commitments as at reporting date amounted to €0.9 million.

2. Earnings per share is based on the profit after tax attributable to the ordinary shareholders of Simonds Farsons Cisk p.l.c. divided by the weighted average number of ordinary shares in issue during the period and ranking for dividend.

SIMONDS FARSONS CISK plc

The Brewery, Mdina Road, Mriehel BKR 3000, Malta. Telephone: (+356) 2381 4114 Telefax: (+356) 2381 4150 http://www.farsons.com email: sfc@farsons.com