Donegal Investment

AGM Information • Aug 26, 2020

National Storage Mechanism | Additional information

RNS Number : 2549X

Donegal Investment Group PLC

26 August 2020

Donegal Investment Group plc

("Donegal" or the "Company")

26 August 2020

AGM Statement and Results of AGM and EGM

AGM Statement and Results

Donegal Investment Group Plc held its AGM today.

The Chairman Mr. Geoffrey Vance stated that the Group had delivered a strong performance for the year ended 31 August 2019.  Group Revenues increased by 11.4% to €45.2m and Segmental Trading Profit increased by 47% to €4m.  During the year the Group completed the disposal of its non-core animal feeds business, Robert Smyth & Sons.  The Chairman commented on the positive developments in produce seed potato with six new varieties coming on stream during the year and on the capital expenditure program in NOMADIC, which has resulted in a doubling of capacity.

Mr. Vance referred to the planned return of capital to shareholders, which if passed at the EGM (which took place immediately following the AGM) would lead to the return of approximately €10m in capital to shareholders. 

In respect of the current year, Mr. Ian Ireland, Managing Director, noted that the produce seed potato business experienced a more normal growing season and that the business will perform to plan albeit not as strongly as the prior year 2019 but which is still expected to be the second best ever year's performance by the produce seed potato business.  With respect to NOMADIC, volumes fell by approximately 50% as a result of the Covid-19 pandemic, but due to action taken by management and improvements in footfall, volumes are now approximately 25% down on 2019 levels. A number of initiatives during the year included a new cold store project in Kenya as well as completion of a material capital investment spend in NOMADIC.  For the year ahead the Group will look to rebuild volumes in NOMADIC, complete the Kenya cold store project and deliver a successful season in seed potato, all against the back drop of Brexit and the current Covid-19 pandemic.

Mr. Vance thanked staff and management for their contribution in the last year and expressed the confidence of the Board in the management team to continue to deliver value for shareholders in the future.

Each of the resolutions proposed at its Annual General Meeting today were approved by shareholders. The full text of each resolution was set out in the Notice of Annual General Meeting circulated to shareholders and available on the Company's website.

Results of EGM - Return of Capital

The Board of Donegal is pleased to announce that the resolutions proposed to shareholders at today's EGM pertaining to the Company's proposed Return of Capital, as announced on 27 July 2020 and as fully described in the EGM Circular of 31 July 2020, were also duly passed.  The full text of each resolution was set out in the Notice of Extraordinary General Meeting and the EGM Circular, each of which were circulated to shareholders and are available on the Company's website.  All capitalised terms and definitions pertaining to the Return of Capital contained in this Announcement shall have the meaning ascribed thereto in the EGM Circular.

Resolution	Total Votes Validly Cast	% of Ordinary Shares Outstanding	For (% of Ordinary Shares Outstanding)	Against (% of Ordinary Shares Outstanding)	Votes withheld
1.   To convert certain existing Ordinary Shares into Redeemable Ordinary Shares and to do so by amending the Memorandum & Articles of Association of the Company	1,739,684	48.80	86.32	13.68	0
2.   To reduce the authorised share capital of the Company by the cancellation and removal of 4,340,000 Redeemable Ordinary Shares and increase same by 800,000 Deferred Shares of €0.13 and within six months of Resolution 1 becoming effective, the reduction of the authorised share capital to €6,604,000 by the removal of 800,000 Deferred Shares if no Deferred Shares come into existence	1,739,660	48.80	86.32	13.68	24

Pursuant to terms of the Return of Capital the Conversion shall take place at 6:00pm on Thursday, 27 August 2020 and the Redemption shall take place at 12.01am on Friday, 28 August 2020.

Enquiries:

Donegal Investment Group plc
Padraic Lenehan, Finance Director	Tel: +353749121766
Investec Europe Limited
Jonathan Simmons, Director	Tel: +35316115945

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