Donegal Investment

title: DONEGAL CREAMERIES PLC
author: thanlon
date: 2021-04-28 12:34:00+00:00

Share redemption

DONEGAL INVESTMENT GROUP PLC

ANNOUNCEMENT OF RESULTS FOR THE 6 MONTHS ENDED 28 FEBRUARY 2021

29 April 2021

Donegal Investment Group plc (‘DIG’) (‘Company’) (‘Group’) reports its interim results for the 6 months ended 28 February 2021.

FINANCIAL PERFORMANCE

The Group’s Produce and Dairy segment delivered a reasonable performance during the first half of the year. Group revenue decreased by 11% (€3.2m) to €26.4m – with ongoing Covid-19 restrictions continuing to impact demand in our speciality dairy business while pricing in our seed potato business was marginally down on the prior year with segmental trading profit €2.6m, an increase of €0.2m on the prior period.

Volumes in our seed potato business were broadly in line with the prior year while pricing and resulting margins remained tight.

Speciality dairy, which trades under the NOMADIC brand, experienced expected lower demand due to the impact of Covid-19 mobility restrictions on the Food to Go category.

Profit after tax was €2.5m an increase of €1.1 m on the prior year.

Basic EPS increased by 48.3c to 82.60c.

FINANCIAL POSITION

The Group’s cash position, net of debt, was -€0.2m at half year end compared to a net position of €13.0m at 29 February 2020.

RETURN OF CAPITAL

Following approval at the EGM on 26 August 2020, the Group completed the redemption of 799,223 ordinary shares of the Company at a price of €12.50 on the 1 September 2020. This resulted in a return of capital of €10.0m to our shareholders in the six months ended 28 February 2021. The Group currently has issued share capital of 2,895,958 with 67,168 of those shares held as treasury shares.

COVID 19

The Group remains very mindful of short to medium term challenges presented by the Covid-19 pandemic and will continue to work to protect the interest of shareholders as well as providing a safe working environment for our employees.

*Net assets are total equity attributable to equity holders of the Company

Enquiries:

H1 2020/21 Performance Review

The Board is satisfied with the first half performance of all businesses which has been delivered in a very challenging trading environment. Whilst turnover has declined as a result of Covid-19 restrictions, operating profit has been maintained for the first half of the year.

Produce and Dairy

Group revenue decreased by 11% (€3.2m) to €26.4m while segmental trading profit was €2.6m, an increase of €0.2m on the prior period.

As anticipated pricing in seed potato markets remained under pressure due to the excess availability of processing potato varieties as a result of Covid-19 restrictions on the Food Service segment. Our seed potato business is primarily focused on table potato varieties and as such the impact of reduced volumes in Food Service has been limited.

NOMADIC while impacted by the Covid-19 mobility restrictions on the Food to Go category benefited from the implementation of effective commercial and operational planning.

Finance

The Group’s financial position remains positive with cash at bank (net of overdraft) of €0.4m at half year, notwithstanding the fact that the 6 months ended 28 February 2021 represents a near peak point in working capital requirements, due to the seasonal nature of our seed potato businesses. Remaining loans and borrowing at 28 February 2021, relate primarily to the capitalised value of leases.

Outlook

The group remains cautiously optimistic about the trading performance of our operating businesses for the second half of 2021.

With restrictions now easing in Great Britain and footfall starting to return to the high street, NOMADIC is confident that its full year plans for FY21 will be delivered and expect to deliver high double-digit growth again in FY22. While still mindful of short to medium challenges presented by Covid, NOMADIC is well placed to deliver on their mission to bring a little balance to everyday and have the platform to double in size again over the next 5 years.

Our produce seed potato business remains on track to deliver a satisfactory performance for the full year given trading conditions, but final outturn is dependent on performance of key markets in the latter half of the year.

Relative to the scale of its operations and its trading businesses the Group remains in a strongly capitalised position. The Group will continue to review all options available to ensure we continue to maximise long-term shareholder value.

AGM

The Board of Directors is currently reviewing options to convene an AGM over the coming months. The Board would favour the AGM taking place at a time which would allow our shareholders to attend as normal should the current restrictions be lifted.

Geoffrey Vance

Chairman

Donegal Investment Group plc

Condensed consolidated statement of profit or loss and comprehensive income

for the 6 months ended 28 February 2021

Donegal Investment Group plc

Condensed consolidated statement of financial position

As at 28 February 2021

Donegal Investment Group plc

Condensed consolidated statement of changes in equity

for the 6 months ended 28 February 2021

Donegal Investment Group plc

Condensed consolidated statement of changes in equity

for the 6 months ended 28 February 2021

Donegal Investment Group plc

Condensed consolidated statement of cash flows

for the 6 months ended 28 February 2021 -

Donegal Investment Group plc

Condensed consolidated statement of cash flows (continued)

for the 6 months ended 28 February 2021

Donegal Investment Group plc

Notes to the unaudited preliminary condensed consolidated financial statements

for the 6 months ended 28 February 2021

Reporting entity

Donegal Investment Group Plc (the “Company”) is a company domiciled in Ireland. The unaudited condensed consolidated interim financial statements of the Group as at and for the six months ended 28 February 2021 (“the interim financial statements”) comprise the Company and its subsidiaries (together referred to as the “Group”) and the Group’s interests in associates.

(2) Basis of preparation

These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the Group's last annual consolidated financial statements as at and for the year ended 31 August 2020 ('last annual financial statements'). They do not include all of the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements.

The 28 February 2021 figures and the 29 February 2020 comparative figures do not constitute statutory financial statements of the Group within the meaning of the Companies Act, 2014. The consolidated financial statements of the Group for the year ended 31 August 2020, together with the independent auditor's report thereon, were filed with the Irish Registrar of Companies following the Company's Annual General Meeting and are also available on the Company's Website. The auditor's report on those financial statements was unqualified.

The interim financial statements have been prepared on the going concern basis. The Directors have reviewed the Group's business plan for the next 12 months which has been updated to reflect the ongoing impact of Covid-19 as currently understood and other relevant information and have a reasonable expectation that the Group will continue in operational existence for the foreseeable future.

The Interim Financial Statements are presented in Euro, rounded to the nearest thousand, which is the functional currency of the Company and also the presentation currency for the Group's financial reporting.

The significant accounting policies applied in these interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ending 31 August 2020.

(3) Estimates and judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied in prior impairment of trade receivables, in respect of the carrying value of goodwill , recognition of deferred tax assets, measurement of financial assets and liabilities.

Donegal Investment Group plc

Notes to the unaudited preliminary condensed consolidated financial statements

for the 6 months ended 28 February 2021

(4) 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.

Produce and dairy: The growing, sales and distribution of seed potatoes and organic produce, the manufacture, sale and distribution of dairy products and management of related property assets.

Information regarding the results of the reportable segment is included below. Performance is measured based on segment operating profit/(loss) as included in the internal management reports that are reviewed by the Group’s CODM, being the Board. Segment operating profit is used to measure performance; as such information is the most relevant in evaluating the results of the Group’s segments. Segment results, assets and liabilities include all items directly attributable to a segment. Segment capital expenditure is the total amount incurred during the period to acquire segment assets that are expected to be used for more than one accounting period.

Donegal Investment Group plc

Notes to the unaudited preliminary condensed consolidated financial statements (continued)

for the 6 months ended 28 February 2021

(4) Segment information (continued)

Business segments (continued)

Donegal Investment Group plc

Notes to the unaudited preliminary condensed consolidated financial statements (continued)

for the 6 months ended 28 February 2021

(4) Segment Information (continued)

Business segments (continued)

Donegal Investment Group plc

Notes to the unaudited preliminary condensed consolidated financial statements (continued)

for the 6 months ended 28 February 2021

(4) Segment Information (continued)

Entity-wide disclosures

Section 1: Information about products and service

The Group determines that the categories used in investor presentations can be used to meet the objective of the disaggregation disclosure requirement in paragraph 114 of IFRS 15, which is to disaggregate revenue from contracts with customers into categories that depicts how the nature, amount, timing and uncertainty of revenue and cashflows are affected by economic factors.

The following table illustrates the disaggregation disclosure by principal products and services to external customers.

                                                                                                                                       Produce and Dairy

(5) Other income – continuing operations

Donegal Investment Group plc

Notes to the unaudited preliminary condensed consolidated financial statements (continued)

for the 6 months ended 28 February 2021

(6) Earnings per share

The calculation of basic and diluted earnings per share is set out below:

Donegal Investment Group plc

Notes to the unaudited preliminary condensed consolidated financial statements (continued)

for the 6 months ended 28 February 2021

(7) Property, plant and equipment

Additions and disposals

During the 6 months ended 28 February 2021, the Group acquired assets for €830,180 (29 February 2020: €2,917,974) in addition to recognition of €55,106 (29 February 2020: €853,322) in right of use assets under IFRS 16. Assets with a net book value of €6,000 were disposed of during the 6 months ended 28 February 2021 (29 February 2020: €16,000), resulting in a loss on disposal of €3,000 (29 February 2020: gain of €11,000).

Investment property includes the Oatfield site in Letterkenny and development land in Donegal.

(9) Exceptional items

Exceptional items are those that, in management’s judgement, should be separately disclosed by virtue of their nature or amount. Such items are included in the statement of profit or loss and comprehensive income caption to which they relate and are separately disclosed in the notes to the Interim Financial Statements. The Group reports the following exceptional items:

a) Restructuring costs include redundancy costs of €117,000 as well as €207,000 related to historical restructuring adjustments.

b) Other legal costs are costs in respect of the share redemption incurred during 2020.

(10) Events after the balance sheet date

There have been no significant events subsequent to the period end, which would require adjustment to, or disclosure in, the interim financial statements.

Donegal Investment Group plc

Notes to the preliminary condensed consolidated financial statements (continued)

for the 6 months ended 28 February 2021

(11) Share Capital

As approved by shareholders at the Extraordinary General Meeting held on 26 August 2020, the Company was authorised to redeem up to 800,000 Redeemable Ordinary Shares. 799,223 Ordinary Shares (approximately 22.25 per cent of each Shareholder's total holding of Ordinary Shares) as at the conversion date of 31 August 2020 were converted into Redeemable Ordinary Shares. 799,223 Redeemable Ordinary Shares which as shown above are presented as financial liabilities in the Group Statement of Financial

Position at 31 August 2020.

Following on from this, 799,223 Redeemable Ordinary shares were redeemed on 1 September 2020 at €12.50 per share. On redemption these shares were cancelled from the issued share capital of the Company with €104k being credited to the Company's Other Undenominated Capital. €9,990,000 was paid during the period in relation to the redemption of Redeemable Ordinary shares.

Following the Return of Capital, the Company's issued Ordinary Share Capital is 2,895,958.

(12) Related party transactions

Details of related party transactions in respect of the year ended 31 August 2020 are contained in Note 34 to the Consolidated Financial Statements of the Group’s 2020 Annual Report. The Group continued to enter into transactions in the normal course of business with its associates and other related parties during the period. There were no transactions with related parties in the period or changes to transactions with related parties disclosed in the 2020 Consolidated Financial Statements that had a material effect on the financial position or the performance of the Group.

|
| | 6 months ended
28 February 2021 | 6 months ended
29 February 2020 |
Change |
| --- | --- | --- | --- | --- |
| Continuing operations | | | | |
| Revenue | €’000 | 26,405 | 29,641 | -€3.2m |
| Segmental Trading profit | €’000 | 2,624 | 2,385 | +€0.2m |
| Operating profit | €’000 | 2,573 | 1,506 | +€1.1m |
| Profit before tax | €’000 | 2,685 | 1,569 | +€1.1m |
| Profit after tax | €’000 | 2,452 | 1,383 | +€1.1m |
| Basic earnings per share | Cent | 82.6 | 34.3c | +48.3c |
| Cash at bank (net of overdraft) | €’000 | 445 | 13,806 | -€13.4m |
| Net (debt)/cash | €’000 | (234) | 13,003 | -€13.2 |
| Investment property fair value | €’000 | 3,695 | 2,510 | +€1.2m |
| Net asset value per share* | €’000 | €6.79 | €7.37 | -€0.58 |

| Investors & Analysts
Ian Ireland
Managing Director
Donegal Investment Group Plc
Tel: 074 9121766
Email: [email protected] |
| --- |

			Unaudited	Unaudited			Unaudited			Audited	Audited

Note |

Pre-Exceptional
€’000 |

Note 11
Exceptional
€’000 |

Note 11
Exceptional
€’000 | 6 months ended 28 February 2021
Total
€’000 |

Pre-Exceptional
€’000 |

Note 11
Exceptional
€’000 | 6 months ended 29 February 2020
Total
€’000 |

Pre-Exceptional
€’000 |

Note 11
Exceptional
€’000 |

Note 11
Exceptional
€’000 | 12 months ended 31 August 2020
Total
€’000 |
| Continuing operations | | | | | | | | | | | | |
| Revenue | 4 | 26,405 | - | - | 26,405 | 29,641 | - | 29,641 | 44,959 | - | - | 44,959 |
| Cost of sales | | (16,788) | - | - | (16,788) | (18,840) | - | (18,840) | (29,036) | - | - | (29,036) |
| | | | | | | | | | | | | |
| Gross profit | | 9,617 | - | - | 9,617 | 10,801 | - | 10,801 | 15,923 | - | - | 15,923 |
| Other income | | 294 | - | - | 294 | 78 | - | 78 | 1,203 | - | - | 1,203 |
| Distribution expenses | | (3,565) | - | - | (3,565) | (4,034) | - | (4,034) | (5,208) | - | - | (5,208) |
| Administrative expenses | | (3,773) | - | - | (3,773) | (5,339) | - | (5,339) | (8,844) | (430) | (430) | (9,274) |
| | | | | | | | | | | | | |
| Profit/(loss) from operating activities | | 2,573 | - | - | 2,573 | 1,506 | - | 1,506 | 3,074 | (430) | (430) | 2,644 |
| | | | | | | | | | | | | |
| Finance income | | 134 | - | - | 134 | 63 | - | 63 | 4 | - | - | 4 |
| Finance expenses | | (22) | - | - | (22) | - | - | - | (47) | - | - | (47) |
| Net finance income/(expense) | | 112 | - | - | 112 | 63 | - | 63 | (43) | - | - | (43) |
| | | | | | | | | | | | | |
| Profit/(loss) before income tax | | 2,685 | - | - | 2,685 | 1,569 | - | 1,569 | 3,031 | (430) | (430) | 2,601 |
| Income tax benefit/(charge) | | (233) | - | - | (233) | (186) | - | (186) | (463) | - | - | (463) |
|
Profit/(loss) for the period |
4 |
2,452 |
- |
- |
2,452 |
1,383 |
- |
1,383 |
2,568 |
2,568 |
(430) |
2,138
|
| | | | | | | | | |
|
|
| |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
|

Donegal Investment Group plc
Condensed consolidated statement of profit or loss and comprehensive income
for the 6 months ended 28 February 2021 |

Donegal Investment Group plc
Condensed consolidated statement of profit or loss and comprehensive income
for the 6 months ended 28 February 2021 | | | | | | | |
| | | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | Audited | Audited | Audited |
| | | 6 months ended 28 February 2021
Total
€’000 | 6 months ended 28 February 2021
Total
€’000 | 6 months ended 28 February 2021
Total
€’000 | 6 months ended 28 February 2021
Total
€’000 | 6 months ended 29 February 2020
Total
€’000 | 6 months ended 29 February 2020
Total
€’000 | 6 months ended 29 February 2020
Total
€’000 | 12 months ended 31 August 2020
Total
€’000 | 12 months ended 31 August 2020
Total
€’000 | 12 months ended 31 August 2020
Total
€’000 | 12 months ended 31 August 2020
Total
€’000 |
| Other comprehensive income | | | | | | | | | | | | |
| Items that are or may be reclassified to profit or loss
Foreign currency translation differences for foreign operations | Items that are or may be reclassified to profit or loss
Foreign currency translation differences for foreign operations | Items that are or may be reclassified to profit or loss
Foreign currency translation differences for foreign operations | Items that are or may be reclassified to profit or loss
Foreign currency translation differences for foreign operations | |
55 | | |
79 | | | |
38 |
| Total comprehensive income for the period | Total comprehensive income for the period | Total comprehensive income for the period | Total comprehensive income for the period | | 2,507 | | | 1,462 | | | | 2,176 |
| | | | | | | | | | | | | |
| Profit attributable to: | | | | | | | | | | | | |
| Equity holders of the Company | | | | | 2,336 | | | 1,319 | | | | 1,957 |
| Non-controlling interest | | | | | 116 | | | 64 | | | | 181 |
| | | | | | 2,452 | | | 1,383 | | | | 2,138 |
| Profit attributable to: | | | | | | | | | | | | |
| Continuing operations | | | | | 2,452 | | | 1,383 | | | | 2,138 |
| Discontinued operations | | | | | - | | | - | | | | - |
| | | | | | 2,452 | | | 1,383 | | | | 2,138 |
| Total comprehensive income attributable to: | Total comprehensive income attributable to: | Total comprehensive income attributable to: | Total comprehensive income attributable to: | | | | | | | | | |
| Equity holders of the Company | | | | | 2,390 | | | 1,393 | | | | 2,003 |
| Non-controlling interest | | | | | 117 | | | 69 | | | | 173 |
| | | | | | 2,507 | | | 1,462 | | | | 2,176 |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
|

Donegal Investment Group plc
Condensed consolidated statement of profit or loss and comprehensive income
for the 6 months ended 28 February 2021 |

Donegal Investment Group plc
Condensed consolidated statement of profit or loss and comprehensive income
for the 6 months ended 28 February 2021 | | | | | | |
| | | | | | Unaudited | | | Unaudited | | | | Audited |
|

Earnings/(loss) per share | | | | | 6 months ended 28 February 2021
Total
€’000 | | | 6 months ended 29 February 2020
Total
€’000 | | | | 12 months ended 31 August 2020
Total
€’000 |
| Basic earnings/(loss) per share
(euro cent):
Continuing | | | | |

82.60 | | |

34.34 | | | |

51.86 |
| Discontinued | | | | | - | | | - | | | | - |
| | | | | | 82.60 | | | 34.34 | | | | 51.86 |
| Diluted earnings/(loss) per share (euro cent):
Continuing | | | | |

82.60 | | |

33.12 | | | |

50.28 |
| Discontinued | | | | | - | | | - | | | | - |
| | | | | | 82.60 | | | 33.12 | | | | 50.28 |

		Unaudited	Unaudited	Audited
	Note	28 February 2021
€’000		29 February 2020
€’000		31
August
2020
€’000
Assets
Property, plant and equipment	7	6,575	6,562	6,497
Investment property	8	3,695	2,510	3,365
Goodwill		2,324	2,324	2,324
Intangible assets		259	288	270
Investment in associates		261	259	260
Other investments		745	747	747
Total non-current assets		13,859	12,690	13,463

Inventories		1,716	1,689	2,197
Trade and other receivables		13,797	12,063	5,278
Cash at bank		5,118	13,878	14,720
Current Tax		-	-	131
Deferred tax asset
Financial instrument		500
-		904
-		569
37

Total current assets		21,131	28,534	22,932

Total assets		34,990	41,224	36,395

Equity
Share capital		376	619	376
Share premium account		2,975	2,975	2,975
Other reserves		1,687	(10,597)	1,101
Retained earnings		14,180	35,315	11,965
Total equity attributable to equity holders of the Company
19,218
28,312
16,417
Non-controlling interest		906	872	872
Total equity		20,124	29,184	17,289

Liabilities
Loans and borrowings		449	563	543
Deferred income		228	273	226
Total non-current liabilities		677	836	769

Loans and borrowings
230
241
227
Trade and other payables		9,188	10,697	7,374
Redeemable Ordinary Shares	11	-	-	9,990
Bank overdraft		4,673	72	746
Current financial instrument		53	60	-
Current tax		45	134	-

Total current liabilities		14,189	11,204	18,337

Total liabilities		14,866	12,040	19,106

Total equity and liabilities		34,990	41,224	36,395

Total
€’000 | Non-
controlling
interest
€’000 |
Total
equity
€’000 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Balance at 1 September 2020 | 376 | 857 | 2,975 | (1,865) | (1,273) | 3,382 | - | - | 11,965 | 16,417 | 872 | 17,289 |
| | | | | | | | | | | | | |
| Total comprehensive income for the period | | | | | | | | | | | | |
| Profit for the period | - | - | - | - | - | - | - | - | 2,336 | 2,336 | 116 | 2,452 |
| Other comprehensive income | | | | | | | | | | | | |
| Foreign currency translation differences for foreign
operations |

54 |

-
|

54 |

1
|

55 |
| Other comprehensive income | - | - | - | 54 | - | - | - | - | - | 54 | 1 | 55 |
| Total comprehensive income for the period |
- |
- |
- |
54 |
- |
- |
- |
- |
2,336 |
2,390 |
117 |
2,507 |

Transactions with owners recorded directly in equity
Contributions by and distributions to owners
Reclassification of redeemable shares
-
104
-
-
-
-
-
-
(104)
-
-
-
Dividend to equity holders
Share based payments
Cash settlement of share options	-
-

- | -

| -
428

- | -

| -
(403)

386
| -
25

386 | (83)

| (83)
25

386 |
| Total contributions by and distributions to owners |
- |
104 |
- |
- |
428 |
- |
- |
- |
(121) |
411 |
(83) |
328 |
| | | | | | | | | | | | | |
| Balance at 28 February 2021 | 376 | 961 | 2,975 | (1,811) | (845) | 3,382 | - | - | 14,180 | 19,218 | 906 | 20,124 |

Total
€’000 | Non-
controlling
interest
€’000 |
Total
equity
€’000 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Balance at 1 September 2019 | 619 | 718 | 2,975 | (1,911) | (6,539) | 3,382 | - | 283 | 33,996 | 33,523 | 838 | 34,361 |
| | | | | | | | | | | | | |
| Total comprehensive income for the period | | | | | | | | | | | | |
| Profit for the period | - | - | - | - | - | - | - | - | 1,319 | 1,319 | 64 | 1,383 |
| Other comprehensive income | | | | | | | | | | | | |
| Foreign currency translation differences
for foreign operations |

74 |

5 |

79 |
| Acquisition of non-controlling interest | - |
- | - | - | - | - | - | - | - |
- |
- |
- |
| Other comprehensive income | - | - | - | 74 | - | - | - | - | - | 74 | 5 | 79 |
| | | | | | | | | | | | | |
| Total comprehensive income for the period |
- |
- |
- |
74 |
- |
- |
- |
- |
1,319 |
1,393 |
69 |
1,462 |

Transactions with owners recorded directly in equity
Contributions by and distributions to owners
Acquisition of treasury shares
-
-
-
-
(6,604)
-
-
-
-
(6,604)
-
(6,604)
Dividend to equity holders	-	-	-	-	-	-	-	-	-	-	(35)	(35)

Total contributions by and distributions to owners
-
-
-
-
(6,604)
-
-
-
-
(6,604)
(35)
(6,639)

Balance at 29 February 2020
619
718
2,975
(1,837)
(13,143)
3,382
-
283
35,315
28,312
872
29,184

|
Note

| 6 months ended 28 February 2021 | | 6 months ended 29 February 2020 | | 12 months ended 31 August 2020 |
| --- | --- | --- | --- | --- | --- |
| | €’000 | | €’000 | | €’000 |
| Cash flows from operating activities | | | | | |
| Profit for the period | 2,452 | | 1,383 | | 2,138 |
| Adjustments for: | | | | | |
| Depreciation | 535 | | 393 | | 949 |
| Amortisation of intangibles | 21 | | 17 | | 35 |
| Amortisation of capital grant | 11 | | - | | 13 |
| Change in fair value of investment property | (41) | | - | | (570) |
| Change in fair value of other investments | 2 | | (2) | | (2) |
| Net finance (income)/expense | (128) | | (63) | | 6 |
| Interest paid in relation to lease liabilities | 16 | | | | 37 |
| Loss/(gain) on sale of property, plant and equipment | 3 | | (11) | | (19) |
| Loss on sale of subsidiary | - | | 17 | | - |
| Share based payments | 51 | | 879 | | 900 |
| Income tax expense | 233 | | 186 | | 463 |
| Change in inventories | 483 | | 443 | | (112) |
| Change in trade and other receivables | (8,329) | | (3,760) | | 2,557 |
| Change in trade and other payables | 2,939 | | 2,246 | | (1,401) |
| | (1,752) | | 1,728 | | 4,994 |
| | | | | | |
| Interest (paid)/refund | (1) | | 32 | | 26 |
| Income tax refund/(paid) | 15 | | (188) | | (421) |
| | | | | | |
| Net cash from operating activities | (1,738) | | 1,572 | | 4,599 |
| | | | | | |
| Cash flows from investing activities | | | | | |
| Interest received | 1 | | 2 | | 3 |
| Dividends received | - | | 1 | | 1 |
| Proceeds from sale of investment property, property, plant and equipment |
- | |
27 | |
30 |
| Proceeds from disposal of subsidiary undertakings, net of disposal cost |
- | |
(17) | |
- |
| Proceeds from disposal of Monaghan Middlebrook Mushrooms | - | | 2,000 | | 2,000 |
| Acquisition of other investments | - | | (154) | | (154) |
| Acquisition of property, plant and equipment | (821) | | (2,914) | | (3,314) |
| Acquisition of intangibles | (9) | | (4) | | (4) |
| | | | | | |
| Net cash used in investing activities | (829) | | (1,059) | | (1,438) |

|
Note | 6 months ended 28 February 2021 | | 6 months ended 29 February 2020 | | 12 months ended 31 August 2020 |
| --- | --- | --- | --- | --- | --- |
| | €’000 | | €’000 | | €’000 |
| Cash flows from financing activities | | | | | |
| Repayment of borrowings | - | | (4,000) | | (4,000) |
| Payment of lease liabilities | (162) | | (151) | | (302) |
| Share based payments
Share redemption 11 | (751)
(9,990) | | (1,310)
- | | (2,899)
- |
| Acquisition of treasury shares | - | | (6,604) | | (7,166) |
| Dividend to equity holders | (83) | | (35) | | (139) |
| | | | | | |
| | | | | | |
| Net cashflow from financing activities | (10,986) | | (12,100) | | (14,506) |
| | | | | | |
| Net (decrease)/increase in cash and cash equivalents | (13,553) | | (11,587) | | (11,345) |
| Cash and cash equivalents at start of period | 13,974 | | 25,327 | | 25,327 |
| Effect of exchange rate fluctuations on cash held | 24 | | 66 | | (8) |
| | | | | | |
| Cash and cash equivalents at period end | 445 | | 13,806 | | 13,974 |

			Produce and Dairy	Produce and Dairy	Produce and Dairy	Total - Group	Total - Group	Total - Group
			6 months ended 28 February 2021	6
months ended 29 February 2020	12
months ended 31 August 2020	6 months ended 28 February 2021	6
months ended 29 February 2020	12
months ended 31 August 2020
			€’000	€’000	€’000	€’000	€’000	€’000

Total revenues			26,405	29,641	44,959	26,405	29,641	44,959

Segment result before exceptional items & property devaluations
Property (revaluation)/devaluations
Segmental result from continuing operations before exceptional items
2,665
(41)

2,624 |
2,385
-

2,385 |
3,402
572

3,974 |
2,665
(41)

2,624 |
2,385
-

 2,385 |

3,402
572

3,974 |
| Other exceptional items | | | | | | | - | - | (430) |
| Net finance income/(expense) | | | | | | | 112 | 63 | (43) |
| Income tax benefit/(expense) | | | | | | | (233) | (186) | (463) |
| Share based payments | | | | | | | (51) | (879) | (900) |
| | | | | | | | | | |
| Profit for the period – continuing operations | | | | | | | 2,452
| 1,383 | 2,138 |

					Produce and Dairy	Produce and Dairy	Produce and Dairy	Total - Group	Total - Group	Total - Group
				28 February 2021	28 February 2021	29 February 2020	31 August 2020	28 February 2021	29 February 2020
31 August 2020
				€’000	€’000	€’000	€’000	€’000	€’000	€’000

Segment assets				29,372	29,372	26,442
21,069	29,372	26,442
21,069
Cash at bank (unallocated)								5,118	13,878	14,720
Current financial instrument (unallocated)
Deferred tax				500	500	904
569	500	904	37
569

| | 34,990 | 41,224 |
36,395 |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Segment liabilities |
| | | | 9,461 | 9,461 | 11,104 |
6,626
| | 9,461 | 11,104 |
6,626
|
| Bank overdraft (unallocated) | | | | | | | | | | 4,673 | 72 | 746 |
| Loans and borrowings (unallocated) | | | | | | | | | | 679 | 804 | 770 |
| Redeemable ordinary shares (unallocated) | | | | | | | | | | - | - | 9,990 |
| Reclassification of equity settles share options as financial liabilities (unallocated) | | | | | | | | | | - | - |
974 |
| Current financial instrument (unallocated) | | | | | | | | | | 53 | 60 | - |
| | | | | | | | | | | | | |
| Total liabilities | | | | | | | | | | 14,866 | 12,040 | 19,106 |
| Capital expenditure (inclusive of IFRS 16) | | | | | 885 | 885 | 3,771 |
4,313 | | 885 | 3,771 |
4,313 |
| Depreciation and amortisation | | | | | 556 | 556 | 410 | 984 | | 556 | 410 | 984 |
| Revaluation of investment property and other assets | | | | | 41 | 41 | - | (572) | | 41 | - | (572) |
| | | | | | | | | | |

| | | |

2021 |

2020 |
| --- | --- | --- | --- | --- |
| | | | €’000 | €’000 |
| | | | | |
| Seed potatoes | | | 19,098 | 20,159 |
| Dairy products | | | 7,307 | 9,482 |
| | | | | |
| | | | 26,405 | 29,641 |
| | | | | |

	28 February 2021	29 February 2020	31 August 2020	2019
	€’000	€’000	€’000	€’000
Income from investment property rentals	35	65	155	80
Change in fair value of investment property	41	-	570	30
Change in fair value of other investments	(2)	2	2
(Loss)/Gain on disposal of property, plant and equipment	(3)	11	19	-
Grant income receivable	103	-	-
Government grant received under wage subsidy scheme	120	-	457	-
	294	78	1,203	110

	28 February 2021	29 February 2020	31 August 2020
	€’000	€’000	€’000
Profit for the period - continuing operations	2,452	1,383	2,138
Profit/(loss) for the period - discontinued operations	-	-	-

Profit for the period	2,452	1,383	2,138

Profit attributable to ordinary shareholders	2,336	1,319	1,957



Weighted average number of ordinary shares
In thousands of shares	28 February 2021	29 February 2020	31 August 2020
Weighted average number of ordinary shares in issue for the period	2,896	4,761	4,542
Weighted average number of treasury shares	(68)	(920)	(768)

Denominator for basic earnings per share	2,828	3,841	3,774
Effect of share options in issue	-	141	118

Weighted average number of ordinary shares (diluted) at end of period	2,828	3,982	3,892

As approved by shareholders at the Extraordinary General Meeting held on 26 August 2020, the Company was authorised to redeem up to 800,000 Redeemable Ordinary Shares. 799,223 Ordinary Shares (approximately 22.25 per cent of each Shareholder's total holding of Ordinary Shares) as at the conversion date of 31 August 2020 were converted into Redeemable Ordinary Shares. 799,223 Redeemable Ordinary Shares which as shown above are presented as financial liabilities in the Group Statement of Financial
Position at 31 August 2020.

Following on from this, 799,223 Redeemable Ordinary shares were redeemed as at the redemption date 1 September 2020 at €12.50 per share. On redemption these shares were cancelled from the issued share capital of the Company with €104k being credited to the Company's Other Undenominated Capital. €9,990,000 was paid during the period in relation to the redemption of Redeemable Ordinary shares.

Following the Return of Capital, the Group currently has issued share capital of 2,895,958 with 67,168 of those shares held as treasury shares.

Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 28 February 2021

(6) Earnings per share (continued)
|
As approved by shareholders at the Extraordinary General Meeting held on 26 August 2020, the Company was authorised to redeem up to 800,000 Redeemable Ordinary Shares. 799,223 Ordinary Shares (approximately 22.25 per cent of each Shareholder's total holding of Ordinary Shares) as at the conversion date of 31 August 2020 were converted into Redeemable Ordinary Shares. 799,223 Redeemable Ordinary Shares which as shown above are presented as financial liabilities in the Group Statement of Financial
Position at 31 August 2020.

Following the Return of Capital, the Group currently has issued share capital of 2,895,958 with 67,168 of those shares held as treasury shares.

Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 28 February 2021

Following the Return of Capital, the Group currently has issued share capital of 2,895,958 with 67,168 of those shares held as treasury shares.

Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 28 February 2021

Following the Return of Capital, the Group currently has issued share capital of 2,895,958 with 67,168 of those shares held as treasury shares.

Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 28 February 2021

(6) Earnings per share (continued)
|
| | 28 February 2021 | 29 February 2020 | 31 August 2020 |
| Basic earnings/(loss) per share (euro cent)
Continuing |
82.60 |
34.34 |
51.86 |
| Discontinued | - | - | - |
| | 82.60 | 34.34 | 51.86 |
| Diluted earnings/(loss) per share (euro cent)
Continuing |
82.60 |
33.12 |
50.28 |
| Discontinued | - | - | - |
| | 82.60 | 33.12 | 50.28 |

(8) Investment property	28 February 2021	29 February 2020	31 August 2020
	€’000	€’000	€’000
Balance at start of the period	3,365	2,510	2,510
Reclassification from property, plant & equipment	289	-	285
Change in fair value	41	-	570

Balance at end of the period	3,695	2,510	3,365

		28 February 2021	29 February 2020	31 August 2020
		€’000	€’000	€’000

Redundancy and Restructuring costs	a)
-
-
(324)
Other legal costs	b)	-	-	(106)
Total exceptional costs for the period		-	-	(430)

| | | Ordinary Shares
of €0.13 each | Ordinary Shares
of €0.13 each | Redeemable Ordinary Shares
of €0.13 each | Redeemable Ordinary Shares
of €0.13 each | Deferred Shares
of €0.13 each | Deferred Shares
of €0.13 each | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Number | €’000 | Number | €’000 | Number | €’000 | €’000 |
| Authorised | | | | | | | | |
| Balance at 1 September 2020 | | 50,000,000 | 6,500 | 800,000 | 104 | 800,000 | 104 | 6,708 |
| Amendment to capital in the period | | - | - | - | - | - | - | - |
| Balance at 28 February 2021 | | 50,000,000 | 6,500 | 800,000 | 104 | 800,000 | 104 | 6,708 |
| | | | | | | | | |
| Issued, called up and fully paid | | | | | | | | |
| Balance at 1 September 2020 | | 2,895,958 | 376 | 799,223 | 9,990 | - | - | 10,366 |
| Redeemed in the period | | - | - | (799,223) | (9,990) | - | - | (9,990) |
| Balance at 28 February 2021 | | 2,895,958 | 376 | - | - | - | - | 376 |

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