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FirstFarms — Interim / Quarterly Report 2018
Aug 23, 2018
3433_rns_2018-08-23_76000226-8773-48d1-bf50-2ac79e3ff800.pdf
Interim / Quarterly Report
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FirstFarms
Company announcement no. 13/2018
23 August 2018
Interim financial report for 1 January – 30 June 2018 for FirstFarms A/S
Summary
The Board of Directors and Management of FirstFarms A/S have today reviewed and adopted the un-audited interim financial accounts for the period 1 January – 30 June 2018.
FirstFarms increases turnover and result despite low prices on animal produce
- FirstFarms has in the accounting period realised a turnover of DKK 85.3 million compared to DKK 66.4 million in the same period in 2017, an EBITDA result of DKK 24.9 million and an EBIT result of DKK 12.1 million. EBITDA and EBIT are improved with DKK 4.4 million and DKK 4.2 million, respectively compared to the same period last year.
- In the first half year, the milk price has been marginal lower than budget. A milk price is expected on the same level for second half year. The milk production has been on par with the budget in the first half year.
- The prices on grain and oil seed are in total expected to be higher than budget. The dry weather in the spring and summer has put upwards press on the prices due to an expected lower production on the world market.
- The harvest yields for the winter crops have been marginal lower than budget due to a dry spring period. Yields for the spring crops are expected on par with budget.
- The price on piglets has been low in first half year, and it has contributed negatively to the result in the pig production. The pig production efficiency has been satisfactory. Low prices are still expected in the autumn, but the prices are expected to increase at the end of the year.
- The price on slaughter pigs is also low, and only a small increase is expected in the remaining part of the year.
- The take-over in May 2018 of the pig production in Czech Republic has contributed positively to the result, including recognition of negative goodwill and the company is also expected to contribute positively in second half year.
- FirstFarms maintains the announced expectations of an EBITDA result in the level of DKK 49-53 million and an EBIT result of DKK 22-26 million.
Anders H. Nørgaard from FirstFarms A/S says: "We now see high, positive effect of our risk spreading on production lines and geography. Thus, we can withstand the effect of fluctuations in climate and price, which the agricultural production in general is challenged by."
Company announcement no. 13/2018 for FirstFarms A/S
FirstFarms A/S
Majemarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Furthermore, Anders H. Nørgaard states: "The agricultural production in Eastern Europe is in a very good development. The price of land is increasing, and the demand for pork is high. This provides basis for our future growth plans."
Best regards,
FirstFarms A/S
For further information:
Please visit our website www.firstfarms.com or contact CEO Anders H. Nørgaard on telephone +45 75 86 87 87.
About FirstFarms:
FirstFarms is a Danish stock exchange listed company, which purchases and operates agriculture in Eastern Europe. We develop the individual farms to modern and sustainable businesses that deliver milk, meat and grains of the highest quality to the dinner tables all over the world.
Company announcement no. 13/2018 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Main and key ratios
| The Group Q1+Q2 | The Group Q1+Q2 | The Group Q2 | The Group Q2 | The Group | |
|---|---|---|---|---|---|
| DKK 1,000 | 2018 | 2017 | 2018 | 2017 | 2017 |
Main figures
| Turnover | 85,317 | 66,376 | 49,903 | 33,760 | 190,666 |
|---|---|---|---|---|---|
| Gross profit/loss | 15,577 | 11,507 | 8,257 | 3,441 | 28,176 |
| Profit/loss of primary operations | 12,063 | 7,829 | 3,131 | -58 | 17,100 |
| Net financial items | -6,429 | -4,582 | -3,773 | -2,833 | -12,106 |
| Pre-tax result | 5,634 | 3,247 | -642 | -2,891 | 4,994 |
| Net profit | 5,655 | 3,310 | 433 | -2,139 | 3,359 |
| Non-current assets | 590,725 | 465,693 | 590,725 | 465,693 | 475,165 |
| --- | --- | --- | --- | --- | --- |
| Current assets | 195,214 | 167,929 | 194,895 | 167,929 | 141,426 |
| Total assets | 785,939 | 633,622 | 785,620 | 633,622 | 616,591 |
| Share capital | 55,419 | 50,071 | 55,419 | 50,071 | 51,376 |
| Equity | 337,840 | 309,537 | 337,840 | 309,537 | 315,073 |
| Non-current liabilities | 259,951 | 165,796 | 259,951 | 165,796 | 187,184 |
| Current liabilities | 187,829 | 158,289 | 187,829 | 158,289 | 114,334 |
| Cash flow from primary operations | 8,881 | 1,809 | 11,362 | -8,203 | 25,813 |
| --- | --- | --- | --- | --- | --- |
| Cash flow from operations | 1,712 | -3,605 | 2,627 | -11,067 | 12,580 |
| Cash flow for investment, net | -26,829 | -15,418 | -21,03 | -14,458 | -30,103 |
| Of which for investment in tangible assets | -10,498 | -14,458 | -4,806 | -11,460 | -45,757 |
| Cash flow from financing | 3,689 | 24,219 | 8,536 | 21,540 | 62,559 |
| Total cash flow | -21,428 | 5,196 | -9,871 | -3,985 | 45,036 |
Key figures
| Gross margin | 18.3 | 17.3 | 16.5 | 10.2 | 14.8 |
|---|---|---|---|---|---|
| Operating margin | 14.1 | 11.8 | 6.3 | -0.2 | 9.0 |
| Solvency ratio | 43 | 49 | 43 | 49 | 51 |
| Earnings per share, DKK | 1.02 | 0.70 | 0.08 | -0.45 | 0.65 |
| Diluted earnings per share, DKK | 1.02 | 0.70 | 0.08 | -0.45 | 0.65 |
| Return on shareholders' equity | 3.5 | 2.2 | 0.5 | -2.8 | 1.1 |
| Average number of employees | 271 | 236 | 275 | 256 | 257 |
| --- | --- | --- | --- | --- | --- |
EBITDA = EBIT added depreciations of the period.
Company announcement no. 13/2018 for FirstFarms A/S
FirstFarms A/S
Majmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Management report for the period 1 January – 30 June 2018
FirstFarms has in the accounting period realised a turnover of DKK 85.3 million compared to DKK 66.4 million in the same period in 2017, an EBITDA result of DKK 24.9 million and an EBIT result of DKK 12.1 million. EBITDA and EBIT are improved with DKK 4.4 million and DKK 4.2 million, respectively compared to the same period last year.
In the first half year, the equity is increased with DKK 22.8 million, in consequence of a result of DKK 5.7 million, an exchange rate adjustment of DKK -3.1 million and issuance of shares for DKK 20.2 million in connection with the takeover of Tjekkiet Invest A/S.
In the first half year, the milk price has been marginal lower than budget. A milk price is expected on the same level for second half year. The milk production has been on par with the budget in the first half year.
The prices on grain and oil seed are in total expected to be higher than budget. The dry weather in the spring and summer has put upwards press on the prices due to an expected lower production on the world market.
The harvest yields for the winter crops have been marginal lower than budget due to a dry spring period. Yields for the spring crops are expected on par with budget.
The price on piglets has been low in first half year, and it has contributed negatively to the result in the pig production. The pig production efficiency has been satisfactory. Low prices are still expected in the autumn, but the prices are expected to increase at the end of the year.
The price on slaughter pigs is also low, and only a small increase is expected in the remaining part of the year.
The take-over in May 2018 of the pig production in Czech Republic has contributed positively to the result, including recognition of negative goodwill and the company is also expected to contribute positively in second half year.
Risk assessment
FirstFarms has in the annual report for 2017 described the most essential risks for the company, and it is the management's opinion that this description is still adequate. The annual report and the risk assessment can be found on the company's website www.firstfarms.com.
Accounting policies
The interim financial report is prepared in accordance with IAS 34 "Presentation of interim financial reports" as adopted by the EU and Danish disclosure requirements for listed companies.
Accounting policies are, except for the below mentioned, unchanged compared to the consolidated financial statement and annual report for 2017, to which is referred.
Company announcement no. 13/2018 for FirstFarms A/S
FirstFarms A/S
Majemarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
FirstFarms A/S has implemented the standards and interpretations, which become effective for 2018. None of these standards have affected recognition and measurement in 2018.
The consolidated financial statement and annual report for 2017 contains the full description of accounting policies.
Company announcement no. 13/2018 for FirstFarms A/S
Page 5 of 15
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Expectations for 2018
FirstFarms maintains the announced expectations of an EBITDA result in the level of DKK 49-53 million and an EBIT result of DKK 22-26 million.
Financial calendar for 2018
27 November 2018 Interim financial report 1 January – 30 September 2018
Company announcement no. 13/2018 for FirstFarms A/S
FirstFarms A/S
Majemarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
Page 6 of 15
FirstFarms
Management statement
The Management and Board of Directors of FirstFarms have today discussed and approved the interim financial report of FirstFarms A/S for the period 1 January – 30 June 2018.
The interim financial accounts, which has not been audited or reviewed by the independent auditors of the Company, has been prepared in accordance with IAS 34 – “Interim Financial Reporting” as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies.
In our opinion the interim financial accounts give a true and fair view of the Group’s assets, liabilities and financial position at 30 June 2018 and of the results of the Group’s operations and cash flows for the period 1 January – 30 June 2018.
Further, in our opinion the Management’s review gives a true and fair overview of the development in the Group’s operations and financial matters, the results of the Group’s operations and the Group’s financial position as a whole.
Billund, 23 August 2018
Management
Anders H. Nørgaard
CEO
Board of directors
Henrik Hougaard
Chairman
Asbjørn Børsting
Jens Bolding Jensen
Bent Juul Jensen
Company announcement no. 13/2018 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Income statement
| DKK 1,000 | The Group | The Group | The Group | The Group | The Group |
|---|---|---|---|---|---|
| Q1+Q2 | Q1+Q2 | ||||
| 2018 | 2017 | Q2 2018 | Q2 2017 | 2017 | |
| Turnover | 85,317 | 66,376 | 49,903 | 33,760 | 190,666 |
| Value adjustment of biological assets | 26,108 | 3,512 | 8,257 | -1,656 | 24,505 |
| Production costs | -117,723 | -78,268 | -66,080 | -39,397 | -229,378 |
| Grants | 21,875 | 19,887 | 10,801 | 10,734 | 42,383 |
| Gross profit/loss | 15,577 | 11,507 | 2,881 | 3,441 | 28,176 |
| Other operating income | 5,324 | 2,697 | 5,263 | 10 | 1,472 |
| Administration costs | -8,838 | -6,276 | -5,020 | -3,410 | -12,333 |
| Other operating costs | 0 | -99 | 7 | -99 | -215 |
| EBIT result | 12,063 | 7,829 | 3,131 | -58 | 17,100 |
| Financial income | 73 | 184 | 39 | 110 | 629 |
| Financial costs | -6,502 | -4,766 | -3,812 | -2,943 | -12,735 |
| Pre-tax result | 5,634 | 3,247 | -642 | -2,891 | 4,994 |
| Tax on net profit | 21 | 63 | 1,075 | 752 | -1,635 |
| Net profit | 5,655 | 3,310 | 433 | -2,139 | 3,359 |
| Earnings per share, DKK | 1.02 | 0.70 | 0.08 | -0.45 | 0.65 |
| Diluted earnings per share, DKK | 1.02 | 0.70 | 0.08 | -0.45 | 0.65 |
Total income statement
| The Group | The Group | The Group | The Group | The Group | |
|---|---|---|---|---|---|
| Q1+Q2 | Q1+Q2 | Q2 | Q2 | ||
| DKK 1,000 | 2018 | 2017 | 2018 | 2017 | 2017 |
| Net profit | 5,655 | 3,310 | 433 | -2,139 | 3,359 |
| Other total income | |||||
| Items, which can be re-classified to the income statement: | |||||
| - Exchange rate adjustments by conversion of foreign units | -3,104 | 104 | -2,450 | 344 | -2,465 |
| - Tax of other total income | 0 | 0 | 0 | 0 | 0 |
| Other total income after tax | -3,104 | 104 | -2,450 | 344 | -2,465 |
| Total income | 2,551 | 3,414 | -2,017 | -1,795 | 894 |
Company announcement no. 13/2018 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Balance
| The Group | The Group | The Group | |
|---|---|---|---|
| DKK 1,000 | Q1+Q2 2018 | Q1+Q2 2017 | 2017 |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Goodwill | 16,046 | 16,011 | 16,030 |
| Land lease contracts | 1,818 | 2,967 | 2,394 |
| Total intangible assets | 17,864 | 18,978 | 18,424 |
| Tangible assets | |||
| Land and buildings | 430,778 | 314,653 | 328,961 |
| Plant and machinery | 82,494 | 71,993 | 73,422 |
| Fixtures and fittings, tools and equipment | 4,278 | 2,461 | 3,061 |
| Fixed assets under construction | 13,385 | 16,606 | 8,857 |
| Total tangible assets | 530,935 | 405,713 | 414,301 |
| Biological assets | |||
| Basic herd | 31,810 | 29,075 | 32,328 |
| Total biological assets | 31,810 | 29,075 | 32,328 |
| Other non-current assets | |||
| Deferred tax asset | 10,116 | 11,927 | 10,112 |
| Total other non-current assets | 10,116 | 11,927 | 10,112 |
| Total non-currents assets | 590,725 | 465,693 | 475,165 |
| Current assets | |||
| Inventories | 26,579 | 25,239 | 45,952 |
| Biological assets - breeding and crops | 107,815 | 98,712 | 54,930 |
| Receivables | 18,046 | 9,257 | 9,501 |
| Other receivables | 33,289 | 30,139 | 21,461 |
| Accruals and deferred expenses | 3,980 | 3,738 | 3,429 |
| Cash at bank and in hand | 5,505 | 844 | 6,153 |
| Total current assets | 195,214 | 167,929 | 141,426 |
| TOTAL ASSETS | 785,939 | 633,622 | 616,591 |
Company announcement no. 13/2018 for FirstFarms A/S
FirstFarms A/S
Majmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
| The Group | The Group | The Group | |
|---|---|---|---|
| DKK 1,000 | Q1+Q2 2018 | Q1+Q2 2017 | 2017 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 55,419 | 50,071 | 51,376 |
| Reserve for exchange rate adjustment | -28,617 | -22,944 | -25,513 |
| Transferred result | 311,038 | 282,410 | 289,210 |
| Proposed dividend | 0 | 0 | 0 |
| Total equity | 337,840 | 309,537 | 315,073 |
| Liabilities | |||
| Non-current liabilities | |||
| Deferred tax | 16,393 | 9,281 | 8,652 |
| Credit institutions | 112,998 | 75,391 | 67,868 |
| Convertible bonds | 130,879 | 72,253 | 110,664 |
| Other non-current debt | 0 | 8,871 | 0 |
| Total non-current assets | 260,270 | 165,796 | 187,184 |
| Current liabilities | |||
| Credit institutions | 87,217 | 89,492 | 43,489 |
| Convertible bonds | 27,165 | 0 | 27,165 |
| Trade payables and other payables | 62,253 | 56,666 | 31,224 |
| Corporation tax | 0 | 0 | 740 |
| Accruals and deferred income | 11,194 | 12,131 | 11,716 |
| Total current liabilities | 187,829 | 158,289 | 114,334 |
| Total liabilities | 448,099 | 324,085 | 301,518 |
| TOTAL EQUITY AND LIABILITIES | 785,939 | 633,622 | 616,591 |
Company announcement no. 13/2018 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Equity statement (Condensed)
| DKK 1,000 | The Group | The Group |
|---|---|---|
| Q1+Q2 2018 | Q1+Q2 2017 | |
| EQUITY STATEMENT | ||
| Equity 1 January | 315,073 | 292,823 |
| Result of the period | 5,655 | 3,310 |
| Other total income | -3,104 | 104 |
| Issuance of shares | 20,216 | 13,300 |
| Total income for the period | 22,767 | 16,714 |
| Equity 30 June | 337,840 | 309,537 |
Cash flow statement
| DKK 1,000 | The Group | The Group |
|---|---|---|
| Q1+Q2 2018 | Q1+Q2 2017 | |
| Pre-tax result | 5,634 | 3,247 |
| Cash generated from operations (operating activities) before changes in working capital | 20,112 | 14,066 |
| Cash flow from primary activities | 8,881 | 1,809 |
| Cash flow from operating activities | 1,712 | -3,605 |
| Cash flow from investing activities | -26,829 | -15,418 |
| - Hereof purchase of Tjekkiet Invest 1) | -17,539 | 0 |
| Cash flow from financing activities | 3,689 | 24,219 |
| Total cash flow | -21,428 | 5,196 |
| Available, at the beginning | -2,479 | -48,227 |
| Exchange rate adjustment of available | 4 | 10 |
| Available at closing | -23,903 | -43,021 |
| Available at closing is recognised as follows: | ||
| Available funds | 5,505 | 844 |
| Current bank debt | -29,408 | -43,865 |
| Available at closing | -23,903 | -43,021 |
1) In connection with the purchase of Tjekkiet Invest A/S, only a net of DKK 17.5 million was paid in first half year, as the remaining DKK 2.5 million is paid later on. There has also been issued convertible bonds for DKK 19.9 million and issued share for DKK 20.2 million.
Company announcement no. 13/2018 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Segment information
| Q1+Q2 2018
DKK 1,000 | Romanian activities | Slovakian activities | Hungarian activities | Czech activities | Total report compulsory segments |
| --- | --- | --- | --- | --- | --- |
| Total segment turnover | 12,887 | 44,285 | 21,331 | 6,814 | 85,317 |
| Grants | 7,493 | 11,987 | 2,244 | 151 | 21,875 |
| Value adjustment of biological assets | 0 | 7,547 | 17,346 | 1,215 | 26,108 |
| Financial income | 54 | 0 | 16 | 3 | 73 |
| Financial costs | -1,012 | -2,191 | -874 | -131 | -4,208 |
| Depreciations | 3,403 | 7,248 | 1,812 | 383 | 12,846 |
| Segment result before tax | -618 | 5,802 | 1,591 | 5,905 | 12,680 |
| Segment assets | 219,105 | 336,742 | 88,503 | 140,131 | 784,481 |
| Plant investments *) | 14,428 | 8,620 | 2,280 | 0 | 25,328 |
| Segment liabilities | 175,357 | 221,268 | 72,886 | 74,533 | 544,044 |
*) Plant investments are investments in machinery, land and buildings.
The result for Czech Republic covers only June, and negative goodwill of DKK 4.9 million is recognised from the opening balance.
| Q1+Q2 2017
DKK 1,000 | Romanian activities | Slovakian activities | Hungarian activities | Total report compulsory segments |
| --- | --- | --- | --- | --- |
| Total segment turnover | 6,261 | 47,445 | 12,670 | 66,376 |
| Grants | 7,318 | 11,528 | 1,041 | 19,887 |
| Value adjustment of biological assets | 3,600 | -54 | -34 | 3,512 |
| Financial income | 169 | 0 | 83 | 252 |
| Financial costs | -1,351 | -2,325 | -549 | -4,225 |
| Depreciations | 3,602 | 8,308 | 740 | 12,650 |
| Segment result before tax | 2,339 | 527 | 4,434 | 7,300 |
| Segment assets | 209,752 | 341,969 | 81,570 | 633,291 |
| Plant investments *) | 6,584 | 5,369 | 5,503 | 17,456 |
| Segment liabilities | 165,918 | 230,524 | 67,182 | 463,624 |
*) Plant investments are investments in machinery, land and buildings.
The result for Hungary covers only Q2, and revenue of DKK 2.6 million is recognised from the opening balance.
Fair value of biological assets enters level 3 in the fair value hierarchy, and we refer to note 5 in the annual account for 2017 for description of method used for statement of the fair value.
Company announcement no. 13/2018 for FirstFarms A/S
Page 12 of 15
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Reconciliation of report compulsory segments result
| DKK 1,000 | Q1+Q2 | Q1+Q2 |
|---|---|---|
| 2018 | 2017 | |
| Segment result before tax for report compulsory segments | 12,680 | 7,300 |
| Non-allocated result, Group function | -7,046 | -4,053 |
| Result of continued operations before tax, cp. income statement | 5,634 | 3,247 |
Turnover
| DKK 1,000 | Q1+Q2 | Q1+Q2 |
|---|---|---|
| 2018 | 2017 | |
| Sale of milk | 30,180 | 28,511 |
| Sale of cows and calves | 4,284 | 2,809 |
| Sales of piglets and slaughter pigs | 25,241 | 10,586 |
| Sale of corn etc. | 21,418 | 22,134 |
| Other turnover | 4,194 | 2,336 |
| Total | 85,317 | 66,376 |
Company announcement no. 13/2018 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Purchase of subsidiary
FirstFarms has on 28 May 2018 purchased Tjekkiet Invest A/S, which through a subsidiary produces slaughter pigs in Czech Republic. FirstFarms hereby adds, to the production of piglets in Hungary, production of slaughter pigs in Czech Republic by purchasing an implemented production facility.
The shares in Tjekkiet Invest A/S were partly paid with share in FirstFarms, partly by issuance of convertible bonds and partly by cash payment. The purchase price was agreed to DKK 60 million based on the price of FirstFarms' share in March 2018, when the agreement was entered.
The price of FirstFarms' share increased up to closing in May 2018, and the total purchase price can then be calculated to DKK 60.284 million with the share price of 50.00 at the closing day. The issued shares represent 7.9% of the existing shares before the issuance.
Hence, the purchase price can be specified as follows (DKK 1,000):
404,328 shares at price 50 20,216
Convertible bonds of nominal 19,896 at price 101.6 20,215
Cash payment 20,172
Total 60,603
The allocation of the purchase price of the net assets is shown in the table below:
| DKK 1,000 | Recognised value at take-over date |
|---|---|
| Tangible assets | 115,298 |
| Biological assets | 12,364 |
| Inventories | 4,254 |
| Receivables | 7,650 |
| Cash at bank and in hand | 133 |
| Credit institutions | -55,679 |
| Deferred tax | -7,739 |
| Trade payables | -7,331 |
| Other payables | -3,433 |
| Net assets taken over | 65,517 |
| Total acquisition price | 60,603 |
| Negative goodwill - recognised in other operating income | 4,914 |
By selling the company to FirstFarms A/S, taking over shares and subscribing for convertible bonds in FirstFarms A/S, the shareholders in Tjekkiet Invest A/S get opportunity to sell their shares.
In connection with due diligence or later, there has not been identified need for provision to other conditions, including environmental obligations, which indicates that the negative goodwill can be assigned to unrecognised contingent liabilities.
The allocation of the purchase price is preliminary.
Recognised transaction costs of DKK 0.6 million are incurred in connection with the transaction.
The liquidity effect of the purchase in Q2 2018 entails the following (DKK 1,000):
Cash payment 20,172
Hereof for settlement after 30 June 2018 2,500
Taken over liquidities 133
Liquidity effect 17,539
Company announcement no. 13/2018 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Result before tax for Tjekkiet Invest for the recognised period is DKK 1.0 million excluding recognition of negative goodwill. If all first half year of 2018 had been recognised, the result before tax for Tjekkiet Invest would be DKK -1.8 million.
The turnover for the recognised period is DKK 6.8 million. If all first half year of 2018 had been recognised, the turnover would be DKK 34.8 million.
Company announcement no. 13/2018 for FirstFarms A/S
Page 15 of 15
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund