Anpario plc (AIM: ANP)
Anpario plc, the international producer and distributor of natural feed additives for animal health, hygiene and nutrition is pleased to announce its interim results for the six months to 30 June 2015.
Financial and operational highlights1
Financial highlights
- 11% rise in adjusted EBITDA2 to £1.9m (2014: £1.7m)
- 9% improvement in gross profit to £5.0m (2014: £4.6m)
- 8% increase in profit before tax from continuing operations to £1.6m (2014: £1.5m)
- 5% increase in underlying earnings per share from continuing operations3 to 7.53p (2014: 7.14p)
- Cash balances of £7.9m at 30 June 2015 (31 Dec 2014: £6.6m)
Operational highlights
- Strong profit growth in the Americas and Asia Pacific of 17% and 11% respectively
- UK division continues to develop strongly with 27% growth in gross profit
- China subsidiary progresses with 31% growth in sales
- Brazilian subsidiary secures ownership of product registrations and import licence
- Group focused on higher margin additive products following sale of Organic feed division
Richard S Rose, Chairman, commented:
“The second half has started well and we are confident of maintaining the momentum of the first six months’ performance. Our strong balance sheet, backed by the cash generative nature of the business leaves Anpario well positioned to finance further organic growth and also able to consider selective investments or earnings enhancing acquisitions as they arise.”
Chairman’s Statement
Anpario has delivered a good performance for the six months to 30 June 2015 with further profit growth.
The Group is a leading international supplier of nutritional and biosecurity led natural products to food producers worldwide, offering a comprehensive solution to their problems. The global agricultural markets offer exciting prospects for growth: demand for meat protein is expanding worldwide and food producers are under increasing pressure to ensure production is aligned with best practice to maximise performance and minimise disease risk.
Anpario’s strategy of establishing subsidiaries in its key sales regions continues to deliver value with strong organic growth in China, the UK and the US. The Group is now focused on the manufacture and sale of higher margin feed additive products having disposed of its UK Organic feed business.
Financial Review
Profit before tax from continuing operations increased by 8% to £1.6m (2014: £1.5m). Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 11% to £1.9m (2014: £1.7m). During the period there has been a 4% reduction in revenue as the business continues to focus on selling specialist feed additives into growth markets. This strategy, coupled with the positive effect of operational gearing has resulted in a gross profit improvement of 9% to £5.0 m (2014: £4.6m) with gross margin advancing by over five percentage points to 44.7% (2014: 39.3%).
In March 2015 the group disposed of its interest in the manufacture of Organic feed in the UK. The potential maximum cash consideration of £0.75m includes £0.25m deferred consideration relating to a performance linked earnout. Based on management’s latest forecast of the expected earnout, £0.13m has been recognised in the accounts for the six months to 30 June 2015.
Basic earnings per share from continuing operations increased by 7% to 7.53p (2014: 7.02p). Underlying earnings per share increased by 5% in the period.
The balance sheet remains strong and debt free and at the period end the cash balance had reached £7.9m (30 June 2014: £5.7m). The Group has maintained its policy of capital investment to enhance efficiency with £0.5m spent in the period principally in plant improvement, product development and protection of global brand and product trademarks.
Operations – International Agriculture
The division continued its positive progress in its key regions of Asia Pacific and Latin America generating profit growth of 11% and 17% respectively in the first six months compared with the equivalent period last year. Within Latin America, sales to customers in Argentina, Bolivia, Chile, Colombia, and Costa Rica each delivered double-digit growth. There was a similar positive performance in Asia with sales in Bangladesh, India, Indonesia and the Philippines advancing strongly.
The Philippines achieved a 48% increase in volume in the first half of the year and demonstrates the increases in volumes which can be generated by working alongside partners to directly access end users. A great deal has been learned from this specific initiative, which will now be applied selectively in other countries during the second half of the year, focusing on specific product groups to drive further advances in sales and profit.
The objective over recent years has been to progressively rebalance sales away from higher volume, low margin commodity type products to focus on the added value, higher margin opportunities. This performance mirrors a similar trend in the UK which delivered a strong 27% increase in gross profit in the half year from a 3% reduction in volume and 5% increase in revenue.
Anpario’s toxin binder category provides a clear example of the effect of this rebalancing strategy where the flagship brands, Neutox and Ultrabond, increased volume by 21% and 36% respectively, whilst the non-branded products reduced volume by 69%. The net result for the category was a reduction of 13% in volume and 3% in revenue but an impressive 16% increase in gross profit.
The ongoing political challenges in parts of the Middle East and Africa limited progress in Egypt, Iran and Nigeria in particular. Within Europe, the import ban implemented by the Russian government has affected sales to that country and also to some of its neighbours. The Group continues its prudent approach limiting its financial exposure in high risk countries, including Greece. The geographical diversity of the Group continues to demonstrate its value and there are early signs of improvement in some of these troubled territories which the Group is well placed to capitalise on.
In the US, our initial focus has been on the swine and poultry segments where we have made sales. Our technology has been well received by a number of key agricultural groups whom we are working closely with to demonstrate the performance and health benefits of our products. The removal of antibiotics from meat production in the US continues to be high on the agenda of many producers, especially in the poultry segment. In addition to launching Orego-Stim in the US and our key acidifier range, we have recently decided to launch Credence, our tablet disinfectant, which sanitises the drinking lines in poultry houses and water troughs for livestock and can also be used as a surface disinfectant. It is these features which have particularly interested US customers, who are looking for a package of measures to help them reduce the use of antibiotics and keep animals healthy for improved performance.
Our US subsidiary has also begun to target the ruminant sector, offering products which have performed well in the dairy segment in the UK and Ireland. Initial feedback from customers is encouraging and a number are testing the efficacy of these products.
Operations – UK Agriculture
The division has maintained its momentum in the first six months of the year and delivered strong double-digit growth in gross profit through its focus on the value added product groups within the portfolio. This success has been driven by the implementation of the life stage management initiative of our acidifier and phytogenic range in swine and poultry along with good progress in the ruminant sector with Ultrabond, our mycotoxin binder. These performance improvements enable farmers to maximise the price paid for milk, which is particularly pertinent in current market conditions.
The aim is to replicate this success throughout Continental Europe where there is an opportunity to access end users more easily and this has resulted in the consolidation of responsibilities for Europe and the UK as a single reporting division. This will enable greater resources to be applied to utilise the experience gained in the UK throughout Europe.
The divestment of the Organic animal feed division, Vitrition, in March has removed the effect on Anpario of the volatility inherent in that market and enabled the UK Agriculture division to focus on the strength of its specialty feed additive portfolio.
Innovation and development
A key platform for growth, as outlined in the strategic review in the 2014 annual report, is to combine science and marketing to add value to our offering and to differentiate Anpario from its competitors. Our research effort has been an important element in this process as is the need for greater specialisation in our key product areas. During the first half of the year, the Group has taken steps to realign the structure of the International Division on a species rather than product basis. The increased expertise in these areas is already providing a consistent solution that is focused on the needs of our customers and distributors. The improvement in the calibre of support available to the Group has already been successfully deployed in our subsidiaries in the US and China, with Brazil to follow later in the year. The Chinese subsidiary has successfully weathered the recent pricing volatility within the swine sector with an impressive 31% growth in local revenue in the first half of the year. Advancements into the poultry and feed mill sectors have started to contribute positively and look promising areas for growth.
The Group has prioritised its research effort by working closely with customers and leading universities to demonstrate the quality and value of its product portfolio in enhancing the health and performance of livestock. The flagship product groups of acidifiers and phytogenics are uniquely positioned as they offer a complete solution for all life stages of the animal, from birth to breeding, yet provide specific products that have been formulated with each life stage in mind, enabling the individual requirements of each consumer to be met, maximising their returns.
Our products have demonstrated an improvement of both primary and secondary antibody responses to specific challenges, a significant finding in disease management that is currently being evaluated further. The implication of improving the immunity of animals to disease not only supports the improvement in performance of animals consuming our products but would also facilitate the opportunity to reduce the use of medications such as antibiotics in animal feed when our products are included.
Outlook
The second half has started well and we are confident of maintaining the momentum of the first six months’ performance. Our strong balance sheet, backed by the cash generative nature of the business, leaves Anpario well positioned to finance further organic growth and also able to consider selective investments or earnings enhancing acquisitions as they arise.
Richard S Rose
Chairman
16 September 2015
1All prior-year values have been restated to reflect the disposal of the Organic division as discontinued operations.
2Adjusted EBITDA represents operating profit £1.58m (2014: £1.48m) adjusted for: share based payments £0.14m (2014: £0.07m); depreciation, amortisation and impairment charges of £0.19m (2014: £0.17m).
3Underlying earnings per share from continuing operations represents profit from continuing operations for the period before unwinding of discount on contingent consideration divided by the weighted average number of shares in issue.
| Unaudited consolidated income statement | |||||||||
| for the six months ended 30 June 2015 | |||||||||
| restated1 | restated1 | ||||||||
| six months to | six months to | year ended | |||||||
| 6/30/2015 | 6/30/2014 | 12/31/2014 | |||||||
| Notes | £000 | £000 | £000 | ||||||
| Continuing operations | |||||||||
| Revenue | 3 | 11,143 | 11,609 | 23,449 | |||||
| Cost of sales | (6,164) | (7,052) | (13,953) | ||||||
| Gross profit | 4,979 | 4,557 | 9,496 | ||||||
| Administrative expenses | (3,396) | (3,078) | (6,447) | ||||||
| Operating profit | 1,583 | 1,479 | 3,049 | ||||||
| Finance income | 27 | 27 | 48 | ||||||
| Finance cost of contingent consideration | – | (21) | (21) | ||||||
| Profit before income tax | 1,610 | 1,485 | 3,076 | ||||||
| Income tax expense | (151) | (195) | (107) | ||||||
| Profit for the period from continuing operations | 1,459 | 1,290 | 2,969 | ||||||
| Discontinued operations | |||||||||
| Profit for the period from discontinued operations | |||||||||
| (attributable to owners of the parent) | 8 | 368 | 84 | 191 | |||||
| Profit for the period | 1,827 | 1,374 | 3,160 | ||||||
| Profit attributable to: | |||||||||
| Owners of the parent | 1,827 | 1,374 | 3,160 | ||||||
| Profit for the period | 1,827 | 1,374 | 3,160 | ||||||
| Basic earnings per share from continuing operations | 4 | 7.53p | 7.02p | 16.14p | |||||
| Diluted earnings per share from continuing operations | 4 | 7.31p | 6.37p | 14.76p | |||||
| Basic earnings per share | 4 | 9.43p | 7.48p | 17.18p | |||||
| Diluted earnings per share | 4 | 9.16p | 6.78p | 15.71p | |||||
| Unaudited consolidated statement of comprehensive income | |||||||||
| for the six months ended 30 June 2015 | |||||||||
| restated1 | restated1 | ||||||||
| six months to | six months to | year ended | |||||||
| 6/30/2015 | 6/30/2014 | 12/31/2014 | |||||||
| £000 | £000 | £000 | |||||||
| Profit for the period | 1,827 | 1,374 | 3,160 | ||||||
| Items that may be subsequently reclassified to profit or loss: | |||||||||
| Exchange difference on translating foreign operations | (39) | (1) | (42) | ||||||
| Total comprehensive income for the period | 1,788 | 1,373 | 3,118 | ||||||
| Attributable to the owners of the parent: | 1,788 | 1,373 | 3,118 | ||||||
| Total comprehensive income attributable to equity | |||||||||
| shareholders arises from: | |||||||||
| – Continuing operations | 1,420 | 1,289 | 2,927 | ||||||
| – Discontinued operations | 368 | 84 | 191 | ||||||
| Total comprehensive income for the period | 1,788 | 1,373 | 3,118 | ||||||
| 1 Prior Year comparatives have been restated following the disposal of a discontinued operation as disclosed in note 8. | |||||||||
| Unaudited consolidated balance sheet | |||||||||
| as at 30 June 2015 | |||||||||
| as at | as at | as at | |||||||
| 6/30/2015 | 6/30/2014 | 12/31/2014 | |||||||
| Notes | £000 | £000 | £000 | ||||||
| Intangible assets | 5 | 10,014 | 9,386 | 9,826 | |||||
| Property, plant and equipment | 6 | 3,083 | 3,196 | 3,018 | |||||
| Deferred tax assets | 179 | 204 | 179 | ||||||
| Non-current assets | 13,276 | 12,786 | 13,023 | ||||||
| Inventories | 1,646 | 1,585 | 1,711 | ||||||
| Trade and other receivables | 6,975 | 7,286 | 7,699 | ||||||
| Cash and cash equivalents | 7,938 | 5,698 | 6,631 | ||||||
| Current assets | 16,559 | 14,569 | 16,041 | ||||||
| Total assets | 29,835 | 27,355 | 29,064 | ||||||
| Called up share capital | 7 | 5,040 | 4,592 | 4,622 | |||||
| Share premium | 7 | 7,528 | 3,973 | 4,051 | |||||
| Other reserves | (3,807) | (348) | (389) | ||||||
| Retained earnings | 16,289 | 13,353 | 14,462 | ||||||
| Total equity | 25,050 | 21,570 | 22,746 | ||||||
| Deferred tax liabilities | 1,044 | 990 | 1,044 | ||||||
| Non-current liabilities | 1,044 | 990 | 1,044 | ||||||
| Trade and other payables | 3,474 | 4,358 | 5,129 | ||||||
| Current income tax liabilities | 267 | 437 | 145 | ||||||
| Current liabilities | 3,741 | 4,795 | 5,274 | ||||||
| Total liabilities | 4,785 | 5,785 | 6,318 | ||||||
| Total equity and liabilities | 29,835 | 27,355 | 29,064 | ||||||
| Unaudited consolidated statement of changes in equity | |||||||||||
| for the six months ended 30 June 2015 | |||||||||||
| Called up share capital | Share premium | Other reserves | Retained earnings | Total equity | |||||||
| £000 | £000 | £000 | £000 | £000 | |||||||
| Balance at 1 January 2014 | 4,573 | 3,922 | (345) | 11,979 | 20,129 | ||||||
| Profit for the period | – | – | – | 1,374 | 1,374 | ||||||
| Currency translation differences | – | – | (1) | – | (1) | ||||||
| Total comprehensive income for the period | – | – | (1) | 1,374 | 1,373 | ||||||
| Issue of share capital | 19 | 51 | – | – | 70 | ||||||
| Share-based payment adjustments | – | – | (2) | – | (2) | ||||||
| Transactions with owners | 19 | 51 | (2) | – | 68 | ||||||
| Balance at 30 June 2014 | 4,592 | 3,973 | (348) | 13,353 | 21,570 | ||||||
| Profit for the period | – | – | – | 1,786 | 1,786 | ||||||
| Currency translation differences | – | – | (41) | – | (41) | ||||||
| Total comprehensive income for the period | – | – | (41) | 1,786 | 1,745 | ||||||
| Issue of share capital | 30 | 78 | – | – | 108 | ||||||
| Purchase of treasury shares | – | – | (116) | – | (116) | ||||||
| Share-based payment adjustments | – | – | 116 | – | 116 | ||||||
| Dividends relating to 2013 | – | – | – | (677) | (677) | ||||||
| Transactions with owners | 30 | 78 | – | (677) | (569) | ||||||
| Balance at 31 December 2014 | 4,622 | 4,051 | (389) | 14,462 | 22,746 | ||||||
| Profit for the period | – | – | – | 1,827 | 1,827 | ||||||
| Currency translation differences | – | – | (39) | – | (39) | ||||||
| Total comprehensive income for the period | – | – | (39) | 1,827 | 1,788 | ||||||
| Issue of share capital | 418 | 3,477 | – | – | 3,895 | ||||||
| Joint-share ownership plan | – | – | (3,415) | – | (3,415) | ||||||
| Share-based payment adjustments | – | – | 36 | – | 36 | ||||||
| Transactions with owners | 418 | 3,477 | (3,379) | – | 516 | ||||||
| Balance at 30 June 2015 | 5,040 | 7,528 | (3,807) | 16,289 | 25,050 | ||||||
| Unaudited consolidated statements of cash flows | |||||||
| for the six months ended 30 June 2015 | |||||||
| six months to | six months to | year ended | |||||
| 6/30/2015 | 6/30/2014 | 12/31/2014 | |||||
| £000 | £000 | £000 | |||||
| Cash generated from operating activities | 1,074 | 1,338 | 3,500 | ||||
| Income tax paid | (123) | (91) | (253) | ||||
| Net cash generated from operating activities | 951 | 1,247 | 3,247 | ||||
| Purchases of property, plant and equipment | (198) | (271) | (289) | ||||
| Proceeds from disposal of property, plant and equipment | – | 19 | 34 | ||||
| Net proceeds from disposal of discontinued operations | 344 | – | – | ||||
| Payments to acquire intangible assets | (275) | (158) | (574) | ||||
| Interest received | 27 | 27 | 48 | ||||
| Net cash used in investing activities | (102) | (383) | (781) | ||||
| Purchase of treasury shares | – | – | (116) | ||||
| Acquisition of shares by JSOP | (3,415) | – | – | ||||
| Proceeds from issuance of shares | 3,895 | 70 | 178 | ||||
| Dividend paid to Company’s shareholders | – | – | (677) | ||||
| Net cash used in financing activities | 480 | 70 | (615) | ||||
| Net increase in cash and cash equivalents | 1,329 | 934 | 1,851 | ||||
| Effect of exchange rate changes | (22) | (15) | 1 | ||||
| Cash and cash equivalents at the beginning of the period | 6,631 | 4,779 | 4,779 | ||||
| Cash and cash equivalents at the end of the period | 7,938 | 5,698 | 6,631 | ||||
| restated1 | restated1 | ||||||
| six months to | six months to | year ended | |||||
| 6/30/2015 | 6/30/2014 | 12/31/2014 | |||||
| Cash generated from operating activities | £000 | £000 | £000 | ||||
| Profit before income tax including discontinued operations | 1,623 | 1,592 | 3,319 | ||||
| Net finance cost | (27) | (6) | (27) | ||||
| Depreciation, amortisation and impairment | 195 | 186 | 357 | ||||
| Profit on disposal of property, plant and equipment | – | – | (16) | ||||
| Share-based payments | 36 | (2) | 114 | ||||
| Fair value of contingent consideration | 130 | – | – | ||||
| Changes in working capital: | |||||||
| Inventories | 60 | 214 | 129 | ||||
| Trade and other receivables | 673 | (321) | (755) | ||||
| Trade and other payables | (1,616) | (325) | 379 | ||||
| Net cash generated from operating activities | 1,074 | 1,338 | 3,500 |
| 1. General information | |
| Anpario plc (“the Company”) and its subsidiaries (together “the Group”) manufacture and supply high performance natural feed additives for the agricultural market with products to improve the health and output of animals. | |
| The Company is traded on the London Stock Exchange Aim market and is incorporated and domiciled in the UK. The address of the registered office is Manton Wood Enterprise Park, Worksop, Nottinghamshire, S80 2RS. | |
| 2. Basis of preparation | |
|
The consolidated financial statements comprise the accounts of the Company and its subsidiaries drawn up to 30 June 2015. The consolidated financial statements have been prepared on the basis of the accounting policies set out in the Group’s financial statements for the year ended 31 December 2014, which are available on the Company’s web site at www.anpario.com. This condensed consolidated interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2014 were approved by the Board of Directors on 4 March 2015 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 (2) or (3) of the Companies Act 2006. The consolidated interim financial information for the period ended 30 June 2015 is neither audited nor reviewed. |
|
| 3. Segment information | |||||||
| UK and Eire | International | Total | |||||
| £000 | £000 | £000 | |||||
| for the six months ended 30 June 2015 | |||||||
| Total segmental revenue | 2,051 | 9,798 | 11,849 | ||||
| Inter-segment revenue | (199) | (507) | (706) | ||||
| Revenue from external customers | 1,852 | 9,291 | 11,143 | ||||
| Adjusted EBITDA | 399 | 1,514 | 1,913 | ||||
| Depreciation, amortisation and impairment charges | (2) | (193) | (195) | ||||
| Income tax expense | (29) | (122) | (151) | ||||
| Total assets | 8,424 | 23,120 | 29,835 | ||||
| Total liabilities | (1,317) | (4,001) | (4,785) | ||||
| for the six months ended 30 June 2014 (restated) | |||||||
| Total segmental revenue | 1,582 | 10,451 | 12,033 | ||||
| Inter-segment revenue | – | (424) | (424) | ||||
| Revenue from external customers | 1,582 | 10,027 | 11,609 | ||||
| Adjusted EBITDA | 129 | 1,599 | 1,728 | ||||
| Depreciation, amortisation and impairment charges | (22) | (159) | (181) | ||||
| Income tax expense | (19) | (176) | (195) | ||||
| Total assets | 7,857 | 19,498 | 27,355 | ||||
| Total liabilities | (1,429) | (4,356) | (5,785) | ||||
| Year ended 31 December 2014 (restated) | |||||||
| Total segmental revenue | 3,733 | 21,155 | 24,888 | ||||
| Inter-segment revenue | (281) | (1,158) | (1,439) | ||||
| Revenue from external customers | 3,452 | 19,997 | 23,449 | ||||
| Adjusted EBITDA | 276 | 3,324 | 3,600 | ||||
| Depreciation, amortisation and impairment charges | (46) | (303) | (349) | ||||
| Income tax credit/(expense) | 59 | (166) | (107) | ||||
| Total assets | 7,907 | 21,157 | 27,355 | ||||
| Total liabilities | (1,526) | (4,792) | (5,785) | ||||
| A reconciliation of adjusted EBITDA to profit before income tax is provided as follows: | |||||||
| restated1 | restated1 | ||||||
| six months to | six months to | year ended | |||||
| 6/30/2015 | 6/30/2014 | 12/31/2014 | |||||
| £000 | £000 | £000 | |||||
| Adjusted EBITDA for reportable segments | 1,913 | 1,728 | 3,600 | ||||
| Depreciation, amortisation and impairment charges | (195) | (181) | (349) | ||||
| Share-based payment charges | (135) | (68) | (202) | ||||
| Finance income | 27 | 27 | 48 | ||||
| Finance cost of contingent consideration | – | (21) | (21) | ||||
| Profit before income tax from continued operations | 1,610 | 1,485 | 3,076 | ||||
| 4. Earnings per share | |||||||
| six months to | six months to | year ended | |||||
| 6/30/2015 | 6/30/2014 | 12/31/2014 | |||||
| Weighted average number of shares in Issue (000’s) | 19,366 | 18,370 | 18,393 | ||||
| Adjusted for effects of dilutive potential Ordinary shares (000’s) | 585 | 1,881 | 1,717 | ||||
| Weighted average number for diluted earnings per share (000’s) | 19,951 | 20,251 | 20,110 | ||||
| Profit attributable to owners of the Parent from continuing operations (£000’s) | 1,459 | 1,290 | 2,969 | ||||
| Result of discontinued operations | 368 | 84 | 191 | ||||
| Profit attributable to owners of the Parent (£000’s) | 1,827 | 1,374 | 3,160 | ||||
| Basic earnings per share from continuing operations | 7.53p | 7.02p | 16.14p | ||||
| Diluted earnings per share from continuing operations | 7.31p | 6.37p | 14.76p | ||||
| Basic earnings per share | 9.43p | 7.48p | 17.18p | ||||
| Diluted earnings per share | 9.16p | 6.78p | 15.71p | ||||
| six months to | six months to | year ended | |||||
| 6/30/2015 | 6/30/2014 | 12/31/2014 | |||||
| £000 | £000 | £000 | |||||
| Underlying profit attributable to owners of the Parent | |||||||
| Profit attributable to owners of the Parent | 1,459 | 1,290 | 2,969 | ||||
| Unwinding of discount on contingent consideration | – | 21 | 21 | ||||
| Prior year tax adjustments | – | – | (318) | ||||
| Underlying profit from continuing operations | 1,459 | 1,311 | 2,672 | ||||
| Result of discontinued operations | 368 | 84 | 191 | ||||
| Underlying profit attributable to owners of the Parent | 1,827 | 1,395 | 2,863 | ||||
| Underlying earnings per share from continuing operations | 7.53p | 7.14p | 14.53p | ||||
| Diluted underlying earnings per share from continuing operations | 7.31p | 6.47p | 13.29p | ||||
| Underlying earnings per share | 9.43p | 7.59p | 15.57p | ||||
| Diluted underlying earnings per share | 9.16p | 6.89p | 14.24p |
| 5. Intangible assets | |||||||||||||
| Group | Goodwill | Brands | Customer relationships |
Patents, trademarks and registrations |
Development costs |
Total | |||||||
| £000 | £000 | £000 | £000 | £000 | £000 | ||||||||
| Cost | |||||||||||||
| As at 1 January 2015 | 5,490 | 2,210 | 686 | 423 | 2,392 | 11,201 | |||||||
| Additions | – | – | – | 26 | 249 | 275 | |||||||
| As at 30 June 2015 | 5,490 | 2,210 | 686 | 449 | 2,641 | 11,476 | |||||||
| Accumulated amortisation/impairment | |||||||||||||
| As at 1 January 2015 | – | 98 | 228 | 72 | 977 | 1,375 | |||||||
| Charge for the period | – | 18 | 34 | 26 | 9 | 87 | |||||||
| As at 30 June 2015 | – | 116 | 262 | 98 | 986 | 1,462 | |||||||
| Net book value | |||||||||||||
| As at 30 June 2015 | 5,490 | 2,094 | 424 | 351 | 1,655 | 10,014 | |||||||
| As at 1 January 2015 | 5,490 | 2,112 | 458 | 351 | 1,415 | 9,826 | |||||||
| 6. Property, plant and equipment | |||||||||
| Group | Land and buildings |
Plant and machinery |
Fixtures, fittings and equipment |
Total | |||||
| £000 | £000 | £000 | £000 | ||||||
| Cost | |||||||||
| As at 1 January 2015 | 2,171 | 1,126 | 496 | 3,793 | |||||
| Additions | – | 188 | 10 | 198 | |||||
| Disposals | – | (44) | – | (44) | |||||
| As at 30 June 2015 | 2,171 | 1,270 | 506 | 3,947 | |||||
| Accumulated depreciation | |||||||||
| As at 1 January 2015 | 214 | 358 | 203 | 775 | |||||
| Charge for the period | 15 | 58 | 35 | 108 | |||||
| Disposals | – | (19) | – | (19) | |||||
| As at 30 June 2015 | 229 | 397 | 238 | 864 | |||||
| Net book value | |||||||||
| As at 30 June 2015 | 1,942 | 873 | 268 | 3,083 | |||||
| As at 1 January 2015 | 1,957 | 768 | 293 | 3,018 |
| 7. Share Capital | |||||||||
| Number of shares |
Share capital |
Share premium |
Total | ||||||
| (thousands) | £000 | £000 | £000 | ||||||
| Balance at 1 January 2014 | 19,881 | 4,573 | 3,922 | 8,495 | |||||
| Share options exercised | 83 | 19 | 51 | 70 | |||||
| Balance at 30 June 2014 | 19,964 | 4,592 | 3,973 | 8,565 | |||||
| Share options exercised | 130 | 30 | 78 | 108 | |||||
| Balance at 31 December 2014 | 20,094 | 4,622 | 4,051 | 8,673 | |||||
| New JSOP | 1,177 | 271 | 3,143 | 3,414 | |||||
| Share options exercised | 643 | 147 | 334 | 481 | |||||
| Balance at 30 June 2015 | 21,914 | 5,040 | 7,528 | 12,568 | |||||
| On 9 March 2015, a total of 1,176,718 new Ordinary Shares were allotted. The Ordinary Shares have been issued at a subscription price of 290p per Ordinary Share, being the closing price of an Ordinary Shares on 6 March 2015, pursuant to The Anpario plc Employees’ JSOP (the “Plan”). | |||||||||
| The Ordinary Shares have been issued into the respective joint beneficial ownership of (i) each of the participating executive Directors and (ii) the trustee of the Trust upon and subject to the terms of joint ownership agreements (“JOAs”) respectively entered into between the Director concerned, the Company and the Trustee. The subscription price has been paid by the Trust out of funds advanced to it by the Company. | |||||||||
| The terms of the JOAs provide, inter alia, that if jointly owned shares become vested and are sold, the proceeds of sale will be divided between the joint owners so that the participating Director receives an amount equal to any growth in the market value of the jointly owned Ordinary Shares above the initial market value (£2.90 pence per share), less a “carrying cost” (equivalent to simple interest at 4.5 per cent per annum on the initial market value) and the Trust receives the initial market value of the jointly owned shares plus the carrying cost. Jointly owned Ordinary Shares will become vested if the participant remains with the Company for a minimum period of 3 years. | |||||||||
| Options exercised during the period to 30 June 2015 under the employee share option scheme, resulted in 643,292 shares being issued (30 June 2014: 83,478 shares), with exercise proceeds of £211,000 (30 June 2014: £108,000) received. | |||||||||
| 8. Discontinued operations | |||||||||
| On 3 March 2015, the Group sold assets, as part of the disposal of its Organic feed business, Vitrition, for £750,000 net proceeds inclusive of £250,000 relating to a production related earn out. | |||||||||
| The post tax gain on disposal of discontinued operations was determined as follows: | |||||||||
| £000 | |||||||||
| Initial consideration received | 500 | ||||||||
| Fair value of contingent consideration | 130 | ||||||||
| Proceeds from sale of inventory | 144 | ||||||||
| Total consideration | 774 | ||||||||
| Assets disposed: | |||||||||
| – Property, plant and equipment | (25) | ||||||||
| – Inventory | (144) | ||||||||
| Costs of disposal | (156) | ||||||||
| Pre tax gain on disposal of discontinued operation | 449 | ||||||||
| Related tax expense | (91) | ||||||||
| Post tax gain on disposal of discontinued operation | 358 | ||||||||
| The results of discontinued operations was determined as follows: | |||||||||
| restated1 | restated1 | ||||||||
| six months to | six months to | year ended | |||||||
| 6/30/2015 | 6/30/2014 | 12/31/2014 | |||||||
| £000 | £000 | £000 | |||||||
| Revenue | 481 | 1,500 | 3,119 | ||||||
| Cost of sales | (460) | (1,369) | (2,826) | ||||||
| Administrative expenses | (8) | (24) | (50) | ||||||
| Tax expense | (3) | (23) | (52) | ||||||
| Post tax gain on disposal of discontinued operation | 358 | – | – | ||||||
| Profit for the period from discontinued operations | 368 | 84 | 191 | ||||||
| The cash flows from discontinued operations are not material. | |||||||||