ORIGIN ENTERPRISES PLC Strong underlying performance
27 September 2017Origin Enterprises plc ('Origin' or 'the Group'), the Agri-Services group, today announces its full year results for the year ended 31 July 2017.
HighlightsAdjusted diluted earnings per share up 4.7 per cent to 46.62 cent, ahead of guidance, and up 14.7 per cent on an underlying basis at constant currency
Operating profit of €70.0 million, an increase of 4.1 per cent and up 12.3 per cent on an underlying basis at constant currency
Group operating margin up 20 basis points to 4.6 per cent
Dedicated research partnership with University College Dublin and acquisition of Digital Agricultural Services group, Resterra, providing complementary extension in crop technology transfer
Completion of acquisition of fertiliser blending and nutrition business of Bunn Fertiliser in the UK in August 2017
Proposed final dividend of 17.85 cent, giving a total dividend of 21.0 cent (2016: 21.0 cent)
2017 €'000 | 2016 €'000 | % Change | |
Group revenue | 1,528,468 | 1,521,256 | 0.5% |
Operating profit1 | 70,009 | 67,258 | 4.1% |
Associates and joint venture2 | 4,366 | 5,621 | (22.3%) |
Total group operating profit1 | 74,375 | 72,879 | 2.1% |
Finance expense, net | (6,914) | (7,367) | 6.1% |
Profit before tax1 | 67,461 | 65,512 | 3.0% |
Basic EPS (cent) | 36.33 | 46.03 | (21.1%) |
Adjusted diluted EPS (cent)3 | 46.62 | 44.51 | 4.7% |
Return on capital employed | 13.7% | 13.6% | 10bps |
Group net (debt)/cash4 | (31,450) | 3,122 | - |
Dividend per ordinary share (cent) | 21.00 | 21.00 | - |
1 Before amortisation of non-ERP intangible assets and exceptional items
2 Profit after interest and tax before amortisation of non-ERP intangible assets and before exceptional items
3 Before amortisation of non-ERP intangible assets, net of related deferred tax (2017: €3.9m, 2016: €3.1m) and exceptional items, net of tax (2017: €9.3m, 2016: €4.7m credit)
4 Includes restricted cash of €Nil (2016: €2.9m)
Commenting on the results, Origin's Chief Executive Officer, Tom O'Mahony said:"Origin has delivered a solid financial result in 2017, recording a 4.7 per cent increase in adjusted diluted earnings per share. While market conditions were highly competitive, a combination of sustained volume growth and higher margins underpinned a strong underlying business performance which more than offset the adverse currency translation impact of sterling depreciation.
Demand for agronomy services and inputs was positively influenced by a more stable near term planning environment for primary producers together with the benefit of generally settled weather leading to good crop planting and growing conditions.
We continue to prioritise growth opportunity in Agri-Services while also focusing on operational and commercial effectiveness. The acquisition development and innovation investments made during the year will broaden the Group's service offer and capabilities in systemised crop technology transfer.
The Group is well positioned to capitalise on its scalable business platforms, development opportunities and strong balance sheet."
ENDS
The preliminary results statement is available on the company website www.originenterprises.com. There will be a live conference call at 8.30am (GMT) today. To listen to this conference call, please dial the number below. Participants are requested to dial in 5 to 10 minutes prior to the scheduled start time.
Confirmation Code: 1203818
Participant access number:
Dublin: Tel: +353 (0)1 486 0921
UK/International: Tel: +44 (0)20 3427 1903
Replay:A replay of this call will be available for seven days. Replay Access Code: 1203818 Replay Access Numbers:
Dublin: Tel: +353 (0)1 533 9810
UK/International: Tel: +44 (0)20 7984 7568
Enquiries:Origin Enterprises plc | ||
Imelda Hurley | ||
Chief Financial Officer | Tel: | +353 (0)1 563 4959 |
Andrew Mills | ||
Investor Relations Officer | Tel: | +353 (0)1 563 4900 |
Goodbody (ESM Adviser) | ||
Siobhan Wall | Tel: | +353 (0)1 641 6019 |
Davy (Nominated Adviser) | ||
Anthony Farrell | Tel: | +353 (0)1 614 9993 |
Powerscourt | ||
Jack Hickey (Ireland) | Tel: | +353 (0)83 448 8339 |
Rob Greening (UK) | Tel: | +44 (0)207 250 1446 |
Origin Enterprises plc is a focused Agri-Services group providing specialist On-Farm Agronomy Services, Digital Agricultural Services and the supply of crop technologies and inputs. The Group has leading market positions in Ireland, the United Kingdom, Poland, Romania and Ukraine. Origin is listed on the ESM and AIM markets of the Irish and London Stock Exchanges.
ESM ticker symbol: OIZ AIM ticker symbol: OGN
Website: www.originenterprises.com
Financial Review - Summary2017 €'000 | 2016 €'000 | |
Group revenue | 1,528,468 | 1,521,256 |
Operating profit1 | 70,009 | 67,258 |
Associates and joint venture, net2 | 4,366 | 5,621 |
Group operating profit1 | 74,375 | 72,879 |
Finance costs, net | (6,914) | (7,367) |
Pre-tax profits | 67,461 | 65,512 |
Income tax | (8,636) | (9,393) |
Adjusted net profit | 58,825 | 56,119 |
Adjusted diluted EPS (cent)3 | 46.62 | 44.51 |
Operating margin1 Return on capital employed | 4.6% 13.7% | 4.4% 13.6% |
Adjusted net profit reconciliation | ||
Reported net profit | 45,620 | 57,801 |
Amortisation of non-ERP intangible assets | 4,837 | 4,294 |
Tax on amortisation of non-ERP related intangible assets | (934) | (1,242) |
Exceptional items (net of tax) | 9,302 | (4,734) |
Adjusted net profit | 58,825 | 56,119 |
Adjusted diluted EPS (cent)3 | 46.62 | 44.51 |
Origin delivered a 4.7 per cent increase in adjusted diluted earnings per share3 for the year ending 31 July 2017 to 46.62 cent. On a like-for-like basis (adjusted for the impact of currency movements and acquisitions) there was an underlying increase in adjusted diluted earnings per share of 14.7 per cent.
Group revenueGroup revenue comprises the totality of revenue from the Group's wholly owned operations which are based in Ireland, the United Kingdom, Poland, Romania and Ukraine. These businesses provide Integrated Agronomy and On-Farm Services, Business-to-Business Agri-Inputs and Digital Agricultural Services.
Group revenue increased to €1,528.5 million from €1,521.3 million in the prior year, an increase of 0.5 per cent. On an underlying basis at constant currency, revenue increased by €51.6 million (3.4 per cent), with this movement principally reflecting increased service revenue and input volumes.
Underlying volume growth in agronomy services and inputs (excluding crop marketing volumes) was 5.11 per cent for the year.
Origin Enterprises plc published this content on 27 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 September 2017 06:09:15 UTC.
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