Donegal Investment Group plc
Annual
Report &
Financial
Statements
for the year ended 31 August 2022
Donegal Investment Group plc ('DIG') ('Group') reports its results for
the year ended 31 August 2022.
Contents
Financial Highlights | 2 | ||
Board of Directors & Other Information | 3 | ||
Chairman's Statement | 4 | ||
Directors' Report | 5 | ||
Corporate Governance Report | 9 | ||
Corporate Social Responsibility Report | 14 | ||
Report of the Remuneration Committee | 15 | ||
Statement of Directors' Responsibilities | 19 | ||
Independent Auditor's Report | 20 | ||
Consolidated Statement of Profit or Loss | |||
and Comprehensive Income | 26 | ||
Consolidated Statement of Financial Position | 28 | ||
Company Statement of Financial Position | 30 | ||
Consolidated Statement of Changes in Equity | 32 | ||
Company Statement of Changes in Equity | 34 | ||
Consolidated Statement of Cash Flows | 35 | ||
Company Statement of Cash Flows | 37 | ||
Notes to the Consolidated Financial Statements | 39 |
1
Financial Highlights
The Directors present their report and the audited financial statements for the year ended 31 August 2022. The comparative amounts relate to the 12 months ended 31 August 2021.
Financial Performance
The Group's seed potato business delivered a lower than expected performance for the year ended 31 August 2022. Group revenue decreased by 3% (€0.9m) to €25.2m - with higher production costs combined with weak pricing resulting in lower demand in the seed potato sector, the business delivered a segmental trading profit €0.6m, a decrease of €1.4m on the prior year.
The Group completed the sale of its speciality dairy business Nomadic Dairy Limited ("Nomadic") on 5 November 2021 with a profit on disposal of €13.1m. This includes the recognition of 80% of contingent consideration receivable of €3.0m, based on the fair value of the contingent consideration receivable which will ultimately be dependent on the financial performance of Nomadic for the period 1 January 2022 to 31 December 2022, inclusive. Nomadic's financial performance for the period during which it was controlled by the Group, together with the profit on disposal, is classified as a discontinued operation in this year's results.
Further non-core asset disposals took place during the year with a number of property holdings sold which in aggregate generated net proceeds of €0.9m (€0.2m received post year-end), including the Oatfield site in Letterkenny.
Financial Position
The Group has a cash position, net of bank overdrafts and lease debt, of €2.9m at year end compared to a €3.7m net position at 31 August 2021 following the completion of the sale of Nomadic and the subsequent return of capital on 14 February 2022. The Group received net proceeds following the disposal of Nomadic of €16.7m. Please note an additional €3.3m in cash was held as an asset held for sale at 31 August 2021 and was also retained by the Group.
Return of Capital
Following approval by shareholders at the EGM on 11 February 2022, the Group completed the conversion and redemption of 1,306,497 ordinary shares of the Company at a price of €15.30 on the 14 February 2022. This resulted in a return of capital of €20.0m to our shareholders. The Group currently has issued share capital of 1,589,461 with 67,168 of those shares held as treasury shares.
Head Office
As announced on 1 March 2022, the Group Head Office in Ballyraine, Letterkenny was wound down in the year which resulted in the Group incurring a one-off cash cost of €1.6m with an exceptional charge of €0.7m being recorded in the year. This is the continuation of cost saving measures at a corporate level which, when completed, will have delivered annualised cost savings of €1m.
2
Board of Directors and Other Information
The Board of Directors of Donegal Investment Group plc currently comprises five Non-Executive Directors.
Non-Executive Directors
Geoffrey Vance (aged 71) is Chairman of Donegal Investment Group plc. He has served on the Board of Donegal Investment Group plc since its conversion from a society in 1989. Prior to this, he served for a number of years on the Committee of management of Donegal Co-operative Creameries Limited.
Patrick Kelly (aged 49) was appointed to the Board on 7 July 2004. He is the chairman of the audit committee. He is also vice chairman of the Irish Cattle Breeding Federation and a Board member of Progressive Genetics.
Henry McGarvey (aged 55) was appointed to the Board on 28 August 2013. Henry was previously Managing Director of Pramerica Systems Ireland Limited and is currently a Board member of the Western Development Commission. Previously, he worked in senior executive positions with Almarai in Saudi Arabia and Motorola and Accenture in Dublin.
Ian Ireland (aged 61) joined Donegal Investment Group plc in January 2005. Prior to that, he had spent over 20 years working in the food industry in Ireland and the UK.
Padraic Lenehan (aged 48) was appointed to the Board on 1 July 2015. Padraic joined Donegal Investment Group plc in 2008 as Financial Controller of its Dairy business, where he subsequently became Financial Controller of the merged Aurivo and Donegal Creameries milk business. In 2013 he returned to Donegal Investment Group plc as Finance Director. Prior to that, he worked for RTÉ, Accenture and in financial services in Dublin.
Secretary and registered office
- Lenehan Ballyraine Letterkenny Co Donegal
Independent auditor
KPMG
Chartered Accountants
1 Stokes Place
St. Stephen's Green
Dublin 2
Solicitors
Mason Hayes Curran
Barrow Street
Dublin 4
Eversheds Sutherland
Earlsfort Terrace
Dublin 2
Principal Bankers
Allied Irish Bank plc
Letterkenny
Co Donegal
Registered number
162921
3
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Donegal Investment Group plc published this content on 21 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 December 2022 07:06:08 UTC.