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HRL HOLDINGS LIMITED
Appendix 4D December
FY2022 Half-Yearly Final Report
Results for Announcement to the Market
1. Company Details and Reporting Period
Name of Entity: | HRL Holdings Limited | |||
ABN: | 99 | 120 896 371 | ||
Reporting Period: | 31 | December 2021 | ||
Previous Corresponding Period: | 31 December 2020 | |||
2. | Results for Announcement to the Market | $000's | ||
Revenue from ordinary activities up 10.1% to: | 18,008 |
Net loss for the period attributable to members decreased to: 729
No dividends were paid or payable during the period.
Refer to pages 1 to 5 of the Financial Statements for the operational and financial review of the Entity.
3. Statement of Comprehensive income with Notes to the Statement
Refer to Page 7 of the December 2021 Financial Statements and accompanying Notes.
4. Balance Sheet with Notes to the Statement
Refer to Page 8 of the December 2021 Financial Statements and accompanying Notes.
5. Statement of Cash Flows with Notes to the Statement
Refer to Page 10 of the December 2021 Financial Statements and accompanying Notes.
6. Dividends
No dividends were paid or payable during the period.
7. Statement of Changes in Equity
Refer to Page 9 of the December 2020 Financial Statements and accompanying Notes.
8. Net Tangible Assets per Security
Dec 2021 | $0.0132 |
Dec 2020 | $0.0127 |
9. Entities over which Control has been Gained or Lost during the Period.
Not applicable.
www.hrlholdings.com | ABN 99 120 896 370 | ASX Code: HRL
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10. Associates and Joint Venture Entities
Not applicable.
11. Other Significant Information
Not applicable.
12. Accounting Standards used for Foreign Entities
Not applicable.
13. Status of Audit
The attached December 2021 Financial Statements have been reviewed.
14. Dispute or Qualifications if not yet audited
Not applicable.
15. Dispute or Qualifications if audited
Not applicable.
Paul Marshall
Company Secretary
28 January 2022
www.hrlholdings.com | ABN 99 120 896 370 | ASX Code: HRL
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HRL HOLDINGS LIMITED
INTERIM FINANCIAL REPORT
FOR THE HALF-YEAR ENDED
31 DECEMBER 2021
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DIRECTORS' REPORT
DIRECTORS' REPORT
Your Directors present their report on the Consolidated Entity consisting of HRL Holdings Limited ("HRL" or "Company") and the entities it controlled ("the Group") at the end of, or during, the half-year ended 31 December 2021.
DIRECTORS
The following persons were directors of HRL Holdings Limited during the whole of the half-year reporting period and up to the date of this report, unless otherwise stated:
Name | Position | Period of Directorship | |
Greg Kilmister | Non-Executive Chairman | Appointed 11 February 2019 | |
Steve Howse | Executive Director | Appointed 1 | March 2018 |
James Todd | Non-Executive Director | Appointed 1 | March 2018 |
Richard Stephens | Non-Executive Director | Appointed 3 | September 2020 |
Alex White | Non-Executive Director | Appointed 1 | March 2021 |
Edmon Odza | Alternate Director | Appointed 30 November 2021 |
REVIEW OF OPERATIONS
COVID-19 Impacts
New Zealand
Unfortunately, New Zealand operations were again materially affected by COVID-19 lockdowns through the period.
From mid-August through to early December New Zealand was impacted by a range of lockdowns with the Auckland region in particular impacted by prolonged restrictions.
Analytica's essential food service and water testing service lines remained unrestricted during the lockdown periods, however other service areas experienced both shutdowns during a 3-week period in August/September and drops in normal volumes through the rest of the period. There were efficiency losses across the laboratories during Level 3 and 4 lockdowns as enhanced social distancing and health and safety procedures were put in place.
Precise was also impacted with all operations shutdown during the week period in August/September and significant decline in trade until restrictions were relaxed to Level 2 in the various regions.
From 3 December 2021, remaining material restrictions were relaxed with New Zealand moving to the COVID-19 Protection Framework ("Traffic light system").
During the half-year, Analytica and Precise received the following COVID-19 related support subsidies from the New Zealand Governments:
Entity | Subsidy Received |
$AUD | |
Analytica | 85,000 |
Precise | 189,000 |
274,000 | |
Refer to the Trading Update for specific impacts on each service line.
Australia
Apart from interstate travel restrictions and delays to supply chains, Australian operations remained relatively unaffected by COVID-19 during the period.
No COVID-19 related subsidies were received.
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DIRECTORS' REPORT
Trading Update
The first half of FY2022 was a disappointing result with COVID-19 impacts in New Zealand and downturns in the dairy and honey markets contributing to weak results.
Food and Environmental Laboratory Services
The Food and Environmental Laboratory division incorporates the New Zealand based Analytica business unit.
Analytica revenues grew by a modest 2% compared with the prior period:
- Honey revenues experienced a material decline of 28% on the prior period. Over supply from the previous season combined with a fall in demand from overseas customers, daigou channels and travellers for Manuka honey all contributed to the sharp drop off in testing.
- Milk testing was down 16% on the prior period with continued weakness for beta casein testing. Dairy customers reported cross-border trade disruptions due to COVID-19 creating substantial demand/supply volatility which caused excess inventory. The daigou/reseller channels have also significantly declined.
- Product origin testing continues to grow with revenues up 7% on the prior period.
- Asbestos testing, based in Analytica's regional lab network, pleasingly grew 17% on the prior period. Increasing volumes in these regional labs is a key focus for FY2022.
- Despite being one of the main service lines impacted by the Auckland lockdowns, environmental testing services (laboratory testing of asbestos, air, water and soil) grew 14% after excluding the revenue provided by the Water Testing Hawkes Bay acquisition. Monthly revenues had returned to expected volumes in November and December.
- Drugs of abuse saw a sharp decline (28%) during the period with property contamination testing very weak throughout the lockdowns.
- Project revenues were strong during the period with growth of 53% on the prior period on the back of a number of dairy related projects.
In line with the medium-term strategic plan outlined in July, Analytica invested in technical staff with headcount increasing 14% over the period in order to secure sufficient capability in a tight labour market. The additional labour costs in combination with limited revenue growth impacted margins during the period but are a key component in growing the business over the next 3 years.
HAZMAT
The HAZMAT division, which incorporates the OCTIEF business unit in Australia and the Precise business in New Zealand, had a solid half-year despite the New Zealand lockdowns.
Precise operations were fully closed, except for emergency works, through much of August and September. With the exception of the Auckland region, asbestos survey works came back strongly following the easing of restrictions and revenues from October onwards were at very high levels.
Auckland operations remained impacted, with full operations only returning in December. Despite these setbacks, Precise operations held up remarkably well and met internal expectations for the period.
Property contamination services remained weak through the period with limited demand from the Auckland region.
Occupational Hygiene revenues were soft due to the Occupational Hygiene specialists being based in Auckland and unable to travel to sites. With Auckland travel restrictions now removed, Precise is expecting a substantial increase in these works in the second half.
Australian operations for OCTIEF were very solid during the period meeting internal expectations. OCTIEF's environmental laboratory service continued to grow with revenues up 68% on the prior period. The majority of OCTIEF's workload continues to come from the QLD and NT governments and utility providers and this is expected to remain the case through the second half.
Software
The Software division incorporates the OCTFOLIO business unit which is Australian based but has existing contracts and clients in both Australia and New Zealand.
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HRL Holdings Ltd. published this content on 27 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2022 22:02:53 UTC.