Company name Fyffes PLC
Headline Half Yearly Report


RNS Number : 2880L
Fyffes PLC
03 September 2012
 



 

 

 

Fyffes plc

Interim Results 2012

 

Fyffes reports strong first half result and increases full year target

 

 


6 months to
30 June 2012

6 months to
30 June 2011






Total revenue (incl share of joint ventures)

 

550.1m

458.5m

+20.0%

Group revenue (excl share of joint ventures)

442.9m

370.0m

+19.7%

EBITDA*

28.1m

20.6m

+36.0%

EBITA*

23.3m

 

17.7m

 

+31.2%

Profit before tax *

22.4m

17.3m

+29.5%

Diluted earnings per share *

6.48 cent

4.41 cent

+46.9%

Interim dividend

0.65 cent

0.605 cent

+7.4%

 

 

Commenting on the results, David McCann, Chairman, said:

 

"Fyffes has delivered a strong increase in profits for the first half of the year, driven by further organic growth in each of its product categories.  Earnings per share also benefited from the significant repurchase of shares in 2011.  Fyffes is increasing its 2012 full year target EBITA range to €28m-€33m from €25m-€30m previously."

 

 

 

*              These financial terms are defined on the next page

 

 

3 September 2012

 

 

For further information, please view the interim results slide presentation at www.fyffes.com
or contact Brian Bell at Wilson Hartnell PR, Tel: +353-1-6690030.

 



Financial results and operating review

 

Revenue

 

Total revenue, including the Group's share of its joint ventures, was €92m higher (20.0%) year on year in the first half, amounting to €550.1m.  Sales were higher in each of the Group's product categories, driven mainly by further organic growth.  Revenue also benefited from favourable exchange rates on translation of sales in the Group's Sterling and US Dollar denominated operations.  In addition, turnover included the Group's share of the sales of its German joint venture for the full first half in 2012, compared to the 4 months post acquisition in 2011.

 

Operating profit

 

Adjusted EBITDA* amounted to €28.1m in the seasonally stronger first six months of 2012, up 36% on the same period last year.  Adjusted EBITA* increased 31.2% in the first half, to €23.3m.  The key drivers of the short term performance of Fyffes' tropical produce operations, and its banana category in particular, are average selling prices, exchange rates and the costs of fruit, shipping and fuel, all of which can result in volatility in year on year profitability.  The increase in profits achieved in the first half of the year reflects, in particular, the further organic growth in each of the Group's product categories and continued improvements and efficiencies throughout its operations.

 

Fyffes performed strongly in the banana category during the first half of the year, achieving a €3.9m increase in operating profit year on year.  The Group increased its banana volumes as a result of additional business with new and existing customers during the period.  The industry experienced a number of headwinds during the first half of the year, including a significant adverse movement in exchange rates, due to the relative strength of the US Dollar, combined with higher fruit costs and a further 20% increase in bunker fuel prices.  The Group is continuing to pursue necessary increases in selling prices in its key markets in the context of these higher costs and less favourable exchange rates.  In addition, Fyffes continued to focus on its cost base and the efficiency of its operations during 2012 and has achieved savings as a result of reconfiguring part of its shipping logistics. 

 

In the pineapple category, Fyffes has built on the progress made in the previous year with an increase in profits in the first half of the year.  This has been achieved despite the same headwinds as experienced in the banana category, including higher fuel costs and adverse currency movements.  The key drivers of the higher profits in the category were an 8% increase in volumes and lower shipping costs as a result of the logistical changes mentioned above.  Overall market conditions were broadly positive compared to the same period last year, particularly in Continental Europe.

 

Fyffes' US melon business performed well during the key import season, with an increase in its underlying trading profit in the first half of the year.  The business continues to achieve strong organic growth.  Production capacity increased during the period through the purchase of an additional farming operation in Guatemala and its marketing reach was expanded with the opening of a sales office on the US West Coast.  While growing the business strongly, management also remained very focused on its operating costs and structures.

 

There has been no change in the period in the carrying value of the Group's 40% investment in Balmoral International Land Holdings plc ("Balmoral") which was written down to a nominal value at the end of 2011 following its corporate reorganisation and delisting.

 

Total operating profit for the six months ended 30 June 2012, including amortisation charges and joint ventures tax charges amounted to €21.6m, compared to €16.5m in the first half last year, an increase of 31.5%.

 

* Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation, excluding the Group's share of Balmoral's result, including the Group's share of the pre-tax earnings of its joint ventures.  Adjusted EBITA is EBITDA less depreciation charges. Adjusted profit before tax is Adjusted EBITA less financing charges.  Adjusted diluted earnings per share excludes the Group's share of Balmoral's result and amortisation charges. 

 



Financial income/expense

 

Net interest expense in the Group's subsidiary companies in the first half amounted to €0.8m, compared to €0.3m in the same period last year, mainly reflecting lower average cash balances in the period. 

 

Profit before tax

 

Adjusted profit before tax amounted to €22.4m in the first half, 29.5% up on the same period last year, reflecting the 31.2% increase in EBITA less the higher interest costs.  As explained above and set out in detail in note 2 of the attached interim financial information, adjusted profit before tax excludes amortisation of intangible assets and the Group's share of the tax charge of its joint ventures, which is reflected in profit before tax under IFRS rules and, where applicable, the Group's share of Balmoral's result and exceptional items.  Profit before tax, before these adjustments, amounted to €20.9m, up 29.6% on the €16.1m in the same period last year.

 

Taxation

 

The underlying tax charge for the first half of the year has been calculated based on the tax rate that is expected to apply for the full year 2012.  The tax charge for the period is analysed in note 3 of the accompanying financial information.  Excluding the impact of deferred tax credits related to the amortisation of intangible assets and including the Group's share of tax of its joint ventures, the underlying tax charge for the half year was €2.9m (2011 half year: €2.3m), equivalent to a rate of 13% (2011 half year: 13%). This underlying rate is used for the purposes of calculating adjusted earnings per share.  The equivalent underlying tax rate for the full year in 2011 was 13%. 

 

Non-controlling interests

 

The non-controlling interests share of profit after tax for the first half amounted to €0.3m, compared to €0.5m in the same period last year.

 

Earnings per share

 

Adjusted diluted earnings per share, amounted to €6.48 cent in the first half, an increase of 46.9% compared to €4.41 cent in the same period last year.   This increase reflects the 31.2% increase in Adjusted EBITA in the period and the benefit of the shares repurchased in the second half of 2011 which amounted to close to 10% of the shares in issue. As set out in note 4 of the accompanying financial information, adjusted earnings per share excludes the Group's share of Balmoral's result where applicable, the amortisation of intangible assets and related tax credits.  Diluted earnings per share, before adjustments, amounted to €6.16 cent in the period, compared to €4.34 cent in the first half last year, an increase of 41.9%.

 

Dividend and share repurchase

 

The Board has declared an interim dividend for the year of 0.65 cent per share, an increase of 7.4% on the prior year.  This dividend, which will be subject to Irish withholding tax rules, will be paid on 22 October 2012 to shareholders on the register on 14 September 2012.  In accordance with company law and IFRS, this dividend has not been provided for in the balance sheet at 30 June 2012. 

 

At its AGM in May 2012, shareholders renewed the Group's authority to repurchase up to 10% of the shares in issue.  Taking into account the Group's financial position and other investment opportunities, the company may from time to time decide to repurchase further Fyffes plc shares in the market.

 

Balance sheet

 

Net funds

Net funds at 30 June 2012 amounted to €9.1m, an increase of €10.3m in the period compared to a €1.2m net debt position at the beginning of the year.  Cash generated from operations in the first half, comprising profit before tax, excluding the Group's share of profits in its joint ventures and before depreciation and amortisation amounted to €25.2m.  Capital expenditure amounted to €4.5m in the period, including €2.9m on the purchase of containers in the Group's US melon business.  Other significant expenditure in the period included dividend payments of €3.9m, €2.2m on acquisitions and deferred consideration payments, tax payments of €1.6m and excess pension contributions plus MNOPF payments of €1.5m.

Cash balances are expected to reduce during the second half of the year.  The Group anticipates making further deferred consideration and similar payments in respect of prior year acquisitions before the end of the year.  In addition, the Group's US melon business requires a significant annual seasonal investment in working capital during the second half each year.

 

Pension obligations

The deficit in the Group's defined benefit pension schemes, before deferred tax, increased from €21.7m at the beginning of the year to €31.9m at 30 June 2012.  This represents a prudent estimate of the obligations under these schemes measured in accordance with actuarial advice and reflects the impact of the continued reduction in international bond rates.  On this basis, scheme liabilities increased by €16.1m during the period, partly offset by a €5.9m (5.2%) increase in the value of scheme assets.  The schemes are closed to new members.

 

Shareholders' funds

Shareholders' funds increased by €4.1m in the first half, to €139.9m at 30 June 2012.  This reflected retained profits after minority interest of €18.3m and balance sheet currency gains of €2.7m on translation of the Group's Sterling and US Dollar denominated net assets, less dividends paid of €3.9m, a €3.6m reduction in hedging assets as a result of hedging gains recognised in the period and a €9.3m actuarial loss in the Group's pension schemes, net of deferred tax. 

 

Current trading

 

The Group continues to pursue necessary increases in selling prices in all markets to offset the impact of adverse exchange rate movements and the higher cost of fuel and fruit. Trading conditions in Continental Europe have been broadly satisfactory during the summer months.  As a result, Fyffes is increasing its 2012 full year target EBITA range to €28m - €33m, from €25m - €30m previously.

 

 

 

David McCann, Chairman

on behalf of the Board

3 September 2012

 

 

 

 

 

Copies of this announcement are available from the Company's registered office, 29 North Anne Street, Dublin 7 and on our website at www.fyffes.com.

  

 



Fyffes plc

Condensed Group Income Statement

 


(Unaudited)
6 months to
30 June 2012
€'000

(Unaudited)
6 months to
30 June 2011
€'000

(Audited)
Year ended
31 Dec 2011
€'000





Revenue including share of joint ventures

550,145

458,529

850,044





Group revenue

442,895

370,001

659,045





Group operating profit

21,157

15,018

18,285

Share of profit of joint ventures (after tax, before amortisation)


1,737


1,908


3,728

Intangible amortisation including share of joint ventures

(1,261)

(910)

(2,939)

Share of profit/(loss) of associates after tax (Balmoral)

-

434

(5,856)





Operating profit

21,633

16,450

13,218

Net financial expense - Group

(755)

(346)

(725)





Profit before tax

20,878

16,104

12,493

Income tax expense

(2,303)

(1,259)

(1,271)





Profit for the period

18,575

14,845

11,222





Attributable as follows:




Equity shareholders

18,315

14,320

11,411

Non-controlling interests

260

525

(189)






18,575

14,845

11,222





Earnings per share




Basic

6.16

4.35

3.53

Diluted

6.16

4.34

3.53

Adjusted diluted

6.48

4.41

6.05

 



Fyffes plc

Condensed Group Statement of Comprehensive Income

 


(Unaudited)
6 months to
30 June 2012
€'000

(Unaudited)
6 months to
30 June 2011
€'000

(Audited)
Year ended
31 Dec 2011
€'000





Profit for the period

18,575

14,845

11,222

Translation of net equity investments

2,656

(6,911)

2,736

Foreign currency movement recognised in associated undertakings

-

(15)

10

Loss in associated undertaking set against revaluation reserves

-

(1,837)

(2,513)

Impairment of associated undertaking set against revaluation reserves

-

-

(3,578)

Effective portion of cashflow hedges

(4,150)

(1,467)

7,009

Deferred tax on effective portion of cashflow hedges

519

183

(876)

Actuarial (loss)/gain recognised on defined benefit pension schemes

(11,036)

578

(9,146)

Deferred tax movements related to pension schemes

1,724

(170)

1,601

Share of actuarial (loss) on joint ventures pension schemes

(50)

(351)

(477)

Deferred tax movement related to joint ventures pension schemes

(30)

98

36





Total comprehensive income

8,208

4,953

6,024





Attributable as follows:




Equity shareholders

7,948

4,428

6,213

Non-controlling interests

260

525

(189)





Total comprehensive income

8,208

4,953

6,024

 

 


Fyffes plc

Condensed Group Statement of Movement in Equity

 




Half year ended 30 June 2012


Share
capital
€'000


Share
premium
€'000

Other
reserves
(Note 8)
€'000


Retained
earnings
€'000


Shareholders'
 funds
€'000

Non-
controlling
 interests
€'000


Total
equity
€'000









Balance at beginning of period

19,828

98,999

60,170

(43,192)

135,805

689

136,494

Profit for the period

-

-

-

18,315

18,315

260

18,575

Translation of net equity investments incl joint ventures and associates

-

-

2,656

-

2,656

-

2,656

Effective portion of cashflow hedges net of deferred tax

-

-

(3,631)

-

(3,631)

-

(3,631)

Actuarial loss recognised on defined benefit pension schemes net of deferred tax

-

-

-

(9,312)

(9,312)

-

(9,312)

Share of actuarial loss on joint ventures pension schemes net of deferred tax

-

-

-

(80)

(80)

-

(80)

Share based payments

-

-

81

-

81

-

81

Cancellation of treasury shares

(300)

-

1,869

(1,569)

-

-

-

Dividends paid to equity shareholders

-

-

-

(3,926)

(3,926)

-

(3,926)









Total at end of period

19,528

98,999

61,145

(39,764)

139,908

949

140,857

 

 

 




Half year ended 30 June 2011


Share
capital
€'000


Share
premium
€'000

Other
reserves
(Note 8)
€'000


Retained
earnings
€'000


Shareholders'
 funds
€'000

Non-
controlling
 interests
€'000


Total
equity
€'000









Balance at beginning of period

21,693

98,999

53,553

(26,144)

148,101

878

148,979

Profit for the period

-

-

-

14,320

14,320

525

14,845

Translation of net equity investments incl joint ventures and associates

-

-

(6,926)

-

(6,926)

-

(6,926)

Loss in associated undertaking set against revaluation reserves

-

-

(1,837)

-

(1,837)

-

(1,837)

Effective portion of cashflow hedges net of deferred tax

-

-

(1,284)

-

(1,284)

-

(1,284)

Actuarial gain recognised on defined benefit pension schemes net of deferred tax

-

-

-

408

408

-

408

Share of actuarial loss on joint ventures pension schemes net of deferred tax

-

-

-

(253)

(253)

-

(253)

Share options exercised

8

-

-

-

8

-

8

Share based payments

-

-

81

-

81

-

81

Dividends paid to equity shareholders

-

-

-

(3,955)

(3,955)

-

(3,955)









Total at end of period

21,701

98,999

43,587

(15,624)

148,663

1,403

150,066

 



Fyffes plc

Condensed Group Statement of Movement in Equity (cont'd)

 




Full year ended 31 December 2011


Share
capital
€'000


Share
premium
€'000

Other
reserves
(Note 8)
€'000


Retained
earnings
€'000


Shareholders'
 funds
€'000

Non-
controlling
 interests
€'000


Total
equity
€'000









Balance at beginning of year

21,693

98,999

53,553

(26,144)

148,101

878

148,979

Profit/(loss) for the year

-

-

-

11,411

11,411

(189)

11,222

Translation of net equity investments incl joint ventures and associates

-

-

2,746

-

2,746

-

2,746

Loss in associated undertaking set against revaluation reserves

-

-

(6,091)

-

(6,091)

-

(6,091)

Effective portion of cashflow hedges net of deferred tax

-

-

6,133

-

6,133

-

6,133

Actuarial loss recognised on defined benefit pension schemes net of deferred tax

-

-

-

(7,545)

(7,545)

-

(7,545)

Share of actuarial loss on joint ventures pension schemes net of deferred tax

-

-

-

(441)

(441)

-

(441)

Share options exercised

10

-

-

-

10

-

10

Share based payments

-

-

162

-

162

-

162

Own shares acquired

-

-

(12,732)

-

(12,732)

-

(12,732)

Cancellation of treasury shares

(1,875)

-

16,399

(14,524)

-

-

-

Dividends paid to equity shareholders

-

-

-

(5,949)

(5,949)

-

(5,949)









Total at end of year

19,828

98,999

60,170

(43,192)

135,805

689

136,494

 


Fyffes plc

Condensed Group Balance Sheet

 


(Unaudited)
30 June 2012
€'000

(Unaudited)
30 June 2011
€'000

(Audited)
31 Dec 2011
€'000

Non-current assets




Property, plant and equipment

78,823

69,513

75,488

Goodwill and intangible assets

21,904

21,552

22,377

Other receivables

6,307

6,868

7,048

Investment in joint ventures

38,407

36,332

36,874

Investment in associate - Balmoral

50

10,569

50

Equity investments

16

15

16

Biological assets

202

282

238

Deferred tax assets

11,400

7,456

9,507

Total non-current assets

157,109

152,587

151,558





Current assets




Inventories

30,070

22,868

33,513

Biological assets

1,745

203

11,758

Trade and other receivables

76,354

63,898

65,028

Hedging instruments

3,887

219

8,462

Corporation tax recoverable

868

242

235

Short term bank deposits

91

-

98

Cash and cash equivalents

36,211

46,594

25,265

Total current assets

149,226

134,024

144,359





Total assets

306,335

286,611

295,917





Equity




Called-up share capital

19,528

21,701

19,828

Share premium

98,999

98,999

98,999

Other reserves

61,145

43,587

60,170

Retained earnings

(39,764)

(15,624)

(43,192)





Total shareholders' equity

139,908

148,663

135,805

Non-controlling interests

949

1,403

689





Total equity and non-controlling interests

140,857

150,066

136,494





Non-current liabilities




Interest bearing loans and borrowings

9,991

8,557

9,374

Other payables

953

1,665

1,048

Provisions

12,432

11,755

13,589

Post employment benefits

31,865

11,169

21,675

Corporation tax payable

12,007

11,333

12,007

Deferred tax liabilities

3,948

3,876

4,760

Total non-current liabilities

71,196

48,355

62,453





Current liabilities




Interest bearing loans and borrowings

17,175

6,016

17,180

Trade and other payables

69,826

68,372

74,907

Corporation tax payable

3,571

3,538

1,967

Hedging instruments

67

740

492

Provisions

3,643

9,524

2,424

Total current liabilities

94,282

88,190

96,970





Total liabilities

165,478

136,545

159,423





Total liabilities and equity

306,335

286,611

295,917



Fyffes plc

Condensed Group Cash Flow Statement

 


(Unaudited)
6 months to
30 June 2012
€'000

(Unaudited)
6 months to
30 June 2011
€'000

(Audited)
Year ended
31 Dec 2011
€'000





Cash flows from operating activities

19,983

11,544

2,748

Cash flows from investing activities

(3,808)

(10,896)

(20,463)

Cash flows from financing activities

(1,268)

1,839

(3,180)





Net movement in cash and cash equivalents

14,907

2,487

(20,895)

Cash and cash equivalents, including bank overdrafts at start of period


18,837


36,264


36,264

Transfer from short term deposits

9

2,480

2,387

Effect of foreign exchange movements on cash and cash equivalents


1,205


299


1,081





Cash and cash equivalents, including bank overdrafts at end of period


34,958


41,530


18,837









Reconciliation of total net funds








Increase in cash and cash equivalents

14,907

2,487

(20,895)

Net increase in debt

(2,962)

(6,112)

(16,034)

Acquisition of subsidiary - net debt acquired

-

(2,123)

(2,090)

Capital element of finance lease payments

304

326

543

New finance leases

(2,884)

(121)

(116)

Foreign exchange movement

962

477

314





Movement in net funds

10,327

(5,066)

(38,278)

Net (debt)/funds at start of period

(1,191)

37,087

37,087





Net funds/(debt) at the end of period

9,136

32,021

(1,191)

 

 



Fyffes plc

Notes supporting 2012 interim financial statements

 

1.         Basis of preparation

 

The condensed consolidated interim financial statements of Fyffes plc, its subsidiaries and joint ventures ("the Group") for the half year ended 30 June 2012 are unaudited.  These financial statements do not constitute the statutory financial statements that are required by Section 7 of the Companies (Amendment) Act, 1986 to be annexed to the annual return of the company.  The statutory consolidated financial statements for the year ended 31 December 2011 have been annexed to the 2012 annual return and filed with the Registrar of Companies.  The audit report on those statutory financial statements was unqualified.

 

The financial information contained in these interim financial statements has been prepared in accordance with the accounting policies set out in the last annual report for the year ended 31 December 2011, prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) as adopted by the EU.

 

The financial information is presented in Euro, rounded to the nearest thousand.  Given the seasonality of the tropical produce sector, the Group's profits are typically significantly weighted towards the first half of the year.  The interim financial statements were authorised by the Board on 31 August 2012.

 

There were no new accounting standards which became effective for the first time in 2012 that had a material impact on the results or the financial position of the Group in the six month period ended 30 June 2012.

 

 

2.         Adjusted profit before tax, EBITA and EBITDA


(Unaudited)
6 months to
30 June 2012
€'000

(Unaudited)
6 months to
30 June 2011
€'000

(Audited)
Year ended
31 Dec 2011
€'000





Profit before tax per Income Statement

20,878

16,104

12,493

Adjustments




Group share of tax charge of joint ventures

306

747

949

Share of (profit)/loss after tax of Balmoral

-

(434)

5,856

Amortisation of intangible assets

1,261

910

2,939





Adjusted profit before tax

22,445

17,327

22,237





Exclude




Financial expense - Group

755

346

725

Financial expense - share of joint ventures

81

71

228





Adjusted EBITA

23,281

17,744

23,190





Depreciation

4,791

2,904

6,451





Adjusted EBITDA

28,072

20,648

29,641

 

Fyffes believes that adjusted profit before tax, adjusted EBITA and adjusted earnings per share (note 4 below) are the appropriate measures of the underlying performance of the Group, excluding exceptional items if any and amortisation charges.

 

 



3.         Taxation


(Unaudited)
6 months to
30 June 2012
€'000

(Unaudited)
6 months to
30 June 2011
€'000

(Audited)
Year ended
31 Dec 2011
€'000





Tax charge per Income Statement

2,303

1,259

1,271

Group share of tax charge of its joint ventures netted in profit before tax


306


747


949





Total tax charge

2,609

2,006

2,220

Adjustments




Deferred tax credit relating to amortisation of intangibles

309

247

667





Tax charge on underlying activities

2,918

2,253

2,887

 

Including the Group's share of the tax charge of its joint ventures of €0.3m (2011 first half: €0.7m), which is netted in operating profit in accordance with IFRS, the total tax charge for the period amounted to €2.6m (2011 first half: €2.0m).

 

Adjusting for deferred tax credits related to the amortisation of intangible assets, the underlying tax charge for the period was €2.9m (2011 first half: €2.3m), equivalent to a rate of 13% (2011 first half: 13%) when applied to the Group's Adjusted Profit before Tax.

 

The Group's underlying tax rate for the first half of the year is based on the estimated tax rate that is expected to apply for the full year.  The equivalent underlying charge for the full year in 2011 was a charge of €2.9m, equal to a rate of 13%.

 



4.         Earnings per share


(Unaudited)
6 months to
30 June 2012
€'000

(Unaudited)
6 months to
30 June 2011
€'000

(Audited)
Year ended
31 Dec 2011
€'000





Profit attributable to equity shareholders

18,315

14,320

11,411

 

 


No. of shares
'000

No. of shares
'000

No. of shares
'000





Weighted average number of ordinary shares outstanding

325,465

361,624

355,269

Deduct: weighted average own shares held

(28,075)

(32,075)

(32,364)





Weighted average number of shares for calculation of basic earnings per share


297,390


329,549


322,905

Weighted average number of options with dilutive effect

-

71

47





Weighted average number of shares for calculation of diluted earnings per share


297,390


329,620


322,952

 

 


€ Cent

€ Cent

€ Cent





Basic earnings per share

6.16

4.35

3.53

Diluted earnings per share

6.16

4.34

3.53

 

 


€'000

€'000

€'000

Calculation of adjusted earnings per share




Profit attributable to equity shareholders

18,315

14,320

11,411

Adjustments




Share of Balmoral result

-

(434)

5,856

Amortisation of intangible assets

1,261

910

2,939

Deferred tax credit relating to amortisation of intangibles

(309)

(247)

(667)





Earnings for calculation of adjusted diluted earnings per share


19,267


14,549


19,539

 

 


€ Cent

€ Cent

€ Cent





Adjusted diluted earnings per share

6.48

4.41

6.05

 

Adjusted diluted earnings per share excludes amortisation charges on intangible assets and related deferred tax credits and, where applicable, the Group's share of Balmoral's result, the impact of exceptional items after tax and non-controlling interests, and once-off tax credits.

 

 



5.         Post employment benefits


(Unaudited)
6 months to
30 June 2012
€'000

(Unaudited)
6 months to
30 June 2011
€'000

(Audited)
Year ended
31 Dec 2011
€'000





Deficit at beginning of period

(21,675)

(13,829)

(13,829)

Current/past service cost less finance income recognised in Income Statement


(849)


(802)


(1,552)

Actuarial (loss)/gain recognised in Statement of Comprehensive Income


(11,036)


578


(9,146)

Employer contributions to schemes

2,400

2,302

3,366

Exchange movement

(705)

582

(514)





Deficit at end of period

(31,865)

(11,169)

(21,675)

Related deferred tax asset

7,227

3,853

5,338





Net deficit after deferred tax

(24,638)

(7,316)

(16,337)

 

This table summarises the movements in the net deficit on the Group's various defined benefit pension schemes in Ireland, the UK and Continental Europe.  The current/past service cost is charged in the Income Statement, net of finance income on scheme assets.  The actuarial (loss)/gain is recognised in the Statement of Comprehensive Income, in accordance with the amendment to IAS 19, Actuarial Gains and Losses, Group Plans and Disclosures.

 

 

6.         Dividends paid to equity shareholders


(Unaudited)
6 months to
30 June 2012
€'000

(Unaudited)
6 months to
30 June 2011
€'000

(Audited)
Year ended
31 Dec 2011
€'000

Cash dividends paid on Ordinary €6 cent shares




Final dividend for 2011 of 1.32 cent

3,926

-

-

Interim dividend for 2011 of 0.605 cent

-

-

1,994

Final dividend for 2010 of 1.20 cent

-

3,955

3,955





Total cash dividends paid in the period

3,926

3,955

5,949

 

The final dividend for 2011 of 1.32 cent per share, approved by the shareholders at the Annual General Meeting on 10 May 2012, gave rise to a distribution of €3.9m in the period.

 

The directors have proposed an interim dividend for 2012 of €0.65 cent per share (2011: €0.605 cent per share).  This dividend, which will be subject to Irish withholding tax rules, will be paid on 22 October 2012 to shareholders on the register at 14 September 2012.  In accordance with company law and IFRS, this dividend has not been recognised as a liability in the balance sheet at 30 June 2012.

 

At 30 June 2012, the company and subsidiary companies held 28,075,000 Fyffes plc ordinary shares
(31 December 2011: 33,075,000). 5,000,000 treasury shares were cancelled in January 2012.  The right to dividends on all treasury shares has been waived and they are excluded from the calculation of earnings per share.

 

 



7.         Notes supporting cash flow statement

 

7.1       Cash flows from operating activities


(Unaudited)
6 months to
30 June 2012
€'000

(Unaudited)
6 months to
30 June 2011
€'000

(Audited)
Year ended
31 Dec 2011
€'000





Profit for the period

18,575

14,845

11,222

Income tax expense

2,303

1,259

1,271

Tax paid

(1,572)

(1,373)

(2,531)

Depreciation of property, plant and equipment

4,791

2,904

6,451

Payments in connection with MNOPF

(483)

(458)

(926)

Contributions to defined benefit pension schemes less charge in Income Statement


(1,551)


(1,500)


(1,814)

Net interest paid less net interest expense in Income Statement


348


438


687

Amortisation of intangible assets and impairment of goodwill


1,261


910


3,931

Share of profits of joint ventures (after tax, before amortisation)


(1,737)


(1,908)


(3,728)

Share of (profit)/losses of Balmoral International Land Holdings plc


-


(434)


5,856

Movement in working capital

(2,031)

(3,157)

(17,690)

Other

79

18

19





Cash flows from operations

19,983

11,544

2,748

 

7.2       Cash flows from investing activities


€'000

€'000

€'000





Acquisition of subsidiaries net of cash acquired

-

(1,497)

(1,350)

Acquisition of and investment in joint ventures

-

(4,119)

(4,000)

Deferred consideration payments

(231)

(2,240)

(10,440)

Acquisition of property, plant and equipment

(3,622)

(3,247)

(6,039)

Proceeds on disposal of property, plant and equipment

45

207

734

Dividend income from joint ventures

-

-

632





Cash flows from investing activities

(3,808)

(10,896)

(20,463)

 

 

7.3       Cash flows from financing activities


€'000

€'000

€'000





Proceeds from issue of shares (including premium)

-

8

10

Net proceeds from borrowings

2,962

6,112

16,034

Capital element of lease payments

(304)

(326)

(543)

Purchase of own shares

-

-

(12,732)

Dividends paid to equity shareholders

(3,926)

(3,955)

(5,949)





Cash flows from financing activities

(1,268)

1,839

(3,180)

 

 



7.4       Analysis of movement in net funds in the period

 


Opening
1 Jan
 2012
€'000


Cash flow
€'000


Non-cash
movement
€'000



Translation
€'000

Closing
30 June
 2012
€'000







Short term bank deposits

98

(9)

-

2

91







Bank balances

22,991

(17,826)

-

916

6,081

Call deposits

2,274

27,540

-

316

30,130







Cash & cash equivalents per balance sheet

25,265

9,714

-

1,232

36,211

Bank overdrafts

(6,428)

5,202

-

(27)

(1,253)







Cash & cash equivalents per cash flow statement

18,837

14,916

-

1,205

34,958







Bank loans - current

(10,388)

(4,703)

48

(1)

(15,044)

Bank loans - non current

(8,844)

1,741

(48)

(163)

(7,314)

Finance leases

(894)

304

(2,884)

(81)

(3,555)







Total net (debt)/funds

(1,191)

12,249

(2,884)

962

9,136

 

 


8.         Reconciliation of other reserves

 



Capital
Reserves
€'000

Share
Options
Reserve
€'000

Currency
Translation
Reserve
€'000


Revaluation
Reserve
€'000

Treasury
Shares
Reserve
€'000


Hedging
Reserve
€'000

Total
Other
Reserves
€'000









Half year ended 30 June 2012








Balance at beginning of period

73,807

1,554

(5,501)

2,275

(18,938)

6,973

60,170

Total comprehensive income

-

-

2,656

-

-

(3,631)

(975)

Cancellation of treasury shares

300

-

-

-

1,569

-

1,869

Share based payments

-

81

-

-

-

-

81

Total at end of period

74,107

1,635

(2,845)

2,275

(17,369)

3,342

61,145









Half year ended 30 June 2011








Balance at beginning of period

71,932

1,392

(8,199)

8,318

(20,730)

840

53,553

Total comprehensive income

-

-

(6,926)

(1,837)

-

(1,284)

(10,047)

Currency movements in revaluation reserves

-

-

71

(71)

-

-

-

Share based payments

-

81

-

-

-

-

81

Total at end of period

71,932

1,473

(15,054)

6,410

(20,730)

(444)

43,587









Full year ended 31 December 2011








Balance at beginning of year

71,932

1,392

(8,199)

8,318

(20,730)

840

53,553

Total comprehensive income

-

-

2,746

(6,091)

-

6,133

2,788

Currency movements in revaluation reserves

-

-

(48)

48

-

-

-

Acquisition of own shares

-

-

-

-

(12,732)

-

(12,732)

Cancellation of treasury shares

1,875

-

-

-

14,524

-

16,399

Share based payments

-

162

-

-

-

-

162

Total at end of year

73,807

1,554

(5,501)

2,275

(18,938)

6,973

60,170

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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