Produce Investments plc, (AIM:PIL), a leading operator in the fresh potato and daffodil sectors, is pleased to announce its final results for the 52 weeks ended 30 June 2018.
Key Operational Highlights:
- Operating Profit in line with boards expectations
- Solid performance in the Core Fresh business in an oversupplied market
- Poor spring weather adversely impacting the seasonal business of Rowe Farming and Jersey
- Significant investment in the development of new app-based field technology improving planning and forecasting
- Board changes: Billy Keane, formerly Finance Director and Group Managing Director of Robert Wiseman Dairies, and currently Chairman of Dairy UK and a Director of Grahams The Family Dairy, appointed to the board as a Non-Executive Director, and Chair of Audit Committee
- Confirmation of impending offer from Promethean Investments LLP to buy Produce Investments PLC
Key Financial Points:
- Operating profit for the year in line with the boards expectations £6.1m (2017: £7.8m restated)
- EBITDA at £12m
- Exceptional Costs of £14.7m and prior period adjustments of £1.4m
- Reduction in net debt to £25.75m at year end (2017: £28.0m)
- Decision on a final dividend delayed until the outcome of the impending purchase by Promethean Investments is known
Angus Armstrong, Chief Executive, commented:
“In a difficult year impacted by the adverse spring weather we have seen business gains and improved operational efficiencies in our core fresh segment helping sustain our performance in a tough retail environment and I am pleased to say that we have delivered operating profit in line with the board’s revised expectations.
Rowe Farming and Jersey both suffered due to the long periods of cold and unseasonal spring weather and our Swancote facility continued to struggle in a fragmented and competitive market sector.
We have invested heavily in our Restrain business and consolidated our development and manufacturing to one location, and the Linwood crops business is now well established and performing well.
As a Group we remain cash generative, reflected in our net debt reduction to £25.8m, driven by better cash management and the increasing diversity of the business.
Looking forward, we will be increasing our presence in the daffodil market, continuing our growth with Restrain through a healthy demand for its tomato ripening and potato storage solutions and we will continue to expanding the Linwood Crops business.
Whilst we were disappointed to announce a three year wind down of one key customer contract, we are confident that we are well positioned to pick up new opportunities in the market, and we will continue to review the cost base of the company.
We are also working through the fair and reasonable offer from Promethean Investments LLP and regardless of the outcome I remain confident that management and staff will continue to grow and develop the business.”
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