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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Origin Enterprises Plc | LSE:OGN | London | Ordinary Share | IE00B1WV4493 | ORD EUR0.01 (CDI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 3.21 | 3.14 | 3.28 | 3.21 | 3.21 | 3.21 | 759 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMOGN
RNS Number : 9441R
Origin Enterprises Plc
06 March 2019
Origin Enterprises plc
INTERIM RESULTS STATEMENT
Positive start to trading in first half
6 March 2019
Origin Enterprises plc ('Origin' or 'the Group'), the Agri-Services group, today announces its interim results for the half year ended 31 January 2019.
Highlights
-- Group revenue up 19.5% to EUR701.6 million (H1 2018: EUR586.9 million), driven by increased agronomy services revenue and crop input volumes, increased fertiliser prices and the Fortgreen acquisition in Latin America
-- Positive performance in the first half of the year with operating profit of EUR9.1 million (H1 2018: EUR2.3 million)
-- Good first-time contribution, as guided, from the Fortgreen acquisition in Latin America, with an operating profit of EUR5.5 million
-- Underlying operating profit increase of EUR1.0 million reflecting favourable early season demand in Ireland and the UK
-- Good progress achieved in digital agronomy services enablement. Over 800,000 hectares on-boarded on Contour digital platform by the end of the period
-- Increase in net debt to EUR238.8 million (H1 2018: EUR171.4 million), following acquisition activity and increased investment in working capital
Hot Features
Premium
-- Interim dividend of 3.15 cent per share (H1 2018: 3.15 cent per share)
Results Summary Constant
31 Jan 2019 31 Jan 2018 Change Currency
EUR'000 EUR'000 EUR'000 EUR'000
Group revenue 701,551 586,909 114,642 116,311
Operating profit(1) 9,071 2,263 6,808 6,751
Associates and joint venture(2) 1,809 1,707 102 97
Total Group operating profit(1) 10,880 3,970 6,910 6,848
Finance cost, net (5,881) (4,001) (1,880) (1,886)
Profit/(loss) before tax(1) 4,999 (31) 5,030 4,962
Adjusted diluted earnings
per share (cent)(3) 3.61 0.27 3.34 3.30
Group net debt 238,818 171,378 (67,440)
Interim dividend per ordinary
share (cent) 3.15 3.15 -
(1) Before amortisation of non-ERP intangible assets and exceptional items
(2) Profit after interest and tax
(3) Before amortisation of non-ERP intangible assets, net of related deferred tax (2019: EUR3.4 million, 2018: EUR2.4 million) and exceptional items, net of tax (2019: EUR0.7 million, 2018: EURNil)
Origin Enterprises plc
Commenting on the results, Origin Chief Executive Officer, Tom O'Mahony said:
"Origin has achieved a good first half result, recording an operating profit of EUR9.1 million, up from EUR2.3 million in the first half of 2018. The performance reflects the benefit of favourable early season demand for agronomy services and crop inputs, together with a strong first-time contribution from our Latin American segment. Our investment in Latin America underlines the Group's ambition to pursue meaningful geographical diversification and seasonality balance in attractive growth markets.
Looking ahead, the autumn and winter cropping profile established to date provides a solid foundation for the seasonally more important second half. A full year outlook will be provided at the time of the update on third quarter trading on 19 June 2019."
SCapital Markets Day
Origin will host a capital markets day for analysts and institutional investors in London on Wednesday 8 May 2019. Further information will be circulated in due course.
Conference Call
The results announcement is available on the Company website www.originenterprises.com. There will be a live conference call at 8.30am (Irish/UK time) today. To participate in this conference call, please dial the number below. Participants are requested to dial in 5 to 10 minutes prior to the scheduled start time.
Participant access numbers:
Ireland: Tel: +353 (0)1 431
9615
UK/International: Tel: +44 (0)844 571
8892
Confirmation Code: 1371908
Replay
A replay of this call will be available for seven days.
Replay Access Code: 1371908
Replay Access Numbers:
Dublin: Tel: +353 (0)1 553
8777
UK/International: Tel: +44 (0)844 571
8951
Enquiries
Origin Enterprises plc
Sean Coyle
+353 (0)1 563
Chief Financial Officer Tel: 4959
Brendan Corcoran
Head of Investor Relations
and +353 (0)1 563
Group Planning Tel: 4900
Goodbody (Euronext Growth (Dublin)
Adviser)
+353 (0)1 641
Siobhan Wall Tel: 6019
Davy (Nominated Adviser)
+353 (0)1 614
Anthony Farrell Tel: 9993
Numis Securities (Stockbroker)
+44 (0)20 7260
Stuart Skinner Tel: 1314
Powerscourt (Financial PR Advisers)
Jack Hickey / Eavan Gannon +353 (0)83 448
(Ireland) Tel: 8339
Rob Greening / Jana Tsiligiannis +44 (0)207 250
(UK) Tel: 1446
About Origin Enterprises plc
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, Belgium, Brazil, Poland, Romania and Ukraine. Origin is listed on the Euronext Growth (Dublin) and AIM markets of the Irish and London Stock Exchanges.
Euronext Growth (Dublin) ticker symbol: OIZ AIM ticker symbol: OGN Website: www.originenterprises.com
INTERIM RESULTS STATEMENT
Financial Review - Summary
6 months ended 6 months ended
31 Jan 2019 31 Jan 2018
EUR'000 EUR'000
Group revenue 701,551 586,909
Operating profit(1) 9,071 2,263
Associates and joint venture, net(2) 1,809 1,707
Group operating profit(1) 10,880 3,970
Finance cost, net (5,881) (4,001)
Pre-tax profit/(loss) 4,999 (31)
Income tax (charge)/credit (393) 366
Adjusted net profit 4,606 335
Adjusted diluted earnings per share
(cent)(3) 3.61 0.27
Adjusted net profit reconciliation
Reported net profit/(loss) 441 (2,024)
Amortisation of non-ERP intangible
assets 4,265 2,726
Tax on amortisation of non-ERP related
intangible assets (833) (367)
Exceptional items, net of tax 733 -
Adjusted net profit 4,606 335
Adjusted diluted earnings per share
(cent)(3) 3.61 0.27
Origin delivered adjusted diluted earnings per share(3) for the period of 3.61 cent compared to adjusted diluted earnings per share of 0.27 cent in the corresponding period last year. On a like-for-like basis (excluding the impact of currency movements and acquisitions) the underlying increase was 0.47 cent.
Group revenue
Group revenue was EUR701.6 million compared to EUR586.9 million in the corresponding period last year, an increase of 19.5%. On an underlying basis at constant currency, revenues increased by EUR79.4 million (13.5%), reflecting increased agronomy service revenue and crop input volumes in addition to increased fertiliser prices.
Underlying growth in agronomy services and crop input volumes, excluding crop marketing, was 9.3% in the period compared to the corresponding period last year.
Operating profit(1)
Operating profit(1) from the Agri-Services business was EUR9.1 million compared to a profit of EUR2.3 million in the corresponding period last year. On an underlying basis, at constant currency, the increase year-on-year was EUR1.0 million. Acquisitions contributed EUR5.8 million to operating profit, primarily due to a strong first-time contribution from the Group's Latin American division.
Associates and joint venture(2)
Origin's share of the profit after interest and taxation from associates and joint venture amounted to EUR1.8 million, a 6.0% increase on the prior year.
Net debt and financing costs
The Group's financial position remains strong.
Average net debt amounted to EUR277.1 million compared to EUR222.0 million in the prior year. Net debt at 31 January 2019 was EUR238.8 million compared with EUR171.4 million at 31 January 2018, and is 2.57 times EBITDA(4) for the twelve months to 31 January 2019. The average and period end net debt increase is principally attributable to the acquisition and working capital investment relating to the Brazil-based Fortgreen business, some build up of inventories in our UK businesses as a contingency against the uncertain outcome regarding Brexit and an increased investment in working capital in Continental Europe. Net finance costs amounted to EUR5.9 million compared to EUR4.0 million in the corresponding period last year.
At period end our key banking covenants are as follows:
Banking 2019 2018
Covenant Times Times
Maximum
Net debt to EBITDA 3.5 2.57 2.17
Minimum
EBITDA to net interest 3.0 9.25 11.24
Working capital
Following the seasonal investment in working capital in the period, the net cash outflow from operating activities was EUR134.1 million (H1 2018: EUR97.5 million) and there was an increase of EUR137.5 million in working capital (H1 2018: EUR92.6 million). The year-on-year net working capital outflow reflects planned inventory build in our UK businesses as a contingency against uncertain Brexit outcomes and a short-term increase in working capital investment in Continental Europe primarily driven by the later collection of receivables due to extended logistical bottlenecks impacting the timing of farmer grain sales. Additional factors impacting working capital include the Fortgreen acquisition in Latin America and an overall increase in Group revenue. We expect the increased level of working capital investment to unwind over the coming months.
Dividend
An interim dividend of 3.15 cent per share will be paid on 12 April 2019 to shareholders on the register on 29 March 2019.
(1) Operating profit and Group operating profit are stated before amortisation of non-ERP intangible assets and exceptional items
(2) Profit after interest and tax
(3) Before amortisation of non-ERP intangible assets, net of related deferred tax (2019: EUR3.4 million, 2018: EUR2.4 million) and exceptional items, net of tax (2019: EUR0.7 million, 2018: EURNil)
(4) Net debt/EBITDA ratio as per the requirements of the Group's syndicated bank loan agreement
Review of Operations
Group Overview
Change on prior period
Constant
2019 2018 Change Underlying(4) Currency(5)
EURm EURm EURm EURm EURm
----------------------------------- ----------- ------- --------- ------------------------- -------------
Revenue 701.6 586.9 114.7 79.4 116.3
Operating profit(1) 9.1 2.3 6.8 1.0 6.8
Associates and joint
venture(2) 1.8 1.7 0.1 0.1 0.1
Adjusted diluted EPS
(cent)(3) 3.61 0.27 3.34 0.47 3.30
(1) Before amortisation of non-ERP intangible assets and exceptional
items
(2) Profit after interest and tax
(3) Before amortisation of non-ERP intangible assets, net
of related deferred tax (2019: EUR3.4 million, 2018: EUR2.4
million) and exceptional items, net of tax (2019: EUR0.7 million,
2018: EURNil)
(4) Excluding currency movements and the impact of acquisitions
(5) Excluding currency movements
--------------------------------------------------------------------------------------------------------------
Origin has delivered a strong financial and operating performance in the period with growth in Group revenue, operating profit and adjusted fully diluted earnings per share of EUR114.7 million, EUR6.8 million and 3.34 cent, respectively. Performance in the period benefited from underlying growth in demand for agronomy services and crop inputs together with the impact of acquisitions in the period, contributing EUR5.8 million to operating profit.
Ireland and the United Kingdom
Change on prior period
Constant
2019 2018 Change Underlying(3) Currency(4)
EURm EURm EURm EURm EURm
---------------------------------- ----------- ------- --------- ------------------------- -------------
Revenue 433.9 377.5 56.4 55.5 55.6
Operating profit(1) 2.8 1.2 1.6 1.6 1.6
Associates and joint
venture(2) 1.8 1.7 0.1 0.1 0.1
(1) Before amortisation of non-ERP intangible assets and exceptional
items
(2) Profit after interest and tax
(3) Excluding currency movements and the impact of acquisitions
(4) Excluding currency movements
-------------------------------------------------------------------------------------------------------------
Ireland and the United Kingdom recorded a very satisfactory performance in the seasonally quiet first half.
Higher revenues and margins in the period largely reflected strong performances in Business-to-Business Agri-Inputs. On an underlying basis at constant currency there was a EUR1.6 million increase in operating profit. Underlying agronomy service and crop input volume growth was 12.4% in the period.
In December 2018 the Group acquired a small UK based business, Symbio, which specialises in biological based crop technologies with applications in the Amenity and the broader Integrated Agronomy channels.
Integrated On-Farm Agronomy Services
Integrated Agronomy and On-Farm Services achieved a good performance in the first half supported by higher agronomy service revenues and crop input volumes. An exceptionally mild and largely settled weather pattern for the period supported an extended autumn and winter crop planting season resulting in robust activity levels on-farm. The favourable volume momentum in the period reflected, in part, early procurement planning by growers and farmers due to the current lack of certainty regarding the nature of the UK's departure from the European Union on 29 March 2019.
Total autumn and winter plantings for the principal combinable crops are estimated to be 3.2% above last year at 2.8 million hectares with an increase in the area of winter wheat of 3.7% to 1.83 million hectares, more than offsetting a reduction in the area for oilseed rape by 4.4% to 0.6 million hectares. Total autumn, winter and spring plantings for the 2019 growing season are forecasted to be marginally ahead of last year at 4.5 million hectares.
Digital Agricultural Services
Digital Agricultural Services delivered a strong operational performance in the period, with focus on product adoption and the implementation of extended application functionality covering agile decision support and new crop disease risk models. The roll out of Contour, the Group's proprietary digital platform for agronomists and farmers, continued at pace with over 800,000 hectares on-boarded at the end of the period.
We remain focused on execution and helping farmers and growers realise the practical on-farm benefits of these new data and digitally enabled tools, increasing customer loyalty, and supporting our value-added distribution businesses.
Business-to-Business Agri-Inputs
Business-to-Business Agri-Inputs recorded a good result in the period, with a strong performance from Fertiliser and Feed Ingredients set against a lower underlying contribution from Amenity.
Fertiliser
Fertiliser has performed strongly in the period, recording higher volumes and positive margin development. This performance has largely been driven by a stable pricing environment and favourable weather conditions which have provided confidence to primary producers to secure a portion of their nutrition requirements in advance of the 2019 spring season, resulting in the earlier timing of sales. Volumes for the period have also been positively impacted by the extended 2018 season due to catch up activity on-farm with producers remediating the impact of poor growing conditions in spring and summer 2018. Sales margins continue to be positively supported by growth in sales of differentiated fertiliser and bespoke nutrition applications.
Amenity
Amenity delivered a satisfactory result, despite lower demand, which reflected higher levels of carried forward customer stockholding following unseasonal weather conditions experienced in 2018 which adversely impacted input and service application in that period. Volume development is expected to return to normal levels in the main spring and summer application periods in 2019, however total volumes are expected to be lower for the year as a whole.
Feed Ingredients
Feed Ingredients achieved a good result in the period with performance supported by the continuation of strong spot demand in the first half following poor grass growing conditions in 2018. Demand is expected to normalise in the second half of the financial year against the heightened levels experienced in the prior year.
The Group's animal feed manufacturing associate, John Thompson & Sons Limited, in which the Group has a 50% shareholding, delivered a satisfactory performance in the period.
Continental Europe(1)
Change on prior period
Constant
2019 2018 Change Underlying(3) Currency(4)
EURm EURm EURm EURm EURm
---------------------------------- ----------- ------- --------- ------------------------- -------------
Revenue 147.9 121.6 26.3 12.2 27.6
Operating profit(2) 0.6 0.9 (0.3) (0.7) (0.4)
(1) Excluding crop marketing. While crop marketing has a significant
impact on revenue, its impact on operating profit is insignificant.
An analysis of revenues, profits and margins attributable
to agronomy services and inputs more accurately reflects the
underlying drivers of business performance
(2) Before amortisation of non-ERP intangible assets and exceptional
items
(3) Excluding currency movements and the impact of acquisitions
(4) Excluding currency movements
-------------------------------------------------------------------------------------------------------------
Continental Europe recorded a EUR0.7 million reduction in underlying operating profit at constant currency in the seasonally less significant first half. The performance reflects challenging market conditions and a particularly demanding operating environment for farmers.
Service providers are responding to the effects of the delayed spring season and prolonged dry conditions in 2018 which limited harvest outcomes and early crop establishment in the period. The resulting impacts on primary producer economics and on-farm cash flow drove lower agronomy service and crop input application in the period.
Underlying business volumes reduced by 0.3% compared with the corresponding period last year. Value added technologies maintained good growth momentum throughout the region and continued to generate opportunities for the Group's agronomy portfolios.
Belgium
Belgium delivered a very satisfactory performance in the period, supported by favourable volume and margin development. Positive on-farm sentiment drove robust early season demand together with favourable momentum in the case of differentiated and bespoke nutrition applications.
Poland
Unseasonably dry weather impacted volumes in Poland for the period resulting in lower underlying agronomy service and crop input volumes. Early season demand was impacted by a reduction in oilseed rape crop plantings, with the lower oilseed rape area being offset by an increase in later sown winter cereal varieties. Autumn and winter plantings are estimated to be approximately 1.9% higher than the prior year at 4.7 million hectares. Spring plantings are forecast to be broadly in line with last year resulting in an increase in the total cropping area for the 2019 season of 0.9% to 8.2 million hectares.
Romania
Romania delivered a satisfactory result in the period in challenging market conditions. Sustained dry conditions during the early autumn have hampered oilseed and cereal crop establishment resulting in lower agronomy service and input demand in the period. Total autumn and winter crop plantings are forecast at 2.5 million hectares compared with 3.1 million hectares last year.
The reduction in autumn and winter plantings is expected to be largely offset by an increase in spring cropping, resulting in combined winter and spring plantings for the 2019 growing season as a whole estimated to be 1.5% behind last year at 8.1 million hectares.
Ukraine
Ukraine recorded lower margins on higher underlying revenues in the period with service providers responding to a more competitive market backdrop. The period was characterised by lower liquidity at primary producer level due to logistical bottlenecks which have impacted the timing of the grain movement off-farm.
Growing conditions in the period were excellent with total autumn and winter crop plantings estimated to be 6.4% ahead of the comparative period at 8.3 million hectares. Total crop plantings for the 2019 growing season are currently forecast at 22.9 million hectares against 22.7 million hectares for the prior year.
Latin America
Change on prior period
Constant
2019 2018 Change Underlying(2) Currency(3)
EURm EURm EURm EURm EURm
---------------------------- ---------- ------- ----------- ---------------- -------------
Revenue 21.3 - 21.3 - 21.3
Operating profit(1) 5.5 - 5.5 - 5.5
(1) Before amortisation of non-ERP intangible
assets and exceptional items
(2) Excluding currency movements and
the impact of acquisitions
(3) Excluding currency movements
-------------------------------------------------------------- ---------------- -------------
Origin entered the Latin American market in August 2018 through the acquisition of Fortgreen, a business which is focused on the development and marketing of value added crop nutrition and speciality inputs and which is headquartered in Paraná State in southern Brazil.
Latin America has delivered an excellent first-time contribution in the period. Integration is progressing to plan, with performance in line with pre-acquisition expectations. A strong innovation pipeline supported good growth in speciality soluble nutrition technologies for grain and speciality crop applications.
The harvest period for Brazil's principal spring crop, Soya, is progressing well with circa 51% of Paraná's planted area harvested with some localised damage to the crops following a period of dry weather in December and January.
The acquisition of a 20% shareholding in the Brazilian business Ferrari Zagatto E Cia. Ltda., announced in the prior financial year, is expected to complete in the second half of the current financial year.
Brexit
The Group continues to monitor Brexit negotiations and ensure that appropriate planning for a no-deal Brexit is in place.
Additional storage was secured over the winter period as we come into the traditional peak season and additional inventory has been secured both on an owned and consigned / contract storage basis. As a result we believe that we are well prepared for any short-term logistical disruption that may result from a no-deal Brexit. However, the Board and senior management will continue to closely monitor the situation and adjust the Group's strategic plans as necessary.
Outlook
Looking ahead, the autumn and winter cropping profile established to date provides a solid foundation for the seasonally more important second half. A full year outlook will be provided at the time of the announcement of the third quarter trading update on 19 June 2019.
SOrigin Enterprises plc
Condensed Interim Consolidated Income Statement
for the six months ended 31 January 2019
Six months Six months Six months Six months Year
ended ended ended ended ended
January January January January July
2019 2019 2019 2018 2018
Pre-exceptional Exceptional Total Total Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Notes Note 5
Revenue 3 701,551 - 701,551 586,909 1,627,533
Cost of sales (612,346) - (612,346) (511,273) (1,389,926)
Gross profit 89,205 - 89,205 75,636 237,607
Operating costs (84,399) (733) (85,132) (76,099) (171,409)
Share of profit of associates and
joint venture 1,809 - 1,809 1,707 7,221
Operating profit 3 6,615 (733) 5,882 1,244 73,419
Finance income 416 - 416 602 1,432
Finance expense (6,297) - (6,297) (4,603) (9,514)
Profit/(loss) before income
tax 734 (733) 1 (2,757) 65,337
Income tax credit/(expense) 440 - 440 733 (8,552)
Profit/(loss) attributable to equity
shareholders 1,174 (733) 441 (2,024) 56,785
Six months Six months Year
ended ended ended
January January July
2019 2018 2018
Basic earnings/(loss) per
share 4 0.35c (1.61c) 45.22c
Diluted earnings/(loss) per
share 4 0.35c (1.61c) 44.94c
Origin Enterprises plc
Condensed Interim Consolidated Statement of Comprehensive Income
for the six months ended 31 January 2019
Six months Six Year
months
ended ended ended
January January July
2019 2018 2018
EUR'000 EUR'000 EUR'000
Profit/(loss)for the period 441 (2,024) 56,785
Other comprehensive (expense)/income
Items that are not reclassified subsequently to the Group income statement:
Group/Associate defined benefit pension obligations
- remeasurements of Group's defined benefit pension schemes (4,753) 2,205 3,628
- deferred tax effect of remeasurements 800 (365) (504)
- share of remeasurements on associate's defined benefit pension schemes - - 5,865
- share of deferred tax effect of remeasurements - associates - - (997)
Items that may be reclassified subsequently to the Group income statement:
Group foreign exchange translation details
- exchange difference on translation of foreign operations 2,784 (948) (1,243)
Group/Associate cash flow hedges
* effective portion of changes in fair value of cash
flow hedges (80) (3,243) 1,396
* fair value of cash flow hedges transferred to
operating costs (2,708) 760 888
- deferred tax effect of cash flow hedges 462 436 (333)
* share of associates and joint venture cash flow
hedges (902) (1,879) 4,827
- deferred tax effect of share of associates and joint venture cash flow
hedges 113 235 (603)
Other comprehensive expense for the period, net of tax (4,284) (2,799) 12,924
Total comprehensive (expense)/income for the period attributable to equity
shareholders (3,843) (4,823) 69,709
============ ========= ========
Origin Enterprises plc
Condensed Interim Consolidated Statement of Financial Position
as at 31 January 2019
January January July
2019 2018 2018
Notes EUR'000 EUR'000 EUR'000
ASSETS
Non-current assets
Property, plant and equipment 6 124,717 117,418 117,929
Investment properties 11,825 9,675 11,825
Goodwill and intangible assets 7 285,310 215,746 216,334
Investments in associates and joint venture 8 42,867 32,269 48,171
Other financial assets 562 456 450
Derivative financial instruments 608 986 835
Deferred tax assets 5,085 4,663 3,280
Post employment benefit obligations - - 725
Total non-current assets 470,974 381,213 399,549
Current assets
Inventory 243,488 221,046 194,192
Trade and other receivables 301,315 229,960 461,199
Derivative financial instruments 1,051 122 1,399
Restricted cash - - 500
Cash and cash equivalents 84,892 85,869 147,212
Total current assets 630,746 536,997 804,502
TOTAL ASSETS 1,101,720 918,210 1,204,051
Origin Enterprises plc
Condensed Interim Consolidated Statement of Financial Position (continued)
as at 31 January 2019
January January July
2019 2018 2018
Notes EUR'000 EUR'000 EUR'000
EQUITY
Called up share capital presented as equity 11 1,264 1,264 1,264
Share premium 160,422 160,422 160,422
Retained earnings and other reserves 142,363 97,855 168,561
---------- -------- ----------
TOTAL EQUITY 304,049 259,541 330,247
LIABILITIES
Non-current liabilities
Interest-bearing borrowings 281,981 242,131 165,232
Deferred tax liabilities 29,829 18,272 22,171
Put option liability 27,097 5,516 5,531
Provision for liabilities 9 3,999 8,261 8,045
Post employment benefit obligations 3,694 813 -
Derivative financial instruments 197 - 46
Total non-current liabilities 346,797 274,993 201,025
Current liabilities
Interest-bearing borrowings 41,729 15,116 20,836
Put option liability 5,771 - -
Trade and other payables 383,663 353,028 638,161
Corporation tax payable 4,200 7,657 8,143
Provision for liabilities 9 13,642 4,130 5,467
Derivative financial instruments 1,869 3,745 172
Total current liabilities 450,874 383,676 672,779
TOTAL LIABILITIES 797,671 658,669 873,804
TOTAL EQUITY AND LIABILITIES 1,101,720 918,210 1,204,051
Origin Enterprises plc
Condensed Interim Consolidated Statement of Changes in Equity
for the six months ended 31 January 2019
Share- Foreign
Capital Cashflow based Re- currency
Share Share Treasury redemption hedge Revaluation payment organisation translation Retained
capital premium shares reserve reserve reserve reserve reserve reserve earnings Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
At 1 August
2018 1,264 160,422 (8) 134 3,510 12,843 538 (196,884) (39,319) 387,747 330,247
Profit for the
period - - - - - - - - - 441 441
Other
comprehensive
expense for
the period - - - - (3,115) - - - 2,784 (3,953) (4,284)
Share-based
payment
charge - - - - - - 90 - - - 90
Dividend paid
to
shareholders
(Note 13) - - - - - - - - - (22,445) (22,445)
At 31 January
2019 1,264 160,422 (8) 134 395 12,843 628 (196,884) (36,535) 361,790 304,049
Origin Enterprises plc
Condensed Interim Consolidated Statement of Changes in Equity
for the six months ended 31 January 2018
Share- Foreign
Capital Cashflow based Re- currency
Share Share Treasury redemption hedge Revaluation payment organisation translation Retained
capital premium shares reserve reserve reserve reserve reserve reserve earnings Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
At 1 August
2017 1,264 160,422 (8) 134 (2,665) 12,843 358 (196,884) (38,076) 349,341 286,729
Loss for the
period - - - - - - - - - (2,024) (2,024)
Other
comprehensive
expense for
the period - - - - (3,691) - - - (948) 1,840 (2,799)
Share-based
payment
charge - - - - - - 80 - - - 80
Dividend paid
to
shareholders - - - - - - - - - (22,445) (22,445)
At 31 January
2018 1,264 160,422 (8) 134 (6,356) 12,843 438 (196,884) (39,024) 326,712 259,541
Origin Enterprises plc
Condensed Interim Consolidated Statement of Cash Flows
for the six months ended 31 January 2019
Six months Six Year
months
ended ended ended
January 2019 January 2018 July
2018
EUR'000 EUR'000 EUR'000
Cash flows from operating activities
Profit/(loss)before tax 1 (2,757) 65,337
Exceptional items 733 - (663)
Finance income (416) (602) (1,432)
Finance expense 6,297 4,603 9,514
Profit on disposal of property, plant and equipment (156) (128) (285)
Share of profit of associates and joint venture (1,809) (1,707) (7,221)
Depreciation of property, plant and equipment 3,845 3,498 7,451
Amortisation of intangible assets 5,476 3,972 7,946
Employee share-based payment charge 90 80 180
Pension contributions in excess of service costs (462) (691) (852)
Payment of exceptional rationalisaton costs (829) (2,943) (3,334)
Payment of exceptional acquisition costs (358) (1,443) (3,688)
Operating cash flow before changes in working capital 12,412 1,882 72,953
Increase in inventory (40,746) (60,830) (28,505)
Decrease in trade and other receivables 176,595 113,500 (58,469)
Decrease in trade and other payables (273,359) (145,253) 87,713
Cash (absorbed)/generated from operating activities (125,098) (90,701) 73,692
Interest paid (4,564) (2,698) (6,927)
Income tax paid (4,449) (4,073) (10,428)
Cash (outflow)/inflow from operating activities (134,111) (97,472) 56,337
Origin Enterprises plc
Condensed Interim Consolidated Statement of Cash Flows (continued)
for the six months ended 31 January 2019
Six months Six Year
months
ended ended ended
January 2019 January 2018 July
2018
EUR'000 EUR'000 EUR'000
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 440 1,091 1,410
Purchase of property, plant and equipment (7,223) (6,373) (11,602)
Additions to intangible assets (1,717) (1,505) (5,645)
Arising on acquisitions (33,239) (16,164) (23,857)
Proceeds from sale of Chemical division - 5,250 5,250
Payment of contingent acquisition consideration (1,091) (704) (1,627)
Restricted cash 500 - (500)
Loan (advance)/repayment with associate (98) 84 85
Dividends received from associates 6,909 2,351 2,483
Cash outflow from investing activities (35,519) (15,970) (34,003)
Cash flows from financing activities
Drawdown of bank loans 180,557 86,132 141,775
Repayment of bank loans (45,000) (25,893) (158,155)
Payment of dividends to equity shareholders (Note 13) (22,445) (22,445) (26,371)
Cash inflow/(outflow) from financing activities 113,112 37,794 (42,751)
Net decrease in cash and cash equivalents (56,518) (75,648) (20,417)
Translation adjustment 1,233 141 261
Cash and cash equivalents at start of period 126,559 146,715 146,715
Cash and cash equivalents at end of period (Note 10) 71,274 71,208 126,559
Origin Enterprises plc
Notes to the Condensed Interim Consolidated Financial Statements
for the six months ended 31 January 2019
1 Basis of preparation
The Group condensed interim consolidated financial statements has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting (IAS 34), as endorsed by the EU. The condensed interim consolidated financial statements have been prepared as information for the shareholders and do not include all the information and disclosures required in the annual financial statements. They should be read in conjunction with the Group's annual financial statements in respect of the year ended 31 July 2018, which have been prepared in accordance with IFRSs. The financial statements for the year ended 31 July 2018 are available on the company's website www.originenterprises.com. Those financial statements contained an unqualified audit report.
The Group condensed interim consolidated financial statements for the six months ended 31 January 2019 and the comparative figures for the six months ended 31 January 2018 are unaudited and have not been reviewed by the Auditors. The summary financial statements for the year ended 31 July 2018 represents an abbreviated version of the Group's full accounts for that year.
The Group condensed interim consolidated financial statements are presented in euro and rounded to the nearest thousand, which is the functional currency of the parent.
A comprehensive review of the Group's performance for the six months ended 31 January 2019 is included in the financial highlights section included on pages 5 to 13. The group's business is seasonal and is heavily weighted towards the second half of the financial year.
2 Accounting policies
The Group interim financial statements have been prepared on the basis of the accounting policies as set out on pages 90 to 97 of the Group's Annual Report for the year ended 31 July 2018, with the exception of the new accounting standards outlined below.
The following Standards and Interpretations are effective for the Group in the current financial period but do not have a material effect on the results or financial position of the Group:
IFRS 9 Financial Instruments
The Group has adopted IFRS 9 Financial Instruments ("IFRS 9"), which replaces the existing guidance in IAS 39 Financial Instruments: Recognition and Measurement, from 1 August 2018. Under IFRS 9, on initial recognition, a financial asset is classified as measured at amortised cost or fair value through other comprehensive income ("FVTOCI"), or fair value through profit or loss ("FVTPL"). This classification is dependent on the business model for managing the financial assets and on whether the cash flows represent solely the payment of principal and interest. The Group has quantified the impact on its consolidated financial statements resulting from the application of IFRS 9. The vast majority of financial assets held by the Group are trade receivables and cash.
Trade receivables and cash will continue to be accounted for at amortised cost. IFRS 9 introduces a forward looking expected credit losses model, rather than the current incurred loss model, when assessing the impairment of financial assets in the scope of IFRS 9. Given historic loss rates and normal receivable ageing, the move from an incurred loss model to an expected loss model has not had a material impact.
On this basis, the classification and measurement changes do not have a material impact on the Group's consolidated financial statements. The impact of adopting IFRS 9 on the consolidated financial statements was not material for the Group and there was no adjustment to retained earnings on application at 1 August 2018. In line with the transition guidance in IFRS 9 the Group has not restated the 2018 prior year / half year results on adoption.
IFRS 15 Revenue from Contracts with Customers
The Group has adopted IFRS 15 Revenue from Contracts with Customers ("IFRS 15"), which replaces the existing guidance in IAS 18 Revenue, from 1 August 2018. The core principle of IFRS 15 is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under IFRS 15, an entity recognises revenue when (or as) a performance obligation is satisfied i.e. when 'control' of the goods or services underlying the particular performance obligation is transferred to the customer. At the date of adoption, the Group assessed the impact on its consolidated financial statements resulting from the application of IFRS 15.
The vast majority of the Group's revenue is attributable to (1) Agri-Inputs operations, (2) Agronomy and On-Farm Services operations and (3) Digital Agricultural Services. Legal title of goods sold is transferred on agreed contracted terms between parties, and generally, there is one performance obligation in each of the Group's sale contracts. Based on the Group's contractual and trading relationships, the impact of adopting IFRS 15 on the consolidated financial statements was not material for the Group and there was no adjustment to retained earnings on application at 1 August 2018. The Group has not restated the 2018 prior year / half year results on adoption.
The Group has not applied early adoption of any standards for which the effective date is not yet required.
On a prospective basis, for all new liabilities recognised in respect of shares held by non-controlling shareholders, all movements in the fair value of such options will be recognised in retained earnings.
IFRS 16 Leases
The Group's evaluation of the effect of adoption of IFRS 16, 'Leases' is ongoing. The Group expects that the adoption of IFRS 16 will have a material impact on the financial statements, significantly increasing the Group's recognised assets and liabilities. The fair values of these leases are currently being evaluated. As a result of the transition to IFRS 16, the fair value of these leases representing the present value of the lease payments over the expected lease contract period will be recognised as a Right of Use Asset with a corresponding value recognised as a lease liability. This standard will be effective for and will be adopted by the Group for the 2020 financial year beginning 1 August 2019.
3 Segment information
IFRS 8, 'Operating Segments', requires operating segments to be identified on the basis of internal reports that are regularly reviewed by the Chief Operating Decision Maker ('CODM') in order to allocate resources to the segments and to assess their performance. Three operating segments have been identified: (1) Ireland and the United Kingdom, (2) Continental Europe and (3) Latin America.
Ireland and the United Kingdom
This segment includes the Group's wholly owned Irish and UK based Business-to-Business Agri-Inputs operations, Integrated Agronomy and On-Farm Services operations and Digital Agricultural Services business. In addition, this segment includes the Group's Associate and joint venture undertakings.
Continental Europe
This segment includes the Group's Business-to-Business Agri-Inputs operations, Integrated Agronomy and On-Farm Services operations in Belgium, Poland, Romania and Ukraine.
Latin America
This segment includes the Group's 65 per cent controlling interest in the Brazilian based speciality nutrition and crop inputs business, Fortgreen Commercial Agricola Ltda.
Information regarding the results of each reportable segment is included below. Performance is measured based on segment operating profit as included in the internal management reports that are reviewed by the Group's CODM, being the Origin Executive Directors. Segment operating profit is used to measure performance, as this information is the most relevant in evaluating the results of the Group's segments.
(i) Segment Ireland and UK Continental Europe Latin America Total Group
revenue and
result
Six Six Six Six Six Six Six Six
months months months months months months months months
ended ended ended ended ended ended ended ended
Jan 2019 Jan 2018 Jan Jan 2018 Jan Jan Jan 2019 Jan 2018
2019 2019 2018
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Total revenue 644,207 534,864 246,318 209,418 21,312 - 911,837 744,282
Less revenue
from
associates
and joint
venture (210,286) (157,373) - - - - (210,286) (157,373)
---------- ---------- -------- --------- -------- -------- ---------- ----------
Revenue 433,921 377,491 246,318 209,418 21,312 - 701,551 586,909
========== ========== ======== ========= ======== ======== ========== ==========
Segment result 2,827 1,220 793 1,043 5,451 - 9,071 2,263
Profit from
associates
and
joint venture 1,809 1,707 - - - - 1,809 1,707
Amortisation
of non-ERP
intangible
assets (2,119) (1,876) (915) (850) (1,231) - (4,265) (2,726)
---------- ---------- -------- --------- -------- -------- ---------- ----------
Operating
profit/(loss)
before
exceptional
items 2,517 1,051 (122) 193 4,220 - 6,615 1,244
Exceptional
items (437) - - (253) - (43) - (733) -
---------- ---------- -------- --------- -------- -------- ---------- ----------
Operating
profit /
(loss) 2,080 1,051 (375) 193 4,177 - 5,882 1,244
========== ========== ======== ========= ======== ======== ========== ==========
Segment
earnings
before
financing
and tax 5,882 1,244
Finance income 416 602
Finance
expense (6,297) (4,603)
---------- ----------
Reported
profit/(loss)
before
tax 1 (2,757)
Income tax
credit 440 733
---------- ----------
Reported
profit/(loss)
after
tax 441 (2,024)
========== ==========
(ii) Segment Ireland & UK Continental Europe Latin America Total
assets Group
Six Six Six Six Six Six Six Six
months months months months months months months months
ended ended ended ended ended ended ended ended
Jan Jan Jan Jan 2018 Jan Jan Jan 2019 Jan
2019 2018 2019 2019 2018 2018
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Assets excluding
investment
in associates
and joint
venture 555,627 543,842 322,915 250,003 88,113 - 966,655 793,845
Investment in
associates
and joint
venture
(including other
financial
assets) 43,429 32,725 - - - - 43,429 32,725
------- ------- ------- -------- ------- ------- --------- -------
Segment assets 599,056 576,567 322,915 250,003 88,113 - 1,010,084 826,570
======= ======= ======= ======== ======= ======= ========= =======
Reconciliation to total assets as reported in Condensed Interim Consolidated
Statement of Financial Position
Cash and cash
equivalents 84,892 85,869
Derivative
financial
instruments 1,659 1,108
Deferred tax
assets 5,085 4,663
--------- -------
Total assets as reported in Condensed Interim Consolidated Statement of
Financial
Position 1,101,720 918,210
========= =======
(iii) Segment Ireland & UK Continental Europe Latin America Total Group
liabilities
Six Six Six Six Six Six Six Six
months months months months months months months months
ended ended ended ended ended ended ended ended
Jan Jan Jan Jan 2018 Jan Jan Jan 2019 Jan
2019 2018 2019 2019 2018 2018
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Segment
liabilities 264,728 259,920 126,360 111,828 46,778 - 437,866 371,748
======= ======= ======= ======== ======= ======= ========= =======
Reconciliation of total liabilities as reported in Condensed Interim
Consolidated
Statement of Financial Position
Interest-bearing
loans and
liabilities 323,710 257,247
Derivative
financial
instruments 2,066 3,745
Current and
deferred tax
liabilities 34,029 25,929
---------
Total liabilities as reported in Condensed Interim Consolidated Statement
of Financial Position 797,671 658,669
========= =======
4 Earnings/(loss) per share
Basic earnings/(loss) per share
Six months Six months
ended ended
January January
2019 2018
EUR'000 EUR'000
Profit/(loss) for the financial period attributable to equity shareholders 441 (2,024)
========== ==========
'000 '000
Weighted average number of ordinary shares for the period 125,582 125,582
========== ==========
Cent Cent
Basic earnings/(loss)per share 0.35 (1.61)
========== ==========
Diluted earnings/(loss) per share Six months Six months
ended ended
January January
2019 2018
EUR'000 EUR'000
Profit/(loss) for the financial period attributable to equity shareholders 441 (2,024)
========== ==========
'000 '000
Weighted average number of ordinary shares used in basic calculation 125,582 125,582
Impact of shares with dilutive effect 1,108 77
Impact of SAYE scheme 726 531
---------- ----------
Weighted average number of ordinary shares (diluted) for the period 127,416 126,190
========== ==========
Cent Cent
Diluted earnings/(loss) per share 0.35 (1.61)
========== ==========
Adjusted basic earnings per share Six months Six months
ended ended
January January
2019 2018
EUR'000 EUR'000
Profit/(loss) for the financial period attributable to equity shareholders 441 (2,024)
Amortisation of non-ERP related intangible assets 4,265 2,726
Tax on amortisation of non-ERP related intangible assets (833) (367)
Exceptional items, net of tax 733 -
---------- ----------
Adjusted basic earnings 4,606 335
========== ==========
Cent Cent
Adjusted basic earnings per share 3.67 0.27
Total adjusted basic earnings - as above 4,606 335
Cent Cent
Total adjusted diluted earnings per share 3.61 0.27
========== ==========
The calculation of basic adjusted earnings per share is based on the weighted average number of shares in issue during the period of 125,581,696 (31 January 2018: 125,581,696). The weighted average number of shares used in the calculation of adjusted diluted earnings/(loss) per share is 127,416,250 (31 January 2018: 126,190,275).
5 Condensed Interim Consolidated Income Statements for the six months ended 31 January 2018 and year ended 31 July 2018
An analysis of the Condensed Interim Consolidated Income Statement (including exceptional items) for the six months ended 31 January 2018 and year ended 31 July 2018 is set out below.
Six months ended 31 January 2018
Six months Six months Six months
ended ended ended
Jan 2018 Jan 2018 Jan 2018
Pre-Exceptional Exceptional Total
EUR'000 EUR'000 EUR'000
Revenue 586,909 - 586,909
Cost of sales (511,273) - (511,273)
---------------- ------------ ------------
Gross profit 75,636 - 75,636
Operating costs (76,099) - (76,099)
Share of profit of associates and joint venture 1,707 - 1,707
---------------- ------------ ------------
Operating profit 1,244 - 1,244
Finance income 602 - 602
Finance expense (4,603) - (4,603)
---------------- ------------ ------------
Loss before income tax (2,757) - (2,757)
Income tax credit 733 - 733
---------------- ------------ ------------
Loss for the period (2,024) - (2,024)
================ ============ ============
Year ended 31 July 2018
Year ended Year ended Year ended
Jul 2018 Jul 2018 Jul 2018
Pre-Exceptional Exceptional Total
EUR'000 EUR'000 EUR'000
ended ended ended
Revenue 1,627,533 - 1,627,533
Cost of sales (1,389,926) - (1,389,926)
---------------- ------------ ------------
Gross profit 237,607 - 237,607
Operating costs (172,072) 663 (171,409)
Share of profit of associates and joint venture 7,221 - 7,221
---------------- ------------ ------------
Operating profit 72,756 663 73,419
Finance income 1,432 - 1,432
Finance expense (9,514) - (9,514)
---------------- ------------ ------------
Profit before income tax 64,674 663 65,337
Income tax expense (7,900) (652) (8,552)
---------------- ------------ ------------
Profit for the year 56,774 11 56,785
================ ============ ============
6 Property, plant and equipment
January July
2019 2018
EUR'000 EUR'000
Net book value
At beginning of period 117,929 105,271
Arising on acquisitions (Note 12) 2,512 10,087
Additions 7,390 11,628
Disposals (283) (1,571)
Depreciation charge (3,845) (7,451)
Translation adjustments 1,014 (35)
At end of period 124,717 117,929
7 Goodwill and intangible assets
January July
2019 2018
EUR'000 EUR'000
Net book value
At beginning of period 216,334 205,961
Arising on acquisitions (Note 12) 67,973 11,997
Additions 1,621 5,645
Amortisation of non-ERP intangible assets (4,265) (5,655)
ERP intangible amortisation (1,211) (2,291)
Translation adjustments 4,858 677
At end of period 285,310 216,334
Included in the total goodwill and intangible assets above is goodwill of EUR183,704,000 (July 2018: EUR138,112,000). There have been no indicators of impairment in the first half of the year therefore a full assessment of the carrying value of goodwill and intangibles will be carried out in the second half of the year.
8 Investments in associates and joint venture
January
July
2019 2018
EUR'000 EUR'000
At beginning of period 48,171 34,206
Share of profits after tax 1,809 7,221
Dividends received (6,909) (2,483)
Share of other comprehensive expense (789) 9,092
Translation adjustments 585 135
At end of period 42,867 48,171
9 Provision for liabilities
The estimate of provisions is a key judgement in the preparation of the Interim condensed financial statements.
January July
2019 2018
EUR'000 EUR'000
At beginning of period 13,512 15,464
Arising on acquisition (Note 12) 6,755 2,995
Provided in period 121 2,007
Paid in period (2,258) (4,964)
Released in period (850) (2,137)
Translation adjustments 361 147
At end of period 17,641 13,512
Provisions for liabilities relate to various operating and employment related costs and contingent acquisition consideration that arose on various acquisitions.
10 Analysis of net debt
31 July Cash Arising on Non-cash Translation 31 January
2018 flow acquisition movements adjustment 2019
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Cash 147,212 (66,744) 3,470 - 954 84,892
Overdraft (20,653) 6,756 - - 279 (13,618)
Cash and cash equivalents 126,559 (59,988) 3,470 - 1,233 71,274
Finance lease obligations (862) (354) - - (3) (1,219)
Loans (164,553) (135,203) (8,177) (339) (601) (308,873)
Net debt (38,856) (195,545) (4,707) (339) 629 (238,818)
Restricted cash 500 (500) - - - -
Net debt including
restricted cash (38,356) (196,045) (4,707) (339) 629 (238,818)
The loans included above are unsecured and the facility extends to May 2022.
11 Share capital
January July
2019 2018
EUR'000 EUR'000
Authorised
250,000,000 ordinary shares of EUR0.01 each (i) 2,500 2,500
Allotted, called up and fully paid
126,382,206 ordinary shares of EUR0.01 each (i) 1,264 1,264
(i) Ordinary shareholders are entitled to dividends as declared and each ordinary share carries equal voting rights at meetings of the Company.
12 Acquisition of subsidiary undertakings
During the period, the Group completed the acquisition of Fortgreen Commercial Agricola Ltda ('Fortgreen') in Brazil and the acquisition of Symbio Group ('Symbio') in the United Kingdom. These acquisitions complement the Group's prescription fertilisers and speciality nutrition business.
Details of the acquisitions are as follows:
(i) On 14 August 2018 the Group acquired a 65 per cent controlling interest in the Brazilian based speciality nutrition and crop inputs business, Fortgreen Commercial Agricola Ltda.
(ii) On 20 November 2018 the Group completed the acquisition of 100 per cent of Eco Solutions (C & R) Limited trading as Symbio. Based in the United Kingdom, Symbio specialises in biological based crop technologies.
Details of the net assets acquired and provisional goodwill arising from the business combinations are as follows:
Fair
value
Assets EUR'000
Non-current
Property, plant and equipment 2,512
Intangible assets 25,561
Total non-current assets 28,073
Current assets
Inventory 6,078
Trade and other receivables 16,221
Corporation tax asset 123
Total current assets 22,422
Liabilities
Trade and other payables (10,354)
Deferred tax liability (7,949)
Total liabilities (18,303)
Total identifiable net assets at fair value 32,192
Goodwill arising on acquisition 42,412
Total net assets acquired (excluding debt acquired) 74,604
Consideration satisfied by: Cash consideration 36,709 Cash acquired (3,470) Net cash outflow 33,239 Contingent consideration 6,755 Put option 26,433 Consideration 66,427 Debt acquired 8,177 Total consideration plus debt acquired 74,604
The goodwill recognised on acquisition is attributable to the skills and technical talent of the acquired business's workforce, and the synergies expected to be achieved from integrating the company into the Group's existing business.
Origin acquired a 65 per cent interest in Fortgreen for cash consideration on 14 August 2018. The Group have also entered into an arrangement with the minority shareholder, under which the minority shareholder has the right at various dates to sell the remaining 35 per cent interest to Origin based on an agreed formula. In the event that this is not exercised, Origin has a similar right to acquire the 35 per cent interest. Origin has recognised an option liability of EUR26.4 million which is the fair value of the future estimated amount payable to exercise the option. This has been determined based on an agreed formula which includes an expectation of future trading performance and timing of when the options are expected to be exercised, discounted to present day value.
Origin has elected to apply the anticipated acquisition method in accounting for the option whereby the non-controlling interest is not recognised but rather treated as already acquired by Origin both in the Consolidated Statement of Financial Position and the Consolidated Statement of Comprehensive Income. This treatment has been adopted as the Directors have formed the view that based on the structure and timing of the option contracts sufficient risks and rewards are deemed to have transferred to Origin. Profits and losses attributable to the minority shareholder in respect of their 35 per cent interest will be presented as attributable to the equity shareholders of Origin and not as attributable to minority interests. The EUR26.4 million financial liability recognised by the Group forms part of the contingent consideration for the acquisition. For all new liabilities recognised in respect of shares held by non-controlling shareholders, all movements in the fair value of such options will be recognised in retained earnings.
Post-acquisition revenues and operating profit relating to the current year acquisitions amounted to EUR21.5 million and EUR5.8 million. If the acquisitions had occurred on 1 August 2018, management estimates total consolidated revenue would have been EUR704.3 million and consolidated operating profit for the six-month period would have been EUR9.4 million. In determining these amounts management has assumed that the fair value adjustments that arose on the dates of acquisition would have been the same if the acquisition occurred on 1 August 2018.
13 Dividends
On 15 December 2018 a final dividend of 17.85 cent per ordinary share was paid in respect of the year ended 31 July 2018 which when combined with the interim dividend of 3.15 cent per ordinary share brings the total dividend for the year ended 31 July 2018 to 21 cent per ordinary share.
An interim dividend of 3.15 cent (2018: 3.15 cent) per ordinary share will be paid on 12 April 2019 to shareholders on the register on 29 March 2019. These condensed interim consolidated financial statements do not reflect this dividend payable.
14 Taxation
The taxation credit for the interim period is an estimate based on the expected full year effective tax rate on full year profits.
15 Contingent liabilities
The Group is not aware of any major changes with regard to contingent liabilities in comparison with the situation as of 31 July 2018.
16 Financial commitments
The Group has a financial commitment of EUR7.4 million attributable to a strategic partnership with University College Dublin ('UCD'). The commitment is over a four year period.
17 Related party transactions
Related party transactions occurring in the period were similar in nature to those described in the 2018 Annual Report.
18 Release of half yearly condensed interim consolidated financial statements
The Group condensed interim consolidated financial information was approved for release by the Board on 5 March 2019.
19 Distribution of Interim Report
This interim report is available on the Group's website (www.originenterprises.com). A printed copy is available to the public at the Company's registered office.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR LLFEDVVIEIIA
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