-
DONEGAL INVESTMENT GROUP PLC
ANNOUNCEMENT OF RESULTS FOR THE 6 MONTHS ENDED 29 FEBRUARY 2024
25 April 2024
Donegal Investment Group plc ('DIG') ('Company') ('Group') reports its interim results for the 6 months ended 29 February 2024.
FINANCIAL PERFORMANCE
· The Group's seed potato business delivered a satisfactory trading performance for the period ended 29 February 2024. Revenue increased by 7% (€1.6m) to €23.0m - with lower seed potato yields across Europe resulting in strong demand and pricing. The business delivered an operating profit €1.8m, a decrease of €0.2m on the prior period.
· High levels of seasonal working capital have resulted in the group being €2.0m in overdraft at period end. It should also be noted that €2.5m in surplus cash was invested on 5 October 2023 in highly liquid Zero-Coupon German Bond which will mature on 15 June 2024.
|
| | 6 months ended 29 February 2024 | 6 months ended 28 February 2023 |
Change |
| Continuing operations - pre exceptional | | | | |
| Revenue | €'000 | 23,024 | 21,436 | +€1.6m |
| Operating profit | €'000 | 1,814 | 1,970 | -€0.2m |
| Profit before tax | €'000 | 1,885 | 1,708 | +€0.2m |
| Profit after tax | €'000 | 1,606 | 1,507 | +€0.1m |
| Cash at bank (net of overdraft) | €'000 | (2,000) | (3,268) | +€1.3m |
| Net cash/(debt) | €'000 | (2,756) | (3,952) | +€1.2m |
| Other Investments | €'000 | 3,236 | 737 | +€2.5m |
| Investment property carrying value | €'000 | 540 | 595 | -€0.1m |
| Net asset value per share* | €'000 | €11.73 | €10.68 | +€1.05 |
*Net assets are total equity attributable to equity holders of the Company
Enquiries:
| Investors & Analysts Padraic Lenehan Director Donegal Investment Group Plc Tel: 074 9121766 Email: plenehan@donegaligroup.com
Anthony Farrell Davy Corporate Finance Tel: + 353 1 679 6363 Email: anthony.farrell@davy.ie |
H1 2022/23 Performance Review
The Board is pleased with the trading performance of our seed potato business in the first six months of the year. Volumes sold were significantly impacted by the very poor harvest across Europe in the fall of 2023. However market shortages were offset by higher prices achieved, which resulted in a small decrease in profitability.
The business delivered a Profit after Tax of €1.6m, an increase of €0.1m on the prior period. As advised, we are at a high point in the working capital cycle of our seed potato business. We are pleased to note that shortages in the availability of hard currencies experienced by customers last season which delayed payments has not reoccurred.
Net asset value per share increased 9.8% to €11.73.
Outlook
The Board has noted the poor weather conditions which have delayed the planting of this years' potato crop around Europe. However, our available stock has in the main been sold at this stage and we expect the full year performance before exceptions to be in line with prior year.
We continue to invest in new varieties and markets with particular focus on how to accelerate our development in Continental Europe, East Africa, and India into the future.
AGM
The Group will announce in due course the date of its next AGM.
Geoffrey Vance
Chairman
Donegal Investment Group plc
Condensed consolidated statement of profit or loss and comprehensive income
for the 6 months ended 29 February 2024
| |
Note |
Pre-Exceptional €'000 | Unaudited
Note 10 Exceptional €'000 |
6 months ended 29 February 2024 Total €'000 |
Pre-Exceptional €'000 | Unaudited
Note 10 Exceptional €'000 |
6 months ended 28 February 2023 Total €'000 | Audited 12 months ended 31 August 2023 Total €'000 |
| Continuing operations |
|
|
|
| | | | |
| Revenue | 4 | 23,024 | - | 23,024 | 21,436 | - | 21,436 | 29,719 |
| Cost of sales |
| (15,568) | - | (15,568) | (13,531) | - | (13,531) | (19,928) |
| |
|
|
|
| | | | |
| Gross profit |
| 7,456 | - | 7,456 | 7,905 | - | 7,905 | 9,791 |
| Other income | 5 | 77 | - | 77 | 16 | - | 16 | 315 |
| Other expense | 6 | - | - | - | (2) | - | (2) | (57) |
| Distribution expenses |
| (2,863) | - | (2,863) | (3,405) | - | (3,405) | (3,916) |
| Administrative expenses |
| (2,856) | - | (2,856) | (2,544) | - | (2,544) | (4,377) |
| |
|
|
|
| | | | |
| Profit/(loss) from operating activities |
| 1,814 | - | 1,814 | 1,970 | - | 1,970 | 1,756 |
| |
|
|
|
| | | | |
| Finance income |
| 130 | - | 130 | 0 | - | 0 | 70 |
| Finance expenses |
| (59) | - | (59) | (262) | - | (262) | (445) |
| Net finance income |
| 71 | - | 71 | (262) | - | (262) | (375) |
|
|
|
|
|
| | | | |
| Profit/(loss) before income tax |
| 1,885 | - | 1,885 | 1,708 | - | 1,708 | 1,381 |
| Income tax (charge)/benefit |
| (279) | - | (279) | (201) | - | (201) | (86) |
|
Profit for the period - continuing operations |
4 |
1,606 |
|
1,606 |
1,507 |
|
1,507 |
1,295 |
|
|
|
|
|
| | | |
|
| Profit for the year - from discontinued operations, net of tax |
| - | - | - | - | 731 | 731 | 843 |
|
Profit/(loss) for the year |
|
1,606 |
- |
1,606 |
1,507 |
731 |
2,238 |
2,138 |
|
|
|
|
|
| | | |
|
|
|
|
|
| |||||
| Donegal Investment Group plc Condensed consolidated statement of profit or loss and comprehensive income (continued) for the 6 months ended 29 February 2024 |
|
|
|
|
|
| ||||
|
|
| Unaudited | Unaudited | Audited | ||||||
|
|
| 6 months ended 29 February 2024 Total €'000 | 6 months ended 28 February 2023 Total €'000 | 12 months ended 31 August 2023 Total €'000 | ||||||
| Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
| Items that are or may be reclassified to profit or loss Foreign currency translation differences for foreign operations |
|
1 |
|
|
53 |
|
|
186 | ||
| Recycle of currency translation differences for foreign operations |
| - |
|
| - |
|
| - | ||
| Total comprehensive income for the period |
| 1,607 |
|
| 2,291 | | | 2,324 | ||
| |
|
|
|
|
|
| |
| | |
| Profit attributable to: |
|
|
|
| | | |
| | |
| Equity holders of the Company |
|
|
| 1,607 | | | 2,270 |
| | 2,016 |
| Non-controlling interest |
|
|
| (1) | | | (32) |
| | 122 |
| |
|
|
| 1,606 | | | 2,238 |
| | 2,138 |
| Profit attributable to: |
|
|
|
| | | |
| | |
| Continuing operations |
|
|
| 1,606 | | | 1,507 |
| | 1,295 |
| Discontinued operations |
|
|
| - | | | 731 |
| | 843 |
| |
|
|
| 1,606 | | | 2,238 |
| | 2,138 |
| Total comprehensive income attributable to: |
|
| | | | |
| | ||
| Equity holders of the Company |
|
|
| 1,607 | | | 2,288 |
| | 2,124 |
| Non-controlling interest |
|
|
| - | | | 3 |
| | 200 |
| |
|
|
| 1,607 | | | 2,291 |
| | 2,324 |
| Donegal Investment Group plc Condensed consolidated statement of profit or loss and comprehensive income (continued) for the 6 months ended 29 February 2024 | | | | | | |||||||
|
|
|
|
| Unaudited | | | Unaudited | | | Audited |
| |
|
Earnings per share |
|
|
| 6 months ended 29 February 2024 Total €'000 | | | 6 months ended 28 February 2023 Total €'000 | | | 12 months ended 31 August 2023 Total €'000 |
| |
| Basic earnings per share (euro cent): Continuing |
|
|
|
105.60 | | |
101.09 | | |
88.39 |
| |
| Discontinued |
|
|
| - | | | 48.01 | | | 55.38 |
| |
| |
|
|
| 105.60 | | | 149.10 | | | 143.77 |
| |
| Diluted earnings per share (euro cent): Continuing |
|
|
|
105.60 | | |
101.09 | | |
88.39 |
| |
| Discontinued |
|
|
| - | | | 48.01 | | | 55.38 |
| |
| |
|
|
| 105.60 | | | 149.10 | | | 143.77 |
| |
Donegal Investment Group plc
Condensed consolidated statement of financial position
As at 29 February 2024
| |
| Unaudited |
| Unaudited | | Audited |
| | Note | 29 February 2024 €'000 |
| 28 February 2023 €'000 | | 31 August 2023 €'000 |
| Assets |
|
|
| | | |
| Property, plant and equipment | 8 | 2,937 |
| 3,074 | | 2,998 |
| Investment property | 9 | 540 |
| 595 | | 540 |
| Goodwill |
| 500 |
| 500 | | 500 |
| Intangible assets |
| 117 |
| 119 | | 119 |
| Investment in associates |
| - |
| - | | 224 |
| Other investments |
| 3,236 |
| 737 | | 737 |
| Total non-current assets |
| 7,330 |
| 5,025 | | 5,118 |
| |
| |
| | | |
| Inventories |
| 1,749 |
| 972 | | 835 |
| Biological assets |
| - |
| - | | 1,366 |
| Trade and other receivables |
| 19,474 |
| 17,497 | | 5,385 |
| Contingent consideration receivable |
| - |
| 3,110 | | - |
| Cash at bank |
| 3,223 |
| 6,104 | | 6,942 |
| Deferred tax asset |
| 8 |
| 9 | | 8 |
| |
| |
| | | |
| Total current assets |
| 24,454 |
| 27,692 | | 14,536 |
|
|
| |
| | | |
| Total assets |
| 31,784 |
| 32,717 | | 19,654 |
|
|
| |
| | | |
| Equity |
| |
| | | |
| Share capital |
| 197 |
| 206 | | 197 |
| Share premium account |
| 2,975 |
| 2,975 | | 2,975 |
| Other reserves |
| (721) |
| 1,766 | | (682) |
| Retained earnings |
| 15,394 |
| 11,316 | | 13,796 |
| Total equity attributable to equity holders of the Company |
|
17,845 |
|
16,263 | |
16,286 |
| Non-controlling interest |
| (574) |
| (672) | | (574) |
| Donegal Investment Group plc Condensed consolidated statement of financial position (continued) As at 29 February 2024
|
|
|
| | | |
| Total equity |
| 17,271 |
| 15,591 | | 15,712 |
| Liabilities |
|
|
| | | |
| Loans and borrowings |
| 489 |
| 472 | | 548 |
| Deferred income |
| 147 |
| 136 | | 153 |
| Total non-current liabilities |
| 636 |
| 608 | | 701
|
|
Loans and borrowings |
|
267 |
|
212 | |
254 |
| Trade and other payables |
| 8,018 |
| 6,845 | | 2,975 |
| Bank overdraft |
| 5,222 |
| 9,372 | | - |
| Current tax |
| 370 |
| 89 | | 12 |
|
|
|
|
| | | |
| Total current liabilities |
| 13,877 |
| 16,518 | | 3,241 |
|
|
|
|
| | | |
| Total liabilities |
| 14,513 |
| 17,126 | | 3,942 |
|
|
|
|
| | | |
| Total equity and liabilities |
| 31,784 |
| 32,717 | | 19,654 |
Donegal Investment Group plc
Condensed consolidated statement of changes in equity
for the 6 months ended 29 February 2024
|
|
Share capital €'000 | Other un- denominated capital €'000 | Share premium account €'000 | Trans- lation reserve €'000 | Reserve for own shares €'000 | Reval- uation reserves €'000 | Fair value reserve €'000 | Share option reserve €'000 |
Retained earnings €'000 |
Total €'000 | Non- controlling interest €'000 |
Total equity €'000 |
| Balance at 1 September 2023 | 197 | 1,140 | 2,975 | (1,813) | - | - | - | - | 13,787
| 16,286 | (574) | 15,712 |
| Total comprehensive income for the period | | | | | | | | | | | | |
| Profit for the period | - | - | - | - | - | - | - | - | 1,607 | 1,607 | (1) | 1,606 |
| Other comprehensive income | | | | | | | | | | | | |
| Foreign currency translation differences for foreign operations |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
1 |
1 |
| Other comprehensive income | - | - | - | - | - |
| - | - | - | - | 1 | 1 |
| Total comprehensive income for the period |
- |
- |
- |
- |
- |
- |
- |
- |
1,607 |
1,607 |
- |
1,607 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Transactions with owners recorded directly in equity | |
|
|
|
|
|
|
|
|
|
|
|
| Contributions by and distributions to owners | |
|
|
|
|
|
|
|
|
|
|
|
| Purchase of treasury shares | - | - | - | - | - | - | - | (48) | - | (48) | - | (48) |
| Total contributions by and distributions to owners |
- |
- |
- |
- |
- |
- |
- |
(48) |
- |
(48) |
- |
(48) |
| Balance at 29 February 2024 | |
|
|
|
|
|
|
|
|
|
|
|
|
| 197 | 1,140 | 2,975 | (1,813) | - | - | - | (48) | 15,394
| 17,845 | (574) | 17,271 |
Donegal Investment Group plc
Condensed consolidated statement of changes in equity (continued)
for the 6 months ended 29 February 2024
|
|
Share capital €'000 | Other un- denominated capital €'000 | Share premium account €'000 | Trans- lation reserve €'000 | Reserve for own shares €'000 | Reval- uation reserves €'000 | Fair value reserve €'000 | Share option reserve €'000 |
Retained earnings €'000 |
Total €'000 | Non- controlling interest €'000 |
Total equity €'000 |
| Balance at 1 September 2022 | 206 | 1,131 | 2,975 | (1,921) | (845) | 3,382 | - | - | 9,046
| 13,974 | (674) | 13,300 |
| Total comprehensive income for the period | | | | | | | | | | | | |
| Profit for the period | - | - | - | - | - | - | - | - | 2,270 | 2,270 | (32) | 2,238 |
| Other comprehensive income | | | | | | | | | | | | |
| Foreign currency translation differences for foreign operations |
- |
- |
- |
19 |
- |
- |
- |
- |
- |
19 |
34 |
53 |
| Other comprehensive income | - | - | - | 19 | - |
| - | - | - | 19 | 34 | 53 |
| Total comprehensive income for the period |
- |
- |
- |
19 |
- |
- |
- |
- |
2,270 |
2,289 |
2 |
2,291 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Transactions with owners recorded directly in equity | |
|
|
|
|
|
|
|
|
|
|
|
| Contributions by and distributions to owners | |
|
|
|
|
|
|
|
|
|
|
|
| Share Redemption | - | - | - | - | - | - | - | - | - | - | - | - |
| Derecognition of minority Interest | - | - | -
| - | -
| - | -
| -
| - | - | - | - |
| Total contributions by and distributions to owners |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Balance at 28 February 2023
| 206 | 1,131 | 2,975 | (1,902) | (845) | 3,382 | - | - | 11,316
| 16,263 | (672) | 15,591 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Donegal Investment Group plc
Condensed consolidated statement of cash flows
for the 6 months ended 29 February 2024 -
|
Note
| 6 months ended 29 February 2024 |
| 6 months ended 28 February 2023 |
| 12 months ended 31 August 2023 |
| | €'000 |
| €'000 |
| €'000 |
| Cash flows from operating activities | |
| |
| |
| Profit for the period | 1,606 |
| 2,238 |
| 2,138 |
| Adjustments for: | |
| |
| |
| Depreciation | 216 |
| 244 |
| 450 |
| Amortisation of intangibles | 2 |
| 2 |
| 5 |
| Amortisation of capital grant | 5 |
| 23 |
| 13 |
| Reversal of investment asset impairment | - |
| - |
| (224) |
| Change in fair value of investment property | - |
| - |
| 55 |
| Change in fair value of other investments | - |
| - |
| - |
| Net finance income | (90) |
| 246 |
| 341 |
| Interest charged in relation to lease arrangements | 19 |
| 16 |
| 34 |
| Loss on sale of investment property | - |
| 2 |
| 2 |
| Gain on sale of other investments | - |
| - |
| - |
| Gain on sale of property, plant and equipment | - |
| (10) |
| (42) |
| Profit for the year - from discontinued operations, net of tax | - |
| (731) |
| (843) |
| Share-based payment transactions | - |
| - |
| - |
| Income tax expense | 279 |
| 201 |
| 86 |
| Change in inventories | 454 |
| 909 |
| (301) |
| Change in trade and other receivables | (14,015) |
| (13,741) |
| (1,657) |
| Change in trade and other payables | 5,045 |
| 3,504 |
| 73 |
| | (6,479) |
| (7,097) |
| 130 |
| |
|
| |
| |
| Interest (paid)/refund | (40) |
| (32) |
| (76) |
| Income tax refund/(paid) | 73 |
| (9) |
| (25) |
| |
|
| |
| |
| Net cash from operating activities | (6,446) |
| (7,138) |
| 29 |
|
|
|
| |
| |
| Cash flows from investing activities |
|
| |
| |
| Interest received | 32 |
| - |
| 70 |
| Dividends received | - |
| - |
| - |
| Proceeds from sale of investment property | 225 |
| 220 |
| 220 |
| Proceeds from repayment of loan from associate | - |
| - |
| - |
| Proceeds from sale of property, plant and equipment | - |
| 48 |
| 141 |
| Proceeds from sale of other investments | - |
| - |
| - |
| Disposal of discontinued operations, net of cash disposed of | - |
| - |
| 3,260 |
| Acquisition of property, plant and equipment | (68) |
| (27) |
| (125) |
| Acquisition of intangibles | - |
| - |
| (2) |
| |
|
| |
| |
| Net cash generated/(used) in investing activities | 189 |
| 241 |
| 3,564 |
Donegal Investment Group plc
Condensed consolidated statement of cash flows (continued)
for the 6 months ended 29 February 2024
|
Note | 6 months ended 29 February 2024 |
| 6 months ended 28 February 2023 |
| 12 months ended 31 August 2023 |
| | €'000 |
| €'000 | | €'000 |
| Cash flows from financing activities |
|
| | | |
| Payment of finance lease liabilities | (137) |
| (143) | | (342) |
| Purchase of German Zero Coupon Bond | (2,500) |
| - | | - |
| Purchase of treasury shares Share redemption | (48) - |
| - - | | - - |
| Dividend paid to non-controlling interest | - |
| - | | (83) |
| |
|
| | | |
| |
|
| | | |
| Net cashflow from financing activities | (2,685) |
| (143) | | (425) |
|
|
|
| | | |
| Net decrease in cash and cash equivalents | (8,942) |
| (7,040) | | 3,168 |
| Cash and cash equivalents at start of period | 6,942 |
| 3,776 | | 3,776 |
| Effect of exchange rate fluctuations on cash held | - |
| (4) | | (2) |
|
|
|
| | | |
| Cash and cash equivalents at period end | (2,000) |
| (3,268) | | 6,942 |
Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements
for the 6 months ended 29 February 2024
(1) Reporting entity
Donegal Investment Group Plc (the "Company") is a company domiciled in Ireland. The unaudited condensed consolidated interim financial statements of the Group as at and for the six months ended 29 February 2024 ("the interim financial statements") comprise the Company and its subsidiaries (together referred to as the "Group") and the Group's interests in associates.
(2) Basis of preparation
These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the Group's last annual consolidated financial statements as at and for the year ended 31 August 2023 ('last annual financial statements'). They do not include all of the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements.
The 29 February 2024 figures and the 28 February 2023 comparative figures do not constitute statutory financial statements of the Group within the meaning of the Companies Act, 2014. The consolidated financial statements of the Group for the year ended 31 August 2023, together with the independent auditor's report thereon, were filed with the Irish Registrar of Companies following the Company's Annual General Meeting and are also available on the Company's Website. The auditor's report on those financial statements was unqualified.
The interim financial statements have been prepared on the going concern basis. The Directors have reviewed the Group's business plan for the next 12 months and other relevant information and have a reasonable expectation that the Group will continue in operational existence for the foreseeable future.
The Interim Financial Statements are presented in Euro, rounded to the nearest thousand, which is the functional currency of the Company and also the presentation currency for the Group's financial reporting.
The significant accounting policies applied in these interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ending 31 August 2023.
(3) Estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied in prior impairment of trade receivables, in respect of the carrying value of goodwill, recognition of deferred tax assets, measurement of financial assets and liabilities.
Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 29 February 2024
(4) 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) which the Group has identified to the Board of Directors in order to allocate resources to the segments and to assess their performance.
Produce: The growing, sales and distribution of seed potatoes and rental and sale of related property assets.
The main factors employed in the identification of the single segment include:
• the Group's organisational structure
• the nature of reporting lines to the Chief Operating Decision Maker
• the structure of internal reporting documentation such as management accounts and budgets
• Segment performance is evaluated based on operating profit. Given that net finance costs, taxation, share based payments and exceptional income and costs are managed on a centralised basis, these items are not allocated to the operating segment for internal reporting purposes and in the segmental analysis below.
Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 29 February 2024
(4) Segment information (continued)
Business segments (continued)
|
|
| Produce | Total - Group | ||||||
| |
| | | 6 months ended 29 February 2024 | 6 months ended 28 February 2023 | 12 months ended 31 August 2023 | 6 months ended 29 February 2024 | 6 months ended 28 February 2023 | 12 months ended 31 August 2023 |
| |
| | | €'000 | €'000 | €'000 | €'000 | €'000 | €'000 |
| |
| | |
| | |
| |
|
| Total revenues |
| | | 23,024 | 21,436 | 29,719 | 23,024 | 21,436 | 29,719 |
| | | | |
| | |
| | |
| Segment result before exceptional items Segmental result from continuing operations before exceptional items |
| | | 1,814
1,814 | 1,970
1,970 | 1,811
1,811 | 1,814
1,814 | 1,970
1,970 | 1,811
1,811 |
| | | | | | | |
| | |
| Exceptional items, net of tax | | | | | | | - | - | - |
| Change in fair value of investment property and other assets | | | | | | | - | - | (55) |
| Net finance income | | | | | | | 71 | (262) | (375) |
| Income tax (expense)/benefit | | | | | | | (279) | (201) | (86) |
| Profit/(loss) for the period - continuing operations | | | | | | | 1,606 | 1,507 | 1,295 |
Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 29 February 2024
(4) Segment Information (continued)
Business segments (continued)
|
|
| Produce | Total - Group | ||||||||||
| |
| | | | 29 February 2024 | 28 February 2023 | 31 August 2023 | | 29 February 2024 | 28 February 2023 |
31 August 2023 |
| |
| |
| | | | €'000 | €'000 | €'000 | | €'000 | €'000 | €'000 |
| |
|
Segment assets |
| | | | 28,553 | 26,604 |
12,704 | | 28,553 | 26,604 |
12,704 |
| |
| Cash at bank (unallocated) | | | | |
| | | | 3,223 | 6,104 | 6,942 |
| |
| Deferred tax asset | | | | |
| | | | 8 | 9 | 8 |
| |
| |
| | | |
| | | | 31,784 | 32,717 |
19,654 |
| |
| |
| | | | | | | | | | |
| |
| | | | | | | | | | | | |
| |
| Segment liabilities |
| | | | 8,535 | 7,070 |
3,140
| | 8,535 | 7,070 |
3,140 |
| |
| Bank overdraft (unallocated) |
| | | |
| | | | 5,222 | 9,372 | - |
| |
| Loans and borrowings (unallocated) | | | | | | | | | 756 | 684 | 802 |
| |
| | | | | | | | | | | | |
| |
| Total liabilities |
| | | |
| | | | 14,513 | 17,126 | 3,942 |
| |
| Capital expenditure (inclusive of IFRS 16) |
| | | | 159 | 27 |
127 | | 159 | 27 |
127 |
| |
| Depreciation and amortisation |
| | | | 218 | 246 | 455 | | 218 | 246 | 455 |
| |
| Change in fair value of investment property and other assets |
| | | | - | - |
(55) | | - | - |
(55) |
| |
| |
| |
| |
| ||||||||
Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 29 February 2024
(4) Segment Information (continued)
Entity-wide disclosures
Section 1: Information about products and service
The Group determines that the categories used in investor presentations can be used to meet the objective of the disaggregation disclosure requirement in paragraph 114 of IFRS 15, which is to disaggregate revenue from contracts with customers into categories that depicts how the nature, amount, timing and uncertainty of revenue and cashflows are affected by economic factors.
The following table illustrates the disaggregation disclosure by principal products and services to external customers.
Produce
| |
| | 6 months ended 29 February 2024 | 6 months ended 28 February 2023 | 12 months ended 31 August 2023 |
| |
| | €'000 | €'000 | €'000 |
| |
| |
| | |
| Seed potato |
| | 23,024 | 21,436 | 29,719 |
| |
| |
| | |
| |
| | 23,024 | 21,436 | 29,719 |
| |
| |
| | |
| |
| | | | |
Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 29 February 2024
(5) Other income - continuing operations 6 months ended 6 months ended 12 months ended
| | | 29 February 2024 | 28 February 2023 | 31 August 2023 |
| | | €'000 | €'000 | €'000 |
| Income from investment and other property rentals | | 76 | 6 | 49 |
| Reversal of provision against loan to associate | | - | - | 224 |
| Gain on disposal of property, plant and equipment | | - | 10 | 42 |
| Government grant | | 1 | - | - |
| | | 77 | 16 | 315 |
(6) Other expense - continuing operations 6 months ended 6 months ended 12 months ended
| | | 29 February 2024 | 28 February 2023 | 31 August 2023 |
| | | €'000 | €'000 | €'000 |
| Change in fair value of investment property | | - | - | (55) |
| Loss on disposal of investment property | | - | (2) | (2) |
| | | - | (2) | (57) |
Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 29 February 2024
(7) Earnings per share
The calculation of basic and diluted earnings per share is set out below:
6 months ended 6 months ended 12 months ended
| | 29 February 2024 | 28 February 2023 | 31 August 2023 | |||
| | €'000 | €'000 | €'000 | |||
| Profit/(loss) for the period - continuing operations | 1,606 | 1,507 | 1,295 | |||
| Profit for the period - discontinued operations | - | 731 | 843 | |||
| |
| | | |||
| Profit for the period | 1,606 | 2,238 | 2,138 | |||
| |
| | | |||
| Profit attributable to ordinary shareholders | 1,607 | 2,270 | 2,016 | |||
|
|
| |
|
| ||
|
|
| |
|
| ||
| |
| |
|
| ||
| Weighted average number of ordinary shares In thousands of shares | 6 months ended 29 February 2024 €'000 | 6 months ended 28 February 2023 €'000 | 12 months ended 31 August 2023 €'000 |
| ||
| Weighted average number of ordinary shares in issue for the period | 1,522 | 1,589 | 1,589 |
| ||
| Weighted average number of treasury shares | (1) | (67) | (67) |
| ||
| |
| | |
| ||
| Denominator for basic earnings per share | 1,521 | 1,522 | 1,522 |
| ||
| Effect of share options in issue | - | - | - |
| ||
| |
| | |
| ||
| Weighted average number of ordinary shares (diluted) at end of period | 1,521 | 1,522 | 1,522 |
| ||
|
|
| | |
| ||
|
| 6 months ended 29 February 2024 | 6 months ended 28 February 2023 | 12 months ended 31 August 2023 |
| ||
| Basic earnings/(loss) per share (euro cent) Continuing |
105.60 |
101.09 |
88.39 |
| ||
| Discontinued | - | 48.01 | 55.38 |
| ||
| | 105.60 | 149.10 | 143.77 |
| ||
| Diluted earnings/(loss) per share (euro cent) Continuing |
105.60 |
101.09 |
88.39 |
| ||
| Discontinued | - | 48.01 | 55.38 |
| ||
| | 105.60 | 149.10 | 143.77 |
| ||
Donegal Investment Group plc
Notes to the unaudited preliminary condensed consolidated financial statements (continued)
for the 6 months ended 29 February 2024
(8) Property, plant and equipment
Additions and disposals
During the 6 months ended 29 February 2024, the Group acquired assets for €68,000 (28 February 2023: €27,000) in addition to recognition of €91,000 (29 February 2023: €Nil) in right of use assets under IFRS 16. Assets with a net book value of €Nil were disposed of during the 6 months ended 29 February 2024 (28 February 2023: €36,000), resulting in no loss/gain on disposal (28 February 2023: gain of €10,000).
| (9) Investment property | 29 February 2024 | 28 February 2023 | 31 August 2023 |
| | €'000 | €'000 | €'000 |
| Balance at start of the period | 540 | 595 | 595 |
| Change in fair value | - | - | (55) |
| Balance at end of the period | 540 | 595 | 540 |
The Group holds an interest in an office building along with one other property asset.
Donegal Investment Group plc
Notes to the preliminary condensed consolidated financial statements (continued)
for the 6 months ended 29 February 2024
(10) Exceptional items
Exceptional items are those that, in management's judgement, should be separately disclosed by virtue of their nature or amount. Such items are included in the statement of profit or loss and comprehensive income caption to which they relate and are separately disclosed in the notes to the Interim Financial Statements. The Group reports the following exceptional items:
| | | 29 February 2024 | 28 February 2023 | 31 August 2023 | |||
| | | €'000 | €'000 | €'000 | |||
| Exceptional costs after tax - continuing operations | | - | - | - | |||
| Profit on disposal from discontinued operations | a) | - | 731 | 843 | |||
| Exceptional profit from discontinued operations |
| - | 731 | 843 | |||
| Total exceptional income for the year | | - | 731 | 843 | |||
a) Profit on disposal of asset held for sale, namely the Group's speciality dairy business, disposed on 5 November 2021
(11) Events after the balance sheet date
There have been no significant events subsequent to the period end, which would require adjustment to, or disclosure in, the interim financial statements.
Donegal Investment Group plc
Notes to the preliminary condensed consolidated financial statements (continued)
for the 6 months ended 29 February 2024
(12) Share Capital
| | | Ordinary Shares | Redeemable Ordinary Shares | Deferred Shares | Total | |||
| | | Number | €'000 | Number | €'000 | Number | €'000 | €'000 |
| Authorised | | | | | | | | |
| Balance at 1 September 2023 | | 50,000,000 | 6,500 | 1,307,190 | 170 | 1,307,190 | 170 | 6,840 |
| Balance at 29 February 2024 | | 50,000,000 | 6,500 | 1,307,190 | 170 | 1,307,190 | 170 | 6,840 |
| | | | | | | | | |
| Issued, called up and fully paid | | | | | | | | |
| Balance at 1 September 2023 | | 1,522,293 | 197 | - | - | - | - | 197 |
| Balance at 29 February 2024 | | 1,522,293 | 197 | - | - | - | - | 197 |
As approved by shareholders at the Extraordinary General Meeting held on 11 February 2022, the authorised share capital of the Company was increased from €6,708,000 to €6,840,000 by, inter alia, the creation of an additional 507,190 Redeemable Ordinary Shares of €0.13 each and 507,190 Deferred Shares of €0.13 each.
The Ordinary Shares and the Redeemable Ordinary Shares rank pari passu. A Deferred Share has no rights other than a right to participate in any surplus arising on the winding up of the Company up to the nominal amount paid up on the Deferred Share.
Donegal Investment Group plc
Notes to the preliminary condensed consolidated financial statements (continued)
for the 6 months ended 29 February 2024
(13) Related party transactions
Details of related party transactions in respect of the year ended 31 August 2023 are contained in Note 36 to the Consolidated Financial Statements of the Group's 2023 Annual Report. The Group continued to enter into transactions in the normal course of business with its associates and other related parties during the period. The Group has entered into consultancy agreements with Culkeen Consulting Limited, which is owned and operated by Non-Executive Director, Mr Ian Ireland, and Drumgornan Limited, which is owned and operated by Non-Executive Director, Mr Padraic Lenehan. These companies will provide management services as required to support the strategy of the board going forward. There were no other transactions with related parties in the period or changes to transactions with related parties disclosed during the period that had a material effect on the financial position or the performance of the Group.
(14) Discontinued operations
On 5 November 2021, the Group announced that it has completed the disposal of its 80 per cent owned subsidiary, Nomadic Dairy Limited (Nomadic) and therefore the trade for the period is presented as discontinued operations. The profit incurred in respect of its dairy operations in the period prior to its disposal on 5 November 2021 was €358,000.
The carrying value of net assets disposed of amounted to €11,084,000 resulting in the recognition of a profit on disposal of €13,120,000 at 31 August 2022 after accounting for the derecognition of the non-controlling interest of €1,692,000.
The overall transaction value for 100 per cent share capital of Nomadic comprises of (1) €26.1m of cash consideration (including existing Nomadic cash of €3.1m) on completion (Initial Consideration), subject to customary completion accounts adjustments, and (2) a further contingent consideration of up to a maximum of €6m dependent on the financial performance of Nomadic for the period 1 January 2022 to 31 December 2022, inclusive. The Group held an 80 per cent interest in Nomadic with its share of the Initial Consideration being €20.9m and a further €4.8m being its potential share of the maximum contingent consideration receivable.
At 31 August 2022, the fair value of the potential contingent consideration recognised was €2.4m, representing the Directors best estimate of the amount which would be received by the Group and which would ultimately depend on the financial performance of Nomadic for the period 1 January 2022 to 31 December 2022. On 10 July 2023 the Group received €3,340,000 in full and final settlement of contingent consideration receivable resulting in a further profit on disposal of €843,000 net of costs
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