Roebuck Food Group PlcLSE: RFG

Interim Results 2024

Sep 27, 2024 at 6:00 AM UTC

Roebuck Food Group plc

Interim results 2024

Results

Roebuck Food Group plc (AIM: RFG) is pleased to announce its interim results for the six months to end June 2024.

During this period, management have completed a fundamental strategic review of the business and have developed a new strategic vision for Roebuck Food Group plc. This vision has a number of guiding pillars including the advancement and implementation of climate mitigation technologies, throughout the agricultural supply chain, from primary production through to food consumption. At this juncture, management believe we can build a business of significant scale and size over the next number of years and we are presently evaluating a number of significant investment opportunities.

As part of this new strategic vision, management have completed the divestment of two subsidiaries (Town View Foods and Cantwellscourt Farm), which were no longer considered appropriate to the direction management want to take the business. The sale of Town View Foods has results in a significant goodwill write off of circa Stg £2.3m. Net debt stood at £0.1m at end June 2024.

Continuing Operations

Moorhead & McGavin, the company which we acquired in December 2023 and which is focussed on the plant based opportunity, is growing strongly. Sales were up 22%, in the first half of the year, compared with the prior year. We continue to invest in people to grow this business and notwithstanding this investment, we expect the business to improve its profitability this year, on 2023 levels.

Foro Food Solutions, our Cork based sourcing business comprises two parts; the sourcing business which engages primarily with the food service and food manufacturing segments of the food market and a newer addition, which engages primarily with retail. The legacy division is profitable and growing strongly from a very small base. The latter will need some time to cover its investment in people. This business is benefitting from some synergies with Moorhead & McGavin and vice versa.

Discontinued Operations

The period under review and into the second half of the year has seen the divestment of two of our subsidiaries; Town View Foods (which has resulted in a substantial goodwill write off of £2.3m in the interim figures just published) together with Cantwellscourt Farm ltd.

The loss at Cantwellscourt Farm comprises a write down on the asset, professional fees, together with trading losses, reflecting the time of the year when the acquisition was completed (dairy farms typically lose money in the first few months of the year). The losses at Town View Foods comprise a trading loss of £158,479 in the period under review, together with accruals for trading losses in July and August, expenses provided for on the sale and the aforementioned good will write off.

Outlook

The aforementioned divestments will greatly simplify Roebuck Food group, resulting in a reduced overhead and with a balance sheet with a small net debt of circa £0.1m.

Management are excited for the prospects of the group. We are seeing good opportunities to grow the business in areas where we have capability and competence and look forward to delivering for shareholders in the months ahead.

Dividend

The board does not recommend the payment of a dividend.

Roebuck Food Group Plc
Consolidated income statement
For the six months ended 30 June 2024

							Six months		Six months
							ended		ended
							30 June		30 June
							2024		2023
							(Unaudited)		(Restated)

							£'000		£'000

Continuing operations
Revenue							5,966		1,664
Cost of sales							(5,688)		(1,601)
Gross profit							278		63

Administrative expenses							(564)		(397)
Acquisition and related costs							(35)		-
Operating loss from continuing operations							(321)		(334)

Finance income - interest receivable							3		-
Finance expenses - lease interest							-		-
Finance expenses - interest on bank loans							(7)		(3)
Loss on continuing activities before taxation							(325)		(337)

Income taxes - Corporation tax							-		-
Income taxes - Deferred tax							-		-

Loss for the period attributable to owners of the parent from continuing operations							(325)		(337)

Loss from discontinued activities							(3,753)		(197)

Loss for the period							(4,078)		(534)

Other comprehensive income							(11)		(100)

Total comprehensive income for the year							(4,089)		(634)
Earnings per share expressed in pence per share:
From continuing operations - basic							(0.65)p		(0.67)p
- diluted							(0.65)p		(0.67)p
From discontinued operations - basic							(7.5)p		(0.39)p
- diluted							(7.5)p		(0.39)p


Roebuck Food Group plc
Financial position
As at 30 June 2024
				As at		As at				As at
				30 June		30 June				31 December
				2024		2023				2023
				(Unaudited)		(Unaudited)				(Audited)

				£'000		£'000				£'000
ASSETS
Non-current assets
Goodwill				-		2,338				2,338
Biological assets				-		1,015				642
Intangible assets				570		-				600
Property, plant and equipment				1,091		2,024				3,048
				1,661		5,377				6,628
Current assets
Trade and other receivables				1,645		4,747				3,649
Inventories				1,061		794				1,044
Assets held for sale				4,274		-				-
Cash and cash equivalents				51		1,055				1,186
				7,031		6,596				5,879

TOTAL ASSETS				8,692		11,973				12,507

Equity attributable to equity holders of the parent And non-controlling interest
Share capital				990		564				990
Share premium account				2,094		-				2,094
Other reserves				(105)		(168)				(94)
Retained earnings				(725)		4,670				3,353
TOTAL EQUITY				2,254		5,066				6,343
Non-current liabilities
Borrowings				28		943				932
Deferred tax				72		58				168
				100		1,001				1,100

Current liabilities
Trade and other payables				1,770		3,356				3,826
Liabilities held for sale				4,405		154				-
Borrowings				163		2,396				1,238
				6,338		5,906				5,064

TOTAL EQUITY AND LIABILITIES				8,692		11,973				12,507


Roebuck Food Group plc
Consolidated statement of changes in equity For the six months ended 30 June 2024


	Share	Share	Other		Other Distributable			Retained
	capital	premium	Reserves		Reserves			earnings			Total
	£'000	£'000	£'000		£'000			£'000			£'000

At 1 January 2023	564	-	(68)		-			5,204			5,700

Profit for the financial year	-	-	-		-			(534)			(534)
Foreign exchange gain	-	-	(100)		-			-			(100)
Total comprehensive income for the period	-	-	(100)		-			(534)			(634)
Issue of share capital	-	-	-		-			-			-
Equity dividends paid (recognised directly in equity)	-	-	-		-			-			-
Transactions with owners	-	-	(100)		-			(534)			(634)
At 30 June 2023	564	-	(168)		-			4,670			5,066

Net profit for the financial period	-	-	-		-			(1,317)			(1,317)
Foreign exchange loss	-	-	74		-			-			74
Total comprehensive income for the period	-	-	74		-			(1,317)			(1,243)
Issue of share capital	426	2,224	-		-			-			2,650
Share issue costs	-	(130)	-		-			-			(130)
Transactions with owners	426	2,094	74		-			(1,317)			1,277
At 31 December 2023	990	2,094	(94)		-			3,353			6,343

Net profit for the financial period	-	-	-	-	(4,078)	(4,078)
Foreign Exchange Gain	-	-	(11)	-	-	(11)
Total comprehensive income for the period	-	-	(11)	-	(4,078)	(4,089)
Issue of share capital	-	-	-	-	-	-
Equity dividends paid (recognised directly in equity)	-	-	-	-	-	-
Transactions with owners	-	-	(11)	-	(4,078)	(4,089)
At 30 June 2024	990	2,094	(105)	-	(725)	2,254

Roebuck Food Group plc
Consolidated cash flow statement
For the six months ended 30 June 2024
	Six months	Six months
	Ended	ended
	30 June	30 June
	2024	2023
	(Unaudited)	(Restated)
	£'000	£'000
Loss on continuing activities before taxation	(325)	(337)
Gain on biological assets	-	(160)
Loss on sale of biological assets	-	-
Foreign exchange loss/(gain)	-	100
Loss on discontinued activities	(3,753)	(197)
Finance expenses	7	81
Finance income	(3)	(13)
Bad debt expenses	-	25
Taxation charge	-	-
Impairment - Intangible Asset	30	-
Impairment - Goodwill	2,338	-
Depreciation - property, plant and equipment	33	84
	(1,673)	(417)
Changes in working capital:
Increase in inventories	(145)	(478)
(Increase)/decrease in trade and other receivables	(246)	2,476
Decrease in trade and other receivables for disposal	-	-
Increase in current assets held for sale	(4,274)	-
Decrease/(increase) in current liabilities held for sale	4,405	144
Increase/(decrease) in payables	(37)	(71)
Taxation paid	-	-
Net cash (used)/ generated from operating activities	(297)	2,071
Investing activities
Proceeds of biological assets	-	15
Proceeds from Sale of farming division	1,192	-
Payments to acquire subsidiary undertaking	-	-
Cash acquired as part of acquisition	-	-
Purchase of property, plant and equipment	(17)	(28)
Net cash used in investing activities	1,175	(13)
Financing activities
Invoice finance	(328)	(1,973)
Finance lease capital repayments	(12)	(91)
Finance lease advance	-	-
Net proceeds from issue of share capital	-	-
Term loan repayments	-	(13)
Net cash used in financing activities	(340)	(2,077)

Net decrease in cash and cash equivalents	(1,135)	(436)
Cash and cash equivalents, at beginning of period	1,186	1,491
Cash and cash equivalents end of period	51	1,055

Note: The accounting policies applied throughout the period are consistent with those applied for the year ended 31 December 2023, as set out in the 2023 Annual Report.

Enquiries:

Roebuck Food Group
Aidan Hughes, Finance Director	Telephone: + 44 1293 862 498

Davy (Nomad)
Anthony Farrell	Telephone: + 353 1 679 6363

Six months

Year

ended

Ended

30 June

31 December