Total Produce Plc Half Yearly Report -9-
September 02 2014 - 2:01AM
UK Regulatory
to the acquisition of subsidiaries and are not allocated to operating
segments in the Group's management reporting.
(iv) Under IFRS, included within profit before tax is the Group's share
of joint ventures and associates profit after acquisition related
intangible amortisation charges and costs, tax and interest. In
the Group's management reporting the Group's share of these items
are excluded from the adjusted EBITA calculation.
(v) Exceptional items (Note 5) are not allocated to operating segments
in the Group's management reporting.
(vi) Financial income and expense is primarily managed at Group level,
and is therefore not allocated to individual operating segments
in the Group's management reporting.
4. Adjusted profit before tax, adjusted EBITA and adjusted EBITDA
For the purpose of assessing the Group's performance, Total Produce
management believes that adjusted EBITDA, adjusted EBITA, adjusted
profit before tax and adjusted earnings per share (Note 6) are the
most appropriate measures of the underlying performance of the Group.
(Unaudited) (Unaudited) (Audited)
6 months 6 months to Year ended
to 30 June 30 June 2013 31 Dec 2013
2014
EUR'000 EUR'000 EUR'000
Profit before tax per income statement 24,171 22,868 48,235
Adjustments
Exceptional items (Note 5) (2,455) 16 (6,309)
Fair value movement on contingent
consideration estimates 365 363 901
Group share of tax charge of joint
ventures & associates 953 1,312 2,057
Acquisition related intangible asset
amortisation in subsidiaries 3,271 3,184 6,369
Share of joint ventures & associates
acquisition related intangible asset
amortisation 753 708 1,593
Acquisition related costs within
subsidiaries 147 68 87
------------- --------------- --------------
Adjusted profit before tax 27,205 28,519 52,933
Exclude;
Net financial expense - Group 2,819 2,646 5,178
Net financial expense - share of
joint ventures & associates 195 224 594
------------- --------------- --------------
Adjusted EBITA 30,219 31,389 58,705
Exclude;
Amortisation of software costs 234 57 261
Depreciation - Group 6,730 6,548 13,170
Depreciation - share of joint ventures
& associates 913 1,153 1,990
------------- --------------- --------------
Adjusted EBITDA 38,096 39,147 74,126
============= =============== ==============
5. Exceptional items
(Unaudited) (Unaudited) (Audited)
6 months 6 months Year ended
to 30 June to 30 June 31 Dec
2014 2013 2013
EUR'000 EUR'000 EUR'000
Gains on available-for-sale financial assets
reclassified from other comprehensive income 2,455 - -
to income statement (a)
Credit from modification to Group's defined
benefit pension arrangements (b) - - 10,317
Remeasurement to fair value of pre-existing
interest in acquiree (c) - - 702
Profit on the disposal of joint venture
and associate investments (d) - 234 234
Change in fair value of investment property
within subsidiaries (e) - (250) (3,694)
Impairment of property, plant and equipment
(f) - - (808)
Share of joint ventures fair value movement
on investment property (g) - - (442)
Total exceptional items (after share of
joint ventures & associates tax) 2,455 (16) 6,309
Share of joint ventures tax on fair value
movements on investment property (h) - - 183
------------- ------------- ------------
Exceptional items within operating profit 2,455 (16) 6,492
Net tax credit on exceptional items (b)
& (e) - 63 (324)
------------- ------------- ------------
Total 2,455 47 6,168
============= ============= ============
(a) Gains on available-for-sale financial assets reclassified from
other comprehensive income to income statement
In March 2014, the Group reclassified its 10% interest in African
Blue Limited ('African Blue') from an available-for-sale financial
asset to an associate investment. African Blue is a blueberry grower
in Morocco. Due to the change in the nature of the Group's involvement
in this entity in early 2014, it was deemed that the Group obtained
significant influence in accordance with the provisions of IAS 28
Investment in Associates and Joint Ventures (2011). In accordance
with IFRS, the Group's 10% interest was fair valued in March resulting
in a fair value uplift of EUR2,455,000. This uplift was reclassified
to the income statement resulting in an exceptional gain of EUR2,455,000
for the period ended 30 June 2014.
(b) Credit arising from modification to Group's defined benefit pension
arrangements
In December 2013, a modification to the structure of the Group's defined
benefit pension arrangements resulted in a credit of EUR10,317,000
to the income statement. The deferred tax charge on this exceptional
credit amounts to EUR1,290,000. Further details are outlined in the
Group's 2013 Annual Report.
(c) Remeasurement to fair value of a pre-existing interest in acquiree
In December 2013, the Group acquired a controlling interest in a company
in which it had a previously held an associate interest. In accordance
with the provisions of IFRS, the previously held shareholding was
remeasured at this date to fair value resulting in a remeasurement
gain of EUR702,000 which was recognised in the income statement.
(d) Profit on disposal of joint venture and associate investments
In April 2013, the Group announced the completion of a transaction
to sell its 25% shareholding in the South African fruit distribution
business Capespan Group Limited for a total consideration of EUR21,677,000.
A profit of EUR234,000 was recognised on disposal of this investment
comprising the EUR1,278,000 difference between the sales proceeds
and the associate's carrying value of EUR20,399,000 offset by the
reclassification of EUR1,044,000 of currency translation losses from
equity to the income statement.
(e) Fair value movements on investment property
Fair value losses of EUR3,694,000 relating to investment property
were recognised in the income statement in the year ended 31 December
2013. A deferred tax credit of EUR966,000 was recognised in the income
statement as a result of this fair value movement. For the six month
period ended 30 June 2013, fair value losses of EUR250,000 and a related
deferred tax credit of EUR63,000 were recognised in the income statement.
No such impairment gains or losses were identified in the six month
period to 30 June 2014.
(f) Impairment of property, plant and equipment
On revaluation of the Group's properties at December 2013, two properties
were identified in the UK and Ireland where the carrying value exceeded
the fair value, resulting in an impairment charge of EUR808,000 to
the income statement. No such impairments were identified in the six
month period ended 30 June 2014.
(g) and (h) Share of joint ventures fair value movement on investment
property
At December 2013, the Group's share of the fair value movements on
investment property within joint ventures of EUR259,000, net of deferred
tax, was recognised in the income statement. No such impairments were
identified in the six month period ended 30 June 2014.
6. Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit for
the year attributable to ordinary equity holders of the parent by
the weighted average number of ordinary shares outstanding during
the year, excluding shares purchased by the company which are held
as treasury shares.
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