UK potato firm Produce Investments has booked a near 50% increase in full-year operating profit, with margin gains offsetting a decline in revenue.

In a regulatory filing today (26 September), the company said operating profit rose 46% to GBP11m (US$17.9m) from GBP7.5m. Gains were driven by improved margins, which expanded to 5.7% from 3.7%. EPS rose to 33.64 pence, up from 24.92 pence.

However, revenue during the 52 weeks to 28 June fell to GBP191.8m, from GBP206m. The company attributed the decline to falling selling prices.

In May, the company acquired The Jersey Royal Co. Trading since the acquisition has been "in line with expectations", the group revealed. Meanwhile, Produce Investments' own brand, GreenVale, "continues to perform well", the company added.

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Final results for 52 weeks ended 28 June 2014

 

Produce Investments plc ("Produce Investments" or the "Group") (AIM:PIL), a leading operator in the fresh potato sector with vertically integrated activities covering seed production, own growing, processing and packing and supply to the major retailers, is pleased to announce its results for the 52 weeks ended 28 June 2014.

 

Financial highlights

2014

2013

Revenue

£191.8m

£206.0m

Operating profit

£11.0m

£7.5m

Fair value adjustment on biological assets  

£0.1m

£1.0m

Exceptional items

Adjusted profit before tax (1)

£(1.6m)

£10.1 m

-

£6.7m

Basic earnings per share

33.64p

28.60p

Adjusted earnings per share (1)

39.64p

24.92p

Dividend per share

6.825p

5.46p

Net debt

£24.5m

£17.3m

(1)   Excluding fair value adjustment for biological assets of £120k (2013 : £965k) and exceptional charges of £1.6m (2013 : £nil) relating to the closure of Tern Hill   

 

Operational Highlights

 

·      Operating profit up 46% at £11.0m (2013: £7.5m)

·      Operating profit margin increased to 5.7% from 3.7%

·      Own brand - GreenVale - continues to perform well

·      Inclusion of The Jersey Royal Company Limited from 16 May 2014, with trading in line with expectations

·      Reduction in turnover as a result of lower prices following the high priced season in 2012/2013

·      Improvement in adjusted earnings per share - up 59% on 2013

 

·      Increase in dividend per share - up 25% on 2013

Original source: Produce Investments