Interim Results
August 06 2007 - 3:01AM
UK Regulatory
RNS Number:5565B
IFR Capital PLC
06 August 2007
6 August 2007
IFR CAPITAL PLC
Interim Results for the Six Months to 30 June 2007
IFR Capital Plc ("IFR Capital" or the "Company": IFR.LN), the investment company
focused on consolidation opportunities in the European food retal sector, today
announces interim results for the six months ended 30 June 2007.
Highlights
* EBITDA of Euro 5 million on sales of Euro 164 million
* On track to achieve Euro 40 million of EBITDA in fiscal 2007
* Board reiterates target of Euro1.5 billion of sales & EBITDA margin of at
least 10% by the end of 2009
* Strong prospects for continued profitable growth - range of attractive
investment opportunities
Operational Review
The results for the period include contributions from Nordsee
Fisch-Spezialitaten GmbH ("Nordsee") and Bastian's GmbH ("Bastian's"). As at
30 June 2007, IFR Capital had committed to but not completed the acquisition of
Homann Chilled Food GmbH ("Homann"). Consequently, Homann's assets and
liabilities are consolidated into IFR Capital's balance sheet as at 30 June 2007
but its trading result is not included within the IFR's profit and loss account.
IFR completed the acquisition of Homann on 4 July 2007.
IFR Capital's sales for the six months ended 30 June 2007 were Euro164 million,
while EBITDA amounted to Euro 5 million. Both sales and EBITDA are in line with the
Board's expectations. Taking the seasonality of Nordsee into account, the Board
expects the Company to achieve sales of Euro 509 million and EBITDA of Euro 40 million
in the year to 31 December 2007. The annual surplus will attain to a double
digit range. The equity to total asset ratio at the end of the period was 30,0%.
IFR currently has Euro 215 million of long term interest bearing third party debt.
The year end results will also include the Homann figures, which is part of the
reason for the strong increase compared to 2006 (expected 2007 EBITDA of Euro 40
million compared to 2006 of Euro 24 million, which is equivalent to an increase of
67%. Sales is expected to be around Euro 509 million by 31 December 2007 which is a
46% increase compared to the 2006 sales of Euro 349 million.
In addition to improving its existing operational efficiency in Germany and
Austria, Nordsee is also making steps towards international expansion, including
the exploration of franchise agreements in the Middle East and Eastern Europe.
The first of these franchise outlets is expected to open in 2008. In the
domestic market, Nordsee is piloting new restaurant formats, such as the '
Strandhaus' ('beach house'), a full service fish restaurant with modern ambience
and front cooking, and the 'bar di mar', which addresses the premium market
segment.
The integration of Homann has begun and is proceeding faster than management
expectations. The management structure has been streamlined, overhead costs have
been reduced and new supplier contracts are being put in place with Nordsee. The
current EBITDA margin of Nordsee improved to 9% whereas Homann's amounts to 7%.
IFR Capital continues to explore acquisition opportunities that have the
potential to deliver synergies to enhance returns. It will continue to target
companies valued at 6-8x EBITDA with EBITDA margins of 5-7%. By specializing in
retail (shops and restaurants), manufacturing (wholesale and production) and
distribution, substantial synergies can be created leading to business
turnarounds and EBITDA enhancement.
Heiner Kamps summarizes: "The Company is pleased with its development during the
six months ended 30 June 2007 and reiterates its stated target of achieving
turnover in excess of Euro1.5 billion and an EBITDA margin of at least 10% by the
end of 2009. The Board looks forward to the second half of 2007."
Enquiries:
Tim Mickley, Collins Stewart Europe Limited +44 (0) 20 7523 8350
(Nominated Advisor to the Company)
Rob Bailhache & Nick Henderson, Financial Dynamics +44 (0) 20 7269 7200
(Media Relations)
For further information on ACP Capital, please visit www.acpcapital.com
Notes to Editors:
IFR Capital
IFR Capital (LSE AIM: IFR) is an acquisition platform targeting small and
medium-sized businesses in the continental European food industry across three
sub-sectors: retail (mainly shops/ restaurants), industry (wholesale and
production), and distribution. Founded in October 2006 by ACP Capital and food
retail entrepreneur Heiner Kamps, IFR was admitted to trading on AIM in November
2006 after raising approximately Euro135 million pre costs.
IFR is currently considering various opportunities in the European food sector
with a view to acquiring potentially synergistic businesses that would help
propagate the company's further growth. IFR recently acquired 100% of the fully
diluted share capital of Homann Chilled Food GmbH for Euro89 million, representing
a significant step towards the vision of creating a diversified European food
enterprise. Further opportunities include the ongoing expansion of IFR's new
premium bakery brand Bastian's to major European cities. Further details of
these opportunities will be announced as they become available.
Ultimately, IFR's intended long-term strategy is to create a leading,
vertically-integrated food business with turnover of at least Euro1.5 billion by
2009 and an EBITDA margin of approximately 10%. IFR benefits from the
operational management of Heiner Kamps as well as the broad financing experience
and capabilities of ACP Capital.
Heiner Kamps
Heiner Kamps, the highly regarded European retail entrepreneur, is responsible
for operational management of IFR Capital. Mr Kamps has extensive knowledge of
the retail business across Europe and is the trustee of the humanitarian Heiner
Kamps foundation 'Bread against Misery', which was founded in 2000.
ACP Capital
ACP Capital (LSE AIM: APL) is a Jersey-incorporated specialist integrated
finance and asset management company focusing on both the asset-backed and non
asset-backed sectors. As an integrated finance specialist, ACP Capital offers a
combination of equity, mezzanine and senior debt to companies in niche markets,
such as the German 'Mittelstand' (small and middle-sized privately-owned
companies), and for asset backed transactions, for example, in the real estate
and infrastructure sectors. The company intends to put in place levered loan and
non-investment grade funding vehicles in order to complement its current product
base with a view to providing financing solutions across the capital structure.
INTERIM CONSOLIDATED INCOME STATEMENT
for the six month ended 30 June 2007
Unaudited 13.10.2006
to
2007 31.12.2006
Euro000 Euro000
Sales 164,283 0
Other operating income 4,450 0
Cost of materials -67,599 0
Personnel expenses -57,219 0
Amortization and depreciation expenses -6,444 0
Other operating expenses -38,925 -723
Loss from operations -1,454 -723
Finance income 2,288 402
Finance expenses -5,267 -11
Profit before tax -4,433 -332
Income taxes 830 -53
LOSS FOR THE PERIOD -3,603 -385
INTERIM CONSOLIDATED BALANCE SHEET
at 30 June 2007 Unaudited
30 June 2007 31 December 2006
Euro000 Euro000
Non-current assets
Property, plant and equipment 103,323 0
Goodwill 279,672 0
Other intangible assets 179,948 0
Loans 2 0
Other assets 3,039 0
Deferred tax asset 61,733 0
627,717 0
Current assets
Inventories 17,555 0
Trade receivables 20,589 0
Loan receivables 0 30,107
Other receivables 20,315 51
Cash in hand and at bank 20,110 100,858
78,569 131,016
TOTAL ASSETS 706,286 131,016
Equity
Share capital 2,228 1,350
Share premium reserve 213,229 126,324
Other reserves -12 0
Retained Earnings -386 0
Loss for the period -3,603 -386
211,456 127,288
Non-current liabilities
Pensions 64,224 0
Provisions 5,841 0
Other payables 1,039 0
Deferred tax liability 113,989 0
185,093 0
Current liabilities
Trade payables 35,287 0
Interest-bearing loans and 125,878 0
borrowings
Provision 31,780 0
Other payables 116,636 3,706
Income tax payable 156 22
309,737 3,728
Total liabilities 494,830 3,728
TOTAL EQUITY AND LIABILITIES 706,286 131,016
Interim Consolidated Cash Flow Statement
for the six month ended 30 June 2007
2007 2006
Euro000 Euro000
Cash-Flow from operating activities
Loss from operations -1,454 -332
Adjustments to reconcile loss for the period to net cash
flows
Depreciation and amortisation 6,444 0
Loss from the disposal of property, plant and equipment 87 0
Working capital adjustments
Decrease/Increase in trade receivables 1,821 -404
Decrease of inventories 477 0
Decrease in other receivables 350 0
Movements in provisions and pension liabilities -4,508 0
Decrease/Increase in trade payables -2,866 3,705
Decrease in other receivables -647 0
Income tax paid -173 -31
-469 2,938
Cash-Flow from investing activities
Proceeds from the sale of property, plant and equipment 11 0
Purchase of property, plant and equipment -7,253 0
Purchase of intangible assets -1,654 0
Acquisition of subsidiaries, net of cash acquired -23,357 0
-32,253 0
Cash-Flow from financing activities
Repayment of interest-bearing loans and borrowings -43,875 -29,754
Proceeds from issue from shares 0 127,674
Interest paid -4,151 0
-48,026 97,920
Net increase in cash and cash equivalents -80,748 100,858
Cash and cash equivalents at beginning of the period 100,858 0
Cash and cash equivalents at end of period 20,110 100,858
OUTLOOK KEY FIGURES
(Euromio) Pro Forma* Pro Forma** Outlook** Budget Budget
31/12/2006 31/12/2007 31/12/2007 2008 2009
NET SALES 622.1 646.0 509.6 696.6 721.7
NORDSEE 347.7 354.0 354.0 373.0 383.0
HOMANN 273.3 290.6 154.2 319.1 331.9
Bastian's 1.1 1.4 1.4 4.5 6.8
EBITDA 39.8 49.1 40.1 59.4 65.7
NORDSEE 26.9 32.0 32.0 35.0 39.0
HOMANN 16.0 20.0 11.0 27.6 29.5
Bastian's -0.1 0.1 0.1 0.3 0.7
Group Costs -3.0 -3.0 -3.0 -3.5 -3.5
CAPEX 13.9 21.1 18.5 24.4 24.0
NORDSEE 9.5 15.0 15.0 15.0 15.0
HOMANN 4.4 5.6 3.0 7.6 7.8
Bastian's 0.0 0.5 0.5 1.8 1.2
* including Homann for 12 months
** including Homann for only 6 months, i.e. July to December 2007
This information is provided by RNS
The company news service from the London Stock Exchange
END
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