RNS Number:0324S
IFR Capital PLC
10 April 2008
IFR CAPITAL PLC
Preliminary Results for the financial year ended 31 December 2007
IFR Capital Plc ('IFR' or the 'Company': IFR.LN), focusing on consolidation
opportunities in the European food retail sector, today is pleased to announce
its preliminary results for the financial year ended 31 December 2007.
Highlights
* Growth in Turnover of 37% to Euro 481m (2006: EUR 351m)
* Growth in EBITDA of 56% to Euro 40.2m (2006: EUR 25.8 m)
* Successful acquisition strategy with the acquisitions of Homann and
Bastians completed during the year and Hamker acquired in 2008
* Integration of the group and building of the brand ongoing
* Strong prospects for continued profitable growth - range of
attractive investment opportunities identified
Heiner Kamps, CEO and partner of IFR, stated that he was satisfied with the
successes achieved so far: "The growth of the group and the integration of the
companies we have acquired have met our expectations, despite the difficult
backdrop seen both in the financial but also in the commodity markets."
Enquiries:
Chris Wells, Collins Stewart Europe Limited +44 (0)20 7523 8350
(Nominated Advisor to the Company)
Claus Schlueter, IFR Capital +49 471 133278
For further information on IFR, please visit www.ifrcapital.eu
Operational review
The results for the period include contributions from Nordsee GmbH ("Nordsee")
since January 2007, Bastian's GmbH ("Bastian's") since April 2007, Homann
Chilled Food GmbH ("Homann") since July 2007. The acquisition of Hamker
Lebensmittel Beteiligungs GmbH & Co. KG ('Hamker') was completed at the end of
January 2008.
IFR is pleased to announce it has achieved its stated targets for 2007. The
Company generated sales of EUR 481 million (2006: EUR 351 million) and an
operating EBITDA of EUR 40.2 million (2006: EUR 25.8 million) representing an
increase of 56%. The group generated net profit of EUR 14.6 million (2006: EUR
-0.4 million) with an earnings per share of EUR 0.07 (2006: EUR 0.0).
A breakdown of the Company's sales for the financial year are shown below:
EUR m Financial year ended 31 December 2007
NORDSEE Group (as of 10.01.2007) 342.9
HOMANN Group (as of 01.07.2007) 136.6
Bastian's (as of 01.04.2007) 1.0
Total sales 480.5
Nordsee - Europe's leading supplier of fish and seafood specialities with
branches in Germany, Austria, Switzerland and the Czech Republic - has
contributed EUR 348.4 million to the turnover. A majority of the branches have
been modernised since the acquisition , unprofitable branches have been closed
and the product range has been widened. With an EBITDA of EUR 31.9 million
(2006: EUR 25.8 million) profitability has increased by 24%.
In 2008, the internationalisation of the Nordsee brand is being continued.
Licence agreements with companies in Bulgaria, Hungary, Romania and in the
Middle East have already been finalised while agreements with companies in
Turkey and Poland are nearing completion. In the German market new store
concepts like Campo's and Strandhaus, which are currently being tested in
Austria, should provide additional growth impulses.
The delicatessen supplier Homann, which was acquired on 4 July 2007, generated
sales of EUR 137 million and an EBITDA of EUR 12.7 million for the approximately
6 month period since acquisition, ahead of expectations. On 28 January 2008 IFR
acquired Hamker, the delicatessen producer which is an important player in the
condiment market both in the food retailing and discount distribution channels,
with an annual turnover of EUR 150 million. The acquisition of Hamker highly
complements the Homann business which mainly covers chilled salads and
convenience products and the Hamker business is being incorporated into Homann.
This is expected to generate significant synergy effects in the coming years.
Under the Homann group brand, IFR have established a company in the delicatessen
industry with a turnover of EUR 430 million Through TV advertising, which will
start in the early summer, IFR will also invest in the Homann brand and
strengthen it in the long term.
With two branches Bastians is an innovative and very successful premier baker
and will now embark on a phase of expansion.
Financial Review
Operating performance:
The Group generated revenue of EUR 480.5m in fiscal year 2007 which can be
broken down between the following sectors and geographies:
Sector breakdown:
EUR m Financial year ended 31 December 2007
Retail / Restaurants 343.9
Production / Wholesale 136.6
TOTAL 480.5
Geographical breakdown:
EUR m Financial year ended 31 December 2007
Germany 405.8
Austria 63.8
Other 10.9
TOTAL 480.5
As the revenue of the HOMANN Group, in particular, only covers the second half
of 2007 due to its first-time consolidation as of June 30, 2007, this breakdown
is only of limited informative value as regards to the sustained revenue
contributions of the group companies to overall consolidated revenue.
The reconciliation of EBITDA to consolidated profit breaks down as follows:
EUR m Financial year ended 31 December 2007
EBITDA (adjusted) 40.2
- Exceptional items -1.0
EBITDA after special items 39.2
-Depreciation, amortization and impairment losses on intangible assets -21.6
and property, plant and equipment
EBIT 17.6
- Financial result -18.8
Earnings before tax -1.2
Income taxes 15.8
Profit for the period 14.6
Before exceptional items of Euro 1.0 million the Company generated a total EBITDA
of Euro40.2 million. Overall, the result was in line with expectations set in
connection with the IPO, based on the acquisitions the Company has secured to
date. Due to the tax reductions in connection with the German corporate tax
reform passed in July 2007, deferred tax losses decreased considerably, which
contributed greatly to achieving the positive tax result of EUR 15.8 million.
Due to these non-recurring tax effects, the consolidated result for 2007 of EUR
14.6 million was very positive.
Capital structure:
The Company's acquisition of Hamker was financed through the issue of Euro50
million of preferred equity on similar terms to the Company's existing preferred
equity, with accruing dividend provisions.
In addition, on 20 December 2007 the bridge financing provided by ACP was
replaced by a new financing comprising Euro 175 million senior and second lien
facilities and Euro 48.2 million preferred shares. It is the Company's intention to
seek to refinance its preferred equity within 2008.
Dividend:
The Directors do not intend to recommend a dividend for this financial year and
will reinvest the cash generated from the Company's operations into further
development of the business.
Current trading and Prospects
The Company expects to continue the integration of its acquisitions through 2008
and has already implemented the first steps in the Homann and Hamker businesses,
which are already showing positive results. At Nordsee, the Company will
continue to build on the achieved turnaround. In spite of the challenging
situation on the raw material market the Company remains positive of its
prospects.
IFR expects to generate a turnover of about Euro 780 million in 2008, and the
Board reiterates its target of a sales volume of at least Euro1.5 billion with
an EBITDA margin of approximately 10% by the end of 2009.
The Company has also appointed Rothschild as an independent financial adviser in
order to assist the group as it seeks to explore its future strategic options.
Consolidated Income Statement
for the year ended 31 December 2007
2007 Oct. 13, to Dec. 31, 2006
EUR k EUR k
Revenue 480,523 0
Changes in inventories -1,467 0
Other operating income 13,596 0
Cost of materials -220,812 0
Personnel expenses -133,698 0
Depreciation, amortization and impairment losses -21,627 0
Other operating expenses -98,959 -723
Profit / (loss) from operations 17,556 -723
Finance income 3,436 402
Finance costs -22,189 -12
Loss before income taxes -1,197 -333
Income tax credit / (expense) 15,782 -53
Profit / (loss) for the period 14,585 -386
Attributable to:
- Equity holders of the parent 14,585 -386
- Minority interests 0 0
14,585 -386
Earnings / (loss) per share:
basic/diluted for profit / (loss) for the period
attributable to ordinary
equity holders of the parent EUR 0,07 EUR -0,00
Consolidated Balance Sheet
as at 31 December 2007
Dec. 31, 2007 Dec. 31, 2006
EUR k EUR k
ASSETS
Non-current assets
Property, plant and equipment 106,551 0
Intangible assets 480,933 0
Other financial assets 432 30,107
Other assets 2,595 0
Deferred tax assets ,0 0
590,511 30,107
Current assets
Inventories 19,149 0
Trade receivables 20,170 0
Other financial assets 17,631 51
Other assets 1,219 0
Cash and cash equivalents 22,455 100,858
80,624 100,909
TOTAL ASSETS 671,135 131,016
EQUITY AND LIABILITIES
Equity
Issued capital 2,228 1,350
Share premium 213,229 126,324
Other reserves -14 0
Retained earnings / (losses) 16,761 -386
232,204 127,288
Non-current liabilities
Interest-bearing loans and borrowings 166,301 0
Pension provisions and similar obligations 60,488 0
Other provisions 12,138 0
Other financial liabilities 48,987 0
Deferred tax liabilities 59,810 0
347,724 0
Current liabilities
Interest-bearing loans and borrowings 1,638 0
Other provisions 23,634 18
Trade payables 44,054 3,688
Other financial liabilities 16,933 0
Other liabilities 4,423 0
Income tax liabilities 525 22
91,207 3,728
Total liabilities 438,931 3,728
TOTAL EQUITY AND LIABILITIES 671,135 131,016
Consolidated Cash Flow Statement
for the year ended 31 December 2007
2007 Oct. 13, to
December 31, 2006
EUR k EUR k
Cash flows from operating activities
Loss before income tax -1,197 -333
Adjustments to reconcile loss before tax to net cash flows
Non-cash
Depreciation and impairment of property, plant 21,627 0
and equipment and intangible assets
Loss on disposals of property, plant and 251 0
equipment
Interest income -3,436 -402
Interest expense 22,189 12
Movement in provisions, pensions and similar -5,489 0
obligations
Working capital adjustments
Increase (-)/decrease (+) of trade receivables 2,512 -2
Increase (-)/decrease (+) of inventories -1,097 0
Increase (-)/decrease (+) of other receivables 211 -2
Increase (+)/decrease (-) of trade payables -4,198 3,706
and other payables
Income tax paid -199 -31
Cash flows from operating activities 31,174 2,948
Cash flows from investing activities
Proceeds from disposals of property, plant and equipment 36 0
Purchase of property, plant and equipment -23,079 0
Purchase of intangible assets -645 0
Acquisition of subsidiaries, net of cash acquired -94,293 0
Disbursements of loans 0 -30,076
Interest received 3,515 323
Cash flows from investing activities -114,466 -29,753
Cash flows from financing activities
Proceeds from the issue of shares 0 127,674
Proceeds from the issue of preference shares 48,200 0
Repayments of loans and other short or long-term borrowings -17,521 0
Payment of finance lease liabilities -650 0
Interest and transaction costs paid -25,126 -11
Cash flows from financing activities 4,903 127,663
Net (decrease)/increase in cash and cash equivalents -78,389 100,858
Net foreign exchange differrence -14 0
Cash and cash equivalents at 1 January 100,858 0
Cash and cash equivalents at 31 December (Note 20) 22,455 100,858
Key Notes
Segment Reporting
The primary segment reporting format is determined to be business segments as
the Group's risks and rates of return are affected predominantly by differences
in the products and services produced. Secondary information is reported
geographically. The operating businesses are organized and managed separately
according to the nature of the products and services provided, with each segment
representing a strategic business unit that offers different products and serves
different markets.
Transfer prices between business segments are set on an arm's length basis in a
manner similar to transactions with third parties. Segment revenue, segment
expense and segment result include transfers between business segments. Those
transfers are eliminated in consolidation. In fiscal year 2007, the transfers
between segments were immaterial.
Business Segments
The Group has the two main segments Retail/Restaurants and Production/Wholesale.
The segment Retail/Restaurants comprises NORDSEE and BASTIAN's.
NORDSEE is the largest European chain of fast food restaurants specializing in
fish and seafood and has stores in Germany, Austria, Switzerland and the Czech
Republic. NORDSEE comprises a chain of more than 400 stores which are operated
under the well-established NORDSEE brand. NORDSEE's restaurants are
predominantly owner-operated, but it also has franchise operations.
BASTIAN's makes and sells all kinds of bakery products and currently operates
stores in Dusseldorf and Cologne.
The segment Production/Wholesale comprises HOMANN.
HOMANN produces and markets chilled salads, fish delicacies, mayonnaise,
dressings, sauces, desserts and convenience products. Its chilled food is
produced at three plants in Dissen a.T.W., Germany, and is largely sold in the
German market (93%). The most significant customers are the retail trade, as
well as wholesalers, restaurants and industry.
Geographical Segments
The Group's geographical segments of the group are based on sales to external
customers in correspondence with the geographical location of its customers.
The following table presents revenue and profit information and certain asset
and liability information regarding the Group's business segments for the fiscal
year ended December 31, 2007
Retail/ Productions/ Other segments/ Total
holding functions segments
Restaurants Wholesale
Revenues
Sales to external customers 343,893 136,630 0 480,523
Result
Segment result 13,377 6,511 0 19,888
Unallocated expenses -2,332 -2,332
Profit before tax, finance 17,556
costs and finance income
Net finance costs -18,753
Tax income 15,782
Profit for the period 14,585
Assets and liabilities
Segment assets 361,918 305,328 0 667,246
Unallocated liabilities 0 0 3,889 3,889
Total liabilities 361,918 305,328 3,889 671,135
Segment liabilities 212,448 173,279 0 385,727
Unallocated liabilities 0 0 53,204 53,204
Total liabilities 212,448 173,279 53,204 438,931
Other segment information
Investments
- Property, plant and equipment 64,744 59,757 11 124,512
- thereof from acquisition of 45,870 55,819 0 101,689
subsidiaries
- Intangible assets 282.141 202.596 150 484.887
- thereof from acquisition of 281.522 202.464 0 483.986
subsidiaries
Depreciation and amortization
- Property, plant and equipment 14,407 3,264 4 17,675
- Intangible assets 2,038 1,889 25 3,952
Impairment losses recoqnized in 815 328 0 1,143
profit and loss
Prior year expenses, assets and liabilities all relate to 'Other segments
holding functions'.
Geographical Segments
The following table presents revenue and certain asset information regarding the
Group's geographical segments for the fiscal year ended December 31, 2007.
Germany Austria Other Total
Revenue
External sales 405,773 63,797 10,983 480,523
Other segment information
Segment assets 635,954 31,292 0 667,246
Unallocated assets 0 0 3,889 3,889
Total assets 635,954 31,292 3,889 671,135
Investments
- Property, plant and equipment 18,640 4,183 0 22,823
- Intangible assets 849 52 0 901
This information is provided by RNS
The company news service from the London Stock Exchange
END
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