Roebuck Food Group swings to operating profit in first half
By Josh White
Date: Wednesday 28 Sep 2022
(Sharecast News) - Roebuck Food Group announced a 14% improvement in first-half sales on Wednesday, to £12.5m.
The AIM-traded firm, formerly known as Norish, said its operating profit from continued operations came in at £0.2m for the six months ended 30 June, swinging from a loss of £0.2m a year ago.
Net debt totalled £1m at period end, compared to net cash of £1.4m at the end of December.
The board said that mainly arose after settling £1.5m of liabilities over the sale of its cold stores.
Operationally, milk production increased 8.4%, while the firm's operating margin in its sourcing division increased to 1.9% from 1.2%, and the operating profit from the dairy division increased to £0.2m from breakeven.
"Our subsidiary Grass to Milk Company produced and shipped A2-protein liquid dairy products for the Chinese market which we exited in the first half of 2022 due to ongoing lockdowns, supply chain disruptions and cost inflation," the board said in its statement.
"We have impaired the intangible asset along with costs totalling £1m.
"On 28 October, we sold the cold store business, resulting in a profit on disposal of £40m."
Following the sale, the company made a capital return to shareholders of £1.66 per share, totaling £49.9m, in November last year.
"In the first half of the year we paid £1.5m in discharging liabilities in respect of the sale of the business.
"Your board is conducting a strategic review of the group's businesses, with a view to maximising shareholder value or liquidity in the company's shares.
"The board does not recommend the payment of an interim dividend, unchanged from last year."
Reporting by Josh White at Sharecast.com.
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