TIDMUKR
RNS Number : 6167D
Ukrproduct Group Ltd
27 June 2019
27 June 2019
UKRPRODUCT GROUP LIMITED
("Ukrproduct", the "Company" or, together with its subsidiaries,
the "Group")
FINAL RESULTS FOR THE YEARED 31 DECEMBER 2018
NOTICE OF AGM
Ukrproduct Group Limited (AIM: UKR), one of the leading
Ukrainian producers and distributors of branded dairy foods and
beverages (kvass), today announces its audited results for the year
ended 31 December 2018.
Copies of the 2018 Annual Report and Accounts, will shortly be
posted to shareholders and will be available on the Company's
website at www.ukrproduct.com. In addition, a Notice of Annual
General Meeting ("AGM"), along with a Proxy Form, will shortly be
posted to shareholders and will be available at the Company's
website at www.ukrproduct.com.
The AGM will be held at the head office of the Company, 10th
Floor, 39-41 Shota Rustaveli Street, 01033 Kyiv, Ukraine at 6.00 pm
(Kyiv time) / 4.00 pm (London time) on 30 July 2019.
For further information contact:
Ukrproduct Group Ltd
Jack Rowell, Non-Executive Chairman Tel: +380 44 232 9602
Alexander Slipchuk, Chief Executive www.ukrproduct.com
Officer
Strand Hanson Limited
Nominated Adviser and Broker Tel: +44 20 7409 3494
Rory Murphy, James Dance, Jack Botros www.strandhanson.co.uk
Ukrproduct Group Ltd is one of the leading Ukrainian producers
and distributors of branded dairy products and kvass, a traditional
fermented beverage. The Group's current product portfolio includes
processed and hard cheese, packaged butter, skimmed milk powder
(SMP) and kvass. Ukrproduct has built a range of recognisable
product brands ("Our Dairyman", "People's Product", "Creamy
Valley", "Molendam", "Farmer's") that are well known and highly
regarded by consumers. Ukrproduct's securities are traded under the
symbol "UKR" on AIM, a market operated by the London Stock
Exchange.
Chairman and Chief Executive's Statement
Trading
During the year to 31 December 2018 ("FY 2018"), the Ukrainian
economy showed moderate growth, accompanied by wage inflation,
which has helped consumer confidence. Ukrproduct Group Ltd
("Ukrproduct", the "Company" or, together with its subsidiaries,
"the Group") continued focusing on cash generation while aiming to
address opportunities in export markets, beverages and B2B, as well
as expanding its dairy business.
The Group reports improved revenue of approximately GBP36,9
million (approximately 1.3 billion UAH). Gross profit in UAH terms
increased 4.3% to approximately 115 million UAH, however, in GBP
terms, the negative impact of exchange rate differences resulted in
a decrease of 2.5% to approximately GBP3.2 million.
The Group reports an operating profit of approximately GBP0.2
million (approximately UAH 6.2 million) in FY2018, compared with an
operating profit of approximately GBP0.5 million (approximately UAH
16.2 million) in 2017.
Overall, for FY 2018, the Company reports net profit of
approximately GBP0.1 million (approximately 2.7 million UAH)
compared to a loss of approximately GBP1.1 million (approximately
40.6 million UAH) in 2017. Net profit for 2018 is lower than
previously expected (as announced on 7 May 2019) as a result of
increased operating expenses. Net profit for FY2018 included lower
finance charges related to the outstanding debt with EBRD, although
total finance expenses increased to approximately GBP0.5 million
(approximately 16.2 million UAH) from approximately GBP0.4 million
(approximately 15.1 million UAH) in 2017.
Overall, the Group reports that its sales volumes have grown by
4%, including sales of branded products in its key packaged butter
and processed cheese segments. However, both export sales volumes
and revenue decreased due to the worldwide contraction of skimmed
milk powder prices. Although the Company continued to capitalise on
its spare dairy processing capacity by acquiring new B2B partners,
Ukrproduct's B2B gross profit slightly decreased in 2018. Whilst
gross profit of branded products showed substantial growth, it was
unfortunately offset by losses caused by the decline in both
skimmed milk powder and butter prices.
Sales of beverages significantly increased as a result of the
Group's targeted marketing initiatives and the introduction of new
drinks.
Financial Position
As at 31 December 2018, Ukrproduct reports net assets of
approximately GBP1.0 million (approximately 35.13 million UAH) and
net current liabilities of approximately GBP0.03 million
(approximately 1.05 million UAH), with cash balances of
approximately GBP0.2 million (approximately 6.4 million UAH).
During FY 2018, the Group met its outstanding obligations,
including the EBRD loan repayments, which were paid on schedule in
the amount of EUR0.52 million.
Outlook
Ukrproduct's strategy going forward is to generate cash by
improving the profitability of its key dairy product and beverage
segments and to further enhance its working capital position.
The Group expects to boost its sales volume and revenue in 2019
by launching new products in its key business areas, introducing
new marketing activities and capitalising further on export
opportunities.
Jack Rowell Alexander Slipchuk
Non-Executive Chairman Chief Executive Officer
Ukrproduct Group
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2018
(in thousand GBP, unless otherwise stated)
Year ended Year ended
---------------------------------------------
31 December 31 December
2018 2017
GBP '000 GBP '000
--------------------------------------------- ------------ ------------
Revenue 36 928 30 525
Cost of sales (33 751) (27 267)
------------ ------------
GROSS PROFIT 3 177 3 258
Administrative expenses (1 061) (1 031)
Selling and distribution expenses (1 799) (1 561)
Other operating expenses (131) (156)
------------ ------------
PROFIT FROM OPERATIONS 186 510
Net finance expenses (494) (437)
Net foreign exchange gain (loss) 398 (1 250)
------------ ------------
PROFIT / (LOSS) BEFORE TAXATION 90 (1 177)
Income tax expense - 62
------------ ------------
PROFIT / (LOSS) FOR THE YEAR 90 (1 115)
============ ============
Attributable to:
Owners of the Parent 90 (1 115)
Non-controlling interests - -
Earnings per share:
Basic (pence) 0,23 (2,81)
Diluted (pence) 0,23 (2,81)
OTHER COMPREHENSIVE INCOME:
Items that may be subsequently reclassified
to profit or loss
Currency translation differences (8) (113)
Items that will not be reclassified
to profit or loss
Gain on revaluation of property, plant
and equipment - -
Income tax in respect of revaluation
reserve - -
------------ ------------
OTHER COMPREHENSIVE INCOME, NET OF
TAX (8) (113)
------------ ------------
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR 82 (1 228)
============ ============
Attributable to:
Owners of the Parent 82 (1 228)
Non-controlling interests - -
Ukrproduct Group
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 December 2018
(in thousand GBP, unless otherwise stated)
As at As at
--------------------------------------
31 December 31 December
2018 2017
GBP '000 GBP '000
-------------------------------------- ------------ ------------
ASSETS
Non-current assets
Property, plant and equipment 6 420 6 288
Intangible assets 524 543
------------ ------------
6 944 6 831
Current assets
Inventories 3 735 2 426
Trade and other receivables 3 156 2 171
Current taxes 349 271
Other financial assets 24 30
Cash and cash equivalents 181 496
------------ ------------
7 445 5 394
------------ ------------
TOTAL ASSETS 14 389 12 225
============ ============
EQUITY AND LIABILITIES
Equity attributable to owners of the
parent
Share capital 3 967 3 967
Share premium 4 562 4 562
Translation reserve (14 902) (14 894)
Revaluation reserve 3 619 3 769
Retained earnings 3 718 3 478
------------ ------------
964 882
Non-controlling interests - -
------------ ------------
TOTAL EQUITY 964 882
Non-Current Liabilities
Bank loans 5 208 5 716
Long-term payables 467 459
Deferred tax liabilities 274 262
------------ ------------
5 949 6 437
Current liabilities
Bank loans 2 455 1 318
Trade and other payables 5 008 3 565
Other taxes payable 13 23
------------ ------------
7 476 4 906
------------ ------------
TOTAL LIABILITIES 13 425 11 343
------------ ------------
TOTAL EQUITY AND LIABILITIES 14 389 12 225
============ ============
Ukrproduct Group
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 31 December 2018
(in thousand GBP, unless otherwise stated)
Attributable to owners of the parent Total Non-con-trolling Total
interests Equity
Share Share Revaluation Retained Translation
capital premium reserve earnings reserve
------------------- --------- --------- ------------ ---------- ------------ ------ ----------------- --------
GBP GBP '000 GBP '000 GBP '000 GBP '000 GBP GBP '000 GBP
'000 '000 '000
------------------- --------- --------- ------------ ---------- ------------ ------ ----------------- --------
As At 1 January
2017 3 967 4 562 3 935 4 427 (14 781) 2 110 - 2 110
Loss for the (1
year - - - (1 115) - 115) - (1 115)
Other
comprehensive
income
Currency
translation
differences - - - - (113) (113) - (113)
--------- --------- ------------ ---------- ------------ ------ ----------------- --------
Total
comprehensive (1
income - - - (1 115) (113) 228) - (1 228)
Depreciation
on revaluation
of property,
plant and
equipment - - (166) 166 - - - -
--------- --------- ------------ ---------- ------------ ------ ----------------- --------
As At 31 December
2017 3 967 4 562 3 769 3 478 (14 894) 882 - 882
========= ========= ============ ========== ============ ====== ================= ========
Profit for
the year - - - 90 - 90 - 90
Other
comprehensive
income
Currency
translation
differences - - - - (8) (8) - (8)
--------- --------- ------------ ---------- ------------ ------ ----------------- --------
Total
comprehensive
income - - - 90 (8) 82 - 82
Depreciation
on revaluation
of property,
plant and
equipment - - (150) 150 - - - -
--------- --------- ------------ ---------- ------------ ------ ----------------- --------
As At 31 December
2018 3 967 4 562 3 619 3 718 (14 902) 964 - 964
========= ========= ============ ========== ============ ====== ================= ========
Ukrproduct Group
CONSOLIDATED STATEMENT OF CASH FLOWS
AS AT 31 December 2018
(in thousand GBP, unless otherwise stated)
Year ended Year ended
--------------------------------------------
31 December 31 December
2018 2017
GBP '000 GBP '000
-------------------------------------------- ------------ ------------
Cash flows from operating activities
Gain (loss) before taxation 90 (1 177)
Adjustments for:
Exchange difference (398) 1 250
Depreciation and amortisation 523 553
Loss on disposal of non-current assets 4 8
Write off of receivables/payables 21 (5)
Impairment of inventories 72 82
Loss from disposal of subsidiaries - -
Interest income - -
Interest expense on bank loans 494 437
------------ ------------
Operation cash flow before working
capital changes 806 1 148
Increase in inventories (1 380) (653)
Decrease / (Increase) in trade and
other receivables (1 096) 298
Increase in trade and other payables 1 437 473
------------ ------------
Changes in working capital (1 039) 118
------------ ------------
Cash (used in)/ generated from operations (233) 1 266
Interest received 2 1
Income tax paid 1 (31)
------------ ------------
Net cash (used in)/ generated from
operating activities (230) 1 236
Cash flows from investing activities
Purchases of property, plant and equipment
and intangible assets (181) (93)
Proceeds from sale of property, plant
and equipment - 1
Repayments of loans issued 7 (15)
------------ ------------
Net cash used in investing activities (174) (107)
Cash flows from financing activities
Interest paid (421) (378)
Decrease in short term borrowing 901 -
Repayments of long term borrowing (459) (259)
------------ ------------
Net cash (used in)/ generated from
financing activities 21 (637)
Net Increase / (decrease) in cash
and cash equivalents (383) 492
Effect of exchange rate changes on
cash and cash equivalents 68 (171)
------------ ------------
Cash and cash equivalents at the beginning
of the year 496 175
Cash and cash equivalents at the end
of the year 181 496
============ ============
These consolidated financial statements were approved and
authorised for issue by the Board of Directors on 26 June 2019 and
were signed on its behalf by Alexander Slipchuk.
Nature of Financial Information
The financial information contained in this announcement does
not constitute statutory accounts as defined under section 113 of
the Companies (Jersey) Law 1991 but has been extracted from the
Group's 2018 statutory financial statements. It contained no
statement under section 113B of the Companies (Jersey) Law 2011.
The financial statements for 2018 will be delivered to the
Registrar of Companies after adoption at the Company's Annual
General Meeting.
EXTRACTS FROM NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of preparation
The consolidated financial statements have been prepared on a
historical cost basis, except for significant items of property,
plant and equipment which have been measured using revaluation
model. The consolidated financial statements are presented in
British Pounds Sterling (GBP) and all values are rounded to the
nearest thousand (GBP000) except where otherwise indicated.
2. Going concern
The consolidated financial statements have been prepared on the
assumption that the Group is able to continue its operations on a
going concern basis for the foreseeable future.
For the year ended 31 December 2018, net profit amounted to
approximately GBP0.1 million (year ended 31 December 2017 net loss
of approximately GBP1.1 million). As at 31 December 2018, the Group
continued to breach certain loan covenant terms of its loan with
European Bank for Reconstruction and Development ("EBRD").
These conditions indicate a significant uncertainty with regard
to the Group's ability to continue its operations on a going
concern basis.
According to the Company's management, the Group's ability to
continue its operations on a going concern basis is permissible
based on the following assumptions:
1. The Group received waivers from EBRD - in respect of the
annual financial statements for 2018 and the first quarter of 2019
and the Board believes that EBRD will not demand accelerated
repayment of the loan due to the breach of covenants;
2. The Group continues to repay the loan to EBRD according to
the agreement and timely settled the last two tranches after the
reporting date;
3. On 7 February 2018, the Company announced that it had entered
into an agreement for a new loan facility with PJSC Creditwest Bank
("Creditwest Bank"), under which it could draw down up to UAH 65
million for refinancing purposes (to repay the OTP Bank Loan) as
well as for financing working capital ("New Loan Agreement"). All
amounts drawn down by the Group under the New Loan Agreement,
together with interest accrued, is due to be repaid on 5 February
2021. The interest rate under the New Loan Agreement is fixed at
18% per annum. Any draw down under the facility is secured on
appropriate collateral provided by the Group (real estate,
equipment etc), including non-current assets located in Zhytomyr
and equipment for production of Zhiviy Kvass. On 9 February 2018,
the Group announced that it had drawn down UAH 32.3 million under
the terms of the New Loan Agreement in order to fully repay all
amounts outstanding to OTP Bank. Accordingly, the Group
extinguished all outstanding liabilities to OTP Bank; and
4. The Group is planning to raise funding in H2 2019.
The Group's current strategy is to further expand its export
sales worldwide with a focus on Asia and Africa. CIS markets also
remain strategically important for the Group not least Kazakhstan
where the Company increased its export volumes. Ukrproduct is also
looking to expand domestic sales in Ukraine driven in part by the
introduction of new products and rebranding. The Group continues to
boost its dairy processing volumes via close cooperation with local
farmers and cooperatives, thereby increasing its capacity
utilization.
3. Bank Loans and Overdrafts
On 7 February 2018, the Company announced that it had entered
into an agreement for a new loan facility with PJSC Creditwest Bank
("Creditwest Bank"), under which it could draw down up to UAH 65
million for refinancing purposes (to repay the OTP Bank Loan) as
well as for financing working capital ("New Loan Agreement"). All
amounts drawn down by the Group under the New Loan Agreement,
together with interest accrued, is due to be repaid on 5 February
2021. The interest rate under the New Loan Agreement is fixed at
18% per annum. Any draw down under the facility is secured on
appropriate collateral provided by the Group (real estate,
equipment etc), including non-current assets located in Zhytomyr
and equipment for production of Zhiviy Kvass.
On 9 February 2018, the Group announced that it had drawn down
UAH 32.3 million under the terms of the New Loan Agreement in order
to fully repay all amounts outstanding to OTP Bank. Accordingly,
the Group extinguished all outstanding liabilities to OTP Bank.
As at 31 December 2018 the Group has two loans: the loan from
Creditwest Bank in the amount of 1 850 thousand GBP (in UAH 65,0
million) and the loan from EBRD in the amount of 5,813 thousand GBP
(in EUR 6,439 thousand).
During 2018, the Group fulfilled its obligations under the EBRD
loan in accordance with the agreement. The Group completed
installments of payments and in accordance with an agreement
between all parties, the payment of the tranche in December was
postponed to subsequent periods.
Fixed assets with a net book value of GBP 4,872 thousand at 31
December 2018 (2017: GBP 4,829 thousand) were pledged as
collateral.
Assets pledged as security for the EBRD loan include property
and land in Starokonstantinov, equipment for dairy production and
production of hard cheese, as well as trademarks.
Bank Currency Type Opening Termination Interest Limit As At As at
date date rate 31 December 31 December
2018 2017
------------ ---------- -------- ------------ ------------- ---------
GBP GBP '000 GBP '000
'000
------------ ---------- -------- ------------ ------------- --------- ------ ------------- -------------
EBRD EUR Loan 31.03.2011 30.11.2024 5-7% 7 493 5 813 6 178
Credit
OTP Bank UAH line 09.08.2011 09.02.2018 2,12% 1 139 - 856
Creditwest
Bank Credit
Ukraine UAH line 05.02.2018 05.02.2021 15,89% 1 850 1 850 -
Total 7 663 7 034
============= =============
The average interest rate as at 31 December 2018 was 6,15%
(2017: 5,27%).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR SEDSIWFUSELM
(END) Dow Jones Newswires
June 27, 2019 02:01 ET (06:01 GMT)
Ukrproduct (AQSE:UKR.GB)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
Ukrproduct (AQSE:UKR.GB)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024
