TIDMKIO
KIOTECH INTERNATIONAL PLC (AIM: KIO)
("Kiotech" or "the Company")
Kiotech International plc, a leader in the manufacturing and
marketing of high performance natural feed additives for global
agricultural and aquaculture markets with products which improve
the health and output of animals, is pleased to announce its
interim results for the 6 months to 30 June 2011.
Key points: Financial
-- 32% increase in profit before tax and share-based payments to GBP1.04m
(2010: GBP0.79m)
-- 12% increase in earnings per share to 4.03 pence per share (2010: 3.61
pence per share)
-- 5 percentage point increase in gross margin to 31% (2010: 26%)
-- Cash balance of GBP3.44m at 30 June 2011 (31 December 2010: GBP3.53m)
Key points: Operational
-- Integration of Optivite completed with benefits coming through
-- Investment in 3rd feed additive production line completed
doubling production capacity
-- 11% increase in Kiotechagil sales
-- China subsidiary reaches the significant milestone of breakeven
enabling future growth opportunities to be self-financing
Richard Rose, Chairman, commented:
"The Group has delivered a strong performance in the first half
of the year and this is continuing. The improvement in our gross
margin reflects our focus on our higher value feed additive ranges
and close attention to selling prices.
The Group is well positioned to continue its success in the
second half of the year and is currently evaluating a number of
acquisition opportunities, which could potentially meet our
criteria for value creation"
Enquiries:Kiotech International plcDavid Bullen, Chief Executive
Officer +44 (0)7919 552 040Karen Prior, Group Finance Director +44
(0)1909 537 380
FinnCap +44 (0)20 7600 1658Matthew Robinson / Henrik Persson -
Corporate FinanceStephen Norcross - Corporate Broking
KIOTECH INTERNATIONAL plc.
Unaudited interim results for 6 months to 30 June 2011
Chairman's statement
I am pleased to report that trading in the first half of the
year has been most encouraging with profit well ahead of the same
period last year.
The Group is focused on supplying high performance natural
animal feed additives for global agricultural markets through its
strong trading brands Kiotechagil and Optivite. Management have
successfully refocused the business on higher margin products and
in addition acted quickly to ensure raw material price increases
have been passed on through selling prices.
Results
In the six months to 30 June 2011 profit before tax and
share-based payments increased by 32% to GBP1.04m (2010: GBP0.79m).
As a consequence of the strategic focus on higher margin products
and markets, like-for-like sales reduced from GBP11.08m to GBP9.36m
whilst gross margin was maintained at GBP2.88m (2010: GBP2.89m)
reflecting a significant increase in gross margin percentage from
26% to 31%. Administration costs have fallen by 11% benefiting from
acquisition synergies and initiatives.
Our liability for tax has been provided at the current
prevailing rates although research and development tax credits are
likely to reduce the eventual tax charge and the effective tax rate
once the benefit is known with greater certainty. 2010 benefited
from favourable adjustments to prior year computations resulting in
a first half credit of GBP0.13m.
Basic earnings per share increased by 12% from 3.61 pence per
share to 4.03 pence per share and diluted earnings per share rose
from 3.57 pence per share to 3.99 pence per share.
The balance sheet remains strong with good cash generation and
the Company ended the period with a cash balance of GBP3.44m.
Optivite integration
The integration of Optivite, purchased in September 2009, is
complete and the Group's focus is now to build on its trading
brands within the UK and internationally. Capital investment
continues to improve production efficiencies targeted principally
at minimising waste whilst increasing throughput; further benefits
from investment are likely to be evident in the second half of the
year.
The success of the integration process and in particular the
consolidation of the production units has recently been
acknowledged by FEMAS, the main industry and globally recognised
accreditation body.
Operations - International agriculture
The international division, operating under the Optivite and
Kiotechagil brands, continued to make progress during the period
and managed to maintain margins while addressing significant
pressures in the raw material markets by an active pricing policy.
Overall, out of 61 countries supplied, there have been particularly
strong performances in Argentina, Bulgaria, Chile, Greece, Japan,
Malaysia, Philippines and Syria.
At the beginning of the year we completed a re-structuring
programme within the export customer service department and the
Optivite International sub-division. A key feature of the
integration was the closure of our Aldermaston facility and the
transfer of the Kiotechagil customer service department to Manton
Wood. This consolidation has been a success and steps are underway
to combine the back-office processes of the two trading brands in
order to provide greater flexibility to facilitate and support the
continuing growth of the international division. This development
will ensure that we are well placed to continue to provide the most
effective and efficient service to our overseas customer base.
The Optivite International brand had a very strong year in 2010
and is now consolidating that growth. In order to increase
Optivite's brand presence internationally, with new product
launches and entry into new territories, we are recruiting
international account managers who have significant feed additive
experience, both technically, commercially and globally.
The main focus of the international sales team will continue to
be the introduction of new products to our distributors.
Kiotechagil has continued the roll out of Neutox, a feed safety
product, and pHorce, a high content, low inclusion acidifier along
with the introduction of a new enzyme range, Feedzyme. All these
products have been well received. Optivite International has also
started to make inroads with various new products, such as
Red-Lite, a chemical-free insect control product for poultry and
grain storage and Optimax, a high strength acidifier, as well as a
new improved formulation of our omega 3 product Optomega, which has
only been possible due to the investment in the new production
line.
In China we have moved away from a direct sales approach in
selling feed additives to the large mills to forming strategic
alliances within the premix segment. These alliances are beginning
to show benefits by accelerating access into the complex buying
network of the larger organisations by leveraging the established
relationships of our partners. Working through the premix segment
is also beneficial to our partners who can now add value to their
product by utilising both our feed additive range and also the
nutritional expertise of Kiotech.
We are also appointing local distributors to service small to
medium sized farmers and end users, which would otherwise be very
difficult and costly to reach directly owing to the geographical
size of China.
Success in China will not be achieved overnight, it requires
persistence and patience. The acceptance of Genex®, an Optivite
registered performance enhancing acid and essential oil
combination, within a few of the top feed mills in China,
demonstrates that our strategy is beginning to show results. The
volumes are currently small but as confidence continues to grow,
the expectation is that the volumes will increase
significantly.
In Brazil, we are now selling our acidifier products to some of
the major integrators. Our Brazilian distributor visited the Manton
Wood facility in the first half of the year to finalise the
distribution strategy and the focus leading into the year-end will
be on the implementation of this and we anticipate volumes to grow
as our products gain wider use respectively.
Operations - UK agriculture
Following the re-structure of our UK agriculture business,
including the exit from Optivite's low margin commodity products,
sales have been focused on our higher margin feed additive
products. These ranges, manufactured at Manton Wood, have been sold
to the major integrators and compounders along with vitamin and
mineral premixes to the pig and poultry home-mix segment. The
business re-structure has enabled the corporate identity to be
positively reinforced within the UK agricultural market and the
brand awareness of Optivite within the customer base has
strengthened significantly.
The strategy to focus on the more sophisticated, added value,
in-house designed ranges, which is our core competence, is now
beginning to manifest itself in the results through an increase in
profitability despite the drop in sales revenue. Within the
integrator and compound feed market, the decision making process is
complex and lengthy, involving technicians, nutritionists, finance
and operations thus creating a time lag from initiation through to
sales.
Further specific market-led opportunities for our products are
being developed within the pig sector as concerns relating to
disease legislation such as salmonella control continue to
increase. Optivite is involved in discussions with industry leading
bodies to formulate control programmes that will be set as
standards for farmers, incorporating several of the Group's leading
antimicrobial brands.
The organic market remains strained owing to the current
economic climate and this is reflected in lower consumer uptake.
Sales should benefit from the anticipated implementation of further
EU legislation in January 2012 requiring sole use of organic raw
materials in feed rather than the current 95%. We anticipate this
legislation to be a positive driver for Vitrition, our organic feed
brand, as we believe many compound feed mills will question their
future in the organic feed market. In contrast to some other
manufacturers, Vitrition has a dedicated organic feed content, mill
and formulations which make it easier for the company to comply
with the new legislation.
Vitrition is trading well, strengthening its margins and raising
profitability while responding quickly to raw material price rises.
This action has managed to abate the well publicised grain price
inflation experienced during the first half of 2011.The outlook for
Vitrition remains positive with many customer contracts and raw
material prices agreed into 2012.
Operations - Aquaculture
Trials of Aquatice® continue with a number of farmers and larger
animal health companies in South East Asia; recent trials in the
Philippines and China had some encouraging results. We are working
closely with the industry in the region and the technology is
attracting increasing interest.
We are in the process of moving production of Aquatice® from
outsourced manufacture to our Manton Wood site; this will lower
costs and increase control and flexibility.
Discussions and collaboration are continuing with some key
partners, which we hope will lead to distribution agreements and
possibly licensing of the technology.
Outlook
The Group has delivered a strong performance in the first half
of the year and this is continuing. The improvement in our gross
margin reflects our focus on higher value feed additive ranges and
close attention to selling prices.
The Group is well positioned to continue its success in the
second half of the year and is currently evaluating a number of
acquisition opportunities, which could potentially meet our
criteria for value creation"
Richard S RoseChairman15 September 2011
Unaudited consolidated
income statement
For the six months
ended 30 June 2011
Six months to Six months to Year ended
30.06.11 30.06.10 31.12.10
Note GBP000 GBP000 GBP000
Revenue 3 9,364 11,082 21,565
Cost of sales (6,484) (8,193) (15,618)
Gross profit 2,880 2,889 5,947
Administrative expenses (1,909) (2,135) (4,225)
Closure - - (261)
and restructuring
costs
Operating profit 971 754 1,461
Interest receivable 19 23 56
(net)
Profit before income tax 990 777 1,517
Income tax expense (245) (105) (229)
Profit for the 745 672 1,288
period from
continuing operations
Profit for the year
attributable to:
Owners of the parent 734 660 1,282
Non- controlling 11 12 6
interest
Profit for the year 745 672 1,288
The consolidated
income statement
has been prepared on the
basis that all
operations
are continuing
operations.
Earnings per share
attributable to
the equity holders
of the company:
As restated
Basic earnings per 5 4.03 3.61 7.01
share (pence)
Diluted earnings per 5 3.99 3.57 6.94
share (pence)
Unaudited consolidated
statement
of comprehensive income
For the six months
ended 30 June 2011
Six months to Six months to Year ended
30.06.11 30.06.10 31.12.10
GBP000 GBP000 GBP000
Profit for the period 745 672 1,288
Currency translation 5 - 5
differences
Total comprehensive 750 672 1,293
income
for the year
Attributable to:
Owners of the parent 739 660 1,287
Non-controlling interest 11 12 6
Total comprehensive 750 672 1,293
income
for the year
The above consolidated
income
statement should be read
in conjunction with the
accompanying notes.
Unaudited consolidated balance sheet
As at 30 June 2011
As at As at As at
30.06.11 30.06.10 31.12.10
Note GBP000 GBP000 GBP000
Non current assets
Intangible assets 6 7,086 6,829 7,007
Property,plant and equipment 2,862 877 2,619
Deferred income tax assets 289 - 289
10,237 7,706 9,915
Current assets
Inventories 1,236 1,217 1,200
Trade and other receivables 4,720 5,255 5,284
Cash and cash equivalents 3,437 4,554 3,531
9,393 11,026 10,015
Total Assets 19,630 18,732 19,930
Equity and liabilities
Called up share capital 4,209 4,209 4,209
Share premium account 2,957 2,957 2,957
Special reserve 4,441 4,441 4,441
Other reserves 668 517 613
Retained earnings 3,085 2,105 2,517
15,360 14,229 14,737
Non-controlling interests 62 57 51
Total equity 15,422 14,286 14,788
Non-current liabilities
Borrowings - 13 3
Deferred income tax liabilities 987 498 944
987 511 947
Current liabilities
Trade and other payables 3,015 3,420 3,907
Corporation tax 206 515 288
3,221 3,935 4,195
Total liabilities 4,208 4,446 5,142
Total equity and liabilities 19,630 18,732 19,930
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
Unaudited consolidated statement of changes in equity
For the six months ended 30 June 2011
Attributable to the owners Share Share Special Other Retained Non-controlling Total
of the parent Capital Premium Reserve Reserves Earnings Interests Equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1 January 2010 4,209 2,957 4,441 508 1,445 45 13,605
Profit - - - - 660 12 672
Total comprehensive income for the year - - - - 660 12 672
Transactions with owners
Share based payment adjustments - - - 9 - - 9
Transactions with owners - - - 9 - - 9
Balance at 30 June 2010 4,209 2,957 4,441 517 2,105 57 14,286
Profit - - - - 622 (6) 616
Currency translation differences - - - 5 - - 5
Total comprehensive income for the year - - - 5 622 (6) 621
Transactions with owners
Share based payment adjustments - - - 91 - - 91
Dividends relating to 2009 - - - (210) - (210)
Transactions with owners - - - 91 (210) - (119)
Balance at 31 December 2010 4,209 2,957 4,441 613 2,517 51 14,788
Profit - - - - 734 11 745
Currency translation differences - - - 5 - - 5
Total comprehensive income for the year - - - 5 734 11 750
Transactions with owners
Purchase of treasury shares - - - - (166) - (166)
Share based payment adjustments - - - 50 - - 50
Transactions with owners - - - 50 (166) - (116)
Balance at 30 June 2011 4,209 2,957 4,441 668 3,085 62 15,422
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Unaudited consolidated
statement of cashflows
For the six months
ended 30 June 2011
Six months to Six months to Year ended
30.06.11 30.06.10 31.12.10
GBP000 GBP000 GBP000
Cash generated from operating 724 (154) 1,211
activities
Income tax paid (284) - (197)
Net cash generated from 440 (154) 1,014
operating activities
Cash generated from investing
activities
Payments to acquire intangible (93) (67) (256)
fixed assets
Purchases of property, (291) (254) (2,071)
plant and equipment
Proceeds from disposal - 8 10
of property,
plant and equipment
Interest received 19 23 56
Net cash used in investing (365) (290) (2,261)
activities
Cashflows from financing
activities
Purchase of treasury shares (166) - -
Dividend paid to Company's - - (210)
shareholders
Repayment of borrowings (3) (17) (27)
Net cash used in financing (169) (17) (237)
activities
Net decrease in cash (94) (461) (1,484)
and cash equivalents
Cash and cash equivalents at 3,531 5,015 5,015
the beginning of the period
Cash and cash equivalents 3,437 4,554 3,531
at the end of the period
Six months to Six months to Year ended
30.06.11 30.06.10 31.12.10
GBP000 GBP000 GBP000
Cash generated from operations 990 777 1,517
Adjustments for:
Finance costs (19) (23) (56)
Depreciation and amortisation 61 50 137
Profit on disposal of - (8) (10)
plant and equipment
Share based payments 50 9 100
Changes in working capital:
Inventories (36) 74 91
Trade and other receivables 564 (344) (373)
Trade and other payables (886) (689) (195)
Cash generated from operations 724 (154) 1,211
The above consolidated
statement
of cashflows should
be read in conjunction with
the accompanying notes.
Notes to the financial statements
1. General information
Kiotech International plc ("the company") and its subsidiaries
(together "the group") manufacture and supply high performance
natural feed additives for agricultural and aquaculture markets
with products to improve the health and output of animals.
The company is traded on the London Stock Exchange Aim market
and is incorporated and domiciled in the UK. The address of the
registered office is Unit 5 Manton Wood Enterprise Park, Worksop,
Nottinghamshire, S80 2RS.
2. Basis of preparation
The consolidated financial statements comprise the accounts of
the company and its subsidiaries drawn up to 30 June 2011.
The consolidated financial statements have been prepared on the
basis of the accounting policies set out in the group's financial
statements for the year ended 31 December 2010, which are available
on the company's web site at www.kiotech.com.
Of the new standards, amendments and interpretations that are in
issue and mandatory for the financial year 31 December 2011, there
is no financial impact on these consolidated interim financial
statements.
This condensed consolidated interim financial information does
not comprise statutory accounts within the meaning of section 434
of the Companies Act 2006. Statutory accounts for the year ended 31
December 2010 were approved by the Board of Directors on 25 May
2011 and delivered to the Registrar of companies. The report of the
auditors on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under section 498 of the Companies Act 2006.
The consolidated interim financial information for the period
ended 30 June 2011 is unaudited.
3. Segment information
All revenues from external customers are derived from the sale
of goods in the ordinary course of business to the agricultural and
aquaculture markets and are measured in a manner consistent with
that in the income statement.
Management has determined the operating segments based on the
reports reviewed by the Board that are used to make strategic
decisions. The Board considers the business from a geographic
perspective.
Management considers adjusted EBITDA, which comprises Earnings
before interest, tax, depreciation and amortisation adjusted for
share-based payments.
UK and Eire International Total
GBP000 GBP000 GBP000
Six months to 30 June 2011
Total segmental revenue 3,248 6,596 9,844
Inter-segment revenue - (480) (480)
Revenue from external customers 3,248 6,116 9,364
Adjusted EBITDA 118 964 1,082
Depreciation and amortisation (19) (42) (61)
Income tax expense (23) (222) (245)
Total assets 9,347 10,283 19,630
Total Liabilities (1,490) (2,718) (4,208)
Six months to 30 June 2010
Total segmental revenue 5,098 6,076 11,174
Inter-segment revenue - (92) (92)
Revenue from external customers 5,098 5,984 11,082
Adjusted EBITDA 187 626 813
Depreciation and amortisation (25) (25) (50)
Income tax credit/(expense) 52 (157) (105)
Total assets 4,444 14,288 18,732
Total Liabilities (2,095) (2,351) (4,446)
Year ended 31 December 2010
Total segmental revenue 9,300 12,686 21,986
Inter-segment revenue - (421) (421)
Revenue from external customers 9,300 12,265 21,565
Adjusted EBITDA 243 1,716 1,959
Depreciation and amortisation (99) (38) (137)
Income tax expense (68) (161) (229)
Total assets 8,624 11,306 19,930
Total Liabilities (1,614) (3,528) (5,142)
A reconciliation of adjusted
EBITDA to profit
before tax is provided
as follows:
Six months to Six months to Year ended
30.06.11 30.06.10 31.12.10
GBP000 GBP000 GBP000
Adjusted EBITDA for reportable 1,082 813 1,959
segments
Depreciation, amortisation (61) (50) (137)
and impairment provisions
Share-based payment charges (50) (9) (100)
Finance income-net 19 23 56
Closure and re-structuring costs - - (261)
Profit before tax 990 777 1,517
4. Share
Capital
The group acquired 235,000 of its own shares through purchases
on the London Stock Exchange on 26 January 2011. The total
amount to acquire the shares has been deducted from shareholders'
equity and the shares are held as treasury shares.
5. Earnings per share Six months to Six months to Year ended
30.06.11 30.06.10 31.12.10
(As restated)
Weighted average 18,200 18,300 18,300
number of
shares in issue
(000's)
Fully diluted weighted 18,379 18,465 18,473
average number
of shares in issue
(000's)
Profit attributable 734 660 1,282
to equity holders
of the company
(GBP000's)
Basic earnings per 4.03 3.61 7.01
share (pence)
Diluted earnings per 3.99 3.57 6.94
share (pence)
Six months to Six months to Year ended
30.06.11 30.06.10 31.12.10
(As restated)
GBP000 GBP000 GBP000
Underlying profit
attributable
to the equity holders:
Profit attributable to 734 660 1,282
the equity owners:
Closure - - 187
and restructuring
costs (net of tax)
Prior year tax - - (138)
adjustments
Basic earnings 734 660 1,331
per share
Underlying earnings 4.03 3.61 7.27
per share (pence)
Diluted underlying 3.99 3.57 7.20
earnings
per share (pence)
Earnings per share
has been restated
to take account of
the 1 for 23
ordinary share
consolidation,
which
took place on 1
October 2010.
6. Intangible Goodwill, brands & Patents &
fixed assets
Customer relationships Developments Total
GBP000 GBP000 GBP000
Cost at 1 January 2011 5,821 1,339 7,160
Additions - 93 93
Cost at 30 June 2011 5,821 1,432 7,253
Amortisation at 18 135 153
1 January 2011
Charge for the period 9 5 14
Amortisation at 27 140 167
30 June 2011
Net book value at 5,794 1,292 7,086
30 June 2011
Net book value at 5,803 1,204 7,007
1 January 2011
Kiotech (LSE:KIO)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Kiotech (LSE:KIO)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024
