Revenue up 4.6% for Donegal Investment Group in latest results

Donegal Investment Group plc has announced its interim results for the six months ended February 28, 2019, earlier today, Tuesday, May 28, revealing a strong showing over the given time-frame.

Group revenue increased by 4.6% – some €2.1 million – to €46.1 million, driven by continued double-digit revenue growth in the firm’s speciality dairy business, as well as strong demand for its produce businesses’ seed potato varieties.

Group profit from operating activities increased by 19% – €600,000 –  to €3.9 million.

Performance

Although impacted by a reduction in the availability of seed, Donegal Investment Group’s seed potato business generated improved margins through strong pricing, according to the firm.

The animal feeds business Smyths performed “satisfactorily” during the first half of the financial year, while its speciality dairy business “continued to deliver strong top line growth in UK and Irish markets”, the group said in a statement.

Adjusted earnings per share (EPS) increased by 50.4c to 79.1c following the conversion and redemption of 4,860,336 ordinary shares as part of the group’s return of capital to shareholders in May 2018.

Revenue from operations increased by 5.9% – €1.5 million – to €26.8 million. The segmental result for the period was a profit of €1.2 million, a decrease of €200,000 on the first half of 2018.

Following the return of €51 million in capital to shareholders in the year ended August 31, 2018, the group has cash at bank (net of overdraft) of €7.4 million, and debt of €4.7 million, leaving the group with a net cash position of €2.7 million.

Outlook

During the current year 2018/19, the group aims to continue its strategic review to assess all options available.

The board is optimistic that all businesses will remain on plan for the remainder of the year.

The Donegal Investment Group board announced it will continue to progress its non-core asset disposal programme during the second half of the year, particularly in respect of its remaining property assets.

The group’s AGM will be held at The Silver Tassie Hotel, Ballymaleel, Ramelton Road, Letterkenny, Co. Donegal, tomorrow, Wednesday, May 29, at 11:30am.

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