Simonds Farsons Cisk plc - Full-Year Results

On 25 April Simonds Farsons Cisk plc published its full-year results for the financial year ended 31 January 2012. The Group announced an increase of 26.1% in profit after tax to a record €4.7 million (2011: €3.7 million). The Board of Directors proposed a final net dividend of €0.0567 per share (equivalent to €1.7 million), up 6.3% from the previous year’s final dividend. Following shareholders’ approval at the Annual General Meeting scheduled for 20 June, the dividend will be paid on 21 June to all shareholders as at close of business on 17 May 2012. Combined with the net interim dividend of €0.1333 per share paid on 21 October 2011, the total net dividend in respect of the year under review amounts to a record of €0.07 per share, an increase of 5% over the total dividend in respect of the 2011 financial year.

During the 12-month period under review, the Group generated a record turnover of €70.9 million, a 5.2% improvement over the previous year’s turnover of €67.4 million. The increase in revenue can be partially attributed to an increase in export volumes. Cost of sales rose by 8% to €45.1 million due to inflationary pressures in commodity prices (raw materials) as well as higher prices of fuel oil. However, the Group managed to marginally reduce its selling, distribution and administrative cost helping the operating profit for 2012 edged 1.5% higher to a record €6.4 million. After accounting for finance costs of €1.3 million (2011: €1.6 million), the Group registered a profit before tax of €5.1 million (2011: 4.1 million). After deducting the tax expense of €0.36 million, the record profit after tax of €4.7 million translates into earnings per share of €0.157.

The balance sheet as at 31 January 2012 shows Group total assets of €147.9 million, an increase of 2.3% over last year. Shareholders’ funds grew by 2.8% to €88.2 million (2011: €85.8 million) giving a net asset value per share of €2.94.

Going forward, the Directors stated that the construction of the new brewhouse is nearing completion and will be commissioned over the forthcoming summer months. Furthermore, the Directors mentioned that the financial performance of the Group is dependent on local consumer confidence and the local tourism industry. Inflationary pressures on energy costs and higher cost of commodities used for the production of beer (sugar, hops and malt) continue to present challenges for the Group. Nevertheless, Farsons stated that they remain confident that the solid business model can face these forthcoming challenges.

Download a copy of the preliminary full-year results here.