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Essentially Grp PLC - Interim Results


Announcement provided by

Essentially Group PLC · ESSN

29/09/2023 07:00

Essentially Grp PLC - Interim Results
RNS Number : 0681O
Essentially Group PLC
29 September 2023
 

29 September 2023

 

Essentially Group PLC

("Essentially" or the "Company")

 

Unaudited Interim Report For The Six Months Ended 30 June 2023

 

Essentially Group PLC (AQSE: ESSN), announces its interim results for the Group for the half year ending 30 June 2023.

Period Highlights

·

Revenue from operational trading increased by 14% versus H1FY22.

·

Our retail footprint has grown by an impressive 53% in this period, showcasing our consistent and robust natural growth.

·

Gross profit margin has increased to 52% (compared to 41% for the year to 31st December 2022).

·

Commenced supply of healthy snacks to Emirates Palace Mandarin Oriental Hotel, Marriot Hotel and Resort and the St. Regis, all five-star hotels in the UAE.

·

Expanded the coverage of supply of beverages to all leading petrol station operators (Emarat, ADNOC, EPPCO, ENOC). We expect the benefit of the additional locations to materialise in the coming months.

·

Commenced HPP tolling service for external clients for juice and soup products.

·

The Group has recycled more than 1,083 kilograms of plastic reducing 2,395 kgs of CO2 with our partner RECAPP by Veolia.

Post Period Highlights

·

The Group has entered into a rolling two-year private label contract with the master UAE franchisor of a global premium F&B brand to produce and supply 11 flavours of juices and wellness shots. The brand has announced plans to grow its presence in the UAE from 3 to 20 stores.   

·

In line with theGroup's strategy to transition to more environmentally friendly packaging solution, the Group has invested in technology to supply its beverages in biodegradable bottles. The initial investment covers its 250ml bottles with other bottle formats to follow in due course.

Chairman's Interim Report

The 6-month period ended 30th June 2023 was an exciting and significant one for the Group.

 

Our High Pressure Processing equipment that was delivered at the end of 2022 had successfully been installed and trials completed during Q1. Over time we anticipate this resulting in improved gross margins and allow us to conduct new product research and development more efficiently and thus bringing new products to the market quicker.

 

We listed on the Aquis Exchange on 17th March 2023, where I was joined by Raja Abuljebain, our CEO, to bang the gong at the Exchange on a chilly and quiet "FRIDAY" in the city of London….

 

Strong Non-Oil exports growth will keep the UAE's current account surplus in double digits at least until 2025.

 

Although there could be a deceleration in Dubai real GDP from 4.2% in 2022 to 3.8% in 2023 through elevated cost of living and high and rising borrowing costs, that said the sustained recovery of the wholesale and retail sector along with the robust financial sector performance and investment activities will keep growth strong by historical standards.

 

Travel and tourism sector in the UAE is also playing a role in driving economic growth with increasing passenger numbers at Dubai International Airport and Al Maktoum International Airport resulting in international visitors to Dubai exceeding pre-pandemic levels. International visitors to the UAE are expected to increase 40% in 2023.

 

Dubai is also hosting COP 28, the climate change conference, between 30th November to 12th December 2023 and will be part of this anticipated visitor growth. COP 28 is expected to be the largest to date.

 

The UAE's population continues to grow, currently at 10.17 million (an increase of nearly 1% from 2022).

 

All of these drivers point to a bright year for our industry.

 

Stuart Lever

Chairman

 

29 September 2023

 

The directors of the Company take responsibility for this announcement.

 

For further information, please contact:

 

Essentially Group Plc 

 

Raja W Abuljebain, CEO 

Tel: +97156 6440676  


https://essentiallyplc.com 

AQSE Exchange Corporate Adviser 


Alfred Henry Corporate Finance Ltd 


Nick Michaels/Maya Klein Wassink 

Tel: +44 (0) 20 3772 0021 


www.alfredhenry.com 

Broker 


Clear Capital Markets Ltd 


Andrew Blaylock 

Tel: +44 (0)20 3869 6082 


https://clearcapitalmarkets.co.uk 

 

 

GROUP STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX-MONTH PERIOD TO 30 JUNE 2023

 



Group

Essentially Juices Manufacturing LLC

Essentially Juices Manufacturing LLC



Period ending

30 June 2023

Unaudited £

Period ending

30 June 2022

Unaudited £

Year ending

31 Dec 2022

Audited £

Revenue


593,164

519,311

       1,037,660

Cost of Goods Sold


(285,683)

(295,377)

(610,620)

Gross Profit

 

307,481

223,934

427,040






Operating Costs


(529,850)

(270,087)

(578,030)






Profit/(Loss) Before Interest & Depreciation

 

(222,369)

(46,143)

(150,990)






Depreciation


(124,264)

(93,874)

(202,649)






Profit/(Loss) Before Interest

 

(346,633)

(140,027)

(353,638)






Interest Expense


(53,542)

(27,781)

(81,435)






Net Profit/(Loss)

 

(400,175)

(167,808)

(435,073)













Pence








Earnings per Share










Basic


(0.78)



Diluted


(0.78)








£1 = AED4.55





 

 

GROUP STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2023

 



Group

Essentially Juices Manufacturing LLC



Period ending

30 June 2023

Unaudited £

Year ending

31 Dec 2022

Audited £

Assets




Current Assets




Cash & Cash equivalent

 

89,027

27,654

Trade Receivables


292,382

151,938

Prepayments & Other Receivables


501,585

68,885

Inventory


22,651

22,109

Total Current Assets

 

905,645

270,586





Non-Current Assets




Property Plant & Equipment


835,598

931,846

Intangible Assets

 

28

1,287

Right of Use Assets


95,035

147,938





Total Non-Current Assets


930,662

1,081,071

 

 

 

 

Total Assets


1,836,307

1,351,657





Liabilities & Equity




Current Liabilities




Trade and other Payables


449,213

          289,806

Total Current Liabilities


449,213

289,806





Non-Current Liabilities




Loan from Shareholders


-

700,000

Lease Liabilities


104,872

157,795

Interest Bearing Loans & Borrowings


759,465

76,923

Provision for End of Service


19,547

            19,457

Total Non-Current Liabilities


883,884

954,175





Equity




Share Capital


51,300

66,667

Share Premium


648,700


Capital Contribution


2,116,873

1,915,914

Accumulated Losses


(2,313,663)

(1,874,905)

Total Equity


503,210

107,676





Total Liabilities & Equity


1,836,307

1,351,657

 

 

 

CONSOLIDATED GROUP CASHFLOW STATEMENT

FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2023

 



Group

Essentially Juices Manufacturing LLC



Period ending

30 June 2023

Unaudited £

Year ending

31 Dec 2022

Audited £

Cash Flow from Operating activities




(Loss) For the period


(400,175)

(435,073)

Adjustments For:

 

 

 

Provision for Employees' End of services


5,444

20,291

Depreciation of Property, Plant & Equipment/ Amortization


75,493

111,280

Depreciation for Right of use Asset


48,771

98,625

Finance Cost

 

87,873

81,435

Broker fee paid in shares

 

50,000


Operating (loss) before Working Capital Changes


(132,595)

(123,442)





(Increase)/Decrease in Trade Receivables


(18,111)

(42,513)

(Increase)/Decrease in Other Receivables

 

(432,699)

(12,023)

(Increase)/Decrease in Inventory


(542)

(5,833)

Increase/(Decrease) in Trade Payables


55,621

100,054

Cash (used in) Operating activities


(528,326)

(83,757)

Employees' End of Service Payment

 

(4,624)

(7,664)

Finance Cost Paid


(18,819)

(21,612)

Net Cash used in Operating activities

 

(551,769)

(113,033)

Cash flow from Investing Activities




Property Plant & Equipment


(10,016)

(604,396)




-      

Net Cash (used in) Investing Activities


(10,016)

(604,396)

Cash flow from Financing Activities




Loan from Shareholders


-

700,000

Net movement in interest bearing loan & Borrowing


(17,458)

(25,251)

Share Capital


600,000

-

Capital Contribution


47,250

156,423

Lease Payments


(57,187)

(118,696)

Net Cash Generated from Financing Activities


572,605

712,476





Net (decrease)/Increase in cash & cash equivalent


 10,819

(4,953)

Cash & Cash equivalent at the start of period


77,829

32,608

Cash & cash equivalent at the end of period


89,027

27,654

 

 

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX-MONTH PERIOD TO 30 JUNE 2023

 

 

1

General Information

 

 

Essentially Group PLC  is a listed public limited company (Aquis: ESSN) incorporated in the UK and registered in England and Wales (Company Number 14299324). The Company's registered office is at Eastcastle House, 27 - 28 Eastcastle Street, London W1W 8DH.

 

 

2

Basis of Preparation

 

 

The interim consolidated financial statements of Essentially Group Plc are unaudited condensed financial statements for the six months ended 30th June 2023 (the "Interim Statements"). The Interim Statements do not constitute statutory financial statements within the meaning of section 434 of the Companies Act 2006.

 

A copy of the audited financial statements for the year ended 31st December 2022 for Essentially Juices Manufacturing L.L.C, the principal operating company of the Group is available in which the auditor's opinion on those financial statements was unqualified and did not draw attention to any matters by way of an emphasis of matter paragraph. These Interim Statements have been prepared on the basis of the accounting policies and the accrual basis of accounting and expected to apply for the financial year to 31st December 2023 based on the recognition and measurement principles adopted International Financial Reporting Standards (IFRS), in accordance with the provisions of the Companies Act 2006, applicable to companies reporting under IFRS.

 

The Interim Statements have been prepared under the historical cost convention. The Group's presentation and functional currency is £ Sterling. The Interim Statements do not include all of the information required for full annual financial statements and do not comply with all the disclosures in IAS 34 'Interim Financial Reporting. Accordingly, whilst the Interim Statements have been prepared in accordance with IFRS, they cannot be construed as being in full compliance with IFRS. The preparation of financial statements in conformity with United Kingdom adopted International Financial Reporting Standards (IFRS) requires the use of certain critical accounting estimates.

It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The accounting policies adopted are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31st December 2023.

 

3

Basis of Consolidation

 

 

The Interim Statements incorporate the assets and liabilities of Essentially Group PLC ("Company") as at 30th June 2023 and the result of all subsidiaries for the period then ended. Essentially Group Plc and its subsidiaries together are referred to in these financial statements as the "Group".

 

Subsidiaries are all those entities over which the Company has control. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. Intercompany transactions, as well as balances and unrealized gains stemming from transactions among entities within the Group are removed. Where required, the accounting policies of subsidiaries have been adjusted to align with the policies adopted by the Group to maintain consistency.

 

The accounting for the acquisition of subsidiaries follows the acquisition method. A change in ownership interest without losing control, it is treated as an equity transaction. In this scenario, any variance between the consideration paid and share for share is directly recorded in the equity section of Company.

 

 

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