Origin swings to €1.8m loss as revenue drops 4.6pc
Origin Enterprises, an Irish agri-services firm, swung to an operating loss in the first half of its financial year in the face of a "challenging" period for the firm.
Revenues at the company dropped by 4.6pc to €507.2m, down from €531.6m reported in the first six months of 2014.
The firm posted a loss before tax of €4.1m, which represents at 153.7pc swing from the profit of €7.6m it reported in the first half of the previous year.
Origin chief executive, Tom O'Mahony, said trading in the first half of the year had been both slow and challenging.
"Highly adverse and unseasonal weather patterns have significantly limited in-field crop maintenance activity during the second quarter in particular. This, combined with weak farmer confidence reflecting the current pressures on primary producer incomes and cash flows, is expected to result in a greater concentration of service and input demand arising during the main application period in the second half of the financial year," Mr O'Mahony said.
The company posted an interim dividend of 3.15c for the six-month period while its loss per share amounted to 2.47c.
Net debt at the company increased by €7.1m to €168.3m while the company's operating profit from its associates and joint ventures dropped 76.5pc to €1.48m.
Mr O'Mahony said the firm remained optimistic about the second half of its financial year.
"With the seasonally more important second half of the financial year to come and assuming normal weather patterns and no material adverse change in current exchange rates, the group expects to achieve full year adjusted diluted earnings per share of between 51c and 53c.
"We will provide a further update on guidance at the time of the announcement of the Group's third quarter trading update in May 2016," Mr O'Mahony said.