Origin building up stock in the UK ahead of Brexit as revenue jumps 20pc
Argi-Services firm Origin Enterprises said it is building up inventories in its UK businesses ahead of Brexit.
With just 23 days until the UK leaves the European Union, Origin said it was building up some stock as a contingency against the uncertain outcome regarding the UK’s exit from the European Union.
The group added that additional storage was secured over the winter period as it comes into the traditional peak season, and that additional inventory has been secured both on an owned and consigned / contract storage basis.
“As a result we believe that we are well prepared for any short-term logistical disruption that may result from a no-deal Brexit,” Origin said.
Elsewhere and the group reported a 19.5pc increase in revenues to €701.6m in the six months to 31 January 2019.
The performance was driven by increased agricultural science services revenue and crop input volumes, increased fertiliser prices and the group’s Fortgreen acquisition in Latin America.
The Fortgreen acquisition generated an operating profit of €5.5m.
Overall and operating profit for the six months was €9.1m, up from €2.3m in the prior year comparison period, according to interim results from the group.
The increase in operating profit also benefitted from favourable early season demand in Ireland and the UK.
Net debt at the group now stands at €238.8m, up from €171.4m on the prior year. The increase in debt follows acquisition activity and increased investment in working capital.
Tom O'Mahony, Origin CEO, said: "Origin has achieved a good first half result, recording an operating profit of €9.1m, up from €2.3m in the first half of 2018. The performance reflects the benefit of favourable early season demand for agronomy services and crop inputs, together with a strong first-time contribution from our Latin American segment.”
“Looking ahead, the autumn and winter cropping profile established to date provides a solid foundation for the seasonally more important second half.”