Last checked at 25 Apr 2012 07:00
FINAL RESULTS FOR THE YEAR
ENDING 31 DECEMBER 2011
Ukrproduct Group Limited ("Ukrproduct" or the "Group") (AIM: UKR), one of the leading producers and distributors of branded dairy products in Ukraine, announces its audited consolidated IFRS results for the twelve months ending 31 December, 2011.
Financial Highlights:
·; Revenue increased by 12% to GBP 50.5 m (2010: GBP 45.0 m)
·; Gross profit decreased by 5% to GBP 6.8 m ( 2010: GBP 7.2 m)
·; EBITDA declined by 29% to GBP 1.86 m (2010: GBP 2.6 m)
·; Tax increased to GBP 431 k (2010: GBP 103 k)
·; Profit after Tax declined to GBP 400 k (2010: GBP 1.094 m)
·; Dividend withheld in view of a major cost saving capital expenditure program
·; Year end cash balance stood at GBP 512 k (2010: GBP 676 k), sufficient to meet current obligations in the short and medium term
Operational Highlights:
·; Branded products showed a good performance with revenue increasing by 9% to GBP 34.7 m (2010: 31.8 m) and gross profit increasing by 4% to GBP 6.3 m (2010: GBP 6.0 m)
·; Strengthened the market leading position in packaged butter increasing the market share to 23% (22% in 2010)
·; Recovered leadership in processed cheese achieving market share of 16.3% (15.5% in 2010)
·; Distribution Services improved in terms of revenue and gross profit by 155% and 125% respectively. Especially driven by kvass sales
·; Profitability undermined by substantial energy costs increase and a 25% increase in raw milk prices mostly due to the changes in the milk subsidy regime
·; SMP remained subdued with the world trading environment and high input costs negating profit making opportunities reversing last year's profitability (revenue declined by 24.6% to GBP 7.5 m and the gross profit declined by 166% to minus GBP 457 k)
·; Tax charge increased substantially owing to new Tax Code
·; Launched the reconstruction of the plant in Starokostiantyniv under a loan facility provided by European Bank for Reconstruction and Development. A major cost saving project
·; Acquired LLC "Zhyvyi Kvass" a producer of "Arsenievsky" branded kvass, a traditional fermented beverage of which Ukrproduct was the exclusive distributor since September 2010
Sergey Evlanchik, CEO of Ukrproduct, commented:
"The trading environment has remained challenging with unemployment accentuating the squeeze on consumer disposable incomes. Nevertheless, within this Ukrproduct succeeded in building its market positions and thereby sales and aggregate gross profit in core business - branded products, distribution services, export. However on the downside margins were severely curtailed by raw milk price/fuel inflation. SMP reversed profitability. The Tax Code change led to very sizeable increase in the charge.
Going forward there are robust plans to recover profitability. In the core business we plan to build on our momentum and further sales growth is planned. Margins will be key to this end, milk prices are stabilizing at a lower level and a major cost saving capital expenditure program is underway at Starokostiantyniv manufacturing plant. The kvass acquisition is an exciting opportunity. We now have total control over the manufacturing and marketing of this product and will lead to further enhancement of profitability. Meanwhile the financial year to date is showing good progress"
Conference call information
Ukrproduct management will host a conference call today at 10.30 am (London time) / 11.30 pm (CET) / 12.30 pm (Kiev Time) to present and discuss the unaudited interim results.
The dial-in numbers for the conference call are:
Standard International: +44 (0) 203 003 2666
UK Toll Free: 0808 109 0700
For the play-back or further information, please visit www.ukrproduct.com or contact:
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The summarised financial statements follow however the full text of the 2011 Annual Report, incorporating the 2011 Audited Financial Statements, is available in pdf form on the Company's website www.ukrproduct.com.
CONSOLIDATED INCOME STATEMENT | |||||||||||||||||||||||||||||||||
year ended | year ended | ||||||||||||||||||||||||||||||||
31 December 2011 | 31 December 2010 | ||||||||||||||||||||||||||||||||
£ '000 | £ '000 | ||||||||||||||||||||||||||||||||
Revenue | 50,524 | 45,020 | |||||||||||||||||||||||||||||||
Cost of sales | (43,725) | (37,866) | |||||||||||||||||||||||||||||||
GROSS PROFIT | 6,799 | 7,154 | |||||||||||||||||||||||||||||||
Administrative expenses | (2,855) | (2,899) | |||||||||||||||||||||||||||||||
Selling and distribution expenses | (2,790) | (2,184) | |||||||||||||||||||||||||||||||
Other operating income / (expenses), net | (183) | (502) | |||||||||||||||||||||||||||||||
PROFIT FROM OPERATIONS | 971 | 1,569 | |||||||||||||||||||||||||||||||
Net finance costs | (428) | (367) | |||||||||||||||||||||||||||||||
Effect of foreign currency translation | 288 | (5) | |||||||||||||||||||||||||||||||
PROFIT BEFORE TAXATION | 831 | 1,197 | |||||||||||||||||||||||||||||||
Income tax expenses | (431) | (103) | |||||||||||||||||||||||||||||||
PROFIT FOR THE YEAR | 400 | 1,094 | |||||||||||||||||||||||||||||||
Attributable to: | |||||||||||||||||||||||||||||||||
Owners of the Parent | 410 | 1,104 | |||||||||||||||||||||||||||||||
Non-controlling interests | (10) | (10) | |||||||||||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||||||||||
Basic | 1.00 | 2.69 | |||||||||||||||||||||||||||||||
Diluted | 1.00 | 2.69 | |||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||||||||||||||||||||||||||||||||
year ended | year ended | ||||||||||||||||||||||||||||||||
31 December 2011 | 31 December 2010 | ||||||||||||||||||||||||||||||||
£ '000 | £ '000 | ||||||||||||||||||||||||||||||||
PROFIT FOR THE YEAR | 400 | 1,094 | |||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME: | |||||||||||||||||||||||||||||||||
Exchange differences on translation to the presentation currency | (28) | 351 | |||||||||||||||||||||||||||||||
Gain on revaluation of property, plant and equipment | - | 4,112 | |||||||||||||||||||||||||||||||
Income from changes in tax rates | 268 | - | |||||||||||||||||||||||||||||||
Tax effect from change in revaluation reserve | (62) | (1,028) | |||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME, NET OF TAX | 178 | 3,435 | |||||||||||||||||||||||||||||||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 578 | 4,529 | |||||||||||||||||||||||||||||||
Attributable to: | |||||||||||||||||||||||||||||||||
Total for owners of the Parent | 588 | 4,539 | |||||||||||||||||||||||||||||||
Total non-controlling interests | (10) | (10) | |||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||||||||||||||||||||||||||||||||
As at | As at | ||||||||||||||||||||||||||||||||
31 December 2011 | 31 December 2010 | ||||||||||||||||||||||||||||||||
£ '000 | £ '000 | ||||||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||
Non-current assets | |||||||||||||||||||||||||||||||||
Property, plant and equipment | 17,173 | 12,263 | |||||||||||||||||||||||||||||||
Intangible assets | 1,055 | 1,000 | |||||||||||||||||||||||||||||||
Available for sale investments | 169 | 89 | |||||||||||||||||||||||||||||||
Deferred tax assets | 50 | 248 | |||||||||||||||||||||||||||||||
18,447 | 13,600 | ||||||||||||||||||||||||||||||||
Current assets | |||||||||||||||||||||||||||||||||
Inventories | 4,634 | 3,985 | |||||||||||||||||||||||||||||||
Trade and other receivables | 6,906 | 5,605 | |||||||||||||||||||||||||||||||
Current taxes | 404 | 1,094 | |||||||||||||||||||||||||||||||
Other financial assets | 177 | 220 | |||||||||||||||||||||||||||||||
Cash and cash equivalents | 512 | 676 | |||||||||||||||||||||||||||||||
12,633 | 11,580 | ||||||||||||||||||||||||||||||||
TOTAL ASSETS | 31,080 | 25,180 | |||||||||||||||||||||||||||||||
EQUITY AND LIABILITIES | |||||||||||||||||||||||||||||||||
Equity attributable to owners of the parent | |||||||||||||||||||||||||||||||||
Share capital | 4,082 | 4,082 | |||||||||||||||||||||||||||||||
Other reserves | 2,868 | 2,068 | |||||||||||||||||||||||||||||||
Retained earnings | 12,367 | 12,817 | |||||||||||||||||||||||||||||||
19,317 | 18,967 | ||||||||||||||||||||||||||||||||
Non-controlling interests | - | 20 | |||||||||||||||||||||||||||||||
19,317 | 18,987 | ||||||||||||||||||||||||||||||||
Non-Current Liabilities | |||||||||||||||||||||||||||||||||
Bank borrowings | 3,844 | - | |||||||||||||||||||||||||||||||
Deferred tax liabilities | 881 | 1,434 | |||||||||||||||||||||||||||||||
4,725 | 1,434 | ||||||||||||||||||||||||||||||||
Current liabilities | |||||||||||||||||||||||||||||||||
Bank borrowings | 3,514 | 2,938 | |||||||||||||||||||||||||||||||
Trade and other payables | 3,165 | 1,715 | |||||||||||||||||||||||||||||||
Current income tax liabilities | 108 | 68 | |||||||||||||||||||||||||||||||
Other taxes payable | 251 | 38 | |||||||||||||||||||||||||||||||
7,038 | 4,759 | ||||||||||||||||||||||||||||||||
TOTAL EQUITY AND LIABILITIES | 31,080 | 25,180 | |||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||||||||||
year ended | year ended | ||||||||||||||||||||||||||||||||
31 December 2011 | 31 December 2010 | ||||||||||||||||||||||||||||||||
£ '000 | £ '000 | ||||||||||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||||||||||
Profit before taxation for the year | 831 | 1,197 | |||||||||||||||||||||||||||||||
Adjustments for: | |||||||||||||||||||||||||||||||||
Exchange difference | (288) | 5 | |||||||||||||||||||||||||||||||
Depreciation and amortisation | 890 | 1,068 | |||||||||||||||||||||||||||||||
(Profit)/loss of disposal of property, plant and equipment | (214) | 74 | |||||||||||||||||||||||||||||||
Impairment of trade receivables | 51 | 129 | |||||||||||||||||||||||||||||||
Income from disposal of subsidiaries | (18) | - | |||||||||||||||||||||||||||||||
Interest income | (19) | (20) | |||||||||||||||||||||||||||||||
Interest expense | 447 | 387 | |||||||||||||||||||||||||||||||
Increase in inventories | (583) | (1,468) | |||||||||||||||||||||||||||||||
Increase in trade and other receivables | (2,789) | (1,082) | |||||||||||||||||||||||||||||||
Increase in trade and other payables | 1,842 | 492 | |||||||||||||||||||||||||||||||
Cash generated from operations | 150 | 783 | |||||||||||||||||||||||||||||||
Interest received | 19 | 20 | |||||||||||||||||||||||||||||||
Income tax paid | (511) | (338) | |||||||||||||||||||||||||||||||
Net cash (used in) / generated by operating activities | (342) | 465 | |||||||||||||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||||||||||
Payments for property, plant and equipment | (3,792) | (357) | |||||||||||||||||||||||||||||||
Proceeds from sale of property, plant and equipment | 422 | 16 | |||||||||||||||||||||||||||||||
Purchase of available for sale investments | - | (203) | |||||||||||||||||||||||||||||||
Purchase / sale of investments | 113 | (24) | |||||||||||||||||||||||||||||||
Repayments of loans issued | (222) | (139) | |||||||||||||||||||||||||||||||
Net cash used in investing activities | (3,479) | (707) | |||||||||||||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||||||||||
Own shares acquisition | - | (58) | |||||||||||||||||||||||||||||||
Dividends paid | (204) | (82) | |||||||||||||||||||||||||||||||
Interest paid | (447) | (387) | |||||||||||||||||||||||||||||||
Increase in short term borrowing | 561 | 1,312 | |||||||||||||||||||||||||||||||
Increase in long term borrowing | 3,707 | - | |||||||||||||||||||||||||||||||
Net cash used in financing activities | 3,617 | 785 | |||||||||||||||||||||||||||||||
Net (decrease) / increase in cash and cash equivalents | (204) | 543 | |||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 40 | (103) | |||||||||||||||||||||||||||||||
Cash and cash equivalents at the beginning of the year | 676 | 236 | |||||||||||||||||||||||||||||||
Cash and cash equivalents at the end of the year | 512 | 676 | |||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||||||||||||||||
Attributable to owners of the parent | Non-controlling interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||
Share capital
£ '000 | Share premium | Revaluation reserve | Retained earnings | Translation reserve | Total | ||||||||||||||||||||||||||||||||||||||
£ '000 | £ '000 | £ '000 | £ '001 | £ '000 | £ '000 | £ '000 | |||||||||||||||||||||||||||||||||||||
As at 1 January 2010 | 4,107 | 4,588 | 1,333 | 11,744 | (5,777) | 14,568 | 30 | 14,598 | |||||||||||||||||||||||||||||||||||
Profit for the year | 1,104 | 1,104 | (10) | 1,094 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||||||||||||||||
Gain on the revaluation of property, plant and equipment | 3,084 | 3,084 | 3,084 | ||||||||||||||||||||||||||||||||||||||||
Currency translation differences | 351 | 351 | 351 | ||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | - | - | 3,084 | 1,104 | 351 | 4,539 | (10) | 4,529 | |||||||||||||||||||||||||||||||||||
Transactions with owners | |||||||||||||||||||||||||||||||||||||||||||
Dividends paid | (82) | (82) | (82) | ||||||||||||||||||||||||||||||||||||||||
Total transactions with owners | - | - | - | (82) | - | (82) | - | (82) | |||||||||||||||||||||||||||||||||||
Depreciation on revaluationof non current assets | (50) | 50 | - | - | |||||||||||||||||||||||||||||||||||||||
Reduction of revaluation reserve | (1) | 1 | - | - | - | ||||||||||||||||||||||||||||||||||||||
Acquiring of shares (Note 22) | (25) | (33) | (58) | (58) | |||||||||||||||||||||||||||||||||||||||
As at 31 December 2010 | 4,082 | 4,555 | 4,366 | 12,817 | (5,426) | 18,967 | 20 | 18,987 | |||||||||||||||||||||||||||||||||||
Profit for the year | 410 | 410 | (10) | 400 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||||||||||||||||
Income from changes of tax rates | 206 | 206 | 206 | ||||||||||||||||||||||||||||||||||||||||
Currency translation differences | (28) | (28) | (28) | ||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | - | - | 206 | 410 | (28) | 588 | (10) | 578 | |||||||||||||||||||||||||||||||||||
Transactions with owners | |||||||||||||||||||||||||||||||||||||||||||
Dividends paid (Note 28) | (204) | (204) | (204) | ||||||||||||||||||||||||||||||||||||||||
Total transactions with owners | - | - | - | (204) | - | (204) | - | (204) | |||||||||||||||||||||||||||||||||||
Depreciation on revaluation of property, plant and equipment | (302) | 302 | - | - | |||||||||||||||||||||||||||||||||||||||
Reduction of revaluation reserve | (136) | 102 | (34) | (34) | |||||||||||||||||||||||||||||||||||||||
Exclusion from Group (Note 2.1 (c)) | (1,060) | - | (10) | (10) | |||||||||||||||||||||||||||||||||||||||
As at 31 December 2011 | 4,082 | 4,555 | 4,134 | 12,367 | (5,454) | 19,317 | - | 19,317 | |||||||||||||||||||||||||||||||||||
These financial statements were approved and authorised for issue by the Board of Directors on 24 April 2012.
Notes to the Consolidated Financial Statements
1. Basis of Preparation
The financial information set out in this announcement has been prepared in accordance with the recognition and measurement principles of IFRS as endorsed for use in the European Union. The financial information set out in this announcement does not constitute the group's statutory accounts for the year ended 31 December 2011 or the year ended 31 December 2010 but is derived from the 2011 annual report and accounts. Statutory accounts for the years ended 31 December 2011 and 31 December 2010 have been reported on by the Independent Auditors. Statutory accounts for the year ended 31 December 2010 have been filed with the Companies Registry. The statutory accounts for the year ended 31 December 2011 will be delivered to the Registry in due course.
The Independent Auditors' Reports on the Annual Report and Financial Statements for the year ended 31 December 2011 and for the year ended 31 December 2010 were unqualified, did not draw attention to any matters by way of emphasis, and were properly prepared in accordance with the Companies (Jersey) Law 1991 as amended.
2. Change in accounting estimate
The Group changed its basis of depreciation from the reducing balance method for buildings and vehicles to the straight-line method of depreciation. The change was due to the requirements of the new Ukrainian Tax code. The Group also changed the method of depreciation for the production equipment other than cheese manufacturing equipment from reducing balance method to unit of production method. Management believes this method reflects better use of the Group's equipment. The effect of the changes in accounting estimates was to decrease depreciation by about GBP 498,843.
3. Reclassification of delivery cost from the Group's manufacturing to trading enterprises
The Group changed the presentation of product delivery costs from the Group's manufacturing facilities to the trading enterprises. Starting from 1 January 2011 these costs have been included in the cost of sales of finished products. In previous periods these expenses were included within selling and distribution expenses. Management believes this provides a fair presentation of the Group's cost allocation as intercompany transportation expenses are related to cost of sales in accordance with IAS 2 "Inventories". The prior year comparative cost of GBP 517,000 has also been appropriately reclassified.
4. Segmental Information
Branded products | Non-branded products | Distribution services | Un-allocated | Total | ||||||||||||||||||||
£ '000 | £ '000 | £ '000 | £ '000 | £ '000 | ||||||||||||||||||||
Sales, Total | 76,623 | 11,497 | 18,641 | - | 106,762 | |||||||||||||||||||
Sales to internal customers | 41,929 | 4,027 | 10,283 | - | 56,238 | |||||||||||||||||||
Sales to external customers | 34,694 | 7,471 | 8,359 | - | 50,524 | |||||||||||||||||||
Gross profit | 6,287 | (457) | 969 | - | 6,799 | |||||||||||||||||||
Administrative expenses | (1,825) | (286) | (265) | (479) | (2,855) | |||||||||||||||||||
Selling and distribution expenses | (2,377) | (77) | (296) | (39) | (2,790) | |||||||||||||||||||
Other operating expenses | (93) | - | - | (90) | (183) | |||||||||||||||||||
Profit from operations | 1,992 | (821) | 408 | (608) | 971 | |||||||||||||||||||
Finance expenses, net | - | - | - | (428) | (428) | |||||||||||||||||||
Loss from exchange differences | - | - | - | 288 | 288 | |||||||||||||||||||
Profit before taxation | 1,992 | (821) | 408 | (748) | 831 | |||||||||||||||||||
Taxation | - | - | - | (431) | (431) | |||||||||||||||||||
Profit for the year | 1,992 | (821) | 408 | (1,179) | 400 | |||||||||||||||||||
Segment assets | 17,748 | 2,384 | 3,445 | - | 23,577 | |||||||||||||||||||
Unallocated corporate assets | - | - | - | 7,475 | 7,475 | |||||||||||||||||||
Unallocated deferred tax | - | - | - | 227 | 227 | |||||||||||||||||||
Consolidated total assets | 17,748 | 2,384 | 3,445 | 7,702 | 31,279 | |||||||||||||||||||
Segment liabilities | 1,885 | - | 646 | - | 2,531 | |||||||||||||||||||
Unallocated corporate liabilities | - | - | - | 8,550 | 8,550 | |||||||||||||||||||
Unallocated deferred tax | - | - | - | 881 | 881 | |||||||||||||||||||
Consolidated total liabilities | 1,885 | - | 646 | 9,431 | 11,962 | |||||||||||||||||||
Other segment information: | ||||||||||||||||||||||||
Depreciation and amortisation | 620 | 159 | 46 | 66 | 891 | |||||||||||||||||||
Capital expenditure | 1,068 | 2,523 | 78 | 93 | 3,762 | |||||||||||||||||||
SEGMENT INFORMATION (CONTINUED) |
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Branded products | Non-branded products | Distribution services | Un-allocated | Total | |||||||||||||||||||||||
£ '000 | £ '000 | £ '000 | £ '000 | £ '000 | |||||||||||||||||||||||
Sales, Total | 81,331 | 18,325 | 11,825 | - | 111,481 |
| |||||||||||||||||||||
Sales to internal customers | 49,503 | 8,412 | 8,546 | - | 66,461 |
| |||||||||||||||||||||
Sales to external customers | 31,828 | 9,913 | 3,279 | - | 45,020 |
| |||||||||||||||||||||
Gross profit | 6,033 | 693 | 428 | - | 7,154 |
| |||||||||||||||||||||
Administrative expenses | (1,942) | (272) | (91) | (594) | (2,899) |
| |||||||||||||||||||||
Selling and distribution expenses | (1,954) | (61) | (105) | (64) | (2,184) |
| |||||||||||||||||||||
Other operating expenses | (125) | - | - | (377) | (502) |
| |||||||||||||||||||||
Profit from operations | 2,012 | 360 | 232 | (1,035) | 1,569 |
| |||||||||||||||||||||
Finance expenses, net | - | - | - | (367) | (367) |
| |||||||||||||||||||||
Loss from exchange differences | - | - | - | (5) | (5) |
| |||||||||||||||||||||
Profit before taxation | 2,012 | 360 | 232 | (1,407) | 1,197 |
| |||||||||||||||||||||
Taxation | - | - | - | (103) | (103) |
| |||||||||||||||||||||
Profit for the year | 2,012 | 360 | 232 | (1,510) | 1,094 |
| |||||||||||||||||||||
Segment assets | 15,209 | 2,662 | 612 | - | 18,483 |
| |||||||||||||||||||||
Unallocated corporate assets | - | - | - | 6,449 | 6,449 |
| |||||||||||||||||||||
Unallocated deferred tax | - | - | - | 248 | 248 |
| |||||||||||||||||||||
Consolidated total assets | 15,209 | 2,662 | 612 | 6,697 | 25,180 |
| |||||||||||||||||||||
Segment liabilities | 1,027 | 79 | 147 | - | 1,253 |
| |||||||||||||||||||||
Unallocated corporate liabilities | - | - | - | 3,506 | 3,506 |
| |||||||||||||||||||||
Unallocated deferred tax | - | - | - | 1,434 | 1,434 |
| |||||||||||||||||||||
Consolidated total liabilities | 1,027 | 79 | 147 | 4,940 | 6,193 |
| |||||||||||||||||||||
Other segment information: |
| ||||||||||||||||||||||||||
Depreciation and amortisation | 679 | 288 | 16 | 85 | 1,068 |
| |||||||||||||||||||||
Capital expenditure | 252 | 107 | 32 | 80 | 471 |
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Sales by country (consignees) | year ended | Sales by country (consignees) | year ended | ||||||||||||||||||||||||||||||||||||||
31 December 2011 | 31 December 2010 | ||||||||||||||||||||||||||||||||||||||||
£ '000 | £ '000 | ||||||||||||||||||||||||||||||||||||||||
Ukraine | 42,302 | Ukraine | 38,040 | ||||||||||||||||||||||||||||||||||||||
Holland | 1,900 | Singapore | 2,377 | ||||||||||||||||||||||||||||||||||||||
Russia | 1,659 | Holland | 1,529 | ||||||||||||||||||||||||||||||||||||||
Estonia | 992 | Germany | 1,058 | ||||||||||||||||||||||||||||||||||||||
Azerbaijan | 752 | Turkey | 676 | ||||||||||||||||||||||||||||||||||||||
Greece | 514 | Azerbaijan | 383 | ||||||||||||||||||||||||||||||||||||||
Other countries | 2,405 | Other countries | 957 | ||||||||||||||||||||||||||||||||||||||
Total | 50,524 | Total | 45,020 | ||||||||||||||||||||||||||||||||||||||
The majority of the Group's assets and liabilities are in Ukraine. Sales to the countries in Europe represent sales to international traders of milk powders located in Europe. These traders consequently resell the milk powders to other countries worldwide. | |||||||||||||||||||||||||||||||||||||||||
The Group has no customers volume of sales to which exceeds 10% from the total amount. | |||||||||||||||||||||||||||||||||||||||||
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5. Earnings per share
Basic earnings per share has been calculated by dividing net profit attributable to the ordinary shareholders by the weighted average number of shares in issue. |
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year ended | year ended | |||||||||||||||||||||||||||||||
31 December 2011 | 31 December 2010 | |||||||||||||||||||||||||||||||
£ '000 | £ '000 | |||||||||||||||||||||||||||||||
Net profit attributable to ordinary shareholders | 410 | 1,104 | ||||||||||||||||||||||||||||||
Weighted number of ordinary shares in issue | 40,817,599 | 41,052,531 | ||||||||||||||||||||||||||||||
Basic earnings per share, pence | 1.00 | 2.69 | ||||||||||||||||||||||||||||||
Diluted average number of shares | 40,817,599 | 41,052,531 | ||||||||||||||||||||||||||||||
Diluted earnings per share, pence | 1.00 | 2.69 | ||||||||||||||||||||||||||||||
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6. Dividends
Due to the business circumstances dictating the prudence and cash conservation, the Board has decided not to pay a final dividend in respect of the year ended 31 December 2011.