Investor Presentaiton
ICELAND
ISI SEAFOOD
1H 2023
Presentation to Investors
and Analysts
•
Impact of IS UK on ISI Group P&L 2023
£'m
Operational results 1H 2023.
(4,75)
Provision against inventory
Impairment Property
Impairment equipment
(0,52)
(3,05)
(4,02)
Total impact in 1H results
(12,33)
Estimated results Jul-Aug
(1,60)
Provision against inventory
Sales loss of shares
(0,80)
(0,30)
Total impact in Q3 results
(2,70)
Total impact 2023
(15,03)
Agreement reached to sell the operation of
Iceland Seafood UK
100% of share capital of IS UK sold to Espersen A/S
•
Espersen A/S is a Danish value-added producer, with factory operations in Europe and Asia, with significant
part of its sales into the UK retail market,
Property, machinery and equipment kept by ISI but leased to Espersen post transaction. Ownership of
machinery will transfer to Espersen at end of lease period, and they have option to buy the property at end
of the lease. These assets have been revalued at £3.1m in the balance sheet at 30.6.2023 based on
valuation of leasing agreements. Impairment of £7.1m included in loss from discontinued operation related
to the revaluation,
Intercompany loans from ISI to ISUK of £10.3m converted to equity prior to completion. Further injection
required to net out negative equity and contribute to projected EBIT losses in the period from September
to December 2023, Book value of equity at completion will amount to £0.3m, and will be sold at £1,000,
Due diligence process has been completed, transaction documents are being finalised. Completion of the
transaction will take place in September.
The ISUK operation have had severe negative impact on the Group operations and
financial results during the last 3.5 years,
Estimated negative P&L impact during 2023 until the sale is £15.1m. In addition to the negative operational results to end of August,
this amount includes £7.07m impairment of fixed assets, £1.32m of inventory write offs and sales loss of share capital of £0.3m,
Total assets of the Group will reduce by €22m with the transaction, estimated that equity ratio will improve to 27-28% post sale.
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