Origin Enterprises has reported H1 results this morning that show broad YoY declines for the seasonally less important six month period but management are confident for the full year based on current trends. Revenue for the Agri Services division decreased to €517 million (-8.8%) while the share of profits from associates and joint ventures decreased to €6.6 million (-38.4%) as a result of divestitures during the last year. Group operating profit amounted to €10.7 million for the period (-19.2% YoY). <p>

The company returned €100 million to shareholders during the period while net debt at the end of January showed an improvement of €15.2 million versus 2013 levels to close the month at €163.5 million. <p>

Given the strong outlook for the more significant fiscal H2 period, Origin management are increasing their full year guidance by 3% and are now forecasting for a full year adjusted diluted earnings per share outturn of 53.5c. On this basis, the shares are trading on 13.45x forecast earnings for the coming year.
<p><h5>David Holohan</h5>


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