Company report: Devenish (NI)
Devenish (N.I.) is a Northern Ireland registered company with major trading interests across the UK and the US. The group has 12 trading subsidiary companies including four registered in the USA and also a company registered in Mexico and another in Denmark. The group head office is in Clarendon Dock in Belfast.
The principal activities of the group are the creation of value by the development, manufacture and supply of quality nutrition products with new technologies and distinctive customer support in the agri-food sector.
These activities are supported by continuing significant spending on research and development.
The group has, in recent years, acquired a number of other businesses. This has been further increased by the purchase last June of the assets of A&J Nutrition Services Inc and, in November, the purchase of a 50% shareholding in a Turkish premix producer for £2.2m.
In the last three years, business turnover has increased strongly from £95m in the year to May 2013 to £187m in the year to May 2017.
The group presents its profits in line with the usual UK GAAP concepts, but has also stated an alternative format, used in this presentation, which states operating profits and pre-tax profits after allowing the effect of the R&D spending as offset by the accrual of the tax relief which is due on the R&D. This procedure increases the reported pre-tax profits.
Capital spending, including spending on capitalised intangible assets, rose sharply in 2016-17 to reach nearly £7m. However, in 2016-17 the group also spent £0.2m on acquisitions.
Since the end of the last financial year, £2.2m has been spent on a Turkish acquisition.
Post-tax profits have been added to reserves and the balance sheet value of shareholders' funds has doubled in the last four years, from over £12m in May 2013 to over £28m in May 2017.
Employment in the group continues to increase and averaged 396 people last year. Employment has doubled from an average of 176 people in 2013.