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REG - Donegal Investment - Half-year Results

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RNS Number : 3049G  Donegal Investment Group PLC  29 May 2026

 

DONEGAL INVESTMENT GROUP PLC

 

ANNOUNCEMENT OF RESULTS FOR THE 6 MONTHS ENDED 28 FEBRUARY 2026

 29 May 2026

 

Donegal Investment Group plc ('DIG') ('Company') ('Group') reports its interim
results for the 6 months ended 28 February 2026.

 

The 6-month period ended 28 February 2026 saw the Group complete the sale of
its seed potato businesses, IPM Potato Group Limited, AJ Allan Limited, IPM
Portugal Limited, IPM France Limited, IPM Holland Limited and IPM Kenya
Limited, collectively referred to as "IPM" to the Royal HZPC Group ("HZPC")
("the Disposal"). The board would like draw shareholders attention to the
following points:

 

·      Proceeds received from the disposal total €14.1m after payment
of all costs of disposal.

·      An additional €2.4m will be held in Escrow for a period of 24
months to February 2028.

·      An Asset held for sale of €0.5m has been recognised related to
the group's interest in Kirinyaga Seeds Limited.

·      The Group has recognised a profit on disposal of €8.5m after
deducting the carrying value of net identifiable assets disposed of and
non-controlling interests.

·      The Group has fully provided for the outstanding loan to Utkal
Seeds Limited of €0.95m, recognising an impairment loss equivalent to the
full outstanding balance.

·      Following Completion, the Company has become a cash shell for the
purposes of the Euronext Growth Rules and is therefore required to complete an
acquisition (or acquisitions) constituting a reverse takeover within 12 months
of Completion. If the Company fails to do this, trading in its Ordinary Shares
on Euronext Growth will be suspended.

·      The Group's cash position at period end 28 February 2026 was
€17.5m.

·      Following approval at the AGM on 27 March 2026, the board plan to
return €15m to shareholders at a price of €16 per share. The Group
currently has issued ordinary shares outstanding of 1,213,384. The conversion
and redemption will result in 936,997 shares being redeemed, leaving issued
ordinary shares outstanding of 276,387. The share redemption is expected to
take place in June 2026.

·      The board has taken further steps to reduce the corporate
overhead in light of the reduced complexity of the Group. The same governance
structures will remain in place for the foreseeable future to ensure
continuity and to protect the remaining interests of shareholders.

 

 

 

 

Enquiries:

 Investors & Analysts

 Padraic Lenehan

 Director

 Donegal Investment Group Plc

 Tel: 074 9121766

 Email: plenehan@donegaligroup.com (mailto:plenehan@donegaligroup.com)

 Anthony Farrell

 Davy Corporate Finance

 Tel: + 353 1 679 6363

 Email: anthony.farrell@davy.ie (mailto:anthony.farrell@davy.ie)

 

 

 

Donegal Investment Group plc

Condensed consolidated statement of profit or loss and comprehensive
income

         for the 6 months ended 28 February
2026
 
 
 
 

                                                                                                                                                 Audited

                                                                             6 months ended 28 February 2026   6 months ended 28 February 2025   12 months ended 31 August 2025

                                                                      Note   Total                             Total*                            Total

                                                                             €'000                             €'000                             €'000
 Continuing operations
 Revenue                                                              4      -                                 -                                 -
 Cost of sales                                                               -                                 -                                 -

 Gross profit                                                                -                                 -                                 -
 Other income                                                         5      -                                 3                                 -
 Other expense                                                        6      (951)                             -                                 (736)
 Distribution expenses                                                       -                                 -                                 -
 Administrative expenses                                                     (1,075)                           (779)                             (1,154)

 (Loss)/Profit from operating activities                                     (2,026)                           (776)                             (1,887)

 Finance income                                                              -                                 90                                85
 Finance expenses                                                            -                                 (2)                               (11)
 Net finance income                                                          -                                 88                                74

 (Loss)/Profit before income tax                                             (2,026)                           (688)                             (1,813)
 Income tax (charge)/benefit                                                 -                                 -                                 (1)

 (Loss)/Profit for the period - continuing operations                 4      (2,026)                           (688)                             (1,814)

 Profit for the year - from discontinued operations, net of tax              8,507                             3,212                             1,979

 Profit/(loss) for the year                                                  6,481                             2,524                             165

* As restated to reflect the disposal of IPM

 Donegal Investment Group plc

 Condensed consolidated statement of profit or loss and comprehensive income
 (continued)

 for the 6 months ended 28 February
 2026
                                                          Unaudited                                                                     Unaudited                              Audited
                                                          6 months ended 28 February 2026                                               6 months ended 28 February 2025        12 months ended 31 August 2025

                                                          Total                                                                         Total*                                 Total

                                                          €'000                                                                         €'000                                  €'000
 Other comprehensive income
 Items that are or may be reclassified to profit or loss

 Foreign currency translation differences for foreign operations                                              -                                                   2                                      (18)
 Recycle of currency translation differences for foreign operations                                           -                                                   -                                      -
 Total comprehensive income for the period                                                                    6,481                                               2,526                                  147

 Profit attributable to:
 Equity holders of the Company                                                                                6,481                                               2,509                                  113
 Non-controlling interest                                                                                     -                                                   15                                     52
                                                                                                              6,481                                               2,524                                  165
 Total comprehensive income attributable to:
 Equity holders of the Company                                                                                6,481                                               2,521                                  85
 Non-controlling interest                                                                                     -                                                   5                                      62
                                                                                                              6,481                                               2,526                                  147

* As restated to reflect the disposal of IPM

 

 

 Donegal Investment Group plc

 Condensed consolidated statement of profit or loss and comprehensive income
 (continued)

 for the 6 months ended 28 February
 2026
                                                                                                                  Unaudited                                                    Unaudited                              Audited
                                                                                                                  6 months ended 28 February 2026                              6 months ended 28 February 2025*       12 months ended 31 August 2025

                                                                                                                  Total                                                        Total                                  Total

                                                                                                                  €'000                                                        €'000                                  €'000

 Earnings per share
 Basic earnings per share

 (euro cent):

 Continuing                                                                                                        (166.96)                                                    (47.24)                                (135.61)
 Discontinued                                                                                                     701.07                                                        219.47                                144.15
                                                                                                                  534.11                                                        172.23                                8.54
 Diluted earnings per share (euro cent):

 Continuing

                                                                                                                  (166.96)                                                     (47.24)                                (135.61)
 Discontinued                                                                                                      701.07                                                       219.47                                144.15
                                                                                                                  534.11                                                        172.23                                8.54

* As restated to reflect the disposal of IPM

 

 

Donegal Investment Group plc

Condensed consolidated statement of financial position

As at 28 February 2026

                                                                            Unaudited             Unaudited           Audited
                                                                      Note  28 February 2026      28 February 2025    31

                                                                            €'000                 €'000               August

                                                                                                                      2025

                                                                                                                      €'000
 Assets
 Property, plant and equipment                                              -                     3,782               -
 Investment property                                                  8     -                     475                 -
 Goodwill                                                                   -                     500                 -
 Intangible assets                                                          -                     227                 -
 Investment in associates                                                   -                     -                   -
 Other investments                                                          -                     737                 -
 Total non-current assets                                                   -                     5,721               -

 Inventories                                                                -                     1,884               -
 Biological assets                                                          -                     -                   -
 Trade and other receivables                                                43                    14,812              835
 Asset held for sale                                                        460                   -                   13,647
 Escrow Receivable                                                          2,400                 -                   -
 Cash at bank                                                               17,464                7,413               3,960
 Current tax                                                                -                     -                   4

 Total current assets                                                       20,367                24,109              18,446

 Total assets                                                               20,367                29,830              18,446

 Equity
 Share capital                                                              159                   159                 159
 Share premium account                                                      2,975                 2,975               2,975
 Other reserves                                                             (931)                 (643)               (931)
 Retained earnings                                                          17,125                13,331              10,644
 Total equity attributable to equity holders of the Company

                                                                            19,328                15,822              12,847
 Non-controlling interest                                                   (214)                 (587)               (530)
 Donegal Investment Group plc

 Condensed consolidated statement of financial position (continued)

 As at 28 February 2026

 Total equity                                                               19,114                15,235              12,317
 Liabilities
 Loans and borrowings                                                       -                     601                 -
 Deferred tax liabilities                                                   -                     46                  -
 Deferred income                                                            -                     168                 -
 Total non-current liabilities                                              -                     815                 -

 Loans and borrowings                                                       -                     368                 -
 Trade and other payables                                                   1,253                 8,676               312
 Liabilities directly associated with asset held for sale                   -                     -                   5,817
 Bank overdraft                                                             -                     4,396               -
 Current tax                                                                -                     340                 -

 Total current liabilities                                                  1,253                 13,780              6,129

 Total liabilities                                                          1,253                 14,595              6,129

 Total equity and liabilities                                               20,367                29,830              18,446

Donegal Investment Group plc

Condensed consolidated statement of changes in equity

for the 6 months ended 28 February
2026

                                                                 Other un- denominated capital  Share     Trans-    Treasury                       Non-

                                                       Share     €'000                          premium   lation    reserve   Retained             controlling   Total

                                                       capital                                  account   reserve   €'000     earnings   Total     interest      equity

                                                       €'000                                    €'000     €'000               €'000      €'000     €'000         €'000
 Balance at 1 September 2025                           159       1,178                          2,975     (1,800)   (309)     10,644     12,847    (530)         12,317

 Total comprehensive income for the period
 Profit for the period                                 -         -                              -         -         -         6,481      6,481     -             6,481
 Other comprehensive income
 Foreign currency translation differences for foreign

 Operations

                                                       -         -                              -         -         -         -          -         -             -
 Other comprehensive income                            -         -                              -         -         -         -          -         -             -
 Total comprehensive income for the period

                                                       -         -                              -         -         -         6,481      6,481     -             6,481

 

 Transactions with owners recorded directly in equity
 Contributions by and distributions to owners
 Derecognition of minority interest                    -    -      -      -        -                -                       -         316    316
 Total contributions by and distributions to owners

                                                       -    -      -      -        -                  -                     -         316    316

 Balance at 28 February 2026                           159  1,178  2,975  (1,800)  (309)  17,125                     19,328           (214)  19,114

 

 

 

 

Donegal Investment Group plc

Condensed consolidated statement of changes in equity

for the 6 months ended 28 February
2026

                                                                 Other un- denominated capital  Share     Trans-    Treasury                       Non-

                                                       Share     €'000                          premium   lation    reserve   Retained             controlling   Total

                                                       capital                                  account   reserve   €'000     earnings   Total     interest      equity

                                                       €'000                                    €'000     €'000               €'000      €'000     €'000         €'000
 Balance at 1 September 2024                           197       1,140                          2,975     (1,772)   (48)      15,602     18,094    (592)         17,502

 Total comprehensive income for the period
 Profit for the period                                 -         -                              -         -         -         2,509      2,509     15            2,524
 Other comprehensive income
 Foreign currency translation differences for foreign

 Operations

                                                       -         -                              -         12        -         -          12        (10)          2
 Other comprehensive income                            -         -                              -         12        -         -          12        (10)          2
 Total comprehensive income for the period

                                                       -         -                              -         12        -         2,509      2,521     5             2,526

 

 Transactions with owners recorded directly in equity
 Contributions by and distributions to owners
 Conversion and Redemption of Redeemable Shares        (38)   38     -      -        -           (4,780)                      (4,780)   -      (4,780)
 Purchase of treasury shares                           -      -      -      -        (13)                   -                 (13)      -      (13)
 Total contributions by and distributions to owners

                                                       (38)   38     -      -        (13)   (4,780)                           (4,793)   -      (4,793)

 Balance at 28 February 2025                           159    1,178  2,975  (1,760)  (61)   13,331                            15,822    (587)  15,235

 

 

Donegal Investment Group plc

Condensed consolidated statement of cash
flows

for the 6 months ended 28 February
2026
-

                                                                                                                                                                                                                  6 months ended 28 February 2026      6 months ended 28 February 2025      12 months ended 31 August 2025

 Note

                                                                                                                                                                                                                  €'000                                €'000                                €'000
 Cash flows from operating activities
 Profit for the period                                                                                                                                                                                            6,481                                2,524                                165
 Adjustments for:
 Depreciation                                                                                                                                                                                                     -                                    210                                  493
 Amortisation of intangibles                                                                                                                                                                                      -                                    13                                   26
 Amortisation of capital grant                                                                                                                                                                                    -                                    1                                    1
 Reversal of investment asset impairment                                                                                                                                                                          -                                    -                                    -
 Change in fair value of investment property                                                                                                                                                                      -                                    (5)                                  35
 Release of warranty provision                                                                                                                                                                                    -                                    -                                    (53)
 Change in fair value of other investments                                                                                                                                                                        951                                  -                                    736
 Net finance income                                                                                                                                                                                               -                                    (237)                                142
 Interest charged in relation to lease arrangements                                                                                                                                                               -                                    26                                   53
 MTM Revaluation of Debt Instruments                                                                                                                                                                              -                                    -                                    -
 Gain on sale of other investments                                                                                                                                                                                -                                    -                                    -
 Gain on sale of property, plant and equipment                                                                                                                                                                    -                                    (42)                                 (70)
 Profit for the year - from discontinued operations, net of tax                                                                                                                                                   (8,507)                              -                                    -
 Share-based payment transactions                                                                                                                                                                                 -                                    -                                    -
 Income tax expense                                                                                                                                                                                               -                                    334                                  686
 Change in inventories                                                                                                                                                                                            -                                    791                                  (482)
 Change in trade and other receivables                                                                                                                                                                            2,494                                (10,433)                             (1,125)
 Change in trade and other payables                                                                                                                                                                               (2,333)                              5,588                                505
                                                                                                                                                                                                                  (914)                                (1,230)                              1,112

 Interest (paid)/refund                                                                                                                                                                                           -                                    (11)                                 (18)
 Income tax (paid)/refund                                                                                                                                                                                         -                                    (113)                                (498)

 Net cash from operating activities                                                                                                                                                                               (914)                                (1,354)                              596

 Cash flows from investing activities
 Interest received                                                                                                                                                                                                -                                    54                                   48
 Dividends received                                                                                                                                                                                               -                                    -                                    -
 Proceeds from sale of investment property                                                                                                                                                                        -                                    -                                    112
 Dividend received from associate                                                                                                                                                                                 -                                    36                                   37
 Proceeds from sale of property, plant and equipment                                                                                                                                                              -                                    49                                   77
 Proceeds from sale of other investments                                                                                                                                                                          -                                    -                                    -
 Disposal of discontinued operations, net of cash disposed of                                                                                                                                                     14,147                               -                                    -
 Acquisition of property, plant and equipment                                                                                                                                                                     -                                    (338)                                (396)
 Acquisition of intangibles                                                                                                                                                                                       -                                    (117)                                (117)

 Net cash (used)/generated in investing activities                                                                                                                                                                14,147                               (316)                                (239)

 

 

 

 

 

 

 

 

 

 

 

 

Donegal Investment Group plc

Condensed consolidated statement of cash flows
(continued)

for the 6 months ended 28 February
2026

                                                                                                                                                                                                                          6 months ended 28 February 2026      6 months ended 28 February 2025      12 months ended 31 August 2025

 Note
                                                                                                                                                                                                                          €'000                                €'000                                €'000
 Cash flows from financing activities
 Payment of finance lease liabilities                                                                                                                                                                                     -                                    (195)                                (464)
 Redemption/(Acquisition) of Debt Instruments                                                                                                                                                                             -                                    7,086                                7,086
 Purchase of treasury shares                                                                                                                                                                                              -                                    (13)                                 (261)

 Share redemption                                                                                                                                                                                                         -                                    (4,780)                              (4,780)

 Dividend paid                                                                                                                                                                                                            -                                    -                                    (291)

 Net cashflow from financing activities                                                                                                                                                                                   -                                    2,098                                1,290

 Net increase/(decrease) in cash and cash equivalents                                                                                                                                                                     13,233                               428                                  1,647
 Cash and cash equivalents at start of period                                                                                                                                                                             4,231                                2,586                                2,586
 Effect of exchange rate fluctuations on cash held                                                                                                                                                                        -                                    3                                    (2)

 Cash and cash equivalents at period end                                                                                                                                                                                  17,464                               3,017                                4,231

 

 

 

 

Donegal Investment Group plc

Notes to the unaudited preliminary condensed consolidated financial statements

for the 6 months ended 28 February 2026

 

(1) Reporting entity

 

Donegal Investment Group Plc (the "Company") is a company domiciled in
Ireland. The unaudited condensed consolidated interim financial statements of
the Group as at and for the six months ended 28 February 2026 ("the interim
financial statements") comprise the Company and its subsidiaries (together
referred to as the "Group") and the Group's interests in associates.

 

(2)  Basis of preparation

 

These interim financial statements have been prepared in accordance with IAS
34 Interim Financial Reporting and should be read in conjunction with the
Group's last annual consolidated financial statements as at and for the year
ended 31 August 2025 ('last annual financial statements'). They do not include
all of the information required for a complete set of IFRS financial
statements. However, selected explanatory notes are included to explain events
and transactions that are significant to an understanding of the changes in
the Group's financial position and performance since the last annual financial
statements.

 

The 28 February 2026 figures and the 28 February 2025 comparative figures do
not constitute statutory financial statements of the Group within the meaning
of the Companies Act, 2014. The consolidated financial statements of the Group
for the year ended 31 August 2024, together with the independent auditor's
report thereon, were filed with the Irish Registrar of Companies following the
Company's Annual General Meeting and are also available on the Company's
Website. The auditor's report on those financial statements was unqualified.

 

The interim financial statements have been prepared on the going concern
basis. The Directors have reviewed the Group's business plan for the next 12
months and other relevant information and have a reasonable expectation that
the Group will continue in operational existence for the foreseeable future.

 

The Interim Financial Statements are presented in Euro, rounded to the nearest
thousand, which is the functional currency of the Company and also the
presentation currency for the Group's financial reporting.

 

The significant accounting policies applied in these interim financial
statements are the same as those applied by the Group in its consolidated
financial statements as at and for the year ending 31 August 2025.

 

(3)  Estimates and judgements

 

The preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates. In preparing
these financial statements, the significant judgements made by management in
applying the Group's accounting policies and the key sources of estimation
uncertainty were the same as those that applied in prior impairment of trade
receivables, in respect of the carrying value of goodwill, recognition of
deferred tax assets, measurement of financial assets and liabilities.

 

 

 

 

 

 

Donegal Investment Group plc

Notes to the unaudited preliminary condensed consolidated financial statements
(continued)

for the 6 months ended 28 February 2026

 

(4)  Segment Information

 

IFRS 8 Operating Segments requires operating segments to be identified on the
basis of internal reports that are regularly reviewed by the chief operating
decision maker (CODM) which the Group has identified to the Board of Directors
in order to allocate resources to the segments and to assess their
performance.

 

Produce: The growing, sales and distribution of seed potatoes and rental and
sale of related property assets.

The main factors employed in the identification of the single segment include:

• the Group's organisational structure

• the nature of reporting lines to the Chief Operating Decision Maker

• the structure of internal reporting documentation such as management
accounts and budgets

• Segment performance is evaluated based on operating profit. Given that net
finance costs, taxation, share based payments and exceptional income and costs
are managed on a centralised basis, these items are not allocated to the
operating segment for internal reporting purposes and in the segmental
analysis below.

Donegal Investment Group plc

Notes to the unaudited preliminary condensed consolidated financial statements
(continued)

for the 6 months ended 28 February 2026

 

(4)  Segment information (continued)

 

Business segments (continued)

                                                                                  Produce                                                                                         Total - Group
                                                                                  6 months ended 28 February 2026  6                                12                            6 months ended 28 February 2026  6                                12

                                                                                                                   months ended 28 February 2025*   months ended 31 August 2025                                    months ended 28 February 2025*   months ended 31 August 2025
                                                                                  €'000                            €'000                            €'000                         €'000                            €'000                            €'000

 Total revenues                                                                   -                                -                                -                             -                                -                                -

 Segment result before exceptional items                                          (2,026)                          (776)                            1,887                                  (2,026)                          (776)                     (1,887)

 Segmental result from continuing operations before exceptional items

                                                                                  (2,026)                          (776)                            1,887                                  (2,026)                          (776)                      (1,887)

 Change in fair value of investment property and other assets                                                                                                                     -                                -                                -
 Net finance income                                                                                                                                                                -                                88                              74
 Income tax (expense)/benefit                                                                                                                                                     -                                -                                (1)
 (Loss)/profit for the period - continuing operations                                                                                                                             (2,026)                          (688)                            (1,814)

 

   * As restated to reflect the disposal of IPM

 

 

 

 

 

Donegal Investment Group plc

Notes to the unaudited preliminary condensed consolidated financial statements
(continued)

for the 6 months ended 28 February 2026

 

(4)  Segment Information (continued)

Business segments (continued)

                                                                                        Produce                                          Total - Group
                                                                             28 February 2026      28 February 2025  31 August 2025      28 February 2026  28 February 2025

                                                                                                                                                                             31 August 2025
                                                                             €'000                 €'000             €'000               €'000             €'000             €'000
                                                                             503                   22,417                                503               22,417

 Segment assets                                                                                                      839                                                     839
 Cash at bank (unallocated)                                                                                                              17,464            7,413             3,960
 Escrow Receivable                                                                                                                       2,400                               -
 Asset held for sale                                                                                                                     -                 -                 13,647
                                                                                                                                         20,367            29,830

                                                                                                                                                                             18,446

 Segment liabilities                                                         1,253                 9,230                                 1,253             9,230

                                                                                                                     312                                                     312

 Bank overdraft (unallocated)                                                                                                            -                 4,396             -
 Liabilities directly associated with asset held for sale                                                                                -                 -                 5,817
 Loans and borrowings (unallocated)                                                                                                      -                 969               -

 Total liabilities                                                                                                                       1,253             14,595            6,129
 Capital expenditure (inclusive of IFRS 16)                                  -                     662                                   -                 662

                                                                                                                     -                                                       -
 Depreciation and amortisation                                               -                     223               -                   -                 223               -
 Change in fair value of investment property and other assets                -                     5                                     -                 5

                                                                                                                     -                                                       -

 

Donegal Investment Group plc

Notes to the unaudited preliminary condensed consolidated financial statements
(continued)

for the 6 months ended 28 February 2026

 

(5)  Other income - continuing
operations
     6 months ended         6 months ended       12 months
ended

                                                      28 February 2026  28 February 2025*  31 August 2025  2019
                                                      €'000             €'000              €'000           €'000
 Income from investment and other property rentals    -                 3                  3               80
                                                      -                 3                  3               110

 

 

(6)  Other expense - continuing
operations
      6 months ended         6 months ended     12 months
ended

                                             28 February 2026  29 February 2025*  31 August 2025  2019
                                             €'000             €'000              €'000           €'000
 Change in fair value of other investment    (951)             -                  (736)           80
                                             (951)             -                  (736)           110

 

* As restated to reflect the disposal of IPM

 

 

Donegal Investment Group plc

Notes to the unaudited preliminary condensed consolidated financial statements
(continued)

for the 6 months ended 28 February 2026

 

(7)  Earnings per share

 

The calculation of basic and diluted earnings per share is set out below:

 
   6 months ended                 6 months ended   12
months ended

                                                                        28 February 2026     28 February                                                                                                            31 August

                                                                                             2025*                                                                                                                            2025
                                                                        €'000                €'000                                                                                                    €'000
 (Loss)/Profit for the period - continuing operations                   (2,026)              (688)                                                                                                    (1,814)
 (Loss)/Profit for the period - discontinued operations                 8,507                3,212                                                                                                    1,979

 (Loss)/Profit for the period                                           6,481                2,524                                                                                                    165

 (Loss)/Profit attributable to ordinary shareholders                    6,481                2,509                                                                                                    113

 Weighted average number of ordinary shares                             6 months ended                            6 months                                                      12 months

 In thousands of shares                                                 28 February 2026                          ended                                                         ended

                                                                        €'000                                     28 February 2025                                              31 August 2025

                                                                                                                  €'000                                                                         €'000
 Weighted average number of ordinary shares in issue for the period     1,233                                     1,460                                                         1,345
 Weighted average number of treasury shares                             (19)                                      (3)                                                           (8)

 Denominator for basic earnings per share                               1,214                                     1,457                                                         1,337

 Weighted average number of ordinary shares (diluted) at end of period  1,214                                     1,457                                                         1,337

                                                                        6 months                                                       6 months                                 12 months ended

                                                                        ended                                                           ended                                   31 August

                                                                        28 February                                                    28 February                               2025

                                                                         2026                                                           2025*
 Basic earnings/(loss) per share (euro cent)

 Continuing                                                                                  (166.96)                                                  (47.24)                  (135.61)
 Discontinued                                                           701.07                                                                         219.47                   144.15
                                                                                   534.11                                                      172.23                           8.54

 Diluted earnings/(loss) per share (euro cent)                                                 (166.96)

 Continuing                                                                                                                             (47.24)                                 (135.61)
 Discontinued                                                                     701.07                                                    219.47                              144.15
                                                                                   534.11                                                      172.23                           8.54

* As restated to reflect the disposal of IPM

Donegal Investment Group plc

Notes to the unaudited preliminary condensed consolidated financial statements
(continued)

for the 6 months ended 28 February 2026

 

 
 
 

 (8)  Investment property                  28 February 2026  28 February 2025  31 August 2025
                                           €'000             €'000             €'000
 Balance at start of the period            -                 583               583
 Disposal of investment property           -                 (113)             (113)
 Change in fair value                      -                 5                 (35)
 Asset transferred to asset held for sale  -                 -                 (435)
 Balance at end of the period              -                 475               -

 

 

 

(9)  Events after the balance sheet date

 

There have been no significant events subsequent to the period end, which
would require adjustment to, or disclosure in, the interim financial
statements.

 

 

 

Donegal Investment Group plc

Notes to the preliminary condensed consolidated financial statements
(continued)

for the 6 months ended 28 February 2026

 

(10)  Share Capital

 

                                     Ordinary Shares        Redeemable Ordinary Shares      Deferred Shares       Total

of €0.13 each
of €0.13 each
of €0.13 each
                                     Number      €'000      Number          €'000           Number     €'000      €'000
 Authorised
 Balance at 1 September 2025         50,000,000  6,500      290,222         38              290,222    38         6,576
 Balance at 28 February 2026         50,000,000  6,500      290,222         38              290,222    38         6,576

 Issued, called up and fully paid
 Balance at 1 September 2025         1,232,071   159        -               -               -          -          159
 Balance at 28 February 2026         1,232,071   159        -               -               -          -          159

 

 

(11)  Related party transactions

 

Details of related party transactions in respect of the year ended 31 August
2025 are contained in Note 34 to the Consolidated Financial Statements of the
Group's 2025 Annual Report. The Group continued to enter into transactions in
the normal course of business with its associates and other related parties
during the period. The Group has entered into consultancy agreements with
Culkeen Consulting Limited, which is owned and operated by Non-Executive
Director, Mr Ian Ireland, and Drumgornan Limited, which is owned and operated
by Non-Executive Director, Mr Padraic Lenehan. These companies will provide
management services as required to support the strategy of the board going
forward. There were no other transactions with related parties in the period
or changes to transactions with related parties disclosed during the period
that had a material effect on the financial position or the performance of the
Group.

 

 

(12) Discontinued operations

 

During the period, the Group disposed of its seed potato businesses, IPM
Potato Group Limited, AJ Allan Limited, IPM Portugal Limited, IPM France
Limited, IPM Holland Limited and IPM Kenya Limited, collectively referred to
as "IPM" to the Royal HZPC Group ("HZPC") ("the Disposal").

 

At 31 August 2025, the proposed disposal of IPM met the recognition criteria
under IFRS 5 Non-current assets held for sale and discontinued operations. The
Group has not recognised any trade for the period to 28 February 2026 and
profit for the year from discontinued operation of €8.5m relates solely to
the profit on disposal of IPM.

 

 

 

 

 

 

 

 

 

Donegal Investment Group plc

Notes to the preliminary condensed consolidated financial statements
(continued)

for the 6 months ended 28 February 2026

 

(13) Disposal of subsidiary

 

                                                     28 February 2026  28 February 2025
                                                     €'000             €'000

 Profit on disposal of asset held for sale, net      8,507             -

 

On 6 February 2026, the Group announced that it has completed the disposal of
its seed potato businesses, IPM Potato Group Limited, AJ Allan Limited, IPM
Portugal Limited, IPM France Limited, IPM Holland Limited and IPM Kenya
Limited, collectively referred to as "IPM" to the Royal HZPC Group ("HZPC")
("the Disposal"). Following completion Donegal Investment Group has received
€13.9m including existing IPM cash of €0.3m and customary completion
account adjustments of -€0.5M. A further €2.4m will be held in Escrow for
a period of 24 months to February 2028 ("Escrow Period"). IPM completed the
sale of its Investment Property in Dublin on 13 November 2025 resulting in an
additional consideration of €0.5m to DIG at completion.

 

A further contingent deferred cash consideration of up to a maximum of €4m
is payable dependent on the financial performance of IPM for the period 1
September 2025 to 31 August 2027, inclusive ("Deferred Consideration"). Based
on recent indications of the performance of IPM for the financial year ended
31 August 2026, the board believe no deferred consideration will be
forthcoming at the end of the 2-year period. The seed potato industry has
experienced a highly challenging year with market prices under significant
downward pressure, particularly in some of IPM's key markets.

 

The carrying value of net identifiable assets disposed of amounts to
€7,907,000 resulting in a profit on disposal of €8,507,000 after
accounting for the non-controlling interest of €316,000.

 

The net assets of the businesses disposed of were as follows:

 

                                                2026
                                                €'000
 Assets
 Goodwill and Intangible assets
          628
 Property, plant & equipment                            3,660
 Inventories                                             1,246
 Biological stock                                       1,804
 Trade & other receivables                              4,615
 Cash & cash equivalents                                1,336
 Investment Property                                       435
 Total assets                                         13,724

 Liabilities
 Trade and other payables                            (3,276)
 Loans and borrowings                                   (958)
 Bank Overdraft                                      (1,065)
 Deferred Tax liabilities                               (145)
 Capital Grants                                 (140)
 Current Tax                                    (233)
 Total liabilities                              (5,817)

 Total enterprise value
 

                                                7,907

 

 

 

           628
         3,660
          1,246
         1,804
         4,615
         1,336
            435
       13,724

      (3,276)
         (958)
      (1,065)
         (145)
 (140)
 (233)
 (5,817)

 

7,907

 

 

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