For immediate release |
27 September
2016 |
AfriAg Global PLC
(“AfriAg Global”, the “Group” or the
“Company”)
Unaudited Interim
Results for the six months to 30 June
2016
AfriAg Global PLC (ISDX: AFRI), the London listed global food logistics
specialists, today announces an excellent first half year
performance with it’s first ever half year profit recorded in its
unaudited interim results for the 6-month period ended 30 June 2016.
Summary of Financial Results for the
period:
- The Group’s gross turnover has increased by over 264% to £1.422
million for the period (6 months ended 30
June 2015 - £537,000)
- The Group’s 40% owned AfriAg SA’s gross turnover has increased
by 240% to £4.430 million for the period (6 months ended
30 June 2015 - £1.849 million)
- The Group’s net profit after taxation for the period was
£48,000 (6 months ended 30 June 2015
- £168,000 loss).
- The Group’s current assets including cash of £172,000 at
30 June 2016 amounted to £1,063,000
(6 months ended 30 June 2015:
£977,000).
David Lenigas, Executive Chairman of AfriAg Global,
commented: "The start of 2016 has seen the business and its
investments grow substantially, indeed more than we could have
anticipated. We see an even stronger second half performance
in front of the us as we gear up for the very busy pre-Christmas
period. Our customer base has spread far more globally over the
last 6 months, with regular airfreight shipments of food, not only
around and within southern Africa,
but to the USA, Europe, the Middle
East and Asia.”
Strategic Review for the Period:
AfriAg Marketing:
(100% owned by the Company)
The first half of 2016 has been an outstanding period of growth
for the Company, with its 100% owned marketing division AfriAg
Marketing Pty Ltd ("AfriAg Marketing") generating in excess of 264%
increase in revenues, compared to the same period last year, to
ZAR 31.307 million (£1.422 million)
with a net profit for the period of ZAR
2.153 million (£98,000) and total assets of ZAR 7.569 million (£382,000).
AfriAg Marketing has had an excellent first half trading
performance, almost matching the whole of last year’s trading
performance. We continued to trade and ship our core lines of peas
(sugar snap and Mange tout), pineapples, passionfruit, citrus,
apples, herbs, chilies, butternuts from Africa to export markets mainly in
Europe.
AfriAg (Pty) Ltd:
(40% owned by the Company)
In addition, the Company is pleased to report that the
specialist global agri-logistics group AfriAg (Pty) Ltd ("AfriAg
SA") in which the Company has a 40% equity shareholding, continues
to grow from strength to strength. It has reported a 240% growth in
top line revenues for the 6 month to 30 June
2016 of ZAR 97.555 million
(£4.430 million) compared to the same period last year, with a net
profit for the 6 months of ZAR 0.338
million (£15,000) and total assets of ZAR 68.818 million (£3.473 million). The Company
has equity-accounted for its 40% share of this profit for 2016,
being £6,000 (30 June 2015: Loss
£19,000).
Likewise, AfriAg SA had a stellar performance for the period
with its airfreight shipments of perishable food for the period
recording a record 1.45 million kg, which has increased by 158%
over the same period last year (6 months ended 30 June 2015: 907,000 kg). This growth has come
primarily from increasing exports of perishable food from southern
Africa to global markets
stretching from Asia, the
USA and Europe. The business has also seen a
substantial increase in business from shipments of frozen meat
products by sea and road from South
America, Europe and the
USA in to Africa.
Outlook:
In August
2016, the Company announces that it has launched a new 100%
owned UK subsidiary, AfriAg International Limited ("AfriAg
International"), to promote and sell fresh food produce from
southern African producers directly in to the UK and European
market places. AfriAg International will provide a UK
representational base for AfriAg Marketing's Sub-Saharan based
growers, who are already permitted to sell their fresh food produce
directly in to the EU markets, and provide them with direct access
to UK and European retailers. AfriAg International intends to offer
fresh food and vegetables from producers across Kenya, Zimbabwe, Mauritius and South
Africa that are sustainable, renewable and responsibly
grown. Our fresh produce offer will include: Herbs, Apples, Pears,
Blueberries, Physalis, Lychees, Citrus, Table Grapes, Fine beans,
Sugar snap, Mange tout, Pineapples, Passionfruit, Herbs, Chilies,
Butternut and Sweet potatoes.
AfriAg SA has advised the Company that it has placed orders for
another 20 refrigerated trucks to increase its fleet from the
current 52 to 72 before the end of the year, to cope with the pace
of expansion of the trucking logistics division in southern
Africa.
Financial Results:
During the period, the Company increased revenues to £1,422,000
(6 months ended 30 June 2015:
£537,000) and made a gross profit of £183,000 (6 months ended
30 June 2015: £49,000). The operating
profit for the period was £6,000 (6 months ended 30 June 2015: loss £154,000). The total
comprehensive income for the period attributable to equity holders
of the parent was £87,000 (6 months ended 30
June 2015: loss £169,000).
There was a weighted earnings per share of 0.003p (30 June 2015: loss per share 0.01p).
Current assets at 30 June 2016
amounted to £1,063,000 (30 June 2015:
£977,000).
In addition, the Company’s 40% owned AfriAg SA increased
revenues to £4.430 million (6 months ended 30 June 2015: £1.849 million) and made a gross
profit of £286,000 (6 months ended 30 June
2015: £58,000), with a net profit for the 6 months of
£15,000 and total assets of £3.473 million. The Company has
equity-accounted for its 40% share of this profit for the 6 months
to 30 June 2016, being £6,000 (6
months ended 30 June 2015: Loss
£19,000).
The unaudited interim results to 30 June
2016 have not been reviewed by the Company’s auditor.
In Conclusion:
The Board would like to take this opportunity to thank our
shareholders, staff and consultants for their continued support and
I look forward to reporting further progress over the next period
and beyond.
David Lenigas
Executive Chairman
27 September 2016
For further information, please
contact:
AfriAg Global
plc:
+44 (0) 20 7440 0640
David Lenigas / Anthony Samaha
Nominated Adviser and Broker:
Peterhouse Corporate Finance
Limited
+44 (0) 20 7469 0930
Guy Miller / Fungai Ndore
Condensed Consolidated Statement of Comprehensive Income
(unaudited)
for the 6 months ended 30 June
2016
|
|
|
|
|
|
|
6 months
to |
6 months
to |
Year
ended |
|
|
30
June |
30
June |
31
December |
|
|
2016 |
2015 |
2015 |
|
|
Unaudited |
Unaudited |
Audited |
|
Note |
£’000 |
£’000 |
£’000 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
1,422 |
537 |
1,977 |
Cost of sales |
|
(1,239) |
(488) |
(1,927) |
Gross
Profit |
|
183 |
49 |
50 |
|
|
|
|
|
Administration
expenses |
|
(177) |
(203) |
(313) |
Share Based Payment
Charge |
|
- |
- |
- |
|
|
|
|
|
Operating
profit/(loss) |
|
6 |
(154) |
(263) |
|
|
|
|
|
Share of associate
result |
|
6 |
(19) |
143 |
Finance costs |
|
(5) |
- |
(2) |
Investment income |
|
41 |
5 |
26 |
|
|
|
|
|
Profit/(loss)
before tax |
|
48 |
(168) |
(96) |
Tax |
|
- |
- |
- |
|
|
|
|
|
Retained
profit/(loss) for the period |
|
48 |
(168) |
(96) |
|
|
|
|
|
Other comprehensive
income |
|
|
|
|
(Loss)/gain on
revaluation of available for sale investments |
|
(6) |
32 |
36 |
Transfer to income
statement |
|
(24) |
- |
(7) |
Translation exchange
gain/(loss) |
|
69 |
(33) |
(102) |
Total comprehensive income |
|
39 |
(1) |
(73) |
Total comprehensive
income/(loss) for the period attributable to equity holders of the
parent |
|
87 |
(169) |
(169) |
|
|
|
|
|
Earnings/(loss) per
share (p) |
2 |
|
|
|
Basic |
|
0.003 |
(0.01) |
(0.01) |
Diluted |
|
0.003 |
(0.01) |
(0.01) |
All of the revenues and loss above derived from continuing
operations.
Condensed Consolidated Statement of Financial Position
(unaudited)
At 30 June 2016
|
|
30 June
2016 |
30 June
2015 |
31
December 2015 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
£’000 |
£’000 |
£’000 |
|
|
|
|
|
Non-current
assets |
|
|
|
|
Property, plant &
equipment |
|
4 |
1 |
2 |
Investments in
associates |
|
1,482 |
1,314 |
1,476 |
Total non-current
assets |
|
1,486 |
1,315 |
1,478 |
|
|
|
|
|
Current
assets |
|
|
|
|
Inventory |
|
5 |
61 |
- |
Trade and other
receivables |
|
758 |
571 |
385 |
Available for sale
assets |
|
128 |
218 |
177 |
Cash and cash
equivalents |
|
172 |
127 |
248 |
Total current
assets |
|
1,063 |
977 |
810 |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
2,549 |
2,292 |
2,288 |
|
|
|
|
|
Current
liabilities |
|
|
|
|
Trade and other
payables |
|
(865) |
(675) |
(691) |
Total current
liabilities |
|
(865) |
(675) |
(691) |
|
|
|
|
|
|
|
|
|
|
Net current
assets |
|
198 |
302 |
119 |
|
|
|
|
|
Net assets |
|
1,684 |
1,617 |
1,597 |
|
|
|
|
|
Equity |
|
|
|
|
Share capital |
|
1,381 |
1,381 |
1,381 |
Share premium
account |
|
8,548 |
8,548 |
8,528 |
Share based payment
reserve |
|
213 |
213 |
213 |
Revaluation
reserves |
|
(16) |
17 |
14 |
Foreign currency
reserve |
|
(54) |
(54) |
(123) |
Retained earnings |
|
(8,368) |
(8,488) |
(8,416) |
|
|
|
|
|
Total
equity |
|
1,684 |
1,617 |
1,597 |
Condensed Consolidated Statement of Changes in Equity
(unaudited)
for the 6 months ended 30 June
2016
|
Share
capital |
Share
premium |
Share based
payment
reserve |
Foreign currency
reserve |
Revaluation
reserves |
Retained
earnings |
Total |
|
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
At 31 December 2014 |
1,381 |
8,548 |
213 |
(21) |
(15) |
(8,320) |
1,786 |
|
|
|
|
|
|
|
|
(Loss) for the period |
- |
- |
- |
- |
- |
(96) |
(96) |
Currency translation (loss) |
- |
- |
- |
(102) |
- |
- |
(102) |
Gain on revaluation of available for
sale investments |
- |
- |
- |
- |
36 |
- |
36 |
Transfer to income statement |
- |
- |
- |
- |
(7) |
- |
(7) |
Total Comprehensive
Income |
- |
- |
- |
(102) |
29 |
(96) |
(169) |
Shares issue costs |
- |
(20) |
- |
- |
- |
- |
(20) |
Total contributions by and
distributions to owners of the Company |
- |
(20) |
- |
- |
- |
- |
(20) |
|
|
|
|
|
|
|
|
At 31 December 2015 |
1,381 |
8,528 |
213 |
(123) |
14 |
(8,416) |
1,597 |
|
|
|
|
|
|
|
|
Profit for the period |
- |
- |
- |
- |
- |
48 |
48 |
Currency translation gain |
- |
- |
- |
69 |
- |
- |
69 |
(Loss) on revaluation of available
for sale investments |
- |
- |
- |
- |
(6) |
- |
(6) |
Transfer to income statement |
- |
- |
- |
- |
(24) |
- |
(24) |
Total Comprehensive
Income |
- |
- |
- |
69 |
(30) |
48 |
87 |
Shares issue costs |
- |
- |
- |
- |
- |
- |
- |
Total contributions by and
distributions to owners of the Company |
- |
- |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
At 30 June 2016 |
1,381 |
8,528 |
213 |
(54) |
(16) |
(8,368) |
1,684 |
Condensed Consolidated Statement of Cash Flows (unaudited)
for the 6 months ended 30 June
2016
|
6
months to |
6 months
to |
Year
ended |
|
30
June |
30
June |
31
December |
|
2016 |
2015 |
2015 |
|
Unaudited |
Unaudited |
Audited |
|
£’000 |
£’000 |
£’000 |
|
|
|
|
Cash flows from
operations |
|
|
|
Operating
profit/(loss) |
6 |
(154) |
(263) |
(Increase) in
inventories |
(5) |
(61) |
- |
(Increase) in trade
& other receivables |
(373) |
(279) |
(93) |
Increase in trade
& other payables |
174 |
183 |
199 |
Share option
charge |
- |
- |
- |
Net cash used in
operating activities |
(198) |
(311) |
(157) |
|
|
|
|
Investing
activities |
|
|
|
Investment income |
7 |
5 |
8 |
Finance costs |
(5) |
- |
(2) |
Receipts on sale of
AFS investments |
53 |
- |
57 |
Payments for PPE
assets |
(2) |
- |
(2) |
Net cash from
investing activities |
53 |
5 |
61 |
|
|
|
|
Financing
activities |
|
|
|
Issue of share
capital |
- |
- |
- |
Issue costs |
- |
- |
(20) |
Net cash from
financing activities |
- |
- |
(20) |
|
|
|
|
Net (decrease) in
cash and cash equivalents |
(145) |
(306) |
(116) |
Cash and cash
equivalents at the beginning of period |
248 |
467 |
467 |
Effect of foreign
exchange on cash and cash equivalents |
69 |
(34) |
(103) |
Cash and cash
equivalents at the end of period |
172 |
127 |
248 |
Notes to the Condensed Consolidated
Interim Financial Information (unaudited)
1. General information
The condensed consolidated interim financial information for the
period ended 30 June 2016 has not
been audited or reviewed in accordance with the International
Standard on Review Engagements 2410 issued by the Auditing
Practices Board. The figures were prepared using applicable
accounting policies and practices consistent with those adopted in
the statutory accounts for the period ended 31 December 2015. The figures for the period
ended 31 December 2015 have been
extracted from these accounts, which have not been required to be
delivered to the Isle of Man Registrar of Companies, and do however
contained an unqualified audit report.
The condensed consolidated interim financial information
contained in this document does not constitute statutory accounts.
In the opinion of the directors the financial information for this
period fairly presents the financial position, result of operations
and cash flows for this period.
The Condensed Consolidated Interim Financial Information was
approved by the Board of Directors on 27
September 2016.
Statement of compliance
These condensed consolidated interim financial statements have
been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union with the
exception of International Accounting Standard (‘IAS’) 34 – Interim
Financial Reporting. Accordingly, the interim financial statements
do not include all of the information or disclosures required in
the annual financial statements and should be read in conjunction
with the Group’s 2015 annual financial statements.
2. Earnings / (loss) per
share
The calculation of the earnings/(loss) per share is based on the
profit/(loss) attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the
period.
|
6 months
to |
6 months
to |
Year |
|
30
June |
30
June |
31
December |
|
2016 |
2015 |
2015 |
|
Unaudited |
Unaudited |
Audited |
|
£’000 |
£’000 |
£’000 |
Profit/(loss)
attributable to equity holders of the Group |
48 |
(168) |
(96) |
|
|
|
|
Number of Shares |
|
000’s |
000’s |
|
|
|
|
Weighted average
number of ordinary shares |
1,381,001 |
1,381,001 |
1,381,001 |
Share options in
issue |
79,000 |
79,000 |
79,000 |
Weighted average
number of ordinary shares - diluted |
1,460,001 |
1,460,001 |
1,460,001 |
|
|
|
|
Earnings/(loss) per
share – basic |
0.003 |
(0.01) |
(0.01) |
Earnings/(loss) per
share – diluted |
0.003 |
(0.01) |
(0.01) |
3. Events after the end of the
reporting period
On 26 July 2016, the Company
changed its name from Afriag Plc to Afriag Global Plc.
On 11 August 2016, the Company
issued 100 million ordinary shares from the existing shares held in
the Company’s Employee Benefits Trust to Mr Paul de Robillard.
4. A copy of this interim financial statement is
available on the Company’s website www.afriagglobal.com.