TIDMAGTA
RNS Number : 6053B
Agriterra Ltd
22 February 2011
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
22 February 2011
Agriterra Ltd ('Agriterra' or 'the Group')
Interim Results
Agriterra Ltd, the AIM listed group focussed on the agricultural
sector in central and southern Africa, announces its results for
the six months ended 30 November 2010.
Chairman's Statement
The economic fundamentals for the agricultural sector are
extremely positive. The increasing focus on global food security
means that there are significant opportunities for the Group given
our personnel and experience. Africa offers huge development
potential and our ability to identify opportunities and build
substantial operations is proven through each of Desenvolvimento E
Comercializacao Agricola Limitada ('DECA'), Compagri Limitada
('Compagri') and Mozbife Limitada ('Mozbife'). These businesses
provide us with a solid platform to expand the Group in order to
capitalise on this rapidly growing sector and accordingly we are
actively evaluating additional opportunities in agriculture and
associated logistics businesses across the continent.
Our efforts during the period have remained centred on
consolidating our maize processing operation at our DECA facility
in Chimoio and expanding the Compagri facility in Tete, which
recommenced operations during the period and is now beginning to
contribute revenues to the Group. The expansion of our beef
ranching operations is continuing apace following a successful
calving season and development of our Vanduzi feedlot project.
Maize Processing - DECA and Compagri
Our grain processing facilities, which include the 40,000 tonne
capacity DECA facility at Chimoio, and the 12,600 tonne capacity
Compagri facility in the Tete Province of Mozambique, have achieved
notable successes during the period, with record sales made at both
operations.
We started the period with a strong maize stock pile, following
a record buying year in 2009, which enabled us to manage the
processing and sales of the product in-line with the recent
favourable pricing environment. The sale of 17,250 tonnes of maize
meal and bran, from both the DECA and Compagri facilities during
the period, resulted in record turnover for the maize businesses,
with revenue totalling US$5.2 million, more than double that of the
corresponding period in 2009. This increase in revenue, coupled
with the completion of construction and bedding down of the Tete
facility, has enabled the grain processing branch of the Agriterra
business to swing into profit at an operational level.
As buying and processing operations are ramped up, particularly
at the Compagri facility which caters for the booming mining area
of Tete and its surroundings, I believe that our maize processing
facilities will continue to provide a solid foundation and internal
cash flow for the continued expansion of the Group.
Mozbife
Beef ranching offers a material value opportunity in Africa. Our
rapidly growing ranching business in Mozambique remains an area of
significant expansion and investment for the Group, with total head
exceeding 1,100 across the 1,000ha Mavonde and 15,000ha Dombe
ranches by the end of the period.
The period under review encompassed the calving season, where we
experienced an 82% pregnancy rate and 100% survival rate of all
calves. This was a tremendous achievement for Mozbife, and
underpins the quality of our beef stock and high veterinarian
standards which we enforce across both ranches. This successful
breeding programme is critical both to the continued growth of the
herd and the improvement of animal quality as imported South
African Beefmaster stock is cross bred with native cattle to
develop a herd with excellent meat yield potential coupled with
high local disease resistance.
The Vanduzi abattoir/feedlot project is also advancing rapidly,
with the first feed pens and boundary fencing completed in the
period. Post period end saw the first delivery of animals ahead of
slaughter at the Beira abattoir, with dress out weight percentages
between 58% and 63%, which was more than 10% above management
expectations and an average sale price per animal in excess of
US$900. The attractive sale price for the animals highlights the
financial returns possible for an established beef ranching
operation in Mozambique and underpins the huge potential of
Mozbife.
Our extensive land clearing and preparation programme at Vanduzi
is also progressing encouragingly, with 170 hectares planted with
maize crop to ensure security of feedlot and a further 270 hectares
now cleared for additional planting. This, coupled with the planned
development of an abattoir by the Group, will provide Mozbife with
the foundations required to develop into one of southern Africa's
largest producers of beef. We have also recruited three highly
experienced ranching professionals, who have proven track records
in developing major beef operations, to manage the onward
development and growth of our herds and feedlot/abattoir
project.
Financial Results
For the period, the Group is reporting a pre-tax profit of
US$97,000 (H12009: loss of US$1,967,000) on turnover of
US$5,284,000 (H1 2009: US$2,480,000). Cash balances at the period
end remained healthy at $7,080,000, following a placing of
145,483,334 new ordinary shares at a price of 3 pence per placing
share, raising US$7 million before expenses. In addition the Group
had circa 29,500 tonnes of maize in stock at the end of the period,
ready to be processed and sold.
Outlook
We have a solid foundation and believe we are positioned to take
advantage of opportunities in the rapidly expanding agricultural
and logistics sector. The outlook for the maize processing
operations in the second half is positive with high current stock
levels and a ramp up in activity at Compagri, which we believe will
be underpinned by the current positive pricing environment for meal
and bran. With regards to our beef operations, with the business
progressing well, we look forward to a first revenue contribution
in H2 2011. Our objective is to build a breeding herd in excess of
10,000 with an initial target for 2012 of over 4,000 head.
Throughput in the feedlot will be augmented by bought in local
cattle, which will further contribute to revenues. On acquisitions,
as previously stated we are actively evaluating additional
opportunities in agriculture and associated logistics businesses
across the continent.
Finally, I would like to take this opportunity to thank our
shareholders for their continued support over the period, and to my
fellow board members and management teams for their unwavering
dedication to the future growth and success of the Group.
Phil Edmonds
Chairman
21 February 2011
For further information please visit www.agriterra-ltd.com or
contact:
Andrew Groves Agriterra Ltd Tel: +44 (0) 20 7408
9200
Jonathan Wright Seymour Pierce Ltd Tel: +44 (0) 20 7107
8000
David Foreman Seymour Pierce Ltd Tel: +44 (0) 20 7107
8000
Robin Henshall Matrix Corporate Capital Tel: +44 (0) 20 3206
LLP 7000
Nick Stone Matrix Corporate Capital Tel: +44 (0) 20 3206
LLP 7000
Hugo de Salis St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
Susie Geliher St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
Unaudited Consolidated Income Statement
For the six month period to 30 November 2010
Unaudited Unaudited
6 months 6 months Audited
to to year to
30 November 31 December 31 May
2010 2009 2010
Continuing Operations Note $'000 $'000 $'000
Revenue 4 5,284 2,480 8,791
Increase in value of biological
assets 63 - 22
Cost of sales (3,660) (1,965) (7,371)
------------- ------------- ------------
Gross profit 1,687 515 1,442
Operating expenses (2,248) (2,939) (5,686)
Other income 612 445 386
Operating profit /
(loss) 51 (1,979) (3,858)
Net finance income
/ (expense) 46 12 (46)
------------- ------------- ------------
Profit / (loss) before
taxation 97 (1,967) (3,904)
Income tax expense - - -
------------- ------------- ------------
Profit / (loss) for the
period from continuing
operations 97 (1,967) (3,904)
Discontinued operations
:
Loss for the period (10) (83) (920)
------------- ------------- ------------
Profit / (loss) for
the period attributable
to equity holders 87 (2,050) (4,824)
============= ============= ============
Earnings / (loss) per 5 0.02 cents (0.43 cents) (0.9 cents)
share:
Basic & diluted
Earnings / (loss) per 0.02 cents (0.43 cents) (0.8 cents)
share from continuing
operations:
Basic & diluted
Unaudited Consolidated Statement of Comprehensive Income
For the six month period to 30 November 2010
Unaudited Unaudited
6 months 6 months Audited
to to year to
30 November 31 December 31 May
2010 2009 2010
Note $'000 $'000 $'000
Profit / (loss) for
the period 87 (2,050) (4,824)
Other comprehensive income
net of tax
Foreign exchange translation
loss (1,337) (3,791) (6,005)
------------- ------------- ---------
Total comprehensive loss
for the period (1,250) (5,841) (10,829)
============= ============= =========
Comprehensive loss
attributable to equity
holders (1,250) (5,841) (10,829)
============= ============= =========
Unaudited Consolidated Balance Sheet
As at 30 November 2010
Unaudited Unaudited Audited
30 November 31 December 31 May
2010 2009 2010
Note $'000 $'000 $'000
Non current assets
Property, plant and
equipment 8,891 11,507 9,986
Investments - - 114
Biological assets 312 264 236
------------- ------------- ----------
Total non current assets 9,203 11,771 10,336
Current assets
Inventories 6,550 8,656 4,605
Trade and other receivables 2,140 1,874 1,019
Cash and cash equivalents 7,080 2,539 3,442
------------- ------------- ----------
Total current assets 15,770 13,069 9,066
Total assets 24,973 24,840 19,402
Current liabilities
Trade and other payables (2,407) (2,685) (2,176)
Net assets 22,566 22,155 17,226
============= ============= ==========
Equity
Issued capital 6 1,387 1,145 1,161
Share premium 131,548 124,259 125,184
Share based payment
reserve 1,360 1,281 1,360
Translation reserve (6,518) (2,967) (5,181)
Retained earnings (105,211) (101,563) (105,298)
------------- ------------- ----------
Total equity attributable
to equity holders of
the parent 22,566 22,155 17,226
============= ============= ==========
Consolidated Statement of Changes in Equity
Share
Ordinary Deferred based
share share Share payment Translation Retained
capital capital premium reserve reserve earnings Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000
--------- --------- -------- -------- ------------ ---------- --------
Balances at 1
June 2009 801 238 119,349 1,281 824 (99,513) 22,980
Loss for the
period - - - - - (2,050) (2,050)
Other
comprehensive
income
Exchange
translation
differences
on foreign
operations - - - - (3,791) - (3,791)
--------- --------- -------- -------- ------------ ---------- --------
Total
comprehensive
income for
the period
Transactions
with owners - - - - (3,791) (2,050) (5,841)
Share issues 106 - 4,910 - - - 5,016
--------- --------- -------- -------- ------------ ---------- --------
Total
transactions
with owners 106 - 4,910 - - - 5,016
Balances at 30
November
2009 907 238 124,259 1,281 (2,967) (101,563) 22,155
Loss for the
period - - - - - (2,774) (2,774)
Other
comprehensive
income
Exchange
translation
differences
on foreign
operations - - - - (2,214) - (2,214)
--------- --------- -------- -------- ------------ ---------- --------
Total
comprehensive
income for
the period - - - - (2,214) (2,774) (4,988)
Transactions
with owners
Share based
payment
charge - - - 79 - - 79
Acquisition of
minority - - - - - (961) (961)
Share issues 16 - 925 - - - 941
Total
transactions
with owners 16 - 925 79 - (961) 59
Balances at 31
May 2010 923 238 125,184 1,360 (5,181) (105,298) 17,226
Profit for the
period - - - - - 87 87
Other
comprehensive
income
Exchange
translation
differences
on foreign
operations - - - - (1,337) - (1,337)
--------- --------- -------- -------- ------------ ---------- --------
Total
comprehensive
income for
the period - - - - (1,337) 87 (1,250)
Transactions
with owners
Share issue 226 - 6,364 - - - 6,590
--------- --------- -------- -------- ------------ ---------- --------
Total
transactions
with owners 226 - 6,364 - - - 6,590
Balances at 30
November
2010 1,149 238 131,548 1,360 (6,518) (105,211) 22,566
--------- --------- -------- -------- ------------ ---------- --------
Unaudited Consolidated Statement of Cash Flows
Unaudited Unaudited
6 months 6 months Audited
to to year to
For the six months 30 November 31 December 31 May
to 30 November 2010 2010 2009 2010
Operating activities Note $'000 $'000 $'000
Profit / (loss) before
tax 97 (2,050) (3,904)
Adjustments for:
Depreciation 499 291 1,359
Increase in value of biological
assets (63) - (22)
Profit on disposal
of assets (3) - (20)
Movements in exchange
rates (101) (834) (42)
Share based payment - - 79
Net interest (income)/expense (46) (12) 46
------------- ------------- ---------
Operating cash flow
before movements in
working capital 383 (2,605) (2,504)
Working capital adjustments:
- Increase in inventory (2,205) (6,937) (3,182)
- Increase in receivables (4) (393) (523)
- Increase / (decrease)
in payables 21 67 (506)
------------- ------------- ---------
Cash used in operations (1,805) (9,868) (6,715)
Net interest received
/ (paid) 46 12 (46)
Net cash used in continuing
operating activities (1,759) (9,856) (6,761)
Net cash used in discontinued
operating activities (520) (425) (783))
------------- ------------- ---------
Net cash outflow from operating
activities (2,279) (10,281) (7,544)
------------- ------------- ---------
Investing activities
Purchase of property, plant
and equipment (196) (532) (1,346)
Proceeds of sale of
property, plant and
equipment - - 135
Purchase of biological
assets - (57) (42)
Purchase / (sale) of
financial assets 125 - (125)
Net cash used in continuing
investing activities (71) (589) (1,378)
Net cash from discontinued
investing activities 100 - 3
------------- ------------- ---------
Net cash from / (used) in
investing activities 29 (589) (1,375)
------------- ------------- ---------
Financing activities
Proceeds from issue of share
capital 6,031 5,016 4,810
Net cash flow from financing
activities 6,031 5,016 4,810
------------- ------------- ---------
Net increase / (decrease)
in cash and cash equivalents 3,781 (5,484) (4,109)
Cash and cash equivalents
at start of the year 3,442 8,517 8,517
Effect of foreign exchange
rates (143) (124) (966)
------------- ------------- ---------
Cash and cash equivalents
at end of the period 7,080 2,539 3,442
============= ============= =========
Notes to the Unaudited Interim Group Financial Statements
1. General information
Agriterra Limited ('Agriterra' or 'the Company') and its
subsidiaries (together the 'Group') is focussed on the Agricultural
sector in Africa. Agriterra is a public limited company
incorporated and domiciled in the Guernsey. The address of its
registered office is Richmond House, St Julians Avenue, St Peter
Port, Guernsey GY1 1GZ
The Company is listed on the AIM Market of London Stock Exchange
plc.
The unaudited interim consolidated financial statements for the
six months ended 30 November 2010 were approved for issue by the
board on 18 February 2010.
The figures for the six months ended 30 November 2010 and the
six months ended 31 December 2009 are unaudited and do not
constitute full accounts. The comparative figures for the year
ended 31 May 2010 are extracts from the annual report and do not
constitute statutory accounts.
The unaudited interim consolidated financial statements have
been prepared in US Dollars as this is the currency of the primary
economic environment in which the Group operates.
2. Basis of preparation
The basis of preparation and accounting policies set out in the
Annual Report and Accounts for the period ended 31 May 2010 have
been applied in the preparation of these interim condensed
consolidated financial statements. These are in accordance with the
recognition and measurement criteria of International Financial
Reporting Standards (IFRSs) as adopted by the European Union (EU)
and with those of the Standing Interpretations issued by the
International Financial Reporting Interpretations Committee (IFRIC)
of the International Accounting Standards Board (IASB). References
to 'IFRS' hereafter should be construed as references to IFRSs as
adopted by the EU
3. Accounting policies
The accounting policies and methods of calculation adopted are
consistent with those of the financial statements for the period
ended 31 May 2010.
4. Segment information
The directors consider that the Group's activities comprise one
business segment, agriculture and other unallocated expenditure in
one geographical segment, Africa.
Continuing activities
6 months ending 30 November
2010 Agriculture Other Total
$'000 $'000 $'000
Revenue 5,284 - 5,284
------------ ------ ------
Operating profit 213 (162) 51
Interest income 46 - 46
------------ ------ ------
Profit / (loss) before tax 259 (162) 97
Income tax -
------
Profit for the period from
continuing activities 97
======
Continuing activities
6 months ending 30 November
2009 Agriculture Other Total
$'000 $'000 $'000
Revenue 2,480 - 2,480
------------ -------- --------
Operating loss (978) (1,001) (1,979)
Interest income 9 3 12
------------ -------- --------
Loss before tax (969) (998) (1,967)
Income tax -
--------
Loss for the period from
continuing activities (1,967)
========
Continuing activities
Period ending 31 May 2010 Agriculture Other Total
$'000 $'000 $'000
Revenue 8,791 - 8,791
------------ -------- ---------
Operating loss (2,170) (1,688) (3,858)
Interest income / (expense) 4 (50) (46)
------------ -------- ---------
Loss before tax (2,166) (1,738) (3,904)
Income tax -
---------
Loss for the period from
continuing activities (3,904))
=========
5. Earnings per share
The calculation of basic and diluted earnings per share is based
on the following data:
Unaudited Unaudited
Unaudited 6 months 11 months
6 months to to to
30 November 31 December 31 May
2010 2009 2010
$'000 $'000 $'000
Profit / (loss) the purpose of
calculating basic earnings per
share (profit / (loss)
attributable to equity
holders) 87 (2,050) (3,690)
--------------- ------------- ------------
Profit / (loss) for the
purpose of calculating basic
earnings per share from
continuing activities 97 (1,967) (4,824)
--------------- ------------- ------------
Number of shares
Weighted average number
of ordinary shares for the
purposes of calculating
basic and diluted loss per
share 548,901,427 479,077,718 515,129,499
--------------- ------------- ------------
Basic and diluted loss per
share (cents) 0.02 (0.43) (0.94)
Loss per share from continuing
activities (cents) 0.02 (0.41) (0.76)
6. Share Capital
Ordinary shares of 0.1p each
Authorised Allotted and fully paid
Number Number $'000
At 1 July 2009 845,000,000 473,821,554 801
Issue of shares - 63,950,000 106
-------------- ---------------- --------
At 30 November 2009 845,000,000 537,771,554 907
Issue of shares - 10,000,000 16
-------------- ---------------- --------
At 31 May 2010 845,000,000 547,771,554 923
Issue of shares - 145,483,334 226
-------------- ---------------- --------
At 30 November 2010 845,000,000 693,254,888 1,149
-------------- ---------------- --------
Deferred shares of 0.1p each
Authorised Allotted and fully paid
Number Number $'000
At period ends 155,000,000 155,000,000 238
-------------- ---------------- --------
Total share capital
At 30 November 2009 1,000,000,000 692,771,554 1,145
-------------- ---------------- --------
At 31 May 2010 1,000,000,000 702,771,554 1,161
-------------- ---------------- --------
At 30 November 2010 1,000,000,000 848,254,888 1,387
-------------- ---------------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PGUCUPUPGGRG
Agriterra Ld (LSE:AGTA)
Historical Stock Chart
From May 2024 to Jun 2024
Agriterra Ld (LSE:AGTA)
Historical Stock Chart
From Jun 2023 to Jun 2024
