TIDMAGTA
RNS Number : 6604Q
Agriterra Ltd
24 October 2011
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
24 October 2011
Agriterra Ltd ('Agriterra' or 'the Group')
Final Results
Agriterra Ltd, the AIM listed company focussed on the
agricultural sector in Africa, announces its results for the year
ended 31 May 2011.
OVERVIEW
-- Substantial organic growth across cattle ranching and maize
processing division, and entrance into the cocoa market following
the acquisition of Tropical Farms Limited
-- 55% increase in turnover to $13.6m (2010: $8.8m) and total
maize meal sales up 56% to 28,822 tonnes (2010: 18,496 tonnes)
-- Initial revenue generated from beef business - feedlot in
operation and first sales achieved an average of $835 per
carcass
-- Rapid growth in beef herd to 2,350 head including a 560 head
top quality Beefmaster breeding herd
-- Hydroelectric dam capable of irrigating 4,000 hectares at
Mavonde under construction and due for completion by the end of
2011
-- Construction of abattoir commenced and due for completion in
Q2 2012 - capacity of 4,000 head per month
CHAIRMAN'S STATEMENT
This has been a highly active period for the Group, marked by
both substantial organic growth across our existing beef and maize
divisions, and post year end, through product and geographic
diversification in the form of our new cocoa farm management,
buying and trading business.
At Mozbife Limitada ('Mozbife'), the cattle ranching business,
we have invested significantly during the year and continue to do
so post year end. This has translated into the growth of our total
herd, now standing at 2,350, achieved despite the temporary import
restrictions of cattle from South Africa which constrained the
development of our Beefmaster breeding herd. Our total land
holdings now stand at over 16,000 hectares, which includes the
1,000 hectare Mavonde Stud Ranch, which supports the Beefmaster
breeding herd, the 15,000 hectare Dombe ranch on which a Use of
Development of Land licence ('DUAT') was granted by the Government
of Mozambique in the year and over 700 hectares at the Vanduzi
feedlot operations.
At Mavonde, we are in the process of constructing the Mavonde
dam which will eventually facilitate the irrigation of up to 4,000
hectares of pasture. To this end we are investigating the possible
acquisition of additional neighbouring land.
Our strategy of becoming a vertically integrated beef producer
is progressing. Phase 1 of our Vanduzi feedlot project has been
completed, while the construction of the abattoir with a capacity
of 4,000 head per month continues with commissioning expected in Q2
2012. In addition to product from our own herds, throughput for the
feedlot and abattoir will be supplemented using cattle bought in
from local communities, building on the Group's experience from our
well established maize buying operation.
The abattoir is a key facet in establishing ourselves as a
"field to fork" producer in order to maximise the benefits from a
full value chain. With this in mind, we believe Mozbife has the
potential to be a high margin business capable of generating
substantial recurring revenue for the Agriterra group.
Our maize buying and milling operations at Desenvolvimento E
Comercializacao Agricola Limitada ('DECA') and Compagri Limitada
('Compagri') have performed strongly during the year with total
sales increasing by 55% from the previous year to US$13.6 million
while combined sales of meal from both facilities totalled 28,822
tonnes over the year, an increase of 56% on the previous year. The
synergies between our maize operations and our beef division are
already providing economic benefits, as bran, the by-product of the
milling processes, is in part used as a feed supplement for the
Vanduzi feedlots.
The acquisition of Sierra Leone based Tropical Farms Limited
('TFL'), post year end, is a significant new addition to our
product range. The board believes that cocoa represents an exciting
opportunity for the Group given the strengthening global demand, in
particular for sustainable and traceable cocoa. TFL, which at
present is a buying and trading operation, provides the ideal
conduit to branch out into cocoa production in West Africa. At
present, our energies are focussed on implementing new initiatives
to help increase yields for our out-growers, thereby improving our
volumes, margins and profitability in Sierra Leone. These
initiatives, which include the implementation of modern farm
management techniques and farmer incentive schemes, have proved to
be extremely successful at our maize facilities in Mozambique, and
with this in mind, the board is confident that similar results can
be achieved with cocoa production in Sierra Leone and the wider
region. The Group is also actively pursuing opportunities to
acquire plantation land to further secure the supply of sustainable
and traceable cocoa.
Financial Results
The Group is investing heavily in its cattle ranching division
and in line with this, the Group is reporting a pre-tax loss of
US$2.2m (2010: pre-tax loss of US$3.9m) on turnover of US$13.6m
(2010: US$8.8m). Cash balances at the period end remained healthy
at $8.2m (2010: $3.4m). In addition the Group had approximately
11,074 tonnes of maize in stock at the end of the period, ready to
be processed and sold.
Outlook
The development of our integrated grain and beef businesses in
Mozambique is progressing extremely well. Our initial beef sales
have been exceptionally well received locally in Mozambique where
demand can currently only be satisfied by imports. The growth in
local demand will be further enhanced by significant investment in
the resources sector. Geographically, Mozambique is also well
placed to service export markets in the near and far east where
demand for beef along with other agricultural product is expected
to grow substantially.
Using our experience in Mozambique, the board believe that cocoa
in West Africa represents a significant opportunity to develop our
product range in a sector that is expected to benefit from
increased demand with the emergence of a thriving middle class
across the developing world. The Group's strategy to establish
itself as a secure, sustainable and traceable source of supply is
well timed to meet the requirements of the major cocoa consumers
who are placing increased emphasis in this area.
Finally, on behalf of the board, I would like to thank all of
those whose dedication over the year has contributed to Agriterra's
achievements, and also to our shareholders, whose continued support
of the Group has helped us reach this transformational phase in the
Group's life.
Phil Edmonds
Chairman
21 October 2011
OPERATIONS REVIEW
Mozbife
Our beef division has enjoyed rapid growth over the year, and
this remains a key area of investment for the Group. In addition to
rapidly expanding our breeding herd, with a target of reaching
10,000 head in the medium term, we have also made significant
strides in establishing Mozbife as a "field to fork" producer,
enabling Mozbife to benefit from the downstream value of directly
supplying our meat products to the consumer.
A key focus at our 1,000 hectare Mavonde stud ranch has been the
construction of a dam, which is on schedule to be completed in
December 2011. Once finished, the dam will hold 48 billion litres
of water, making it the second largest dam in the Manica Province
of Mozambique. The dam will have the capacity to irrigate in excess
of 4,000 hectares, and in line with this, Mozbife is currently in
negotiations to acquire additional land to enlarge the Mavonde
ranch to 5,000 hectares. With full irrigation, the head to hectare
ratio at Mavonde will be able to be increased from 1.5 to 7 head
per hectare. Importantly, the dam will also provide 132kV of
hydroelectric power for the Mavonde project which will reduce costs
significantly by providing power for the irrigation pumps.
Clearing at Mavonde continues with 400 hectares now cleared and
stocked with 560 high quality Beefmaster cattle, which are prized
for their top weight gaining ability and quality of meat, in
addition to their adaptability to hot climates. A successful
breeding season has resulted in pregnancy rates continuing to
exceed 80%. A further 200 Beefmasters have also been purchased in
South Africa and are due for delivery in December 2011 in order for
our total herd to continue to grow and reach 5,000 head by the end
of 2012.
Investment at the 15,000 hectare Dombe ranch continues to be
focussed on infrastructure, with the construction of paddocks, 80km
of road and fencing well underway, as well as additional water
boreholes for irrigation during particularly dry periods. The DUAT
for the Dombe Ranch has also been received, which extends our lease
on the property for a further 50 years. Cattle are currently being
bought in from local communities, using a similar model to that
established by Agriterra's maize out-grower business, in order to
supplement the current herd which stands at 2,350 head. These
additional cattle are being bought in to rapidly build the total
herd across the two ranches, where the Group holds long leased land
capable of supporting in excess of 20,000 head.
Additional investment has been focussed on the Vanduzi feedlot
project, located near the town of Chimoio in central Mozambique.
Phase 1 of the project has been completed with the construction of
a six pen line, with each pen having capacity for 160 cattle. This
provides a rolling capacity of approximately 1,000 head every three
months. There are currently 600 head on the feedlot, made up of a
mixture of Brahmin, Beefmaster, Jersey and local cattle. An
additional six pen feedlot line is under construction, with
completion targeted for November 2011 which will double the current
rolling capacity to 2,000 head every three months. Sales of cattle
from the feedlot have commenced with volumes expected to increase
as recent purchases move through the 90 day feedlot cycle. An
average price of $835 per carcass has been achieved to date. In
addition, the neighbouring farm has been acquired by Agriterra in
order to augment our total feed cropping and pasture capability,
raising the total land suitable for planting to 700 hectares.
Construction of the abattoir at Chimoio is progressing well. The
foundations at the 73m by 29m site are finished as is the erection
of the external structure. The internal work is now underway, which
is targeting a 4,000 head per month processing rate. Mozbife is
also installing a goat processing line. Construction is expected to
be finished in May 2012 ahead of commissioning in Q2 2012.
Maize Processing - DECA and Compagri
Agriterra's maize processing and farming operations continue to
generate significant revenues for the Group, and remain key
components of our wider agricultural strategy. The year under
review has seen our DECA and Compagri facilities, located in
Chimoio in central Mozambique and Tete in northern-west Mozambique
respectively, continue to perform strongly and achieve record
breaking successes.
Record maize sales were achieved by DECA and Compagri during the
year, with total sales increasing by 55% on the previous year to
US$13.6 million (2010: US$8.8 million). Combined sales of meal from
both facilities totalled 28,822 tonnes over the period, an increase
of 56% on previous full year (2010: 18,496 tonnes). These figures
have vastly improved from last year due to the advent of milling at
Compagri, which is now performing well in the export market.
Mozambique suffered from a poor harvest during the 2010/2011
season, which resulted in higher sales albeit at lower volumes
acquired domestically. This situation led to a reduction in maize
purchased to 25,185 tonnes, however the outlook remains buoyant
with the current buying season commencing strongly with 6,000
tonnes secured before the year end and 34,000 tonnes acquired in
total to date. This provides Agriterra with a very strong position
as we look to the next ramp up in sales which we expect in
November-December 2011 due to the cyclical nature of maize
production and harvest.
I am confident that both our DECA and Compagri facilities are
well placed to continue to grow thanks to the highly recognisable
and well respected brand that we have established during our seven
years of maize operations in Mozambique, as well as a highly
efficient buying infrastructure across our regions of focus. Our
Compagri facility in particular offers a great deal of potential
growth due to the rapid increase in population density in that
region of Mozambique, as a result of the current mining boom in
Tete and its hinterland.
Tropical Farms Limited
Post year end, the Group acquired Sierra Leone based Tropical
Farms Limited ('TFL'), enabling the Group to further diversify in
terms of product and geographically. TFL has provided the Group
with a platform from which to expand into cocoa production by
making use of TFL's regional expertise and established buying
operations in West Africa. The board understands the importance of
forging long term relationships with farmers and out-growers,
implementing farm management initiatives in order to maintain a
sustainable and traceable supply of cocoa, and in time, we hope to
supplement this production through the development of Agriterra's
own cocoa plantations.
TFL has expanded from four to eleven buying centres and has a
direct buying register of approximately 2,000 farmers across Sierra
Leone. It is our intention to develop additional community buying
centres, as well as solar and batch drying and fermentation
facilities. The board expect that such investment will increase
total buying capacity as well as guarantee supplies of cocoa.
Importantly, TFL's buying model enables the origins of supplies to
be traced without the need for local agents.
TFL is in the process of acquiring land near Freetown to
construct a continuous cocoa drying, coffee processing and
warehousing facility. The warehouse will also comprise a
collateralised management warehouse facility providing security for
trade finance for TFL's cocoa. This facility could be extended to
cover other agricultural produce and be made available to third
parties in due course.
In keeping with Agriterra's beef and maize businesses, the Board
intends to transform TFL into a vertically integrated business,
utilising a 'tree to market-place' business model. As well as
organic development, the Board is currently evaluating additional
acquisition opportunities from which to expand its activities.
A key instigator of the growth strategy for our cocoa business
is Adrian Simpson, managing director of TFL. Adrian has 25 years'
international experience in the commodities and risk management
trade, including nine years at E D & F Man where he spent four
years running a large cocoa buying operation in the Cote D'Ivoire
and six years at Drum Resource Ltd, a London based company founded
by Adrian that focussed on trading and international risk
management for the commodity trade. I am confident that Adrian will
play a key role in the development of our newly formed cocoa
division as we build our presence in the sector across West
Africa.
Euan Kay
Executive Director
21 October 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
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
CONSOLIDATED INCOME STATEMENT
For the year ended 31 May 2011
Year Year
ended ended
31 May 31 May
2011 2010
Continuing Operations Note $'000 $'000
----- --------- ---------
Revenue 13,588 8,791
Increase in value of biological
assets 5 214 22
Cost of sales (10,372) (7,371)
Gross profit 3,430 1,442
Operating expenses (6,109) (5,686)
Other income 349 386
Operating loss (2,330) (3,858)
Finance income 159 106
Finance costs - (152)
Loss before taxation (2,171) (3,904)
Income tax expense 3 (168) -
Loss after tax (2,339) (3,904)
Discontinued operations
Loss for the year (89) (920)
Loss for the year attributable
to owners of the parent (2,428) (4,824)
========= =========
Loss per share
- Basic and diluted (cents) 4 (0.4c) (0.9c)
Loss per share from continuing
operations
- Basic and diluted (cents) 4 (0.4c) (0.8c)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 May 2011
Year Year
ended ended
31 May 31 May
2011 2010
$'000 $'000
-------- ----------
Loss for the year (2,428) (4,824)
Foreign exchange translation differences 3,399 (6,005)
Other comprehensive income for the
year 3,399 (6,005)
Total comprehensive income for the
year
attributable to owners of the parent
company 971 (10,829)
======== ==========
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 May
2011 2010
Note $'000 $'000
----- ---------- ----------
ASSETS
Non-current assets
Intangible assets 271 -
Property, plant and equipment 13,264 9,986
Investments - 114
Biological assets 5 631 236
Total non-current assets 14,166 10,336
---------- ----------
Current assets
Biological assets 5 157 -
Inventories 2,976 4,605
Trade and other receivables 2,039 1,019
Cash and cash equivalents 8,172 3,442
Total current assets 13,344 9,066
---------- ----------
TOTAL ASSETS 27,510 19,402
---------- ----------
LIABILITIES
Current liabilities
Trade and other payables (2,678) (2,176)
NET ASSETS 24,832 17,226
========== ==========
EQUITY
Issued capital 6 1,387 1,161
Share premium 131,593 125,184
Share based payment reserve 1,360 1,360
Translation reserve (1,782) (5,181)
Retained earnings (107,726) (105,298)
TOTAL EQUITY ATTRIBUTABLE TO
OWNERS OF THE PARENT 24,832 17,226
========== ==========
CONSOLIDATED STATEMENT Ordinary Deferred Share Share Translation Retained
OF CHANGES IN EQUITY share capital share capital premium based reserve earnings Total
As at 31 May 2011 $'000 $'000 $'000 payment $'000 $'000 $'000
reserve
$'000
--------------- --------------- --------- --------- ------------ ---------- ---------
Balances at 1 June 2009 801 238 119,349 1,281 824 (99,513) 22,980
Loss for the year - - - - - (4,824) (4,824)
Other comprehensive
income
Exchange translation
differences
on foreign operations - - - - (6,005) - (6,005)
--------------- --------------- --------- --------- ------------ ---------- ---------
Total comprehensive
income
for the year - - - - (6,005) (4,824) (10,829)
Transactions with owners
Share based payment
charge - - - 79 - - 79
Acquisition of minority - - - - - (961) (961)
Share issues 122 - 6,107 - - - 6,229
Issue costs - - (272) - - - (272)
--------------- --------------- --------- --------- ------------ ---------- ---------
Total transactions with
owners 122 - 5,835 79 - (961) 5,075
Balances at 31 May 2010 923 238 125,184 1,360 (5,181) (105,298) 17,226
Loss for the year - - - - - (2,428) (2,428)
Other comprehensive
income
Exchange translation
differences
on foreign operations - - - - 3,399 - 3,399
--------------- --------------- --------- --------- ------------ ---------- ---------
Total comprehensive
income
for the year
Transactions with
owners - - - 3,399 (2,428) 971
Share issues 226 - 6,570 - - - 6,796
Issue costs - - (161) - - - (161)
--------------- --------------- --------- --------- ------------ ---------- ---------
Total transactions with
owners 226 - 6,409 - - - 6,635
Balances at 31 May 2011 1,149 238 131,593 1,360 (1,782) (107,726) 24,832
=============== =============== ========= ========= ============ ========== =========
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 May 2011
Year ended Year ended
31 May 31 May
2011 2010
$'000 $'000
----------- -------------------
Operating activities
Loss before tax (2,171) (3,904)
Adjustments for:
- Depreciation of property, plant
and equipment 1,228 1,359
- Loss/(profit) on disposal of property,
plant and equipment 5 (20)
- Share based payment charge - 79
- Foreign exchange (355) (42)
- Net interest (income) / expense (159) 46
Operating cash flow before movements in
working capital (1,452) (2,482)
Working capital adjustments:
- Decrease / (increase) in inventory 1,973 (3,182)
- Increase in receivables (547) (523)
- Increase / (decrease) in payables 261 (506)
----------- -------------------
Cash from / (used in) operations 235 (6,693)
Finance charges - (152)
Interest received 159 106
Net cash from / (used in) continuing operating
activities 394 (6,739)
Net cash outflow from discontinued
activities (198) (783)
----------- -------------------
Net cash from / (used in) operating
activities 196 (7,522)
----------- -------------------
Taxation
Corporate tax paid (38) -
----------- -------------------
Net cash outflow from taxation (38) -
----------- -------------------
Investing activities
Purchase of intangible asset (250) -
Purchase of property, plant and
equipment (2,568) (1,346)
Proceeds on sale of property, plant
and equipment 38 135
Purchase of biological assets (255) (64)
Proceeds on sale / (purchase) of investment
in financial assets 128 (125)
----------- -------------------
Net cash used in investing in continuing
activities (2,907) (1,400)
Net cash from investing in discontinued
activities - 3
----------- -------------------
Net cash used in investing activities (2,907) (1,397)
----------- -------------------
Financing activities
Proceeds from issue of share capital 6,883 5,082
Share issue costs (161) (272)
Draw down of related party loan - 225
Repayment of related party loan - (225)
Net cash from financing activities 6,722 4,810
----------- -------------------
Net increase / (decrease) in cash and
cash equivalents 3,973 (4,109)
Cash and cash equivalents at start
of the year 3,442 8,517
Exchange rate adjustment 757 (966)
Cash and cash equivalents at end
of the year 8,172 3,442
=========== ===================
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 May 2011
1. General Information
Agriterra Limited is incorporated and domiciled in Guernsey. The
nature of the Group's operations and its principal activities are
set out in the Chairman's Statement and Operations Overview
above.
The financial information set out above for the years ended 31
May 2011 and 2010 does not constitute the Group's statutory
accounts but is derived from those accounts. Statutory accounts for
the year ended 31 May 2011 have been reported on by the Group's
auditors and contain an unqualified opinion. The results have been
prepared using accounting policies consistent with those used in
the preparation of the statutory accounts.
The reporting currency for the Group is the U.S. Dollar (USD) as
it better reflects the Group's business activities in the
agricultural sector in Africa. Full statutory financial statements
have been prepared in accordance with International Financial
Reporting Standards ("IFRS") as adopted by the European Union.
The full audit report is contained in the Company's Annual
Report, which will be available on the Company's website by 30
November 2011.
2. Critical accounting estimates and judgments
The preparation of financial statements in conformity with EU
adopted IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in
the process of applying the Group's accounting policies. The
estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below.
Impairments
Impairment reviews on non-current assets are carried out on each
cash-generating unit identified in accordance with IAS 36
"Impairment of Assets". At each reporting date, where there are
indicators of impairment, the net book value of the cash generating
unit is compared with the associated fair value.
On 6 January 2009, the shareholders approved the adoption of the
investing strategy to acquire or invest in businesses or projects
operating in the agricultural and associated civil engineering
industries in Southern Africa.
The directors decided to suspend exploration activities and
reduce expenditure to the minimum required in order to retain
exploration licenses. Consequently the directors consider that the
value of exploration and evaluation and other related assets of
$79,580,000 is fully impaired.
Biological assets
Biological assets (cattle) are measured at their fair value at
each balance sheet date. The fair value of cattle is based on the
estimated market value for cattle of a similar age and breed, less
the estimated costs to bring them to market. Changes in any
estimates could lead to recognition of significant fair value
changes in the income statement. At 31 May 2011 the value of the
breeding herd disclosed as a non-current asset was $631,000 (2010:
$236,000). The value of the herd held for slaughter disclosed as a
current asset was $157,000 (2010:$ nil).
3. Income tax expense
2011 2010
$'000 $'000
-------- --------
Loss before tax from continuing activities: (2,171) (3,904)
-------- --------
Tax at the Mozambican corporation tax
rate 32% (2010: 32%) (695) (1,249)
Tax effect of expenses that are not deductible
in determining taxable profit 21 3
Tax effect of utilisation of losses (90) -
Tax effect of losses not allowable 341 587
Tax effect of losses not recognised in
overseas subsidiaries (net of effect
of different rates) 503 659
Charge in respect of prior years 88 -
Tax expense for the year 168 -
======== ========
The tax reconciliation has been prepared using a 32% tax rate,
the corporate income tax rate in Mozambique, as this is where the
Group's principal assets of its continuing operations are
located.
4. Earnings per share
The calculation of the basic and diluted earnings per share is
based on the following data:
2011 2010
$'000 $'000
------------ ------------
Loss for the purposes of basic earnings
per share (loss for the year attributable
to equity holders of the parent) 2,428 4,824
------------ ------------
Loss for the purposes of basic earnings
per share from continuing activities 2,339 3,904
------------ ------------
Loss for the purposes of basic earnings
per share from discontinued activities 89 920
------------ ------------
Number of shares
Weighted average number of ordinary
shares for the purposes of basic and
diluted loss per share 625,894,111 515,129,499
------------ ------------
Loss per share 0.4c 0.9c
------------ ------------
Loss per share from continuing activities 0.4c 0.8c
------------ ------------
Due to the loss incurred in the year, there is no dilutive
effect of share options.
5. Biological assets
$'000
------
At 1 June 2009 207
Purchase of biological assets 64
Change in fair value 22
Foreign exchange (57)
Balance at 1 June 2010 236
Purchase of biological assets 289
Sale of biological assets (34)
Change in fair value 214
Foreign exchange 83
------
Balance at 31 May 2011 788
------
Biological assets comprise a breeding herd of cattle. Certain
livestock is held for slaughter and has been classified as a
current asset. The remainder is expected to be held for more than
one year and has been classified as a non-current asset, as
follows:
2011 2010 2011 2010
Head Head $'000 $'000
------ ----- ------ ------
Non-current asset 1,153 400 631 236
Current asset 292 - 157 -
------ ----- ------ ------
1,445 400 788 236
====== ===== ====== ======
The change in fair value has been included in cost of sales in
the income statement.
6. Share capital
Group and company
Authorised Allotted and fully
paid
Ordinary shares of 0.1p each Number Number $'000
-------------- ------------- ------
At 1 June 2009 2,345,000,000 473,821,554 801
Issue of shares - 73,950,000 122
-------------- ------------- ------
At 1 June 2010 2,345,000,000 547,771,554 923
Issue of shares - 145,483,334 226
-------------- ------------- ------
At 31 May 2011 2,345,000,000 693,254,888 1,149
-------------- ------------- ------
Deferred shares of 0.1p each
At 1 June 2009, 2010 and 31
May 2011 155,000,000 155,000,000 238
------------ ------------ ----
Total share capital
At 31 May 2011 2,500,000,000 848,254,888 1,387
============== ============ ======
At 31 May 2010 2,500,000,000 702,771,554 1,161
============== ============ ======
The Company has one class of ordinary share which carries no
right to fixed income.
The deferred shares carry no right to any dividend; no right to
receive notice, attend, speak or vote at any general meeting of the
Company; and on a return of capital on liquidation or otherwise,
the holders of the deferred shares are entitled to receive the
nominal amount paid up after the repayment of GBP1,000,000 per
ordinary share. In the event that disputes over certain oil and gas
assets are satisfactorily resolved, the deferred shares may be
converted into ordinary shares by resolution of the board.
On 31 October 2009, the Company issued 63,950,000 ordinary
shares of 0.1p each for cash at 5p per share raising gross cash
proceeds of $5m to provide funding for the development of its
agricultural activities.
On 23 December 2009 the Company issued 10,000,000 ordinary
shares of 0.1p each as consideration shares for the acquisition of
the 25% minority interest of the issued share capital of DECA,
Compagri and Mozbife.
On 16 November 2010 the Company issued 145,483,334 ordinary
shares of 0.1p each for cash at 3p per share raising gross cash
proceeds of $6.9m to provide funding for the continued development
of the Company's cattle ranching and feedlot production business in
Mozambique
7. Post balance sheet events
On 13 July 2011, the Company through its wholly owned subsidiary
West Africa Cocoa Services Limited, acquired the entire issued
share capital of Tropical Farms Limited ("TFL"), a cocoa company in
Sierra Leone.
TFL has established a high quality, sustainable and traceable
cocoa buying operation. There are four buying centres in operation
and a direct buying register of approximately 2,000 cocoa farmers.
In addition to the existing infrastructure and sourcing register,
TFL has an experienced management team who will enable the Company
to accelerate development of additional community buying centres,
solar drying and fermentation facilities.
** ENDS **
This information is provided by RNS
The company news service from the London Stock Exchange
END
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