TIDMAGTA
RNS Number : 8443Y
Agriterra Ltd
28 February 2013
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
28 February 2013
Agriterra Ltd ('Agriterra' or 'the Group')
Interim Results
Agriterra Ltd, the AIM listed pan-African agricultural company,
announces its results for the six months ended 30 November
2012.
Highlights
-- Strengthened position as debt free vertically integrated
pan-African agricultural company with three established revenue
streams
-- US$28 million received from sale of legacy oil asset, plus
additional US$10 million on commercial discovery
-- Strong progress made across beef, cocoa and maize divisions as investment phase continues
-- Net asset value increased to US$64.5 million
-- Additional ranching land acquired in Mozambique to meet
target herd carrying capacity of 10,000 head by 2015
-- Feedlot expanded, abattoir commissioned and retail units
opened, providing fully integrated beef operation
-- Previously producing 1,208 hectare coffee and cocoa
plantation acquired in Sierra Leone - 250,000 cocoa seedlings being
cultivated in modern nursery
-- Record volumes in grain operations
Andrew Groves, Agriterra Chief Executive said, "We are
succeeding in our strategy to build a vertically integrated
pan-African agricultural business, investing in our revenue
generating divisions and infrastructure to ensure scalability and a
foundation for rapid growth in the future. Our beef business
margins going forward will rapidly widen as we roll out our
distribution hub and retail units, maximising the potential of our
newly established integrated beef operation. Furthermore, with a
solid foundation in place for long term growth at our cocoa
operations in Sierra Leone, and record milling at our grain
facilities in Mozambique, Agriterra looks set for strong and
sustainable growth. With a net asset value of US$64.5 million and a
strong cash position, I am confident that we have all of the
components to build a significant debt free agricultural
business."
CHAIRMAN'S STATEMENT
We remain centred on consolidating and expanding our position as
a leading pan-African agricultural company, building on our three
primary revenue streams, beef, grain and cocoa. We continue to
invest in each of our divisions to ensure business scalability,
whilst simultaneously diversifying our operations to bolster
growth, productivity and revenues, and maximise margins through a
vertically integrated approach. Accordingly, I am confident that
with a solid foundation, strong balance sheet, focussed strategy
and proven technical team we are well positioned to build a highly
profitable and sustainable future.
The Group is at the investment phase of its development and
consequently our focus is on expansion, a strategy that has been
heavily re-enforced by the US$28 million cash injection (post tax)
from Marathon Oil Corporation ('Marathon Oil') in January 2013
following the sale of our 20% legacy interest in the South Omo
Block ('the Block') in Ethiopia. This capital injection has
dramatically strengthened our balance sheet on a non dilutive
basis, negating the need for any equity financing. The cash will
fund the implementation of our rapid development, focussed
primarily on Mozambique and Sierra Leone. The Company expects a
rebate on the 30% withholding tax deducted to date upon agreement
of tax returns with the Ethiopian Revenues and Customs Authority. A
further US$10 million is payable on Marathon Oil's participation in
a commercial discovery in the Block.
Mozbife, our beef operation in Mozambique, has made significant
progress in its strategy of becoming a vertically integrated beef
provider, which we are confident will enable us to significantly
increase operating margin. We have completed the construction of
our abattoir in Chimoio and opened two retail units in Chimoio and
Tete, enabling Mozbife to raise, slaughter, butcher and sell beef.
Importantly, the abattoir is supplied with cattle from our Vanduzi
Feedlot, which is in turn part supplied by our Mavonde and Dombe
ranches, thus ensuring a vertically integrated offering. In line
with our expansion efforts, we are increasing herd sizes at our
Mavonde and Dombe ranches as well as augmenting our cattle buying
infrastructure from the local communities.
In order to maximise the value potential of our fully integrated
Mozbife framework, we plan to continue with the rapid development
of our beef operations. We are intending to open a distribution
centre in Maputo to help service our planned countrywide retail
units, as well as hotels, restaurants and wholesalers in the
region. We hope to have at least two retail units operational in
the capital by the end of the calendar year, in addition to a
further unit at a site already identified by us in Beira, an area
where we anticipate a significant demand for beef. The booming
mining town of Tete, where we already have one unit, is an area
where we are keen to increase our exposure, and in line with this
we anticipate the opening of an additional unit here in 2013.
In tandem with our Mozbife development efforts we are investing
significantly in our cocoa division, Tropical Farms Limited
('TFL'), in order to expand its trading operations in Sierra Leone.
Although the harvest this year was poor and the prices achieved
internationally were soft, we have a positive long-term view of the
cocoa market, which is underlined by our acquisition of a
previously producing 1,208 hectare coffee and cocoa plantation,
originally owned and operated by Beresford prior to the civil war.
A nursery with 250,000 seedlings has already been built and we are
in the process of clearing land for planting our first 200
hectares. The Group intends to plant an additional 500 hectares
each year to establish the largest in-country plantation. We
believe the brand awareness created from this plantation will allow
us to consolidate our position as a leading cocoa trader in Sierra
Leone. To prepare for this we are constructing a new enlarged
warehouse and trading centre near Kenema.
In addition to the revenues generated from our expanding cocoa
operations, we are actively evaluating the potential of producing
vegetable cash crops at our plantation in Sierra Leone. This would
help to further diversify our revenue stream and create early cash
flow for the Group. The market in Sierra Leone is driven by local
demand and the increasing presence of international companies. The
Group plans to target this growing consumer market, competing
against the current import of vegetables. We have a skilled and
experienced team in place to implement the vegetable project;
having previously established other successful vegetable farms in
Mozambique.
Our third key revenue stream comes from our maize operations in
Mozambique, where I am pleased to report that revenues have
improved significantly after the previous period's reduced sales,
which were impacted by a strong harvest in 2011 limiting demand for
our maize meal product. We anticipate strong demand continuing
throughout the rest of this financial year for maize meal. The bran
by-product of the milling operation forms an important constituent
of feed in the Vanduzi Feedlot operation, further highlighting the
integrated relationship between our Mozambican operations.
Financial Results
We remain at the investment stage of our genesis and as such,
are focussed on establishing a solid structure and foundation for
growth. For the period, as a result of the disposal of the legacy
oil asset, the Group is reporting a profit attributable to
shareholders of US$25.2 million (2011: loss of US$2.8 million).
Turnover increased by 116% to US$11.5 million (2011: US$5.3
million) and the pre-tax loss on continuing operations was US$4.2
million (2011: US$3.5 million). At the period end cash balances
were US$3.2 million (2011: US$1.0 million). The US$28 million
proceeds from the sale of our remaining interest in the oil and gas
asset in Ethiopia through Marathon Ethiopia Limited B.V. on 3
October 2012 were received on 31 January 2013.
Outlook
Your Board is focussed on headline growth and margins of the
Group. To reiterate, we are currently in the investment stage of
our development and as a result focussed on establishing a strong
foundation for scalability. Our investment programme is aimed at
creating a vertically integrated agriculture business which when
mature, will generate significant revenue and profits. Our strong
cash position will allow us to fund our growth strategy without
dilution which I believe marks us out amongst our peers. With the
world's expanding population and evolving dietary needs, the rising
African demand for meat and the long term pricing fundamentals for
most commodities, Agriterra, with its multiple revenue streams, is
well positioned for future growth.
Phil Edmonds
Chairman
27 February 2013
OPERATIONS REVIEW
Agriterra currently has three operational agricultural
divisions:
-- Mozbife Limitada ('Mozbife') which conducts cattle ranching,
feedlot and abattoir operations, and retail units
-- Tropical Farms Limited ('TFL') which manages the Group's cocoa trading and farming activities
-- Desenvolvimento E Comercialização Agricola Limitada ('DECA')
and Compagri Limitada ('Compagri') which operate maize farming and
processing businesses
Beef Operations (Mozambique)
Agriterra's beef operations in Mozambique continue to expand;
Mozbife has a total herd in excess of 5,450 head, which is set to
increase as the Group continues to ramp up operations, targeting a
total herd of 10,000 head by 2015.
The Group's strategy is to become a vertically integrated beef
producer. Agriterra rear and breed the beef cattle at the Mavonde
and Dombe ranches, fatten at the Vanduzi feedlot, and slaughter and
butcher at the Chimoio Abattoir, which in turn supplies the newly
opened retail units in Chimoio and Tete. This integrated business
approach enables the Group to maximise revenues and margins from
the entire value chain.
The Mavonde Stud Ranch
Agriterra remains focussed on expanding operations at the 2,350
hectare Mavonde Stud Ranch in Central Mozambique. The breeding herd
currently stands at 900 head, and this is set to expand
significantly with a target of 2,500 head by the end of 2013.
In line with these expansion activities, Agriterra purchased a
1,000 hectare farm, which adjoins the original ranch, in January
2013. Land clearing is underway to allow for the head holding
capacity to be increased by 100% at the ranch. Furthermore, the 48
billion litre dam, which was completed in May 2012, is now full,
with capacity to irrigate the ranch for four years without rain,
and support head to hectare growth. With full irrigation, the head
to hectare ratio at Mavonde will be able to be increased from 1.5
to 7 head per hectare. 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.
The breeding herd continues to achieve pregnancy rates of over
80%, and the herd is to be further supplemented with additional
Beefmasters already purchased from South Africa.
The Dombe Ranch
The 15,000 hectare Dombe ranch located in Central Mozambique
continues to perform strongly for the Group. Agriterra remains
focussed on expanding the ranch by investing in the ranch's
infrastructure, particularly through the construction of paddocks,
staff housing, roads and fencing, in addition to water boreholes
for irrigation during particularly dry periods.
To supplement the current breeding herd, native cattle, such as
Brahman, are being bought in from local communities. In addition to
this buying programme, which will help increase the Group's total
herd size, the cross-breeding of Beefmaster and native breeds
creates a bloodline with good meat yields and high disease
resistance.
The Vanduzi Feedlot
In line with Agriterra's strategy to become a vertically
integrated beef producer, Agriterra has focussed on developing the
Vanduzi Feedlot, located near to Chimoio.
The Vanduzi Feedlot has a 20 pen line with a potential rolling
capacity of approximately 3,000 head every 90 days. Animals are
sourced from the Agriterra's Mavonde and Dombe ranches, and also
from the local community, helping to ensure a strong supply of
animals, which can then be fattened at the feedlot to generate
revenues for the Group. Animals will typically weigh between 500kg
and 700kg following their time in the feedlot, typically three
months, achieving slaughter dress out weight percentages of between
51% and 56%. The carcass will typically fetch in excess of US$1,150
and sales have to date reached over 240 carcasses per month.
In conjunction with the feeding pens, Vanduzi has 1,050 hectares
of land for pasture and production of feed. This helps to keep feed
costs down and maintains an integrated business. Furthermore, the
Vanduzi Feedlot works dynamically with other companies in the
Group, such as using bran, the by-product from the nearby DECA
maize processing facility, as a feed supplement for the cattle.
The Chimoio Abattoir and Retail Units
In October 2012 the Group completed the construction of its
4,000 head per month capacity abattoir, which commenced operations
in December 2012. This represented a significant step in the
Group's efforts to establish a "field to fork" value chain, as the
abattoir is supplied with animals for slaughtering from the Group's
Vanduzi Feedlot, in addition to other animals bought from the local
community.
Production slaughter rates are currently operating at 240 head
per month, and the Group remains focussed on increasing this to
4,000 head, to fully utilise the abattoir's capacity. Significant
value can be generated from the abattoir and retail units, where a
standard 600kg steer can generate approximately US$1,600. Although
margins are generally less favourable for locally sourced animals
in comparison to the prime Mozbife reared animals, the Group is
able to ensure the financial success of the business by recouping
abattoir running costs from the "5(th) quarter": the skin, offal,
hooves and head.
The abattoir is the largest facility of its kind in Mozambique,
and is capable of helping to reduce Mozambique's dependence on meat
imports, thus creating an opportunity for the Group to capitalise
on a strong domestic market. Furthermore, the abattoir is also
Halal certified, meaning Agriterra is able to export beef to
markets in the Middle East.
To maximise the sale price of meat sourced from the abattoir,
and to help satisfy the Group's strategy to become a vertically
integrated beef producer, Agriterra established two retail units in
Chimoio and Tete in December 2012 and February 2013 respectively.
Initial trading at the retail units has been strong, with sales of
over US$1,500 per day being generated. The Group intends to roll
out a further four retail units in 2013.
Cocoa Trading & Production (Sierra Leone)
TFL operates a successful cocoa buying division comprising three
main hub stores and 41 satellite stores, with a direct buying
register of more than 3,500 farmers across Sierra Leone. Despite
greater operating losses because of TFL's investment in expanding
operations, the Group reports improved revenues of US$1.7 million
(2011: US$1.4 million) for the past period. TFL intends to further
expand the buying division in order to increase the total buying
capacity, guarantee cocoa supplies, and bolster sales for the
Group.
To complement the Group's cocoa buying operations, and to help
develop the business to generate increased revenues, TFL has moved
into a second phase of development, progressing from a successful
cocoa trading business into a profitable cocoa trader and producer.
In February 2013 TFL completed the acquisition of a 50 year lease,
with a 21 year extension option, over a previously producing cocoa
and coffee plantation covering 1,208 hectares ('the Plantation').
Work is underway at the Plantation which is located 40km from
Kenema in south-east Sierra Leone, to rehabilitate and redevelop
the land in order to recommence the production of cocoa, coffee and
additional cash crops. The Group has now cleared 50 hectares of the
200 hectares required for the initial cocoa planting season, and
has planted approximately 250,000 cocoa seedlings, sourced
internally from TFL's trading business, to plant the area. The
seedlings, which are currently housed in a modern irrigated nursery
covering 1.7 hectares, will be cultivated over the next 4-5 months
ahead of planting in Q2 2013.
TFL intends to use this modular planting system to cultivate and
plant up to 500 hectares every year. Each hectare of land can
support up to 1,100 trees, which can yield up to 2.5 tonnes of
cocoa per annum. TFL is initially targeting production of 1,200kg
per hectare with revenues from cocoa harvesting expected to
commence within the next 18 months, ahead of full commercial
production from the trees during their fourth to fifth years.
An additional 546 hectares, located contiguously to the north of
the Plantation was also purchased by TFL in February 2013, on the
same terms as the new Plantation. Furthermore, the Group is in the
process of negotiating to secure a further 1,200 hectares,
contiguously to the north of the existing Plantation, and 800
hectares to the south.
Grain Processing & Farming (Mozambique)
Agriterra's maize operations are focussed on the 35,000 tonne
capacity DECA facility in Chimoio in central Mozambique, and the
15,000 tonne capacity Compagri facility in Tete, in north-west
Mozambique.
The Group has built a maize buying and processing business,
focussed on purchasing maize from local out-growers through a
network of buying stations, which is then processed and stored
before being sold to the retail market. The Group purchases maize
directly from thousands of local smallholder farmers through a
specialised, proprietary, buying system, where Agriterra provides
and installs the necessary infrastructure at specific buying
points, thereby supporting economic activity in the relevant rural
areas.
Having purchased the grain, it is transported back to
purpose-built storage and processing facilities where it is dried,
fumigated, prepared and processed into maize meal, a key staple
food in the region and country as a whole.
Maize and milling operations at Compagri have been strong during
the past period, with the facility operating near full capacity and
generating improved revenues of US$275,000 per month. Similarly,
milling operations at the larger DECA facility have been running at
full capacity since July 2012, producing an average monthly sales
figure of US$1.3 million to date. These revenues mark a strong
improvement for the Group, which had previously reported reduced
sales due to a strong harvest in 2011 reducing demand for the maize
meal product (see Final Results, 12 November 2012). Nonetheless,
the Group successfully weathered these difficulties and has since
generated record monthly sales, highlighting the strength of the
business.
Fruit & Nut Production (Mozambique)
Agriterra has further diversified its product offering and
revenue stream through the acquisition of a 2,500 hectare farm with
a producing banana plantation, macadamia orchard and land capacity
for cattle in January 2013. The farm is located approximately 25km
north of the Group's Mavonde Stud Ranch, and has permanent
irrigation potential from the bordering Nyadzonya River.
The Group is focussed on expanding these to maximise revenue
generation. The 20 hectare banana plantation currently produces
initial weekly yields of approximately 7 tonnes, and the Board
plans to significantly ramp up production with the development of
the plantation. Commercial production of the macadamia orchard is a
slightly longer term focus, with fruition expected in January
2015.
Palm Oil Operations (Sierra Leone)
As shareholders will be aware, the Group also controls a lease
of approximately 45,000 hectares of brownfield agricultural land
suitable for palm oil production in the Pujehun District in the
Southern Province in Sierra Leone. The Board will evaluate
potential work programmes to develop this landholding over the
coming months.
For further information please visit www.agriterra-ltd.com or
contact:
Andrew Groves Agriterra Ltd Tel: +44 (0) 20 7408
9200
David Foreman Seymour Pierce Tel: +44 (0) 20 7107
8000
Rick Thompson Seymour Pierce Tel: +44 (0) 20 7107
8000
Andy Cuthill MC Peat & Co LLP Tel: +44 (0) 20 7104
2332
Susie Geliher St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
Unaudited Interim Group Financial Statements
Unaudited Consolidated Income Statement
For the six month period to 30 November 2012
Unaudited Unaudited Audited
6 months 6 months year to
to to 31 May
30 30 November 2012
November 2011
2012
Continuing Operations Note $'000 $'000 $'000
Revenue 4 11,486 5,288 13,826
Cost of sales (9,901) (5,080) (11,913)
------------- ------------- -------------
Gross profit 1,585 208 1,913
Increase in value of biological
assets 77 228 400
Operating expenses (5,707) (3,577) (8,851)
Other income / (expense) 125 (254) (271)
Share of profit from associate - - 9
Operating (loss)
/ profit (3,920) (3,395) (6,800)
Net finance (expense)/ income (231) (82) (116)
------------- ------------- -------------
(Loss) / profit before taxation (4,151) (3,477) (6,916)
Income tax expense (42) - (26)
------------- ------------- -------------
(Loss) / profit for the period
from continuing operations (4,193) (3,477) (6,942)
Discontinued operations:
Profit for the period 5 29,364 726 721
------------- ------------- -------------
Profit / (loss) for the period
attributable to equity holders
of the parent 25,171 (2,751) (6,221)
============= ============= =============
Earnings / (loss) per 6 2.4 cents (0.4 cents) (0.7 cents)
share:
Basic & diluted
Loss per share from continuing (0.4 cents) (0.5 cents) (0.8 cents)
operations:
Basic & diluted
Unaudited Consolidated Statement of Comprehensive Income
For the six month period to 30 November 2012
Unaudited Unaudited Audited
6 months 6 months year to
to to 31 May
30 November 30 November 2012
2012 2011
$'000 $'000 $'000
Profit / (loss) for
the period 25,171 (2,751) (6,221)
Other comprehensive income
net of tax
Foreign exchange translation
differences (2,129) 2,962 2,078
------------- ------------- ---------
Other comprehensive income
for the period (2,129) 2,962 2,078
------------- ------------- ---------
Total comprehensive profit
/ (loss) attributable to equity
holders 23,042 211 (4,143)
============= ============= =========
Unaudited Consolidated Balance Sheet
As at 30 November 2012
Unaudited Unaudited Audited
30 November 30 November 31 May
2012 2011 2012
Note $'000 $'000 $'000
Non current assets
Intangible assets 966 964 963
Property, plant and equipment 27,381 17,282 26,243
Investment in associates 9 - 9
Biological assets 1,491 988 1,642
------------- ------------- ----------
Total non current
assets 29,847 19,234 28,857
Current assets
Biological assets 963 456 1,018
Inventories 5,234 7,578 6,701
Trade and other receivables
Cash and cash equivalents 45,350 2,247 3,628
3,189 990 3,553
------------- ------------- ----------
Total current assets 54,736 11,271 14,900
Total assets 84,583 30,505 43,757
Current liabilities
Bank loan 7 (1,853) (1,551) -
Trade and other
payables (18,269) (3,911) (2,361)
------------- ------------- ----------
Total current liabilities (20,122) (5,462) (2,361)
------------- ------------- ----------
Net assets 64,461 25,043 41,396
============= ============= ==========
Equity
Issued capital 8 1,957 1,387 1,957
Share premium 148,530 131,593 148,530
Shares to be issued 2,940 - 2,940
Share based payment reserve 1,643 1,360 1,620
Translation reserve (1,833) 1,180 296
Retained earnings (88,776) (110,477) (113,947)
------------- ------------- ----------
Total equity attributable
to equity holders of the parent 64,461 25,043 41,396
============= ============= ==========
Consolidated Statement of Changes in Equity
Attributable to equity holders of the parent
company
Ordinary Deferred Share Shares Share Translation Retained Total
share share premium To be based reserve earnings $'000
capital capital $'000 Issued payment $'000 $'000
$'000 $'000 $'000 reserve
$'000
--------- --------- --------- ------- -------- ------------- ---------- -----------------
Balances at 1 June 2011 1,149 238 131,593 - 1,360 (1,782) (107,726) 24,832
Loss for the period - - - - - - (2,751) (2,751)
Other comprehensive income
Exchange translation
differences
on foreign operations - - - - - 2,962 - 2,962
--------- --------- --------- ------- -------- ------------- ---------- -----------------
Total comprehensive income
for
the period - - - - - 2,962 (2,751) (211)
Balances at 30 November
2011 1,149 238 131,593 - 1,360 1,180 (110,477) 25,043
Loss for the period - - - - - - (3,470) (3,470)
Other comprehensive income
Exchange translation
differences
on foreign operations - - - - - (884) - (884)
--------- --------- --------- ------- -------- ------------- ---------- -----------------
Total comprehensive income
for
the period - - - - - (884) (3,470) (4,354)
Transactions with owners
Share issues 570 - 17,707 - - - - 18,277
Shares to be issued - - - 2,940 - - - 2,940
Issue costs - - (770) - 160 - - (610)
Share based payment charge - - - - 100 - - 100
Total transactions with
owners 570 - 16,937 2,940 260 - - 20,707
Balances at 31 May 2012 1,719 238 148,530 2,940 1,620 296 (113,947) 41,396
Profit for the period - - - - - - 25,171 25,171
Other comprehensive income
Exchange translation
differences
on foreign operations - - - - - (2,129) - (2,129)
--------- --------- --------- ------- -------- ------------- ---------- -----------------
Total comprehensive income
for
the period - - - - - (2,129) 25,171 23,042
Transactions with owners
Share based payment charge - - - - 23 - - 23
--------- --------- --------- ------- -------- ------------- ---------- -----------------
Total transactions with
owners - - - - 23 - - 23
Balances at 30 November
2012 1,719 238 148,530 2,940 1,643 (1,833) (88,776) 64,461
========= ========= ========= ======= ======== ============= ========== =================
Unaudited Consolidated Statement of Cash Flows
For the six months Unaudited Unaudited Audited
to 30 November 2012 6 months to 6 months year to
30 November to 31 May
2012 30 November 2012
2011
Operating activities Note $'000 $'000 $'000
Loss before tax (4,151) (3,477) (6,916)
Adjustments for:
Depreciation 1,101 947 1,878
Profit on disposal of assets - 12
Share based payment charge 23 100
Foreign exchange 181 53 149
Increase in biological assets (77) (228) (400)
Net interest expense 231 82 116
------------- ------------- ---------
Operating cash flow before
movements in working capital (2,692) (2,623) (5,061)
Working capital adjustments:
- Decrease / (increase)
in inventory 1,104 (4,196) (3,505)
- Increase in receivables (1,860) (50) (1,545)
- Increase / (decrease)
in payables 5,430 771 (690)
------------- ------------- ---------
Cash used in operations 1,982 (6,098) (10,801)
Net interest paid (231) (82) (116)
Net cash used in continuing
operating activities 1,751 (6,180) (10,917)
Net cash (used in) / from
discontinued operating activities (56) 726 721
------------- ------------- ---------
Net cash outflow from operating
activities 1,695 (5,454) (10,196)
------------- ------------- ---------
Taxation
Corporation tax
paid (12) - (60)
Net cash outflow from taxation (12) - (60)
Investing activities
Purchase of subsidiary net
of debt acquired - (530) (283)
Purchase of property, plant
and equipment (3,559) (2,872) (7,575)
Proceeds of sale of property,
plant and equipment - 51 96
Purchase of biological assets (203) (332) (1,428)
Net cash used in investing
activities (3,762) (3,683) (9,190)
-------------
Financing activities
Proceeds from issue of share
capital - - 15,000
Share issue costs - - (610)
Drawdown of bank loan 1,769 1,551 123
------------- ------------- ---------
Net cash flow from financing
activities 1,769 1,551 14,513
------------- ------------- ---------
Net increase / (decrease)
in cash and cash equivalents (310) (7,586) (4,933)
Cash and cash equivalents
at start of the year 3,553 8,172 8,172
Effect of foreign exchange
rates (54) 404 314
------------- ------------- ---------
Cash and cash equivalents
at end of the period 3,189 990 3,553
============= ============= =========
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 2012 were approved for issue by the
board on 26 February 2013.
The figures for the six months ended 30 November 2012 and the
six months ended 30 November 2011 are unaudited and do not
constitute full accounts. The comparative figures for the year
ended 31 May 2012 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 2012 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 2012.
4. Segment information
The directors consider that the Group's activities comprise
three business segments, grain, beef and cocoa and other
unallocated expenditure in one geographical segment, Africa.
6 months ending Continuing activities
30 November 2012 Grain Beef Cocoa Unallocated Total
$'000 $'000 $'000 $'000 $'000
Revenue 9,045 776 1,665 - 11,486
---------- ------------- --------- ------------ ----------
Operating loss (229) (1,469) (799) (1,423) (3,920)
Interest expense (156) - - (75) (231)
---------- ------------- --------- ------------ ----------
Loss before tax (385) (1,469) (799) (1,498) (4,151)
Income tax (42)
----------
Loss for the period from continuing
activities (4,193)
==========
6 months ending Continuing activities
30 November 2011 Grain Beef Cocoa Unallocated Total
$'000 $'000 $'000 $'000 $'000
Revenue 3,591 298 1,399 - 5,288
---------- ------------- --------- ------------ ----------
Operating loss (1,225) (919) (9) (1,242) (3,395)
Interest expense (82) - - - (82)
---------- ------------- --------- ------------ ----------
Loss before tax (1,307) (919) (9) (1,242) (3,477)
Income tax -
----------
Loss for the period from continuing
activities (3,477)
==========
Continuing activities
Year ending 31 May
2012 Grain Beef Cocoa Unallocated Total
$'000 $'000 $'000 $'000 $'000
Revenue 9,681 895 3,250 - 13,826
---------- ------------- --------- ------------ ----------
Operating loss (1,203) (2,310) (578) (2,709) (6,800)
Interest income (138) - - 22 (116)
---------- ------------- --------- ------------ ----------
Loss before tax (1,341) (2,310) (578) (2,687) (6,916)
Income tax (26)
----------
Loss for the period from continuing
activities (6,942)
==========
5. Discontinued operations
Legacy oil and gas assets are classified as discontinued operations
and the trading results are included in the income statement
as a single line below the loss after taxation from continuing
operations. On 3 October 2012, the Company announced that it
had entered into an agreement to sell its remaining interest
in its oil and gas asset in Ethiopia to Marathon Ethiopia Limited
BV.
Unaudited Unaudited Unaudited
6 months 6 months 12 months
to to to
30 November 30 November 31 May
2012 2011 2012
$'000 $'000 $'000
Sale of legacy oil assets 40,000 - -
Costs of disposal (436) - -
Other operating expenses - - (5)
Other income - 726 726
--------------- ---------------- ---------------
Profit before taxation 39,564 726 721
Taxation (10,200) - -
--------------- ---------------- ---------------
Profit after taxation 29,364 726 721
=============== ================ ===============
Cash flows from discontinued operations included in the consolidated
statement of cash flows are as follows:
Unaudited Unaudited Unaudited
6 months 6 months 12 months
to to to
30 November 30 November 31 May
2012 2011 2012
$'000 $'000 $'000
Net cash flows from operating
activities (56) 726 721
--------------- ---------------- ---------------
6. Earnings per share
The calculation of basic and diluted earnings per share is based
on the following data:
Unaudited Unaudited Unaudited
6 months 6 months 12 months
to to to
30 November 30 November 31 May
2012 2011 2012
$'000 $'000 $'000
Profit / (loss) the purpose
of calculating basic earnings
per share (profit / (loss)
attributable to equity holders) 25,171 (2,751) (6,221)
--------------- ------------- -------------
(Loss) / profit for the purpose
of calculating basic earnings
per share from continuing activities (4,193) (3,477) (6,942)
--------------- ------------- -------------
Number of shares
Weighted average number of
ordinary shares for the purposes
of calculating basic and diluted
earnings / (loss) per share 1,059,716,238 693,254,888 874,483,042
--------------- ------------- -------------
Basic and diluted loss per
share (cents) 2.4 (0.4) (0.7)
Loss per share from continuing
activities (cents) (0.4) (0.5) (0.8)
7. Bank loan
Unaudited Unaudited Unaudited
6 months to 6 months 12 months
30 November to to
2012 30 November 31 May
2011 2012
$'000 $'000 $'000
Bank overdraft 1,853 1,551 123
------------- ------------- -------------
The group has a $2m revolving credit facility secured upon its
grain inventories in Mozambique.
8. Share Capital
Ordinary shares of 0.1p each
Authorised Allotted and fully
paid
Number Number $'000
At 1 June 2010 2,345,000,000 547,771,554 923
Issue of shares - 145,483,334 226
--------------- --------------- ----------
At 31 May 2011 and at 30 November
2011 2,345,000,000 693,254,888 1,149
Issue of shares - 366,461,350 570
--------------- --------------- ----------
At 31 May 2012 and at
30 November 2012 2,345,000,000 1,059,716,238 1,719
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 2011 2,5000,000,000 848,254,888 1,387
--------------- --------------- ----------
At 31 May 2012 2,5000,000,000 1,214,716,238 1,957
--------------- --------------- ----------
At 30 November 2012 2,5000,000,000 1,214,716,238 1,957
--------------- --------------- ----------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PGUQAPUPWGRM
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