TIDMAGTA
RNS Number : 0650S
Agriterra Ltd
04 November 2013
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
4 November 2013
Agriterra Ltd ('Agriterra' or 'the Group')
Preliminary Results
Agriterra Ltd, the AIM listed pan-African agricultural company,
announces its unaudited results for the year ended 31 May 2013.
OVERVIEW
-- African focussed multi divisional agricultural Group with
vertically integrated operations to maximise margins and
revenues
-- Defined investment and development programme to provide foundation for sustainable growth and profitability - focussing on expansion of beef operations in Mozambique and cocoa operations in Sierra Leone
-- Record revenues of US$21.2m (2012: US$13.8m) reported and
increased Net Asset Value ('NAV') to US$60.0m (2012: US$41.4m)
-- Strong balance sheet to support expansion programme following
the sale of legacy oil assets in Ethiopia - further $10m before tax
due if a commercial discovery is made in Ethiopia
Beef Operations, Mozambique
-- Revenue from beef operations more than doubled during the
year to US$2.2m (2012: US$0.9m) with the slaughter of 2,145 animals
(2012: 1076 animals). 1,832 head slaughtered from 1 June to 31
October 2013
-- Completion of abattoir and opening of 3 retail butchery
units, initiating our "field to fork" strategy
-- Improved pregnancy rates with bumper calving season - expect
to achieve target of 10,000 head by 2015
-- Acquisition of third ranch completed
Cocoa Operations, Sierra Leone
-- Integrated cocoa buying, trading and production divisions in
line with strategy of establishing a secure, sustainable and
traceable source of supply
-- Rapid expansion of cocoa plantation to facilitate commercial
large scale cocoa production - 3,200 hectares plantation land
acquired to date and negotiations underway to expand further
-- Expanding nursery to 2.2 hectares with capacity to cultivate 1.1 million seedlings
-- In excess of 250 hectares of land planted, with an additional
750 hectares targeted to be cleared and planted by Q3 2014
-- Cocoa trading business with 3 hub stores and a buyer register of over 3,500 farmers
-- Improved market share despite poor harvest with revenues
generated from cocoa trading of US$3.14m (2012: US$3.25m)
-- New warehousing and processing facility in Kenema expected to
be commissioned in December 2013
Maize Operations, Mozambique
-- Record revenues of US$15.8m generated from maize division,
representing a 61% increase compared to the previous year (2012:
US$9.7m)
-- Maize milled increased 68% to 46,600 tonnes (2012: 27,690
tonnes) and maize meal sold increased 59% to 34,500 tonnes (2012:
21,717 tonnes)
-- Poor harvest impacted the 2013-2014 buying season - however
increased demand and a more favourable pricing environment expected
as a result
Agriterra CEO Andrew Groves said, "We continue to develop an
integrated African focussed agricultural business that is
positioned for long term sustainable growth and profitability. We
have invested heavily in building the platform needed to support
our expansion plans, with a particular focus on beef and cocoa,
where future pricing dynamics are extremely positive. We remain
excited about the potential of agri businesses and look forward to
achieving our growth targets by implementing our expansion strategy
and building shareholder value."
CHAIRMAN'S STATEMENT
Agriterra continues to develop and invest in its agricultural
operations in Mozambique and Sierra Leone, building a multiple
revenue stream business focussed primarily on beef, cocoa and
maize. The Group has benefited greatly from the non-dilutive cash
injection of US$28 million from the sale of its legacy oil assets
in Ethiopia, which has enabled it to invest further in its
expansion programme across all divisions. This included the
building of an abattoir and the opening of butchery outlets in
Mozambique as well as the establishment of a cocoa nursery and
plantation and a new warehousing and processing facility in Sierra
Leone.
Underlining the growth that we achieved this year, we reported
record revenues of US$21.2m (2012:$13.8m) and increased Net Asset
Value ('NAV') to US$60m (2012: US$41.4m). The Board recognises the
potential for agriculture and has established a development
strategy to grow the inherent value of the business by utilising
the Group's framework in place to build a profitable and fully
integrated African focussed agricultural company.
In line with this we have made progress across all three of our
main divisions. Mozbife Limitada ('Mozbife'), our beef operation in
Mozambique, now has three ranches, a feedlot, an abattoir and three
retail butcheries with two satellite units, meaning we have a fully
integrated beef operation to capitalise on the full uplift through
the value chain from field to fork. As a result, revenues from this
division more than doubled during the period, with the slaughter of
more than 2,100 animals which generated US$2.2m (2012: $0.9m). With
a total herd of 6,879 head at the year end and a high current
pregnancy rate from our 4,100 head breeding herd, we expect to
achieve our initial target of 10,000 head by 2015. This should
provide the critical mass to generate significant returns and
profitability in the future.
Also in Mozambique, we achieved record sales in the grain
division of US$15.8m (2012: US$9.7m), although we experienced lower
margins due to the pricing environment and harvest. Despite a poor
harvest in 2013, current grain inventories stand at 19,000 tonnes.
With strong demand and improved pricing, margins are anticipated to
improve compared with 2013. We maintain a positive outlook for our
grain division, which works strategically with our beef operations,
as the bran by-product of the milling operation forms an important
constituent of feed in the Vanduzi Feedlot operation, thus
highlighting the integrated relationship between our Mozambican
operations.
In Sierra Leone, under our Tropical Farms Limited ('TFL')
subsidiary, we continue to develop our 3,200 hectare cocoa
plantation with 250 hectares now planted and a further 750 hectares
targeted this year. The seedlings are being generated from our own
nursery which is being expanded to 2.2 hectares and will hold over
1 million plants. We are building a new warehousing and cocoa
processing facility outside Kenema, which we believe will enable us
to establish critical mass and build a profitable trading
operation. The trading business is focussed on three hub stores in
the main buying centres in the cocoa growing region. The early
rainy season crop has been poor, with only 200 tonnes purchased to
date, however TFL expects to extend its buying network out from
these hubs as the dry season crop comes to market. Although this
division performed below our expectation with turnover of US$3.14m
(2012: US$3.25m), it enables us to establish ourselves as a secure,
sustainable and traceable source of cocoa supply in Sierra Leone,
which will dovetail with the plantation as it moves into commercial
production in 2016.
The commodities outlook in the wider food sector remains highly
positive. Demographics suggest that there will be an increasing
demand for food as the global population continue to rise.
Particularly relevant to Agriterra, the increasing adoption of
western diets in eastern and emerging economies has led to a
growing demand for beef. Add to this the cocoa market dynamics,
where shortages are expanding as chocolate sales climb to record
highs, we are confident that we are well positioned to increase
revenue and margins over the coming years, as our own high quality
product reaches the market.
Financial Results
We continue to invest heavily in building the business which has
been highlighted by the investment to date. We have reported
revenues of US$21.2m (2012: US$13.8m) and a profit of US$21.8m
(2012: loss US$6.2m), which has been primarily driven by the funds
received for our legacy oil assets. The continued expansion of the
ranching and the cocoa trading operations lead to an increased
operating loss on continuing activities before finance costs and
tax of US$7.3m (2012: US$6.8m). Importantly NAV rose to $60.0m, a
45% increase from $41.4m last year.
Outlook
We see strong growth potential for our business as we remain
committed to building a sustainable, scalable, profitable and fully
integrated African focussed agricultural Group. We see the main
growth being achieved through the scaling of our beef operations in
Mozambique and our cocoa division in Sierra Leone. Importantly, as
we develop these businesses, by expanding our beef "field to fork"
strategy where we raise, slaughter and sell to the end customer,
and developing our own cocoa plantations, our margins increase
significantly, which should translate into increasing
profitability.
Importantly, our investment case is aligned with the current
global markets where increasingly globalised tastes have seen a
rise in meat demand, and reduced cocoa bean production combined
with strong processing grind figures, due to increased global
demand for chocolate products, have resulted in an underlying
change in the fundamentals and higher cocoa bean prices.
With a strong cash position to support development and multiple
revenue streams, Agriterra is positioned well for growth.
Furthermore, as part of the sale of our legacy oil assets, if there
is a commercial discovery on the South Omo Block in Ethiopia, the
Company receives a further $10 million (pre-tax).
Finally I'd like to thanks all involved in the Group for their
hard work and support as we look towards and exciting future.
Phil Edmonds
Chairman
4 November 2013
For further information please visit www.agriterra-ltd.com or
contact:
Andrew Groves Agriterra Ltd Tel: +44 (0) 20 7408
9200
David Foreman Cantor Fitzgerald Europe Tel: +44 (0) 20 7894
7684
Rick Thompson Cantor Fitzgerald Europe Tel: +44 (0) 20 7894
7684
Andy Cuthill Peat & Co. Tel: +44 (0) 20 3540
1722
John Beaumont Peat & Co. Tel: +44 (0) 20 3540
1723
Susie Geliher St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
CONDENSED UNAUDITED FINANCIAL STATEMENTS
CONSOLIDATED UNAUDITED INCOME STATEMENT
For the year ended 31 May 2013
2013 2012
Continuing Operations Note $'000 $'000
----- --------- ----------
Revenue 3 21,213 13,826
Cost of sales (18,625) (11,913)
Gross profit 2,588 1,913
Increase in value of biological
assets 770 400
Operating expenses (10,761) (9,169)
Other income 136 47
Share of (loss) / profit from
associate (5) 9
Operating loss (7,272) (6,800)
Finance income 43 48
Finance costs (689) (164)
Loss before taxation (7,918) (6,916)
Income tax expense (13) (26)
Loss after tax (7,931) (6,942)
Discontinued operations
Profit for the year 4 28,870 721
Profit / (loss) for the year
attributable to owners of the
parent 20,939 (6,221)
========= ==========
Profit / (loss) per share
- Basic (cents) 5 1.98c (0.71c)
- Diluted (cents) 5 1.90c (0.71c)
Loss per share from continuing
operations
- Basic and diluted (cents) 5 (0.75c) (0.79c)
CONSOLIDATED UNAUDITED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 May 2013
2013 2012
$'000 $'000
--------- --------
Profit / (loss) for the year 20,939 (6,221)
Foreign exchange translation differences (2,492) 2,078
Other comprehensive income for the
year (2,492) 2,078
Total comprehensive income for the
year 18,447 (4,143)
========= ========
Total comprehensive income for the
year
attributable to owners of the parent
company arising from:
* Continuing activities (10,423) (4,864)
* Discontinued activities 28,870 721
--------- --------
18,477 (4,143)
========= ========
CONSOLIDATED UNAUDITED STATEMENT OF FINANCIAL POSITION
As at 31 May 2013
2013 2012
Note $'000 $'000
----- --------- ----------
ASSETS
Non-current assets
Intangible assets 697 963
Property, plant and equipment 6 33,241 26,243
Investment in associate 4 9
Financial assets 4 -
Biological assets 2,060 1,642
Total non-current assets 36,006 28,857
--------- ----------
Current assets
Biological assets 1,947 1,018
Inventories 5,456 6,701
Trade and other receivables 3,378 3,628
Cash and cash equivalents 18,748 3,553
Total current assets 29,529 14,900
--------- ----------
TOTAL ASSETS 65,535 43,757
========= ==========
LIABILITIES
Current liabilities
Borrowings (3,091) (123)
Trade and other payables (2,416) (2,238)
--------- ----------
Total current liabilities (5,507) (2,361)
--------- ----------
NET ASSETS 60,028 41,396
========= ==========
EQUITY
Issued capital 1,960 1,957
Share premium 148,622 148,530
Shares to be issued 2,940 2,940
Share based payment reserve 1,710 1,620
Translation reserve (2,196) 296
Retained earnings (93,008) (113,947)
TOTAL EQUITY ATTRIBUTABLE TO
OWNERS OF THE PARENT 60,028 41,396
========= ==========
Attributable to equity holders of the parent
CONSOLIDATED Ordinary Deferred Shares Share based
UNAUDITED share share Share premium to be payment Translation Retained Total
STATEMENT capital capital $'000 issued reserve reserve earnings
OF CHANGES IN $'000 $'000 $'000 $'000 $'000 $'000 $'000
EQUITY
Balances at 1
June 2011 1,149 238 131,593 - 1,360 (1,782) (107,726) 24,832
Loss for the
year - - - - - - (6,221) (6,221)
Other
comprehensive
income
Exchange
translation
differences
on foreign
operations - - - - - 2,078 - 2,078
--------- --------- --------------- -------- ------------ -------------- ----------- --------
Total
comprehensive
income for the
year - - - - - 2,078 (6,221) (4,143)
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 1
June 2012 1,719 238 148,530 2,940 1,620 296 (113,947) 41,396
Profit for the
year - - - - - - 20,939 20,939
Other
comprehensive
income
Exchange
translation
differences
on foreign
operations - - - - - (2,492) - (2,492)
Total
comprehensive
income for the
year
Transactions
with owners - - - - - (2,492) 20,939 18,447
Share issues 3 - 92 - - - - 95
Share based
payment charge - - - - 90 - - 90
--------- --------- --------------- -------- ------------ -------------- ----------- --------
Total
transactions
with owners 3 - 92 - 90 - - 185
Balances at 31
May 2013 1,722 238 148,622 2,940 1,710 (2,196) (93,008) 60,028
========= ========= =============== ======== ============ ============== =========== ========
CONSOLIDATED UNAUDITED CASH FLOW STATEMENT
For the year ended 31 May 2013
2013 2012
$'000 $'000
--------- -----------
Operating activities
Loss before tax from continuing
operations (7,918) (6,916)
Adjustments for:
- Depreciation of property, plant
and equipment 2,209 1,878
- Loss on disposal of property, plant
and equipment 1 12
- Share based payment charge 90 100
- Increase in Biological assets (770) (400)
- Foreign exchange 529 149
- Net interest expense 646 116
Operating cash flow before movements in
working capital (5,213) (5,061)
Working capital adjustments:
-Decrease / (increase) in inventory 917 (3,505)
-Decrease / (increase) in receivables 1,104 (1,545)
-Increase / (decrease) in payables 330 (690)
--------- -----------
Cash used in operations (2,862) (10,801)
Corporation tax paid (125) (60)
Finance charges (689) (164)
Interest received 43 48
Net cash used in continuing operating activities (3,633) (10,977)
Net cash from discontinued activities - 721
--------- -----------
Net cash used in operating activities (3,633) (10,256)
--------- -----------
Investing activities
Purchase of subsidiary net of debt
acquired - (283)
Purchase of property, plant and
equipment (10,505) (7,575)
Proceeds on sale of property, plant
and equipment 14 96
Purchase of biological assets (773) (1,428)
Purchase of investment in financial assets (4) -
--------- -----------
Net cash used in investing in continuing
activities (11,268) (9,190)
Discontinued activities 27,110 -
Net cash from / (used in) investing
activities 15,842 (9,190)
Financing activities
Proceeds from issue of share capital - 15,000
Share issue costs - (610)
Draw down of overdraft 1,468 123
Draw down of loans 6,000 -
Repayment of loans (4,500) -
Net cash from financing activities 2,968 14,513
--------- -----------
Net increase / (decrease) in cash and
cash equivalents 15,177 (4,933)
Cash and cash equivalents at start
of the year 3,553 8,172
Exchange rate adjustment 18 314
Cash and cash equivalents at end
of the year 18,748 3,553
========= ===========
NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS
For the year ended 31 May 2013
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
The reporting currency for the Company and Group is the US
Dollar as it most appropriately reflects the Group's business
activities in the agricultural sector in Africa and therefore the
Group's financial position and financial performance.
The results for the year have been prepared using the
recognition and measurement principles of international financial
reporting standards as adopted by the EU.
The audited financial information for the year ended 31 May 2012
is based on the statutory accounts for the financial year ended 31
May 2012. The auditors reported on those accounts: their report was
(i) unqualified, (ii) did not include references to any matters to
which the auditors drew attention by way of emphasis without
qualifying the reports and (iii) did not contain statements where
the auditor is required to report by exception.
The financial information for the year ended 31 May 2013 is
unaudited and the statutory accounts for the year ended 31 May 2013
are expected to be finalised and signed following approval by the
board of directors on 12 November 2013.
The financial information contained in this announcement does
not constitute statutory accounts for the year ended 31 May 2013 or
2012 as defined by the Companies (Guernsey) Law 2008.
A copy of this announcement can be viewed on the Group's
website
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.
Going concern
The board has prepared forecasts for the Group's ongoing
businesses covering the period of 12 months from the date of
approval of these financial statements. These forecasts are based
on assumptions that there are no significant disruptions to the
supply of maize or cocoa to meet its projected sales volumes and
take into account the investment in the beef herd, cocoa
plantation, other working capital and additional property plant and
equipment that are expected to be required.
The directors believe that, with the receipt of funds from the
disposal of the legacy oil and gas assets, together with existing
resources, the Group and Company is well placed to manage its
business risks successfully despite the current uncertain economic
outlook. The directors have a reasonable expectation that the Group
and Company have adequate resources to continue in operational
existence for the foreseeable future. Thus they continue to adopt
the going concern basis of accounting in preparing the annual
financial statements.
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.
During the previous financial year, licenses to import maize
meal into Zimbabwe were withdrawn. With no renewal likely in the
foreseeable future, during the period the board has closed the
operations and all assets have been fully impaired. The loss on
discontinued operations was $276,000 (2012: $nil).
With the focus on establishing the Group's agricultural
activities, the directors have decided not to proceed with the
Company's concession agreement to develop the East zone of the port
of Conakry and therefore the asset has been written off. The loss
on discontinued operations was $234,000 (2012: $nil).
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 2013 the value of the
breeding herd disclosed as a non-current asset was $2,060,000
(2012: $1,642,000). The value of the herd held for slaughter
disclosed as a current asset was $1,947,000 (2012: $1,018,000).
Income tax
In order to obtain clearance from the Ethiopian Government for
the disposal of the Group's oil and gas interests, income tax at a
rate of 30% was withheld and paid over to the Ethiopian tax
authorities. A refund of $1m (2012: $nil) has been recognised
during the period as the directors best estimate of the tax charge
for the disposal. The Ethiopian tax returns are in the process of
being finalised and there remains uncertainty surrounding the exact
magnitude and timing of receipt following the submission and
agreement of the actual tax charge.
3. Segment reporting
As set out in the operating review, the directors consider that
the Group's continuing activities comprise the segments of grain
processing, beef production and cocoa businesses, and other
unallocated expenditure in one geographical segment, Africa.
Revenue represents sales to external customers in the country of
domicile of the group company making the sale.
Unallocated expenditure relates to central costs and any items
of expenditure that can not be directly attributed to an individual
segment.
Year ending 31 May Grain Beef Cocoa Unallocated Total
2013
$'000 $'000 $'000 $'000 $'000
------- -------- -------- ------------ --------
Revenue 15,843 2,230 3,140 - 21,213
------- -------- -------- ------------ --------
Segment results
- Operating loss (108) (2,639) (1,564) (2,961) (7,272)
- Interest (expense)
/ income (335) 2 (5) (308) (646)
------- -------- -------- ------------ --------
Loss before tax (443) (2,637) (1,569) (3,269) (7,918)
------- -------- -------- ------------ --------
Income tax (13) - - - (13)
------- -------- -------- ------------ --------
Loss after tax (456) (2,637) (1,569) (3,269) (7,931)
======= ======== ======== ============ ========
The segment items included in the income statement for the year
are as follows:
Grain Beef Cocoa Unallocated Total
$'000 $'000 $'000 $'000 $'000
------ ------ ------ ------------ ------
Depreciation 767 932 369 141 2,209
====== ====== ====== ============ ======
Year ending 31 May Grain Beef Cocoa Unallocated Total
2012
$'000 $'000 $'000 $'000 $'000
-------- -------- ------ ------------ --------
Revenue 9,681 895 3,250 - 13,826
-------- -------- ------ ------------ --------
Segment results
- Operating profit
/ (loss) (1,203) (2,310) (578) (2,709) (6,800)
- Interest income (138) - - 22 (116)
-------- -------- ------ ------------ --------
Profit / (loss)
before tax (1,341) (2,310) (578) (2,687) (6,916)
Income tax (26) - - - (26)
-------- -------- ------ ------------ --------
Profit / (loss)
after tax (1,367) (2,310) (578) (2,687) (6,942)
-------- -------- ------ ------------ --------
The segment items included in the income statement for the year
are as follows:
Grain Beef Cocoa Unallocated Total
$'000 $'000 $'000 $'000 $'000
------ ------ ------ ------------ ------
Depreciation 980 703 105 90 1,878
====== ====== ====== ============ ======
Segment assets consist primarily of property, plant and
equipment, inventories and trade and other receivables and cash and
cash equivalents. Segment liabilities comprise operating
liabilities.
Capital expenditure comprises of additions to property, plant
and equipment and intangibles.
The segment assets and liabilities at 31 May 2013 and capital
expenditure for the year then ended are as follows:
Grain Beef Cocoa Unallocated Total
$'000 $'000 $'000 $'000 $'000
------- ------- ------ ------------ -------
Assets 14,935 18,434 5,750 26,416 65,535
Liabilities 1,928 407 15 3,157 5,507
Capital expenditure 466 6,174 4,162 45 10,847
======= ======= ====== ============ =======
Segment assets and liabilities are reconciled to Group assets
and liabilities as follows:
At 31 May 2013 Assets Liabilities
$'000 $'000
------- ------------
Segment assets and liabilities 39,119 2,350
Discontinued activities 226 606
Unallocated:
Property, plant and 6,232 -
equipment
Investments 8 -
Other receivables 2,175 -
Cash 17,775 -
Trade payables - 709
Accruals and deferred
income - 342
Loan note - 1,500
------- ------------
Total 65,535 5,507
======= ============
The segment assets and liabilities at 31 May 2012 and capital
expenditure for the year then ended are as follows:
Grain Beef Cocoa Unallocated Total
$'000 $'000 $'000 $'000 $'000
------- ------- ------ ------------ -------
Assets 17,934 12,410 2,633 10,780 43,757
Liabilities 595 35 154 1,577 2,361
Capital expenditure 546 5,485 1,186 357 7,574
======= ======= ====== ============ =======
Segment assets and liabilities are reconciled to Group assets
and liabilities as follows:
At 31 May 2012 Assets Liabilities
$'000 $'000
------- ------------
Segment assets and liabilities 32,978 784
Discontinued activities 226 606
Unallocated:
Intangible assets 266 -
Property, plant and 6,385 -
equipment
Investments 9 -
Other receivables 1,428 -
Cash 2,465 -
Amounts due to related
parties - 593
Accruals and deferred
income - 378
------- ------------
Total 43,757 2,361
======= ============
Unallocated property, plant and equipment includes $5.9m (2012:
$5.9m) in respect of the lease over 45,000 hectares of brownfield
land suitable for Palm oil production.
Significant customers
In the year ended 31 May 2013 no customers generated more than
10% of group revenue (2012: two customers generated $4,811,000
being 34.8% of group revenue).
4. Discontinued operations
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 and extract
potential value for shareholders. Consequently the oil and gas
activities were reclassified as a discontinued operation and the
discontinued operations' trading results are included in the income
statement as a single line below the loss after taxation from
continuing operations. The directors consider that the value of
exploration and evaluation and other related assets of $49.4m
(2012: $79.6m) is fully impaired. Provisions for impairment will be
written back as appropriate as gains from discontinued activities
upon receipt of funds.
On 17 January 2013, the Company completed the disposal of its
oil and gas interests in Ethiopia, realising a gain after tax of
$29.4m. This gain has been written back against the impairment
provision made in prior years.
As set out in note 4, the Group has closed its maize meal
importation business in Zimbabwe and its port development
concession in Conakry is not being taken forward.
The results for the discontinued operations 2013 2012
are as follows:
$'000 $'000
--------- ------
Operating expenses - (5)
Reversal of impairment of oil and
gas operations 40,380 726
Loss on closure of Zimbabwe and Conakry (510) -
Profit before taxation 39,870 721
Taxation (11,000) -
--------- ------
Profit after taxation 28,870 721
========= ======
Cash flows from discontinued operations included in the
consolidated statement of cash flows are as follows:
2013 2012
$'000 $'000
---------- ------
Net cash flows from operating activities - 721
Proceeds from disposal of oil and 40,000 -
gas interests
Costs relating to the disposal (890) -
Income tax paid (12,000) -
Net cash flows from investing activities 27,110 -
========== ======
The Group continues to negotiate with the Government of Southern
Sudan for compensation is respect of work undertaken. The timing of
receipt of the compensation payment together with the amount to be
received remains uncertain. Therefore the remaining oil and gas
interest remains fully impaired
5. Earnings per share
The calculation of the basic and diluted earnings per share is
based on the following data:
2013 2012
$'000 $'000
-------------- --------------
Loss before tax on continuing operations (7,918) (6,919)
Income tax expense (13) (26)
-------------- --------------
Loss for the purposes of basic earnings
per share from continuing activities (7,931) (6,942)
-------------- --------------
Profit for the purposes of basic
earnings per share from discontinued
activities 28,870 721
-------------- --------------
Profit / (loss) for the purposes
of basic earnings per share (loss
for the year attributable to equity
holders of the parent) 20,939 (6,221)
-------------- --------------
Number of shares
At 1 June 1,059,716,238 693,254,888
Share issue 2,102,240 366,461,350
-------------- --------------
At 31 May 1,061,818,478 1,059,716,238
============== ==============
Weighted average number of ordinary
shares for the purposes of basic
earnings /(loss) per share 1,059,963,899 874,483,042
Potential ordinary shares 43,447,117 41,081,583
-------------- --------------
Weighted average number of ordinary
shares for the purposes of diluted
earnings per share 1,103,411,016 915,564,625
-------------- --------------
Basic earnings / (loss) per share 1.98c (0.71c)
-------------- --------------
Basic earnings / (loss) per share
- diluted 1.90c (0.71c)
-------------- --------------
Loss per share from continuing activities (0.75c) (0.79c)
-------------- --------------
Earnings per share from discontinued
activities 2.72c 0.08c
-------------- --------------
Earnings per share from discontinued
activities - diluted 2.62c 0.08c
-------------- --------------
There is no dilutive effect from potential ordinary shares on
the loss per share on continuing activities.
6. Property, plant and equipment
Land and Plant and Motor Aviation Other Total
Buildings machinery Vehicles assets
$'000 $'000 $'000 $'000 $'000 $'000
Cost
1 June 2011 7,158 6,169 4,262 359 458 18,406
Additions 10,107 1,290 1,661 359 182 13,599
Disposals - - (44) - - (44)
Exchange rate adjustment 818 596 311 (75) 22 1,672
---------- ---------- --------- --------- ------- --------
1 June 2012 18,083 8,055 6,190 643 662 33,633
Additions 5,754 3,976 1,025 - 92 10,847
Disposals (292) (445) (1,698) - (181) (2,616)
Exchange rate adjustment (798) (469) (306) (70) (27) (1,670)
31 May 2013 22,747 11,117 5,211 573 546 40,194
---------- ---------- --------- --------- ------- --------
Depreciation
1 June 2011 269 1,501 3,044 72 256 5,142
Charge for the year 2 951 790 85 50 1,878
Disposals - - (29) - - (29)
Exchange rate adjustment - 203 205 (15) 6 399
---------- ---------- --------- --------- ------- --------
1 June 2012 271 2,655 4,010 142 312 7,390
Charge for the year 3 1,389 957 129 75 2,553
Disposals (269) (445) (1,679) - (181) (2,574)
Exchange rate adjustment - (208) (180) (15) (13) (416)
31 May 2013 5 3,391 3,108 256 193 6,953
Net book value
31 May 2013 22,742 7,726 2,103 317 353 33,241
========== ========== ========= ========= ======= ========
31 May 2012 17,812 5,400 2,180 501 350 26,243
========== ========== ========= ========= ======= ========
31 May 2011 6,889 4,668 1,218 287 202 13,264
========== ========== ========= ========= ======= ========
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DGBDBUDGBGXX
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
