Agriterra Ltd Trading Update and 2020 Annual Accounts Timetable (4784A)
September 29 2020 - 10:03AM
UK Regulatory
TIDMAGTA
RNS Number : 4784A
Agriterra Ltd
29 September 2020
29 September 2020
Agriterra Limited ('Agriterra' or the 'Company')
Agriterra Limited / Ticker: AGTA / Index: AIM / Sector:
Agriculture
Trading Update and 2020 Annual Accounts Timetable
Agriterra Limited, the AIM-quoted African agricultural company,
is pleased to provide the following
H1 2021 trading update and an update on its 2020 Annual Accounts
Timetable:
H1 2021 Trading Update
Like other businesses in Mozambique, the Company's operations
experienced significant and unanticipated events during H1
2021.
On 1 April 2020, the Mozambican government implemented policies
to minimise the spread of the COVID-19 pandemic, which have
remained in place to date and are anticipated to continue into
2021. All of these policies, including the closure of national
borders and the general downturn in industry and the logistics
sector have inevitably had a negative impact on the overall economy
in Mozambique.
The Company's Grain and Beef sales have however been encouraging
during H1 2021 despite growth being restricted by the reduction of
the informal retail sector as a result of COVID-19, this accounting
for a significant proportion of the Company's sales.
Grain Division Update:
The absence of reliable interprovincial transportation and cash
due to the COVID-19 restrictions has resulted in a delay in the
maize harvesting and buying season by over 3 months. As a result,
DECA has had to adjust its initial forecast purchases of maize from
local smallholder farmers from 42,000 tonnes to 35,000 tonnes. To
date the Company has purchased 20,000 tonnes and is confident that
a further 15,000 tonnes will be acquired in the next 3 months.
On a positive note, the COVID-19 shutdown has limited entry into
the market of imported maize meal, allowing DECA to access new
markets, and increase supply into existing markets, resulting in a
sales performance to date slightly ahead of internal expectations
pre COVID-19.
Beef Division Update:
The Beef operation has been more adversely affected by the
COVID-19 lockdown as Mozbife has both struggled to access the
cattle production areas, and the market for its products has shrunk
significantly due to the downturn in the economy.
However, with improved operating efficiencies and an increase in
the unit value per tonne of meat, Mozbife has seen an improvement
in net margins, which is hugely encouraging.
As announced previously, Mozbife was awarded a grant to build
nine (9) "Cattle Service Centres" in 2 provinces by the World Bank.
This programme was temporarily delayed by the COVID-19 lockdown,
but despite these challenges the project was successfully completed
in H1 2021.
2020 Annual Accounts Timetable
The Company also announces that following the grant by AIM
Regulation of an extension to its 2020 annual reporting deadline
(further to guidance provided in "Inside AIM" dated 26 March 2020),
it now expects to report its 2020 Annual Results for the year ended
31 March 2020 in October 2020. The delay in publishing the 2020
Accounts is due to the impact of the COVID-19 lockdown in
Mozambique on the ability of the Company's auditors and other key
financial personnel to access all required information on a timely
basis. Despite the logistical challenges presented by COVID-19, the
Company is pleased to confirm that the audit process is currently
being finalised.
The Company expects to report a total revenue figure (which is
currently unaudited) for the 2019/2020 financial year for the Group
of $12,940,000 (2018/19: $10,629,000), representing an increase in
revenue of 22% compared to the prior year.
Caroline Havers, Executive Chair, commented: "We are not alone
in having been impacted by the significant events in Mozambique and
the rest of the world over the past six months. However, our team
have nonetheless demonstrated great tenacity in maximising sales
during H1 2021. We expect further ongoing difficult trading
conditions in H2 2021 but as a Company are well positioned to come
through this period in a strong position."
** ENDS **
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014, and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
For further information please visit www.agriterra-ltd.com or
contact:
Agriterra Limited Strand Hanson Limited
(Nominated & Financial Adviser and
Broker)
============================ ====================================
Caroline Havers James Spinney / Ritchie Balmer
caroline@agriterra-ltd.com +44 (0) 207 409 3494
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTKKCBPNBKDCCB
(END) Dow Jones Newswires
September 29, 2020 10:03 ET (14:03 GMT)
Agriterra Ld (LSE:AGTA)
Historical Stock Chart
From Jul 2024 to Aug 2024
Agriterra Ld (LSE:AGTA)
Historical Stock Chart
From Aug 2023 to Aug 2024