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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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Agriterra Limited | AQSE:AGTA.GB | Aquis Stock Exchange | Ordinary Share | GG00BDG13C09 | Ordinary Shares 10p |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 2.00 | 0.50 | 3.50 | 2.00 | 2.00 | 2.00 | 0.00 | 06:39:19 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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0 | 0 | N/A | 0 |
TIDMAGTA
RNS Number : 2799N
Agriterra Ltd
29 January 2021
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Agriterra Limited / Ticker: AGTA / Index: AIM / Sector: Agriculture
Agriterra Limited ('Agriterra' or the 'Company')
Interim Results
Agriterra Limited, the AIM listed African agricultural company, announces its unaudited results for the six months ended 30 September 2020.
Chair's Statement
I am pleased to provide an update on our performance in the first half of the 2021 financial year ('HY-2021'). These results will be made available on the Company's website.
Operational update
Grain division
The Grain division faced competition from cheap imported maize from South Africa in the southern market of Mozambique, however total sales revenue for the Grain division increased by 3% as compared to the prior period as a result of better performance in the other regions. We managed to maintain our strong hold in the central region of Mozambique and intend to expand and diversify our product ranges to cater for different customer needs.
Revenue for the 6 months increased to $ 4.0m (HY-2020: $ 3.9m), however EBITDA decreased to $ 0.1m (HY-2020: EBITDA of $ 0.4m) due to an increase in grain purchasing cost as compared to the prior year. The finance costs increased to $ 430,000 (HY-2020: $ 352,000) resulting in a loss after tax of $ 407,000 (HY-2020: loss $ 139,000).
Improved quality and the recommissioning of a 1kg packaging line, are expected to lead our entry directly into the informal sector in the second half of the year. This product has a higher margin than the larger packs of meal.
We entered into three pre-paid contracts for our products with wholesalers which provided some liquidity to purchase early season maize. The strategy was to acquire sufficient maize for the financial year in the period April - July, however delays in the approval of additional overdraft facilities to finance the procurement of maize, meant that the division was not able to take full advantage of lower early season maize prices. Consequently, it is expected that the division's margins will be under more pressure against budget in the second half of the year.
In 2020 we entered into a joint venture with Snax for Africa Limited to produce maize snacks, operating from our premises in Chimoio. COVID-19 restrictions delayed the commissioning of the new plant, but this became operational in December 2020 and early results show an increasing demand for the product.
Beef division
After a significant improvement in the division's trading in the prior year, the Beef division has seen a fall in volumes as the South African Rand depreciated to less than 4 Metical during Q1/early Q2 FY-21. This has led to tough trading conditions in the south of the country where our beef product has to compete with cheap imports from South Africa. This situation is expected to change, as the Rand has strengthened to over 4.8 Meticais, which, if it holds, will make imports more expensive in Q3 and Q4 of FY-21.
Revenue for the 6 months fell to $ 1.5m (HY-2019: $ 2.2m), however EBITDA improved to a loss of $ 0.1m (HY-2020: loss $ 0.4m). Finance costs decreased to $ 74,000 (HY-2020: $ 84,000) and the loss after tax decreased to $ 346,000 (HY-2020: loss $ 708,000). The loss for the period significantly decreased due to cost management initiatives implemented during the period and the strategy to unlock the southern market, notably Maputo, commenced.
Plans are being made to develop a sustainable presence in the Maputo market. This will provide a platform for growth in the Beef division.
Group Results
Group revenue for the half-year ended 30 September 2020 decreased by 9% to $ 5.5m (H1-2020: $6.1m). As a result of cost management in the Grain division, and despite the difficulties in the Beef division, the Group's trading operations showed a reduction in the operating loss before interest to $ 0.5m (H1-2020: loss $ 0.8m). The containment of the operational loss is due to aggressive cost monitoring and control measures implemented by management during the period. However, financing costs increased by 24% to $0.5 million (H1- 2020: $0.4 million) but despite this, the Group loss after tax decreased by 21% to $ 0.997 million (H1-2020: loss $ 1.268 million). During the period, inventories increased by $ 1.2m to $ 2.8m (H1-2020: $1.6m). Net debt at 30 September 2020 was $ 6.8m (31 March 2020: $ 4.3m). Increase in net debt resulted from procurement of grain stock using the overdraft facility, which will provide a large proportion of the inventory requirements in the second half of the 2021 financial year.
Outlook and COVID-19
COVID-19 has had a significant negative impact globally, both economically and socially. There is a risk the virus will start to escalate in Mozambique, which could potentially impact the Group's operations through the contraction of the economy and restrictions on movement within the country. Currently the incidence of COVID-19 is increasing and Mozambique health care units and facilities are reported to be 90 percent full. All countries in Southern Africa are implementing aggressive COVID-19 preventive measures which include closing land borders in response to the new COVID-19 variants, with travel bans widespread.
The operating companies continue with the training and awareness programmes implemented at the start of the pandemic. The training and practical measures taken to protect staff health have resulted in no significant cases amongst the staff. We remain alert to the fast-changing environment and are prepared to put in place mitigating actions as events develop. As previously reported, our products are key staples in the domestic Mozambican market and demand is not expected to be significantly affected.
The investment in the oil and gas sector in the North remains in large part suspended and has reinforced the
importance of developing the presence of our Beef division in the South. CSO Havers Chair 28 January 2021
For further information please VISIT www.agriterra-ltd.com or contact:
Agriterra Limited Strand Hanson Limited Caroline Havers caroline@agriterra-ltd.com James Spinney / Ritchie Tel: +44 (0) 207 Balmer / Rob Patrick 409 3494 --------------------------- ------------------------ -----------------
Consolidated statement of profit or loss and other comprehensive income
Consolidated income statement
6 months 6 months Year ended ended ended 30 September 30 September 31 March 2020 2019 2020 Unaudited Unaudited Audited Note $000 $000 $000 CONTINUING OPERATIONS Revenue 2 5,525 6,082 12,910 Cost of sales (4,740) (4,793) (10,643) (Decrease)/Increase in fair value of biological assets (104) 76 (489) Gross profit 681 1,365 1,778 (4,700) Operating expenses (1,166) (2,249) 225222255 Other income 7 4 842 Profit on disposal of property, plant and equipment 26 51 80 -------------- Operating loss (452) (829) (2,000) Net finance costs 3 (545) (439) (964) -------------- Loss before taxation (997) (1,268) (2,964) Taxation - - 29 -------------- -------------- ----------- Loss for the period 2 (997) (1,268) (2,993) Loss for the period attributable to owners of the Company (997) (1,268) (2,993) ============== ============== =========== LOSS PER SHARE Basic and diluted loss per share - US Cents 4 (4.69) (5.97) (14.09) ============== ============== ===========
Consolidated Statement of comprehensive income
6 months 6 months Year ended ended ended 30 September 30 September 31 March 2020 2019 2020 Unaudited Unaudited Audited $000 $000 $000 Loss for the period (997) (1,268) (2,993) Items that may be reclassified subsequently to profit or loss: Foreign exchange translation differences (121) (185) (1,517) Other comprehensive loss for the period (1,118) (185) (1,517) -------------- -------------- ---------- Total comprehensive loss for the period attributable to owners of the Company (1,118) (1,453) (4,510) ============== ============== ==========
Consolidated statement of financial position
30 September 30 September 31 March 2020 2019 2020 Unaudited Unaudited Audited (Restated) Note $000 $000 $000 Non-current assets Property, plant and equipment 5,526 6,955 6,049 Intangible assets 75 100 92 5,601 7,055 6,141 ------------- ------------- ---------- Current assets Biological assets 561 701 665 Inventories 2,843 1,594 825 Trade and other receivables 1,586 952 1,249 Cash and cash equivalents 411 1,590 1,034 5,401 4,837 3,773 ------------- ------------- ---------- Total assets 11,002 11,892 9,914 ------------- ------------- ---------- Current liabilities Borrowings 5 5,061 3,727 3,339 Trade and other payables 3,741 1,218 3,315 8,802 4,945 6,654 ------------- ------------- ---------- Net current liabilities (3,401) (108) (2,881) ------------- ------------- ---------- Non-current liabilities Borrowings 5 2,102 2,674 2,044 ------------- ------------- ---------- Total liabilities 10,904 7,619 8,698 ------------- ------------- ---------- Net assets 98 4,273 1,216 ============= ============= ========== Share capital 6 3,373 3,373 3,373 Share premium 151,442 151,442 151,442 Share based payments reserve 87 172 87 Translation reserve (18,494) (17,041) (18,373) Accumulated losses (136,310) (133,673) (135,313) ------------- ------------- ---------- Equity attributable to equity holders of the parent 98 4,273 1,216 ============= ============= ==========
The unaudited condensed consolidated financial statements of Agriterra Limited for the six months ended 30 September 2020 were approved by the Board of Directors and authorised for issue on 28 January 2021.
Signed on behalf of the Board of Directors:
CSO Havers Chair
Consolidated statement of changes in equity
Share Share based Translation Accumulated Total capital Share premium payment reserve reserve losses Equity US$000 US$000 US$000 US$000 US$000 US$000 --------- -------------- ----------------- ------------ ------------ -------- Balance at 1 April 2019 3,373 151,442 172 (16,856) (132,405) 5,726 Loss for the period - - - - ( 1,268 ) (1,268) Other comprehensive income: Exchange translation loss on foreign operations - - - (185) - (185) --------- -------------- ----------------- ------------ ------------ -------- Total comprehensive loss for the year - - - (185) (1,268) (1,453) Transactions with owners Share based payments - - - - - - Total transactions with owners for the period - - - - - - Balance at 30 September 2019 3,373 151,442 172 (17,041) (133,673) 4,273 Loss for the period - - - - (1,725) (1,725) Other comprehensive income: Exchange translation loss on foreign operations - - - (1,332) - (1,332) Total comprehensive loss for the period - - - (1,332) (1,725) (3,057) Transactions with owners Share based payments - - (85) - 85 - --------- -------------- ----------------- ------------ ------------ -------- Total transactions with owners for the period - - (85) - 85 - Balance at 31 March 2020 3,373 151,442 87 (18,373) (135,313) 1,216 Loss for the period - - - - (997) (997) Other comprehensive income: Exchange translation loss on foreign operations - - - (121) - (121) --------- -------------- ----------------- ------------ ------------ -------- Total comprehensive loss for the period - - - (121) (997) (1,118) Balance at 30 September 2020 3,373 151,442 87 (18,494) (136,310) 98 --------- -------------- ----------------- ------------ ------------ --------
Consolidated cash flow statement
Year 6 months ended 6 months ended ended 30 September 30 September 31 March 2020 2019 2020 Note Unaudited Unaudited Audited $000 $000 $000 Loss before tax for the period (997) (1,268) (2,964) Adjustments for: Amortisation and depreciation 2 208 420 619 Profit on disposal of property, plant and equipment (26) (51) (80) Foreign exchange loss/(gain) 37 (42) (1,383) (Increase)/Decrease in value of biological assets (104) (76) 489
Net decrease/(increase) in biological assets 172 205 (366) Net Finance costs 545 439 964 Operating cash flows before movements in working capital (165) (373) (2,721) Increase in inventories (2,018) (919) (192) Increase in trade and other receivables (337) (254) (579) Increase in trade and other payables 426 32 2,207 Cash used in operating activities (2,094) (1,514) (1,285) Corporation tax paid - - (14) Interest received 3 - 2 14 Net cash used in operating activities (2,094) (1,512) (1,285) --------------- --------------- ---------- Cash flows from investing activities Proceeds from disposal of property, plant and equipment, net of expenses incurred 26 51 80 Acquisition of property, plant and equipment (79) (385) (46) Acquisition of intangible assets - (3) (15) Net cash (used in)/generated from investing activities (53) (337) 19 --------------- --------------- ---------- Cash flow from financing activities Finance costs 3 (545) (441) (978) Net drawdown of overdrafts 5 1,639 1,913 1,732 Net drawdown/(repayment) of loans and finance leases 5 489 (230) (624) Net cash generated from financing activities 1,583 1,242 130 --------------- --------------- ---------- Net decrease in cash and cash equivalents (564) (607) (1,136) Effect of exchange rates on cash and cash equivalents (59) - (27) --------------- --------------- ---------- Cash and cash equivalents at beginning of period 1,034 2,197 2,197 --------------- --------------- ---------- Cash and cash equivalents at end of period 411 1,590 1,034 =============== =============== ==========
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 non-cellular company limited by shares incorporated and domiciled in Guernsey, Channel Islands. The address of its registered office is Connaught House, St Julian's Avenue, St Peter Port, Guernsey GY1 1GZ.
The Company's Ordinary Shares are quoted on the AIM Market of the London Stock Exchange ('AIM').
The unaudited condensed consolidated financial statements have been prepared in US Dollars ('US$' or '$') as this is the currency of the primary economic environment in which the Group operates.
1. Basis of preparation
The condensed consolidated financial statements of the Group for the 6 months ended 30 September 2020 (the 'H1-2021 financial statements'), which are unaudited and have not been reviewed by the Company's Auditor, have been prepared in accordance with the International Financial Reporting Standards ('IFRS'), as adopted by the European Union, accounting policies adopted by the Group and set out in the annual report for the year ended 31 March 2020 (available at www.agriterra-ltd.com). The Group does not anticipate any significant change in these accounting policies for the year ended 31 March 2021. References to 'IFRS' hereafter should be construed as references to IFRSs as adopted by the EU.
This interim report has been prepared to comply with the requirements of the AIM Rules of the London Stock Exchange (the 'AIM Rules'). In preparing this report, the Group has adopted the guidance in the AIM Rules for interim accounts which do not require that the interim condensed consolidated financial statements are prepared in accordance with IAS 34, 'Interim financial reporting' . Whilst the financial figures included in this report have been computed in accordance with IFRSs applicable to interim periods, this report does not contain sufficient information to constitute an interim financial report as that term is defined in IFRSs.
The financial information contained in this report also does not constitute statutory accounts under the Companies (Guernsey) Law 2008, as amended. The financial information for the year ended 31 March 2020 is based on the statutory accounts for the year then ended. The Auditors reported on those accounts. Their report was unqualified and referred to going concern as a key audit matter. The Auditors drew attention to note 3 to the financial statements concerning the Group's ability to continue as a going concern which shows that the Group will need to renew its overdraft facilities, maintain its current borrowings and raise further finance in order to continue as a going concern.
The H1-2021 financial statements have been prepared in accordance with the IFRS principles applicable to a going concern, which contemplate the realisation of assets and liquidation of liabilities during the normal course of operations. Having carried out a going concern review in preparing the H1-2020 financial statements, the Directors have concluded that there is a reasonable basis to adopt the going concern principle.
2. Segment information
The Board consider that the Group's operating activities during the period comprised the segments of Grain and Beef, undertaken in Mozambique. In addition, the Group has certain other unallocated expenditure, assets and liabilities.
The following is an analysis of the Group's revenue and results by operating segment:
6 months ended 30 September 2020 - Unaudited Grain Beef Unallo-cated Elimina-tions Total $000 $000 $000 $000 $000 -------- ------- --------------- ---------------- -------- Revenue External sales(2) 3,990 1,535 - - 5,525 Inter-segment sales(1) 128 - - (128) - -------- ------- --------------- ---------------- -------- 4,118 1,535 - (128) 5,525 -------- ------- --------------- ---------------- -------- Segment results - Operating loss (46) (283) (203) - (532) - Interest expense (430) (74) (41) - (545) - Other gains and losses 69 11 - 80 Loss before tax (407) (346) (244) - (997) Income tax - - - - - -------- ------- --------------- ---------------- -------- Loss for the period (407) (346) (244) - (997) ======== ======= =============== ================ ======== 6 months ended 30 September 2019 - Unaudited Grain Beef Unallo-cated Elimina-tions Total $000 $000 $000 $000 $000 -------- ------- --------------- ---------------- -------- Revenue External sales(2) 3,888 2,194 - - 6,082 Inter-segment sales(1) 263 - - (263) - -------- ------- --------------- ---------------- -------- 4,151 2,194 - (263) 6,082 -------- ------- --------------- ---------------- -------- Segment results - Operating profit/(loss) 203 (669) (418) - (884) - Net interest expense (352) (84) (3) - (439) - Other gains and losses 10 45 - 55 Loss before tax (139) (708) (421) - (1,268)
Income tax - - - - - -------- ------- --------------- ---------------- -------- Loss for the period (139) (708) (421) - (1,268) ======== ======= =============== ================ ======== Year ended 31 March Grain Beef Unallo-cated Elimina-tions Total 2020 - Audited $000 $000 $000 $000 $000 -------------- ------------------ ------------------ ------------------ -------- Revenue External sales(2) 8,955 3,955 - - 12,910 Inter-segment sales(1) 453 - - (453) - -------------- ------------------ ------------------ ------------------ -------- 9,408 3,955 - (453) 12,910 -------------- ------------------ ------------------ ------------------ -------- Segment results - Operating loss (964) (1,452) (562) - (2,978) - Net interest expense (805) (155) (4) - (964) - Other gains and losses 883 95 - - 978 Loss before tax (886) (1,512) (566) - (2,964) Income tax 29 - - - (29) -------------- ------------------ ------------------ ------------------ -------- Loss for the year (915) (1,512) (566) - (2,993) ============== ================== ================== ================== ======== (1) Inter-segment sales are charged at prevailing market prices. (2) Revenue represents sales to external customers. Sales from the Grain and Beef divisions are principally for supply to the Mozambican market.
The segment items included within continuing operations in the consolidated income statement for the periods are as follows:
6 months ended 30 September 2020 - Unaudited Grain Beef Unallo-cated Elimina-tions Total $000 $000 $000 $000 $000 ------ ----- ------------- -------------- ------ Depreciation and amortisation 85 123 - - 208 ====== ===== ============= ============== ====== 6 months ended 30 September 2019 - Unaudited Grain Beef Unallo-cated Elimina-tions Total $000 $000 $000 $000 $000 ------ ----- ------------- -------------- ------ Depreciation and amortisation 173 239 8 - 420 ====== ===== ============= ============== ====== Year ended 31 March 2020 - Audited Grain Beef Unallo-cated Elimina-tions Total $000 $000 $000 $000 $000 ------ ----- ------------- -------------- ------ Depreciation and amortisation 167 452 - - 619 ====== ===== ============= ============== ====== 3. NET FINANCE COSTS 6 months ended 6 months ended Year 30 September 30 September ended 2020 2019 31 March Unaudited Unaudited 2020 Audited $000 $000 $000 --------------- --------------- ---------- Interest expense: Bank loans, overdrafts and finance leases 545 441 978 Interest income: Bank deposits - (2) (14) --------------- --------------- ---------- 545 439 964 =============== =============== ========== 4. LOSS per share The calculation of the basic and diluted loss per share is based on the following data: 6 months 6 months Year ended ended ended 30 September 30 September 31 March 2020 2019 2020 Unaudited Unaudited Audited US$000 US$000 US$000 ------------- ------------- ----------- Loss for the period/year for the purposes of basic and diluted earnings per share attributable to equity holders of the Company (997) (1,268) (2,993) ============= ============= =========== Weighted average number of Ordinary Shares for the purposes of basic and diluted lossper share 21,240,618 21,240,618 21,240,618 ============= ============= =========== Basic and diluted loss per share - US cents (4.69) (5.97) (14.09) ============= ============= ===========
The Company has issued options over ordinary shares which could potentially dilute basic loss per share in the future. There is no difference between basic loss per share and diluted loss per share as the potential ordinary shares are anti-dilutive.
5. Borrowings 30 September 2020 30 September 2019 31 March 2020 Unaudited Unaudited Audited $000 $000 $000 ------------------ ------------------ --------- Non-current Bank loans 1,766 2,674 1,661 Leases 336 - 383 ------------------ ------------------ --------- 2,102 2,674 2,044 Current Bank loans and finance leases 1,059 860 798 Bank overdrafts 4,002 2,867 2,541 5,061 3,727 3,339 ------------------ ------------------ --------- 7,163 6,401 5,383 ================== ================== =========
Grain division
At 30 September 2020, the principal outstanding balance on the term loan is 136 million Metical ($ 1.9m) and during the period MZN 24 million ($ 0.34 million) of the principal amount was repaid. The outstanding loan balance was MZN 160 million ($ 2.4 million) as 31 March 2020. The loan matures on 06 July 2023 with an interest rate of Bank's prime lending rate +0.25% and fixed monthly repayments of MZN 4 million ($ 56,000) plus interest charge.
MZN 30 million ($ 0.4 million) of the overdraft facilities amounting to MZN 90 Million ($ 1.3 million) as at 31 March 2020 was repaid during the period. The outstanding overdraft facility at 30 September 2020 is MZN 60 million ($ 0.84 million). This facility was converted into a term loan on 30 September 2020 maturing on 06 July 2023 with an interest rate of prime less than 1.75% per annum and fixed monthly repayment amounts of MZN 1.8 million ($25 199). The overdraft facility was fully drawn as at 31 March 2020.
Outstanding finance lease facility on vehicles was repaid MZN 1 544 419 ($ 22 241) during the period and the outstanding balances as at 30 September 2020 is MZN 9.8 million ($ 137 197). The finance lease arrangements mature in 2023 and attract an interest rate of 16.5% per annum.
The Group obtained additional working capital finance in the form of an overdraft facility in May 2020 and in September 2020 amounting to MZN 153 million ($ 2.3 million) and MZN 99.5 million ($1.4 million) respectively. The overdraft facility was used to purchase maize during the harvest season and will be repaid before 31 May 2021.
Beef division
The Finance lease on agricultural equipment outstanding balance is MTN 20.0m ($ 0.3m). During the period, MZN1.5 million ($ 21 601) of the principal balance was repaid. The finance lease is repayable over 5 years maturing in July 2023 and is secured on certain agricultural equipment.
The amount drawn down on the overdraft facility as at 30 September 2020 was MZN 1.2 million ($ 16 800). The overdraft facility was fully repaid after period end.
Reconciliation to cash flow statement
At 31 Cash flow Foreign At 30 September March Exchange 2020 2020 Non-current bank loans and finance leases 2,044 177 (119) 2,102 Current bank loans and finance leases 798 312 (51) 1,059 Overdrafts 2,541 1,639 (178) 4,002 5,383 2,128 (348) 7,163 ======= ========== ========== ================ 6. Share capital Authorised Allotted and fully paid Number Number US$000 ------------ ------------------------ ------- At 31 March 2020, 30 September 2020 and 2019 23,450,000 21,240,618 3,135 At 31 March 2020, 30 September 2020 and 2019 Deferred shares of 0.1p each 155,000,000 155,000,000 238 Total share capital 178,450,000 176,240,618 3,373 ============ ======================== =======
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. The deferred shares may be converted into ordinary shares by resolution of the Board.
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