Agriterra Ld Share Discussion Threads

[swooped] 04/11/2013 12:56

[...]

Agriterra (LON:AGTA) racked up record revenues last year and sees strong growth potential in the current financial year and beyond.

Though grain processing, brings in the bulk of the company's revenue, the group highlighted the market opportunities for its beef and cocoa businesses.

"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," predicted Phil Edmonds, Agriterra's chairman.

Revenue in the year to 31 May, 2013, shot up to US$21.21mln from US$13.83mln the year before.

Grain processing revenues clocked in at a record US$15.84mln; beef ground out US$2.23mln of revenues while the bean counters said cocoa contributed US$3.14mln of sales, which was below expectations, largely as a result of a poor crop in the early rainy season.

At the maize operations in Mozambique, a poor harvest affected the 2013-14 buying season, but increased demand and a more favourable pricing environment is expected as a result.

The company is still very much in the growth phase and in common with a lot of early stage growth companies, it is currently making a loss. Loss before tax was US$7.92mln, versus a loss of US$6.92mln the year before.

The market was unfazed by the loss, as shares edged up to 2.31p from 2.21p overnight in the first hour of trading, before ebbing to 2.22p.

Net asset value shot up to US$60.0mln from US$41.4mln the year before.

"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," Edmonds said.

"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)," Edmonds noted.

The company ended the reporting period with cash and cash equivalents of US$18.75mln, up from US$3.55mln a year earlier.

[swooped] 04/11/2013 11:44

certainly lots of buys coming in today

[the count of monte_cristo] 04/11/2013 11:29

I think we may see a further rise later this week if the presentation goes well, AGTA spreading the word about the company which seems to be below the investor radar currently.

[cascudi] 04/11/2013 10:55

the company imo is doing well. good to see such increase in revenue.
operating profit in not there yet..but increase in assett is showing that the company is focusing to generate that in the future
Food imo is the current/next future "gold"...
Lots of big invenstor are investing in food industry because in the next future there will high demand that production will found difficult to satisfy.
long term investement imo

[old tyke] 04/11/2013 10:04

Maybe hoping for a resolution of the outstanding compensation claim; or a question for Thursday perhaps?

[bsharman3] 04/11/2013 10:03

Hi,

Why why did it take so long to get the accounts out??

[amt] 04/11/2013 09:58

OK THANKS 4STA

[4sta] 04/11/2013 09:57

amt - what you're looking for is in the results under notes at the end of point 4........continuing to negotiate.

[amt] 04/11/2013 09:14

Thanks Count

[aim_trader] 04/11/2013 09:03

This Thursday Euan Kay will be presenting to investors at The Chesterfield Hotel, Mayfair at 6pm. Presentations will be followed by a complimentary wine & canape reception.

REGISTER HERE: tinyurl.com/q5dtm6v

[swooped] 04/11/2013 09:03

LONDON--Agriterra Ltd (AGTA.LN), an AIM-listed pan-African agricultural company, Monday posted a widened pretax loss during the year-end, but said it is well positioned for growth.
MAIN FACTS:
-The Company recorded pretax loss of $7.9 million during the year-ended May 31, compared with $6.9 million a year earlier.
-Revenue $21.2 million versus $13.8 million.
-Net profit attributable to owners of the parent $20.9 million versus loss $6.2 million.
-Operating loss $7.3 million versus $6.8 million.
-Basic and diluted loss per share from continuing operations 0.75 cents versus 0.79 cents.
-With a strong cash position to support development and multiple revenue streams, Agriterra is positioned well for growth.
-Agriterra shares at 0900 GMT traded up 4.1%, at 2 pence, valuing the company at GBP23.5 million.

-Write to Razak Musah Baba at [e-mail]; Twitter: @Raztweet

Order free Annual Report for Agriterra Ltd.
Visit hxxp://djnweurope.ar.wilink.com/?ticker=GB00B05MGT12 or call [phone]
Subscribe to WSJ:

[the count of monte_cristo] 04/11/2013 09:01

amt - Nothing in the finals that I can see, so I guess it still stands as the above answer.

Perhaps a question you could ask them during this Thursday presentation in London? If you cannot attend then a question which you could ask St Brides to ask on your behalf.

[amt] 04/11/2013 08:50

Yes Count you posted -


9) How is the pursuing of the payment of compensation equating to approximately US$17.8mrecompense for the work undertaken and investment made by the Group on the Block Ba oil project in South Sudan, progressing?
a. The Board continue to actively pursue the compensation payment however they have not received an amended definitive date for issuance. Further announcements will be made in this regard when appropriate.

Is it mentioned in the finals, I didn't see it, maybe I missed it.

[the count of monte_cristo] 04/11/2013 08:43

amt - read back through the posts and you will get your answer.

[amt] 04/11/2013 08:32

Acknowledgment of Agriterra's entitlement to receive a compensation payment of GBP11,372,682 as partial recompense for work undertaken and investment on Southern Sudanese oil asset


From last year, does anyone know what happened to this ?

[swooped] 04/11/2013 08:13

Personally I see the results for just what they are, the position at a point in time and at the time these were put to paper the company is doing remarkably well, I'm very impressed with the numbers and I very much like this line:

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)

With so many other potential cash generative scenarios to play out, at some point this is going to be rerated in a strong way. I was also interesting to note the absence of any regard to politic troubles, one wonders if this is intentional, although looking at the results any trouble reported in the region certainly doesn't seem to have affected profits!

All very good.

[the count of monte_cristo] 04/11/2013 07:53

Excatly, plus the highly likely potential for more cash to come in from tax rebates, successful commerical oil find and the South Sudan.

Still just the beginning of a fast developing Agri story. We have to expect poor harvests and set backs, but with the cash pile it gives the company flexiblity with the grain business which previously it did not really have due to being constrained by a lack of finances. Also have to remember this report is up to the end of May 2013.

As you say old tyke, cash position is very strong and Nav continues to increase rapidily.

[amt] 04/11/2013 07:52

Rather disappointnig, second half slower than first and 27m of cash used since interims. We knew about the cash position anyway but what happened to the 17.8m compensation claim.

[old tyke] 04/11/2013 07:48

whilst the harvest news is unwelcome, the key numbers are the increase in NAV, and cash of $18m vs mkt cap of £23.5m!

[the count of monte_cristo] 04/11/2013 07:29

Hi Multi - I think a link to the results would do rather than copying in the entire report. Makes for a long scroll down!

4 November 2013 - Preliminary Results

[multibagger] 04/11/2013 07:17

Good results...not like for like given one off revenues...

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: [phone]
9200
David Foreman Cantor Fitzgerald Europe Tel: [phone]
7684
Rick Thompson Cantor Fitzgerald Europe Tel: [phone]
7684
Andy Cuthill Peat & Co. Tel: [phone]
1722
John Beaumont Peat & Co. Tel: [phone]
1723
Susie Geliher St Brides Media & Finance Tel: [phone]
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

[amt] 01/11/2013 15:39

more unrest

[baa] 01/11/2013 13:35

FT reporting on continuing unrest im Mozambique today - might be worth asking about that & whether any of the reported "skirmishes" are close to AGTA facilities or are having any input on trading.

[the count of monte_cristo] 01/11/2013 12:32

Be good if you could go swooped as you can then report back to us lot on this bb:) Also interesting to finally see some faces for the previously faceless management team we have at AGTA.

If you do go, and do speak to anyone, worth making a few points about lack of presentations, videos and AGTA selling the investment case for the company so really good to see them start to be more proactive in this area.

Hopefully we will shortly hear about the expansion of the beef business, and whether the 3rd or even 4th retail outlets have been opened. Since the 28th June we have not heard anything.

28 June 2013 - ....The Company's third beef retail outlet targeted to open in Maputo is likely to be delayed by two to three weeks.

[swooped] 01/11/2013 11:34

I may attend it's certainly in my interest too. I've been to one of the events a few years ago to see gkp, actually not bad, quite a small venue but you certainly get the chance to interact with the Board, ask questions and get a feel for how much is genuine and how much is bull.