For immediate release
30 July
2021
ANGLO AFRICAN
AGRICULTURE PLC
DIRECTORS’ REPORT
AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS
ENDED 30 APRIL 2021
Anglo African Agriculture plc (“AAA”
or the “Company”)
Half yearly report for the six months ended 30 April 2021.
The Chairman’s Report
We are reporting our results to the end of 30 April 2021. We have had sustained COVID-19
regulations now for over a year which has impacted our results and
operations. At the beginning of the worldwide COVID-19 lockdowns we
had no idea the complexity it would add to our businesses. We now
have a clearer picture. Our South African operations were hit with
reduced demand for products and the inability to see new clients as
clients remain in lock down and are working from home where
possible and most factories are out of bounds to non-staff. In
addition the product mix has changed with more lower margin
products being sold. To add to the situation our largest customer
sector, the fishing industry, has suffered a global reduction in
supply of fish used for tinning so their purchases have been
curtailed.
The exchange rate improved during the period but following the
riots that occurred to two of South Africa’s provinces during July
of this year the rate reversed all gains made during the first part
of the year and once again will have a negative impact on both
local margins and reported sales. Liquidity from our credit funders
is tight.
The Comarco group acquisition is still progressing, however
COVID-19 has made it very slow as staff can’t travel, and service
providers have been negatively affected. In addition the gas
project in Northern Mozambique has
been delayed due to an insurgency in the province where the project
is being developed. It is viewed as temporary but has had a
negative effect on the acquisition time as well as the operations
of the marine division of Comarco.
Dynamic Intertrade (“DI”)
For the period under review DI has been negatively impacted by
the economic slowdown caused by the ongoing COVID-19 pandemic. For
the 6-month period ending 30 April
2021, the group recorded a slight increase in revenue from
R15.82 million to R16.07 million representing a 1,5% increase. This
was the result of ongoing efforts to pass on various cost increases
to the Group’s customers. DI imports the majority of its inventory
and this reflected in the costs of revenue increasing due to the
worsening exchange rates, going from R11.1 million for 2020 to
R11.8 million for the current period. Operating expenses have been
contained to R4.5 million for the six months ended April 2021 from R5.2 million in 2020, however
finance charges have increased by 59% as DI made increasing use of
financing facilities.
The directors and management have also implemented several
initiatives to return the company to profitability and thus have a
clear strategy and are executing it. This allows us to be positive
about the future of DI.
DI has maintained its FSSC22000 certification which is important
when dealing with blue chip food manufacturing companies.
Dynamic Intertrade Agri (“DIA”) (46.8%
owned by AAA)
As mentioned previously, DIA is in the process of being disposed
of and as a result no equity accounting of its results have been
reported.
Group Results for the period
Although the loss for the period has increased from £210,067 to
£318,920 this is as a result of DI having a very disappointing
first six months emanating from decreased demand from our
customers. Transaction costs have decreased. The loan granted to
Touchwood Investments Limited generated an interest income of
£72,020 up from £65,499.
Outlook
The board announced in June 2019
the signed conditional share purchase agreements to acquire the
entire issued share capital of a number of companies within the
Comarco group of companies that are based in Kenya and engaged in the port and marine
logistics business (the "Proposed Acquisition"). The
consideration will be payable in AAA new ordinary shares. The
parties have signed the extension of the longstop date to
30 September 2021. Given that the
futures of both Comarco and AAA are closely related, it is the
companies’ shared belief that the current delay will not change the
long-term outcome and that the transaction will continue should the
longstop date be passed.
The Company and its advisors are currently working on various
initiatives (as announced previously) to enable the Proposed
Acquisition to take place with a substantially smaller equity fund
raise or part acquisition and will update the market in due course.
The Board continues to believe this Proposed Acquisition is worth
pursuing as it should create significant value for
shareholders.
The $1mn loan made to Comarco was
due for repayment in November 2020,which has now been extended to
30 September 2021 and after accrued
interest will be $1.3mn. The Board is
working to have the Proposed Acquisition completed before the
30th of September 2021 and
so it would become an intercompany loan at year end. However if the
Proposed Acquisition is not complete and payment cannot be made
then AAA has an option to acquire at nominal value the company that
owns the Touchwood Property which is valued at over $12mn which gives it more than adequate
security.
Although the current business has some challenges, the Comarco
Group is operating within budgeted expectations. I believe with the
acquisition of the Comarco Group and the potential of Dynamic, the
outlook for the Company and its shareholders is promising.
Responsibility Statement
We confirm that to the best of our knowledge:
-
the condensed set of financial statements has been prepared in
accordance with IAS 34 ‘Interim Financial Reporting’;
-
the interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year; and
-
the interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties’
transactions and changes therein).
Board changes
I would like to take this opportunity to announce that I will be
resigning from the board of directors after the release of these
results. Andrew Monk will be taking
the position of non-executive Chairman. The company is at the final
stages of the acquisition of the Comarco Group and as a result
there will be further board changes to reflect the changing focus
of the company. I am very excited for the future but feel that the
board skills should better reflect the direction that the company
is taking.
Cautionary statement
This Interim Management Report (IMR) has been prepared solely to
provide additional information to shareholders to assess the
Company’s strategies and the potential for those strategies to
succeed. The IMR should not be relied on by any other party or for
any other purpose.
David Lenigas
Non-Executive Chairman
28 July
2021
FOR FURTHER INFORMATION PLEASE
CONTACT:
Anglo African Agriculture plc
David Lenigas, Non-Executive
Chairman
Tel +44 (0) 20 7440 0640
Rob Scott, Executive Director
Tel +27 (0) 84 600 6001
VSA Capital Limited (Financial Adviser and
Broker)
Andrew Raca, Maciek
Szymanski
Tel +44 (0) 20 3005 5000
Forward looking
statement
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi?ed by their use of terms and phrases such as ‘‘believe’’,
‘‘could’’, “should” ‘‘envisage’’, ‘‘estimate’’, ‘‘intend’’,
‘‘may’’, ‘‘plan’’, ‘‘will’’ or the negative of those, variations or
comparable expressions, including references to assumptions. These
forward-looking statements are not based on historical facts but
rather on the Directors’ current expectations and assumptions
regarding the Company’s future growth, results of operations,
performance, future capital and other expenditures (including the
amount, nature and sources of funding thereof), competitive
advantages, business prospects and opportunities. Such forward
looking statements re?ect the Directors’ current beliefs and
assumptions and are based on information currently available to the
Directors. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking
statements including risks associated with vulnerability to general
economic and business conditions, competition, environmental and
other regulatory changes, actions by governmental authorities, the
availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which
are beyond the control of the Company. Although any forward-looking
statements contained in this announcement are based upon what the
Directors believe to be reasonable assumptions, the Company cannot
assure investors that actual results will be consistent with such
forward looking statements.
For further information please visit http://www.aaaplc.com.
Interim Condensed
Consolidated Statement of Comprehensive Income
|
|
6
months Ended |
Year
ended |
6
months Ended |
|
|
30
April |
31
October |
30
April |
|
Notes |
2021 |
2020 |
2020 |
|
|
£ |
£ |
£ |
|
|
|
|
|
Turnover |
|
788,096 |
1,773,710 |
792,743 |
Cost of
Sales |
|
(579,056) |
(1,350,201) |
(553,925) |
Gross
Profit |
|
209,040 |
423,509 |
238,818 |
|
|
|
|
|
Other
Income |
|
- |
3,000 |
- |
Share of
profit/loss of associate |
|
- |
- |
- |
Administrative expenses |
4 |
(515,478) |
(1,139,219) |
(396,285) |
Admission
expenses |
4 |
(8,350) |
(140,151) |
(89,476) |
Impairments |
|
- |
(226,644) |
- |
Operating loss |
|
(314,788) |
(1,079,505) |
(246,943) |
|
|
|
|
|
Finance
costs |
|
(76,152) |
(96,943) |
(28,623) |
Finance
income |
|
72,020 |
140,963 |
65,499 |
Loss
before taxation |
|
(318,920) |
(1,035,485) |
(210,067) |
Tax on
loss on ordinary activities |
|
- |
- |
- |
Loss
after taxation |
|
(318,920) |
(1,035,485) |
(210,067) |
|
|
|
|
|
Other
Comprehensive Income impairment of investment in associate |
|
- |
- |
- |
|
|
|
|
|
Total
comprehensive loss for the year from continuing operations |
|
(318,920) |
(1,035,485) |
(210,067) |
|
|
|
|
|
Loss
attributable to ordinary shareholders |
|
(318,920) |
(1,035,485) |
(210,067) |
|
|
|
|
|
Total
comprehensive loss for the period |
|
(318,920) |
(1,035,485) |
(210,067) |
|
|
|
|
|
Basic and
diluted earnings per share |
5 |
(1.45p) |
(5.16p) |
(1.08p) |
Interim Condensed
Consolidated Statement of Changes in Equity
|
Share
Capital |
Share
Premium |
Share
Based Payments Reserve |
Retained Earnings |
Total
Equity |
|
£ |
£ |
£ |
£ |
£ |
Balance at 31 October 2019 |
387,984 |
2,519,909 |
83,377 |
(2,796,409) |
194,861 |
Loss for
the period |
- |
- |
- |
(210,067) |
(210,067) |
Balance at 30 April 2020 |
387,984 |
2,519,909 |
83,377 |
(3,006,476) |
(15,206) |
Share
Issue |
51,338 |
51,338 |
- |
- |
102,676 |
Loss for
the year |
- |
- |
- |
(825,418) |
(825,418) |
Balance at 31 October 2020 |
439,322 |
2,571,247 |
83,377 |
(3,831,894) |
(737,948) |
Share
Issue |
- |
- |
- |
- |
- |
Loss for
the period |
- |
- |
- |
(318,920) |
(318,920) |
Balance at 30 April 2021 |
439,322 |
2,571,247 |
83,377 |
(4,150,814) |
(1,056,868) |
Share capital is the amount subscribed for shares at nominal
value.
Retained losses represent the cumulative loss of the Group
attributable to equity shareholders.
Share-based payments reserve relate to the charge for
share-based payments in accordance with IFRS 2.
Interim Condensed
Consolidated Statement of the Financial Position
|
|
6
months Ended |
Year
ended |
6
months Ended |
|
|
30
April |
31
October |
30
April |
|
Notes |
2021 |
2020 |
2020 |
|
|
£ |
£ |
£ |
Assets |
|
|
|
|
Non-Current Assets |
|
|
|
|
Goodwill
on Consolidation |
|
- |
- |
226,645 |
Property,
Plant and Equipment |
6 |
19,041 |
15,298 |
18,817 |
Right of
Use Asset |
11 |
395,608 |
409,424 |
- |
Loan
receivable |
7 |
1,017,964 |
994,729 |
962,216 |
Total Non-Current Assets |
|
1,432,613 |
1,419,451 |
1,207,678 |
|
|
|
|
|
Current assets |
|
|
|
|
Investment in Associate - (held for sale) |
9 |
6,154 |
6,154 |
6,154 |
Inventories |
|
74,585 |
181,708 |
71,904 |
Trade and
Other Receivables |
|
222,030 |
291,939 |
340,249 |
Cash and
Cash Equivalents |
|
111,332 |
45,251 |
36,228 |
Total Current Assets |
|
414,101 |
525,052 |
454,535 |
Total
Assets |
|
1,846,714 |
1,944,503 |
1,662,213 |
|
|
|
|
|
Equity
and Liabilities |
|
|
|
|
Share
Capital |
10 |
439,322 |
439,322 |
387,984 |
Share
Premium Account |
10 |
2,571,247 |
2,571,247 |
2,519,909 |
Share-Based Payments Reserve |
|
83,377 |
83,377 |
83,377 |
Retained
Earnings |
|
(4,150,814) |
(3,831,894) |
(3,006,476) |
Total
Equity |
|
(1,056,868) |
(737,948) |
(15,206) |
|
|
|
|
|
Non-Current Liabilities |
|
|
|
|
Non-Current Lease Liabilities |
11 |
322,114 |
344,025 |
- |
Borrowings |
|
532,980 |
428,719 |
328,355 |
Convertible Loan Notes |
|
853,000 |
250,000 |
250,000 |
Total
Non-Current Liabilities |
|
1,708,094 |
1,022,744 |
578,355 |
|
|
|
|
|
Current Liabilities |
|
|
|
|
Current
Lease Liabilities |
11 |
75,206 |
66,477 |
- |
Trade and
Other Payables |
|
1,120,282 |
1,593,230 |
1,099,064 |
Total
Current Liabilities |
|
1,195,488 |
1,659,707 |
1,099,064 |
Total
Equity and Liabilities |
|
1,846,714 |
1,944,503 |
1,662,213 |
Interim Condensed
Consolidated Statement of Cash Flows
|
|
6
months Ended |
Year
ended |
6
months Ended |
|
|
30
April |
31
October |
30
April |
|
Notes |
2021 |
2020 |
2020 |
|
|
£ |
£ |
£ |
Cash
flows from operating activities |
|
|
|
|
Operating
loss |
|
(314,788) |
(1,079,505) |
(246,943) |
Add:
Depreciation |
|
39,550 |
38,322 |
9,832 |
Add:
unrealised foreign exchange (gain) / loss |
|
(572,203) |
74,572 |
(22,154) |
Add:
Impairment of investment |
|
- |
226,644 |
- |
Finance
costs |
|
(76,152) |
(69,853) |
(28,623) |
Interest
received |
|
72,021 |
492 |
65,499 |
Changes in working capital |
|
|
|
|
Decrease
in inventories |
|
107,123 |
(119,133) |
(4,545) |
Decrease
/ (increase) in receivables |
|
69,909 |
102,640 |
82,526 |
(Decrease) / increase in payables |
|
513,052 |
719,314 |
276,449 |
Net
cash flow from operating activities |
|
(161,488) |
(106,507) |
132,041 |
|
|
|
|
|
Investing Activities |
|
|
|
|
Acquisition of property, plant and equipment |
|
(8,657) |
(3,423) |
(797) |
Foreign
exchange movements |
|
- |
2,190 |
- |
Loan
Receivable advanced |
|
- |
- |
(65,499) |
Net
cash flow from investing activities |
|
(8,657) |
(1,233) |
(66,296) |
|
|
|
|
|
Cash
flows from financing activities: |
|
|
|
|
Net
proceeds from issue of shares |
9 |
- |
102,676 |
- |
Convertible loan notes issued |
|
220,000 |
- |
- |
(Decrease) / Increase in borrowings |
|
104,261 |
38,687 |
(34,736) |
Foreign
exchange movements |
|
(38,608) |
26,941 |
- |
Capital
repayments of lease liability |
|
(50,390) |
(20,471) |
- |
Net
cash flow from financing activities |
|
235,263 |
147,833 |
(34,736) |
|
|
|
|
|
Net
cash flow for the period |
|
65,118 |
40,093 |
31,009 |
Opening
Cash and cash equivalents |
|
45,251 |
5,218 |
5,219 |
Foreign
exchange movements |
|
963 |
(60) |
- |
Closing Cash and cash equivalents |
|
111,332 |
45,251 |
36,228 |
Notes to the Interim Condensed
Consolidated Financial Statements
1.
General Information
Anglo African Agriculture plc is a company incorporated in the
United Kingdom. Details of the
registered office, the officers and advisers to the Company are
presented on the Directors and Advisers page at the end of this
report. The Company has a standard listing on the London Stock
Exchange main market. The information within these Interim
condensed consolidated financial statements and accompanying notes
must be read in conjunction with the Audited annual financial
statements that have been prepared for the year ended 31 October 2020.
2.
Basis of Preparation
These unaudited condensed consolidated interim financial
statements for the six months ended 30 April
2021 have been prepared in accordance with International
Accounting Standard No34, Interim Financial Reporting,
were approved by the board and authorised for issue on 27 July
2021.
The basis of preparation and accounting policies set out in the
Annual Report and Accounts for the year ended 31 October 2020 have been applied in the
preparation of these condensed consolidated interim financial
statements. These interim financial statements have been prepared
in accordance with the recognition and measurement principles of
the International Financial Reporting Standards (“IFRS”) as
endorsed by the EU that are expected to be applicable to the
consolidated financial statements for the year ending 31 October 2021 and on the basis of the
accounting policies expected to be used in those financial
statements.
The figures for the six months ended 30
April 2021 and 30 April 2020
are unaudited and do not constitute full accounts. The comparative
figures for the year ended 31 October
2020 are extracts from the 2020 audited accounts. The
independent auditor’s report on the 2020 accounts was not qualified
but included a material uncertainty in respect of going
concern.
3.
Segmental Reporting
In the opinion of the Directors, the Group has one class of
business, being the trading of agricultural materials. The Group’s
primary reporting format is determined by the geographical segment
according to the location of its establishments. There is currently
only one geographic reporting segment, which is South Africa. All revenues and costs are
derived from the single segment. Historically this segment has
experienced a high demand for its products in the months of July to
December with a lower-than-average demand in the months of January
to March.
4.
Company Result for the period
The Company has elected to take the exemption under section 408
of the Companies Act 2006 not to present the parent Company income
statement account.
The operating loss of the group for the six-month period ended
30 April 2021 was £314,788
(30 April 2020: £246,943, year ended
31 October 2020: loss of £1,079,505).
The operating loss incorporated the following main items:
|
|
6
months Ended |
Year
ended |
6
months Ended |
|
|
30
April |
31
October |
30
April |
|
|
2021 |
2020 |
2020 |
|
|
£ |
£ |
|
|
|
|
|
|
Accounting and administration fees |
|
14,786 |
14,373 |
10,160 |
Admission
expenses |
|
8,350 |
140,151 |
89,476 |
Brokership fees |
|
17,224 |
- |
18,021 |
Legal and
professional fees |
|
- |
- |
1,533 |
Registrar
fees |
|
2,509 |
- |
525 |
Personnel
expenses |
|
141,045 |
332,596 |
153,862 |
5.
Earnings per Share
Earnings per share data is based on the Group result for the six
months and the weighted average number of shares in issue.
Basic loss per share is calculated by dividing the loss
attributable to equity shareholders by the weighted average number
of ordinary shares in issue during the period:
|
6
months Ended |
Year
ended |
6
months Ended |
|
30
April |
31
October |
30
April |
|
2021 |
2020 |
2020 |
|
(Unaudited) |
(Audited) |
(Unaudited) |
|
£ |
£ |
£ |
Loss
after tax |
(318,920) |
(1,035,485) |
(210,067) |
Weighted
average number of ordinary shares in issue |
21,966,077 |
20,074,325 |
19,399,198 |
Basic and
diluted loss per share (pence) |
(1.45p) |
(5.16p) |
(1.08p) |
Basic and diluted earnings per share are the same, since where a
loss is incurred the effect of outstanding share options and
warrants is considered anti-dilutive and is ignored for the purpose
of the loss per share calculation. As at 30
April 2021 there were 13,024,622 (31
October 2020 – 12,421,622 and 30
April 2020 –
8,188,066) outstanding share warrants and 897,809 (31 October 2020 – 897,809 and 30 April 2020 –
1,047,809) outstanding options, both are potentially dilutive.
6.
Property, Plant and Equipment
Depreciation on property, plant and
equipment is calculated using the straight-line method to write off
their cost over their estimated useful lives at the following
annual rates:
Furniture, fixtures and
equipment |
17% |
Leasehold improvements |
33% |
Plant and equipment |
20% and 33% |
Useful lives and depreciation method are reviewed and adjusted
if appropriate, at the end of each reporting period.
An item of property, plant and equipment is derecognised upon
disposal or when no future economic benefits are expected to arise
from the continued use of the asset. Any gain or loss arising on
the disposal or retirement of an item of property, plant and
equipment is determined as the difference between the sales
proceeds and the carrying amount of the relevant asset and is
recognised in profit or loss in the year in which the asset is
derecognised.
Group |
Leasehold Property |
Furniture and fixtures |
Plant
and equipment |
Total |
|
£ |
£ |
£ |
£ |
Cost |
|
|
|
|
As at
31 October 2019 |
21,067 |
4,647 |
285,347 |
311,061 |
Exchange
difference |
(2
804) |
(867) |
(37
728) |
(41
399) |
Additions |
- |
108 |
689 |
797 |
Disposals |
- |
- |
- |
- |
As at
30 April 2020 |
18,263 |
3,888 |
248,308 |
270,459 |
Exchange
difference |
1,308 |
429 |
17,470 |
19,207 |
Additions |
- |
- |
2,734 |
2,734 |
Disposals |
- |
- |
- |
- |
As at
31 October 2020 |
19,571 |
4,317 |
268,512 |
292,400 |
Exchange
difference |
961 |
212 |
13,176 |
14,349 |
Additions |
- |
- |
8,657 |
8,657 |
Disposals |
- |
- |
- |
- |
As at
30 April 2021 |
20,532 |
4,529 |
290,345 |
315,406 |
|
|
|
|
|
Accumulated depreciation |
|
|
|
|
As at 31
October 2019 |
19,243 |
3,519 |
257,461 |
280,223 |
Charge
for the year |
776 |
300 |
8,757 |
9,833 |
Released
on disposal |
- |
- |
- |
- |
Exchange
difference |
(2
649) |
(
644) |
(35
121) |
(38
414) |
As at
30 April 2020 |
17,370 |
3,175 |
231,097 |
251,642 |
Charge
for the year |
441 |
108 |
6,511 |
7,060 |
Released
on disposal |
- |
- |
- |
- |
Exchange
difference |
1,274 |
391 |
16,735 |
18,400 |
As at
31 October 2020 |
19,085 |
3,674 |
254,343 |
277,102 |
Charge
for the year |
353 |
196 |
5,092 |
5,641 |
Released
on disposal |
- |
- |
- |
- |
Exchange
difference |
943 |
183 |
12,496 |
13,622 |
As at
30 April 2021 |
20,381 |
4,053 |
271,931 |
296,365 |
|
|
|
|
|
Net
Book Value |
|
|
|
|
As at 31
October 2019 |
486 |
643 |
14,169 |
15,298 |
As at 30
April 2020 |
151 |
476 |
18,414 |
19,041 |
As at 31
October 2020 |
486 |
643 |
14,169 |
15,298 |
As at
30 April 2021 |
151 |
476 |
18,414 |
19,041 |
The holding company held no tangible fixed assets at
30 April 2021, 31 October 2020 and 30
April 2020.
7. Loan
receivable
|
6
months Ended |
Year
ended |
6
months Ended |
|
30
April |
31
October |
30
April |
|
2021 |
2020 |
2020 |
|
(Unaudited) |
(Audited) |
(Unaudited) |
|
£ |
£ |
£ |
Loan to Touchwood
Investments Ltd |
1,017,964 |
994,729 |
962,216 |
|
|
|
|
Carrying value |
1,017,964 |
994,729 |
962,216 |
The loan was advanced to Touchwood Investments Ltd, a company
that is part of the Comarco Group, which operates a port in
Mombasa. This loan bears interest at 12% for the first 9 months,
where after the rate increased to 15%. The loan was initially for a
period 24 months and was initially repayable in full on
12 November 2020, however due to the
COVID-19 pandemic the repayment of the loan has been extended to
30 April 2021. The Company has
security to cover the loan, being an option to acquire, for a
nominal consideration, the shares of Touchwood Investments Ltd.
Touchwood’s major asset is the land at the Comarco port which was
valued at $12,000,000. The valuation
was done in June 2018 and despite the
possible effect of COVID-19 the directors are of the opinion that
there is sufficient equity to cover the loan.
8.
Subsidiaries
AAA holds investments in the following subsidiary undertakings
as at 30 April 2021, which
principally affected the losses and net assets of the group.
Name of companies |
Principal activities |
Country of incorporation and place of business |
Proportion (%) of equity interest 2020 |
Proportion (%) of equity interest 2019 |
Dynamic Intertrade (Pty)
Limited |
Value Added Agricultural
Products |
South Africa |
100% |
100% |
Subsidiaries are all entities over which the group has the power
to govern the financial and operating policies generally
accompanying a shareholding of more than one half of the voting
rights. Subsidiaries are consolidated, using the acquisition
method, from the date that control is gained and are stated at cost
less, where appropriate, provisions for impairment. Entities that
do not comply with this policy, but over which the group has a
shareholding of between 20 and 50 percent of the voting rights are
equity accounted from the date of acquisition and are stated at
cost and adjusted for the results of these entities for the
accounting period.
9.
Investment in Associate
|
6
months Ended |
Year
ended |
6
months Ended |
|
30
April |
31
October |
30
April |
|
2021 |
2020 |
2020 |
|
(Unaudited) |
(Audited) |
(Unaudited) |
|
£ |
£ |
£ |
Investment in Dynamic
Intertrade Agri (Pty) Ltd |
6,154 |
6,154 |
6,154 |
Equity accounted
profit/ (loss) for the period |
- |
- |
- |
Impairment of
investment |
- |
- |
- |
Carrying
value |
6,154 |
6,154 |
6,154 |
10. Share
Capital
Ordinary shares are classified as equity. Proceeds from issuance
of ordinary shares are classified as equity. Incremental costs
directly attributable to the issuance of new ordinary shares are
deducted against share capital.
Allotted, called up
and fully paid ordinary shares |
Number of |
|
|
of
2.0p (April 2019 - 0.1p) each |
shares |
Share Capital |
Share Premium |
|
|
£ |
£ |
Balance at 31 October 2019 |
19,399,188 |
387,984 |
2,519,909 |
Share
issue |
- |
- |
- |
Balance at 30 April 2020 |
19,399,188 |
387,984 |
2,519,909 |
Share
issue - 27 July 2020 |
2,566,889 |
51,338 |
51,338 |
Balance at 31 October 2020 |
21,966,077 |
439,322 |
2,571,247 |
Share
issue |
- |
- |
- |
Balance at 30 April 2021 |
21,966,077 |
439,322 |
2,571,247 |
11 Leases
Right of Use Asset
and Liability
On adoption of IFRS 16, the Group recognised lease liabilities
in relation to leases which had previously been classified as
'operating leases' under the principles of IAS 17 Leases. These
liabilities were measured at the present value of the remaining
lease payments, discounted using the lessee's incremental borrowing
rate for comparable assets as of 1 November
2019. The weighted average lessee's incremental borrowing
rate for comparable mortgage bonds applied to the lease liabilities
on 1 November 2019 was 8.5%, being
the discount rate on the Group's borrowings. In the Directors
opinion this is the discount rate that the Group would obtain
should it be purchasing land and buildings. Without further
security available the Group would be unlikely to secure funding
from other sources and therefore the Directors believe the 8.5%
rate applied is the most appropriate basis on which to base the
IFRS 16 calculations.
For leases previously classified as finance leases the entity
recognised the carrying amount of the lease asset and lease
liability immediately before transition as the carrying amount of
the right of use asset and the lease liability at the date of
initial application. The measurement principles of IFRS 16 are only
applied after that date.
|
|
6
months Ended |
Year
ended |
6
months Ended |
|
|
30
April |
31
October |
30
April |
|
|
2021 |
2020 |
2020 |
|
|
£ |
£ |
£ |
Lease
liability recognised in the |
|
|
|
|
statement of financial position at 31 October 2020 |
410,502 |
- |
- |
Foreign
exchange movements |
|
20,147 |
- |
- |
Operating
lease commitments |
|
|
|
|
disclosed
as at 31 October 2019 |
|
- |
- |
34,366 |
Discounted using the incremental |
|
|
|
|
borrowing
rate at date of initial application |
|
17,062 |
- |
- |
Additions
to leases during the year |
|
- |
430,973 |
- |
Lease
payments |
|
(50,390) |
(20,471) |
- |
Lease
liability recognised in the |
|
|
|
|
statement of financial position |
|
397,321 |
410,502 |
- |
|
|
|
|
|
Of
which: |
|
|
|
|
Current
lease liabilities |
|
75,206 |
66,477 |
- |
Non-current lease liabilities |
|
322,114 |
344,025 |
- |
|
|
397,320 |
410,502 |
- |
Right-of use assets were measured at the amount equal to the
lease liability, adjusted by the amount of any prepaid or accrued
lease payments relating to that lease recognised in the statement
of financial position as at 31 October
2020. There were no onerous lease contracts that would have
required an adjustment to the right-of-use assets at the date of
initial application. The recognised right of-use assets relate to
the following types of assets:
|
|
6
months Ended |
Year
ended |
6
months Ended |
|
|
30
April |
31
October |
30
April |
|
|
2021 |
2020 |
2020 |
|
|
£ |
£ |
£ |
Properties |
|
|
|
|
Value of Right of Use Asset at 1 November 2020 / 2019 |
409,424 |
- |
|
Right of
Use Asset capitalised |
|
- |
430,973 |
|
Depreciation charged for the period |
|
(33,909) |
(21,549) |
|
Foreign
exchange movements |
|
20,093 |
- |
|
|
|
395,608 |
409,424 |
- |
12 Events
Subsequent to 30 April 2020
There were no material events
subsequent to April 2021.
Directors and
Advisers
Directors: |
David
Lenigas
Robert Scott
Andrew Monk
Matthew Bonner |
Company
Number: |
07913053 |
Registered
Address: |
New Liverpool
House
15-17 Eldon Street
London
EC2M 7LD |
Head
Office: |
New Liverpool
House
15-17 Eldon House
London
EC2M 7LD |
Financial Adviser
& Broker: |
VSA Capital
Limited
New Liverpool House
15-17 Eldon Street
London
EC2M 7LD |
Auditors: |
Jeffreys Henry
LLP
Finsgate
5-7 Cranwood Street
London
EC1V 9EE |
Solicitors to the
Company: |
Keystone Law
48 Chancery Lane
London
WC2A 1JF |
Registrars: |
Neville Registrars
Limited
Neville House
18 Laurel Lane
Halesowen
West Midlands
B63 3DA |