TIDMAGTA
RNS Number : 7813V
Agriterra Ltd
15 December 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')
HY-2022 Interim Results
Agriterra Limited, the AIM listed African agricultural company,
announces its unaudited results for the six months ended 30
September 2021.
Chair's Statement
I am pleased to provide an update on our performance in the
first half of the 2022 financial year ('HY-2022'). These results
will be made available on the Company's website.
Operational update
Grain division
The Grain division has become more efficient over these last 6
months: the mill upgrades have improved the overall extraction rate
from 75% in FY21 to 79%; and cheaper maize purchases have improved
the overall gross margin to 26.7% vs the 15.41% achieved in prior
period. These efficiencies have enabled the division to improve its
overall performance per ton sold. However, volumes sold declined to
7,981 tons (HY-2021: 10,103 tonnes) which was mitigated by
favourable average selling price of MZN29,977 per ton (HY-2021:
28,792).
The drop in sales is mainly due to the excessive volume of maize
being imported from Malawi and Zambia, where favourable climatic
conditions and government subsidised fertiliser schemes have
resulted in exceptionally high maize production. The supply is far
greater than the local demand and as such, the grain is entering
Mozambique and eventually making its way south to Chimoio, Beira
and Maputo, forcing our meal to compete with the cheaper grain
available in the markets.
A total of $6.1m was secured, contributing towards the purchase
of 30,000 tons of maize needed for this season. The business has in
silo a total stock of 18,942 tons of maize (HY-2021:11,222 tons),
which will see the Company through to June 2022, when the new crop
will be available to purchase.
Revenue for the 6 months decreased to $3.6m (HY-2021: $4.1m).
Operating costs increased by $0.2m to 0.7m resulting from
appointment of senior management and bush buying administrative and
transport expenses. EBITDA increased to $ 0.2m (HY-2021: EBITDA of
$ 0.1m) due to extraction efficiencies and reduced maize cost as
compared to the prior year. However, finance costs increased to
$0.7m (HY-2021: $0.4m) and the assets revaluation led to an
increase in depreciation cost to $0.25m from $0,09m in HY-2021
resulting in a loss after tax of $0.9m (HY-2021: loss $ 0.4m).
In response to the depressed sales and excessive maize
availability and to avoid a price war that would negatively impact
on the potential margins to be earned from the 18,942 tons of maize
in stock, we have taken the following steps:
-- Approached smaller wholesalers, offering them volume-based
deals, subject to them increasing their average monthly sales to an
agreed target over the next 6 months.
-- Implementing a DECA meal marketing and advertising campaign
from December to March in the cities of Beira, Tete and Chimoio.
This will involve social media, radio adverts, music, jingles,
competitions, events and promotions.
-- Improving the distribution network for our meal, by selling
and delivering directly to the small to medium retailers.
-- Improving out potential gross margins, by driving the 1kg
DECA meal package sales along with the larger bags.
-- Protecting our maize to guarantee that we are ready to supply
meal to the market in the first half of 2022 (before harvest and a
time when there is a shortage of maize in the market).
Beef division
The Beef division suffered a loss in business between March and
April 2021, following the suspension of all oil and gas related
activities by Total Energy and Exon, response to the terrorist
attacks in the north. The division has focussed on identifying new
customers, improving operating margins and cutting overheads. With
a new feedlot and sales teams, these initiatives are delivering
improvements.
The revised approach has improved our Gross Margin to 25%
(HY-2021: 9.62%) resulting from higher average selling price of MZN
254 per kg (HY-2021: MZN 240) and increased average dress out rate
of 52%. The latter is a result of larger carcasses due to the
improved feed lot performance, better cattle buying practises and
training of small farmers (average quarter weight is now 50kg vs
the historical average weight of 40kg). This in turn has allowed
the business to improve quality and increase unit prices.
Company overheads have been reducing at an average of $0.1m per
month, as we offered voluntary retrenchments and agreed not to
replace staff that either resigned or whose contract came to an
end. We still have the cost of the 3 farms that remain in care and
maintenance and which are up for sale, but these have been slow to
move, given the economic and travel challenges experienced with the
COVID-19 pandemic.
Despite these challenges, the team have begun to recover those
lost sales (more carcass sales in Maputo and Pemba) and our revenue
for the 6 months is now $1.5m (HY-2021: $1.5m). However EBITDA
improved to a loss of $0.08m (HY-2021: loss $0.1m). Finance costs
decreased to $29,000 (HY-2021: $74,000) and the loss after tax
decreased to $0.3m (HY-2021: loss $0.4 m).
There has been a monthly improvement in sales and revenue, and
to increase the profitability of the beef division, the management
team has begun to implement the following strategies:
-- Offering of a new economy cut stewing meat package for
retailers to purchase and sell in smaller portions in the informal
markets. This is proving to be very popular and the sales are
increasing rapidly each month and indirectly driving up the value
of the overall carcasses
-- Diversify into the supply of goat meat. The first goat
slaughter of 17 animals was received well. We sold most of it in
our outlet in Chimoio and as carcasses in Beira. This initiative
offers a high Gross Margin of 37% and we have been increasing the
monthly slaughters, with a goal of achieving 300 per month.
-- Diversifying the farm operations to include the
production/purchasing of sugar beans, which will be packed into
500g and 1kg packs and sold along side the meal. We currently have
100 tons in stock and expect to start sales in January 2022.
-- Pushing more carcass sales to supermarkets in northern
Mozambique, where the imported South African meat cannot be
supplied at competitive rates.
Snax Division
The Snax division has now been operating for 6 months and we
have a better understanding of the market dynamics. It has become
clear that our main consumers are school children, who have until
recently, been studying from home, following a national lock down
response to COVID-19. These same consumers and their parents have
not been exposed to the products and as such have very limited
knowledge of the quality, range or pricing. The sales have been
lower than expected, but the Gross Margin % is currently at 31% and
the overall profits are within the target for this period.
The focus now is to get the brand known in the market and to
turn it into a household name, using the following activations from
December 2021:
-- Introduce a catchy Snax jingle that will be played on the radio
-- Establish an Instagram, Facebook and web page running,
engaging the younger consumers and getting them involved
-- Drive competitions and events, to allow consumers the chance to taste the product
-- Introduce new flavours and products, in line with client preferences
Group Results
Group revenue for the half-year ended 30 September 2021
decreased by 11% to $ 4.9m (H1-2021: $5.5m). As a result of cost
management in all divisions, and despite the difficulties in the
Beef division, the Group's gross profit is double that of the same
period last year (HY-2022: $1.3m vs HY-2021: $0.6m), while the
trading operations showed an increase in the operating loss before
interest to $0.51m (HY-2021: loss $0.45m). The containment of the
direct cost of production due to aggressive cost monitoring and
control measures implemented by the management team during the
period. Operating expenses increased to $1.9m (HY-2021: $1.2m due
to revaluation of land and building which increased depreciation,
appointment of senior management and restructuring of farms which
increased salaries and maize bush buying strategy which increased
other operating expenses by $0.2m, $0.2m and $0.3 million
respectively. Finance costs increased by 40% to $0.7 million
(H1-2021: $0.5 million). The Group loss after tax increased to $1.2
million (H1-2021: loss $0.997 million). During the period,
inventories have increased by $1.6m to $4.3m). Net debt at 30
September 2021 was $10.7m (31 March 2021: $6.2m). Increase in net
debt resulted from procurement of grain stock using the overdraft
facility, which will provide sufficient grain to mill in the second
half of the year.
COVID-19 and security in the northern region
COVID-19 continues to have a significant negative impact in
Mozambique, both economically and socially. The risk of the virus
escalated in June/July when many of the team tested positive.
Fortunately, many staff already had their first round of
vaccinations, but this had a negative impact the Group's operation.
Currently the incidence of COVID-19 is very low but appears to be
heading towards a 4(th) wave. The recent closure to travel to and
from Mozambique by the UK and the EU due to the new Omicron variant
has had a significant impact on the tourism sector, which has
historically been an important sector, contributing to sales,
especially during the festive season.
The security situation in the Northern Province of Cabo Delgado
appears to be under control, as troops from Rwanda, South Africa
and Botswana continue to assist in removing the insurgents from the
major towns and villages. Total and Exxon have indicated that they
will consider resuming activities in Q2-2022 if the security
situation has improved and stabilized.
Outlook for H2-2022
The business is entering H2-2022 with over 18,000 tons of grain
in silo and the prospect of a higher demand for meal and beef in Q4
of FY-2022. We believe that the initiatives of marketing, the new
products launches and the reopening of the Oil & Gas sector in
the north will contribute towards improving our overall performance
in the second half of the financial year. Additionally, for the
FY-23 period, we are working on a financing program to rebuild the
beef stocks and to improve our overall distribution of
products.
CSO Havers
Chair
15 December 2021
For further information please VISIT www.agriterra-ltd.com or
contact:
Agriterra Limited Strand Hanson Limited
Caroline Havers caroline@agriterra-ltd.com Ritchie Balmer / Tel: +44 (0) 207
James Spinney / Rob 409 3494
Patrick
--------------------------- ---------------------- -----------------
Consolidated income statement
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Audited
Note $000 $000 $000
CONTINUING OPERATIONS
Revenue 2 4,869 5,525 14,250
Cost of sales (3,512) (4,740) (11,581)
(Decrease)/Increase in fair value of
biological assets (32) (104) (615)
Gross profit 1,325 681 2,054
Operating expenses (1,900) (1,166) (3,156)
Other income 57 7 78
Profit on disposal of property, plant
and equipment 8 26 37
--------------
Operating loss (510) (452) (987)
Net finance costs 3 (715) (545) (1,207)
Share of profit in equity-accounted
investees, net of tax 47 - -
--------------
Loss before taxation (1,178) (997) (2,194)
Taxation - - -
-------------- -------------- ----------
Loss for the period 2 (1,178) (997) (2,194)
Loss for the period attributable to
owners of the Company (1,178) (997) (2,194)
============== ============== ==========
LOSS PER SHARE
Basic and diluted loss per share - US
Cents 4 (5.54) (4.69) (10.3)
============== ============== ==========
Consolidated Statement of comprehensive income
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Audited
$000 $000 $000
Loss for the period (1,178) (997) (2,194)
Items that may be reclassified subsequently
to profit or loss:
Foreign exchange translation differences 711 (121) 1,433
Items that will not be reclassified
to profit or loss
Revaluation of Property, plant and
equipment - 12,563
Other comprehensive income/(loss) for
the period 711 (121) 13,996
-------------- -------------- ----------
Total comprehensive (loss)/income for
the period attributable to owners of
the Company (467) (1,118) 11,802
============== ============== ==========
Consolidated statement of financial position
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Audited
(Restated)
Note $000 $000 $000
Non-current assets
Property, plant and equipment 25,464 5,526 23,974
Intangible assets 40 75 59
Equity-accounted investees 47 - 1
25,551 5,601 24,034
------------- ------------- ----------
Current assets
Biological assets 436 561 451
Inventories 4,380 2,843 933
Trade and other receivables 1,595 1,586 1,752
Cash and cash equivalents 283 411 231
6,694 5,401 3,367
------------- ------------- ----------
Total assets 32,245 11,002 27,401
------------- ------------- ----------
Current liabilities
Borrowings 5 8,575 5,061 4,016
Trade and other payables 2,330 3,741 2,046
10,905 8,802 6,062
------------- ------------- ----------
Net current liabilities (4,211) (3,401) (2,695)
------------- ------------- ----------
Non-current liabilities
Borrowings 5 2,418 2,102 2,409
Deferred tax liability 6,371 - 5,912
------------- ------------- ----------
8,789 2,102 8,321
------------- ------------- ----------
Total liabilities 19,694 10,904 14,383
------------- ------------- ----------
Net assets 12,551 98 13,018
============= ============= ==========
Share capital 6 3,373 3,373 3,373
Share premium 151,442 151,442 151,442
Share based payments reserve 87 87 87
Revaluation reserve 12,563 - 12,563
Translation reserve (16,229) (18,494) (16,940)
Accumulated losses (138,685) (136,310) (137,507)
------------- ------------- ----------
Equity attributable to equity holders of the parent 12,551 98 13,018
============= ============= ==========
The unaudited condensed consolidated financial statements of
Agriterra Limited for the six months ended 30 September 2021 were
approved by the Board of Directors and authorised for issue on 15
December 2021.
Signed on behalf of the Board of Directors:
CSO Havers
Chair
Consolidated statement of changes in equity
Share
based
Share Share payment Translation Revaluation Accumulated Total
capital premium reserve reserve reserve losses Equity
Note US$000 US$000 US$000 US$000 US$000 US$000 US$000
-------- -------- -------- ------------ ------------ ------------ --------
Balance at 1
April 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
restated - - - (121) - - (121)
-------- -------- -------- ------------ ------------ ------------ --------
Total comprehensive
loss for the period - - - (121) - (997) (1,118)
Transactions
with owners
Share based - - - - - - -
payments
------------
Total transactions - - - - - - -
with owners for the
period
------------
Balance at 30
September 2020 3,373 151,442 87 (18,494) - (136,310) 98
Loss for the
period - - - - - (1,197) (1,197)
Other
comprehensive
income:
Revaluation of
land and buildings - - - - 12,563 - 12,563
Exchange translation
gain on foreign
operations - - - 1,554 - - 1,554
------------
Total comprehensive
income for the
period - - - 1,554 12,563 (1,197) 12,920
Transactions
with owners
Share based
payments - - - - - - -
-------- -------- -------- ------------ ------------ ------------ --------
Total transactions
with owners for the
period - - - - - - -
------------
Balance at 31 March
2021 3,373 151,442 87 (16,940) 12,563 (137,507) 13,018
Loss for the period - - - - - (1,178) (1,178)
Other comprehensive
income:
Exchange translation
gain on foreign
operations - - - 711 - - 711
------------
Total comprehensive
loss for the period - - - 711 - (1,178) (467)
Transactions with
owners
Share based payments - - - - - - -
------------
Total transactions
with owners for the
period - - - - - - -
------------
Balance at 30
September 2021 3,373 151,442 87 (16,229) 12,563 (138,685) 12,551
======== ======== ======== ============ ============ ============ ========
Consolidated cash flow statement
Year
6 months ended 6 months ended ended
30 September 30 September 31 March
2021 2020 2021
Note Unaudited Unaudited Audited
$000 $000 $000
Loss before tax for the period (1,178) (997) (2,194)
Adjustments for:
Amortisation and depreciation 2 425 208 574
Profit on disposal of property, plant and equipment (48) (26) (47)
Foreign exchange loss 219 37 1,411
Decrease / (increase) in value of biological assets 32 (104) (401)
Net decrease in biological assets 15 172 615
Net Finance costs 715 545 1,207
Operating cash flows before movements in working capital 180 (165) 1,165
Increase in inventories (3,447) (2,018) (108)
Decrease / (increase) in trade and other receivables 157 (337) (503)
Increase / (decrease) in trade and other payables 284 426 (1,269)
Cash used in operating activities (2,826) (2,094) (715)
Corporation tax paid - - -
Interest received 3 - - -
Net cash used in operating activities (2,826) (2,094) (715)
--------------- --------------- ----------
Cash flows from investing activities
Proceeds from disposal of property, plant and equipment,
net of expenses incurred 48 26 47
Acquisition of property, plant and equipment (368) (79) (77)
Acquisition of intangible assets (3) - (9)
Net cash used in investing activities (323) (53) (39)
--------------- --------------- ----------
Cash flow from financing activities
Finance costs 3 (715) (545) (1,207)
Net drawdown of overdrafts 5 4,087 1,639 1,170
Net (repayment) / drawdown of loans and finance leases 5 (171) 489 (12)
Net cash generated from/(used in) financing activities 3,201 1,583 (49)
--------------- --------------- ----------
Net increase/(decrease) in cash and cash equivalents 52 (564) (803)
Effect of exchange rates on cash and cash equivalents - (59) -
--------------- --------------- ----------
Cash and cash equivalents at beginning of period 231 1,034 1,034
--------------- --------------- ----------
Cash and cash equivalents at end of period 283 411 231
=============== =============== ==========
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 2021 (the 'H1-2022 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'). The
accounting policies adopted by the Group are set out in the annual
report for the year ended 31 March 2021 (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.
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 2021 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 H1-2022 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 H1-2022 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 Beef and Snax,
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 2021 - Grain Beef Snax Unallo-cated Elimina-tions Total
Unaudited
$000 $000 $000 $000 $000 $000
------ ------ ----- ------------- -------------- --------
Revenue
External sales(2) 3,361 1,508 - - - 4,869
Inter-segment sales(1) 247 - - - (247) -
------ ------ ----- ------------- -------------- --------
3,608 1,508 - - (247) 4,869
------ ------ ----- ------------- -------------- --------
Segment results
- Operating loss (121) (276) - (188) - (585)
- Interest expense (686) (29) - - - (715)
- Share of profit in equity accounted
investees - - 47 - - 47
- Other gains and losses 54 21 - - 75
-----
Loss before tax (753) (284) 47 (188) - (1,178)
Income tax - - - - - -
------ ------ ----- ------------- -------------- --------
Loss for the period (753) (284) 47 (188) - (1,178)
====== ====== ===== ============= ============== ========
6 months ended 30 September 2020 - Unaudited Grain Beef Snax Unallo-cated Elimina-tions Total
$000 $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)
====== ====== ===== ============= ============== ======
Year ended 31 March 2021 - Audited Grain Beef Snax(1) Unallo-cated Elimina-tions Total
US$000 US$000 US$000 US$000 US$000 US$000
-------- -------- -------- ------------- -------------- --------
Revenue
External sales(2) 11,061 3,189 - - - 14,250
Inter-segment sales(1) 309 - - - (309) -
-------- -------- -------- ------------- -------------- --------
11,370 3,189 - - (309) 14,250
-------- -------- -------- ------------- -------------- --------
Segment results
- Operating profit / (loss) 275 (970) (0) (389) - (1,084)
- Interest expense (1,071) (136) - - - (1,207)
- Other gains and losses 54 43 - - - 97
-------- -------- -------- ------------- -------------- --------
Loss before tax (742) (1,063) (0) (389) - (2,194)
-------- -------- -------- ------------- -------------- --------
Income tax - - - - - -
-------- -------- -------- ------------- -------------- --------
Loss after tax (742) (1,063) (0) (389) - (2,194)
======== ======== ======== ============= ============== ========
The segment items included within continuing operations in the
consolidated income statement for the periods are as follows:
6 months ended 30 September 2021 - Unaudited Grain Beef Unallo-cated Elimina-tions Total
$000 $000 $000 $000 $000
------ ----- ------------- -------------- ------
Depreciation and amortisation 247 178 - - 425
====== ===== ============= ============== ======
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
====== ===== ============= ============== ======
Year ended 31 March 2021 - Audited Grain Beef Unallo-cated Elimina-tions Total
$000 $000 $000 $000 $000
------ ----- ------------- -------------- ------
Depreciation and amortisation 181 380 13 - 574
====== ===== ============= ============== ======
3. NET FINANCE COSTS
6 months ended 6 months ended Year
30 September 30 September ended
2021 2020 31 March
Unaudited Unaudited 2021
Audited
$000 $000 $000
--------------- --------------- ----------
Interest expense:
Bank loans, overdrafts and finance leases 715 545 1,207
Interest income:
Bank deposits - - -
--------------- --------------- ----------
715 545 1,207
=============== =============== ==========
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
2021 2020 2021
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 (1,178) (997) (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 (5,54) (4.69) (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 2021 30 September 2020 31 March
2021
Unaudited Unaudited Audited
$000 $000 $000
------------------ ------------------ ---------
Non-current
Bank loans 2,148 1,766 2,107
Leases 270 336 302
------------------ ------------------ ---------
2,418 2,102 2,409
Current
Bank loans and finance leases 393 1,059 365
Bank overdrafts 8,182 4,002 3,651
8,575 5,061 4,016
------------------ ------------------ ---------
10,993 7,163 6,425
================== ================== =========
Grain division
At 30 September 2021, the principal outstanding balance on the
term loan is 155 million Metical ($ 2.4m) and during the period MZN
7.8 million ($ 0.12 million) of the principal amount was repaid.
The outstanding loan balance was MZN 162 million ($ 2.4 million) at
31 March 2021. The loan matures on 06 July 2023 with an interest
rate of Bank's prime lending rate +0.25%. The Grain division was
granted a reduced capital repayment of $ 22 600 during the period
with the objective of raising working capital to purchase grain
during the harvest period. The maturity date of the loan was not
changed.
MZN 1,2 million ($ 17 653) of the MZN 9 million ($ 130 609) of
the outstanding motor vehicle finance lease was repaid during the
period and the outstanding balances as at 30 September 2021 is MZN
7.8 million ($ 122 200). 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 during the period amounting to MZN
271 million ($ 4.1 million). The overdraft facility is secured by $
6.1 million bank guarantee from Magister and MZN 90 million pledge
on maize stock. The overdraft facility was used to purchase maize
during the harvest season and will be repaid before 31 May 2022.
The overdraft portion secured by bank guarantee incurs an interest
of Prime lending rate minus 3.75% whilst the overdraft portion
secured by maize stock incurs interest of Prime lending rate plus
1%.
Beef division
The outstanding balance on agricultural equipment finance lease
is MZN 16.6m ($ 0.26m). During the period, MZN2.3 million ($
35,056) 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.
Reconciliation to cash flow statement
At 31 Cash flow Foreign At 30 September
March Exchange 2021
2021
Non-current bank loans and finance
leases 2,409 (171) 180 2,418
Current bank loans and finance
leases 364 - 29 393
Overdrafts 3,652 4,087 443 8,182
6,425 3,916 652 10,993
======= ========== ========== ================
6. Share capital
Authorised Allotted and fully paid
Number Number US$000
------------ ------------------------ -------
At 31 March 2021, 30 September 2021 and 2020 23,450,000 21,240,618 3,135
At 31 March 2021, 30 September 2021 and 2020
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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END
IR MZMMZDKKGMZM
(END) Dow Jones Newswires
December 15, 2021 09:29 ET (14:29 GMT)
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