TIDMAGTA
RNS Number : 2174Y
Agriterra Ltd
29 December 2023
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Agriterra Limited / Ticker: AGTA / Index: AIM / Sector:
Agriculture
Agriterra Limited ('Agriterra' or the 'Company')
Interim Results
Agriterra Limited, the AIM listed African agricultural company,
announces its unaudited results for the six months ended 30
September 2023.
Chair's Statement
I am pleased to provide an update on our performance in the
first half of the 2024 financial year ('HY-2024'). These results
will be made available on the Company's website.
Operational update
Grain division
The Grain division commenced the period without sufficient
reserves of maize in silo to link to the new season. Accordingly,
with no banking facilities in place, early season maize purchases
were funded by customer prepayments and advances, securing 4,500
tons in the first 3 months of the period. The Grain division's
objective was to breakeven during this low milling period whilst
securing sufficient stocks for the season.
The division secured a commercial overdraft in July 2023
amounting to US$2 million to finance further maize purchases.
However it was unable to draw on the full facility as the bank was
unable to disburse the full amount due to Central Bank monetary
policy to restrict the money supply. The division secured a
shareholder loan in August for US$2 million to fund maize
purchases.
In August 2023, the Grain division undertook a restructuring
exercise with the objective of breaking even at 900 tons per month
by:
-- Revising the pricing strategy to achieve at least 25% gross margin on cost on maize.
-- Reducing fixed overheads from MZN 6 million (approximately
US$ 93,000) per month to MZN 3 million (approximately US$ 47,000)
by:
o Retrenching 54 staff members thereby reducing personnel cost
MZN 2 million (approximately US$ 31,000) per month.
o Reducing other operations cost by MZN 1 million (approximately
US$ 16,000) per month.
The cash flow constraints in the early part of the period
adversely impacted Grain division sales volumes at 4,188 tons
(HY-2023: 7,947 tonnes) generating revenue of US$ 2.2 million
(HY-2023: US$ 3.6 million).
The business, as at 30 September 2023, has in silo a total stock
of 6,609 tons of maize (HY-2023: 7,444 tons), which will be rolled
over continuously to fund maize requirements through to April 2024.
This will necessitate the purchase of a further 5,000 tons to meet
the milling requirements until the next harvest. Due to late
purchasing and general shortage of maize, average cost of maize
increased from MZN 12.2 per kg (approximately US$ 0.19) to MZN 19.1
per kg (approximately US$ 0.30) for the current season. However the
shortage of maise has increased the price of meal and the division
expects to be able to meet its margin targets in the second half of
the year as demand improves.
Operating costs increased by US$ 0.1 million to US$ 0.6 million
due to retrenchment cost incurred in August 2023. EBITDA decreased
to a loss of US$ 0.2 million (HY-2023: EBITDA profit of US$ 0.2
million) due to lower volumes and margins in the first quarter.
Finance costs decreased to US$ 0.2 million (HY-2023: US$ 0.8
million) reflecting the full benefits of the refinancing of
commercial debt with shareholder loans in the prior year.
Depreciation cost remained constant at US$ 0.24 million. Grain
incurred a loss of US$ 0.68 million for the 6 months period ending
30 September 2023 (HY-2023: Loss US$ 0.87 million).
Beef division
The strategy in the beef division shifted midway through the
period. This change was driven by several factors:
-- Influx of cheap beef from South Africa due to the weakening
of the South African Rand against the Metical which had an impact
on the beef market in the Southern parts of Mozambique, especially
Maputo, the Capital.
-- Rising transport costs which has impacted on the landed cost
of cattle in the feedlot as well as costs of getting the finished
product to market. These rising costs can be attributed to:
o Deteriorating transport network
o Rising fuel costs
o Ageing fleet
In response, decisions were made to start shifting the sales
strategy of beef from the more formal high-end market to less
formal mass market, and price the product aggressively, whilst also
maintaining our current strategy of conditioning animals in the
feedlot and maintaining a presence within the formal market.
To achieve this, we have implemented the following:
-- Start targeting areas much closer to our operational base for cattle buying.
-- Buying animals at the feedlot and abattoir for slaughter directly.
-- Start investing in new fleet of cattle trucks to improve transport efficiencies.
In addition to the above, a cost reduction exercise was
undertaken at the end of July with a view of reducing our monthly
operating expenses by 1,000,000 MZN per month (approximately US$
16,000) as well as reducing our staff compliment by 45, in an
effort to economise and streamline the operation.
The number of animals in stock had reduced to 723 head by 30
Sept 23. This is partly as result of our shift in strategy to buy
more animals for direct slaughter and reduce the amount and cost of
keeping animals in the feedlot. Cashflow has had some challenges,
primarily due to tough economic conditions as well as country wide
municipal elections, with much funding from Government being
diverted to campaigning rather than settling outstanding debts to
their suppliers, which in turn impacts on primary producers like
ourselves. Steps have been taken to rectify this and we are now
seeing an improvement.
Beef division generated US$ 1.5 million revenue over the period,
a reduction of US$ 145,000 against the same period last year. 430
tons of beef were sold during the period, compared to a budget of
652 tons. A gross profit of 20.67% was achieved, which is the third
year whereby a GP of over 20% has been achieved.
Cash resources available at this time amounted to US$ 0.25
million which amounts to an additional 750 head of cattle at
current prices. The cumulative for loss the period amounted to US$
0. 4 million, an increase of US$ 0.1 million.
After some delays, we have started a new company Carnes de
Manica and sales commenced in October 2023. This is another field
to Pork initiative and once it is fully established, we anticipate
an additional US$ 0.13 million to be added to the revenue stream
annually. Current number of pigs in stock is 299 head.
Two new cattle trucks and trailers have been purchased at a cost
of US$ 0.12 million with funds raised from Peterhouse Capital. We
anticipate the arrival of these trucks in late Nov. This will help
in improving our efficiencies and reducing our transport costs
within the beef division.
Snax Division
Snax division continues to supply the market with superior
quality products of which we have launched a new chicken flavoured
puff ring over this period. The new product has been well received
as now constitutes about 15% of total sales. Onion rings remain the
market favourite and a new 100g family size packet is being
launched. The new packing machine has been ordered and we expect
this to be on site late December 2023 and installed, ready for
production in January 2024. In terms of production we have produced
515 00 bales of product over the period.
Snax division generated revenue amounting to US$ 1.03 million
(HY-2023: US$ 1.27 million) over the period with a gross profit of
20.17% (HY-2023: 19.6%). Decrease in sales revenue is mainly
attributable to the tough economic conditions and less disposable
household incomes, with families spending less on non-essential
food stuffs. Profit for the period was US$ 0.30 million (HY-2023:
US$ 0.74 million).
DECA Snax is a joint venture and based on International
Financial Reporting Standards, revenue is not consolidated but the
profit portion attributable to the group is included as share of
profit in equity accounted investee in the Consolidated Income
Statement. Profits have been negatively impacted by the rising
costs of raw materials, packaging and transport. Maize prices in
particular have had a significant impact. Profit attributable to
the group is US$ 0.15 million (HY-23: US$ 0.35 million).
Group Results
Group revenue for the half-year ended 30 September 2023
decreased by 28% to US$ 3.6 million (HY-2023: US$ 5.0 million).
Decrease in sales revenue is mainly resulting from decrease in
sales for Grain division.
Gross profit decreased to US$ 0.5 million (HY-2023: US$ 1.1
million) achieving a group gross margin of 15% (HY-2023: Gross
margin of 22%). Decrease in gross margin is resulting from high
cost of maize which reduced Grain division margins to 9%. Group
operating expenses increased from US$ 1,603 to US$ 1,727 due to
retrenchment cost as compared to prior period. Following the
restructuring exercise, it is anticipated that operating expenses
will fall significantly from October 2023.
Finance costs decreased by 40% to US$ 0.55 million (HY-2023: US$
0.92 million) as a result of refinancing of commercial debt with
shareholder loans incurring interest at SOFR+3%. Overall interest
rate on shareholder loan is around 10% per annum as compared to the
current commercial debt interest rate of 25% per annum.
During the period, inventories have increased by US$ 1.92
million to US$ 2.47 million as compared to 31 March 2023. Grain
division is keeping low inventory levels as a result of the revised
strategy to reduce stock holding cost and finance cost in Grain
division. Net debt at 30 September 2023 was US$ 12.7 million (31
March 2023: US$ 10.9 million).
Outlook for H2-2024
The Grain business is entering H2-2024 with 6,609 tons of grain
in silo which is not sufficient to take us to the next harvest. The
division is supplementing by importing 4000 tons of maize from
South Africa and rolling to the extent possible maize sold during
the period. Beef division sales revenue is expected to increase by
20% as compared to the first half year. All divisions have been
striving to be self-sustaining at low capacity utilisation and now
are expanding into profitable operations as volumes increase after
rightsizing. Management will continuously monitor operations for
profitability and seize new market opportunities creating a group
basket of products to effectively lower overheads per product in
the medium to long term.
Grain remains the core group business and management will seek
to add value by creating additional product lines building on the
success of Deca Snax.
CSO Havers
Chair
29 December 2023
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 / David 409 3494
Asquith
--------------------------- ----------------------- -----------------
Peterhouse Capital
Limited
----------------------- -----------------
Duncan Vasey / Eran Tel: +44 (0) 207
Zucker 469 0930
----------------------- -----------------
Consolidated statement of profit or loss and other comprehensive
income
Consolidated income statement
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
Note US$000 US$000 US$000
CONTINUING OPERATIONS
Revenue 2 3,575 4,964 11,494
Cost of sales (3,054) (3,883) (8,758)
(Decrease)/Increase in fair value of
biological assets - - (288)
Gross profit 521 1,081 2,448
Operating expenses (1,727) (1,603) (3,381)
Other income 143 56 122
Profit on disposal of property, plant
and equipment - - -
--------------
Operating loss (1,063) (466) (811)
Net finance costs 3 (550) (918) (1,462)
Share of profit in equity-accounted
investees, net of tax 15 35 37
--------------
Loss before taxation (1,598) (1,349) (2,236)
Taxation - - 127
-------------- -------------- ----------
Loss for the period 2 (1,598) (1,349) (2,109)
Loss for the period attributable to
owners of the Company (1,598) (1,349) (2,109)
============== ============== ==========
LOSS PER SHARE
Basic and diluted loss per share - US
Cents 4 (2.22) (6.35) (9.29)
============== ============== ==========
Consolidated Statement of comprehensive income
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
US$000 US$000 US$000
Loss for the period (1,598) (1,349) (2,109)
Items that may be reclassified subsequently
to profit or loss:
Foreign exchange translation differences (705) (490) (161)
Other comprehensive (loss)/income for
the period (705) (490) (161)
-------------- -------------- ----------
/Total comprehensive (loss)/income
for the period attributable to owners
of the Company (2,303) (1,839) (2,270)
============== ============== ==========
Consolidated statement of financial position
30 September 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
Note US$000 US$000 US$000
Non-current assets
Property, plant and equipment 23,973 24,682 24,267
Intangible assets 1 10 3
Equity-accounted investees 108 91 93
24,082 24,783 24,363
------------- ------------- ----------
Current assets
Biological assets 292 421 496
Inventories 2,472 2,125 550
Trade and other receivables 1,628 1,190 1,055
Cash and cash equivalents 307 350 174
4,699 4,086 2,275
------------- ------------- ----------
Total assets 28,781 28,869 26,638
------------- ------------- ----------
Current liabilities
Borrowings 5 1,179 4,287 2,666
Trade and other payables 1,963 1,530 658
3,142 5,817 3,324
------------- ------------- ----------
Net current assets 1,557 (1,731) (1,049)
------------- ------------- ----------
Non-current liabilities
Borrowings 5 11,820 6,968 7,196
Deferred tax liability 6,115 6,243 6,111
------------- ------------- ----------
17,935 13,211 13,307
------------- ------------- ----------
Total liabilities 21,077 19,028 16,631
------------- ------------- ----------
Net assets 7,704 9,841 10,007
============= ============= ==========
Share capital 6 63,343 3,373 3,993
Share premium 6 - 151,442 151,419
Share based payments reserve 67 67 67
Revaluation reserve 11,935 12,186 12,061
Translation reserve (16,874) (16,498) (16,169)
Accumulated losses (50,767) (140,729) (141,364)
------------- ------------- ----------
Equity attributable to equity holders of the parent 7,704 9,841 10,007
============= ============= ==========
The unaudited condensed consolidated financial statements of
Agriterra Limited for the six months ended 30 September 2023 were
approved by the Board of Directors and authorised for issue on 29
December 2023.
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 2022 3,373 151,442 67 (16,008) 12,312 (139,506) 11,680
Loss for the period - - - - - (1,349) (1,349)
Other comprehensive
income:
Exchange translation
gain on foreign
operations
restated - - - (490) - - (490)
-------- ---------- -------- ------------ ------------ ------------ --------
Total comprehensive
loss for the period - - - (490) - (1,349) (1,839)
Transactions
with owners
Revaluation
surplus realised - - - - (126) 126 -
------------
Total transactions
with owners for the
period - - - - (126) 126 -
------------
Balance at
30 September
2022 3,373 151,442 67 (16,498) 12,186 (140,729) 9,841
Loss for the
period - - - - - (760) (760)
Other comprehensive
income:
Exchange translation
gain on foreign
operations - - - 329 - - 329
------------
Total comprehensive
income for the
period - - - 329 - (760) (431)
Transactions
with owners
Issue of shares 620 (23) - - - - 597
Revaluation
surplus realised - - - - (125) 125 -
-------- ---------- -------- ------------ ------------ ------------ --------
Total transactions
with owners for the
period 620 (23) - - (125) 125 597
------------
Balance at 31 March
2023 3,993 151,419 67 (16,169) 12,061 (141,364) 10,007
Loss for the period - - - - - (1,598) (1,598)
Other comprehensive
income:
Exchange translation
(loss) on foreign
operations - - - (705) - - (705)
------------
Total comprehensive
loss for the period - - - (705) - (1,598) (2,303)
Transactions with
owners
Reclassification 59,350 (151,419) - - - 92,069 -
Revaluation surplus
realised - - - - (126) 126 -
------------
Total transactions
with owners for the
period 59,350 (151,419) - - (126) 92,195 -
------------
Balance at 30
September
2023 63,343 - 67 (16,874) 11,935 (50,767) 7,704
======== ========== ======== ============ ============ ============ ========
Consolidated cash flow statement
Year
6 months ended 6 months ended ended
30 September 30 September 31 March
2023 2022 2023
Note Unaudited Unaudited Audited
US$000 US$000 US$000
Loss before tax for the period (1,598) (1,349) (2,236)
Adjustments for:
Amortisation and depreciation 2 396 435 870
Foreign exchange (gain)/loss (315) (493) (151)
Decrease / (increase) in value of biological assets - - 288
Share of profit in associate (15) (35) (37)
Net Finance costs 550 918 1,462
Operating cash flows before movements in working capital (982) (524) 196
Net decrease / (increase) in biological assets 204 42 (321)
(Increase) / decrease in inventories (1,922) 51 1,626
(Increase) / decrease in trade and other receivables (573) (366) 52
Increase / (decrease) in trade and other payables 924 570 (302)
Net Cash used in operating activities (2,352) (227) 1,251
Cash flows from investing activities
Acquisition of property, plant and equipment (102) (58) (90)
Net cash used in investing activities (102) (58) (90)
--------------- --------------- ----------
Cash flow from financing activities
Finance costs 3 (167) (918) (1,014)
Net (repayment) / drawdown of overdrafts 5 - (6,255) (6,254)
Net (repayment) / drawdown of loans and finance leases 5 (146) 7,701 (1,726)
Net drawdown of shareholder loans 2,900 - 7,900
Net cash generated from/(used in) financing activities 2,587 528 (1,094)
--------------- --------------- ----------
Net increase in cash and cash equivalents 133 243 67
Effect of exchange rates on cash and cash equivalents - - -
--------------- --------------- ----------
Cash and cash equivalents at beginning of period 174 107 107
--------------- --------------- ----------
Cash and cash equivalents at end of period 307 350 174
=============== =============== ==========
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$') 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 2023 (the 'H1-2024 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 2023 (available at
www.agriterra-ltd.com). The Group does not anticipate any
significant change in these accounting policies for the year ended
31 March 2024.
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 2023 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 H1-2024 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 H1-2024 financial
statements, the Directors have concluded that there is a reasonable
basis to adopt the going concern principle.
2. Segment information
The Board considers 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 2023 - Grain Beef Snax Unallo-cated Elimina-tions Total
Unaudited
US$000 US$000 US$000 US$000 US$000 US$000
------- ------- ------- ------------- -------------- --------
Revenue
External sales(2) 2,066 1,509 - - - 3,575
Inter-segment sales(1) 117 - - - (117) -
------- ------- ------- ------------- -------------- --------
2,183 1,509 - - (117) 3,575
------- ------- ------- ------------- -------------- --------
Segment results
- Operating loss (620) (316) - (256) - (1,192)
- Interest expense (184) (70) - (296) - (550)
- Share of profit in equity accounted
investees - - 15 - - 15
- Other gains and losses 128 1 - - - 129
-------
(Loss)/Profit before tax (676) (385) 15 (552) - (1,598)
Income tax - - - - - -
------- ------- ------- ------------- -------------- --------
(Loss)/Profit for the period (676) (385) 15 (552) - (1,598)
======= ======= ======= ============= ============== ========
6 months ended 30 September 2022 - Grain Beef Snax Unallo-cated Elimina-tions Total
Unaudited
US$000 US$000 US$000 US$000 US$000 US$000
------- ------- ------- ------------- -------------- --------
Revenue
External sales(2) 3,309 1,655 - - - 4,964
Inter-segment sales(1) 245 - - - (245) -
------- ------- ------- ------------- -------------- --------
3,554 1,655 - - (245) 4,964
------- ------- ------- ------------- -------------- --------
Segment results
- Operating loss (141) (264) - (127) - (532)
- Interest expense (776) (27) - (115) - (918)
- Share of profit in equity accounted
investees - - 35 - - 35
- Other gains and losses 47 19 - - - 66
-------
(Loss)/Profit before tax (870) (272) 35 (242) - (1,349)
Income tax - - - - - -
------- ------- ------- ------------- -------------- --------
(Loss)/Profit for the period (870) (272) 35 (242) - (1,349)
======= ======= ======= ============= ============== ========
Year ended 31 March 2023 - 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) 8,365 3,129 - - - 11,494
Inter-segment sales(1) 225 - - - (225) -
------- ------- -------- ------------- -------------- --------
8,590 3,129 - - (225) 11,494
------- ------- -------- ------------- -------------- --------
Segment results
- Operating loss 2 (659) - (308) - (965)
- Interest expense (958) (63) - (441) - (1,462)
- Other gains and losses 95 59 - - - 154
-Share of profit in equity-accounted
investees - - 37 - - 37
------- ------- -------- ------------- -------------- --------
(Loss)/Profit before tax (861) (663) 37 (749) - (2,236)
------- ------- -------- ------------- -------------- --------
Income tax 115 12 - - - 127
------- ------- -------- ------------- -------------- --------
(Loss)/Profit after tax (746) (651) 37 (749) - (2,109)
======= ======= ======== ============= ============== ========
(1) Inter-segment sales are charged at prevailing market prices
(2) Revenue represents sales to external customer and is
recorded in the country of domicile of the Company making the
sales. Sales from the Grain and the Beef divisions are principally
for supply to the Mozambique market.
The segment items included within continuing operations in the
consolidated income statement for the periods are as follows:
Grain Beef Unallo-cated Elimina-tions Total
US$000 US$000 US$000 US$000 US$000
------- ------- ------------- -------------- -------
6 months ended 30 September 2023 - Unaudited
Depreciation and amortisation 236 160 - - 396
======= ======= ============= ============== =======
6 months ended 30 September 2022 - Unaudited
Depreciation and amortisation 257 178 - - 435
==== ==== ====
Year ended 31 March 2023 - Audited
Depreciation and amortisation 514 356 - - 870
==== ==== ====
3. NET FINANCE COSTS
6 months ended 6 months ended Year
30 September 30 September ended
2023 2022 31 March
Unaudited Unaudited 2023
Audited
US$000 US$000 US$000
--------------- --------------- ----------
Interest expense:
Bank loans, overdrafts and finance leases 550 918 1,462
Interest income:
Bank deposits - - -
--------------- --------------- ----------
550 918 1,462
=============== =============== ==========
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
2023 2022 2023
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 (1,598) (1,349) (2,109)
============= ============= ===========
Weighted average number of Ordinary Shares for the purposes of basic
and diluted loss per
share 71,829,007 21,240,618 22,240,618
============= ============= ===========
Basic and diluted loss per share - US cents (2.22) (6.35) (9.29)
============= ============= ===========
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 2023 30 September 2022 31 March
2023
Unaudited Unaudited Audited
US$000 US$000 US$000
------------------ ------------------ ---------
Non-current
Shareholder loan 11,317 6,215 6,534
Bank loans 503 595 574
Leases - 158 88
------------------ ------------------ ---------
11,820 6,968 7,196
Current
Shareholder loan - 1,800 1,500
Bank loans 1,058 2,377 1,056
Leases 121 110 110
1,179 4,287 2,666
------------------ ------------------ ---------
12,999 11,255 9,862
================== ================== =========
Group
During the period, Agriterra Limited secured shareholder loans
amounting to US$ 2.9 million from Magister Investments Limited at
an interest rate of SOFR+6% to reduce the finance grain working
capital as well acquisition of the biscuit plant. The new
shareholder loans were issued during the period to add to the
following existing shareholder loan;
-- US$ 6.1 million convertible loan facility with a 3 year tenure maturing August 2024.
-- US$ 1.8 million convertible loan facility with a 12 month
tenure maturing in August 2023, loan has been rolled over with an
option to automatically rollover for more periods.
Grain division
Grain division has two outstanding commercial bank loans
amounting to US$ 1.6 million. Bank loan with an outstanding balance
of US$ 0.9 million was issued in May 2019. The loan facility which
was originally issued as an overdraft facility has been
restructured several times and now is a term loan incurring an
interest rate of Bank's prime lending rate less 1.75% and matures
in July 2023. The group subsequently repaid the outstanding loan in
October 2023 using a shareholder loan. The second debt facility
with an outstanding balance of US$ 0.7 million is a 5 year term
loan maturing on 31 December 2025. The facility was restructured
into a term loan on 1 December 2021 with an interest of prime
lending rate plus 1.5%. These facilities are secured by land and
buildings.
In addition, Grain division has a finance lease for 6 vehicles
maturing on 05 December 2023 with an outstanding balance amounting
to MZN 1.6 million (approximately US$ 25,000). Grain division
incurs interest of 18.6% on this facility. During the period MZN
1.6 million (approximately US$ 25,000) of the outstanding balance
was repaid.
Beef division
The outstanding balance on agricultural equipment finance lease
is MZN 6.1 million (approximately US$ 0.1 million). During the
period, MZN 3.3 million (approximately US$ 51,000) of the principal
balance was repaid. The finance lease is repayable over 5 years
maturing in July 2024 and is secured against certain agricultural
equipment.
Reconciliation to cash flow statement
At 31 Cash flow Interest Foreign At 30
March accrued Exchange September
2023 2023
US$000 US$000 US$000 US$000 US$000
Non-current shareholder
loan 8,034 2,900 384 (1) 11,317
Non-current bank loans 574 (71) - - 503
Non-current finance leases 88 (88) - - -
Current bank loans 1,056 2 - - 1,058
Current finance leases 110 11 - - 121
9,862 2,754 384 (1) 12,999
======= ========== ========= ========== ===========
6. Share capital
Authorised Allotted and fully paid
Number Number US$000
------------ ------------------------ -------
Ordinary Shares
At 30 September 2022 23,450,000 21,240,618 3,135
Issued during the period 50,588,389 50,588,389 620
------------ ------------------------ -------
At 31 March 2023 74,038,389 71,829,007 3,755
Reclassification - - 59,350
------------ ------------------------ -------
At 30 September 2023 74,038,389 71,829,007 63,105
At 31 March 2023 and September 2023 - - -
Deferred shares of 0.1p each 155,000,000 155,000,000 238
Total share capital 229,038,389 226,829,007 63,343
============ ======================== =======
The Company has one class of ordinary share which carries no
right to fixed income.
The deferred shares carry no right to any dividend; no right to
receive notice, attend, speak or vote at any general meeting of the
Company; and on a return of capital on liquidation or otherwise,
the holders of the deferred shares are entitled to receive the
nominal amount paid up after the repayment of GBP1,000,000 per
ordinary share. The deferred shares may be converted into ordinary
shares by resolution of the Board.
At 30 September 2023, the Company offset accumulated losses of
US$ 92,069,000 against the share premium account and the balance of
US$ 59,350,000 remaining on the share premium account has been
combined with the share capital account to comply with Guernsey
company law.
7. Post balance sheet events
On 15 November 2023, Magister Investments Limited advanced a
further $1.7 million to enable the Group to repay its remaining
Metical denominated bank borrowings. The loan has a coupon of
SOFR+6% and a term of 1 year, renewable at the lender's option
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END
IR EAEANAAFDFFA
(END) Dow Jones Newswires
December 29, 2023 05:30 ET (10:30 GMT)
Agriterra Ld (LSE:AGTA)
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Agriterra Ld (LSE:AGTA)
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