TIDMDKL
RNS Number : 3785M
Dekel Agri-Vision PLC
21 September 2021
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
2021 Interim Results and Shareholder Call
Dekel Agri-Vision Plc, the West Africa-focused agriculture
company, is pleased to announce its interim results for the six
months ended 30 June 2021.
The Company will be hosting a shareholder conference call at 2pm
UK time on 28 September 2021. The call will be hosted by Executive
Director, Lincoln Moore and Deputy CEO Shai Kol, who will discuss
the interim results and provide an update on activity across its
portfolio of projects. Further information about the call can be
found at the end of this announcement, as well as in the
presentation, which will be uploaded to the corporate website prior
to the conference call.
Key Highlight s
Palm Oil Operation
-- Record H1 2021 Revenue of EUR21.7m, an increase of 40.9% compared to H1 2020
-- Record H1 2021 EBITDA of EUR3.9m, an increase of 105.3% compared to H1 2020
-- A near record H1 2021 Net Profit of EUR2.0m, an increase of
400% compared to H1 2020. An excellent result given this included
pre-production cashew operating expenses for the first time, in
addition to timing issues which resulted in a higher than normal
CPO inventory being sold post period end.
Cashew Project
-- Construction of the cashew processing plant has made huge
strides in H1 2021. We are on the cusp of first production within
the next 50 days, with the commissioning phase now also
commenced
Financial Overview
As set out in the table below - the Company's first half
financial performance has been excellent, particularly when set
against the backdrop of COVID-19.
H1 2021 H1 2020 % change
Revenue EUR21.7m EUR15.4m 40.9%
---------- ---------- ---------
Gross Margin EUR4.9m EUR2.6m 88.4%
---------- ---------- ---------
Gross Margin % 22.6% 16.8% 34.5%
---------- ---------- ---------
G&A (EUR1.7m) (EUR1.4m) -21.4%
---------- ---------- ---------
EBITDA EUR3.9m EUR1.9m 105.3%
---------- ---------- ---------
Net profit / (loss)
after tax EUR2.0m EUR0.4m 400.0%
---------- ---------- ---------
Production - palm oil project, Ayenouan Côte d'Ivoire
-- A very strong first-half year of global Crude Palm Oil
('CPO') prices and an improvement in CPO volumes produced and sold
during H1 2021 drove the material improvement in results
-- 35.7% increase in average realised sales price of EUR817 per tonne of CPO (H1 2020: EUR602)
o CPO prices rallied strongly during the first half to around a
10-year high. Current prices post 30 June 2021 remain even higher
than the price average of H1 2021, with current prices being
achieved of over EUR900 per tonne
-- 26,515 tonnes of CPO produced in first half, 11.0% higher
than H1 2020 production of 23,882 tonnes. We believe this is due to
the stabilisation of operations and logistics following the peak
Covid-19 disruption in H1 2020
-- The extraction rate remained solid at 21.4%, although below
H12020 result of 22.5% due to lower oil content in the Fresh Fruit
Bunches ('FFB')
-- 3.7% increase in CPO sales of 24,784 tonnes (H1 2020: 23,906
tonnes). Higher levels of stock on hand at the end of H1 2021
compared to H1 2020 have now been sold post period end
-- ESG milestones achieved included completion of final
pre-audit of the Roundtable on Sustainable Palm Oil (RSPO)
certification process setting us up to deliver our goal of RSPO
certification
Imminent production - cashew processing project at Tiebissou in
Côte d'Ivoire
-- Production on course to commence within the next 50 days at
which point Tiebissou will become Dekel's second producing asset
and provide exposure to the high margin, global cashew market
-- Tiebissou expected to lead to step-up in Dekel's revenue and
profitability as operations ramp up in 2022
New Ventures - proceeding cautiously due to significant focus
upon bringing Tiebissou to production and COVID-19 market
volatility
-- New commodity project - one venture in Côte d'Ivoire being
actively considered as a new project for the Company is currently
undertaking an independent feasibility process
-- Hybrid power project - feasibility study being undertaken by
JV partner Green Enesys on the development of a 30MW solar PV plant
and a 5-6MW biomass plant using feedstock from Ayenouan
Dekel Executive Director Lincoln Moore said, "Following a two to
three year period of challenging trading conditions due to low CPO
prices and more recently, Covid-19, we believe H1 2021's record
results have been an outstanding outcome for the Company and come
at an important moment as we shortly commence production at our
Cashew project. In addition, with global crude palm oil prices
currently trading at cyclical highs, we are extremely confident
that our H2 2021 results will also show material improvement
compared to H2 2020.
"Looking forward into 2022, we believe that the Company is well
positioned to enter a period of sustained growth in financial
performance. Together with the current high palm oil prices, the
other key catalyst behind the step-up in performance will be, we
expect, the incorporation of the first full year of Cashew
production, which will diversify and significantly increase our
profitability profile. We look forward to providing further updates
on progress made over what appears to be a very exciting next six
months for the Company."
Conference Call
Lincoln Moore and Shai Kol will provide a live presentation
relating to the Interim results for the six months ended 30 June
2021 via the Investor Meet Company platform on 28th Sep 2021 at
2:00pm BST.
The presentation is open to all existing and potential
shareholders. Questions can be submitted pre-event via your
Investor Meet Company dashboard up until 9am the day before the
meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add
to meet DEKEL AGRI-VISION PLC via:
https://www.investormeetcompany.com/dekel-agri-vision-plc/register-investor
Investors who already follow DEKEL AGRI-VISION PLC on the
Investor Meet Company platform will automatically be invited.
An updated presentation will be uploaded to the Company's
website on the morning of the call which will be referred to
throughout the call.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
*S*
For further information please visit the Company's website at
www.dekelagrivision.com or contact:
Dekel Agri-Vision Plc
Youval Rasin
Shai Kol
Lincoln Moore +44 (0) 207 236 1177
Arden Partners Plc (Nomad and Joint Broker)
Paul Shackleton / Ruari McGirr /
Akhil Shah (Corporate Finance) +44 (0) 207 614 5900
Optiva Securities Limited (Joint Broker)
Christian Dennis
Jeremy King +44 (0) 203 137 1903
CHAIRMAN'S STATEMENT
For the first half of 2021, Dekel Agri-Vision reported record
revenues and EBITDA for its palm oil operations and is on the cusp
of production for its Tiebissou cashew processing project.
Revenues were up by 40.9% to EUR21.7 million; EBITDA rose by
105.3% to EUR3.9 million; net profits were also up by 400% to
EUR2.0 million: the Company's first half financial performance,
specifically that of our producing project, the crude palm oil
('CPO') operation at Ayenouan, Cote d'Ivoire, together with the
advancement of the Cashew project to imminent production, by a
number of measures represents the strongest H1 interim results we
have reported since joining AIM.
Ayenouan Palm Oil Project
The table below shows the improved first half performance at
Ayenouan compared to H1 2020. It also shows a summary of our
results for the last six years.
H1 2021 H1 2020 H1 2019 H1 2018 H1 2017 H1 2016
EUR19.6
Revenue EUR21.7m EUR15.4m EUR14.6m EUR14.1m m EUR16.0m
--------- --------- ---------- ---------- -------- ---------
EBITDA EUR3.9m EUR1.9m EUR1.4m EUR1.1m EUR3.7m EUR3.1m
--------- --------- ---------- ---------- -------- ---------
Net profit / (loss)
after tax EUR2.0m EUR0.45m (EUR0.1m) (EUR0.5m) EUR2.4m EUR1.8m
--------- --------- ---------- ---------- -------- ---------
FFB collected (tonnes) 123,684 106,188 131,917 96,195 117,706 123,157
--------- --------- ---------- ---------- -------- ---------
CPO production (tonnes) 26,515 23,882 28,934 22,242 26,947 28,550
--------- --------- ---------- ---------- -------- ---------
Average CPO price
per tonne EUR817 EUR602 EUR505 EUR549 EUR707 EUR542
--------- --------- ---------- ---------- -------- ---------
Clearly, the stand-out drivers of Dekel's very strong
performance in H1 2021 are:
- CPO pricing, the highest price achieved since operations commenced; and
- FFB collected, the second highest since operations commenced
Global CPO prices continue to remain strong early in the second
half of 2021, with even higher prices in the range of EUR900-950
per tonne being achieved in Q3 to date. Whilst a host of factors
impact the short-term pricing of CPO at a macro level, global stock
levels remain relatively tight as low stock levels in the key
producing nations pre Covid-19 are coupled together with improving
demand as global markets reopen, resulting in higher CPO
consumption levels. Should prices continue at current levels, we
are well positioned to deliver a strong H2 2021 during the low
season and potentially even a further improvement in results in the
next high season in H1 2022.
Whilst CPO prices are supportive, we continue to work hard to
maximise our production levels. As previously reported, 2012 saw
the start of a major multi-year planting programme in the region.
It takes on average 6-8 years for plants to mature, so we are now
entering a period where this planting should start to bear fruit.
With strong local community relationships, critical infrastructure
in place and proven logistics networks established, Ayenouan is in
a strong position to capitalise on any increase in local fruit
production. We also continue to work hard to foster close
relationships with the local community to secure supplies -
supplying discounted plants from our nursery; setting up logistics
hubs to facilitate delivery of fruit to the mill, and rolling out
fertiliser programmes with innovative funding mechanisms to
encourage the use of fertiliser at a manageable cost to the farmer.
In 2021, we added a health insurance initiative for our small
farmers and their families, which has been very well received by
the community at a challenging time during Covid-19.
Tiebissou Cashew Project
While COVID-19 led to a delay in the commencement of
construction work and later in the process also hampered
international shipping logistic timetables, first production
remains on course for Q4 2021. This is a challenging yet exciting
period with the major initial goal being to stabilise operations by
year end 2021, before striving to ramp up production considerably
in 2022, the first full year of production. It is expected that
after stabilising operations the Cashew project can quickly become
cash generative for the Company.
We believe in time, the Cashew project could potentially exceed
the Palm Oil project in terms of profit contribution to the Group.
The Cashew project is being developed in such a way that capacity
can be increased significantly in short order. With a nameplate
capacity of 15,000 tonnes per annum (tpa), production at the plant
can be ramped up by 50% at no extra cost by simply increasing the
number of shifts from two to three. From 15,000tpa and at a cost of
EUR5-6 million, the mill's capacity can be doubled to 30,000tpa,
which we estimate could generate revenues in the region of EUR40
million per annum based on today's prices.
Other projects
With Ayenouan firmly established and Tiebissou set to commence
production within the next 50 days low-cost work continues to be
carried out to establish a pipeline of projects in line with our
objective to build Dekel into a major West Africa-focused,
agro-industrial business. Proceeding cautiously is the order of the
day with regards to these plans given the current uncertain macro
environment.
Our ambitions in clean energy remain and we continue low-cost
work in the background as part of our medium-term strategy to
develop a biomass project utilising the empty fruit bunch waste
materials and we have similar aspirations with the Cashew
processing plant, where cashew shells can underpin a biomass
project at the Cashew project site.
Also, as previously disclosed, we have identified a third
commodity which is now in external feasibility where we believe we
can leverage our existing infrastructure, logistics network and
technical expertise. As with the clean energy joint venture,
current work is low cost and will remain so, at least until
Tiebissou is up and running.
Environment, Social, and Governance ("ESG")
During H1, RSPO certification pre-audit work was conducted by
Proforest, an Oxford-based environmental consultancy. Over the past
few months, we have been working on the audit points which are
primarily of an administrative nature and we believe will be ready
for the final audit process in H2 this year. Organising consultant
visits to complete both internal work and external audits has been
and remains challenging due to Covid-19 but we can now see a
pathway to completion for this project which remains one of our top
priorities. The main unknown at this stage is booking the timing of
the final RSPO certification process review, which we are
coordinating and will update the market once set dates are put in
place. Once certified, Ayenouan will be one of the few operations
in the region with the RSPO stamp of approval. Together with the
clear social benefits our palm oil project, as well as our cashew
project will deliver, we believe the Company can be proud of its
ESG credentials.
Financial
During the six-month period under review, total revenues at
Ayenouan were EUR21.7 million, a 40.9% increase on the EUR15.4
million reported for H1 2020. A 35.7% increase in CPO prices
achieved and a 11.0% increase in CPO production were the key
drivers of the increase in Revenue. This also flowed through to the
profit lines where EBITDA increased by 105.3% to EUR3.9m and net
profit after tax increased by 400% to EUR2.0m.
While Ayenouan has always been a low-cost and efficient
operation, with like-for-like group overheads related to the Palm
Oil operation remaining at EUR1.4m. An additional EUR0.3m relates
to new overheads associated with the Cashew operation. Whilst the
cashew overheads will increase as production commences there are
substantial synergies in the overhead line meaning the majority of
gross profit delivered from the Cashew project is expected to fall
direct to the bottom line.
Outlook
In spite of the challenges posed by the Covid-19 pandemic, the
Company was still able to achieve record H1 results and the outlook
for Dekel is looking very positive. The Ayenouan palm oil project
is firmly established and moving from strength to strength; the
Tiebissou cashew project is set to commence production within the
next 50 days and there is a healthy pipeline of possible new
projects under review in line with our objective to build Dekel
into a major West Africa-focused, agro-industrial business. As
always, I would like to thank the Board, management, our employees
and advisers for their support and hard work over the course of H1
and I look forward to continuing working with them closely during
what promises to be an exciting period for Dekel.
Andrew Tillery
Non-Executive Chairman Date: 20 September 2021
DEKEL AGRI-VISION PLC.
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF 30 JUNE 2021
EUROS IN THOUSANDS
UNAUDITED
INDEX
Page
-------
Interim Condensed Consolidated Statements of Financial
Position 2-3
Interim Condensed Consolidated Statements of Comprehensive
Income 4
Interim Condensed Consolidated Statements of Changes
in Equity 5-6
Interim Condensed Consolidated Statements of Cash Flows 7- 8
Notes to the Interim Condensed Consolidated Financial
Statements 9 - 10
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
-
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
30 June 31 December
2021 2020
--------- -----------
Unaudited Audited
--------- -----------
Euros in thousands
----------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 2,341 202
Trade receivables 538 -
Inventory 4,323 1,283
Accounts and other receivables 186 292
--------- -----------
Total current assets 7,388 1,777
--------- -----------
NON-CURRENT ASSETS:
Deposits in banks 752 282
Property and equipment, net 43,658 41,249
Total non-current assets 44,410 41,531
--------- -----------
Total assets 51,798 43,308
========= ===========
The accompanying notes are an integral part of the consolidated
financial statements.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
30 June 31 December
2021 2020
--------- -----------
Unaudited Audited
--------- -----------
Euros in thousands
----------------------
EQUITY AND LIABILITIES
CURRENT LIABILITIES:
Short-term loans and current maturities of
long-term loans 4,985 5,676
Trade payables 1,177 893
Advance payments from customers - 1,971
Other accounts payable and accrued expenses 1,767 1,824
--------- -----------
Total current liabilities 7,929 10,364
--------- -----------
NON-CURRENT LIABILITIES:
Long-term lease liabilities 186 192
Accrued severance pay, net 355 283
Long-term loans 24,984 20,052
Loan from Non-controlling interests 661 -
--------- -----------
Total non-current liabilities 26,186 20,482
--------- -----------
Total liabilities 34,115 30,846
--------- -----------
EQUITY
Share capital 143 142
Additional paid-in capital 39,864 35,570
Accumulated deficit (16,656) (18,728)
Capital reserve 2,532 2,532
Capital reserve from transactions with non-controlling
interests (8,711) (7,754)
--------- -----------
Non-controlling interests 511 700
--------- -----------
Total equity 17,683 12,462
--------- -----------
Total liabilities and equity 51,798 43,308
========= ===========
The accompanying notes are an integral part of the interim
consolidated financial statements.
20 September,
2021
-------------------- ------------------ ------------------ ------------------
Date of approval Youval Rasin Yehoshua Shai Kol Lincoln John Moore
of the
financial statements Director and Chief Director and Chief Executive Director
Executive Officer Finance Officer
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Six months ended Year ended
30 June 31 December
--------------------------
2021 2020 2020
------------ ------------ -------------
Unaudited Unaudited Audited
------------ ------------ -------------
Euros in thousands
(except share and per share amounts)
Revenues 21,691 15,423 22,546
Cost of revenues (16,841) (12,794) (20,207)
------------ ------------ -------------
Gross profit 4,850 2,629 2,339
General and administrative 1,745 1,413 2,761
------------ ------------ -------------
Operating profit (loss) 3,105 1,216 (422)
Other expenses - 7 -
Share of loss of associate - 47 167
Finance expense 1,069 706 1,582
------------ ------------ -------------
Income (loss) before taxes on income 2,036 456 (2,171)
Taxes on income 15 53 55
------------ ------------ -------------
Net income (loss) and total comprehensive
income (loss) 2,021 403 (2,226)
============ ============ =============
Attributed to :
Equity holders of the Company 2,072 403 (2,226)
Non-controlling interest (51) - -
2,021 403 (2,226)
Income (loss) per share (in Euros):
Basic and diluted income (loss)
per share 0.00 0.00 (0.01)
============ ============ =============
Weighted average number of shares
used in computing basic and diluted
income (loss) per share 520,302,349 423,895,851 428,930,844
The accompanying notes are an integral part of the interim
consolidated financial statements.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Capital
reserve
from
transactions
Additional with Non -
Share paid-in Accumulated Capital non-controlling controlling Total
capital capital deficit reserve interests Total interest Equity
------- ---------- ----------- ------- --------------- ------ ----------- ------
Euros in thousands
---------------------------------------------------------------------------------------
Balance as of 1
January 2021
(audited) 142 35,570 (18,728) 2,532 (7,754) 11,762 700 12,462
Net income and
total
comprehensive
income - - 2,072 - - 2,072 (51) 2,021
Issuance of
shares 1 3,743 - - 3,744 - 3,744
Transaction with
minority holders - 404 - - (957) (553) (254) (807)
Contribution to
equity by
non-controlling
interest - - - - - - 116 116
Share-based
compensation - 147 - - - 147 - 147
Balance as of 30
June 2021
(unaudited) 143 39,864 (16,656) 2,532 (8,711) 17,172 511 17,683
======= ========== =========== ======= =============== ====== =========== ======
Attributable to equity holders of the Company
---------------------------------------------------------------------------
Capital
reserve
Additional from transactions
Share paid-in Accumulated Capital with non-controlling Total
capital capital deficit reserve interests Equity
-------- ---------- ----------- -------- --------------------- -------
Euros in thousands
---------------------------------------------------------------------------
Balance as of 1 January
2020 (audited) 141 34,368 (16,502) 2,532 (7,754) 12,785
Net income and total
comprehensive
income - 403 403
Issuance of shares - 15 15
Share-based compensation 147 147
Balance as of 30 June
2020 (unaudited) 141 34,530 (16,099) 2,532 (7,754) 13,350
======== ========== =========== ======== ===================== =======
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to equity holders of the Company
------------------------------------------------------------------------------------------------------
Capital Non-controlling Total Equity
reserve interests
from
transactions
Additional with
Share paid-in Accumulated Capital non-controlling
capital capital deficit reserve interests Total
------- ---------- ----------- ------- --------------- ----------- --------------- ------------
Euros in thousands
Balance as of 1
January
2020 141 34,368 (16,502) 2,532 (7,754) 12,785 - 12,785
Loss and total
comprehensive
loss - - (2,226) - - (2,226) - (2,226)
Issuance of
shares 1 907 - - - 908 - 90 8
Non-controlling
interests
arising from
initially
consolidated
subsidiary - - - - - - 700 700
Share-based
compensation - 295 - - - 295 - 295
------- ---------- ----------- ------- --------------- ----------- --------------- ------------
Balance as of 31
December
2020 142 35,570 (18,728) 2,532 (7,754) 11,762 700 12,462
======= ========== =========== ======= =============== =========== =============== ============
The accompanying notes are an integral part of the interim
consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended Year ended
30 June 31 December
-------------------------
2021 2020 2020
------------ ----------- --------------
Unaudited Unaudited Audited
------------ ----------- --------------
Euros in thousands
(except share and per share amounts)
Cash flows from operating activities:
Net income (loss) 2,021 403 (2,226)
------------ ----------- --------------
Adjustments to reconcile net income
(loss) to net cash provided by (used
in) operating activities:
Adjustments to the profit or loss
items:
Depreciation 747 669 1,369
Share-based compensation 147 147 295
Accrued interest on long-term loans
and non-current liabilities 891 618 1,141
Change in employee benefit liabilities,
net 117 27 205
Share of loss of associate - 47 167
Changes in asset and liability items:
increase in inventories (3,040) (35) (366)
increase in accounts and other receivables (432) (602) (39)
Decrease in short-term deposit (470) - (18)
Increase in trade payables 301 522 83
decrease in advance payments from
customers (1,971) (1,169) (802)
Increase (decrease) in accrued expenses
and other accounts payable (57) 710 325
------------ ----------- --------------
(3,767) 1,278 3,964
------------ ----------- --------------
Cash paid during the year for:
Income tax - - (9)
Interest (693) (729) (1,296)
------------ ----------- --------------
(693) (729) (1,053)
------------ ----------- --------------
Net cash provided by (used in) operating
activities (2,439) 608 433
============ =========== ==============
The accompanying notes are an integral part of the interim
consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended Year ended
30 June 31 December
-------------------------
2021 2020 2020
------------ ----------- --------------
Unaudited Unaudited Audited
------------ ----------- --------------
Euros in thousands
(except share and per share amounts)
Cash flows from investing activities:
Cash acquired upon acquisition of
subsidiary - - 89
Investment in Pearlside - - (378)
Purchase of property and equipment (3,156) (58) (118)
------------ ----------- --------------
Net cash provided by (used in) investing
activities (3,156) (58) (407)
------------ ----------- --------------
Cash flows from financing activities:
Issue of shares (offering net proceeds) 3,726 - -
Long-term lease, net (6) (12) (12)
Repurchase of shares from non-controlling
interests by subsidiaries (807) - -
Receipt of short-term loans, net (670) 756 945
Receipt of long-term loans 5,991 - 1,220
Receipt of Loan from Non-controlling
interest in subsidiary 765 - -
Repayment of long-term loans (1,265) (1,250) (2,250)
------------ ----------- --------------
Net cash provided by (used in) financing
activities 7,734 (506) (97)
------------ ----------- --------------
Increase in cash and cash equivalents 2,139 44 (71)
Cash and cash equivalents at beginning
of period 202 273 273
------------ ----------- --------------
Cash and cash equivalents at end
of period 2,341 317 202
============ =========== ==============
Supplemental disclosure of non-cash
activities:
Issuance of shares in consideration
for investment in Pearlside 404 - 884
============ =========== ==============
The accompanying notes are an integral part of the interim
consolidated financial statements.
NOTE 1:- GENERAL
a. These financial statements have been prepared in a condensed
format as of June 30, 2021, ("interim consolidated financial
statements"). These financial statements should be read in
conjunction with the Company's annual financial statements as of
December 31, 2020, and for the year then ended and accompanying
notes ("annual consolidated financial statements").
b. Dekel Agri-Vision PLC ("the Company") is a public limited
company incorporated in Cyprus on 24 October 2007. The Company's
Ordinary shares are admitted for trading on the AIM, a market
operated by the London Stock Exchange. The Company is engaged
through its subsidiaries in developing and cultivating palm oil
plantations in Cote d'Ivoire for the purpose of producing and
marketing Crude Palm Oil ("CPO"). The Company's registered office
is in Limassol, Cyprus.
c. CS DekelOil Siva Ltd. ("DekelOil Siva") a company
incorporated in Cyprus, is a wholly-owned subsidiary of the
Company. DekelOil CI SA, a subsidiary in Cote d'Ivoire currently
held 99.85% by DekelOil Siva, is engaged in developing and
cultivating palm oil plantations for the purpose of producing and
marketing CPO. DekelOil CI SA constructed and is currently
operating its first palm oil mill.
d. Pearlside Holdings Ltd. ("Pearlside") a company incorporated
in Cyprus, is a subsidiary of the Company since December 2020 (see
also note 3). The assets and liabilities of Pearlside are included
for the first time by the Company in the consolidated statement of
financial position as at 31 December 2020. Pearlside has a
wholly-owned subsidiary in Cote d'Ivoire, Capro CI SA ("Capro").
Capro is currently constructing a Raw Cashew Nut (RCN) processing
plant in Cote d'Ivoire near the village of Tiebissou.
e. DekelOil Consulting Ltd. a company located in Israel and a
wholly-owned subsidiary of DekelOil Siva and is engaged in
providing services to the Company and its subsidiaries.
f. The recent outbreak of Coronavirus, a virus causing
potentially deadly respiratory tract infections originating in
China and spreading in various jurisdictions, had a significant
effect on the global economic conditions and CPO prices but it had
no significant effect on the Company's operations during the
reported year. The outbreak of Coronavirus may resume its negative
affect on economic conditions regionally as well as globally,
disrupt operations situated in countries particularly exposed to
the contagion, affect the Company's customers and suppliers or
business practices previously applied by those entities, or
otherwise impact the Company's activities. Governments in affected
countries are imposing travel bans, quarantines and other emergency
public safety measures. Those measures, though apparently temporary
in nature, may continue and increase depending on developments in
the virus' outbreak. The ultimate severity of the Coronavirus
outbreak is uncertain at this time and therefore the Company cannot
reasonably estimate the impact it may have on its end markets and
its future revenues, profitability, liquidity and financial
position.
NOTE 1:- GENERAL (Cont.)
g. Working capital deficiency.
As of 30 June 2021, the Group's working capital position has
significantly improved from a deficit of EUR8.6m as at 31 December
2020 to a deficit of approximately EUR 0.5 million. The Company's
management believes it will have sufficient funds necessary to
continue its operations and meets its obligations as they become
due for at least a period of twelve months from the date of
approval of the financial statements.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES
a. Basis of preparation of the interim consolidated financial statements:
The interim consolidated financial statements have been prepared
in accordance with IAS 34, "Interim Financial Reporting", and in
accordance with the disclosure requirements of Chapter D of the
Securities Regulations (Periodic and Immediate Reports), 1970.
The significant accounting policies applied in the preparation
of the interim consolidated financial statements are consistent
with those followed in the preparation of the annual consolidated
financial statements for the year ended 31 December, 2020.
c. Fair value of financial instruments:
The carrying amounts of the Company's financial instruments
approximate their fair value.
NOTE 3:- SIGNIFICANT EVENTS DURING THE PERIOD
On 25 January 2021 a subsidiary of the company, DekelOil CI SA
completed a bond raise totaling approximately EUR6 million pursuant
to an Ivorian regulator approved bond facility of approximately
EUR15.2 million. The key bond terms are: 7 year tenure, 3 years
principal grace and interest rate of 7.75%
On 28 January 2021 the Company raised GBP3.27 million (app.
EUR3.69 million after deducting fund raising costs of EUR258
thousands) via the placement of 70,000,000 new Ordinary Shares at
an Issue Price of 5 pence per share.
On 6 February 2021 the Company entered into an agreement to
purchase an additional 16.7% interest in Pearlside Holdings Ltd
("Pearlside") from a minority holder for a total consideration of
GBP1,062,000 approximately EUR1,210,000. Consideration consisted of
GBP708,000 (app. EUR807,000) cash and GBP354,000 app. EUR404,000)
in ordinary shares settled by issuing 7,080,000 of the Company's
shares to the seller. The transaction was completed, and the
Company increased its interest in Pearlside from 54% to 70.7%.
On 8 February 2021 the shareholders of Pearlside held an AGM and
agreed to provide a pro rata shareholders loan to Pearlside. The
loan will not bear interest, not secured subordinated to the bank
loans of Pearlside,its repayment will be upon the decision board of
director decision.
According to this decision the non-controlling interest provided
a loan of EUR765 thousands. The loan is presented at its estimated
fair value.
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END
IR PPURPBUPGGRU
(END) Dow Jones Newswires
September 21, 2021 02:00 ET (06:00 GMT)
Dekel Agri-vision (LSE:DKL)
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