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 2024.
Chair's Statement
I am pleased to provide an update
on our performance in the first half of the 2025 financial year
('HY-2025'). These results are available on the Company's
website.
Operational update
Grain division
The Grain division commenced the
season with a well mapped strategy targeting to improve operational
efficiency as well as securing grain as early as possible in
response to the El Nino induced drought in Southern Africa. Grain
supply was low, and prices of maize and mealie meal increased
significantly. The division had to buy grain with a high moisture
content and dry to store in silo to be able to achieve 14,700 tons
meal sales volume budgeted for the current financial
year.
The division signed a commodity
trading agreement valued at US$ 2.7 million (MZN 200 million) in
May 2024 with a local Mozambican company to purchase maize for the
year. In addition, the division secured a US$ 1.2 million
prepayment from one of their major trading customers to supply
2,500 tons of mealie meal rateably from August 2024 to February
2025.
The division bought 15,635 tons of
maize at an average price of US$324 per ton during the period to 30
September 2024. The division had 10,938 tons in stock at 30
September 2024 and milled 4,697 tons of maize producing 3,582 tons
of mealie meal at an extraction of 76%. The division sold 4,651
tons in the period ended 30 September 2024 (HY-2024: 4,188 tons),
including 1,069 tons of imported mealie meal. The division
generated US$ 3 million revenue during the 6 months ended 30
September 2024 (HY-2024: US$ 2.2 million).
The Grain division expects to
produce 8,203 tons of mealie meal in H2-2025 from 10,938 tons of
maize in silo and would require an additional 1,000 tons to achieve
the forecasted sales budget of 14,700 tons of meal for the year
ending 31 March 2025. Management is planning to import 1,000 tons
of meal and will continue purchasing maize.
The replacement of old equipment
generated operating efficiencies helping to reduce operating costs
by US$ 0.1 million to US$ 0.5 million. The division is reporting an
unchanged EBITDA loss of US$ 0.2 million (HY-2024: EBITDA loss of
US$ 0.2 million) mainly due to lower volumes and margins in the
first quarter. Finance costs decreased to US$ 0.1 million (HY-2024:
US$ 0.2 million). Depreciation cost remained constant at US$ 0.24
million. The Grain division incurred a loss of US$ 0.5 million for
the 6-month period ended 30 September 2024 (HY-2024: Loss US$ 0.7
million).
Beef division
The Beef division commenced the year
with objective of turning around the business and enabling the
division to breakeven on a monthly basis. Based on the strategy
session held in February 2024, emphasis was on improving
operational efficiencies and building on the gains achieved in
prior year.
The premium market is supplied from
the feedlot and farm, whilst the mass market is now supplied from
cattle bought in and sent directly to the abattoir. Consequently,
the number of animals at the farm decreased to 539 head at 30
September 2024 (30 September 2023; 723 head), being the estimated
demand of the premium market for the next three months. The direct
slaughter program has been a success and has enabled the division
to reduce the cost of transporting animals and other animal
handling overheads. On average the division is purchasing 300
animals per month for direct slaughter.
Beef division generated US$ 1.5
million revenue over the 6 months period ended 30 September 2024
(HY-2024: US$ 1.5 million). 345 tons of beef were sold during the
period (HY-2024: 430 tons of beef). A gross profit of 22.04% was
achieved (HY-2024: 20.67%). The division is looking to increase
volume and introduce further operational efficiencies to improve
the Gross margin.
Operating expenses for the period
amounted to US$ 0.4 million (HY-2024: US$ 0.5 million).
The Beef division incurred a loss of US$ 0.2
million for the 6-month period ended 30 September 2024 (HY-2024:
Loss US$ 0.4 million).
Snax Division
Tough macroeconomic conditions,
together with the El Nino induced drought, has led to pressure on
the disposable income of the local population. This has had a
significant effect on demand for the division's products.
Nonetheless despite facing stiff price competition, the division's
superior quality is helping to maintain market share.
Snax division generated revenue
amounting to US$ 0.6 million (HY-2024: US$ 1.03 million) over the
period with a gross profit of 14.95% (HY-2024: 20.17%). Loss for
the period was US$ 0.06 million (HY-2024: Profit US$ 0.30
million).
Operating expenses for the 6
months period amounted to US$ 0.1 million (HY-2024: US$ 0.1
million).
The Group acquired control of DECA
Snax Limitada in the prior year. Consequently, the Group is
consolidating the performance of Snax division and recognising the
non-controlling interest in the Group's financial statements. The
comparatives have been restated accordingly.
Group Results
Group revenue for the half-year
ended 30 September 2024 increased by 5% to US$ 4.8 million (HY-2024
(restated): US$ 4.6 million) due to;
· US$
0.8 million increase in Grain division revenue resulting from high
selling prices even though volume remained constant.
· Decline in Snax revenue of $ 0.5m.
Gross profit remained constant at
US$ 0.7 million (HY-2024: US$ 0.7 million) achieving a Group gross
margin of 14% (HY-2024: Gross margin of 16%). Decrease in gross
margin is resulting from high cost of maize which reduced Grain
division margins to 9%. Group operating expenses decreased from US$
1.9 million to US$ 1.5 million.
Finance costs increased by 55% to
US$ 0.85 million (HY-2024: US$ 0.55 million) as a result of the
additional shareholder loans received in the prior year for maize
buying which were not repaid and the additional shareholder loan
for the procurement of the biscuit factory. Finance cost is mainly
incurred on shareholder loans at SOFR+6%.
During the period, inventories have
increased by US$ 4.1 million to US$ 4.7 million as compared to 31
March 2024 (HY-2024: US$ 2.9 million).
The Grain division's inventory is expected to be
used within the next 6 months.
Outlook for H2-2025
The Grain business is entering
H2-2025 with 10,938 tons of grain in silo which is not sufficient
to take us to the next harvest. The division is supplementing this
by importing 1,000 tons of mealie meal from South Africa and
rolling to the extent possible, maize sold during the period. The
price of meal in the market is expected to increase in H2-2025 in
line with an increase in seasonal demand and the Grain division is
well positioned to capitalize on this and boost its revenue and
margins. The Beef division's sales revenue is expected to improve
in H2-2025.
During H1-2025, the Biscuit division
commenced trading and is expected to contribute to increased
revenue in H2-2025.
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.
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
9
December 2024
|
For
further information please VISIT www.agriterra-ltd.com or
contact:
|
Agriterra
Limited
|
|
Strand Hanson
Limited
|
|
|
Caroline Havers
|
caroline@agriterra-ltd.com
|
Ritchie Balmer / James Spinney / David
Asquith
|
Tel: +44 (0) 207 409 3494
|
|
|
|
Peterhouse
Capital Limited
|
|
|
|
|
Duncan Vasey / Eran Zucker
|
Tel: +44 (0) 207 469 0930
|
C
Consolidated income
statement
|
|
|
|
6 months
ended
30
September
2024
|
|
6
months
ended
30
September
2023
|
|
Year
ended
31
March
2024
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
|
|
|
|
|
Restated
|
|
|
|
|
Note
|
|
US$000
|
|
US$000
|
|
US$000
|
|
CONTINUING OPERATIONS
|
|
|
|
|
|
|
|
|
Revenue
|
2
|
|
4,841
|
|
4,607
|
|
10,393
|
|
Cost of sales
|
|
|
(4,147)
|
|
(3,878)
|
|
(8,124)
|
|
Decrease in fair value of biological
assets
|
|
|
-
|
|
-
|
|
(437)
|
|
Gross profit
|
|
|
694
|
|
729
|
|
1,832
|
|
Operating expenses
|
|
|
(1,471)
|
|
(1,892)
|
|
(3,988)
|
|
Other income
|
|
|
73
|
|
129
|
|
273
|
|
Profit on disposal of property,
plant and equipment
|
|
|
80
|
|
1
|
|
30
|
|
Operating loss
|
|
|
(624)
|
|
(1,033)
|
|
(1,853)
|
|
|
|
|
|
|
|
|
|
|
Net finance costs
|
3
|
|
(853)
|
|
(550)
|
|
(1,488)
|
|
Loss before taxation
|
|
|
(1,477)
|
|
(1,583)
|
|
(3,341)
|
|
Taxation
|
|
|
-
|
|
-
|
|
127
|
|
Loss for the period
|
2
|
|
(1,477)
|
|
(1,583)
|
|
(3,214)
|
|
|
|
|
|
|
|
|
|
|
Loss for the period attributable to owners of the
Company
|
|
|
(1,477)
|
|
(1,583)
|
|
(3,214)
|
|
|
|
|
|
|
|
|
|
other comprehensive
income
|
Loss for
the period
|
|
(1,477)
|
|
(1,583)
|
|
(3,214)
|
|
Items
that will not be reclassified to profit or loss
|
|
|
|
|
|
|
|
Revaluation of property, plant and
equipment
|
|
-
|
|
-
|
|
(141)
|
|
Related tax
|
|
-
|
|
-
|
|
45
|
|
|
|
-
|
|
-
|
|
(96)
|
|
Items
that may be reclassified subsequently to profit or loss:
|
|
|
|
|
|
|
|
Foreign exchange translation differences
|
|
292
|
|
(780)
|
|
5
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income/(loss) for the period
|
|
292
|
|
(780)
|
|
(91)
|
|
Total
comprehensive loss for the period
|
|
(1,185)
|
|
(2,363)
|
|
(3,305)
|
|
|
|
|
|
|
|
|
|
Loss Attributable
to:
|
|
|
|
|
|
|
|
Owners of
the company
|
|
(1,448)
|
|
(1,598)
|
|
(3,225)
|
|
Non-controlling interest
|
|
(29)
|
|
15
|
|
11
|
|
|
|
(1,477)
|
|
(1,583)
|
|
(3,214)
|
|
Total Comprehensive loss
attributable to:
|
|
|
|
|
|
|
|
Owners of
the company
N
|
|
(1,156)
|
|
(2,378)
|
|
(3,316)
|
|
Non-controlling interest
|
|
(29)
|
|
15
|
|
11
|
|
|
|
(1,185)
|
|
(2,363)
|
|
(3,305)
|
|
|
|
|
|
|
|
|
|
Earnings
per Share
|
|
|
|
|
|
|
|
Basic and
diluted earnings per share (US Cents)
|
4
|
(2.02)
|
|
(2.22)
|
|
(4.49)
|
Consolidated statement of financial
position
|
|
|
|
|
30
September
2024
Unaudited
|
|
30
September
2023
Unaudited
|
|
31
March
2024
Audited
|
|
|
|
|
|
|
|
Restated
|
|
|
|
|
|
Note
|
|
US$000
|
|
US$000
|
|
US$000
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
24,719
|
|
24,382
|
|
24,968
|
|
Intangible assets
|
|
|
|
-
|
|
1
|
|
-
|
|
|
|
|
|
24,719
|
|
24,383
|
|
24,968
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Biological assets
|
|
|
|
31
|
|
292
|
|
245
|
|
Inventories
|
|
|
|
4,722
|
|
2,857
|
|
616
|
|
Trade and other
receivables
|
|
|
|
308
|
|
1,632
|
|
1,949
|
|
Cash and cash equivalents
|
|
|
|
500
|
|
352
|
|
439
|
|
|
|
|
|
5,561
|
|
5,133
|
|
3,249
|
|
Total assets
|
|
|
|
30,280
|
|
29,516
|
|
28,217
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
5
|
|
130
|
|
1,179
|
|
130
|
|
Trade and other payables
|
|
|
|
3,883
|
|
2,665
|
|
1,217
|
|
|
|
|
|
4,013
|
|
3,844
|
|
1,347
|
|
Net current assets
|
|
|
|
1,548
|
|
1,289
|
|
1,902
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
5
|
|
14,721
|
|
11,820
|
|
14,138
|
|
Deferred tax liability
|
|
|
|
5,936
|
|
6,115
|
|
5,937
|
|
|
|
|
|
20,657
|
|
17,935
|
|
20,075
|
|
Total liabilities
|
|
|
|
24,670
|
|
21,779
|
|
21,422
|
|
|
|
|
|
|
|
|
|
|
|
Net assets
|
|
|
|
5,610
|
|
7,737
|
|
6,795
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
6
|
|
56,694
|
|
63,343
|
|
56,694
|
|
Share premium
|
|
6
|
|
-
|
|
-
|
|
-
|
|
Share based payments
reserve
|
|
|
|
67
|
|
67
|
|
67
|
|
Revaluation reserve
|
|
|
|
11,588
|
|
11,935
|
|
11,714
|
|
Translation reserve
|
|
|
|
(15,872)
|
|
(16,981)
|
|
(16,164)
|
|
Accumulated losses
|
|
|
|
(46,942)
|
|
(50,735)
|
|
(45,620)
|
|
Non-controlling interest
|
|
|
|
75
|
|
108
|
|
104
|
|
Equity attributable to equity holders of the
parent
|
|
|
|
5,610
|
|
7,737
|
|
6,795
|
|
|
|
|
|
|
|
|
|
|
The unaudited condensed
consolidated financial statements of Agriterra Limited for the six
months ended 30 September 2024 were approved by the Board of
Directors and authorised for issue on 9 December 2024.
Signed on behalf of the Board of
Directors:
Consolidated statement of changes
in equity
|
|
|
|
Share
capital
|
|
Share
premium
|
|
Share
based payment reserve
|
|
Translation reserve
|
|
Revaluation reserve
|
|
Accumulated
losses
|
|
Non-Controlling Interest
|
|
Total
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
1 April 2023
|
3,993
|
|
151,419
|
|
67
|
|
(16,169)
|
|
12,061
|
|
(141,364)
|
|
-
|
|
10,007
|
|
Loss for
the period
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,598)
|
|
15
|
|
(1,583)
|
|
Other
comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
translation loss on foreign operations restated
|
-
|
|
-
|
|
-
|
|
(780)
|
|
-
|
|
-
|
|
-
|
|
(780)
|
|
Total
comprehensive loss for the period
|
-
|
|
-
|
|
-
|
|
(780)
|
|
-
|
|
(1,598)
|
|
15
|
|
(2,363)
|
|
Transactions with owners
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of subsidiary with
NCI
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
93
|
|
93
|
|
Reclassification
|
|
|
59,350
|
|
(151,419)
|
|
-
|
|
-
|
|
-
|
|
92,069
|
|
-
|
|
-
|
|
Revaluation surplus realised
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(126)
|
|
126
|
|
-
|
|
-
|
|
Total transaction with owners for the
period
|
|
|
59,350
|
|
(151,419)
|
|
-
|
|
-
|
|
(126)
|
|
92,195
|
|
93
|
|
93
|
|
Balance at 30 September 2023
|
|
|
63,343
|
|
-
|
|
67
|
|
(16,949)
|
|
11,935
|
|
(50,767)
|
|
108
|
|
7,737
|
|
Loss for the period
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,627)
|
|
(4)
|
|
(1,631)
|
|
Other
comprehensive income:
Revaluation of property, plant and equipment (net)
|
-
|
|
-
|
|
-
|
|
-
|
|
(96)
|
|
-
|
|
-
|
|
(96)
|
|
Exchange translation gain on foreign
operations
|
|
-
|
|
-
|
|
-
|
|
785
|
|
-
|
|
-
|
|
-
|
|
785
|
|
Total
comprehensive loss for the period
|
|
-
|
|
-
|
|
-
|
|
785
|
|
(96)
|
|
(1,627)
|
|
(4)
|
|
(942)
|
|
Transactions with owners
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification
|
|
|
(6,649)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,649
|
|
-
|
|
-
|
|
Revaluation surplus
realised
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(125)
|
|
125
|
|
-
|
|
-
|
|
Total
transactions with owners for the period
|
(6,649)
|
|
-
|
|
-
|
|
-
|
|
(125)
|
|
6,774
|
|
-
|
|
-
|
|
Balance at 31 March
2024
|
56,694
|
|
-
|
|
67
|
|
(16,164)
|
|
11,714
|
|
(45,620)
|
|
104
|
|
6,795
|
|
Loss for
the period
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,448)
|
|
(29)
|
|
(1,477)
|
|
Other
comprehensive income:
Exchange
translation gain on foreign operations
|
-
|
|
-
|
|
-
|
|
292
|
|
-
|
|
-
|
|
-
|
|
292
|
|
Total
comprehensive loss for the period
|
-
|
|
-
|
|
-
|
|
292
|
|
-
|
|
(1,448)
|
|
(29)
|
|
(1,185)
|
|
Transactions with owners
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation surplus
realised
|
-
|
|
-
|
|
-
|
|
-
|
|
(126)
|
|
126
|
|
-
|
|
-
|
|
Total transactions with owners for
the period
|
-
|
|
-
|
|
-
|
|
-
|
|
(126)
|
|
126
|
|
-
|
|
-
|
|
Balance at 30 September
2024
|
56,694
|
|
-
|
|
67
|
|
(15,872)
|
|
11,588
|
|
(46,942)
|
|
75
|
|
5,610
|
Consolidated cash flow
statement
|
|
Note
|
|
6 months
ended
30
September
2024
Unaudited
|
|
6 months
ended
30
September
2023
Unaudited
|
|
Year
ended
31
March
2024
Audited
|
|
|
|
|
|
|
Restated
|
|
|
|
|
|
|
US$000
|
|
US$000
|
|
US$000
|
|
|
|
|
|
|
|
|
|
|
Loss before tax for the
period
|
|
|
(1,477)
|
|
(1,583)
|
|
(3,341)
|
|
Adjustments for:
|
|
|
|
|
|
|
|
|
Amortisation and
depreciation
|
2
|
|
396
|
|
434
|
|
871
|
|
Profit on disposal of property,
plant and equipment
|
|
|
(80)
|
|
-
|
|
(30)
|
|
Impairment of goodwill on
acquisition
|
|
|
-
|
|
-
|
|
12
|
|
Foreign exchange
loss/(gain)
|
|
|
279
|
|
(622)
|
|
(48)
|
|
Changes in value of biological
assets
|
|
|
-
|
|
-
|
|
437
|
|
Net Finance costs
|
|
|
853
|
|
550
|
|
1,488
|
|
Operating cash flows before movements in working
capital
|
|
|
(29)
|
|
(1,221)
|
|
(611)
|
|
Decrease/(increase) in biological
assets
|
|
|
214
|
|
204
|
|
(186)
|
|
(Increase)/decrease in
inventories
|
|
|
(4,106)
|
|
(2,307)
|
|
389
|
|
Decrease/(increase) in trade and
other receivables
|
|
|
1,641
|
|
(582)
|
|
(956)
|
|
Increase/(decrease) in trade and
other payables
|
|
|
2,666
|
|
2,007
|
|
(155)
|
|
Net Cash generated from/ (used in) operating
activities
|
|
|
386
|
|
(1,899)
|
|
(1,519)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
Proceeds from disposal of property,
plant and equipment net of expenses incurred
|
|
|
80
|
|
1
|
|
30
|
|
Acquisition of property, plant and
equipment
|
|
|
(135)
|
|
(511)
|
|
(1,271)
|
|
Acquisition of subsidiary net of
cash acquired
|
|
|
-
|
|
-
|
|
48
|
|
Net cash used in investing activities
|
|
|
(55)
|
|
(510)
|
|
(1,193)
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
|
|
|
|
|
Finance costs
|
3
|
|
(180)
|
|
(167)
|
|
(485)
|
|
Net repayment of loans
|
5
|
|
(90)
|
|
(146)
|
|
(940)
|
|
Net repayment of leases
|
5
|
|
-
|
|
-
|
|
(198)
|
|
Net drawdown of shareholder
loans
|
|
|
-
|
|
2,900
|
|
4,600
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in)/ generated from financing
activities
|
|
|
(270)
|
|
2,587
|
|
2,977
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
61
|
|
178
|
|
265
|
|
Effect of exchange rates on cash and
cash equivalents
|
|
|
-
|
|
-
|
|
-
|
|
Cash and cash equivalents at
beginning of period
|
|
|
439
|
|
174
|
|
174
|
|
Cash and cash equivalents at end of period
|
|
|
500
|
|
352
|
|
439
|
|
|
|
|
|
|
|
|
|
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 St. Peter's House, Rue des Brehauts, St. Pierre du Bois,
Guernsey GY7 9RT.
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 United
States Dollars ('US$' or '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 2024 (the 'H1-2025 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 2024 (available at www.agriterra-ltd.com). The Group does not
anticipate any significant change in these accounting policies for
the year ended 31 March 2025.
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 2024 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 31 March 2024 financial statements concerning the
Group's ability to continue as a going concern which shows that the
Group needs to achieve its operating targets and is reliant on the
continued support from the largest shareholder in order to continue
as a going concern.
The H1-2025 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 H1-2025 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 2024 - Unaudited
|
Grain
|
|
Beef
|
|
Snax
|
|
Unallo-cated
|
|
Elimina-tions
|
|
Total
|
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
(2)
|
2,786
|
|
1,483
|
|
572
|
|
-
|
|
-
|
|
4,841
|
|
Inter-segment sales
(1)
|
197
|
|
-
|
|
-
|
|
-
|
|
(197)
|
|
-
|
|
|
2,983
|
|
1,483
|
|
572
|
|
-
|
|
(197)
|
|
4,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment results
|
|
|
|
|
|
|
|
|
|
|
|
|
- Operating loss
|
(468)
|
|
(80)
|
|
(58)
|
|
(91)
|
|
-
|
|
(697)
|
|
- Interest income
|
77
|
|
-
|
|
-
|
|
-
|
|
(77)
|
|
-
|
|
- Interest expense
|
(180)
|
|
(77)
|
|
-
|
|
(673)
|
|
77
|
|
(853)
|
|
- Other gains and losses
|
73
|
|
-
|
|
-
|
|
-
|
|
-
|
|
73
|
|
Loss before tax
|
(498)
|
|
(157)
|
|
(58)
|
|
(764)
|
|
-
|
|
(1,477)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Loss for the period
|
(498)
|
|
(157)
|
|
(58)
|
|
(764)
|
|
-
|
|
(1,477)
|
|
6 months ended 30 September 2023 -
Unaudited
Restated
|
Grain
|
|
Beef
|
|
Snax
|
|
Unallo-cated
|
|
Elimina-tions
|
|
Total
|
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
(2)
|
2,066
|
|
1,509
|
|
1,032
|
|
-
|
|
-
|
|
4,607
|
|
Inter-segment sales
(1)
|
117
|
|
-
|
|
|
|
-
|
|
(117)
|
|
-
|
|
|
2,183
|
|
1,509
|
|
1,032
|
|
-
|
|
(117)
|
|
4,607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment results
|
|
|
|
|
|
|
|
|
|
|
|
|
- Operating loss
|
(620)
|
|
(316)
|
|
30
|
|
(256)
|
|
-
|
|
(1,162)
|
|
- Interest expense
|
(184)
|
|
(70)
|
|
-
|
|
(296)
|
|
-
|
|
(550)
|
|
- Other gains and losses
|
128
|
|
1
|
|
-
|
|
-
|
|
-
|
|
129
|
|
(Loss)/Profit before
tax
|
(676)
|
|
(385)
|
|
30
|
|
(552)
|
|
-
|
|
(1,583)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(Loss)/Profit for the
period
|
(676)
|
|
(385)
|
|
30
|
|
(552)
|
|
-
|
|
(1,583)
|
The results for the half year
to 30 September 2023 have been restated to
reflect that the Company took control of DECA Snax with effect from
1 April 2023 and accordingly the financial statements of DECA Snax
have been consolidated into the Group accounts for the
period.
|
Year ended 31 March 2024 - Audited
|
Grain
|
|
Beef
|
|
Snax
|
|
Unallo-cated
|
|
Elimina-tions
|
|
Total
|
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
(2)
|
5,354
|
|
2,967
|
|
2,072
|
|
-
|
|
-
|
|
10,393
|
|
Inter-segment sales
(1)
|
816
|
|
-
|
|
-
|
|
-
|
|
(816)
|
|
-
|
|
|
6,170
|
|
2,967
|
|
2,072
|
|
-
|
|
(816)
|
|
10,393
|
|
Segment results
|
|
|
|
|
|
|
|
|
|
|
|
|
- Operating loss
|
(728)
|
|
(963)
|
|
5
|
|
(440)
|
|
-
|
|
(2,126)
|
|
- Interest expense
|
(292)
|
|
(193)
|
|
-
|
|
(1,003)
|
|
-
|
|
(1,488)
|
|
- Other gains and losses
|
237
|
|
4
|
|
18
|
|
14
|
|
-
|
|
273
|
|
- Share of profit in
equity-accounted investees
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(Loss)/Profit before
tax
|
(783)
|
|
(1,152)
|
|
23
|
|
(1,429)
|
|
-
|
|
(3,341)
|
|
Income tax
|
115
|
|
12
|
|
-
|
|
-
|
|
-
|
|
127
|
|
(Loss)/Profit after tax
|
(668)
|
|
(1,140)
|
|
23
|
|
(1,429)
|
|
-
|
|
(3,214)
|
(1) Inter-segment
sales are charged at prevailing market prices
(2) Revenue
represents sales to external customers and is recorded in the
country of domicile of the Company making the sales. Sales from the
Grain, Beef and Snax 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
|
|
Snax
|
|
Unallo-cated
|
|
Elimina-tions
|
|
Total
|
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
6
months ended 30 September 2024 - Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortisation
|
235
|
|
121
|
|
40
|
|
-
|
|
-
|
|
396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 months ended 30 September 2023 -
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortisation
|
236
|
|
160
|
|
38
|
|
-
|
|
-
|
|
434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 31 March 2024 -
Audited
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortisation
|
470
|
|
326
|
|
75
|
|
-
|
|
-
|
|
871
|
3. NET FINANCE
COSTS
|
|
|
6 months
ended
30
September
2024
Unaudited
|
|
6 months
ended
30
September
2023
Unaudited
|
|
Year
ended
31
March
2024
Audited
|
|
|
|
US$000
|
|
US$000
|
|
US$000
|
|
Interest expense:
|
|
|
|
|
|
|
|
Bank loans, overdrafts and finance
leases
|
|
180
|
|
166
|
|
485
|
|
Shareholder loans
|
|
673
|
|
384
|
|
1,003
|
|
Interest income:
|
|
|
|
|
|
|
|
Bank deposits
|
|
-
|
|
-
|
|
-
|
|
|
|
853
|
|
550
|
|
1,488
|
|
|
|
|
|
|
|
|
4. LOSS per
share
|
The
calculation of the basic and diluted loss per share is based on the
following data:
|
|
|
|
6 months
ended
|
|
6
months
ended
|
|
Year
ended
|
|
|
|
30
September
|
|
30
September
|
|
31
March
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
|
|
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
|
|
(1,448)
|
|
(1,598)
|
|
(3,225)
|
|
|
|
|
|
|
|
|
|
Weighted
average number of Ordinary Shares for the purposes of basic and
diluted loss per share
|
|
71,829,007
|
|
71,829,007
|
|
71,829,007
|
|
|
|
|
|
|
|
|
|
Basic and
diluted loss per share - US cents
|
|
(2.02)
|
|
(2.22)
|
|
(4.49)
|
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
2024
|
|
30
September 2023
|
|
31
March
2024
|
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
|
US$000
|
|
US$000
|
|
US$000
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
Shareholder loans
|
14,310
|
|
11,317
|
|
13,637
|
|
Bank loans
|
411
|
|
503
|
|
501
|
|
Leases
|
-
|
|
-
|
|
-
|
|
|
14,721
|
|
11,820
|
|
14,138
|
|
Current
|
|
|
|
|
|
|
Overdrafts
|
-
|
|
-
|
|
-
|
|
Bank loans
|
130
|
|
1,058
|
|
130
|
|
Leases
|
-
|
|
121
|
|
-
|
|
|
130
|
|
1,179
|
|
130
|
|
|
|
|
|
|
|
|
|
14,851
|
|
12,999
|
|
14,268
|
Group
During the period, Agriterra Limited
secured shareholder loans amounting to $Nil (2024: US$4.6 million)
from Chepstow Investments Limited at an interest rate of SOFR+6%. A
portion of these loans was used to repay commercial borrowings in
Mozambique which were charged interest above 18% per annum. The
shareholder loans are made up of:
· US$
6.1m convertible loan facility with a 3-year tenure maturing in
July 2025.
· US$
1.8m convertible loan facility with a 12-month tenure maturing in
July 2023, which was renewed for the same period in July 2024 and
renewed again for the same period after year end to July
2025.
· US$
2.0m convertible loan facility with a 12-month tenure maturing in
August 2024 and was renewed for the same period after year end to
August 2025.
· US$
1.7m loan facility with a 12-month tenure maturing in November
2024, with the option to renew for a further 12-month period at
that date.
· US$
0.9m loan facility maturing on 31 March 2026, with the option to
extend for a further 12-month period at that date.
In the event of default or at the
option of the lender, the outstanding principal and interest may be
converted into new ordinary shares at the prevailing market price
of the Company`s shares at such time. The market price is
determined by the 10-day VWAP. The difference between the 10-day
VWAP and the closing market price is a derivative liability the
value of which is not considered to be material. Accordingly, the
principal of the convertible loans has been recorded in full as a
financial liability.
All shareholder loans have been
classified as non-current as they are subordinated to bank loans
and would not be repaid before the bank loans have been repaid. In
addition, the shareholder loans can be renewed for further periods
based on a request from the Company at the time of
maturity.
Grain division
At 30 September 2024, the Grain
division has one outstanding commercial bank loan amounting to US$
0.54 million secured by land and buildings valued at US$ 6.1
million.
Beef division
Beef division does not have any
finance facilities as at 30 September 2024.
Reconciliation to cash flow statement
|
|
At 31
March
2024
|
|
Cash flow
|
|
Interest
accrued
|
|
Foreign
Exchange
|
|
At 30 September
2024
|
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
US$000
|
|
Non-current shareholder
loans
|
13,637
|
|
-
|
|
673
|
|
-
|
|
14,310
|
|
Non-current bank
loans
|
501
|
|
(90)
|
|
-
|
|
-
|
|
411
|
|
Current bank
loans
|
130
|
|
-
|
|
-
|
|
-
|
|
130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,268
|
|
(90)
|
|
673
|
|
-
|
|
14,851
|
|
|
|
|
|
|
|
|
|
|
|
6. Share
capital
|
|
|
Authorised
|
|
Allotted and fully
paid
|
|
|
|
|
|
Number
|
|
Number
|
|
US$000
|
|
Ordinary Shares
|
|
|
|
|
|
|
|
At 30 September 2023
|
|
74,038,389
|
|
71,829,007
|
|
63,105
|
|
Reclassification
|
|
-
|
|
-
|
|
(6,649)
|
|
31
March 2024 and 30 September 2024
|
|
74,038,389
|
|
71,829,007
|
|
56,456
|
|
Deferred shares of 0.1p each
|
|
|
|
|
|
|
|
At 30 September 2023, 31 March 2024
and 30 September 2024
|
|
155,000,000
|
|
155,000,000
|
|
238
|
|
Total Share Capital
|
|
229,038,389
|
|
226,829,007
|
|
56,694
|
|
|
|
|
|
|
|
|
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 £1,000,000 per ordinary share. The deferred shares may be
converted into ordinary shares by resolution of the
Board.