DECA

Final Results

RNS Number : 6604Q
Agriterra Ltd
24 October 2011
 



Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture

24 October 2011

Agriterra Ltd ('Agriterra' or 'the Group')

Final Results

 

Agriterra Ltd, the AIM listed company focussed on the agricultural sector in Africa, announces its results for the year ended 31 May 2011.

 

OVERVIEW

 

·    Substantial organic growth across cattle ranching and maize processing division, and entrance into the cocoa market following the acquisition of Tropical Farms Limited

·    55% increase in turnover to $13.6m (2010: $8.8m) and total maize meal sales up 56% to 28,822 tonnes (2010: 18,496 tonnes)

·    Initial revenue generated from beef business - feedlot in operation and first sales achieved an average of $835 per carcass

·    Rapid growth in beef herd to 2,350 head including a 560 head top quality Beefmaster breeding herd

·    Hydroelectric dam capable of irrigating 4,000 hectares at Mavonde under construction and due for completion by the end of 2011

·    Construction of abattoir commenced and due for completion in Q2 2012 - capacity of 4,000 head per month

 

CHAIRMAN'S STATEMENT

 

This has been a highly active period for the Group, marked by both substantial organic growth across our existing beef and maize divisions, and post year end, through product and geographic diversification in the form of our new cocoa farm management, buying and trading business.

 

At Mozbife Limitada ('Mozbife'), the cattle ranching business, we have invested significantly during the year and continue to do so post year end.  This has translated into the growth of our total herd, now standing at 2,350, achieved despite the temporary import restrictions of cattle from South Africa which constrained the development of our Beefmaster breeding herd.  Our total land holdings now stand at over 16,000 hectares, which includes the 1,000 hectare Mavonde Stud Ranch, which supports the Beefmaster breeding herd, the 15,000 hectare Dombe ranch on which a Use of Development of Land licence ('DUAT') was granted by the Government of Mozambique in the year and over 700 hectares at the Vanduzi feedlot operations.

 

At Mavonde, we are in the process of constructing the Mavonde dam which will eventually facilitate the irrigation of up to 4,000 hectares of pasture.  To this end we are investigating the possible acquisition of additional neighbouring land.

 

Our strategy of becoming a vertically integrated beef producer is progressing.  Phase 1 of our Vanduzi feedlot project has been completed, while the construction of the abattoir with a capacity of 4,000 head per month continues with commissioning expected in Q2 2012.  In addition to product from our own herds, throughput for the feedlot and abattoir will be supplemented using cattle bought in from local communities, building on the Group's experience from our well established maize buying operation. 

 

The abattoir is a key facet in establishing ourselves as a "field to fork" producer in order to maximise the benefits from a full value chain.  With this in mind, we believe Mozbife has the potential to be a high margin business capable of generating substantial recurring revenue for the Agriterra group. 

 

Our maize buying and milling operations at Desenvolvimento E Comercialização Agricola Limitada ('DECA') and Compagri Limitada ('Compagri') have performed strongly during the year with total sales increasing by 55% from the previous year to US$13.6 million while combined sales of meal from both facilities totalled 28,822 tonnes over the year, an increase of 56% on the previous year.  The synergies between our maize operations and our beef division are already providing economic benefits, as bran, the by-product of the milling processes, is in part used as a feed supplement for the Vanduzi feedlots.

 

The acquisition of Sierra Leone based Tropical Farms Limited ('TFL'), post year end, is a significant new addition to our product range.  The board believes that cocoa represents an exciting opportunity for the Group given the strengthening global demand, in particular for sustainable and traceable cocoa.  TFL, which at present is a buying and trading operation, provides the ideal conduit to branch out into cocoa production in West Africa.  At present, our energies are focussed on implementing new initiatives to help increase yields for our out-growers, thereby improving our volumes, margins and profitability in Sierra Leone.  These initiatives, which include the implementation of modern farm management techniques and farmer incentive schemes, have proved to be extremely successful at our maize facilities in Mozambique, and with this in mind, the board is confident that similar results can be achieved with cocoa production in Sierra Leone and the wider region.  The Group is also actively pursuing opportunities to acquire plantation land to further secure the supply of sustainable and traceable cocoa.

 

Financial Results

 

The Group is investing heavily in its cattle ranching division and in line with this, the Group is reporting a pre-tax loss of US$2.2m (2010: pre-tax loss of US$3.9m) on turnover of US$13.6m (2010: US$8.8m).  Cash balances at the period end remained healthy at $8.2m (2010: $3.4m).  In addition the Group had approximately 11,074 tonnes of maize in stock at the end of the period, ready to be processed and sold.

 

Outlook

 

The development of our integrated grain and beef businesses in Mozambique is progressing extremely well.  Our initial beef sales have been exceptionally well received locally in Mozambique where demand can currently only be satisfied by imports.  The growth in local demand will be further enhanced by significant investment in the resources sector.  Geographically, Mozambique is also well placed to service export markets in the near and far east where demand for beef along with other agricultural product is expected to grow substantially.

 

Using our experience in Mozambique, the board believe that cocoa in West Africa represents a significant opportunity to develop our product range in a sector that is expected to benefit from increased demand with the emergence of a thriving middle class across the developing world.  The Group's strategy to establish itself as a secure, sustainable and traceable source of supply is well timed to meet the requirements of the major cocoa consumers who are placing increased emphasis in this area.

 

Finally, on behalf of the board, I would like to thank all of those whose dedication over the year has contributed to Agriterra's achievements, and also to our shareholders, whose continued support of the Group has helped us reach this transformational phase in the Group's life. 

 

Phil Edmonds

Chairman

21 October 2011



 

 

OPERATIONS REVIEW

 

Mozbife

 

Our beef division has enjoyed rapid growth over the year, and this remains a key area of investment for the Group.  In addition to rapidly expanding our breeding herd, with a target of reaching 10,000 head in the medium term, we have also made significant strides in establishing Mozbife as a "field to fork" producer, enabling Mozbife to benefit from the downstream value of directly supplying our meat products to the consumer.

 

A key focus at our 1,000 hectare Mavonde stud ranch has been the construction of a dam, which is on schedule to be completed in December 2011.  Once finished, the dam will hold 48 billion litres of water, making it the second largest dam in the Manica Province of Mozambique.  The dam will have the capacity to irrigate in excess of 4,000 hectares, and in line with this, Mozbife is currently in negotiations to acquire additional land to enlarge the Mavonde ranch to 5,000 hectares.  With full irrigation, the head to hectare ratio at Mavonde will be able to be increased from 1.5 to 7 head per hectare.  Importantly, the dam will also provide 132kV of hydroelectric power for the Mavonde project which will reduce costs significantly by providing power for the irrigation pumps.

 

Clearing at Mavonde continues with 400 hectares now cleared and stocked with 560 high quality Beefmaster cattle, which are prized for their top weight gaining ability and quality of meat, in addition to their adaptability to hot climates.  A successful breeding season has resulted in pregnancy rates continuing to exceed 80%.  A further 200 Beefmasters have also been purchased in South Africa and are due for delivery in December 2011 in order for our total herd to continue to grow and reach 5,000 head by the end of 2012.

 

Investment at the 15,000 hectare Dombe ranch continues to be focussed on infrastructure, with the construction of paddocks, 80km of road and fencing well underway, as well as additional water boreholes for irrigation during particularly dry periods.  The DUAT for the Dombe Ranch has also been received, which extends our lease on the property for a further 50 years.  Cattle are currently being bought in from local communities, using a similar model to that established by Agriterra's maize out-grower business, in order to supplement the current herd which stands at 2,350 head.  These additional cattle are being bought in to rapidly build the total herd across the two ranches, where the Group holds long leased land capable of supporting in excess of 20,000 head. 

 

Additional investment has been focussed on the Vanduzi feedlot project, located near the town of Chimoio in central Mozambique.  Phase 1 of the project has been completed with the construction of a six pen line, with each pen having capacity for 160 cattle.  This provides a rolling capacity of approximately 1,000 head every three months.  There are currently 600 head on the feedlot, made up of a mixture of Brahmin, Beefmaster, Jersey and local cattle.  An additional six pen feedlot line is under construction, with completion targeted for November 2011 which will double the current rolling capacity to 2,000 head every three months.  Sales of cattle from the feedlot have commenced with volumes expected to increase as recent purchases move through the 90 day feedlot cycle.  An average price of $835 per carcass has been achieved to date.  In addition, the neighbouring farm has been acquired by Agriterra in order to augment our total feed cropping and pasture capability, raising the total land suitable for planting to 700 hectares.

 

Construction of the abattoir at Chimoio is progressing well.  The foundations at the 73m by 29m site are finished as is the erection of the external structure.  The internal work is now underway, which is targeting a 4,000 head per month processing rate.  Mozbife is also installing a goat processing line.  Construction is expected to be finished in May 2012 ahead of commissioning in Q2 2012.

 

Maize Processing - DECA and Compagri

 

Agriterra's maize processing and farming operations continue to generate significant revenues for the Group, and remain key components of our wider agricultural strategy.  The year under review has seen our DECA and Compagri facilities, located in Chimoio in central Mozambique and Tete in northern-west Mozambique respectively, continue to perform strongly and achieve record breaking successes.

 

Record maize sales were achieved by DECA and Compagri during the year, with total sales increasing by 55% on the previous year to US$13.6 million (2010: US$8.8 million).  Combined sales of meal from both facilities totalled 28,822 tonnes over the period, an increase of 56% on previous full year (2010: 18,496 tonnes).  These figures have vastly improved from last year due to the advent of milling at Compagri, which is now performing well in the export market. 

 

Mozambique suffered from a poor harvest during the 2010/2011 season, which resulted in higher sales albeit at lower volumes acquired domestically.  This situation led to a reduction in maize purchased to 25,185 tonnes, however the outlook remains buoyant with the current buying season commencing strongly with 6,000 tonnes secured before the year end and 34,000 tonnes acquired in total to date.  This provides Agriterra with a very strong position as we look to the next ramp up in sales which we expect in November-December 2011 due to the cyclical nature of maize production and harvest.

 

I am confident that both our DECA and Compagri facilities are well placed to continue to grow thanks to the highly recognisable and well respected brand that we have established during our seven years of maize operations in Mozambique, as well as a highly efficient buying infrastructure across our regions of focus.  Our Compagri facility in particular offers a great deal of potential growth due to the rapid increase in population density in that region of Mozambique, as a result of the current mining boom in Tete and its hinterland.

 

Tropical Farms Limited

 

Post year end, the Group acquired Sierra Leone based Tropical Farms Limited ('TFL'), enabling the Group to further diversify in terms of product and geographically.  TFL has provided the Group with a platform from which to expand into cocoa production by making use of TFL's regional expertise and established buying operations in West Africa.  The board understands the importance of forging long term relationships with farmers and out-growers, implementing farm management initiatives in order to maintain a sustainable and traceable supply of cocoa, and in time, we hope to supplement this production through the development of Agriterra's own cocoa plantations. 

 

TFL has expanded from four to eleven buying centres and has a direct buying register of approximately 2,000 farmers across Sierra Leone.  It is our intention to develop additional community buying centres, as well as solar and batch drying and fermentation facilities. The board expect that such investment will increase total buying capacity as well as guarantee supplies of cocoa.  Importantly, TFL's buying model enables the origins of supplies to be traced without the need for local agents.

 

TFL is in the process of acquiring land near Freetown to construct a continuous cocoa drying, coffee processing and warehousing facility. The warehouse will also comprise a collateralised management warehouse facility providing security for trade finance for TFL's cocoa.  This facility could be extended to cover other agricultural produce and be made available to third parties in due course.

 

In keeping with Agriterra's beef and maize businesses, the Board intends to transform TFL into a vertically integrated business, utilising a 'tree to market-place' business model.  As well as organic development, the Board is currently evaluating additional acquisition opportunities from which to expand its activities.

 

A key instigator of the growth strategy for our cocoa business is Adrian Simpson, managing director of TFL.  Adrian has 25 years' international experience in the commodities and risk management trade, including nine years at E D & F Man where he spent four years running a large cocoa buying operation in the Cote D'Ivoire and six years at Drum Resource Ltd, a London based company founded by Adrian that focussed on trading and international risk management for the commodity trade.  I am confident that Adrian will play a key role in the development of our newly formed cocoa division as we build our presence in the sector across West Africa.

 

Euan Kay

Executive Director

21 October 2011

 

 

For further information please visit www.agriterra-ltd.com or contact:

Andrew Groves

Agriterra Ltd

Tel: +44 (0) 20 7408 9200

Jonathan Wright

Seymour Pierce Ltd

Tel: +44 (0) 20 7107 8000

David Foreman

Seymour Pierce Ltd

Tel: +44 (0) 20 7107 8000

Nick Stone

Matrix Corporate Capital LLP

Tel: +44 (0) 20 3206 7000

Hugo de Salis

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

Susie Geliher

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

 

 

 

 

CONSOLIDATED INCOME STATEMENT

For the year ended 31 May 2011

 




Year

ended

31 May


Year

ended

31 May




2011


2010

Continuing Operations

Note


$'000


$'000







Revenue



13,588


8,791

Increase in value of biological assets

5


214


22

Cost of sales



(10,372)


(7,371)







Gross profit



3,430


1,442







Operating expenses



(6,109)


(5,686)

Other income



349


386







Operating loss



(2,330)


(3,858)







Finance income



159


106

Finance costs



-


(152)







Loss before taxation



(2,171)


(3,904)







Income tax expense

3


(168)


-







Loss after  tax

 

 


(2,339)


(3,904)







Discontinued operations






Loss for the year



(89)


(920)







Loss for the year attributable to owners of the parent

 

 


 

(2,428)


 

(4,824)







Loss per share






- Basic and diluted (cents)

4


(0.4c)


(0.9c)







Loss per share from continuing operations






- Basic and diluted (cents)

4


(0.4c)


(0.8c)

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 May 2011

 



Year

 ended

31 May


Year

 ended

31 May



2011


2010



$'000


$'000






Loss for the year


(2,428)


(4,824)






Foreign exchange translation differences


3,399


(6,005)






Other comprehensive income for the year


3,399


(6,005)






Total comprehensive income for the year

attributable to owners of the parent company


 

971


 

(10,829)






 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 May

 

 




2011


2010


Note


$'000


$'000







ASSETS






Non-current assets






Intangible assets



271


-

Property, plant and equipment



13,264


9,986

Investments



-


114

Biological assets

5


631


236

Total non-current assets



14,166


10,336







Current assets






Biological assets

5


157


-

Inventories



2,976


4,605

Trade and other receivables



2,039


1,019

Cash and cash equivalents



8,172


3,442

Total current assets



13,344


9,066







TOTAL ASSETS



27,510


19,402







LIABILITIES






Current liabilities






Trade and other payables



(2,678)


(2,176)







NET ASSETS



24,832


17,226







EQUITY






Issued capital

6


1,387


1,161

Share premium



131,593


125,184

Share based payment reserve



1,360


1,360

Translation reserve



(1,782)


(5,181)

Retained earnings



(107,726)


(105,298)






TOTAL EQUITY ATTRIBUTABLE TO

OWNERS OF THE PARENT


 

24,832


 

17,226


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

As at 31 May 2011

 

 

Ordinary share capital

$'000

Deferred share capital

$'000

Share premium

$'000

Share based payment reserve

$'000

Translation reserve

$'000

Retained earnings

$'000

 

Total

$'000

Balances at 1 June 2009

801

238

119,349

1,281

824

(99,513)

22,980

Loss for the year

-

-

-

-

-

(4,824)

(4,824)

Other comprehensive income








Exchange translation differences on foreign operations

-

-

-

-

(6,005)

-

(6,005)

Total comprehensive income for the year

 

-

-

-

-

(6,005)

(4,824)

(10,829)

Transactions with owners








Share based payment charge

-

-

-

79

-

-

79

Acquisition of minority

-

-

-

-

-

(961)

(961)

Share issues

122

-

6,107

-

-

-

6,229

Issue costs

-

-

(272)

-

-

-

(272)

Total transactions with owners

 

122

-

5,835

79

-

(961)

5,075

Balances at 31 May 2010

923

238

125,184

1,360

(5,181)

(105,298)

17,226









Loss for the year

-

-

-

-

-

(2,428)

(2,428)

Other comprehensive income








Exchange translation differences on foreign operations

-

-

-

-

3,399

-

3,399

Total comprehensive income for the year

 

Transactions with owners

-

-


-

3,399

(2,428)

971

Share issues

226

-

6,570

-

-

-

6,796

Issue costs

-

-

(161)

-

-

-

(161)

Total transactions with owners

226

-

6,409

-

-

-

6,635

Balances at 31 May 2011

1,149

238

131,593

1,360

(1,782)

(107,726)

24,832

 

 

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 May 2011

 




Year ended

31 May


Year ended

31 May




2011


2010




$'000


$'000







Operating activities






Loss before tax



(2,171)


(3,904)

Adjustments for:






- Depreciation of property, plant and equipment



1,228


1,359

- Loss/(profit) on disposal of property, plant and equipment


5


(20)

- Share based payment charge



-


79

- Foreign exchange



(355)


(42)

- Net interest (income) / expense



(159)


46

Operating cash flow before movements in working capital

(1,452)


(2,482)

Working capital adjustments:






- Decrease / (increase) in inventory



1,973


(3,182)

- Increase in receivables



(547)


(523)

- Increase / (decrease) in payables



261


(506)

Cash from / (used in) operations



235


(6,693)

Finance charges



-


(152)

Interest received



159


106

Net cash from / (used in) continuing operating activities

394


(6,739)

Net cash outflow from discontinued activities



(198)


(783)

Net cash from / (used in) operating activities



196


(7,522)







Taxation






Corporate tax paid



(38)


-

Net cash outflow from taxation



(38)


-







Investing activities






Purchase of intangible asset



(250)


             -

Purchase of property, plant and equipment



(2,568)


(1,346)

Proceeds on sale of property, plant and equipment



38


135

Purchase of biological assets



(255)


(64)

Proceeds on sale / (purchase) of investment in financial assets


128


(125)

Net cash used in investing in continuing activities



(2,907)


(1,400)

Net cash from investing in discontinued activities

-


3

Net cash used in investing activities



(2,907)


(1,397)







Financing activities






Proceeds from issue of share capital



6,883


5,082

Share issue costs



(161)


(272)

Draw down of related party loan



-


225

Repayment of related party loan



-


(225)

Net cash from financing activities



6,722


4,810







Net increase / (decrease) in cash and cash equivalents


3,973


(4,109)







Cash and cash equivalents at start of the year



3,442


8,517







Exchange rate adjustment



757


(966)







Cash and cash equivalents at end of the year



8,172


3,442

 

 

 

 

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 May 2011

 

1. General Information

Agriterra Limited is incorporated and domiciled in Guernsey.  The nature of the Group's operations and its principal activities are set out in the Chairman's Statement and Operations Overview above.

 

The financial information set out above for the years ended 31 May 2011 and 2010 does not constitute the Group's statutory accounts but is derived from those accounts.  Statutory accounts for the year ended 31 May 2011 have been reported on by the Group's auditors and contain an unqualified opinion. The results have been prepared using accounting policies consistent with those used in the preparation of the statutory accounts.

 

The reporting currency for the Group is the U.S. Dollar (USD) as it better reflects the Group's business activities in the agricultural sector in Africa.  Full statutory financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union. 

 

The full audit report is contained in the Company's Annual Report, which will be available on the Company's website by 30 November 2011.

 

2. Critical accounting estimates and judgments

 

The preparation of financial statements in conformity with EU adopted IFRS requires the use of certain critical accounting estimates.  It also requires management to exercise its judgement in the process of applying the Group's accounting policies.  The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

 

Impairments

Impairment reviews on non-current assets are carried out on each cash-generating unit identified in accordance with IAS 36 "Impairment of Assets".  At each reporting date, where there are indicators of impairment, the net book value of the cash generating unit is compared with the associated fair value.

 

On 6 January 2009, the shareholders approved the adoption of the investing strategy to acquire or invest in businesses or projects operating in the agricultural and associated civil engineering industries in Southern Africa.

 

The directors decided to suspend exploration activities and reduce expenditure to the minimum required in order to retain exploration licenses.  Consequently the directors consider that the value of exploration and evaluation and other related assets of $79,580,000 is fully impaired. 

 

Biological assets

Biological assets (cattle) are measured at their fair value at each balance sheet date. The fair value of cattle is based on the estimated market value for cattle of a similar age and breed, less the estimated costs to bring them to market.  Changes in any estimates could lead to recognition of significant fair value changes in the income statement.  At 31 May 2011 the value of the breeding herd disclosed as a non-current asset was $631,000 (2010: $236,000). The value of the herd held for slaughter disclosed as a current asset was $157,000 (2010:$ nil).



 

3. Income tax expense


2011


2010


$'000


$'000





Loss before tax from continuing activities:

(2,171)


(3,904)





Tax at the Mozambican corporation tax rate 32% (2010: 32%)

(695)


(1,249)

Tax effect of expenses that are not deductible in determining taxable profit

21


3

Tax effect of utilisation of losses

(90)


-

Tax effect of losses not allowable

341


587

Tax effect of losses not recognised in overseas subsidiaries (net of effect of different rates)

503


659

Charge in respect of prior years

88


-





Tax expense for the year

168


-

 

The tax reconciliation has been prepared using a 32% tax rate, the corporate income tax rate in Mozambique, as this is where the Group's principal assets of its continuing operations are located. 

 

4. Earnings per share

 

The calculation of the basic and diluted earnings per share is based on the following data:

 


2011


2010


$'000


$'000





Loss for the purposes of basic earnings per share (loss for the year attributable to equity holders of the parent)

2,428


4,824

Loss for the purposes of basic earnings per share from continuing activities

2,339


3,904

Loss for the purposes of basic earnings per share from discontinued activities

89


920





Number of shares








Weighted average number of ordinary shares for the purposes of basic and diluted loss per share

625,894,111


515,129,499





Loss per share

0.4c


0.9c

Loss per share from continuing activities

0.4c


0.8c

 

Due to the loss incurred in the year, there is no dilutive effect of share options.

 

 

 

5. Biological assets







$'000





At 1 June 2009



207

Purchase of biological assets



64

Change in fair value



22

Foreign exchange



(57)

Balance at 1 June 2010



236





Purchase of biological assets



289

Sale of biological assets



(34)

Change in fair value



214

Foreign exchange



83

Balance at 31 May 2011



788

 

Biological assets comprise a breeding herd of cattle.  Certain livestock is held for slaughter and has been classified as a current asset.  The remainder is expected to be held for more than one year and has been classified as a non-current asset, as follows:

 



2011

2010

2011

2010



Head

Head

$'000

$'000







Non-current asset


1,153

400

631

236

Current asset


292

-

157

-



1,445

400

788

236

 

 

The change in fair value has been included in cost of sales in the income statement. 

 

6. Share capital

 



Group and company



Authorised

Allotted and fully paid

Ordinary shares of 0.1p each

Number

Number

$'000





At 1 June 2009

2,345,000,000

473,821,554

801

Issue of shares

-

73,950,000

122

At 1 June 2010

2,345,000,000

547,771,554

923

Issue of shares

-

145,483,334

226

At 31 May 2011

2,345,000,000

693,254,888

1,149

 

Deferred shares of 0.1p each




At 1 June 2009, 2010 and 31 May 2011

155,000,000

155,000,000

238

 

Total share capital




At 31 May 2011

2,500,000,000

848,254,888

1,387

At 31 May 2010

2,500,000,000

702,771,554

1,161

 

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.  In the event that disputes over certain oil and gas assets are satisfactorily resolved, the deferred shares may be converted into ordinary shares by resolution of the board.

 

On 31 October 2009, the Company issued 63,950,000 ordinary shares of 0.1p each for cash at 5p per share raising gross cash proceeds of $5m to provide funding for the development of its agricultural activities.

 

On 23 December 2009 the Company issued 10,000,000 ordinary shares of 0.1p each as consideration shares for the acquisition of the 25% minority interest of the issued share capital of DECA, Compagri and Mozbife.

 

On 16 November 2010 the Company issued 145,483,334 ordinary shares of 0.1p each for cash at 3p per share raising gross cash proceeds of $6.9m to provide funding for the continued development of the Company's cattle ranching and feedlot production business in Mozambique

 

7. Post balance sheet events

 

On 13 July 2011, the Company through its wholly owned subsidiary West Africa Cocoa Services Limited, acquired the entire issued share capital of Tropical Farms Limited ("TFL"), a cocoa company in Sierra Leone. 

 

TFL has established a high quality, sustainable and traceable cocoa buying operation.  There are four buying centres in operation and a direct buying register of approximately 2,000 cocoa farmers.  In addition to the existing infrastructure and sourcing register, TFL has an experienced management team who will enable the Company to accelerate development of additional community buying centres, solar drying and fermentation facilities.

 

 

** ENDS **


This information is provided by RNS
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