For immediate release26 September 2018
(“AfriAg Global”, the “Group” or the “Company”)
Unaudited Interim Results for the six months to
Our global distribution footprint has continued during the year, as we moved to distributing perishable food products by road, air and sea for and to global customers (
In addition, the Company recently broadened its investment strategy to include investments in the exciting global medicinal cannabis sector. And on
“As usual, the business is continuing to perform well. The second half of every calendar year is usually much stronger than the first half, and we see no reason why this trend should not continue. I am particularly excited about the recent shareholder approval gained to allow
Investment policy change to include Medical Cannabis investments:
On
The Board has also appointed a technical committee, comprising Masello Sello and Germina ‘Mamoeti Mphoso on
Masello Sello qualified as a lawyer from the National University of
· Lesotho’s Drugs of Abuse (Cannabis) Regulations 2018; and
· Lesotho’s Medicines Control and Medical Devices Control Bill 2018.
Masello has also worked in the Ministry of Health in Lesotho where she has gained wide experience across a number of health-related matters including the use of cannabis for medicinal purposes.
Germina Mamoeti Mphoso was awarded with a Master of Technology in Pharmaceutical Sciences from
As a consequence of their experiences, Masello and Germina both have an in-depth understanding of the cannabis industry and an extensive network of contacts. The Technical Committee will be responsible for reviewing potential investments and reporting to the Board on a regular basis. The Board believes that their collective experience, together with their extensive network of contacts and the Company’s Technical Committee, will assist them in the identification, evaluation and funding of appropriate investment opportunities within the medicinal cannabis sector.
AfriAg Marketing has experienced a good period of trading activity, with revenues during the period of £1.501 million in 2018 (2017: £1.829 million).
This consistent revenue not only demonstrates strong development, it also reinforces the belief that the company’s low-overhead, grower-focused structure works in today’s market. The model has been keenly welcomed by both our growers and our end customers in
During this year, the business has been focusing on consolidating our core activities of exporting, distribution and trading of a wide range of fruit and vegetable perishable food lines, including blueberry, passion fruit, pineapple, apple, strawberry, butternut, peas, fine beans, mange tout, sugar snap, baby corn, chillies, baby veg, and herbs to name our top product lines.
Foreign exchange management with the wild fluctuations in global currency rates always proves challenging, however profit levels remained good during the period at £38,000 (2017: £127,000). The second half of our calendar year is always stronger than the first, so we hope to see a robust second half coming up.
The Company is pleased to report that the specialist global agri-logistics group
Financial Results:
During the period, the Company had revenues of £1.501m (6 months ended
There was a weighted loss per share of 0.007p (
Current assets at
The unaudited interim results to
Outlook:
The overall business is running very smoothly, and we anticipate further growth in all sectors. We reasonably expect this trend to continue. We also see our recently broadened investment strategy involving medical cannabis initiatives as an area of new focus for the Company going forward and we see tremendous upside for this sector.
The Board would like to take this opportunity to thank our shareholders, staff and consultants for their continued support and I look forward to reporting further significant progress over the next period and beyond.
The directors of the Company accept responsibility for the contents of this announcement.
Executive Chairman
For further information, please contact:
AfriAg Global plc : +44 (0) 20 7440 0640David Lenigas Corporate Adviser and Broker: +44 (0) 20 7469 0930Peterhouse Capital Limited Guy Miller /Fungai Ndoro
Condensed Consolidated Statement of Comprehensive Income (unaudited)
for the 6 months ended
6 months to 6 months to Year ended
30 June 30 June 31 December
2018 2017 2017
Unaudited Unaudited Audited
Note GBP’000 GBP’000 GBP’000
Revenue 1,501 1,829 3,122
Cost of sales (1,463) (1,702) (2,842)
Gross Profit 38 127 280
Administration expenses (156) (195) (378)
Share Based Payment Charge - - -
Operating (loss) (118) (68) (98)
Share of associate result 19 21 72
Finance costs - - (1)
Investment income 2 (12) (11)
(Loss) before tax (97) (59) (38)
Tax - - -
Retained (loss) for the period (97) (59) (38)
Other comprehensive income
Gain on revaluation of available for - 1 -
sale investments
Transfer to income statement 22 14 14
Translation exchange gain (7) 27 (3)
15 42 11
Total comprehensive income
Total comprehensive (loss) for the (82) (17) (27)
period attributable to equity holders
of the parent
(Loss) per share (pence) 2
Basic (0.007) (0.004) (0.003)
Diluted (0.007) (0.004) (0.003)
All of the revenues and loss above derived from continuing operations.
Condensed Consolidated Statement of Financial Position (unaudited)
At
30 June 2018 30 June 2017 31 December 2017
Unaudited Unaudited Audited
GBP’000 GBP’000 GBP’000
Non-current assets
Property, plant & equipment 8 6 5
Investments in associates 1,609 1,539 1,590
Total non-current assets 1,617 1,545 1,595
Current assets
Inventory - - 3
Trade and other receivables 866 1,012 846
Available for sale assets - 2 1
Cash and cash equivalents 246 127 443
Total current assets 1,112 1,141 1,293
Total assets 2,729 2,686 2,888
Current liabilities
Trade and other payables (842) (907) (919)
Total current liabilities (842) (907) (919)
Net current assets 270 234 374
Net assets 1,887 1,779 1,969
Equity
Share capital 1,461 1,381 1,461
Share premium account 8,648 8,528 8,648
Share based payment reserve 279 279 279
Revaluation reserves - (21) (22)
Foreign currency reserve 27 64 34
Retained earnings (8,528) (8,452) (8,431)
Total equity 1,887 1,779 1,969
Condensed Consolidated Statement of Changes in Equity (unaudited)
for the 6 months ended
Share based
payment Foreign
Share Share reserve currency Revaluation Retained
capital premium reserve reserves earnings Total
GBP’000 GBP’000 GBP’000 GBP’000 GBP’000 GBP’000 GBP’000
At 31 1,381 8,528 279 37 (36) (8,393) 1,796
December 2016
(Loss) for - - - - - (38) (38)
the period
Currency - - - (3) - - (3)
translation
(loss)
Transfer to - - - - 14 - 14
income
statement
Total - - - (3) 14 (38) (27)
Comprehensive
Income
Shares issued 80 120 - - - - 200
Share based - - - - - - -
payment
charge
Total 80 120 - - - - 200
contributions
by and
distributions
to owners of
the Company
At 31 1,461 8,648 279 34 (22) (8,431) 1,969
December 2017
(Loss) for - - - - - (97) (97)
the period
Currency - - - (7) - - (7)
translation
(loss)
Transfer to - - - - 22 - 22
income
statement
Total - - - (7) 22 (97) (82)
Comprehensive
Income
Shares issue - - - - - - -
costs
Total - - - - - - -
contributions
by and
distributions
to owners of
the Company
At 30 June 1,461 8,648 279 27 - (8,528) 1,887
2018
Condensed Consolidated Statement of Cash Flows (unaudited)
for the 6 months ended
6 months to 6 months to Year ended
30 June 2018 30 June 2017 31 December 2017
Unaudited Unaudited Audited
GBP’000 GBP’000 GBP’000
Cash flows from operations
Operating (loss) (118) (68) (98)
Decrease in inventories 3 9 6
(Increase)/decrease in trade & other (20) (36) 130
receivables
(Decrease) in trade & other payables (77) (80) (68)
Depreciation - - 4
Share option charge - - -
Net cash used in operating activities (212) (175) (26)
Investing activities
Investment income 2 1 2
Finance costs - - (1)
Receipts on sale of AFS investments 1 36 35
Payments for PPE assets (3) (2) (4)
Net cash from investing activities - 35 32
Financing activities
Issue of share capital - - 200
Issue costs - - -
Net cash from financing activities - - 200
Net (decrease)/increase in cash and (212) (140) 206
cash equivalents
Cash and cash equivalents at the 443 240 240
beginning of period
Effect of foreign exchange on cash 15 27 (3)
and cash equivalents
Cash and cash equivalents at the end 246 127 443
of period
Notes to the Condensed Consolidated Interim Financial Information (unaudited)
1. General information
The condensed consolidated interim financial information for the period ended
The condensed consolidated interim financial information contained in this document does not constitute statutory accounts. In the opinion of the directors the financial information for this period fairly presents the financial position, result of operations and cash flows for this period.
The Condensed Consolidated Interim Financial Information was approved by the Board of Directors on
Statement of compliance
These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the
2. (Loss) per share
The calculation of the (loss) per share is based on the (loss) attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.
6 months to 6 months to Year
30 June 30 June 31 December
2018 2017 2017
Unaudited Unaudited Audited
GBP’000 GBP’000 GBP’000
(Loss) attributable to equity holders of the (97) (59) (38)
Group
Weighted average number of ordinary shares 1,461,001 1,381,001 1,405,110
(‘000s)
(Loss) per share – basic (0.007) (0.004) (0.003)
(Loss) per share – diluted (0.007) (0.004) (0.003)
3. Events after the end of the reporting period
On
4. A copy of this interim financial statement is available on the Company’s website: www.afriagglobal.com.
