AfriAg Global Plc - Interim Results for the six months to 30 June 2018 PR Newswire

For immediate release 26 September 2018

AfriAg Global PLC

(“AfriAg Global”, the “Group” or the “Company”)

Unaudited Interim Results for the six months to 30 June 2018

AfriAg Global PLC (NEX: AFRI), the London listed global agri-logistics specialists, today announces another sound period of trading with the publishing of these unaudited interim results for the 6-month period ended 30 June 2018.

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 (South Africa, Mauritius, Mozambique, Zimbabwe, Zambia, DRC, Kenya, USA, UK, France, Holland, Russia, Japan, New Zealand and others).

In addition, the Company recently broadened its investment strategy to include investments in the exciting global medicinal cannabis sector. And on 17 September 2018, the Company announced that it has formally engaged the London office of law firm, Hill Dickinson LLP, to assist with the Company’s application process to become a licensed cultivator and producer in the UK of medical cannabis. The UK is one of the world’s largest producers of legal medical cannabis under special licences granted by the UK Government.

David Lenigas, Executive Chairman of AfriAg Global, commented:

“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 AfriAg to invest in the fast-growing legal medical cannabis space. We as a board have a number of near-term initiatives we are pursuing that will hopefully, if closed, add significant value to the Company.”

Investment policy change to include Medical Cannabis investments:

On 12 September 2018, shareholder approval was obtained at a general meeting for the expansion of the Company’s investment strategy to include medicinal cannabis. The Company has now expanded its existing investment strategy to also include investments in companies, projects or products that are progressing research in and development of medicinal cannabis and its derivatives, producing or cultivating medicinal cannabis, producing or supplying products derived from or related to cannabis (including, but not limited to, hemp and cannabidiol products); and/or commercialising or marketing medicinal cannabis and its derivatives.  The Company sees tremendous opportunities in the sector.

The Board has also appointed a technical committee, comprising Masello Sello and Germina ‘Mamoeti Mphoso on 20 August 2018 (the “Technical Committee”).

Masello Sello qualified as a lawyer from the National University of Lesotho and since qualification has worked within the Ministry of Law and Constitutional Affairs in Lesotho where she assisted with drafting and reviewing the country’s laws and regulations governing cannabis including:

·      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 Tshwane University of Technology in South Africa. From 2010 to 2016, Germina held the position of Head of Pharmacy Strategy and Regulation in Lesotho. She was responsible for the management of pharmaceutical operations in government and private health facilities in Lesotho and compliance with relevant procedures, rules and regulations. Since then, Germina has worked as Chairman of the Lesotho Narcotics Control Bureau. Her role involves implementing Lesotho’s Drug Abuse Act 2008, licensing matters and reviewing potential clients within Lesotho’s cannabis industry.

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 Pty Ltd (100% owned by AfriAg Global Plc):

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 Europe and North America.

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.

AfriAg (Pty) Limited (40% owned by AfriAg Global Plc):

The Company is pleased to report that the specialist global agri-logistics group AfriAg (Pty) Ltd (“AfriAg”), in which the Company has a 40% equity shareholding, continues to generate stable revenues and profits comparable to the same period last year. Full financials of this investment are generally reported with the year end financial statements.

Financial Results:

During the period, the Company had revenues of £1.501m (6 months ended 30 June 2017: £1.829m) and made a gross profit of £38,000 (6 months ended 30 June 2017: £127,000). The total comprehensive loss for the period attributable to equity holders of the parent was £82,000 (6 months ended 30 June 2017: loss £17,000).

There was a weighted loss per share of 0.007p (30 June 2017: loss per share 0.004p).

Current assets at 30 June 2018 amounted to £1,112,000 (30 June 2017: £1,141,000).

The unaudited interim results to 30 June 2018 have not been reviewed by the Company’s auditor


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.

David Lenigas
Executive Chairman
26 September 2018

For further information, please contact:

AfriAg Global plc:            +44 (0) 20 7440 0640
David Lenigas

Corporate Adviser and Broker: +44 (0) 20 7469 0930
Peterhouse Capital Limited
Guy Miller / Fungai Ndoro

Condensed Consolidated Statement of Comprehensive Income (unaudited)
for the 6 months ended 30 June 2018

                                           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 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


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 30 June 2018

                              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)

Transfer to         -       -           -        -          14        -      14

Total               -       -           -      (3)          14     (38)    (27)

Shares issued      80     120           -        -           -        -     200

Share based         -       -           -        -           -        -       -

Total              80     120           -        -           -        -     200
by and
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)

Transfer to         -       -           -        -          22        -      22

Total               -       -           -      (7)          22     (97)    (82)

Shares issue        -       -           -        -           -        -       -

Total               -       -           -        -           -        -       -
by and
to owners of
the Company

At 30 June      1,461   8,648         279       27           -  (8,528)   1,887

Condensed Consolidated Statement of Cash Flows (unaudited)
for the 6 months ended 30 June 2018

                                       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

(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 30 June 2018 has not been audited or reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Auditing Practices Board. The figures were prepared using applicable accounting policies and practices consistent with those adopted in the statutory accounts for the period ended 31 December 2017. The figures for the period ended 31 December 2017 have been extracted from these accounts, which have not been required to be delivered to the Isle of Man Registrar of Companies, and do however contained an unqualified audit report.

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 26 September 2018.

Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union with the exception of International Accounting Standard (‘IAS’) 34 – Interim Financial Reporting. Accordingly, the interim financial statements do not include all of the information or disclosures required in the annual financial statements and should be read in conjunction with the Group’s 2017 annual financial statements.

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)

Weighted average number of ordinary shares     1,461,001   1,381,001   1,405,110

(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 12 July 2018, the Company announced it had raised £300,000 before expenses through a subscription for 300,000,000 new ordinary shares at a price of 0.1pence per share.

4.         A copy of this interim financial statement is available on the Company’s website: