Agriterra Ltd - Trading Update and 2020 Annual Accounts Timetable
Agriterra Limited ('Agriterra' or the 'Company')
Agriterra Limited / Ticker: AGTA / Index: AIM / Sector: Agriculture
Trading Update and 2020 Annual Accounts Timetable
Agriterra Limited, the AIM-quoted African agricultural company, is pleased to provide the following
H1 2021 trading update and an update on its 2020 Annual Accounts Timetable:
H1 2021 Trading Update
Like other businesses in
The Company's Grain and Beef sales have however been encouraging during H1 2021 despite growth being restricted by the reduction of the informal retail sector as a result of COVID-19, this accounting for a significant proportion of the Company's sales.
Grain Division Update:
The absence of reliable interprovincial transportation and cash due to the COVID-19 restrictions has resulted in a delay in the maize harvesting and buying season by over 3 months. As a result, DECA has had to adjust its initial forecast purchases of maize from local smallholder farmers from 42,000 tonnes to 35,000 tonnes. To date the Company has purchased 20,000 tonnes and is confident that a further 15,000 tonnes will be acquired in the next 3 months.
On a positive note, the COVID-19 shutdown has limited entry into the market of imported maize meal, allowing DECA to access new markets, and increase supply into existing markets, resulting in a sales performance to date slightly ahead of internal expectations pre COVID-19.
Beef Division Update:
The Beef operation has been more adversely affected by the COVID-19 lockdown as Mozbife has both struggled to access the cattle production areas, and the market for its products has shrunk significantly due to the downturn in the economy.
However, with improved operating efficiencies and an increase in the unit value per tonne of meat, Mozbife has seen an improvement in net margins, which is hugely encouraging.
As announced previously, Mozbife was awarded a grant to build nine (9) "Cattle Service Centres" in 2 provinces by the World Bank. This programme was temporarily delayed by the COVID-19 lockdown, but despite these challenges the project was successfully completed in H1 2021.
2020 Annual Accounts Timetable
The Company also announces that following the grant by AIM Regulation of an extension to its 2020 annual reporting deadline (further to guidance provided in "Inside AIM" dated
The Company expects to report a total revenue figure (which is currently unaudited) for the 2019/2020 financial year for the Group of
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The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014, and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
For further information please visit www.agriterra-ltd.com or contact:
Strand Hanson Limited
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+44 (0) 207 409 3494
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