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AFRI - Afriag Global News Story

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Last Trade - 17/09/20

Sector
Industrials
Size
Micro Cap
Market Cap £2.06m
Enterprise Value £825k
Revenue £n/a
Position in Universe 1758th / 1807

AfriAg Global Plc: Final results for the year ended 31 December 2017

Thu 31st May, 2018 3:44pm
31 May 2018

AfriAg Global PLC

(“AfriAg Global” or the “Company”)

Audited Final results for the year ended 31 December 2017

Chairman’s report (incorporating the strategic report)

This has been a very good year for the Company business growth as a global
agri-logistics logistics provider, and I am pleased to present the annual
report and financial statements for AfriAg Global plc (the “Company” and,
together with its wholly owned subsidiaries, the “Group”) for the year
ended 31 December 2017.

Our global distribution footprint has expanded considerably 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).

AfriAg Marketing had a good year, with revenues growing 3% to £3.122 million
during the period.

The Company’s investment in specialist global agri-logistics group AfriAg
(Pty) Limited continues to add value as its business continues to grow and
develops into a significant global logistics enterprise. It has reported a 26%
increase in full year revenues to £14.746 million for the 12 months ended 31
December 2017 (2016: £11.704 million); a gross profit of £2,173,000 (2016:
£927,000) and a net profit for the year of £179,000 (2016: £104,000). The
Company has equity-accounted for its 40% share of this profit for 2017, being
£72,000 (2016: £42,000).

Gross profit for the Group decreased marginally to £280,000 (2016:
£334,000).

Group Results for the period:
* The Group’s gross turnover has increased by 3% to £3.122 million for the
year (2016 - £3.035 million).
* The Group’s net loss after taxation for the year was £38,000 (2016 -
£9,000 loss).
* The Group’s current assets including cash at 31 December 2017 amounted to
£1,293,000 (2016 - £1,261,000).
* The Group’s 40% owned agri-logistics investment, AfriAg (Pty) Ltd had
gross turnover increasing 26% to £14.746 million (2016 - £11.704 million)
and reported a net profit of £179,000 (2016 - £104,000).
The Directors do not recommend a payment of a dividend

Strategic Review for the Period:

AfriAg Global is seeing its business plan come together as we expand our
operations to providing elite logistic solutions for the timely movement of
perishable food not only from Africa to the world but also from the world in
to Africa.

At the heart of our business is our own global network, fleet and staff based
in Johannesburg at our large modern facilities near O.R. Tambo International
Airport. The AfriAg HQ is a full-service logistics facility equipped with the
latest facilities to meet our customer’s demanding needs.

Our global partner network spans strategic road, air and sea routes harnessing
our resources across this network enables us to deliver bespoke logistics
solutions for our customers.

We have strong relationships with our freight counterparties and their
branches, fleet, facilities and infrastructure in locations across Europe,
Asia, North Americas, and the Middle East.

AfriAg has grown to supply our customers with world class global logistics
delivering across our global footprint, international and domestic freight
transport services, distribution and refrigerated warehousing services through
to remote haulage logistics, aviation and marine logistics support services.

Delivering these services are our main priority. Collectively, they enable us
to efficiently and effectively deliver the solutions our customers are looking
for, right around the world.

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

AfriAg Marketing has experienced a good year of trading activity, with
revenues of £3.122 million in 2017, compared to £3.035 million in 2016.

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.

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 at ZAR
0.343 million (£20,000) (2016: ZAR 2.057 million (£105,000).

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

AfriAg (Pty) Limited is a truly global and fast growing logistics business.
Road haulage, air freight and sea freight of fresh and frozen food in to and
out of Africa and to many destinations around the world is what AfriAg (Pty)
Limited focuses on.

AfriAg (Pty) Limited now operates logistics services to many major global
cities and ports around the globe. The company has turned into a truly global
enterprise and we seeing tremendous growth across many markets. We are now one
of the largest air freighters of perishable food out of southern Africa using
some of the world’s largest airlines and providing bespoke first world
logistics to destinations all over the world through our rapidly expanding
global network of airlines and agents.

AfriAg (Pty) Limited reported a 26% increase in full year revenues to £14.746
million for the 12 months ended 31 December 2017 (2016: £11.704 million); a
gross profit of £2,173,000 (2016: £927,000) and a net profit for the year of
£179,000 (2016: £104,000). The Company has equity-accounted for its 40%
share of this profit for 2017, being £72,000 (2016: £42,000).

A new initiative in 2017 by AfriAg (Pty) Limited was to seek out investments
in the southern African legalised medical cannabis sector. In July 2018,
AfriAg (Pty) Limited announced that it had signed a sole and exclusive
agreement to potentially acquire a 60% interest in South Africa’s House of
Hemp, subject to a number of pre-conditions and completion of satisfactory due
diligence. AfriAg (Pty) Limited jointly signed this deal with LGC Capital Ltd
(as it’s 50/50 partner) with House of Hemp. David Lenigas serves as a
director of AfriAg, AfriAg Global and LGC Capital Ltd and pursuant to the NEX
Exchange Growth Market Rules for Issuers, this transaction would have
constituted a related party transaction. The deal with House of Hemp was
however terminated in early 2018, as the South African Government had not
provided the necessary legal framework for medical cannabis in the country.
AfriAg (Pty) Ltd are actively perusing other medical cannabis investment
opportunities in southern Africa, where governments do have a fully legislated
and legal framework in place for the medical cannabis sector. Only businesses
that are legally permitted to cultivate and produce medical cannabis will be
considered and any investment in this sector must meet the strict requirements
of the UK regulators.

Outlook

The Company anticipates another good year of growth ahead. The Company also
intends to identify further investments in the African agri-logistics sector,
to enhance the AfriAg brand, which has now become very well established.

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.

David Lenigas
Executive Chairman
31 May 2018

The directors of the Company accept responsibility for the contents of this
announcement.

For further information please contact:

 Afriag Global Plc:  David Lenigas (Executive Chairman)         +44 (0)20 7440 0640 
 Peterhouse Corporate Finance Limited Guy Miller Fungai Ndoro   +44 (0)20 7469 0930 

Financial statements

Consolidated statement of comprehensive income for the period to 31 December
2017

__________________________________________________________________________________________

                                                                                          Year ended  31 December  2017  Year ended  31 December  2016 
                                                                                                                GBP’000                        GBP’000 
                                                                                                                                                       
 Revenue                                                                                                          3,122                          3,035 
 Cost of sales                                                                                                  (2,842)                        (2,701) 
                                                                                                                                                       
 Gross Profit                                                                                                       280                            334 
                                                                                                                                                       
 Administration expenses                                                                                          (378)                          (367) 
 Share Based Payment Charge                                                                                           -                             98 
                                                                                                                                                       
 Operating (loss)                                                                                                  (98)                          (131) 
                                                                                                                                                       
 Share of associate result                                                                                           72                             42 
 Investment income                                                                                                 (11)                             85 
 Finance costs                                                                                                      (1)                            (5) 
                                                                                                                                                       
 (Loss) before taxation                                                                                            (38)                            (9) 
                                                                                                                                                       
 Taxation                                                                                                             -                              - 
                                                                                                                                                       
                                                                                                                                                       
 (Loss) for the period attributable to equity holders of the parent                                                (38)                            (9) 
                                                                                                                                                       
 Other comprehensive income                                                                                                                            
 Gain on revaluation of available for sale investments                                                                -                              5 
 Transfer to income statement                                                                                        14                           (55) 
 Translation exchange (loss)/gain                                                                                   (3)                            160 
 Other comprehensive income for the period net of taxation                                                           11                            110 
                                                                                                                                                       
 Total comprehensive income for the year attributable to equity holders of the parent                              (27)                            101 
                                                                                                                                                       
 Loss per share                                                                                                                                        
 Basic and diluted (pence)                                                                                      (0.003)                        (0.001) 
                                                                                                                                                       

The accompanying accounting policies and notes form part of these financial
statements.

Consolidated statement of financial position at 31 December 2017

__________________________________________________________________________________________

                                 31 December  31 December 
                                        2017         2016 
                                     GBP’000      GBP’000 
 Non-current assets                                       
 Property, plant & equipment               5            5 
 Investments in associates             1,590        1,518 
                                       1,595        1,523 
                                                          
 Current assets                                           
 Inventory                                 3            9 
 Trade and other receivables             846          976 
 Available for sale assets                 1           35 
 Cash and cash equivalents               443          240 
                                       1,293        1,261 
                                                          
 Total assets                          2,888        2,783 
                                                          
 Current liabilities                                      
 Trade and other payables              (919)        (987) 
                                       (919)        (987) 
 Net current assets                      374          274 
                                                          
 Net assets                            1,969        1,796 
                                                          
 Equity                                                   
 Share capital                         1,461        1,381 
 Share premium account                 8,648        8,528 
 Share based payment reserve             279          279 
 Revaluation reserves                   (22)         (36) 
 Foreign currency reserve                 34           37 
 Retained earnings                   (8,431)      (8,393) 
                                       1,969        1,796 

The financial statements of AfriAg Global plc (registered number 002845V) were
approved by the Board of Directors and authorised for issue on 31 May 2018 and
were signed on its behalf by:

David
Lenigas                                                                           
Donald Strang

Chairman                                                                                   
Director

The accompanying accounting policies and notes form part of these financial
statements.

Company statement of financial position at 31 December 2017

__________________________________________________________________________________________

                                            31 December  31 December 
                                                   2017         2016 
                                                GBP’000      GBP’000 
 Non-current assets                                                  
 Investments in subsidiary undertakings               -            - 
 Trade and other receivables                      1,836        1,836 
                                                  1,836        1,836 
 Current assets                                                      
 Trade and other receivables                          8            7 
 Available for sale assets                            1           35 
 Cash and cash equivalents                          123           43 
                                                    132           85 
                                                                     
 Total assets                                     1,968        1,921 
                                                                     
 Current liabilities                                                 
 Trade and other payables                         (385)        (444) 
                                                  (385)        (444) 
 Net current (liabilities)                        (253)        (359) 
                                                                     
 Net assets                                       1,583        1,477 
                                                                     
                                                                     
 Equity                                                              
 Share capital                                    1,461        1,381 
 Share premium account                            8,648        8,528 
 Share based payment reserve                        279          279 
 Revaluation reserves                              (22)         (36) 
 Retained earnings                              (8,783)      (8,675) 
                                                  1,583        1,477 

The financial statements of AfriAg Global plc (registered number 002845V) were
approved by the Board of Directors and authorised for issue on 31 May 2018 and
were signed on its behalf by:

David
Lenigas                                                                           
Donald Strang

Chairman                                                                                   
Director

The accompanying accounting policies and notes form part of these financial
statements.

Consolidated statement of changes in equity for the period to 31 December 2017

_______________________________________________________________________________________________________________________________________________________

                                                                    Share  capital  Share  premium  Share based  payment  reserve  Foreign currency reserve  Revaluation reserves  Retained  earnings    Total    
                                                                            GBP’000         GBP’000                        GBP’000                   GBP’000               GBP’000             GBP’000    GBP’000 
 At 31 December 2015                                                          1,381           8,528                            213                     (123)                    14             (8,416)      1,597 
                                                                                                                                                                                                                  
 (Loss) for the period                                                            -               -                              -                         -                     -                 (9)        (9) 
 Currency translation gain                                                        -               -                              -                       160                     -                   -        160 
 Gain on revaluation of available for sale investments                            -               -                              -                         -                     5                   -          5 
 Transfer to income statement                                                     -               -                              -                         -                  (55)                   -       (55) 
 Total Comprehensive Income                                                       -               -                              -                       160                  (50)                 (9)        101 
 Shares options expired                                                           -               -                           (32)                         -                     -                  32          - 
 Share based payment charge                                                       -               -                             98                         -                     -                   -         98 
 Total contributions by and distributions to owners of the Company                -               -                             66                         -                     -                  32         98 
                                                                                                                                                                                                                  
 At 31 December 2016                                                          1,381           8,528                            279                        37                  (36)             (8,393)      1,796 
                                                                                                                                                                                                                  
 (Loss) for the period                                                            -               -                              -                         -                     -                (38)       (38) 
 Currency translation gain                                                        -               -                              -                       (3)                     -                   -        (3) 
 Gain on revaluation of available for sale investments                            -               -                              -                         -                     -                   -          - 
 Transfer to income statement                                                     -               -                              -                         -                    14                   -         14 
 Total Comprehensive Income                                                       -               -                              -                       (3)                    14                (38)       (27) 
 Shares issued                                                                   80             120                              -                         -                     -                   -        200 
 Share based payment charge                                                       -               -                              -                         -                     -                   -          - 
 Total contributions by and distributions to owners of the Company               80             120                              -                         -                     -                   -        200 
                                                                                                                                                                                                                  
 At 31 December 2017                                                          1,461           8,648                            279                        34                  (22)             (8,431)      1,969 

The accompanying accounting policies and notes form part of these financial
statements.

Company statement of changes in equity for the period to 31 December 2017

_______________________________________________________________________________________________________________________________________________________

                                                                    Share  capital  Share  premium  Share based  payment  reserve  Revaluation reserves  Retained  earnings    Total    
                                                                            GBP’000         GBP’000                        GBP’000               GBP’000             GBP’000    GBP’000 
 At 31 December 2015                                                          1,381           8,528                            213                    14             (8,558)      1,578 
                                                                                                                                                                                        
 (Loss) for the period                                                            -               -                              -                     -               (149)      (149) 
 Gain on revaluation of available for sale investments                            -               -                              -                     5                   -          5 
 Transfer to income statement                                                     -               -                              -                  (55)                   -       (55) 
 Total Comprehensive Income                                                       -               -                              -                  (50)               (149)      (199) 
 Shares options expired                                                           -               -                           (32)                     -                  32          - 
 Share based payment charge                                                       -               -                             98                     -                   -         98 
 Total contributions by and distributions to owners of the Company                -               -                             66                     -                  32         98 
                                                                                                                                                                                        
 At 31 December 2016                                                          1,381           8,528                            279                  (36)             (8,675)      1,477 
                                                                                                                                                                                        
 (Loss) for the period                                                            -               -                              -                     -               (108)      (108) 
 Transfer to income statement                                                     -               -                              -                    14                   -         14 
 Total Comprehensive Income                                                       -               -                              -                    14               (108)         94 
 Shares issued                                                                   80             120                              -                     -                   -        200 
 Share issue costs                                                                -               -                              -                     -                   -          - 
 Total contributions by and distributions to owners of the Company               80             120                              -                     -                   -        200 
                                                                                                                                                                                        
 At 31 December 2017                                                          1,461           8,648                            279                  (22)             (8,783)      1,583 

The accompanying accounting policies and notes form part of these financial
statements.

Consolidated statement of cash flows for the period ended 31 December 2017

__________________________________________________________________________________________

                                                              Year ended   Year ended 
                                                             31 Dec 2017  31 Dec 2016 
                                                                 GBP’000      GBP’000 
 Cash flows from operating activities                                                 
 Operating (loss)                                                   (98)        (131) 
 Decrease/(increase) in inventory                                      6          (9) 
 Decrease/(increase) in trade and other receivables                  130        (591) 
 (Decrease)/increase in trade and other payables                    (68)          296 
 Depreciation                                                          4            - 
 Share option charge                                                   -           98 
                                                                                      
 Net cash outflow in operating activities                           (26)        (337) 
                                                                                      
                                                                                      
 Investing activities                                                                 
 Investment income                                                     2            9 
 Finance costs                                                       (1)          (5) 
 Receipts on sale of AFS investments                                  35          168 
 Payments for PPE assets                                             (4)          (3) 
                                                                                      
 Net cash inflow in investing activities                              32          169 
                                                                                      
                                                                                      
 Financing activities                                                                 
 Issue of share capital                                              200            - 
 Issue costs                                                           -            - 
                                                                                      
 Net cash inflow from financing activities                           200            - 
                                                                                      
 Net increase/(decrease) in cash and cash equivalents                206        (168) 
                                                                                      
 Cash and cash equivalents at beginning of period                    240          248 
 Effect of foreign exchange on cash and cash equivalents             (3)          160 
                                                                                      
 Cash and cash equivalents at end of period                          443          240 
                                                                                      

The accompanying accounting policies and notes form part of these financial
statements.

Company statement of cash flows for the period ended 31 December 2017

__________________________________________________________________________________________

                                                         Year ended   Year ended 
                                                        31 Dec 2017  31 Dec 2016 
                                                            GBP’000      GBP’000 
 Cash flows from operating activities                                            
 Operating (loss)                                              (95)        (227) 
 (Increase)/decrease in trade and other receivables             (1)           22 
 (Decrease) in trade and other payables                        (59)         (59) 
 Share option charge                                              -           98 
                                                                                 
 Net cash outflow in operating activities                     (155)        (166) 
                                                                                 
                                                                                 
 Investing activities                                                            
 Investment income                                                -            2 
 Receipts on sale of AFS investments                             35          168 
                                                                                 
 Net cash inflow in investing activities                         35          170 
                                                                                 
                                                                                 
 Financing activities                                                            
 Issue of share capital                                         200            - 
 Issue costs                                                      -            - 
                                                                                 
 Net cash inflow from financing activities                      200            - 
                                                                                 
 Net increase in cash and cash equivalents                       80            4 
                                                                                 
 Cash and cash equivalents at beginning of period                43           39 
                                                                                 
 Cash and cash equivalents at end of period                     123           43 
                                                                                 



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