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AFRI - Afriag Global News Story

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Sector
Industrials
Size
Micro Cap
Market Cap £1.90m
Enterprise Value £667k
Revenue £n/a
Position in Universe 1760th / 1819

AfriAg Global Plc: Interim Results for the six months to 30 June 2018

Wed 26th September, 2018 3:07pm
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

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.

David Lenigas
Executive Chairman
26 September 2018

For further information, please contact:

 AfriAg Global plc: David Lenigas                                                    +44 (0) 20 7440 0640  
 Corporate Adviser and Broker: Peterhouse Capital Limited Guy Miller / Fungai Ndoro  +44 (0) 20 7469 0930  

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

                                                                                                6 months to 30 June 2018 Unaudited  6 months to 30 June 2017 Unaudited  Year ended 31 December 2017 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 sale investments                                                                           -                                   1                                    - 
 Transfer to income statement                                                                                                   22                                  14                                   14 
 Translation exchange gain                                                                                                     (7)                                  27                                  (3) 
 Total comprehensive income                                                                                                     15                                  42                                   11 
 Total comprehensive (loss) for the period attributable to equity holders of the parent                                       (82)                                (17)                                 (27) 
                                                                                                                                                                                                            
 (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 Unaudited  30 June 2017 Unaudited  31 December 2017 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 30 June 2018

                                                                     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 2016                                                         1,381          8,528                          279                        37                  (36)            (8,393)      1,796 
                                                                                                                                                                                                             
 (Loss) for the period                                                           -              -                            -                         -                     -               (38)       (38) 
 Currency translation (loss)                                                     -              -                            -                       (3)                     -                  -        (3) 
 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 
                                                                                                                                                                                                             
 (Loss) for the period                                                           -              -                            -                         -                     -               (97)       (97) 
 Currency translation (loss)                                                     -              -                            -                       (7)                     -                  -        (7) 
 Transfer to income statement                                                    -              -                            -                         -                    22                  -         22 
 Total Comprehensive Income                                                      -              -                            -                       (7)                    22               (97)       (82) 
 Shares issue costs                                                              -              -                            -                         -                     -                  -          - 
 Total contributions by and distributions to owners of the Company               -              -                            -                         -                     -                  -          - 
 At 30 June 2018                                                             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 30 June 2018 Unaudited  6 months to 30 June 2017 Unaudited  Year ended 31 December 2017 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 receivables                                        (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 cash equivalents                                   (212)                               (140)                                  206 
 Cash and cash equivalents at the beginning of period                                     443                                 240                                  240 
 Effect of foreign exchange on cash and cash equivalents                                   15                                  27                                  (3) 
 Cash and cash equivalents at the end of period                                           246                                 127                                  443 

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 30 June 2018 Unaudited  6 months to 30 June 2017 Unaudited  Year 31 December 2017 Audited 
                                                       
                                                       
                                                       
                                                                                   GBP’000                             GBP’000                        GBP’000 
 (Loss) attributable to equity holders of the Group                                   (97)                                (59)                           (38) 
                                                                                                                                                              
 Weighted average number of ordinary shares (‘000s)                              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: www.afriagglobal.com.



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