REG - Agriterra Ltd - Half-year Report
29/12/2023 10:30
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RNS Number : 2174Y Agriterra Ltd 29 December 2023
The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.
Agriterra Limited / Ticker: AGTA / Index: AIM / Sector: Agriculture
Agriterra Limited ('Agriterra' or the 'Company')
Interim Results
Agriterra Limited, the AIM listed African agricultural company, announces its
unaudited results for the six months ended 30 September 2023.
Chair's Statement
I am pleased to provide an update on our performance in the first half of the
2024 financial year ('HY-2024'). These results will be made available on the
Company's website.
Operational update
Grain division
The Grain division commenced the period without sufficient reserves of maize
in silo to link to the new season. Accordingly, with no banking facilities in
place, early season maize purchases were funded by customer prepayments and
advances, securing 4,500 tons in the first 3 months of the period. The Grain
division´s objective was to breakeven during this low milling period whilst
securing sufficient stocks for the season.
The division secured a commercial overdraft in July 2023 amounting to US$2
million to finance further maize purchases. However it was unable to draw on
the full facility as the bank was unable to disburse the full amount due to
Central Bank monetary policy to restrict the money supply. The division
secured a shareholder loan in August for US$2 million to fund maize purchases.
In August 2023, the Grain division undertook a restructuring exercise with the
objective of breaking even at 900 tons per month by:
· Revising the pricing strategy to achieve at least 25% gross
margin on cost on maize.
· Reducing fixed overheads from MZN 6 million (approximately US$
93,000) per month to MZN 3 million (approximately US$ 47,000) by:
o Retrenching 54 staff members thereby reducing personnel cost MZN 2 million
(approximately US$ 31,000) per month.
o Reducing other operations cost by MZN 1 million (approximately US$ 16,000)
per month.
The cash flow constraints in the early part of the period adversely impacted
Grain division sales volumes at 4,188 tons (HY-2023: 7,947 tonnes) generating
revenue of US$ 2.2 million (HY-2023: US$ 3.6 million).
The business, as at 30 September 2023, has in silo a total stock of 6,609 tons
of maize (HY-2023: 7,444 tons), which will be rolled over continuously to fund
maize requirements through to April 2024. This will necessitate the purchase
of a further 5,000 tons to meet the milling requirements until the next
harvest. Due to late purchasing and general shortage of maize, average cost of
maize increased from MZN 12.2 per kg (approximately US$ 0.19) to MZN 19.1 per
kg (approximately US$ 0.30) for the current season. However the shortage of
maise has increased the price of meal and the division expects to be able to
meet its margin targets in the second half of the year as demand improves.
Operating costs increased by US$ 0.1 million to US$ 0.6 million due to
retrenchment cost incurred in August 2023. EBITDA decreased to a loss of US$
0.2 million (HY-2023: EBITDA profit of US$ 0.2 million) due to lower volumes
and margins in the first quarter. Finance costs decreased to US$ 0.2 million
(HY-2023: US$ 0.8 million) reflecting the full benefits of the refinancing of
commercial debt with shareholder loans in the prior year. Depreciation cost
remained constant at US$ 0.24 million. Grain incurred a loss of US$ 0.68
million for the 6 months period ending 30 September 2023 (HY-2023: Loss US$
0.87 million).
Beef division
The strategy in the beef division shifted midway through the period. This
change was driven by several factors:
· Influx of cheap beef from South Africa due to the weakening of
the South African Rand against the Metical which had an impact on the beef
market in the Southern parts of Mozambique, especially Maputo, the Capital.
· Rising transport costs which has impacted on the landed cost of
cattle in the feedlot as well as costs of getting the finished product to
market. These rising costs can be attributed to:
o Deteriorating transport network
o Rising fuel costs
o Ageing fleet
In response, decisions were made to start shifting the sales strategy of beef
from the more formal high-end market to less formal mass market, and price the
product aggressively, whilst also maintaining our current strategy of
conditioning animals in the feedlot and maintaining a presence within the
formal market.
To achieve this, we have implemented the following:
· Start targeting areas much closer to our operational base for
cattle buying.
· Buying animals at the feedlot and abattoir for slaughter
directly.
· Start investing in new fleet of cattle trucks to improve
transport efficiencies.
In addition to the above, a cost reduction exercise was undertaken at the end
of July with a view of reducing our monthly operating expenses by 1,000,000
MZN per month (approximately US$ 16,000) as well as reducing our staff
compliment by 45, in an effort to economise and streamline the operation.
The number of animals in stock had reduced to 723 head by 30 Sept 23. This is
partly as result of our shift in strategy to buy more animals for direct
slaughter and reduce the amount and cost of keeping animals in the feedlot.
Cashflow has had some challenges, primarily due to tough economic conditions
as well as country wide municipal elections, with much funding from Government
being diverted to campaigning rather than settling outstanding debts to their
suppliers, which in turn impacts on primary producers like ourselves. Steps
have been taken to rectify this and we are now seeing an improvement.
Beef division generated US$ 1.5 million revenue over the period, a reduction
of US$ 145,000 against the same period last year. 430 tons of beef were sold
during the period, compared to a budget of 652 tons. A gross profit of 20.67%
was achieved, which is the third year whereby a GP of over 20% has been
achieved.
Cash resources available at this time amounted to US$ 0.25 million which
amounts to an additional 750 head of cattle at current prices. The cumulative
for loss the period amounted to US$ 0. 4 million, an increase of US$ 0.1
million.
After some delays, we have started a new company Carnes de Manica and sales
commenced in October 2023. This is another field to Pork initiative and once
it is fully established, we anticipate an additional US$ 0.13 million to be
added to the revenue stream annually. Current number of pigs in stock is 299
head.
Two new cattle trucks and trailers have been purchased at a cost of US$ 0.12
million with funds raised from Peterhouse Capital. We anticipate the arrival
of these trucks in late Nov. This will help in improving our efficiencies and
reducing our transport costs within the beef division.
Snax Division
Snax division continues to supply the market with superior quality products of
which we have launched a new chicken flavoured puff ring over this period. The
new product has been well received as now constitutes about 15% of total
sales. Onion rings remain the market favourite and a new 100g family size
packet is being launched. The new packing machine has been ordered and we
expect this to be on site late December 2023 and installed, ready for
production in January 2024. In terms of production we have produced 515 00
bales of product over the period.
Snax division generated revenue amounting to US$ 1.03 million (HY-2023: US$
1.27 million) over the period with a gross profit of 20.17% (HY-2023: 19.6%).
Decrease in sales revenue is mainly attributable to the tough economic
conditions and less disposable household incomes, with families spending less
on non-essential food stuffs. Profit for the period was US$ 0.30 million
(HY-2023: US$ 0.74 million).
DECA Snax is a joint venture and based on International Financial Reporting
Standards, revenue is not consolidated but the profit portion attributable to
the group is included as share of profit in equity accounted investee in the
Consolidated Income Statement. Profits have been negatively impacted by the
rising costs of raw materials, packaging and transport. Maize prices in
particular have had a significant impact. Profit attributable to the group is
US$ 0.15 million (HY-23: US$ 0.35 million).
Group Results
Group revenue for the half-year ended 30 September 2023 decreased by 28% to
US$ 3.6 million (HY-2023: US$ 5.0 million). Decrease in sales revenue is
mainly resulting from decrease in sales for Grain division.
Gross profit decreased to US$ 0.5 million (HY-2023: US$ 1.1 million) achieving
a group gross margin of 15% (HY-2023: Gross margin of 22%). Decrease in gross
margin is resulting from high cost of maize which reduced Grain division
margins to 9%. Group operating expenses increased from US$ 1,603 to US$ 1,727
due to retrenchment cost as compared to prior period. Following the
restructuring exercise, it is anticipated that operating expenses will fall
significantly from October 2023.
Finance costs decreased by 40% to US$ 0.55 million (HY-2023: US$ 0.92 million)
as a result of refinancing of commercial debt with shareholder loans incurring
interest at SOFR+3%. Overall interest rate on shareholder loan is around 10%
per annum as compared to the current commercial debt interest rate of 25% per
annum.
During the period, inventories have increased by US$ 1.92 million to US$ 2.47
million as compared to 31 March 2023. Grain division is keeping low inventory
levels as a result of the revised strategy to reduce stock holding cost and
finance cost in Grain division. Net debt at 30 September 2023 was US$ 12.7
million (31 March 2023: US$ 10.9 million).
Outlook for H2-2024
The Grain business is entering H2-2024 with 6,609 tons of grain in silo which
is not sufficient to take us to the next harvest. The division is
supplementing by importing 4000 tons of maize from South Africa and rolling to
the extent possible maize sold during the period. Beef division sales revenue
is expected to increase by 20% as compared to the first half year. All
divisions have been striving to be self-sustaining at low capacity utilisation
and now are expanding into profitable operations as volumes increase after
rightsizing. Management will continuously monitor operations for profitability
and seize new market opportunities creating a group basket of products to
effectively lower overheads per product in the medium to long term.
Grain remains the core group business and management will seek to add value by
creating additional product lines building on the success of Deca Snax.
CSO Havers
Chair
29 December 2023
For further information please VISIT www.agriterra-ltd.com or contact:
Agriterra Limited Strand Hanson Limited
Caroline Havers caroline@agriterra-ltd.com Ritchie Balmer / James Spinney / David Asquith Tel: +44 (0) 207 409 3494
Peterhouse Capital Limited
Duncan Vasey / Eran Zucker Tel: +44 (0) 207 469 0930
Consolidated statement of profit or loss and other comprehensive income
Consolidated income statement
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
Note US$000 US$000 US$000
CONTINUING OPERATIONS
Revenue 2 3,575 4,964 11,494
Cost of sales (3,054) (3,883) (8,758)
(Decrease)/Increase in fair value of biological assets - - (288)
Gross profit 521 1,081 2,448
Operating expenses (1,727) (1,603) (3,381)
Other income 143 56 122
Profit on disposal of property, plant and equipment - - -
Operating loss (1,063) (466) (811)
Net finance costs 3 (550) (918) (1,462)
Share of profit in equity-accounted investees, net of tax 15 35 37
Loss before taxation (1,598) (1,349) (2,236)
Taxation - - 127
Loss for the period 2 (1,598) (1,349) (2,109)
Loss for the period attributable to owners of the Company (1,598) (1,349) (2,109)
LOSS PER SHARE
Basic and diluted loss per share - US Cents 4 (2.22) (6.35) (9.29)
Consolidated Statement of comprehensive income
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
US$000 US$000 US$000
Loss for the period (1,598) (1,349) (2,109)
Items that may be reclassified subsequently to profit or loss:
Foreign exchange translation differences (705) (490) (161)
Other comprehensive (loss)/income for the period (705) (490) (161)
/Total comprehensive (loss)/income for the period attributable to owners of (2,303) (1,839) (2,270)
the Company
Consolidated statement of financial position
30 September 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
Note US$000 US$000 US$000
Non-current assets
Property, plant and equipment 23,973 24,682 24,267
Intangible assets 1 10 3
Equity-accounted investees 108 91 93
24,082 24,783 24,363
Current assets
Biological assets 292 421 496
Inventories 2,472 2,125 550
Trade and other receivables 1,628 1,190 1,055
Cash and cash equivalents 307 350 174
4,699 4,086 2,275
Total assets 28,781 28,869 26,638
Current liabilities
Borrowings 5 1,179 4,287 2,666
Trade and other payables 1,963 1,530 658
3,142 5,817 3,324
Net current assets 1,557 (1,731) (1,049)
Non-current liabilities
Borrowings 5 11,820 6,968 7,196
Deferred tax liability 6,115 6,243 6,111
17,935 13,211 13,307
Total liabilities 21,077 19,028 16,631
Net assets 7,704 9,841 10,007
Share capital 6 63,343 3,373 3,993
Share premium 6 - 151,442 151,419
Share based payments reserve 67 67 67
Revaluation reserve 11,935 12,186 12,061
Translation reserve (16,874) (16,498) (16,169)
Accumulated losses (50,767) (140,729) (141,364)
Equity attributable to equity holders of the parent 7,704 9,841 10,007
The unaudited condensed consolidated financial statements of Agriterra Limited
for the six months ended 30 September 2023 were approved by the Board of
Directors and authorised for issue on 29 December 2023.
Signed on behalf of the Board of Directors:
CSO Havers
Chair
Consolidated statement of changes in equity
Share Share premium Share based payment reserve Translation reserve Revaluation reserve Accumulated Total
losses
capital Equity
Note US$000 US$000 US$000 US$000 US$000 US$000 US$000
Balance at 1 April 2022 3,373 151,442 67 (16,008) 12,312 (139,506) 11,680
Loss for the period - - - - - (1,349) (1,349)
Other comprehensive income:
Exchange translation gain on foreign operations restated - - - (490) - - (490)
Total comprehensive loss for the period - - - (490) - (1,349) (1,839)
Transactions with owners
Revaluation surplus realised - - - - (126) 126 -
Total transactions with owners for the period - - - - (126) 126 -
Balance at 30 September 2022 3,373 151,442 67 (16,498) 12,186 (140,729) 9,841
Loss for the period - - - - - (760) (760)
Other comprehensive income:
Exchange translation gain on foreign operations - - - 329 - - 329
Total comprehensive income for the period - - - 329 - (760) (431)
Transactions with owners
Issue of shares 620 (23) - - - - 597
Revaluation surplus realised - - - - (125) 125 -
Total transactions with owners for the period 620 (23) - - (125) 125 597
Balance at 31 March 2023 3,993 151,419 67 (16,169) 12,061 (141,364) 10,007
Loss for the period - - - - - (1,598) (1,598)
Other comprehensive income:
Exchange translation (loss) on foreign operations - - - (705) - - (705)
Total comprehensive loss for the period - - - (705) - (1,598) (2,303)
Transactions with owners
Reclassification 59,350 (151,419) - - - 92,069 -
Revaluation surplus realised - - - - (126) 126 -
Total transactions with owners for the period 59,350 (151,419) - - (126) 92,195 -
Balance at 30 September 2023 63,343 - 67 (16,874) 11,935 (50,767) 7,704
Consolidated cash flow statement
Note 6 months ended 6 months ended Year
30 September 30 September ended
2023 2022 31 March
Unaudited Unaudited 2023
Audited
US$000 US$000 US$000
Loss before tax for the period (1,598) (1,349) (2,236)
Adjustments for:
Amortisation and depreciation 2 396 435 870
Foreign exchange (gain)/loss (315) (493) (151)
Decrease / (increase) in value of biological assets - - 288
Share of profit in associate (15) (35) (37)
Net Finance costs 550 918 1,462
Operating cash flows before movements in working capital (982) (524) 196
Net decrease / (increase) in biological assets 204 42 (321)
(Increase) / decrease in inventories (1,922) 51 1,626
(Increase) / decrease in trade and other receivables (573) (366) 52
Increase / (decrease) in trade and other payables 924 570 (302)
Net Cash used in operating activities (2,352) (227) 1,251
Cash flows from investing activities
Acquisition of property, plant and equipment (102) (58) (90)
Net cash used in investing activities (102) (58) (90)
Cash flow from financing activities
Finance costs 3 (167) (918) (1,014)
Net (repayment) / drawdown of overdrafts 5 - (6,255) (6,254)
Net (repayment) / drawdown of loans and finance leases 5 (146) 7,701 (1,726)
Net drawdown of shareholder loans 2,900 - 7,900
Net cash generated from/(used in) financing activities 2,587 528 (1,094)
Net increase in cash and cash equivalents 133 243 67
Effect of exchange rates on cash and cash equivalents - - -
Cash and cash equivalents at beginning of period 174 107 107
Cash and cash equivalents at end of period 307 350 174
General information
Agriterra Limited ('Agriterra' or the 'Company') and its subsidiaries
(together the 'Group') is focussed on the agricultural sector in Africa.
Agriterra is a non-cellular company limited by shares incorporated and
domiciled in Guernsey, Channel Islands. The address of its registered office
is Connaught House, St Julian's Avenue, St Peter Port, Guernsey GY1 1GZ.
The Company's Ordinary Shares are quoted on the AIM Market of the London Stock
Exchange ('AIM').
The unaudited condensed consolidated financial statements have been prepared
in US Dollars ('US$') as this is the currency of the primary economic
environment in which the Group operates.
1. Basis of preparation
The condensed consolidated financial statements of the Group for the 6 months
ended 30 September 2023 (the 'H1-2024 financial statements'), which are
unaudited and have not been reviewed by the Company's Auditor, have been
prepared in accordance with the International Financial Reporting Standards
('IFRS'). The accounting policies adopted by the Group are set out in the
annual report for the year ended 31 March 2023 (available at
www.agriterra-ltd.com). The Group does not anticipate any significant change
in these accounting policies for the year ended 31 March 2024.
This interim report has been prepared to comply with the requirements of the
AIM Rules of the London Stock Exchange (the 'AIM Rules'). In preparing this
report, the Group has adopted the guidance in the AIM Rules for interim
accounts which do not require that the interim condensed consolidated
financial statements are prepared in accordance with IAS 34, 'Interim
financial reporting'. Whilst the financial figures included in this report
have been computed in accordance with IFRSs applicable to interim periods,
this report does not contain sufficient information to constitute an interim
financial report as that term is defined in IFRSs.
The financial information contained in this report also does not constitute
statutory accounts under the Companies (Guernsey) Law 2008, as amended. The
financial information for the year ended 31 March 2023 is based on the
statutory accounts for the year then ended. The Auditors reported on those
accounts. Their report was unqualified and referred to going concern as a key
audit matter. The Auditors drew attention to note 3 to the financial
statements concerning the Group's ability to continue as a going concern which
shows that the Group will need to renew its overdraft facilities, maintain its
current borrowings and raise further finance in order to continue as a going
concern.
The H1-2024 financial statements have been prepared in accordance with the
IFRS principles applicable to a going concern, which contemplate the
realisation of assets and liquidation of liabilities during the normal course
of operations. Having carried out a going concern review in preparing the
H1-2024 financial statements, the Directors have concluded that there is a
reasonable basis to adopt the going concern principle.
2. Segment information
The Board considers that the Group's operating activities during the period
comprised the segments of Grain, Beef and Snax, undertaken in Mozambique. In
addition, the Group has certain other unallocated expenditure, assets and
liabilities.
The following is an analysis of the Group's revenue and results by operating
segment:
6 months ended 30 September 2023 - Unaudited Grain Beef Snax Unallo-cated Elimina-tions Total
US$000 US$000 US$000 US$000 US$000 US$000
Revenue
External sales((2)) 2,066 1,509 - - - 3,575
Inter-segment sales((1)) 117 - - - (117) -
2,183 1,509 - - (117) 3,575
Segment results
- Operating loss (620) (316) - (256) - (1,192)
- Interest expense (184) (70) - (296) - (550)
- Share of profit in equity accounted investees - - 15 - - 15
- Other gains and losses 128 1 - - - 129
(Loss)/Profit before tax (676) (385) 15 (552) - (1,598)
Income tax - - - - - -
(Loss)/Profit for the period (676) (385) 15 (552) - (1,598)
6 months ended 30 September 2022 - Unaudited Grain Beef Snax Unallo-cated Elimina-tions Total
US$000 US$000 US$000 US$000 US$000 US$000
Revenue
External sales((2)) 3,309 1,655 - - - 4,964
Inter-segment sales((1)) 245 - - - (245) -
3,554 1,655 - - (245) 4,964
Segment results
- Operating loss (141) (264) - (127) - (532)
- Interest expense (776) (27) - (115) - (918)
- Share of profit in equity accounted investees - - 35 - - 35
- Other gains and losses 47 19 - - - 66
(Loss)/Profit before tax (870) (272) 35 (242) - (1,349)
Income tax - - - - - -
(Loss)/Profit for the period (870) (272) 35 (242) - (1,349)
Year ended 31 March 2023 - Audited Grain Beef Snax(1) Unallo-cated Elimina-tions Total
US$000 US$000 US$000 US$000 US$000 US$000
Revenue
External sales((2)) 8,365 3,129 - - - 11,494
Inter-segment sales((1)) 225 - - - (225) -
8,590 3,129 - - (225) 11,494
Segment results
- Operating loss 2 (659) - (308) - (965)
- Interest expense (958) (63) - (441) - (1,462)
- Other gains and losses 95 59 - - - 154
-Share of profit in equity-accounted investees - - 37 - - 37
(Loss)/Profit before tax (861) (663) 37 (749) - (2,236)
Income tax 115 12 - - - 127
(Loss)/Profit after tax (746) (651) 37 (749) - (2,109)
(1) Inter-segment sales are charged at prevailing market prices
(2) Revenue represents sales to external customer and is
recorded in the country of domicile of the Company making the sales. Sales
from the Grain and the Beef divisions are principally for supply to the
Mozambique market.
The segment items included within continuing operations in the consolidated
income statement for the periods are as follows:
Grain Beef Unallo-cated Elimina-tions Total
US$000 US$000 US$000 US$000 US$000
6 months ended 30 September 2023 - Unaudited
Depreciation and amortisation 236 160 - - 396
6 months ended 30 September 2022 - Unaudited
Depreciation and amortisation 257 178 - - 435
Year ended 31 March 2023 - Audited
Depreciation and amortisation 514 356 - - 870
3. NET FINANCE COSTS
6 months ended 6 months ended Year
30 September 30 September ended
2023 2022 31 March
Unaudited Unaudited 2023
Audited
US$000 US$000 US$000
Interest expense:
Bank loans, overdrafts and finance leases 550 918 1,462
Interest income:
Bank deposits - - -
550 918 1,462
4. LOSS per share
The calculation of the basic and diluted loss per share is based on the
following data:
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
US$000 US$000 US$000
Loss for the period/year for the purposes of basic and diluted earnings per (1,598) (1,349) (2,109)
share attributable to equity holders of the Company
Weighted average number of Ordinary Shares for the purposes of basic and 22,240,618
diluted loss per share
71,829,007 21,240,618
Basic and diluted loss per share - US cents (2.22) (6.35) (9.29)
The Company has issued options over ordinary shares which could potentially
dilute basic loss per share in the future. There is no difference between
basic loss per share and diluted loss per share as the potential ordinary
shares are anti-dilutive.
5. Borrowings
30 September 2023 30 September 2022 31 March
2023
Unaudited Unaudited Audited
US$000 US$000 US$000
Non-current
Shareholder loan 11,317 6,215 6,534
Bank loans 503 595 574
Leases - 158 88
11,820 6,968 7,196
Current
Shareholder loan - 1,800 1,500
Bank loans 1,058 2,377 1,056
Leases 121 110 110
1,179 4,287 2,666
12,999 11,255 9,862
Group
During the period, Agriterra Limited secured shareholder loans amounting to
US$ 2.9 million from Magister Investments Limited at an interest rate of
SOFR+6% to reduce the finance grain working capital as well acquisition of the
biscuit plant. The new shareholder loans were issued during the period to add
to the following existing shareholder loan;
· US$ 6.1 million convertible loan facility with a 3 year tenure
maturing August 2024.
· US$ 1.8 million convertible loan facility with a 12 month tenure
maturing in August 2023, loan has been rolled over with an option to
automatically rollover for more periods.
Grain division
Grain division has two outstanding commercial bank loans amounting to US$ 1.6
million. Bank loan with an outstanding balance of US$ 0.9 million was issued
in May 2019. The loan facility which was originally issued as an overdraft
facility has been restructured several times and now is a term loan incurring
an interest rate of Bank's prime lending rate less 1.75% and matures in July
2023. The group subsequently repaid the outstanding loan in October 2023 using
a shareholder loan. The second debt facility with an outstanding balance of
US$ 0.7 million is a 5 year term loan maturing on 31 December 2025. The
facility was restructured into a term loan on 1 December 2021 with an interest
of prime lending rate plus 1.5%. These facilities are secured by land and
buildings.
In addition, Grain division has a finance lease for 6 vehicles maturing on 05
December 2023 with an outstanding balance amounting to MZN 1.6 million
(approximately US$ 25,000). Grain division incurs interest of 18.6% on this
facility. During the period MZN 1.6 million (approximately US$ 25,000) of the
outstanding balance was repaid.
Beef division
The outstanding balance on agricultural equipment finance lease is MZN 6.1
million (approximately US$ 0.1 million). During the period, MZN 3.3 million
(approximately US$ 51,000) of the principal balance was repaid. The finance
lease is repayable over 5 years maturing in July 2024 and is secured against
certain agricultural equipment.
Reconciliation to cash flow statement
At 31 Cash flow Interest accrued Foreign Exchange At 30 September 2023
March
2023
US$000 US$000 US$000 US$000 US$000
Non-current shareholder loan 8,034 2,900 384 (1) 11,317
Non-current bank loans 574 (71) - - 503
Non-current finance leases 88 (88) - - -
Current bank loans 1,056 2 - - 1,058
Current finance leases 110 11 - - 121
9,862 2,754 384 (1) 12,999
6. Share capital
Authorised Allotted and fully paid
Number Number US$000
Ordinary Shares
23,450,000 21,240,618 3,135
At 30 September 2022
Issued during the period 50,588,389 50,588,389 620
At 31 March 2023 74,038,389 71,829,007 3,755
Reclassification - - 59,350
At 30 September 2023 74,038,389 71,829,007 63,105
At 31 March 2023 and September 2023 - - -
Deferred shares of 0.1p each 155,000,000 155,000,000 238
Total share capital 229,038,389 226,829,007 63,343
The Company has one class of ordinary share which carries no right to fixed
income.
The deferred shares carry no right to any dividend; no right to receive
notice, attend, speak or vote at any general meeting of the Company; and on a
return of capital on liquidation or otherwise, the holders of the deferred
shares are entitled to receive the nominal amount paid up after the repayment
of £1,000,000 per ordinary share. The deferred shares may be converted into
ordinary shares by resolution of the Board.
At 30 September 2023, the Company offset accumulated losses of US$ 92,069,000
against the share premium account and the balance of US$ 59,350,000 remaining
on the share premium account has been combined with the share capital account
to comply with Guernsey company law.
7. Post balance sheet events
On 15 November 2023, Magister Investments Limited advanced a further $1.7
million to enable the Group to repay its remaining Metical denominated bank
borrowings. The loan has a coupon of SOFR+6% and a term of 1 year, renewable
at the lender's option
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