REG - Agriterra Ltd - Interim Results <Origin Href="QuoteRef">AGTAR.L</Origin> - Part 2

AgriterraAnnouncement

17/11/2017 07:34

- Part 2: For the preceding part double click  ID:nRSQ7707Wa 

    
 Bank loans      -                    798                 734            
                                                                         
 Current                                                                 
 Bank loans      208                  210                 264            
 Bank overdraft  4,465                3,544               2,466          
                 4,673                3,754               2,730          
                                                                         
                 4,673                4,552               3,464          
 
 
Grain division 
 
At the end of all periods presented, the Group had an overdraft facility of
300,000,000 Metical (being approximately $4,909,000 at the 30 September 2017
Metical to US$ exchange rate) to provide working capital funding for its grain
operations in Mozambique, principally for the purchase of maize and related
operating expenditure. It is secured by a fixed charge against certain of the
Group's property, plant and equipment, and a floating charge against all of
the maize inventory and finished maize products, and trade receivables.
Interest is charged at the counterparty bank's Mozambique prime rate less
1.75%. As at the date of this report, the interest rate on these borrowings is
26.00%. Unless it is cancelled by either party, the facility renews annually
on 25 March. On 30 March 2017, the Facility was renewed on a short term basis
until 5 May 2017 in order for the formal renewal process to be completed. This
process was completed on 27 April 2017 and the Facility was renewed on the
terms described above. 
 
As at the period end the Group had undrawn overdraft borrowing facilities for
the Grain division of $560,000 at the 30 September 2017 Metical to US$
exchange rate. 
 
Beef division 
 
As at 31 March 2017 and 30 November 2016, the Group had lending facilities
totalling 105,000,000 Metical to continue financing its beef operations in
Mozambique. The facilities comprised 75,000,000 Metical of term loans and a
30,000,000 Metical overdraft. The term loans, which had been fully drawn as at
30 November 2016, carried interest at the bank's prime lending rate plus 0.25%
(currently 28.00%). Capital repayments on these loans commenced during H1-2017
in accordance with their terms. The overdraft renewed annually and carried
interest at the bank's prime lending rate (being 27.75% at the date of this
report). The lending facilities were secured by a fixed charge against the
Group's abattoir in Chimoio and, by a floating change over all cattle and meat
inventories, and trade receivables. 
 
On 27 April 2017, the Group and Standard Bank agreed to modify the terms of
these borrowing facilities as follows: 
 
1.     a new overdraft facility was provided on the same terms as the previous
overdraft facility, other than for its renewal date, which was revised to 25
March 2018; and 
 
2.     the term loans were replaced by a single loan, with a twelve month
term, repayable in equal monthly instalments commencing in May 2017. The
balance outstanding on the term loans at that date was 39,133,000 Metical. 
 
All other terms remained unchanged. The restructuring was required due to the
change in the nature of the Company's business following the decision to close
and de-stock the cattle farms. 
 
As at the period end, the Group had undrawn overdraft borrowing facilities for
the Beef division of $375,000 at the 30 September 2017 Metical to US$ exchange
rate under the overdraft facility. 
 
7.             Disposal of SUBSIDIARIES 
 
On 1 June 2017, the Group completed the disposal of Tropical Farms Limited and
Tropical Farms Plantation (SL) Limited, the Sierra Leone companies which
comprised the operating companies in the Group's Cocoa division. The
purchasers were local Sierra Leone businessmen who have existing cocoa
production, purchasing and distribution operations in country. The disposal
was effected in order to generate cash flow for the repayment of borrowing
facilities in the Group's Beef division and for general working capital
purposes. 
 
The net assets of these subsidiaries at the date of disposal, and the
calculation of the profit on disposal were as follows: 
 
                                                                                             1 June 2017  
                                                                                             Unaudited    
                                                                                             $000         
                                                                                                          
 Property, plant and equipment                                                               362          
 Trade and other receivables                                                                 89           
 Cash at bank and in hand                                                                    6            
 Trade and other payables                                                                    (127)        
                                                                                             330          
 Foreign exchange gains and losses recycled to profit and loss on disposal                   128          
 Expenses incurred in connection with the disposal                                           20           
                                                                                             478          
 Gain on disposal (included within loss from discontinued operations - refer to note 5.1)    22           
 Total consideration                                                                         500          
 
 
The net cash inflow on disposal was: 
 
                                                            
                                                            
 Consideration received                               500   
 Less:                                                      
 Expenses incurred in connection with the disposal    (20)  
 Cash and cash equivalents disposed of                (6)   
 Total consideration                                  474   
 
 
There were no disposals of subsidiaries in the comparative periods. 
 
8.             Share capital 
 
                                                                                                     30 September 2017    30 November 2016    30 March 2017  
                                                                                                     Unaudited            Unaudited           Audited        
 Allotted and fully paid                                                                                                                                     
 2,124,061,769 (31 March 2017 and 30 November 2016: 1,061,818,478) Ordinary Shares of £0.001 each    3,135                1,722               1,722          
 155,000,000 Deferred Shares of £0.001 each                                                          238                  238                 238            
                                                                                                     3,373                1,960               1,960          
 
 
On 15 September 2017, the Company issued 1,062,243,291 new Ordinary Shares at
the issue price of 0.4064 US cents per Ordinary Share (the 'Magister
Subscription price') to Magister Investments Limited pursuant to a share
subscription agreement dated 14 August 2017, raising gross proceeds of
$4,317,000 and net proceeds, after expenses, of $4,232,000. The transaction
was subject to shareholder approval, which was granted at the general meeting
of the Company held on 14 September 2017. The Magister Subscription price was
fixed in US$. No other ordinary shares were issued in the current or preceding
periods. 
 
**ENDS** 
 
This information is provided by RNS
The company news service from the London Stock Exchange