30th Sep 2014 15:46
LONDON (Alliance News) - AfriAg PLC Tuesday said its losses increased in the first half of 2014, as it was hurt by a loss on derivatives.
The company, which looks to buy assets involved in the agricultural sector, posted a pretax loss of GBP453,820 for the six months to June 30, compared with a GBP80,431 a year earlier.
AfriAg's results were severely affected by what it called a "realised loss on the settlement of derivative financial instrument" totalling GBP430,000.
At an operating level, the company said it freighted around 650,000 kilograms of perishable produce, in what is typically the "quietest half of the year for perishable airfreight".
The majority of these perishable goods were trucked by AfriAg's steadily growing fleet of 18 refrigerated trucks from farming operations in Mozambique, Zambia, Zimbabwe and South Africa and exported from Africa to Europe and Asia from Johannesburg and Cape Town international airports.
The main perishable goods flown to Europe included mange tout, sugar snaps, baby corn and chillies with langoustines and lobsters comprising the main airfreight in to Asia, the company said.
"AfriAg has been gradually transitioning itself from its previous life as the defunct 3D Diagnostics Imaging PLC, and the board now considers that we are entering into a new and exciting growth period for the company and is confident that the investments made by the company are both encouraging and potentially rewarding," Chairman David Lenigas said in a statement.
"We will look to realise this potential over the future years in addition to continuing to review other investment opportunities."
AfriAg shares closed up 4.9% at 0.603 pence Tuesday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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