26th Feb 2016 10:05
LONDON (Alliance News) - Agriterra Ltd Friday reported a narrowed pretax loss for its first half, as it saw an improved performance in its Grain segment, and it continued to reduce costs.
Agriterra invests in and operates agricultural and associated civil engineering projects in Africa.
For the half year to end-November the company reported a pretax loss of USD2.8 million, narrowed from a pretax loss of USD4.5 million a year before, as revenue rose to USD9.5 million from USD4.9 million.
The company attributed the narrowed loss to an improved performance from its Grain division, as well as a good performance from its Beef division. This helped offset weakness in its Cocoa division, as this division's assets were substantially in care and maintenance during the period following the outbreak of Ebola in Sierra Leone.
Grain was boosted by a favourable sales and pricing environment for maize, as a smaller harvest and shortage of maize in southern Africa pushed up prices and drove demand.
In the year ahead the 'El Niño' weather phenomena is expected to severely hit 2016 harvests in South Africa, Zimbabwe, Botswana and Zambia. However, the situation in Mozambique, where Agriterra's crop is, is more positive. As such it expects the current sales and price environment to continue through to at least April/May 2017.
The company said it has continued to cut costs in this business, which it expects to contribute positively in the second half of its current year and the following year.
Agriterra is exploring international agricultural trading opportunities, particularly focusing on Russia, where sanctions against beef and other agriculture imports from the US, Canada and the European Union, amongst others, would create a "substantial opportunity" for the company.
"I believe we are now becoming a more efficient and streamlined business, consolidating our operations and cementing a stable base to generate positive cash flows from our businesses. I hope to report favourably on our ongoing cost reduction programmes in our full year results," said Chairman Philippe Edmonds in a statement.
Shares in Agriterra were down 3.1% at 0.436 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Agriterra Ld