28th Oct 2014 10:22
LONDON (Alliance News) - Agriterra Ltd Tuesday reported a wider operating loss for its last financial year, as revenue declined due to lower maize volumes that was only partly offset by increased beef sales.
Its operating loss for the year to May 31 widened to USD6.5 million, from USD5.9 million a year earlier, as revenue fell to USD13.8 million from USD18.1 million. Its pretax loss narrowed to USD5.6 million, from a loss of USD6.5 million, as finance costs fell and it booked a USD936,000 gain for a change in the fair value of quoted investments.
"While we are still in the development phase, the board is confident that the progress we have made to date has created a strong and sustainable platform for our transition into profitability," said Chairman Phil Edmonds, the former England cricketer.
Due to the Ebola outbreak and the associated travel restrictions in Sierra Leone, coupled with the poor performance of the cocoa trading operation in the year, the company said it has suspended cocoa trading operations. On-site staff are maintaining its plantation and other assets in the country.
Its beef operations are in Mozambique. Revenue rose to USD4.1 million, from USD2.2 million, and the company said its cattle herd expansion plan is on track to reach 10,000 head during 2015. A successful breeding season has delivered a 28% year-on-year increase in births, it added.
Agriterra's maize milling and trading operation is also in the country and mealie meal volumes declined, mainly due to political instability which led to difficulties transporting maize product. However, it said the operations remain important, generating a considerable revenue stream and producing an important component of feed for the beef feedlot as a by-product of the maize milling process. It said purchases for the 2014/2015 season have been strong and it expects sales and revenues will improve during the latter part of the 2015 financial year.
Still, at 1008 GMT, shares in the company were down 11% at 0.855 pence.
By Ian Edmondson
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Agriterra Ld