12th Feb 2020 17:17
(Alliance News) - Agriterra Ltd on Wednesday said it will publish its annual results for financial 2019 and its interim results for its current financial year by mid-March, both of which were delayed due to an investigation into two instances of theft.
In October 2019, the agricultural investor's shares were suspended from trading after it missed its September 30 deadline to publish results for its year ended March 31, 2019. The company said that the accounts were not finalised due to investigations into two instances of theft an an operational level.
On Wednesday, Agriterra said that its investigation found that a total of USD18,700 was stolen of which USD7,200 has been recovered resulting in a loss of USD11,500. It said that the theft related to weighbridge transactions, adding that it had taken steps to improve the weighbridge software to prevent a re-occurence of similar theft.
However, the company said that the accounts remain unfinalised as its auditors BDO LLP are unable to sign off until further forensic assessment work has been conducted by an independent, objective and expert accounting firm with forensic specialists. The company has therefore hired PKF Littlejohn LLP to work with BDO in the carrying out of the further assessment and finalisation of the delayed accounts.
Agriterra expects both accounts - financial 2019 and six months to September 2019 - to be published by mid-March.
The agricultural company said that for the year ended March 31, 2019, it recorded improved sales across both the grain and beef divisions, as well as reduced operating losses.
Trading in financial 2020 showed improvement in the grain division, however, the beef division is trading marginally behind financial 2019, Agriterra added.
Investigation into the thefts, excluding normal course audit fees, is expected to cost around USD175,000. The company is confident that through a combination of cash generated from operations, existing cash resources and undrawn facilities that it will have sufficient resources available to it to discharge its obligations for at least the next 12 months, Agriterra said.
Agriterra shares remains suspended from trading.
By Ife Taiwo; [email protected]
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