30th Jul 2018 11:46
LONDON (Alliance News) - Anglo African Agriculture PLC on Monday posted a narrowed interim loss driven by an ongoing cost savings programme, and said it expects to swing to a profit on a group level in the third quarter.
The food products manufacturer said pretax loss narrowed in the six months to end of April to GBP147,794 from GBP285,659 reported for the same period a year earlier, despite revenue falling 45% to GBP638,996 from GBP1.1 million.
Anglo African Agriculture said it cut its administrative expenses to GBP350,165 from GBP529,109 reported a year earlier while finance costs declined to GBP17,206 from GBP43,841.
The company has two trading subsidiaries, 100%-owned Dynamic Intertrade and 47%-owned Dynamic Intertrade Agri.
The company said the Dynamic Intertrade had a challenging start to the financial year, but the unit is predicted to produce its first net profit in the third quarter of the financial year. This is expected as a result of cost savings programme and management changes.
Meanwhile, in Dynamic Intertrade Agri, the company said it continues to secure orders within the agricultural commodity trading environment despite challenges in the South African economy. As a result, the Dynamic Intertrade Agri has swung to a net profit of ZAR68,000 or GBP3,934 in the first half of the financial year.
"The directors of the company are pleased with the consistent improvement of Dynamic Intertrade Agri's results and look forward to further progress in the future," said Non-Executive Chairman David Lenigas.
In addition, Anglo African Agriculture said it is examining potential acquisitions and opportunities to increase the size and growth of the company.
"The past six months have seen the underlying businesses settling down and getting into a steady state of growth," added Lenigas. "The period has also seen the board actively looking at opportunities to accelerate the growth and size of the company."
Shares in Anglo African Agriculture were trading 10% higher on Monday at 0.44 pence each.
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