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DJ AfriAg Global Plc Half-year Report

 
TIDMAFRI 
 
For immediate release                                             27 September 2016 
 
                               AfriAg Global PLC 
                ("AfriAg Global", the "Group" or the "Company") 
 
         Unaudited Interim Results for the six months to 30 June 2016 
 
AfriAg Global PLC (ISDX: AFRI), the London listed global food logistics 
specialists, today announces an excellent first half year performance with it's 
first ever half year profit recorded in its unaudited interim results for the 
6-month period ended 30 June 2016. 
 
Summary of Financial Results for the period: 
 
  * The Group's gross turnover has increased by over 264% to GBP1.422 million for 
    the period (6 months ended 30 June 2015 - GBP537,000) 
  * The Group's 40% owned AfriAg SA's gross turnover has increased by 240% to GBP 
    4.430 million for the period (6 months ended 30 June 2015 - GBP1.849 million) 
  * The Group's net profit after taxation for the period was GBP48,000 (6 months 
    ended 30 June 2015 - GBP168,000 loss). 
  * The Group's current assets including cash of GBP172,000 at 30 June 2016 
    amounted to GBP1,063,000 (6 months ended 30 June 2015: GBP977,000). 
 
David Lenigas, Executive Chairman of AfriAg Global, commented: "The start of 
2016 has seen the business and its investments grow substantially, indeed more 
than we could have anticipated.  We see an even stronger second half 
performance in front of the us as we gear up for the very busy pre-Christmas 
period. Our customer base has spread far more globally over the last 6 months, 
with regular airfreight shipments of food, not only around and within southern 
Africa, but to the USA, Europe, the Middle East and Asia." 
 
Strategic Review for the Period: 
 
AfriAg Marketing: 
(100% owned by the Company) 
 
The first half of 2016 has been an outstanding period of growth for the 
Company, with its 100% owned marketing division AfriAg Marketing Pty Ltd 
("AfriAg Marketing") generating in excess of 264% increase in revenues, 
compared to the same period last year, to ZAR 31.307 million (GBP1.422 million) 
with a net profit for the period of ZAR 2.153 million (GBP98,000) and total 
assets of ZAR 7.569 million (GBP382,000). 
 
AfriAg Marketing has had an excellent first half trading performance, almost 
matching the whole of last year's trading performance. We continued to trade 
and ship our core lines of peas (sugar snap and Mange tout), pineapples, 
passionfruit, citrus, apples, herbs, chilies, butternuts from Africa to export 
markets mainly in Europe. 
 
AfriAg (Pty) Ltd: 
(40% owned by the Company) 
 
In addition, the Company is pleased to report that the specialist global 
agri-logistics group AfriAg (Pty) Ltd ("AfriAg SA") in which the Company has a 
40% equity shareholding, continues to grow from strength to strength. It has 
reported a 240% growth in top line revenues for the 6 month to 30 June 2016 of 
ZAR 97.555 million (GBP4.430 million) compared to the same period last year, with 
a net profit for the 6 months of ZAR 0.338 million (GBP15,000) and total assets 
of ZAR 68.818 million (GBP3.473 million). The Company has equity-accounted for 
its 40% share of this profit for 2016, being GBP6,000 (30 June 2015: Loss GBP 
19,000). 
 
Likewise, AfriAg SA had a stellar performance for the period with its 
airfreight shipments of perishable food for the period recording a record 1.45 
million kg, which has increased by 158% over the same period last year (6 
months ended 30 June 2015: 907,000 kg). This growth has come primarily from 
increasing exports of perishable food from southern Africa to global markets 
stretching from Asia, the USA and Europe. The business has also seen a 
substantial increase in business from shipments of frozen meat products by sea 
and road from South America, Europe and the USA in to Africa. 
 
Outlook: 
 
In August 2016, the Company announces that it has launched a new 100% owned UK 
subsidiary, AfriAg International Limited ("AfriAg International"), to promote 
and sell fresh food produce from southern African producers directly in to the 
UK and European market places. AfriAg International will provide a UK 
representational base for AfriAg Marketing's Sub-Saharan based growers, who are 
already permitted to sell their fresh food produce directly in to the EU 
markets, and provide them with direct access to UK and European retailers. 
AfriAg International intends to offer fresh food and vegetables from producers 
across Kenya, Zimbabwe, Mauritius and South Africa that are sustainable, 
renewable and responsibly grown. Our fresh produce offer will include: Herbs, 
Apples, Pears, Blueberries, Physalis, Lychees, Citrus, Table Grapes, Fine 
beans, Sugar snap, Mange tout, Pineapples, Passionfruit, Herbs, Chilies, 
Butternut and Sweet potatoes. 
 
AfriAg SA has advised the Company that it has placed orders for another 20 
refrigerated trucks to increase its fleet from the current 52 to 72 before the 
end of the year, to cope with the pace of expansion of the trucking logistics 
division in southern Africa. 
 
Financial Results: 
 
During the period, the Company increased revenues to GBP1,422,000 (6 months ended 
30 June 2015: GBP537,000) and made a gross profit of GBP183,000 (6 months ended 30 
June 2015: GBP49,000). The operating profit for the period was GBP6,000 (6 months 
ended 30 June 2015: loss GBP154,000). The total comprehensive income for the 
period attributable to equity holders of the parent was GBP87,000 (6 months ended 
30 June 2015: loss GBP169,000). 
 
There was a weighted earnings per share of 0.003p (30 June 2015: loss per share 
0.01p). 
 
Current assets at 30 June 2016 amounted to GBP1,063,000 (30 June 2015: GBP977,000). 
 
In addition, the Company's 40% owned AfriAg SA increased revenues to GBP4.430 
million (6 months ended 30 June 2015: GBP1.849 million) and made a gross profit 
of GBP286,000 (6 months ended 30 June 2015: GBP58,000), with a net profit for the 6 
months of GBP15,000 and total assets of GBP3.473 million. The Company has 
equity-accounted for its 40% share of this profit for the 6 months to 30 June 
2016, being GBP6,000 (6 months ended 30 June 2015: Loss GBP19,000). 
 
The unaudited interim results to 30 June 2016 have not been reviewed by the 
Company's auditor. 
 
In Conclusion: 
 
The Board would like to take this opportunity to thank our shareholders, staff 
and consultants for their continued support and I look forward to reporting 
further progress over the next period and beyond. 
 
 
David Lenigas 
Executive Chairman 
27 September 2016 
 
For further information, please contact: 
 
AfriAg Global plc:                                                        +44 
(0) 20 7440 0640 
David Lenigas / Anthony Samaha 
 
Nominated Adviser and Broker: 
Peterhouse Corporate Finance Limited           +44 (0) 20 7469 0930 
Guy Miller / Fungai Ndore 
 
 
 
Condensed Consolidated Statement of Comprehensive Income (unaudited) 
for the 6 months ended 30 June 2016 
 
                                         6 months to       6 months to        Year ended 
 
                                             30 June           30 June       31 December 
 
                                                2016              2015              2015 
 
                                           Unaudited         Unaudited           Audited 
 
                              Note             GBP'000             GBP'000             GBP'000 
 
Revenue                                        1,422               537             1,977 
 
Cost of sales                                (1,239)             (488)           (1,927) 
 
Gross Profit                                     183                49                50 
 
Administration expenses                        (177)             (203)             (313) 
 
Share Based Payment Charge                         -                 -                 - 
 
Operating profit/(loss)                            6             (154)             (263) 
 
Share of associate result                          6              (19)               143 
 
Finance costs                                    (5)                 -               (2) 
 
Investment income                                 41                 5                26 
 
Profit/(loss) before tax                          48             (168)              (96) 
 
Tax                                                -                 -                 - 
 
Retained profit/(loss) for                        48             (168)              (96) 
the period 
 
Other comprehensive income 
 
(Loss)/gain on revaluation                       (6)                32                36 
of available for sale 
investments 
 
Transfer to income statement                    (24)                 -               (7) 
 
Translation exchange gain/                        69              (33)             (102) 
(loss) 
 
                                                  39               (1)              (73) 
Total comprehensive income 
 
Total comprehensive income/                       87             (169)             (169) 
(loss) for the period 
attributable to equity 
holders of the parent 
 
Earnings/(loss) per share        2 
(p) 
 
Basic                                          0.003            (0.01)            (0.01) 
 
Diluted                                        0.003            (0.01)            (0.01) 
 
All of the revenues and loss above derived from continuing operations. 
 
 
Condensed Consolidated Statement of Financial Position (unaudited) 
At 30 June 2016 
 
                                         30 June 2016    30 June 2015     31 December 
                                                                                 2015 
 
                                            Unaudited       Unaudited         Audited 
 
                                                GBP'000           GBP'000           GBP'000 
 
Non-current assets 
 
Property, plant & equipment                         4               1               2 
 
Investments in associates                       1,482           1,314           1,476 
 

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September 27, 2016 07:53 ET (11:53 GMT)

DJ AfriAg Global Plc Half-year Report -2-

Total non-current assets                        1,486           1,315           1,478 
 
Current assets 
 
Inventory                                           5              61               - 
 
Trade and other receivables                       758             571             385 
 
Available for sale assets                         128             218             177 
 
Cash and cash equivalents                         172             127             248 
 
Total current assets                            1,063             977             810 
 
Total assets                                    2,549           2,292           2,288 
 
Current liabilities 
 
Trade and other payables                        (865)           (675)           (691) 
 
Total current liabilities                       (865)           (675)           (691) 
 
Net current assets                                198             302             119 
 
Net assets                                      1,684           1,617           1,597 
 
Equity 
 
Share capital                                   1,381           1,381           1,381 
 
Share premium account                           8,548           8,548           8,528 
 
Share based payment reserve                       213             213             213 
 
Revaluation reserves                             (16)              17              14 
 
Foreign currency reserve                         (54)            (54)           (123) 
 
Retained earnings                             (8,368)         (8,488)         (8,416) 
 
Total equity                                    1,684           1,617           1,597 
 
 
Condensed Consolidated Statement of Changes in Equity (unaudited) 
for the 6 months ended 30 June 2016 
 
                         Share    Share    Share   Foreign  Revaluation Retained  Total 
                        capital  premium   based   currency  reserves   earnings 
                                          payment  reserve 
                                          reserve 
 
                           GBP'000    GBP'000    GBP'000    GBP'000       GBP'000    GBP'000    GBP'000 
 
At 31 December 2014        1,381    8,548      213     (21)        (15)  (8,320)    1,786 
 
(Loss) for the period          -        -        -        -           -     (96)     (96) 
 
Currency translation           -        -        -    (102)           -        -    (102) 
(loss) 
 
Gain on revaluation of         -        -        -        -          36        -       36 
available for sale 
investments 
 
Transfer to income             -        -        -        -         (7)        -      (7) 
statement 
 
Total Comprehensive            -        -        -    (102)          29     (96)    (169) 
Income 
 
Shares issue costs             -     (20)        -        -           -        -     (20) 
 
Total contributions by         -     (20)        -        -           -        -     (20) 
and distributions to 
owners of the Company 
 
At 31 December 2015        1,381    8,528      213    (123)          14  (8,416)    1,597 
 
Profit for the period          -        -        -        -           -       48       48 
 
Currency translation           -        -        -       69           -        -       69 
gain 
 
(Loss) on revaluation          -        -        -        -         (6)        -      (6) 
of available for sale 
investments 
 
Transfer to income             -        -        -        -        (24)        -     (24) 
statement 
 
Total Comprehensive            -        -        -       69        (30)       48       87 
Income 
 
Shares issue costs             -        -        -        -           -        -        - 
 
Total contributions by         -        -        -        -           -        -        - 
and distributions to 
owners of the Company 
 
At 30 June 2016            1,381    8,528      213     (54)        (16)  (8,368)    1,684 
 
 
Condensed Consolidated Statement of Cash Flows (unaudited) 
for the 6 months ended 30 June 2016 
 
                                          6 months to    6 months to     Year ended 
 
                                              30 June        30 June    31 December 
 
                                                 2016           2015           2015 
 
                                            Unaudited      Unaudited        Audited 
 
                                                GBP'000          GBP'000          GBP'000 
 
Cash flows from operations 
 
Operating profit/(loss)                             6          (154)          (263) 
 
(Increase) in inventories                         (5)           (61)              - 
 
(Increase) in trade & other                     (373)          (279)           (93) 
receivables 
 
Increase in trade & other payables                174            183            199 
 
Share option charge                                 -              -              - 
 
Net cash used in operating activities           (198)          (311)          (157) 
 
Investing activities 
 
Investment income                                   7              5              8 
 
Finance costs                                     (5)              -            (2) 
 
Receipts on sale of AFS investments                53              -             57 
 
Payments for PPE assets                           (2)              -            (2) 
 
Net cash from investing activities                 53              5             61 
 
Financing activities 
 
Issue of share capital                              -              -              - 
 
Issue costs                                         -              -           (20) 
 
Net cash from financing activities                  -              -           (20) 
 
Net (decrease) in cash and cash                 (145)          (306)          (116) 
equivalents 
 
Cash and cash equivalents at the                  248            467            467 
beginning of period 
 
Effect of foreign exchange on cash and             69           (34)          (103) 
cash equivalents 
 
Cash and cash equivalents at the end              172            127            248 
of period 
 
Notes to the Condensed Consolidated Interim Financial Information (unaudited) 
 
1.  General information 
 
The condensed consolidated interim financial information for the period ended 
30 June 2016 has not been audited or reviewed in accordance with the 
International Standard on Review Engagements 2410 issued by the Auditing 
Practices Board. The figures were prepared using applicable accounting policies 
and practices consistent with those adopted in the statutory accounts for the 
period ended 31 December 2015. The figures for the period ended 31 December 
2015 have been extracted from these accounts, which have not been required to 
be delivered to the Isle of Man Registrar of Companies, and do however 
contained an unqualified audit report. 
 
The condensed consolidated interim financial information contained in this 
document does not constitute statutory accounts. In the opinion of the 
directors the financial information for this period fairly presents the 
financial position, result of operations and cash flows for this period. 
 
The Condensed Consolidated Interim Financial Information was approved by the 
Board of Directors on 27 September 2016. 
 
Statement of compliance 
 
These condensed consolidated interim financial statements have been prepared in 
accordance with International Financial Reporting Standards (IFRS) as adopted 
by the European Union with the exception of International Accounting Standard 
('IAS') 34 - Interim Financial Reporting. Accordingly, the interim financial 
statements do not include all of the information or disclosures required in the 
annual financial statements and should be read in conjunction with the Group's 
2015 annual financial statements. 
 
2.  Earnings / (loss) per share 
 
The calculation of the earnings/(loss) per share is based on the profit/(loss) 
attributable to ordinary shareholders divided by the weighted average number of 
shares in issue during the period. 
 
                                            6 months to     6 months to            Year 
 
                                                30 June         30 June     31 December 
 
                                                   2016            2015            2015 
 
                                              Unaudited       Unaudited         Audited 
 
                                                  GBP'000           GBP'000           GBP'000 
 
Profit/(loss) attributable to equity                 48           (168)            (96) 
holders of the Group 
 
Number of Shares                                                  000's           000's 
 
Weighted average number of ordinary           1,381,001       1,381,001       1,381,001 
shares 
 
Share options in issue                           79,000          79,000          79,000 
 
Weighted average number of ordinary           1,460,001       1,460,001       1,460,001 
shares - diluted 
 
Earnings/(loss) per share - basic                 0.003          (0.01)          (0.01) 
 
Earnings/(loss) per share - diluted               0.003          (0.01)          (0.01) 
 
3.  Events after the end of the reporting period 
 
On 26 July 2016, the Company changed its name from Afriag Plc to Afriag Global 
Plc. 
 
On 11 August 2016, the Company issued 100 million ordinary shares from the 
existing shares held in the Company's Employee Benefits Trust to Mr Paul de 
Robillard. 
 
4.  A copy of this interim financial statement is available on the Company's 
website www.afriagglobal.com. 
 
 
 
END 
 

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September 27, 2016 07:53 ET (11:53 GMT)