Business
AAA Interim Results
AAA Interim Results.
About this update from Everest Global Plc
[{"type":"text","content":"\n \n ANGLO AFRICAN AGRICULTURE PLC\n DIRECTORS’ REPORT AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n FOR THE SIX MONTHS ENDED 30 APRIL 2020\n Anglo African Agriculture plc (“AAA” or the “Company”)\n Half yearly report for the six months ended 30 April 2020\n The Chairman’s Report\n We are reporting our results to the end of 30 April 2020 but since then much has changed due to the Coronavirus pandemic. It has been difficult to quantify the layers of complexity it has added to the business, however it has been immense. As indicated previously, Dynamic Intertrade will see a significant improvement in annual sales year on year in local currency. This will to a certain extent be mitigated by the commercial effects of the Coronavirus which include a reduction in liquidity from funders and creditors as well as margin pressures. In addition, the deterioration of the exchange rate for the South African Rand will affect the results in the reporting currency. However overall, we can be pleased with the positive performance now being seen by Dynamic Intertrade. The Comarco transaction is still progressing, however capital raising in these uncertain times has been difficult to say the least. With that said, the gas project in Northern Mozambique has been given the final investment decision (“FID”) and will be proceeding, which will make Mozambique one of the largest producers of LNG in the world. The construction of the facility will be one of the most expensive construction projects in the world and, currently, it is only predominantly accessible by sea. Comarco is strategically placed to take advantage of supporting the contractors developing the gas fields and associated infrastructure.\n Dynamic Intertrade (“DI”)\n For the period under review DI has been negatively impacted by the economic slowdown in South Africa which coincided with the country’s demotion to junk status and the resulting weakening of the South African currency. For the 6-month period ending 30 April 2020, the combined effect has been a 10.5% reduction in revenue from R17.67 million in 2019 to R15.82 million. DI imports the majority of its inventory and this reflected in the costs of revenue remaining almost static at R11.1 million for 2020 (R11.4 million for 2019). Operating expenses have also been impacted by the current economic environment where importation cha...