(Alliance News) - Anglo African Agriculture PLC on Friday posted a widened loss for its first half of financial 2020 but holds future guidance despite "promising" outlook.
Shares in the company - which owns South African food producer Dynamic Intertrade (Pty) Ltd - were untraded on Friday morning in London, last quoted at 4.00 pence each.
For the six months ended April 30, Anglo African posted a pretax loss of GBP210,067, widened from GBP206,962 the year prior. Turnover was GBP792,743, down 18% from GBP969,580.
The deterioration was attributed to poor performance in the first quarter by Dynamic Intertrade, driven by an economic slowdown in South Africa and the weakening of the rand.
No results for 47%-owned Dynamic Intertrade Agri were reported, as the business is in the process of being sold.
Looking ahead, Anglo African Agriculture said it remains confident of the future for Dynamic Intertrade despite the current global environment, adding that sales since the end of April have remained strong and are currently comparable year-on-year. While the company's outlook remains promising, it cannot give future financial guidance due to Covid-19 related uncertainty.
Anglo African Agriculture said it was making progress with the reverse takeover of the Comarco group of companies, "however capital raising in these uncertain times has been difficult to say the least".
Separately, Anglo African Agriculture said it has netted GBP97,786 through the subscription of 2.6 million shares total by its directors at 4 pence each. The subscription shares represent 12% of the company's issued share capital.
The subscription price represents a 13% discount to the 4.6p closing price on Wednesday, being the business day before the subscription agreement, wit. The new cash will be used to accelerate sales growth of Dynamic Intertrade and for general working capital.
In a separate statement, the company said it has agreed a 12-month extension to the term of its convertible loan notes.
In October 2018, Anglo African Agriculture issued 50 million convertible loan notes at 0.5p each for a total amount of GBP250,000 with a conversion price of 0.75pn a term of two years, and an interest rate of 12% per annum.
In October 2019, the company undertook a share consolidation of 20 to 1. Post share consolidation, the notes were redeemable on September 30 of this year unless they were converted into shares at a conversion price of 15p each.
On Friday Anglo African Agriculture said that in addition to agreeing a 12-month extension to the notes, interest payments have been changed to capital repayments. In return, the conversion price has been lowered to 5p.
Anglo African Agriculture shares were down 13% in London on Friday at 4.00 pence.
By Ife Taiwo; ifetaiwo@alliancenews.com
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