LONDON (Alliance News) - Agricultural logistics provider AfriAg PLC on Thursday said its pretax loss narrowed in the first half and said it is focused on making the business profitable as it continues to ramp up its operations.
The group said its pretax loss for the first half to end of June was GBP168,000, compared to a GBP454,000 loss a year earlier. The group generated GBP537,000 in revenue in the half, having not generated any the year earlier.
AfriAg said the second half of the year will be its busiest period, with southern Africa gearing up to export a wide range of fruits. It expects the second half to be very busy, with trucking and airfreight of blueberries, pineapples, peaches, plums and lychees to Europe, the Middle East and Asia due to ramp up.
The group has also seen an increase in activity for its marketing division, which has seen a rise in trading and transportation of fresh fruit and vegetables back to Zambia and Mozambique from South Africa, which has resulted in the group having to continuously increase its logistics fleet.
David Lenigas, AfriAg's executive chairman, said the first half is traditionally the quietest period for agricultural exports from southern Africa. "We see a stronger second half in front of us, as the majority of airfreighted perishable goods are harvested and exported during this period due to the seasonal differences between southern Africa and the northern hemisphere," he added.
"We can now see the business approaching critical mass, and the board of directors are now focused on turning this business profitable," Lenigas said.
Shares in AfriAg were down 19% in early trade to 0.32266 pence, one of the worst performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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