LONDON (Alliance News) - AfriAg PLC Friday said its pretax loss widened in 2014 despite the company generating its maiden revenue.
The African-focused agriculture logistics company reported a GBP835,000 pretax loss in 2014, widening from the GBP306,000 loss in 2013 after it generated its maiden revenue of GBP391,000. The loss widened on a rise in administration expenses and a GBP430,000 loss on an equity swap.
That equity swap loss stems from the cancellation of the equity swap agreement with YA Global Master SPV Ltd back in 2013.
"AfriAg has been gradually transitioning itself from its previous life as the defunct 3D Diagnostics Imaging PLC, and the board now considers that we are entering into a new and exciting growth period for the company and is confident that the investments made by the company are both encouraging and potentially rewarding. We will look to realise this potential over future years in addition to continuing to review other investment opportunities," said Chairman David Lenigas.
In 2014 the company was awarded a contract to transport fresh produce farmed by Vanduzi, part of the Gatsby Foundation's Mozfoods (SA) operations in Mozambique, to countries such as South Africa, UK, Holland, Germany, and potential future markets include the UAE.
Under this contract, AfriAg SA is now transporting around 30,000-35,000 kilogrammes per week of Vanduzi's baby corn and chili orders through Zimbabwe into South Africa.
AfriAg shares were up 3.6% to 0.492 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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