LONDON (Alliance News) - Agribusiness company Obtala Resources Ltd posted a massive rise in pretax profit for the first half on Tuesday, driven partly by higher revenue but also a gain made on the revaluation of its biological asset.
The company said its pretax profit in the half year to the end of June was GBP5.8 million, up from GBP283,000 a year earlier, primarily as a result of a GBP8.6 million one-off gain the company made from the revaluation of a biological asset.
Revenue rose to GBP2.3 million from GBP1.2 million, pushed higher by new product launches in its agribusiness unit, the development of higher-margin products in its timber business, and a continued focus on improving the operational performance of its retail arm.
The group said it is focused on "micro-managing" its cost base, and it expects further sales growth in the second half. It also will be working to progress its timber business in Mozambique and has decided against taking on a strategic partner to pursue its goals for the division.
"The directors are optimistic for the outlook of the group. We are very clear about our vision, keeping our business model simple, focusing on execution, micro-managing our costs whilst increasing our revenues and margins," said Frank Scolaro, Obtala's chairman.
Shares in Obtala were down 13% to 6.00 pence on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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