RE: Coverage12 Nov 2018 09:53
Anglo African Agriculture PLC (LON:AAAP) has decided to pull the trigger on the proposed US$1mln loan to Comarco Group.
The 24-month loan will be used to help fund the growth of Comarco’s port and marine logistics business and repay existing debt.
The secured loan will be provided at a 12% rate per annum increasing to 15% after nine months. In addition to this, Anglo African has begun to provide assistance with Comarco’s restructuring.
The directors of Anglo African are confident that the loan will open new avenues for both AAA and Comarco to jointly find and work on investment opportunities.
“Since our announcement that we intended entering into this loan, we have been approached by numerous parties expressing their interest to cooperate with us in various forms. This is significant, as this clearly demonstrates that we have managed to find a very valuable and uniquely positioned asset with potentially very large upside potential. The recent oil price rise has been highly beneficial for the port, as it is heavily exposed to oil and gas related services (although not solely reliant thereon),” said David Lenigas, the non-executive chairman of Anglo African.
“I am also delighted that the trading at both our fully owned subsidiary, Dynamic Intertrade (Pty) Ltd as well as our 46.8% owned subsidiary, Dynamic Intertrade Agri (Pty) Ltd, are continuing on their improved trend,” Lenigas added.
The shares were the top risers in London, up 60% at 0.60p.
Carr’s Group PLC (LON:CARR), one of the few listed company that cares about the correct use of possessive apostrophes, climbed 9p to 165p on the back of full-year results that topped the board’s expectations.
The agriculture and engineering group saw headline profit before tax surge 45.2% to £16.6mln in the year to September 1 from £11.4mln the year before on the back of a 16.5% increase in revenue to £403.2mln from £346.2mln.
The group reported a strong performance in UK Agriculture with growth across all areas, reflecting improved farm incomes. While USA feed blocks were significantly ahead of expectations, up 17.7%, driven by recovery in USA cattle prices.
"We are very pleased to announce a significant improvement in the group's financial performance for the year, exceeding the board's expectations, across both the Agriculture and Engineering divisions,” said Chris Holmes, the chairman of Carr’s Group.
“This performance was largely as a result of investments we made across the business in recent years, in addition to a recovery in our underlying markets,” he added.
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