Last checked at 29 Aug 2018 15:00
29 August 2018
Zambeef Products plc
("Zambeef" or the "Group")
Operational Update
Zambeef (AIM: ZAM), the fully integrated cold chain foods and retail business with operations in Zambia, Nigeria and Ghana, provides the following operational update.
Lifting of live animal movement ban
The Group is pleased to report that the ban on the movement of live animals in and out of the Chisamba and Chibombo districts as a result of Foot and Mouth Disease (FMD) has been lifted. As a result of FMD, the Zambeef dairy lost 175 animals and received an insurance payout policy of c. USD240,000 in compensation. Zambeef also confirms that the volume of milk being produced by the dairy herd has fully recovered to levels that existed before the outbreak of the disease. The financial effect of FMD was sufficiently provided for in the March 2018 interim results and reported on 6 June 2018.
Bacteria leaf streak in wheat crop
Zambeef also confirms that the common bacterial disease, Bacteria Leaf Streak (BLS), has been detected in its winter wheat crop. As a result of the disease, wheat yields are anticipated to be lower than initially budgeted. However, wheat sales contracts have been concluded at higher than budgeted prices per ton and therefore Zambeef does not currently anticipate that the BLS outbreak will have a material financial impact on the Group's performance for the 2018 financial year.
Completion of Zambeef technology project
The Group is pleased to announce that the project of installing new point of sale software in all Zambeef outlets is now complete. This successfull innovation will result in vastly more detailed and valuable management information being available to Zambeef's management.
Year End Trading Update
The Company expects to announce a trading update for the year ending 30 September 2018 in the week commencing 24 September 2018.
For further information, please contact:
Zambeef Products plc | Tel: +260 (0) 211 369003 |
Francis Grogan, Chief Executive Officer |
|
Craig Harris, Chief Financial Officer |
|
|
|
Strand Hanson Limited (Nominated & Financial Adviser) | Tel: +44 (0) 20 7409 3494 |
James Spinney |
|
Ritchie Balmer |
|
Frederick Twist |
|
| |
Finncap (Broker) | Tel: +44 (0) 20 7220 0500 |
Christopher Raggett | |
Powerscourt (Financial PR) | Tel: +44 (0) 20 7250 1446 |
Nick Dibden | |
Jana Tsiligiannis | |
Pangaea Securities | Tel: +260 (0) 211 220 707 |
Ceaser Siwale | |
Wendy Tembo |
Notes to Editors
The Zambeef Group is one of the largest integrated cold chain food producers in Zambia, involved in the production, processing, distribution and retailing of beef, chicken, pork, milk, eggs, dairy products, fish, flour and stock feed. The Group also has large cereal row cropping operations (principally maize, soya beans and wheat), with approximately 7,971 hectares of row crops under irrigation, which are planted twice a year and a further 8,623 hectares of rain-fed/dry-land crops available for planting each year.
Further information can be found on www.zambeefplc.com
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014, and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
-Ends-