Half-year Report

KAKUZI LIMITED

EXTRACT FROM THE INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD OF SIX MONTHS TO 30 JUNE 2016

The unaudited results for the Kakuzi Group for the period of six months to 30 June 2016 and the comparative figures for the previous year are as follows:

Condensed Consolidated Statement of Comprehensive Income

30 June 2016

Restated

30 June 2015

Shs'000

Shs'000

Sales

437,347

420,173

(Loss)/Profit before fair value gain in Biological assets and income tax

(109,297

)

(33,858

)

Fair value gain in Biological assets

57,693

37,411

(Loss)/Profit before income tax

(51,604

)

3,553

Income tax credit/(expense)

16,366

(1,117

)

(Loss)/Profit for the period

(35,238

)

2,436

Other Comprehensive Income

-

-

Total comprehensive (Loss)/income

(35,238

)

2,436

Total comprehensive (loss)/income attributable to

equity holders of the company:

(35,238

)

2,436

Shs

Shs

Earnings per share attributable to equity holders of the company:

Basic and diluted earnings per stock unit

(1.80

)

0.12

Condensed Consolidated Statement of Financial Position

Restated

Restated

30 June 2016

30 June 2015

31 December 2015

Shs'000

Shs'000

Shs'000

EQUITY

Share capital

98,000

98,000

98,000

Other reserves

8,936

3,981

8,936

Retained earnings

3,135,304

2,811,683

3,170,542

Proposed dividends

-

-

98,000

Total equity

3,242,240

2,913,664

3,375,478

Non-current liabilities

699,444

699,653

712,787

3,941,684

3,613,317

4,088,265

REPRESENTED BY

Non-current assets

2,922,894

2,676,157

2,833,891

Current assets

634,409

503,175

448,150

Cash and cash balances

731,663

665,083

1,175,434

Current liabilities

(347,282

)

(231,098

)

(369,210

)

Net current assets

1,018,790

937,160

1,254,374

3,941,684

3,613,317

4,088,265

Overview:

The above is an extract from the interim financial statements which have been prepared in accordance with the International Financial Reporting Standards (IFRS).

The company has fully adopted the amendments to the International Accounting Standard (IAS) 41 - Agriculture and our permanent plantings are now classified under IAS 16 - property, plant and equipment as bearer plants to be depreciated over their expected useful life. This has resulted in the original reported profit before tax for the six month period to 30th June 2015 of Ksh 63.8 million being restated to Ksh 3.5 million.

The loss before tax for the period under review is Ksh 51.6 million. This somewhat disappointing result has been mainly due to lower tea prices, lower livestock sales and the delay of macadamia sales due to awaiting completion of the cracking facility construction.

To predict financial performance for the year is impossible at this stage with the irregularities of supply and demand together with exchange rates to contend with.

The Directors do not recommend the payment of an Interim Dividend.

BY ORDER OF THE BOARD

K W TARPLEE

CHAIRMAN

02 August 2016