Agriterra narrows loss despite beef difficulties

18th Nov 2016 10:38

(ShareCast News) - African agricultural company Agriterra announced its audited final results for the year to 31 May on Friday, with a group loss for the year from continuing operations - which excludes the results of the discontinued cocoa operations - of $7.68m, down from $8.21m.The AIM-traded firm said excluding non-recurring impairments recorded against property, plant and equipment in the Beef division of $3.07m, the loss decreased by 44% to $4.61m.It said the decrease in loss reflected both an increase in gross profit of $1.25m, primarily in the Grain division, combined with a decrease in other operating expenses of $2.22m, primarily in the Grain division and central corporate overheads.Overall, the operating profit of the grain division was $0.81m compared to an operating loss of $2.13m in FY2015, while the operating loss of the Beef division, excluding impairments of property, plant and equipment increased to $2.91m from $2.32m."The African agriculture market remains an area of growth potential, with Mozambique having particularly strong prospects because of the eagerly anticipated establishment of a liquefied natural gas industry in the north of the country," said chair Caroline Havers on the firm's outlook."As and when this industry gains significant development and production traction in Mozambique, it is expected to significantly change the economy of the entire country, which will translate into consequential growth in our revenue potential."