5 September 2018 |
For Immediate
Release |
Anglo African Agriculture
plc
(“AAAP” or the “Company”)
Update on business
and corporate activities.
Highlights:
Dynamic Intertrade – 100% owned
Southern African spice business update
- 3rd Quarter ending 31 July
2018 revenue in food manufacturing increases year on year by
14.8% to South African Rand 11,152m
(from R9.713m)
- Tonnage of product sold increased by 11.34% to 321 tonnes 3Q
2018 vs 3Q 2017.
Kenya
Port – Proposed loan facility, as announced on 30 August 2018
- Progress made on finalising loan to be made, subject to the
raising of necessary finance and fulfilment of final conditions
precedent, to Comarco port in Kenya.
- Comarco trading positively
- has signed contracts with global oil and gas major ENI
to provide storage, handling and offshore drilling support services
for 2 years with annual extensions thereafter.
- has secured extensions for existing supply base
tenants, including Marubeni Itochu, Halliburton, BGP and Exalo
Drilling.
- Iron ore shipments have commenced. Iron ore port handling
contracts now in place for over 1,000,000 of iron ore movement,
with further optional extensions of 1,000,000 tonnes.
- has signed a 10 year renewable contract with a major LPG
distributor to provide space, mooring and throughput access. Ground
is to be broken in September
2018.
David Lenigas, Chairman of AAAP,
comments; “We are seeing a good uptrend in business activities from
our core food manufacturing business in South Africa. The Company also believed it was
important to update shareholders on Comarco’s business activities
in recent months. The Comarco commentary is important as, as
announced on 30 August 2018, the
Company is considering a secured loan to Comarco that, if closed,
will be secured by a number of the port’s assets. A strong Comarco
provides a much better level of security for the proposed
loan.”
Anglo African Agriculture plc (LSE: AAAP), the London Main Board
listed company trading under the ticker symbol AAAP:LN, is pleased
to provide the following update on its 100% owned Dynamic
Intertrade (Pty) Limited (“Dynamic”) spices and seasoning
manufacturing business and a general update on the proposed
loan facility to be provided to the Comarco port in Kenya in recent months.
Update on South African food
manufacturing business
Dynamic has achieved a solid growth in 3rd quarter volumes and
revenues for the quarter ending 31 July
2018. Sales for the quarter are up 14.8% in South African
Rand terms from R9.713m (GBP0.575) to
R11.152m (GBP0.641). In
addition, gross margins have increased due to better buying and an
increase in efficiencies. Volumes increased from 288 tonnes to 321
tonnes. Dynamic has increased its sales force by 3 sales people and
anticipates delivering better performances over the next period.
Dynamic had previously announced that new equipment purchased would
reduce the cost structure, and this is evident in the increased
margins. With that said, the underlying ingredients of the spice
blends manufactured and sold by Dynamic are commodities and are
subject to price fluctuations. Dynamic is continually expanding its
product range and, working with AAAP’s 46.8% owned subsidiary,
Dynamic Intertrade Agri (Pty) Ltd, has just sold its first 20
tonnes of sugar.
Turning to management, Ronel Putter and Dave Ransom were appointed to the board of
Dynamic Intertrade in South Africa
as Financial and Sales director respectively.
Dynamic is based in a modern 3,000 m² FSSC compliant facility
in Cape Town, South Africa and is involved in the
importation, milling, blending and packaging of food products for
the food manufacturing sector with bespoke lines that include
herbs, spices, additives and seasonings for both the domestic and
export markets.
Update on Comarco Group
As announced on 30 August 2018,
the Company has entered into a Memorandum of Understanding whereby
it is proposed, subject to funding, that AAAP will provide a 24
month loan to help fund the growth of the privately owned port and
marine logistics group, Comarco Group, based in Mombasa, Kenya. All
proposed transactions between the Comarco Group and AAAP are
subject to the completion of due diligence, the completion of legal
documentation and the production of such valuations and opinions as
the company shall consider appropriate, in each case satisfactory
to AAAP in its sole discretion and subject to board approval. This
is intended to be the first step of a diversification for AAAP,
which the Directors believe will allow the Company to significantly
grow its business.
During this calendar year, the Comarco Group has secured some
new contracts and re-signed most of their existing major port
clients. In January 2018 Comarco
signed a contract with global oil major ENI to provide storage,
handling and offshore drilling support services for two years with
annual extensions thereafter. It also signed extensions for
existing port tenants, including Marubeni Itochu, Halliburton, BGP
and Exalo Drilling. During the year a handling and export contract
of 1,000,000 tonnes of iron ore was secured, with further optional
extension of 1,000,000 tonnes, using Comarco barges for stevedoring
the cargo to bulk vessels at anchorage. Comarco has already moved
110,000 tonnes of iron ore to date. In June
2018 Comarco signed an additional contract for the handling
and export of a further 200,000 tonnes of iron ore to be completed
before December 2018.
In May 2018, Comarco signed a 10
year renewable contract with a major LPG distributor to provide
space, mooring and throughput access. Ground is to be broken in
September 2018.
Importantly, Comarco received confirmation in June 2018 of the extension of its stevedoring
licence issued by the Kenya Government to operate the Comarco port
on a private basis. The Comarco port is the only privately licensed
facility in East Africa properly
authorised to handle bulk, breakbulk and project cargoes.
The port is also in final contract negotiations with a large
multinational to provide storage, handling and transport services
of cargoes for the UN to East
Africa.
For further information please
contact:
Anglo African Agriculture
plc |
+44 (0) 20 7440 0640 |
David Lenigas, Non-Executive
Chairman |
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Rob Scott, Executive Director |
+27 (0) 84 600 6001 |
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VSA Capital Limited
(Financial Adviser and Corporate Broker) |
+44 (0) 20 3005 5000 |
Andrew Raca |
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