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AFR
AFR
AFR - Afgri Limited - Unaudited condensed consolidated financial results for the
six months ended 31 December 2009 and cash dividend declaration
AFGRI LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1995/004030/06)
ISIN number: ZAE000040549
Share code: AFR
Growth, the natural outcome
Unaudited condensed consolidated financial results for the six months ended 31
December 2009 and cash dividend declaration
Earnings per share up 22,6% to 48,3 cents per share
Headline earnings per share up 3,9% to 45,2 cents per share
Interim dividend declared of 24,15 cents per share
Debtors book reduced by R1,2 billion
Cash position improved by R317 million
Gearing ratio improved to 66,3%
Group balance sheet (R`millions)
Note 31 December 31 December 30 June
Unaudited Unaudited Audited
2009 2008 2009
ASSETS
Non-current assets 2 146 1 966 2 121
Property, plant and equipment 1 346 1 292 1 346
Goodwill 37 38 38
Other intangible assets 196 192 237
Investments in associates 36 33 36
Available-for-sale financial 41 36 41
assets
Financial receivables 330 232 266
Deferred income tax assets 160 143 157
Current assets 6 574 8 421 7 547
Inventories 979 1 273 1 023
Biological assets 53 42 53
Trade and other receivables 898 1 114 483
Trade receivables financed by 5 3 930 4 902 5 015
banks
Derivative financial 56 68 108
instruments
Current income tax assets 27 109 21
Cash and cash equivalents and 631 913 844
cash collateral deposits
?Cash collateral deposits 459 702 597
?Cash and cash equivalents 172 211 247
Assets of disposal groups 508 29 157
classified as held for sale
Total assets 9 228 10 416 9 825
EQUITY
Capital and reserves 1 583 1 449 1 487
attributable to equity holders
Share capital - - -
Treasury shares (90) (90) (90)
Incentive trust shares (185) (190) (192)
Fair value and other reserves 34 52 47
Retained earnings 1 824 1 677 1 722
Minority interests 689 629 646
Total equity 2 272 2 078 2 133
LIABILITIES
Non-current liabilities 364 344 329
Borrowings 151 144 128
Deferred income tax liabilities 213 200 201
Current liabilities 6 432 7 994 7 318
Trade and other payables 1 836 1 834 1 797
Derivative financial 90 53 89
instruments
Current income tax liabilities 7 33 6
Short-term borrowings - - 59
Call loans and bank overdrafts 573 1 172 363
Bank borrowings to finance 5 3 926 4 902 5 004
trade receivables
Liabilities of disposal groups 160 - 45
classified as held for sale
Total liabilities 6 956 8 338 7 692
Total equity and liabilities 9 228 10 416 9 825
Net asset value per share 446 424 430
attributable to equity holders
(cents)
Group income statement (R`millions)
Note Six months Six months Year
ended ended ended
31 December 31 December 30 June
Unaudited Unaudited Audited
2009 2008 2009
Continuing operations
Sales of goods and services 3 663 3 969 6 931
Interest on trade receivables 203 305 607
Total sales 3 866 4 274 7 538
Cost of sales (2 707) (3 115) (5 320)
Gross profit 1 159 1 159 2 218
Other operating income 43 63 119
Other operating expenses (705) (607) (1 189)
Operating profit 497 615 1 148
Finance costs 2 (242) (350) (680)
Share of profit of associates - 30 33
Profit before income tax 255 295 501
Income tax expenses (36) (57) (93)
Profit for the period from 219 238 408
continuing operations
Discontinued operations
Profit/(loss) for the period 16 (47) (54)
from discontinued operations
Profit for the period 235 191 354
Profit for the period
attributable to:
Equity holders of the Company 156 126 233
Minority interest - Agri Sizwe 70 59 110
partners
- Other minorities 9 6 11
Profit for the period 235 191 354
Weighted average number of 321,0 320,7 320,7
shares in issue (`m)
Diluted weighted average number 354,8 341,8 346,1
of shares in issue (`m)
Earnings per share from 44,6 51,9 86,1
continuing operations (cents)
Earnings/(losses) per share from 3,7 (12,5) (13,4)
discontinued operations (cents)
Earnings per share from all 48,3 39,4 72,7
operations (cents)
Diluted earnings per share from 40,4 48,7 79,8
continuing operations (cents)
Diluted earnings/(losses) per share 3,3 (11,8) (12,5)
from discontinued operations (cents)
Diluted earnings per share from 43,7 36,9 67,3
all operations (cents)
Headline earnings per share 3 45,2 43,5 74,4
from all operations (cents)
Diluted headline earnings per 3 40,9 40,9 68,9
share from all operations
(cents)
Dividends declared during the 24,15 19,70 36,40
period (cents)
Group statement of comprehensive income (R`millions)
Six months Six months Year
ended ended ended
31 December 31 December 30 June
Unaudited Unaudited Audited
2009 2008 2009
Profit for the period 235 191 354
Other comprehensive income
Exchange differences on 8 (31) (51)
translating foreign operations
Cash flow hedges (24) - 10
Other comprehensive loss for (16) (31) (41)
the period, net of tax
Total comprehensive income for 219 160 313
the period
Total comprehensive income
attributable to:
Equity holders of the Company 140 95 192
Minority interest - Agri Sizwe 70 59 110
partners
- Other minorities 9 6 11
219 160 313
Group statement of changes in equity (R`millions)
Share Fair value Retained Treasury Incentive
Capital and other earnings shares trust
reserves share
Balance 30 June 2008 - 80 1 578 (155) (124)
(audited)
Total comprehensive - (31) 126 - -
income
Share purchased by - - - - (1)
share incentive trust
Dividends paid - - (27) - -
Payment to Minorities - - - - -
Transfer of Group - - - 65 (65)
shares
Share-based payments - 3 - - -
Balance 31 December - 52 1 677 (90) (190)
2008 (un-audited)
Total comprehensive - (10) 107 - -
income
Share purchased by - - - - (2)
share incentive trust
Dividends paid - - (62) - -
Payment to Minorities - - - - -
Share-based payments - 5 - - -
Balance 30 June 2009 - 47 1 722 (90) (192)
(audited)
Total comprehensive - (16) 156 - -
income
Payment to minorities - - - - -
Share-based payments - 3 - - -
Dividends paid - - (54) - -
Sale of incentive - - - - 7
shares
Purchase of incentive - - - - -
shares
Balance 31 December - 34 1 824 (90) (185)
2009 (un-audited)
Group statement of changes in equity (R`millions) (continued)
Total Agri Other Total
shareholders Sizwe minorities
equity partners
Balance 30 June 2008 (audited) 1 379 593 19 1 991
Total comprehensive income 95 59 6 160
Share purchased by share (1) - - (1)
incentive trust
Dividends paid (27) - - (27)
Payment to Minorities - (48) - (48)
Transfer of Group shares - - - -
Share-based payments 3 - - 3
Balance 31 December 2008 (un- 1 449 604 25 2 078
audited)
Total comprehensive income 97 51 5 153
Share purchased by share (2) - - (2)
incentive trust
Dividends paid (62) - - (62)
Payment to Minorities - (37) (2) (39)
Share-based payments 5 - - 5
Balance 30 June 2009 (audited) 1 487 618 28 2 133
Total comprehensive income 140 70 9 219
Payment to minorities - (33) (3) (36)
Share-based payments 3 - - 3
Dividends paid (54) - - (54)
Sale of incentive shares 7 - - 7
Purchase of incentive shares - - - -
Balance 31 December 2009 (un- 1 583 655 34 2 272
audited)
Group cash flow statement (R`millions)
Six months Six months Year
ended ended ended
31 December 31 December 30 June
Unaudited Unaudited Audited
2009 2008 2009
Operating activities
Net profit before tax 297 283 492
Changes in working capital (523) (359) 535
Other non-cash flow items (8) (43) (99)
Tax paid (36) (47) (53)
Net cash (utilised in)/generated (270) (166) 875
by operating activities
Net cash generated by/(utilised 42 (384) (454)
in) in investing activities
Net cash utilised in financing (57) (68) (194)
activities
Net increase/(decrease) in cash (285) (618) 227
and cash equivalents
Cash and cash equivalents at the (116) (343) (343)
beginning of the year
Cash and cash equivalents at the (401) (961) (116)
end of the period
Cash collateral deposits 459 702 597
Cash and cash equivalents and 58 (259) 481
cash collateral deposits
Notes to the unaudited condensed consolidated interim financial
statements
1. Basis of preparation and accounting policies
These condensed consolidated interim financial statements have been
prepared in accordance with IAS 34 and the South African Companies
Act, as amended ("Companies Act") and under the historical cost
convention, as modified by the revaluation of available-for-sale
financial assets and financial liabilities (including derivative
financial instruments) and biological assets at fair value through
profit or loss. The accounting policies conform to International
Financial Reporting Standards ("IFRS") and are consistent with
those applied in the corresponding prior period.
Finance costs Six months Six months
2. ended ended
31 December 31 December
2009 2008
(R`millions)
Interest paid on bank borrowings used to (169) (310)
finance trade receivables
Other interest paid to financial (73) (40)
institutions
Finance cost - Continuing operations (per (242) (350)
income statement)
Finance cost - Discontinued operations (9) (31)
Finance cost - Total (251) (381)
Six months Six months
ended ended
31 December 31 December
2009 2008
(Cents)
Reconciliation of headline earnings per
3. share
Earnings 48,3 39,4
Loss from discontinued operations - 9,8
Impairment of assets 0,4 1,1
Negative goodwill on acquisition of share of - (6,8)
associate
Profit on disposal of assets (3,5) -
Headline earnings 45,2 43,5
Diluted headline earnings 40,0 40,9
Business segment results
4.
The pre-tax segment results are presented without taking into
account any headline earnings adjustments and before the allocation
of any minority (including Agri Sizwe) share of profits. Operating
profits after finance costs are shown after a charge for internal
interest based on each operating unit`s net assets throughout the
period.
Trade receivables financed by banks and related liability
5.
The only security for the liability is the trade receivables
themselves, and in certain cases, additional cash collateral
deposits or cash trade receivables of between 10% and 15% of the
facility. The Group carries the risk of loss on these trade
receivables.
Agency agreements
6.
The Group manages Agri debtors on behalf of third party financial
institutions to the amount of R1 277 million (2008: R1 007
million). Management fees are paid by these third parties. The
Group is liable for bad debts to a maximum of between 5% and 10% of
the value of debtors administered.
The Group receives a fee for the handling, grading, storing and
administration of commodities on behalf of third parties. The value
of these commodities is R3 905 million (2008: R3 372 million).
Discontinued operations
7.
The trading results of the Tsunami business unit, the Lowveld- and
KwaZulu-Natal retail stores are disclosed as discontinued
operations. Sales agreements for all three businesses have been
concluded. The comparative reclassification between continuing and
discontinued operations in the income statement and business
segment results has been made.
Subsequent event
8.
At 31 December 2009 the Tsunami business units` assets and
associated liabilities were identified as a disposal group and
included under assets and liabilities of disposal groups classified
as held for sale. The trading results are included with the results
from discontinued operations. These assets contributed R286 million
(2008: R281 million) to the Group`s revenue and R19 million (2008:
R26 million) to the Group`s profit before tax. Subsequent to 31
December 2009 the Group concluded the sales agreement and
Competition Commission approval is awaited. More details regarding
this transaction were published on SENS on 1 February 2010.
On 4 February 2010, the Group entered into a sale agreement with
Capital Harvest to sell the Western Cape debtors book owned by Gro
Capital and the assets and liabilities of the AFGRI Western Cape
business unit. This event constitutes a non-adjusting event after
the reporting period in terms of IAS 10 and the business units
results are therefore included with the results from continuing
operations. These assets contributed R17 million (2008: R20
million) to the Group`s revenue and R2 million (2008: R4 million)
to the Group`s profit before tax. More details regarding this
transaction were published on SENS on 5 February 2010.
Business segment results (R`millions)
Six months ended 31 December 2009 and six months ended 31 December 2008
AFGRI Financial Services
Capital Broking
2009 2008 2009 2008
Revenue 329 469 10 16
-?sale of goods and services 126 164 10 16
-?interest 203 305 - -
Operating profit/(loss) (before 157 252 6 6
the items below)
-?other operating income 36 45 - -
-?pension fund surplus - - - -
-?depreciation and amortisation (14) (3) - -
-?allocation of Corporate costs (13) (13) (2) (2)
Operating profit/(loss) 166 281 4 4
Other items of profit and loss - - - -
-?fair value adjustment to - - -
disposal Group assets
-?share of profit/(loss) of - - - -
associates
Profit/(loss) before finance costs 166 281 4 4
Finance costs (164) (258) 1 -
Profit/(loss) before income tax 2 23 5 4
Income tax
Profit after tax
Assets 4 718 6 184 1 -
Non-current assets 376 281 - -
Other current assets 241 313 - -
Trade and other receivables 3 619 4 983 - -
Cash and cash equivalents 482 607 1 -
Liabilities 3 489 5 277 1 8
Non-current liabilities 112 109 - -
Other current liabilities 68 85 1 8
Borrowings to finance trade 3 258 4 902 - -
receivables
Call loans and overdrafts 51 181 - -
Net assets 1 229 907 - (8)
Capital expenditure 1 20 - -
AFGRI Financial Services contains the
Group`s lending operation (Capital)
and commodity broking activities.
Included in the Capital operating unit
is the Group`s Treasury function and
its Insurance Broking service unit.
Business segment results (R`millions) (continued)
Six months ended 31 December 2009 and six months ended 31 December 2008
AFGRI Agri Services
Producer Services Logistic Services
Primary inputs Retail Logistics Trading
2009 2008 2009 2008 2009 2008 2009 2008
Revenue 311 475 1 421 1 538 266 226 64 82
-?sale of goods 311 475 1 421 1 538 266 226 64 82
and services
-?interest - - - - - - - -
Operating 12 10 92 107 150 124 9 14
profit/(loss)
(before the
items below)
-?other - - - - - - - -
operating
income
-?pension fund - - - - - - - -
surplus
-?depreciation (4) - (6) (7) (9) (7) - -
and
amortisation
-?allocation of (4) (4) (10) (10) (13) (13) (4) (4)
Corporate costs
Operating 4 6 76 90 128 104 5 10
profit/(loss)
Other items of - - - 30 - - - -
profit and loss
-?fair value - - - - - - - -
adjustment to
disposal Group
assets
-?share of - - - 30 - - - -
profit/(loss)
of associates
Profit/(loss) 4 6 76 120 128 104 5 10
before finance
costs
Finance costs (1) (1) (20) (26) (8) (14) (7) (5)
Profit/(loss) 3 5 56 94 120 90 (2) 5
before income
tax
Income tax
Profit after
tax
Assets 403 557 1 336 1 399 476 403 598 295
Non-current 4 55 227 321 336 298 65 48
assets
Other current 373 277 911 883 38 25 116 110
assets
Trade and other - 206 191 136 101 79 386 93
receivables
Cash and cash 26 19 7 59 1 1 31 44
equivalents
Liabilities 219 378 677 658 78 60 884 702
Non-current 2 5 3 6 22 - 24 1
liabilities
Other current 217 373 674 649 56 60 860 701
liabilities
Borrowings to - - - - - - - -
finance trade
receivables
Call loans and - - - 3 - - - -
overdrafts
Net assets 184 179 659 741 398 343 (286) (407)
Capital 8 6 18 24 21 5 4 -
expenditure
AFGRI Producer Services AFGRI Logistic Services
consists of two operating includes both the Handling
units: Primary Inputs and and Storage and Logistic
Retail. The Retail unit Services divisions. The
includes FarmCity and Trading operation matches
Australia. Together AFGRI physical supply and demand
Logistics Services and AFGRI of grain commodities in a
Producer Services represent fully hedged environment.
AFGRI Agri Services.
Business segment results (R`millions) (continued)
Six months ended 31 December 2009 and six months ended 31 December 2008
AFGRI Foods and Other
Foods Other
Animal Oil and Corporate Group
protein protein eliminations
2009 2008 2009 2008 2009 2008 2009 2008
Revenue 1 581 1 287 296 260 1 1 (413) (80)
-?sale of goods 1 581 1 287 296 260 1 1 (413) (80)
and services
-?interest - - - - - - - -
Operating 136 122 20 20 (57) (54) - -
profit/(loss)
(before the
items below)
-?other - - - - 7 18 - -
operating income
-?pension fund - - - - - - - -
surplus
-?depreciation (30) (25) (3) (3) (5) (4) - -
and amortisation
-?allocation of (9) (9) (3) (3) 58 58 - -
Corporate costs
Operating 97 88 14 14 3 18 - -
profit/(loss)
Other items of - - - - - - - -
profit and loss
-?fair value - - - - - - - -
adjustment to
disposal Group
assets
-?share of - - - - - - - -
profit/(loss) of
associates
Profit/(loss) 97 88 14 14 3 18 - -
before finance
costs
Finance costs (29) (33) (2) (1) (12) (12) - -
Profit/(loss) 68 55 12 13 (9) 6 - -
before income
tax
Income tax
Profit after tax
Assets 1 488 1 337 208 315 409 485 (409) (559)
Non-current 873 750 103 109 162 104 - -
assets
Other current 269 257 45 77 39 138 (409)
assets (559)
Trade and other 340 314 59 101 132 104 - -
receivables
Cash and cash 6 16 1 28 76 139 - -
equivalents
Liabilities 552 611 98 89 1 322 1 137 (364)
(582)
Non-current 133 118 6 12 62 93 - -
liabilities
Other current 419 493 92 77 70 56 (364)
liabilities (582)
Borrowings to - - - - 668 - - -
finance trade
receivables
Call loans and - - - - 522 988 - -
overdrafts
Net assets 936 726 110 226 (913) (652) (45) 23
Capital 101 144 6 1 1 9 - -
expenditure
AFGRI Foods includes Animal The Corporate office houses
Protein, consisting of the certain of the Group`s
Animal Feed and Daybreak financing structures, CSI,
Farms operating units. The compliance and internal
Oil and Protein division audit functions, treasury
produces vegetable oil for and incentive shares, and
human consumption and incubates new projects.
associated byproducts. Corporate costs are
allocated to the divisions
where appropriate.
Business segment results (R`millions) (continued)
Six months ended 31 December 2009 and six months ended 31 December 2008
Totals
Continuing Discontinued All operations
operations operations
2009 2008 2009 2008 2009 2008
Revenue 3 866 4 274 544 758 4 410 5 032
-?sale of goods and 3 663 3 969 544 758 4 207 4 727
services
-?interest 203 305 - - 203 305
Operating 525 601 35 (16) 560 585
profit/(loss) (before
the items below)
- other operating 43 63 - - 43 63
income
-?pension fund surplus - - - - - -
-?depreciation and (71) (49) (6) (6) (77) (55)
amortisation
-?allocation of - - - - - -
Corporate costs
Operating 497 615 29 (22) 526 593
profit/(loss)
Other items of profit - 30 - - - 30
and loss
-?fair value - - - - - -
adjustment to disposal
Group assets
-?share of - 30 - - - 30
profit/(loss) of
associates
Profit/(loss) before 497 645 29 (22) 526 623
finance costs
Finance costs (242) (350) (9) (31) (251) (381)
Profit/(loss) before 255 295 20 (53) 275 242
income tax
Income tax (36) (57) (4) 6 (40) (51)
Profit after tax 219 238 16 (47) 235 191
Assets 9 228 10 416 9 228 10 416
Non-current assets 2 146 1 966 2 146 1 966
Other current assets 1 623 1 521 1 623 1 521
Trade and other 4 828 6 016 4 828 6 016
receivables
Cash and cash 631 913 631 913
equivalents
Liabilities 6 956 8 338 6 956 8 338
Non-current 364 344 364 344
liabilities
Other current 2 093 1 920 2 093 1 920
liabilities
Borrowings to finance 3 926 4 902 3 926 4 902
trade receivables
Call loans and 573 1 172 573 1 172
overdrafts
Net assets 2 272 2 078 2 272 2 078
Capital expenditure 160 209 160 209
Commentary
The directors of AFGRI Limited (AFGRI or "the Company") are pleased to present
the unaudited condensed consolidated interim financial results of the AFGRI
Group of companies ("the Group") for the six months ended 31 December 2009.
Operational review (revenue and profit before income tax)
The Group has undergone restructuring in order to more closely align its
activities with the "One AFGRI" vision and to improve operational efficiencies.
This has not changed its segmental reporting format which closely follows the
layout of the income statement and includes:
? AFGRI Financial Services (comprising the Capital and Broking business units)
? AFGRI Agri Services (comprising the Logistics and Producer Services
divisions)
? AFGRI Foods (comprising the Animal Protein and Oil and Protein businesses)
Continuing operations
AFGRI Financial Services
The worldwide credit crunch continues to impact this business. The experiences
of a year ago have resulted in a significant change in this business unit`s
philosophy, changing to one of more closely aligning the debtors` book with the
entire AFGRI value chain. A combination of both lower interest rates and a
smaller average debtors` book lead to a reduction in revenues for this segment
of some 30,1%. Despite efforts to rationalise aspects of the segment`s cost
structure, the re-pricing of facilities together with predominantly fixed
operating costs resulted in a decline of the segment`s profit before tax of some
74,1%.
This segment`s bad debt charge was restricted to 0,3% of the debtors` book for
the first six months of the year and further cost containment, the disposal of
non-core elements of the debtors` book, improved re-pricing flexibility and an
improvement in the credit market bode well for this segment`s future results.
AFGRI Agri Services
The grain storage, trading and logistics divisions (AFGRI Logistic Services)
once again made a sizeable contribution to the Group`s results following another
good maize crop and retaining its significant market share in the regions in
which it operates. The Trading division`s margins were placed under pressure due
to higher premiums for physical maize and much later pricing activity by both
producers and consumers. The Trading operation will spearhead the Group`s
expansion into Africa through physical trading activities. Overall, these three
divisions reported a 24,2% increase in profit before tax on a 7,1% increase in
revenue.
Despite several years of satisfactory harvests, activity in the Group`s Producer
Services division (retail, mechanisation and primary inputs) declined. This
decline was driven by a later buying season as input commodity prices declined
and equipment sales fell nationally, leading to a reduction in turnover for this
division of 14,0%. Both of these factors also impacted on the division`s overall
operating margin, which reduced from 4,8% to 4,6%. In total the division
reported a decline in normalised profit before tax (the 2008 result includes a
once-off negative goodwill figure of R30 million) of 14,5%.
The more significant disposals of non-core businesses, being the Tsunami
chemical subsidiaries and the Lowveld and KwaZulu-Natal retail stores, were
previously reported in the Producer Services division.
AFGRI Foods
The expansion of the Group`s poultry operations at Daybreak Farms in Mpumalanga
was commissioned in the first half of 2009 and a 57,4% year-on-year volume
increase has been recorded for the first six months of the financial year. In
total, Daybreak produced some 36 000 tons of poultry meat during this period.
This greater capacity coincided with a decline in poultry prices due to lower
consumer spending, increased industry capacity and higher imports. Net selling
prices were 8,5% lower on average than the prior year. The Animal Feeds business
saw an improvement in volumes and margins through effective procurement and
ongoing improvements in the formulation and manufacturing processes. The results
for the Oil and Protein division remained constant through improved extraction
yields and efficiencies. This division reported a 17,7% increase in profit
before tax on 21,3% higher revenue.
The majority of the Group`s capital expenditure was incurred in this segment and
during the current period has been focused on Animal Feeds where a 60 000 ton
factory is being refurbished in Pietermaritzburg and is expected to begin
production in April 2010 and at the Oil and Protein division where the focus has
been to restore the crushing and extraction plants to design capacities.
Discontinued operations
In previous years the discontinued operations have generally consisted of loss-
making business units. During the current year, non-core but profitable
operations have been, or are to be, disposed of in terms of the Group`s focused
strategy on the grain value chain.
Included in the results from discontinued operations are the trading results of
the Tsunami business unit and the Lowveld and KwaZulu-Natal retail stores. Sales
agreements for all three of these businesses have been concluded and the assets
are reflected under the heading "Assets of disposal groups classified as held
for sale". Competition Commission approval is awaited. No profit on the sale of
these assets has been included in the Group`s results at this time.
Earnings and headline earnings
The 23,8% increase in earnings attributable to equity holders translates into a
22,6% increase in earnings per share to 48,3 cents per share and an 18,4%
increase in diluted earnings per share. The significantly smaller percentage
increase in headline earnings per share arises from the fact that the prior
period comparative figure includes an add-back of approximately R32 million of
impairment losses arising from discontinued operations.
Cash flow
The focus on the restructuring of the balance sheet saw the Group improve its
gearing ratio (defined as interest-bearing debt less cash and cash equivalents
as a percentage of total funding) from 74,3% to 66,3% during the last 12 months.
This was driven through a concerted effort to reduce the debtors` book, control
inventories and limit capital expenditure.
The six month period under review is traditionally a time when the Group
experiences net cash outflows as farmers utilise their facilities and
inventories grow. This trend was repeated during the period although the net
cash outflow was restricted to R285 million, down from R618 million for the same
period in 2008.
The Group`s net cash position at 31 December 2009 of R58 million reflects an
improvement of R317 million over 31 December 2008.
Changes to the Board of directors and Company Secretary
Mr DD de Beer stood down as Chairman of the Board with effect from 1 January
2010 and was replaced by Mr JPR Mbau.
Mr CA Apsey resigned as a director with effect from 1 January 2010 and Messrs DD
Barber, FCA (England and Wales) and LM Koyana, BCom, BCompt (Hons), were
appointed as independent non-executive directors with effect from 10 January
2010.
Prospects
The next six months will show the extent and rate at which the world economy
will recover. Within the AFGRI region the hectares planted for the summer crop
approximate those of last year although a slight reduction in yields is
expected. Provided agricultural commodity prices do not decline further, the
financial position of producers should improve.
The Group`s results for the next six months will depend upon the size and timing
of the summer crop, improvements in the credit markets and the extent to which
consumer spending increases. The recent restructuring and refocus should produce
efficiency improvements across all of the Group`s activities. There remain areas
of the business that require a more detailed review of their strategy and there
may potentially be further restructuring.
By order of the Board
JPR Mbau (Chairman) CP Venter (Chief Executive Officer)
24 February 2010
Declaration of cash dividend
Notice is hereby given that the directors of AFGRI have declared an
interim cash dividend of 24,15 cents per share for the six months
ended 31 December 2009. In accordance with settlement procedures of
STRATE, the following dates will apply to the interim dividend:
Last day to trade cum the dividend Friday, 14 May 2010
Trading ex dividend commences Monday, 17 May 2010
Record date Friday, 21 May 2010
Dividend payment date Monday, 24 May 2010
There will be no dematerialisation or rematerialisation of AFGRI
shares certificates between Monday, 17 May 2010 and Friday, 21 May
2010, both dates inclusive.
By order of the Board
N van Wyk, Group Company Secretary
Centurion
Administration
Business address and registered office: 1st Floor AFGRI Building, 267 West
Street, Centurion, Fax (012) 643 1768, Tel (012) 643 8000
Company Secretary: Ms N van Wyk, PO Box 11054, Centurion 0046
Bankers: ABSA Bank Limited, Co-operatieve Centrale Raiffeisen-Boerenleenbank
B.A. trading as Rabo Bank, FirstRand Bank Limited, Hong Kong and Shanghai
Banking Corporation, Investec Bank Limited, Land and Agricultural Develoment
Bank of SA Limited, Nedcor Limited, Standard Bank of SA Limited, Standard
Chartered Bank
Auditors: PricewaterhouseCoopers Inc, 32 Ida Street, Menlo Park, 0102
Transfer secretaries: Computershare Investor Services (Proprietary) Limited, 70
Marshall Street, Johannesburg, 2001, PO Box 61051, Marshalltown, 2107, Tel
(011) 370 5000
Sponsor: Investec Bank Limited, 100 Grayston Drive, Sandown, Sandton, 2196, PO
Box 785700, Sandton, 2146
Directorate
Non-executive: JPR Mbau (Chairman), JJ Claassen (Vice-Chairman),
DD Barber, DD de Beer, JJ Ferreira, LM Koyana, MM Moloele, KL Thoka, FJ van der
Merwe
Executive: CP Venter (Chief Executive Officer), JA van der Schyff (Financial
Director), MI Mogari (Dr) (Deputy MD AFGRI Animal Feeds)
This announcement is available on sens and afgri`s website at: www.afgri.co.za
Date: 24/02/2010 07:15:02 Produced by the JSE SENS Department.
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