| Wed 24 Nov 2004, 9:16 | | RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2004 |
|
AFGRI LIMITED - UNAUDITED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE SIX
MONTHS ENDED 31 AUGUST 2004
AFGRI LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1995/004030/06)
ISIN number ZAE000040549
Share code AFR
UNAUDITED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31
AUGUST 2004
Comments
The Directors of AFGRI Limited present the interim financial results of AFGRI
Limited group of companies (`the Group`) for the six months ended 31 August
2004. The Directors believe that acceptable results have been achieved in a year
which has been and continues to be, difficult for agriculture, especially taking
into account the lower commodity prices and the direct and delayed effect of the
stronger Rand.
NATURE OF BUSINESS
AFGRI is a leading South African agricultural services business that has
established itself as a one-stop solution to those involved in the agricultural
value chain from finance to grain handling and trading and from farming
equipment and requisites to cutting edge scientific services. The Group also has
investments in allied businesses which leverage the critical mass and core
skills of the Services business to
reduce the cyclicality of earnings related to an agricultural commodity
business.
OPERATIONAL REVIEW
Revenue
Turnover for the six months increased by 14,2% to R2,9 billion (2003: R2,5
billion).
The increase in turnover is mainly attributable to the acquisition of Natal
Agricultural Co-operative Limited and good sales of tractors and combine
harvesters in South Africa, Australia and Zambia. Sales of other farm requisites
in the traditional areas were under pressure due to low grain prices and ended
marginally up on the prior year.
Revenue in the Cotton business was again under pressure due to the lower world
cotton prices and the stronger Rand. This contrasted with improved performances
in the Animal Feed and Protein as well as the Financial Services businesses.
Headline earnings per share
Headline earnings per share of 30,2 cents is marginally up on the previous
interim period (30,1 cents).
The continued strong performance of the Rand, the decrease of world cotton
prices and a surplus of cotton lint had a negative impact on the Cotton
division`s results.
Top line growth in the Commercial Services business did not translate into
increased profitability as would be expected. This is mainly due to the reduced
margins in capital equipment, spare parts and agro chemicals sales as a result
of the strengthening Rand.
Natalagri, the Group`s latest acquisition, also reported a loss for the first
two months of operation. These negative effects were partially offset by a good
performance from Waltons in Australia.
Despite the difficult agricultural year, certain divisions achieved excellent
results. The main contributors were Financial Services, Handling and Storage and
Animal Feeds and Protein.
Increased credit facilities, improved efficiency in the credit approval process,
higher margins, more carry over debt as a result of low grain prices and a
broader customer base resulted in a good performance from the Financial Services
Division.
Lower grain prices, improved market share and stronger margins were the main
reasons for the improved results from the Animal Feeds and Protein businesses.
The bumper crop and the resultant increase in utilisation of storage facilities
and the increased milldoor volumes had a positive impact on Handling and Storage
results.
Cash generated by operating activities R79 million
After the payment of dividends of R80 million, the Group generated cash of R79
million from operating activities. This is an improvement of R161 million from
the previous period`s negative cash flow of R82 million. These funds and R77
million of the cash available on 29 February 2004 were utilised for net
investment activities.
The net cash position as at 31 August 2004 was R162 million compared to R235
million at 29 February 2004.
DIVIDEND
AFGRI will pay an interim cash dividend of 18,3 cents per share as well as a
proposed special distribution of 110,5 cents per share (refer BEE transaction).
Acquisitions AND MAJOR INVESTMENTS
The Group concluded the acquisition of Natalagri, the KwaZulu-Natal-based co-
operative, which was purchased for a consideration of R29 million with effect
from 1 July 2004. Although Natalagri is not yet profitable, it will be
recapitalised and restored to profitability in the near future.
The Group also expanded its current business through diversification and
regional representation with further investments of approximately R50 million in
factory upgrades, new technology, a shrimp feed facility and a joint animal feed
venture with Eastern Cape Agricultural Co-operative Limited.
The Group invested approximately R16 million in an insolvent lemon oil
processing business in the Lowveld. The business has entered into a supply
contract with Coca-Cola and the investment which the Group trusts will prove
profitable, served to provide a continuing service to lemon farmers in the area.
DISPOSALS
The disposal of the 50% shareholding in Earlybird Farm (Pty) Ltd to Astral Foods
Limited was concluded for a cash consideration of R250 million and a cash
dividend of R25 million, declared by Earlybird Farm. The Competition Commission
approved the transaction unconditionally and the Earlybird Farm results have
been included in the AFGRI results up to the effective date of 31 August 2004.
The Group also sold its 49% shareholding in the Western Cape commodity trading
business, Bester Voer en Graanbeurs (Pty) Ltd. The net profit on the disposal of
these joint ventures was R55 million (refer Note 9).
BLACK ECONOMIC EMPOWERMENT (BEE)
Four main objectives were set by the Group for its BEE initiative:
- Any transaction must be concluded at market value;
- The BEE consortium must be broad based and representative;
- It must supply candidates who will be actively involved in management; and
- Any transaction must add value to all stakeholders.
On this basis the Group has successfully concluded a BEE transaction which will
take effect from 1 December 2004. The salient features of the transaction are:
- The disposal by AFGRI Operations Ltd, a wholly owned subsidiary of AFGRI
Limited, of a 26,77% undivided interest in its operations and net assets to the
AGRI SIZWE Empowerment Trust for a cash consideration of R502 million.
- A special distribution of 110,5 cents per AFGRI share to AFGRI shareholders.
- The appointment of two BEE directors to the AFGRI Limited board.
Full details of the transaction will be announced separately on SENS and in the
press on 24 November 2004.
PROSPECTS
Operationally, the focus for the next six months will be on the integration of
Natalagri and the reduction of fixed overheads in the Group`s retail division.
However, the effects of the strong Rand and the resultant low commodity prices
as well as the late summer rains, are expected to have a negative effect on the
Group`s earnings in the second half.
By order of the Board
Mr PF Erasmus Mr JD Wright
(Non-executive Chairman) (Managing Director)
Declaration of interim dividend
Notice is hereby given that the directors of AFGRI have declared an interim
dividend of 18,3 cents per share for the interim period ended 31 August 2004. In
accordance with settlement procedures of STRATE, the following dates will apply
to the interim dividend:
Last day to trade cum the dividend Friday, 17 December 2004
Trading ex dividend commences Monday, 20 December 2004
Record date Friday, 24 December 2004
Dividend payment date Tuesday, 28 December 2004
There will be no dematerialisation or rematerialisation of AFGRI shares between
Monday, 20 December 2004 and Friday, 24 December 2004, both dates inclusive.
By order of the Board
Ms SL Reynolds
Group Company Secretary
Johannesburg
24 November 2004
Independent auditor review
Limited assurance report of the independent auditors to the directors of AFGRI
Limited Group regarding the unaudited interim financial statements in compliance
with par 3.23 of the Listings Requirements of the JSE Securities Exchange SA.
We have reviewed the interim financial information of AFGRI Limited Group
(`AFGRI Group`) for the six months ended 31 August 2004. The interim financial
information is the responsibility of the company`s directors. Our responsibility
is to report on the results of our review.
Our review was carried out in accordance with the guidelines laid down by The
South African Institute of Chartered Accountants. Our review consisted
principally of applying analytical procedures to the underlying financial data,
assessing the compliance with accounting policies, making enquiries of company
personnel responsible for financial and accounting matters and review of minutes
of meetings. The review excluded audit procedures, such as the test of controls
and verification of assets and liabilities, and was therefore substantially more
limited in scope than an audit where an audit opinion is expressed, performed in
accordance with South African Auditing Standards. It should be recognised that
our review did not constitute an audit and may not have necessarily revealed all
material facts.
Our review is not designed, and therefore cannot be relied upon to disclose any
irregularities, including fraud, which may exist.
Our review is not designed to, and therefore will not necessarily reveal
weaknesses in internal controls, errors in the accounting records or
misstatements of management estimates.
Based on our review, nothing has come to our attention that caused us to believe
that the attached interim financial information needs modification so as to
fairly present, in accor-dance with South African Statements of Generally
Accepted Accounting Practice, the financial position of the AFGRI Group at 31
August 2004 and the results of its operations for the six months then ended.
PricewaterhouseCoopers Inc
Registered Accountants and Auditors
Chartered Accountants (SA)
Johannesburg
24 November 2004
The signed copy of this review is available for inspection at the registered
office.
Administration
Business address and registered office 33 Sloane Street Knightsbridge Manor
Block B2 BRYANSTON Fax (011) 463 4139 Tel (011) 706 7897
Group Company Secretary Ms SL Reynolds PO Box 3559 Cramerview 2060
Bankers ABSA Bank Limited First National Bank Limited Land and Agricultural
Bank of SA Limited Nedcor Bank Limited Standard Bank of SA Limited
Auditors PricewaterhouseCoopers Incorporated
Transfer secretaries Computershare Investor Services 2004 (Proprietary)
Limited 70 Marshall Street Johannesburg 2001 PO Box 61051 Marshalltown 2107
Tel (011) 370 5000
Sponsor Rand Merchant Bank, a division of FirstRand Bank Limited,
Corporate Finance 1 Merchant Place Cnr Fredman Drive and Rivonia Road Sandton
2196 PO Box 786273 Sandton 2146
Directors Non-executive PF Erasmus (61) Chairman BSc Agric GAL Ebedes
(57) BSc Agric AC Ball (46) BCom (Hons), M Phil, CA(SA)
JJ Claassen (55) NO Davies (68) CA(SA) JJ Ferreira (52) BSc (Hons) (Civ Eng)
E Gutierrez-Garcia (37) BSc Med (Hons), CA(SA)
JT Jansen van Rensburg (59) FJ van der Merwe (47) LLB, MA
Executive JD Wright (46) BAcc, CA(SA) I de W Goosen (56) BCom, CA(SA)
THIS ANNOUNCEMENT IS AVAILABLE ON SENS AND AFGRI`S WEBSITE AT
www.afgri.co.za
AFGRI is a leading South African agricultural services business that has
established itself as a one-stop solution to those involved in the agricultural
value chain
14% REVENUE
69% EARNINGS PER SHARE
HEADLINE EARNINGS PER SHARE
CASH FROM OPERATING ACTIVITIES R79 MILLION
15% TANGIBLE NET ASSET VALUE PER SHARE
DIVIDEND AND PROPOSED SPECIAL 128,8 CENTS DISTRIBUTION
Unaudited Group balance sheet
Six months
ended Year ended
31 August 29 February
(reviewed) (audited)
Actual Actual Actual
2004 2003 2004
Note Rm Rm Rm
ASSETS
Non-current assets 746 645 708
Property, plant and equipment 2 526 500 517
Intangible assets 2 90 48 65
Interest in associates 10 3 4
Investments available for sale 18 15 17
Non-current assets 16 1 23
Deferred tax assets 86 78 82
Current assets 2 592 2 043 2 125
Inventories 1 136 641 588
Biological assets - 88 37
Receivables and prepayments 12 837 583 852
Financial assets 3 46 22
Current tax assets 80 92 87
Cash and cash equivalents 536 593 539
Total assets 3 338 2 688 2 833
EQUITY AND LIABILITIES
Capital and reserves 1 429 1 195 1 380
Share capital 3 - - -
Share premium 89 52 89
Reserves 359 343 372
Retained earnings 1 199 985 1 134
Treasury shares (128) (121) (122)
Incentive trust shares (90) (64) (93)
Minority interests 1 1 -
Non-current liabilities 46 53 64
Long-term debt 27 10 8
Deferred tax liabilities 19 43 56
Current liabilities 1 862 1 439 1 389
Trade and other payables 1 481 965 1 024
Financial liabilities 6 46 22
Current tax liabilities - - 38
Bank overdraft and short-term loans 375 428 305
Total equity and liabilities 3 338 2 688 2 833
Net tangible asset value per share (cents) 403 350 395
Unaudited Group income statement
Revenue 2 849 2 497 5 914
Cost of goods and services (2 396) (2 078) (4 837)
Gross profit 453 419 1 077
Dividend income 14 12 33
Other operating expenses (336) (307) (719)
Share of operating profits of associates 3 2 2
Operating profit from operations 4 134 126 393
Net profit on disposal of shares in
joint ventures 55 - -
Loss from discontinued operations 7 (13) (11) (23)
Profit before tax 176 115 370
Tax (31) (31) (96)
Net profit for the year 145 84 274
Weighted average number of shares in
issue (`m) 332,3 326,8 328,0
Earnings per share (cents) 43,7 25,7 83,5
Headline earnings per share (cents) 8 30,2 30,1 93,9
Unaudited Group cash flow statement
Operating activities
Net profit before tax 176 115 370
Changes in working capital 61 (83) (129)
Other non-cash flow items (29) 28 63
Dividends paid (80) (75) (115)
Tax paid (49) (67) (86)
Net cash generated from/(utilised in)
operating activities 79 (82) 103
Investing activities
Purchase of property, plant and equipment (82) (30) (87)
Purchase of intangible assets (22) (1) (22)
Proceeds from sale of property, plant and
Equipment 36 17 42
Acquisition of investments (2) - (21)
Disposal of investments and loans repaid 6 38 12
Disposal of shares in joint ventures 9 235 - -
Gross proceeds of shares in joint
ventures due (250) - -
Acquisition of shares in subsidiaries and
joint ventures 10 (77) - (22)
Net cash (utilised in)/generated from
investing activities (156) 24 (98)
Financing activities
Purchase of treasury shares (6) (8) (9)
Proceeds on disposal of incentive
trust shares 3 - 12
Repayment of long-term borrowings 7 (15) (19)
Net cash generated from/(utilised in)
financing activities 4 (23) (16)
Net decrease in cash and cash equivalents (73) (81) (11)
Movement in cash and cash equivalents
Beginning of year 235 246 246
Net decrease (73) (81) (11)
End of year 162 165 235
Unaudited Group statement of changes in equity
Incentive
Share Share Retained Treasury trust
capital premium Reserves earnings shares shares Total
Rm Rm Rm Rm Rm Rm Rm
Balance 28 February
2003 (audited) - 52 365 1 039 (113) (69) 1 274
Fundamental error - - - (63) - - (63)
Adjusted Balance
28 February 2003
(audited) - 52 365 976 (113) (69) 1 211
Net profit - - - 84 - - 84
Currency
translation
differences - - (7) - - - (7)
Valuation differences
on cash flow
hedges - - (15) - - - (15)
Dividends paid
in 2003 - - - (75) - - (75)
Disposal of incentive
shares - - - - - 5 5
Purchase of
treasury shares - - - - (8) - (8)
Balance 31 August 2003
(reviewed) - 52 343 985 (121) (64) 1 195
Net profit - - - 190 - - 190
Issue of shares
- share incentive
- trust - 37 - - - (37) -
Currency translation
differences - - (1) - - - (1)
Valuation differences
on cash flow
hedges - 30 - - - 30
Dividends paid
in 2004 - - - (41) - - (41)
Disposal of incentive
shares - - - - - 8 8
Purchase of
treasury shares - - - - (1) - (1)
Balance 29 February
2004 (audited) - 89 372 1 134 (122) (93) 1 380
Net profit - - - 145 - - 145
Currency translation
differences - - (11) - - - (11)
Valuation differences
on cash flow
hedges - - (2) - - - (2)
Dividends paid - - - (80) - - (80)
Disposal of incentive
shares - - - - - 3 3
Purchase of treasury
shares - - - - (6) - (6)
Balance 31 August 2004
(reviewed) - 89 359 1 199 (128) (90) 1 429
Unaudited business segment results
Six months ended 31 August 2004 (reviewed)
Operating
Revenue profit Assets Liabilities
Rm Rm Rm Rm
AFGRI Services 1 559 85 1 522 977
Commercial Services 1 283 (39) 1 021 666
Financial Services 148 51 335 236
Logistics Services 128 73 166 75
AFGRI Products 1 277 43 1 394 556
Foods and Seed 48 (7) 183 103
Cotton 121 (21) 640 254
Animal Feeds and Protein 1 108 71 571 199
Other 3 6 422 376
Consolidated 2 839 134 3 338 1 909
Capital
expenditure Depreciation Amortisation
Rm Rm Rm
AFGRI Services 13 11 1
Commercial Services 9 5 -
Financial Services 1 - 1
Logistics Services 3 6 -
AFGRI Products 69 21 2
Foods and Seed 19 3 -
Cotton 21 4 2
Animal Feeds and Protein 29 14 -
Other - - -
Consolidated 82 32 3
Six months ended 31 August 2003 (reviewed)
Operating
Revenue profit Assets Liabilities
Rm Rm Rm Rm
AFGRI Services 1 260 83 1 285 687
Commercial Services 1 046 (18) 643 359
Financial Services 122 37 471 211
Logistics Services 92 64 171 117
AFGRI Products 1 233 41 1 048 471
Foods and Seed 32 (6) 76 39
Cotton 161 (8) 380 159
Animal Feeds and Protein 1 040 55 592 273
Other 4 4 355 335
Consolidated 2 497 128 2 688 1 493
Capital
expenditure Depreciation Amortisation
Rm Rm Rm
AFGRI Services 10 10 1
Commercial Services 6 5 -
Financial Services - - 1
Logistics Services 4 5 -
AFGRI Products 19 20 2
Foods and Seed 3 2 -
Cotton 5 3 2
Animal Feeds and Protein 11 15 -
Other 1 1 -
Consolidated 30 31 3
These business segment results are presented after taking into account the pre-
tax headline earnings adjustments. The reason for this is to make the segmental
profit more comparable after adjustments for the profit/(loss) of discontinued
operations and disposal of businesses and assets.
Revenue from discontinued operations is not included in the segmental revenue.
Operating profit is shown after the allocation of cost of capital based on each
division`s net assets.
To remain in touch with and to service the changing needs of its customers,
AFGRI restructured into two pillars - AFGRI Services and AFGRI Products. The
AFGRI Services pillar will house the Group`s Commercial, Finance and Logistics
businesses and the AFGRI Products pillar the Group`s value added processing
businesses. The Products pillar is divided into three business segments, namely
Foods and Seed, Cotton and Animal Feed and Protein.
The segmental analysis of the previous interim period has been restated to be
comparable to the current business model.
Segment assets include property, plant and equipment, intangible assets, other
investments, inventories, receivables and cash equivalents. Segment liabilities
include all operating liabilities, short-term borrowings, non-current
liabilities and minority interests. Tax liabilities are included in the segment
`Other`. Capital expenditure comprises additions to property, plant and
equipment.
Unaudited notes to the Group interim results
1 ACCOUNTING POLICIES
The consolidated interim financial statements are prepared in accordance with
and comply with South African Statements of Generally Accepted Accounting
Practice and with the requirements of the Companies Act. The consolidated
interim financial statements are prepared under the historical cost convention
as modified by the revaluation of available for sale securities, financial
assets and liabilities held for trading and all the derivative contracts. The
principal accounting policies, which were adopted in the preparation of these
consolidated interim financial statements, correspond with those applied in the
latest annual financial statements.
2 PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
Property, plant Intangible
and equipment assets
Rm Rm
Carrying value beginning of year 517 65
Additions 82 22
Disposals at book value (36) -
Foreign currency differences (5) -
Depreciation/amortisation (32) (3)
Net purchase of subsidiaries/joint ventures - 6
Carrying value end of interim period 526 90
3 SHARE CAPITAL
Share capital consists of ordinary shares with a nominal value of 0,001 cents
each.
31 August 31 August 31 August 31 August
2004 2003 2004 2003
Number Rm Rm
Beginning of year 333 100 796 327 760 551 - -
Treasury shares
purchased (1 053 553) (1 758 737) - -
Number of shares with
voting rights 332 047 243 326 001 814 - -
The treasury shares were purchased by a subsidiary in terms of a general
authorisation at an average price of R5,88 (2003: R4,47). As at 31 August 2004 a
total of 27 467 757 treasury shares had been purchased by a subsidiary and are
disclosed as a reduction of equity in the `Statement of Changes to Equity`.
4 Net profit is stated after taking into account the following:
31 August 31 August
2004 2003
Rm Rm
Net profit on disposal of property, plant
and equipment - 6
Net finance cost (3) (34)
Interest paid to independent third parties (44) (65)
Interest received from independent third parties 27 19
Dividend income 14 12
Foreign currency losses (7) (2)
Interest paid to Landbank legal right of offset (refer note 12)
(83) -
Auditors` remuneration 3 2
Depreciation on property, plant and equipment 31 27
Amortisation of goodwill 1 1
Amortisation of trademarks 2 2
Staff costs 264 218
5 DIRECTORS` REMUNERATION
Non-executive
- As directors 0,4 0,3
- As members of sub-committees 0,1 0,1
- Other services 1,5 0,1
2,0 0,5
Executive
- Basic salaries and allowances 1,7 3,3
- Bonus payments 4,2 2,6
- Company contributions 0,5 0,6
6,4 6,5
6 SHARE OPTIONS OF DIRECTORS
Executive directors are allocated share options on approval by the Board to link
them to the net worth of the company and to retain executive personnel. These
options are exercised in terms of a deferred share option scheme. The following
are the unimplemented contracts of executive and former executive directors.
Balance
31 August 2004
Number
JD Wright - Executive 5 500 000
I de W Goosen - Executive 3 321 200
GAL Ebedes - former executive 2 600 000
11 421 200
No share options have been allocated to directors and no contracts have been
implemented by directors during the six months ended 31 August 2004.
7 DISCONTINUED OPERATIONS
The loss from discontinued operations resulted from the disposal of the 100%
shareholding in ANB Vet (Pty) Ltd and the closure of the AFGRI Fresh Cut (Pty)
Ltd business. The loss in the previous year of R11 million resulted from the
closure of the Cotton businesses in Uganda and Swaziland.
8 RECONCILIATION OF HEADLINE EARNINGS PER SHARE
cents cents
Earnings 43,7 25,7
Loss from discontinued operations 5,0 3,4
Goodwill written off 0,5 0,5
(Profit)/Loss on disposal of businesses
and assets (19,0) 0,5
Headline earnings 30,2 30,1
9 DISPOSAL OF SHARES IN JOINT VENTURES
Rm Rm
Property, plant and equipment 128 -
Inventories 67 -
Receivables and prepayments 144 -
Trade and other payables (124) -
Deferred tax (35) -
Profit on disposal 55 -
Cash and cash equivalents (10) -
Total proceeds 225 -
Cash and cash equivalents disposed 10 -
Net cash inflow on disposal 235 -
10 ACQUISITION OF SHARES IN SUBSIDIARIES AND JOINT VENTURES
31 August 31 August
2004 2003
Rm Rm
Property, plant and equipment (128) -
Intangible assets (7) -
Investments (1) -
Inventories (100) -
Receivables and prepayments 48 -
Trade and other payables 103 -
Goodwill (1) -
Long-term debt 11 -
Deferred tax (2) -
Cash and cash equivalents 48 -
Total purchase consideration (29) -
Cash and cash equivalents (48) -
Net cash outflow on acquisition (77) -
11 AGENCY AGREEMENTS
11.1 Debtors administered on behalf of third parties
The Group manages agri debtors on behalf of the following third parties:
Landbank (Refer note 12) - 1 552
WesBank 398 353
Rand Merchant Bank 192 504
ABSA Bank - 50
2 459
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 Landbank arrangement has been changed to a legally enforceable right to set-
off. (Refer Note 12.)
11.2 Commodities administered on behalf of third parties
The following is the value of commodities handled, stored and managed on behalf
of third parties:
Rand Merchant Bank 407 312
ABSA Bank - 176
Other commodity users 2 078 742
Producers 439 308
2 924 1 538
The Group receives a fee for the handling, grading, storing and administration
of these commodities. AFGRI has a right of first refusal to purchase R407
million (2003: R488 million) of the commodities at market value.
12 RECEIVABLES
Included in receivables are the following receivables which have been financed
through the Landbank:
Liability - Landbank (1 967) -
Asset - Trade receivables 2 008 -
Net 41 -
The above asset and liability have been offset and the net amount disclosed in
the balance sheet as there is a legally enforceable right to set-off the
recognised amounts and the intention is to realise the asset and settle the
liability simultaneously. The Group`s liability for bad debts is limited to a
maximum of 10% of the gross trade receivables financed through the Landbank. The
net interest income from this structure is included in the operating profit of
AFGRI Financial Services.
13 CORPORATE GOVERNANCE AND JSE SECURITIES EXCHANGE SOUTH AFRICA (JSE)
COMPLIANCE
The principles of corporate governance were adhered to. The Group complied with
the JSE Listing Requirements regarding the contents of the interim financial
results.
14 GOING CONCERN
The Board is confident that, after taking into account the current bank
facilities, its utilisation thereof and the forecast results up to 28 February
2005, the working capital available to AFGRI will be sufficient to meet its
present requirements.
Date: 24/11/2004 09:00:24 AM
Produced by the JSE SENS Department
