Anglo African Agriculture plc (“AAA”
or the “Company”)
Half yearly report for the six months ended 30 April 2017
The Chairman’s Report
Since becoming Chairman in September
2016 I am pleased to report on the progress of the business
over the six month period ended April
2017.
The past six months of solid growth have been punctuated by the
issue of an updated Company prospectus with the UKLA, the
significant plant upgrades at our 100% owned Dynamic Intertrade
(Pty) Ltd (“DI”) spices factory with the commissioning of new
milling and packing equipment specifically designed to improve
efficiency, reduce costs and dramatically increase production
capacity to meet the Company’s increasing order book, the proposed
sale of our share in APV – the guar processing business and the
acquisition of 46.8% of Dynamic Intertrade Agri (Pty) Ltd
(“DIA”).
Dynamic Intertrade
Dynamic Intertrade (Pty) Ltd (DI) has had a good start to the
year compared to the previous year. Sales started well but continue
to fluctuate as the Company strives to increase base stocks of all
important raw ingredients. That said sales are significantly better
than the prior year. DI managed to secure two tenders to major food
manufacturing companies in South
Africa which have increased volume and have now created a
stable production platform and base load for the business. Margins
were up on the Company’s internal expectations and expenses were in
line with expectations. Turnover improved to £1145k (compared to
£821k for the same period in 2016).
One tender to supply cayenne pepper into the fishing industry
equated to 300 tons of product per annum. As a result of improved
procurement we have been able to offer product at a slightly
improved margin. A further 40 tons per annum was secured with
another canned fish manufacturer.
DI was once again certified FSSC22000 following a quality audit
by SGS, a certification which is vital for the business when
dealing with blue chip food manufacturing companies.
From an operational perspective a highlight has been the
commissioning of the new high capacity Pin Mill, which almost
tripled the milling capacity of the operations, saved considerably
on electricity costs as well as savings on valuable time when
cleaning between spice batches compared to the old milling
system.
The company began importing a container of mixed product, which
has increased our offering to customers and sales are slowly
gaining momentum in this higher margin area. Extra material has
been imported for our generic lines such as Paprika and Cayenne
Pepper in order to regain lost customers and ensure continuity of
supply.
Batch Packs into the meat industry have grown from a zero base
to around 10 to 15 tons per month and are gaining momentum, and the
management is striving to double this volume over the next 3 to 4
months. Once again these products command a higher gross margin
than standard herbs and spices.
We have brought our Research and Development function in house,
where it was previously outsourced and this has already led to
operational improvements and the generation of new ranges of
products available to our customers.
Dynamic Intertrade Agri (DIA)
(46.8% owned by AAA)
Whilst the South African economy undergoes significant
challenges, DIA has continued to secure orders within the
agricultural commodity trading environment not only within
South Africa but also in the
surrounding countries, and I look forward to sustained progress
from this operation. Tonnages traded for the period totalled 1162
tonnes (comprising including sugar beans, popcorn, soya oil cake
meal, cottonseed oil cake meal, meat and bone meal (carcass meal),
blood meal, sun flower seed, soya beans, assorted fertilizers,
maize, chillies, paprika, whole pepper, and other spices) with a
revenue of £512.9k.
Sale of APV
The sale of the share in APV African Projects and Ventures (Pty)
Ltd was announced on 22 November 2016
and we further announced the receipt of the first payment as
envisioned on 8 December 2016.
Further payments as per the agreement were received. However there
has been a delay in PMR’s funding and as a result the final payment
has not been received as yet. We are actively engaging PMR and AAAP
will support them in their endeavours in order to close this
transaction.
Results for the period
The loss for the six month period 30
April 2017 was £285,7k which includes an exchange gain of
£4.4k (6 month period to 30 April
2016 – loss of £130.4k, year ended 31
October 2016 loss of £433.0k). Whilst turnover has increased
by 39% and the gross margin maintained, the current half-year loss
is significantly attributable due to significant legal and
admission expenses of £68.1k incurred on producing and publishing
the Prospectus required in terms of the UK listing authority.
Funding
Subsequent to the period under review the company raised an
additional £120,250 to assist with working capital
requirements.
Board and management changes
During the period under review Mr. Matthew Bonner joined the board. Matt is a
native of South Africa but has
worked in London and now resides
in New York.
Outlook
This business is starting to see some traction, as we come out
of the dismal position the company had found itself in over the
past few years and now the outlook for AAAP looks strong and
exciting. We are pushing the underlying business to increase sales
and improve efficiency. New bank funding arrangements are now
being reviewed to enable the Company to increase raw ingredient
stocks so that we can meet the increasing demand from our core
customers. Importantly, the board is reviewing a number of new and
exciting potential acquisitions to bolt on to our existing agri
platform.
David Lenigas
Non-Executive Chairman
28 July
2017
FOR FURTHER INFORMATION PLEASE
CONTACT:
Anglo African Agriculture plc
Tel +44 (0) 20 7440 0640
David Lenigas, Non-Executive Chairman
Rob Scott, Non-Executive
Director
VSA Capital Limited (Financial Adviser and Broker)
Tel +44 (0) 20 3005 5000
Andrew Raca
Forward looking
statement
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi?ed by their use of terms and phrases such as ‘‘believe’’,
‘‘could’’, “should” ‘‘envisage’’, ‘‘estimate’’, ‘‘intend’’,
‘‘may’’, ‘‘plan’’, ‘‘will’’ or the negative of those, variations or
comparable expressions, including references to assumptions. These
forward looking statements are not based on historical facts but
rather on the Directors’ current expectations and assumptions
regarding the Company’s future growth, results of operations,
performance, future capital and other expenditures (including the
amount, nature and sources of funding thereof), competitive
advantages, business prospects and opportunities. Such forward
looking statements re?ect the Directors’ current beliefs and
assumptions and are based on information currently available to the
Directors. A number of factors could cause actual results to differ
materially from the results discussed in the forward looking
statements including risks associated with vulnerability to general
economic and business conditions, competition, environmental and
other regulatory changes, actions by governmental authorities, the
availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which
are beyond the control of the Company. Although any forward looking
statements contained in this announcement are based upon what the
Directors believe to be reasonable assumptions, the Company cannot
assure investors that actual results will be consistent with such
forward looking statements.
For further information please visit http://www.aaaplc.com or
contact the following:
Rob
Scott |
robscott@african-mining.com |
Tel: +27
(0) 84 600 6001 |
Interim Condensed
Consolidated Statement of Comprehensive Income
|
Notes |
|
6 months
Ended
30 April
2017 |
Year
Ended
31 October
2016 |
6 months
Ended
30 April
2016 |
|
|
£ |
£ |
£ |
Turnover |
|
1,144,889 |
1,605,219 |
821,425 |
Cost of
Sales |
|
(854,613) |
(1,282,140) |
(613,229) |
Gross
Profit |
|
290,276 |
323,079 |
208,196 |
Other
Income / Expenditure |
|
2,148 |
2,767 |
(12,587) |
Administrative expenses |
|
(529,109) |
(665,218) |
(287,787) |
Operating loss |
|
(236,685) |
(339,372) |
(92,178) |
Loss from
equity accounted investment |
|
(5,133) |
- |
- |
Bank
Interest Receivable |
|
- |
4,109 |
4,210 |
Finance
Costs |
|
(43,841) |
(97,771) |
(42,470) |
Loss
before taxation |
|
(285,659) |
(433,034) |
(130,438) |
Tax on
loss on ordinary activities |
|
- |
- |
- |
Loss
after taxation |
|
(285,659) |
(433,034) |
(130,438) |
|
|
|
|
|
Loss
and total comprehensive loss for the period |
|
(285,659) |
(433,034) |
(130,438) |
|
|
|
|
|
Basic and
diluted earnings per share |
5 |
(0.16p) |
(0.38p) |
(0.13p) |
Interim Condensed
Consolidated Statement of Changes in Equity
|
Share Capital |
Share Premium |
Retained
Earnings |
Share
Based Payments Reserve |
Total
Equity |
|
£ |
£ |
£ |
£ |
£ |
Balance at 1 November 2015 |
94,896 |
1,107,373 |
(864,254) |
11,586 |
349,601 |
Share
Issue* |
15,000 |
60,000 |
- |
- |
75,000 |
Loss for
the period |
- |
- |
(130,438) |
- |
(130,438) |
Balance at 30 April 2016 |
109,896 |
1,167,373 |
(994,692) |
11,586 |
294,163 |
Issue of
shares* |
70,896 |
404,105 |
|
- |
475,001 |
Share based payment |
|
(3,714) |
(3,714) |
Loss for
the period |
|
|
(302,596) |
|
(302,596) |
Balance at 31 October 2016 |
180,792 |
1,571,478 |
(1,297,288) |
7,872 |
462,854 |
Issue of
shares* |
7,692 |
92,308 |
- |
- |
100,000 |
Loss for
the period |
- |
- |
(285,659) |
- |
(285,659) |
Balance at 30 April 2017 |
188,484 |
1,663,786 |
(1,582,947) |
7,872 |
277,195 |
|
|
|
|
|
|
|
* During the year the company placed these shares and as the
number of placing shares comprised more than 10% of the companies
issued share capital, and although the placing shares has been
allotted, admission of the placing shares required publication of a
Prospectus within a twelve month period. On 22 March 2017, the company announced that the
Prospectus had been approved by the UK Listing Authority. The
April 2016, September 2016 and March
2017 shares were admitted to the Standard Listing segment of
the Official List of the UK Listing Authority and to trading on the
London Stock Exchange Main Market. In total these shares amounted
to 93,587,829 Ordinary Shares.
Share capital is the amount subscribed for shares at nominal
value.
Retained losses represent the cumulative loss of the Group
attributable to equity shareholders.
Share-based payments reserve relate to the charge for
share-based payments in accordance with IFRS 2.
Interim Condensed
Consolidated Statement of the Financial Position
|
Notes |
30
April
2017 |
31
October 2016 |
30
April
2016 |
|
|
£ |
£ |
£ |
Assets |
|
|
|
|
Non-Current Assets |
|
|
|
|
Goodwill
on Consolidation |
|
226,644 |
226,644 |
226,644 |
Investment |
|
- |
- |
7,671 |
Property,
Plant and Equipment |
6 |
150,304 |
159,595 |
135,686 |
Investment in Jointly Controlled Entities |
8 |
94,867 |
- |
- |
Other
Financial Assets |
|
- |
- |
1,704 |
Total Non-Current Assets |
|
471,815 |
386,239 |
371,705 |
|
|
|
|
|
Current assets |
|
|
|
|
Inventories |
|
211,916 |
166,393 |
188,965 |
Loan to
Jointly Controlled Entities |
|
81,006 |
84,473 |
66,165 |
Trade and
Other Receivables |
|
431,385 |
440,455 |
240,866 |
Cash and
Cash Equivalents |
|
25,823 |
268,790 |
73,683 |
Total Current Assets |
|
750,130 |
960,111 |
569,679 |
Total
Assets |
|
1,221,945 |
1,346,350 |
941,384 |
|
|
|
|
|
Equity
and Liabilities |
|
|
|
|
Share
Capital |
9 |
188,484 |
180,792 |
109,896 |
Share
Premium Account |
9 |
1,663,786 |
1,571,477 |
1,167,373 |
Share-Based Payments Reserve |
|
7,872 |
7,872 |
11,586 |
Retained
Earnings |
|
(1,582,947) |
(1,297,288) |
(994,692) |
Total
Equity |
|
277,195 |
462,853 |
294,163 |
|
|
|
|
|
Current Liabilities |
|
|
|
|
Trade and
Other Payables |
|
944,750 |
883,497 |
647,221 |
Total
Liabilities |
|
944,750 |
883,497 |
647,221 |
Total
Equity and Liabilities |
|
1,221,945 |
1,346,350 |
941,384 |
Interim Condensed
Consolidated Cash Flow Statement
|
Notes |
6 Months Ended
30 April 2017 |
Year Ended 31 October 2016 |
6 Months Ended
30 April 2016 |
|
|
|
£ |
£ |
£ |
|
Cash
flows from operating activities |
|
|
|
|
|
Operating
loss |
|
(236,685) |
(339,372) |
(92,178) |
|
Add:
Depreciation |
|
26,601 |
49,116 |
18,631 |
|
Add:
Foreign exchange movements |
|
5,402 |
(28,545) |
- |
|
Add:
Share Based Payments Reserve |
|
- |
(3,714) |
- |
|
Add: Loss
from equity accounted investment |
|
5,133 |
- |
- |
|
Changes
in working capital |
|
|
|
|
|
(Increase) / decrease in inventories |
|
(45,522) |
165,113 |
142,541 |
|
(Increase) / decrease in receivables |
|
9,070 |
(217,378) |
(17,789) |
|
Increase
/ (decrease) in payables |
|
61,253 |
162,448 |
(73,828) |
|
Interest
received |
|
- |
4,109 |
4,210 |
|
Finance
Costs |
|
(43,841) |
(97, 771) |
(42,470) |
|
Net
cash flow from operating activities |
|
(218,589) |
(305,994) |
(60,883) |
|
|
|
|
|
|
Investing Activities |
|
|
|
|
Decrease in Investments |
|
- |
18,514 |
10,843 |
|
Acquisition of fixed assets |
|
(24,377) |
(55,729) |
(29,880) |
|
Disposal of fixed assets |
|
- |
- |
- |
|
Decrease / (Increase) in financial assets |
|
- |
- |
(1,704) |
|
Decrease / (Increase) in Loans |
|
- |
(1,894) |
16,414 |
|
Net cash flow from investing activities |
|
(24,377) |
(39,109) |
(4,327) |
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
Net proceeds from issue of shares |
9 |
- |
550,000 |
75,000 |
|
Net cash flow from financing activities |
|
- |
550,000 |
75,000 |
|
|
|
|
|
|
|
Net cash flow for the period |
|
(242,967) |
204,897 |
9,790 |
|
Opening Cash and cash equivalents |
|
268,790 |
63,893 |
63,893 |
|
Closing Cash and cash equivalents |
|
25,823 |
268,790 |
73,683 |
|
|
|
|
|
|
|
|
|
|
|
|
Notes to the Interim Condensed
Consolidated Financial Statements
1. General
Information
Anglo African Agriculture plc is a company incorporated in the
United Kingdom. Details of the
registered office, the officers and advisers to the Company are
presented on the Directors and Advisers page at the end of this
report. The Company has a standard listing on the London Stock
Exchange main market. The information within these Interim
condensed consolidated financial statements and accompanying notes
must be read in conjunction with the Audited annual financial
statements that have been prepared for the year ended 31 October
2016.
2. Basis of
Preparation
These unaudited condensed consolidated interim financial
statements for the six months ended 30 April
2017 were approved by the board and authorised for issue on
28 July 2017.
The basis of preparation and accounting policies set out in the
Annual Report and Accounts for the year ended 31 October 2016 have been applied in the
preparation of these condensed consolidated interim financial
statements. These interim financial statements have been
prepared in accordance with the recognition and measurement
principles of the International Financial Reporting Standards
(“IFRS”) as endorsed by the EU that are expected to be applicable
to the consolidated financial statements for the year ending
31 October 2017 and on the basis of
the accounting policies expected to be used in those financial
statements.
The figures for the six months ended 30
April 2017 and 30 April 2016
are unaudited and do not constitute full accounts. The comparative
figures for the year ended 31 October
2016 are extracts from the 2016 audited accounts. The
independent auditor’s report on the 2016 accounts was not qualified
but included an emphasis of matter in respect of going concern and
carrying value of property, plant and equipment.
3. Segmental
Reporting
In the opinion of the Directors, the Group has one class of
business, being the trading of agricultural materials. The Group’s
primary reporting format is determined by the geographical segment
according to the location of its establishments. There is currently
only one geographic reporting segment, which is South Africa. Apart from the equity accounted
investment in Dynamic Intertrade Agri (Pty) Ltd which is also South
African based, all revenues and costs are derived from the single
segment.
4. Company Result
for the period
The Company has elected to take the exemption under section 408
of the Companies Act 2006 not to present the parent Company income
statement account.
The operating loss of the parent Company for the six months
ended 30 April 2017 was £167,481
(2016:
loss of £29,942, year ended 31 October
2016: £99,656). The current period operating loss
incorporated the following main items:
|
30
April
2017 |
31
October
2016 |
30 April
2016 |
(Unaudited) |
(Audited) |
(Unaudited) |
|
£ |
£ |
£ |
|
|
|
|
Accounting and
administration fees |
27,750 |
111,906 |
5,413 |
Admission
expenses |
50,000 |
- |
- |
Brokership fees |
13,992 |
- |
- |
Legal and professional
fees |
18,136 |
- |
30,818 |
Registrar fees |
16,710 |
- |
- |
Personnel
expenses |
34,962 |
18,994 |
- |
|
|
|
|
5. Earnings per
Share
Earnings per share data is based on the Group result for the six
months and the weighted average number of shares in issue.
Basic loss per share is calculated by dividing the loss
attributable to equity shareholders by the weighted average number
of ordinary shares in issue during the period:
|
30 April 2017 |
31 October
2016 |
30 April 2016 |
|
£ |
£ |
£ |
Loss after tax |
(285,659) |
(433,034) |
(130,438) |
Weighted average number of ordinary
shares in issue |
182,578,756 |
114,461,821 |
96,791,930 |
Basic and diluted loss per share
(pence) |
(0.16p) |
(0.38p) |
(0.13p) |
Basic and diluted earnings per share are the same, since where a
loss is incurred the effect of outstanding share options and
warrants is considered anti-dilutive and is ignored for the purpose
of the loss per share calculation. As at 30
April 2017 there were 12,638,660 (31
October 2016 and 30 April 2016
- 12,638,660) outstanding share warrants and 17,356,184
(31 October 2016 and 30 April 2016 - 5,517,138) outstanding options,
both are potentially dilutive.
6. Property, Plant
and Equipment
Depreciation on property, plant and
equipment is calculated using the straight-line method to write off
their cost over their estimated useful lives at the following
annual rates:
Furniture, fixtures and
equipment |
17% |
Leasehold improvements |
20% |
Plant and machinery |
20% |
Computer equipment |
33% |
Useful lives and depreciation method are reviewed and adjusted
if appropriate, at the end of each reporting period.
An item of property, plant and equipment is derecognised upon
disposal or when no future economic benefits are expected to arise
from the continued use of the asset. Any gain or loss arising on
the disposal or retirement of an item of property, plant and
equipment is determined as the difference between the sales
proceeds and the carrying amount of the relevant asset, and is
recognised in profit or loss in the year in which the asset is
derecognised.
Group |
Leasehold
Property |
Furniture and
fixtures |
Plant and
machinery |
Total |
|
£ |
£ |
£ |
£ |
Cost |
|
|
|
|
As at 01 November 2015 |
14,439 |
2,932 |
308,730 |
326,101 |
Exchange difference |
- |
- |
49 |
49 |
Additions |
1,103 |
397 |
25,752 |
27,252 |
Disposals |
- |
- |
(239) |
(239) |
As at 30 April 2016 |
15,452 |
3,329 |
334,292 |
353,163 |
Exchange difference |
3,980 |
808 |
85,096 |
89,884 |
Additions |
5,485 |
435 |
22,747 |
28,667 |
Disposals |
- |
(67) |
(5,686) |
(5,753) |
As at 31 October 2016 |
25,007 |
4,505 |
436,449 |
465,961 |
Exchange difference |
(1,282) |
(253) |
(22,690) |
(24,225) |
Additions |
1,016 |
437 |
22,924 |
24,377 |
At 30 April 2017 |
24,741 |
4,689 |
436,683 |
466,113 |
|
|
|
|
|
Depreciation |
|
|
|
|
As at 01 November 2015 |
3,504 |
1,672 |
196,488 |
201,664 |
Exchange difference |
(61) |
(29) |
(2,536) |
(2,626) |
Released on disposal |
- |
- |
(192) |
(192) |
Charge for the year |
2,584 |
162 |
15,885 |
18,631 |
As at 30 April 2016 |
6,027 |
1,805 |
209,645 |
217,477 |
Exchange difference |
1,027 |
557 |
62,381 |
63,965 |
Released on disposal |
- |
(67) |
(5,686) |
(5,753) |
Charge for the year |
4,278 |
257 |
26,142 |
30,677 |
As at 31 October 2016 |
11,332 |
2,552 |
292,482 |
306,366 |
Exchange difference |
(1,363) |
(145) |
(15,651) |
(17,159) |
Released on disposal |
3,919 |
229 |
22,454 |
26,602 |
At 30 April 2017 |
13,888 |
2,636 |
299,285 |
315,809 |
|
|
|
|
|
Net Book Value |
|
|
|
|
As at 31 October 2015 |
10,935 |
1,260 |
112,242 |
124,437 |
As at 30 April 2016 |
9,515 |
1,524 |
124,647 |
135,686 |
As at 31 October 2016 |
13,675 |
1,953 |
143,967 |
159,595 |
At 30 April 2017 |
10,853 |
2,053 |
137,398 |
150,304 |
The holding company held no tangible property, plant and
equipment at 30 April 2017,
31 October 2016 and 30 April 2016.
7. Subsidiaries
AAA holds investments in the following subsidiary undertakings
as at 30 April 2017, which
principally affected the losses and net assets of the group.
Dynamic Intertrade (Pty)
Limited |
Trading in Agricultural
Products |
South Africa |
100% |
100% |
Dynamic Intertrade Agri (Pty)
Limited |
Agricultural commodity trading and
distribution |
South Africa |
46.8% |
- |
Subsidiaries are all entities over which the group has the power
to govern the financial and operating policies generally
accompanying a shareholding of more than one half of the voting
rights. Subsidiaries are consolidated, using the acquisition
method, from the date that control is gained and are stated at cost
less, where appropriate, provisions for impairment. Entities that
do not comply with this policy, but over which the group has a
shareholding of between 20 and 50 percent of the voting rights are
equity accounted from the date of acquisition and are stated at
cost, and adjusted for the results of these entities for the
accounting period.
On 22 November 2016, the group
agreed to sell its 49.9% interest in Africa Projects and Ventures,
a joint venture with Lamberti based in South Africa.
On 3 November 2016 the group
acquired 46.8% in the fast growing South African based, Dynamic
Intertrade Agri (Pty) Ltd (“DIA”), which investment has been equity
accounted since acquisition.
There were no material events following the 30 April 2017 half year.
8. Investment in
jointly controlled entities
|
30
April
2017 |
31
October
2016 |
30 April 2016 |
(Unaudited) |
(Audited) |
(Unaudited) |
|
£ |
£ |
£ |
|
Investment in Dynamic
Intertrade Agri (Pty) Ltd |
100,000 |
- |
- |
|
Equity accounted loss
for the period |
(5,133) |
- |
- |
|
Carrying value |
94,867 |
- |
- |
|
The acquisition will be for an initial
non cash consideration of £100,000 in AAAP shares at a price of
1.3p per AAAP share. These shares were allotted but were only
issued once the Company had published a prospectus approved by the
UKLA. In addition there was also to be a deferred performance
related payment in shares in AAAP provided DIA achieved certain
profitability targets for the twelve month period ending
February 2017. As DIA did not achieve
these profitability targets for the twelve month period ending
February 2017 the deferred
performance related payment has been waived.
For further details, see note 7.
9. Share
Capital
Ordinary shares are classified as equity. Proceeds from issuance
of ordinary shares are classified as equity. Incremental costs
directly attributable to the issuance of new ordinary shares are
deducted against share capital.
Allotted, called up and fully
paid ordinary shares of 0.1p each |
Number of shares |
Share
Capital |
Share Premium |
|
|
£ |
£ |
Balance at 1 November
2015 |
94,896,125 |
94,896 |
1,107,373 |
Share issue – 11 April 2016 |
15,000,000 |
15,000 |
60,000 |
Balance at 30 April 2016 |
109,896,125 |
109,896 |
1,167,373 |
Share issue – 3 September 2016 |
70,895,521 |
70,896 |
404,105 |
Balance at 31 October 2016 |
180,791,646 |
180,792 |
1,571,478 |
Share issue – 17 March 2017 |
7,692,308 |
7,692 |
92,308 |
Balance at 30 April 2017 |
188,483,954 |
188,484 |
1,663,786 |
|
|
|
|
|
10 Events Subsequent to
30 April 2017
10.1 Subscriptions
On the 26 April 2017 the company
announced that it raised approximately £120,250 by way of
subscription of 18,500,000 new ordinary shares of 0.1p each at a
price of 0.65p per Subscription Share. The subscription proceeds
where only received in May and this subscription has not been
reflected in the period under review.
Following the issue of the Subscription
Shares, the Company had 206,983,954 shares in issue.
10.2 Appointment
On 02 May
2017 the company announced the appointment of Mr
Matthew Bonner to the role of
Non-Executive Director.
10.3 Related Party Loan
In order to fund growing customer orders, Mr. Bonner, a Director
of the Company, will provide a loan to its 100% owned subsidiary
Dynamic Intertrade (Pty) Ltd of ZAR500,000 at an interest rate of 1% above the
South African prime interest rate.