Update regarding publication of annual accounts

RNS Number : 1355U

Agriterra Ltd

21 November 2019

 

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

21 November 2019

Agriterra Ltd ('Agriterra' or the 'Company')

Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture

Update regarding publication of annual accounts

Agriterra Limited, the AIM-listed African agricultural company provides an update to shareholders regarding the delays in publication of the Company's audited annual report and accounts for the year ended 31 March 2019 (the "Accounts").

As shareholders will be aware, in accordance with Rule 19 of the AIM Rules for Companies, the Accounts were due to be published no later than 30 September 2019 (the "Due Date"). However, due to an ongoing investigation into two incidents of theft at an operational level (amounting approx. US$15,500 in total) the Accounts were not finalised and signed-off by the Company's auditors by the Due Date; the Accounts remain unfinalised at the date of this update. As noted previously, the staff involved in these thefts have been dismissed; local management are confident that these were isolated incidents and that there is not a systemic issue.

Since the Due Date, the Company's internal audit team (the "IAT") has prepared and released to the Company's audit committee (the "Audit Committee") its "Internal Audit Report 1 - 2019"; preliminary findings based from this report confirm that:

·     discovered fraud during the 2019 financial year was less than US$15,000 (relating to weighbridge transactions); and

·     a further US $1,000 (approx.) of petty cash from maize cash purchases directly from smallholders remains unaccounted for.

The Company confirms that management is taking steps to improve the weighbridge system and have started implementing some of the recommendations made by the independent internal auditors. 

The IAT is in the final stages of finalising its "Internal Audit Report 2 - 2019" (anticipated to be the final report in relation to these matters); the final report is scheduled to be presented to the Audit Committee before end November 2019.

The Company's auditors, BDO LLP ("BDO"), have received the "Internal Audit Report 1 - 2019" together with management fraud reports for 2019. Once finalised, both internal reports prepared by the IAT will be provided to BDO. As soon as BDO have reviewed the outcome of the investigations of the IAT, and any further work they require has been completed, it is anticipated that the Accounts will be concluded and released The Company will provide further updates as necessary on the timing of the release of the Accounts.

Due to the delay in publishing of the Company's Accounts, dealings in the Company's ordinary shares have been and will remain temporarily suspended from trading on AIM, until such time as the Accounts have been duly published in compliance with the AIM Rules for Companies.

** ENDS **

For further information please visit www.agriterra-ltd.com or contact:

Agriterra Ltd	Strand Hanson Limited (Nominated & Financial Adviser and Broker)
Caroline Havers	James Spinney / Ritchie Balmer/ Eric Allan
[e-mail]	[phone]

 

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