Business / Companies
AICO Africa Limited –AGM Results and Trading Update
02 Sep 2011 at 05:19hrs | Views
The company's 3rd AGM was held yesterday, Wednesday, 31 August 2011 and all resolutions tabled were carried. In a trading update, management reported that the economic environment, has been kind to the group and the outlook to March 2012 is much better than for FY 2011.
SeedCo has noted increasing production and in the four month to June overall seed volumes were 42% up year on year and 13% above budget. The company has carryover stock for the first time in 10 years which should enable the company to benefit from the high commodity prices. The new factory in Lusaka Zambia is now operational and is expected to result in improved efficiencies.
Despite the lower than expected national cotton crop at 200,000tonnes, Cottco's business activity is also improving, as the company has managed to claw back some of its market share. Lint prices are still favourable, although off the beginning of year highs of $2.20-$2.30/ pound (late July around $1.00/pound).
Olivine is also expected to grow its turnover and profitability after a capital injection by the IDC and AICO and the reintroduction of duty. The division is expected to post a loss at half year but should be profitable at full year. The smaller business units, Exhort Enterprises and Scottco have not been disposed of but should be sold by year end.
SeedCo has noted increasing production and in the four month to June overall seed volumes were 42% up year on year and 13% above budget. The company has carryover stock for the first time in 10 years which should enable the company to benefit from the high commodity prices. The new factory in Lusaka Zambia is now operational and is expected to result in improved efficiencies.
Despite the lower than expected national cotton crop at 200,000tonnes, Cottco's business activity is also improving, as the company has managed to claw back some of its market share. Lint prices are still favourable, although off the beginning of year highs of $2.20-$2.30/ pound (late July around $1.00/pound).
Olivine is also expected to grow its turnover and profitability after a capital injection by the IDC and AICO and the reintroduction of duty. The division is expected to post a loss at half year but should be profitable at full year. The smaller business units, Exhort Enterprises and Scottco have not been disposed of but should be sold by year end.
Source - Imara Stockbrokers
