Interfresh is in the business of producing, processing and marketing agricultural, horticultural, agro-industrial and allied food products in both the local and export markets.
The company has three strategic divisions namely, Citrus, Flowers and Trading, each with a specific and autonomous area of focus.
“Shareholders are advised that the ministry of lands and Rural resettlement has advised the company that a portion of land measuring 1599,7 hectares which was part of Mazoe Citrus Estates (MCE) has been allocated to another party,” said Interfresh company secretary Tawanda Namusi in a cautionary statement.
MCE currently has citrus lemons, seed soya bean, commercial and seed maize an horticultural produce on this land.
“This portion of land represents 46 percent of MCE’s total arable land 30 percent of its budgeted revenue for the financial year 2013 and 52 percent of the value of immovable and biological assets,” reads the statement.
The part of land lost measures 1599,7 hectares.
“An appeal has been lodged with the ministry of Lands and Rural resettlement for their considerations. The board will be consulting shareholders regarding the way forward,” the statement said.
This happened as the group is reportedly close to a deal that could bring in new investors into the business. Interfresh recently issued a cautionary statement in December announcing that there was an impending transaction which could affect its share price.
The identity of Interfresh's new partners could not be immediately established but analysts expected that the group could be in talks with foreigners. Interfresh, which narrowed its pre-tax profit to US$818 000 during the half-year ended June 30, 2012, from US$1,1 million during the same time in 2011, reported a considerable strain on working capital during the period.
Recent cautionary statements did not disclose if the negative working capital position had driven the firm to hunt for fresh funding.
However, it is possible that chief executive officer (CEO), Lishon Chipango, could be positioning the group to take advantage of expected economic growth by roping in cash-rich investors to fortify his balance sheet.
During the half year to June 30, 2012, current assets at US$5,5 million were about US$400 000 lower that the group's current liabilities, which closed the period at US$5,9 million.
Chipango has already registered positive results from a decision to dispose of loss-making units, the group's head office and its warehouse complex in Harare.
Interfresh's revenue from continuing operations climbed by 27 percent to US$3,2 million, from US$2,5 million during the prior comparative period in 2011.
Post published in: Agriculture