Australian Agricultural Projects : Half-Year Report and Appendix 4D

For personal use only

Australian

Agricultural

Projects

Limited

ABN: 19 104 555 455

Head Office

Suite 14, 456 St Kilda Road

Melbourne VIC 3004

P: 0417 001 446

E:[e-mail]

HALF-YEAR FINANCIAL RESULTS

ANNOUNCEMENT

25 FEBRUARY 2022

In accordance with Listing Rule 4.2A.3, Australian Agricultural Projects Limited (Company) (ASX: AAP) is pleased to present its Interim Financial Report and ASX Appendix 4D for the six months ended 31 December 2021. This information should be read in conjunction with the Annual Report for the year ended 30 June 2021.

This announcement was authorised for release by the Board of Directors of the Company.

Enquiries may be directed to:

Paul Challis - Managing Director

E: [e-mail]

For personal use only

AUSTRALIAN AGRICULTURAL PROJECTS LIMITED

Appendix 4D

Half Year Report

for the period ended 31 December 2021

Results for announcement to the market

			Restated
			Previous
	Current	Percentage	Corresponding
	Period	Change	Period
	$'000	Up/(Down)	$'000
Revenue from ordinary activities	696	9.3%	637
(Loss) / Profit from ordinary activities after tax
attributable to members	(58)	n/a	401
Total comprehensive income for the period attributable
to members	213	(83.5%)	1,292

Dividends

It is not proposed to pay dividends for the current period.

		Previous
	Current	Corresponding
Net tangible assets per security	Period	Period
Cents per ordinary share	2.46 cents	2.21 cents

2

For personal use only

I n t e r i m F i n a n c i a l R e p o r t

f o r t h e h a l f - y e a r e n d e d 3 1 D e c e m b e r 2 0 2 1

only	C o n t e n t s
use	Directors' Report
	Auditor's Independence Declaration
	Half-Year Financial Report

personalFor	Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
	Consolidated Statement of Changes in Equity
	Notes to the Consolidated Financial Statements
	Directors' Declaration
	Independent Auditor's Review Report

2

P a g e

3

6

7

8

9

10

11

17

18

For personal use only

D I R E C T O R S ' R E P O R T

The Board of Directors present their report on the consolidated entity consisting of Australian Agricultural Projects Limited ("ASX:AAP") (Company) and its controlled entities (Group) for the six months ended 31 December 2021 and the independent auditor's review report thereon:

1. Directors

The Directors of the Company at any time during or since the end of the half-year and up to the date of this report are:

Name		Period of directorship
Mr Paul Challis	Director since 12	September 2007
Managing Director
Mr Daniel Stefanetti	Director since 26 September 2019
Non-Executive Director
Mr Anthony Ho	Director since 30	April 2003
Non-Executive Director

2. Results and review of operations

The Company presents its financial report for the six months period to 31 December 2021. The financial result for this period was a net loss after tax of $57,500 (2020 restated: profit $400,767). The principal drivers in the change to this result are:

• The estimated 2022 harvest being smaller than the prior year estimate largely as a consequence of this being an "off" year in the biennial cycle of the orchard. This has the impact of reducing the level of management fees that are expected to be received;
• Increased orchard costs as a consequence of several large maintenance projects being undertaken along with significant increases in chemical costs, especially urea. These increases are partially offset by lower water prices; and
• A reduced tax benefit recouped as a consequence of a smaller upward revaluation of the bearer plants.

Expected yield

Flowering at the orchard occurred in November 2021 over an extended period raising fears of low pollination. Despite this, the final fruit set appears reasonably consistent for an "off" year in the biennial cycle of the orchard. The principal factors that have impacted the assessment of the likely 2022 harvest are:

• Inconsistent fruit set between varieties - the frantoio variety has set above expectations whereas the picual variety is generally below expectations and patchy. The younger trees from the 2018 and 2019 replanting have all set well;
• it is an "off" year in the biennial cycle of orchard production; and
• the commercial harvests from the large second tranche of the replanting programme (completed March 2019) adding to the harvest volume.

In summary, the expectation is that the total oil produced in 2022 will be between that of the previous two years harvest results and in the region of 550,000 litres. A result of this volume would continue to see the two year rolling average production continue to increase, a trend management anticipates to continue as the newly planted sections of the orchard mature. As always, final volumes of oil produced is dependent upon many factors including climatic conditions between now and the harvest in May 2022.

3