Pan African food producer Agriterra's (LON:AGTA) recent expansion of its cocoa farming efforts is a good example of the firm's current focus on investment, now in full swing.

The firm is looking to build the foundation on which it grows and is pumping resources and funds into its core operations.

From initially building what was primarily a cocoa trading business, it now has bought its own 1,200 hectare plantation in Sierra Leone and last month, unveiled a large scale acceleration of efforts.

Clearing the site is ongoing and Agriterra expects to have planted the whole 1,200 hectare by the fourth quarter of next year.

Meanwhile, subsidiary Tropical Foods is in "advanced" negotiations to try and get its hands on a further 1,600 hectares north east of the current site to allow planting in 2016 and an additional 1,550 hectares to the south-east, which will be earmarked for coffee.

To support the plantation's development, a new cocoa nursery is also being planned.

Agriterra's chief executive Andrew Groves tells Proactive the aim is to secure 6,000 hectares in the next three years and is in no doubt that the scheme bolsters the group's long term position.

"We are now the largest agri business in Mozambique - with the milling and the beef. We wanted to expand into something, which over time has good long term cash flow, which is cocoa," he says.

"We can forward sell it. There's a massive off-take market and if you have your own plantation, it's like an annuity from a cash flow point of view."

The plantation gives the firm secure cash flow in the next three-four years, he adds.

And the timing couldn't be better. The company pointed out in its last statement that the International Cocoa Organisation forecasts demand for cocoa will exceed production by 45,000 tonnes in the season to September 2013. 

Agriterra's expansion strategy into its core revenue generating businesses of cocoa, beef and maize was also given a shot in the arm earlier this year - with a US$28 million payout.

It came from Marathon Oil Corporation after the sale of Agriterra's 20% legacy interest in the South Omo oil block in Ethiopia and leaves the firm in the enviable position of having no debt and a growing asset base - its net asset value now stands at US$64.5 mln.

Meanwhile, its Mozbife operation in Mozambique is making great strides and is now eyeing a national chain of butchers shops servicing its expanding cattle herd - which aims to have a head count of 10,000 by 2015.

The firm has now a finished abattoir in Chimoio and to boost its margins, has opened two shops - one in Chimoio and one in Tete selling beef produce.

Another four retail units are scheduled to open this year, Groves tells Proactive, while the firm is hoping to roll out 20 butchers shops across the country, which should really boost the group's top line.

The third revenue stream - the group's maize and milling operation - is also doing well.

It saw improved revenues in 2012 after reduced sales in 2011 after a strong harvest reduced demand.

For the six months to November 30 last year, the group saw revenue from continuing operations shoot up to US$11.49mln from US$5.29mln the year before, with revenue for the year to May 31, 2012 coming in at around US$13 million.

And Groves is confident that 2013 results will tell the same story.

"I think we are extremely  undervalued. We've got no debt. We've got a huge asset base and business is growing," he added.

The chief executive also pointed out that as Africa itself grows on the world stage, economically and socially,Agriterra could not be in a better place to capitalise.

"If you look at the rest of the world, there's a declining economy whereas if you look at the African states, it's different. Mozambique's pushing 11/12% growth, Sierra Leone's got huge growth, most of them have (the states)- and it's not leveraged growth - it's cash growth, which makes a big difference.

"I think it's the place to be. You've got a fast-growing consumer market and it keeps increasing," he says, also highlighting the oil and gas discovered in Mozambique along with coal.

"In the last ten years, Africa has changed completely and I think Agriterra's a good foundation to capitalise on that."

To that end, Groves says the company is always on the lookout for further acquisitions, though nothing has as yet come "across the radar".

"We'd look at further acquisitions but they've got to be earnings accretive. We're not going to go into too much greenfield stuff where we've got to plough $10/$20 mln into greenfield business but if we can buy an earnings-accretive business and finance it with cheap debt we'd probably look at doing that."

So there is much to look forward to as Agriterra continues to grow and furthers its reach into Africa's food production business.

The firm expects to have fully planted the 1,200 hectare site, acquired in February this year, by the end of the fourth quarter of 2014 and has bought further land on top, it told investors.

So far, the group's subsidiary Tropical Farms (TFL) has cleared 200 hectares of the site 40 kilometres from Kenema, the country’s third-largest city, ahead of planting in the second quarter of  2013.

TFL expects the remaining land to be cleared by the end of the fourth quarter this year and plant the whole site by the end of the fourth quarter next year.

In addition, TFL has recently acquired a further 400 hectares contiguous to the north-east of the plantation, which the group plans to begin clearing in 2014 to plant cocoa seedlings in 2015.

Furthermore, TFL is in advanced negotiations to acquire an additional 1,600 hectares north east of the current site. TFL intends to clear this new land in 2015 to allow cocoa planting in 2016.

Agriterra is also in discussions to acquire a further 1,550 hectares to the south-east of the plantation potentially earmarked for coffee growing.

To support the plantation's development, a new cocoa nursery is also being planned, the firm said.

Construction is be completed by the first quarter of 2014, enabling the cultivation of up to one million seedlings for planting across 1,000 hectares in 2014.

TFL is also focused on improving local infrastructure, including improving the roads that connect the plantation to Kenema and beginning preparation for a 2,000 square metre warehouse.

The firm's chief executive Andrew Groves said: "The expansion of the plantation underpins TFL's efforts to become a leading agricultural producer, in addition to its established cocoa trading business.

"The forward pricing environment for cocoa is positive, with the International Cocoa Organisation forecasting that demand is expected to exceed production by 45,000 tonnes in the season to September 2013."

The group is forecasting an EBITDA in the region of £10.5 million for the 12 months to 31 March 2013, up almost a quarter on the previous year’s figure of £8.5 million.

The group said that the final quarter of the fiscal year was a much better one than the troublesome third quarter, with a large positive swing in earnings, due to a stronger sugar trading quarter, combined with the turnarounds achieved at Haydens and R&W Scott, not to mention improved trading in Renshaw.

Fourth quarter EBITDA is expected to come in at £3.9mln, which is a massive improvement on the £0.1mln seen in the final quarter of the previous financial year.

As earnings took a turn for the better in the fourth quarter, so did the top line, with turnover expected to improve to £65mln from £56mln a year earlier.

At the end of March the net debt position is set to be in the region of £27mln, which represents a significant improvement on debt of £32.1mln at the end of September 2012.

"As I commented in January, the changes we have made in the group have produced positive results and these are now beginning to show through, as demonstrated by our Q4 results. In line with the rest of the food sector, I believe that 2013 will be a challenging year, but I am confident that we are in a strong position to achieve our goals for this year and remain on course to achieve my longer term vision for the group," said Pieter Totté, executive chairman of Real Good Food.

Shares in Real Good Food rose like a well-cooked soufflé on the results, adding 15% to 42p in early trading.

The pan-African operator is investing heavily in its revenue generating divisions and infrastructure to ensure scalability, and figures for the six months to the end of November indicate this investment is already starting to bear fruit.

Revenue from continuing operations shot up to US$11.49mln from US$5.29mln the year before.

Loss before tax widened to US$4.19mln from US$3.48mln the year before, as operating expenses increased to US$5.71mln from US$3.58mln the year before, reflecting the fact that Agriterra is currently focused on expansion.

The group booked a US$29.36bn profit on discontinued operations, namely its legacy oil and gas assets.

Buoyed by this contribution, earnings per share were positive at 2.4 cents, compared to a loss per share of 0.4 cents the year before. The loss per share from continuing operations narrowed to 0.4 cents from 0.5 cents at the interim stage last year.

Net assets soared to US$64.46mln from US$25.04mln the previous year, principally due to a large increase in the value of property, plant & equipment – up to US$27.38mln from US$17.28mln – and a sharp uplift in trade and other receivables – up to US$45.35mln from US$2.25mln.

The group is free of debt and had a cash balance at the end of the reporting period of US$3.2mln, up from US$1.0mln a year earlier. Subsequent to the period covered by the interim results, the group has received US$28mln from the sale of its remaining interest in the oil and gas asset in Ethiopia.

“Our strong cash position will allow us to fund our growth strategy without dilution which I believe marks us out amongst our peers,” claimed Phil Edmonds, chairman of Agriterra.

Andrew Groves, the group’s chief executive, highlighted one major expected impact from the group's investment programme, as he said, “Our beef business margins going forward will rapidly widen as we roll out our distribution hub and retail units, maximising the potential of our newly established integrated beef operation."

"Furthermore," he added, "with a solid foundation in place for long term growth at our cocoa operations in Sierra Leone, and record milling at our grain facilities in Mozambique, Agriterra looks set for strong and sustainable growth.

The shares were up 2.2% at 3.34p in the first hour of trading following the results.

Equatorial Palm Oil (LON:PAL) has reached another milestone in its bid to become a leading palm oil producer in West Africa.

Liberian Palm Developments, the joint venture between the company and BioPalm Energy, has hired African Export-Import Bank as a partner to secure a US$140mln financing.

The cash is expected to be enough to fund the Palm Bay oil palm project which lies near the deep-water port of Buchanan in Liberia.

Equatorial's chairman Michael Frayne told investors: "The proposed facility is part of the overall funding strategy to support our large-scale planting programme at Palm Bay through to positive cash flow.

"Once secured, this funding will enable us to drive forward a project that is as important for Liberia as it is attractive for investors."

The Palm Bay oil palm project involves large scale oil palm cultivation.

The company said it feels that the appointment of Afreximbank demonstrates the continued progress made by the company in implementing its strategy of becoming a leading West African palm oil producer.

Agricultural group Agriterra (LON:AGTA) has opened a second beef retail unit in Mozambique to help boost margins throughout its integrated beef business.

The new unit, in Tete in Mozambique, will be supplied by Agriterra’s abattoir at Chimoio, which opened in December.

A first beef retail unit opened in December also at Chimoio and is performing well, said Agriterra.

Cattle for both units are being supplied from Agriterra’s ranches at Mavonde and Dombe, the feedlots at Vanduzi and the local community.

Another four retail units are scheduled to open in 2013.

Euan Kay, executive director said: "With the roll out of our beef retail units now underway, the margins from our beef operations will improve significantly.

“Our ranches continue to grow both in terms of land size and head count, our herd now standing at 5,650 head, and the abattoir at Chimoio is benefiting both our business and the local community.“

Real Good Food (LON:RGD) says its underlying performance is on an "upward curve" with two divisions returning to profitability, despite the food industry experiencing a tough time at the end of 2012.

In line with the rest of the food sector in the final three months of 2012, trading activity was depressed, and December was particularly challenging for the sugar, dairy and bakery group.

The company, which changed its fiscal year-end last year to the end of March, said trading during the current quarter will be critical to the full year outcome, especially as it contains most of the Easter period this year.

Sugar division Napier Brown's sales following this year's main contract season were lower than anticipated.

The firm said a contract has now been entered into to buy a facility in Lincolnshire, UK, for importing sugars cost effectively from all parts of the world - expected to be operational during this summer.

At bakery ingredients business Renshaw the firm is progressing growth plans, particularly online and internationally.

Also in bakery ingredients, R&W Scott has returned to profit following its separation into a distinct business unit and has plans in place to develop a distinct branded offering in both jams and chocolate coatings, the group said.

At patisserie division Haydens, profits since October have met expectations and the current run rate is in line with the group's budget. Its customer base is extending, with strong growth planned in foodservice.

The group's executive chairman Pieter Totté said today: "The strategic changes that have been made across the group during the current financial year are now settling down and producing positive results. There has been a return to profitability at Haydens and R&W Scott, for example, and overall profitability is expected to be well ahead of the previous year.

"Our underlying performance is clearly on an upward curve and our plans for further growth are underpinned by our partnership with PNC which, through the recent extension of our banking facilities, provides us with the financial support we need. I remain confident that we are on course to achieve my vision for the business."

On the last day of 2012, the company said it had completed a new five-year £50mln bank facility with its current financiers PNC Financial Services UK.

The new facility, which is £10mln more than the existing one, will run until December 2017 comprising a mixture of revolving credit facilities secured on the fixed assets of the business.

Following the update, broker Shore Capital said it was leaving its full year forecasts (to March 31) unchanged with corporate profit before tax of £7.4mln, equating to EPS (earnings per share) of 7.5p.

The company's stock is currently trading on a full year 2013 price to earnings ratio of 6.2 times, it noted.

Shares fell around 15% to 40.25p.

In line with the rest of the food sector in the final three months of 2012, trading activity was depressed, and December was particularly challenging for the sugar, dairy and bakery group.

The company, which changed its fiscal year-end last year to the end of March, said trading during the current quarter will be critical to the full year outcome, especially as it contains most of the Easter period this year.

Sugar division Napier Brown's sales following this year's main contract season were lower than anticipated.

The firm said a contract has now been entered into to buy a facility in Lincolnshire, UK, for importing sugars cost-effectively from all parts of the world, and this is expected to be operational this summer.

At bakery ingredients business Renshaw the firm is progressing growth plans, particularly online and internationally.

Also in bakery ingredients, R&W Scott has returned to profit following its separation into a distinct business unit and has plans in place to develop a distinct branded offering in both jams and chocolate coatings, the group said.

At patisserie division Haydens, profits since October have met expectations and the current run rate is in line with the group's budget. Its customer base is extending, with strong growth planned in foodservice.

The group's executive chairman Pieter Totté said today: "The strategic changes that have been made across the group during the current financial year are now settling down and producing positive results. There has been a return to profitability at Haydens and R&W Scott, for example, and overall profitability is expected to be well ahead of the previous year.

"Our underlying performance is clearly on an upward curve and our plans for further growth are underpinned by our partnership with PNC which, through the recent extension of our banking facilities, provides us with the financial support we need. I remain confident that we are on course to achieve my vision for the business."

On the last day of 2012, the company said it had completed a new five-year £50mln bank facility with its current financiers PNC Financial Services UK.

The new facility, which is £10mln more than the existing one, will run until December 2017 comprising a mixture of revolving credit facilities secured on the fixed assets of the business.

African agricultural company Agriterra (LON:AGTA) has received an initial US$28mln from Marathon Oil after handing over its 20% stake in the South Omo Block in Ethiopia to the US oil giant.

The remaining US$12mln payable to Agriterra has been lodged with the Ethiopian government for tax purposes.

Agriterra will get a final US$10 million following a commercial oil discovery.

Chief executive Andrew Groves said: “I would like to take this opportunity to thank all parties involved in the completion of the sale of South Omo, in particular, the government of Ethiopia, Marathon Oil, and our partners in the block, Tullow Oil (LON:TLW) and Africa Oil.

“This injection of capital into our business, representing approximately 50% of our market capitalisation, will facilitate our rapid expansion plans across all our agricultural divisions, enabling the group to become a significant pan-African food producer and processor.”

Agriterra will use the cash to fund a strategy of becoming a leading sub-Saharan food provider.

It currently has four key divisions: cattle ranching, maize farming and milling, cocoa trading and palm oil.

‘Yes, we have some bananas,’ is the cry at Agriterra (LON:AGTA), which has bought a 2,500 hectare farm which includes a 50 acre banana plantation.

The banana plantation is currently producing weekly yields of around seven tonnes, but production is expected to increase significantly under Agriterra's ownership.

The African agriculture firm said the farm, which is situated some 25 kilometres north of its Mavonde stud ranch in central Mozambique, also has a macadamia orchard and land capacity for cattle.

The macadamia orchard is scheduled to start commercial production within 24 months.

On the subject of the stud ranch, work is underway to double the capacity following the purchase of an adjoining 1,000 hectare farm.

The Mavonde dam now has capacity to irrigate the ranch for four years, which will support “head to hectare” growth; the current stud breeding herd stands at 900 head, and the intention is to expand it to 2,500 head by the end of this year.

There was plenty of good news in other parts of the business, as well.

The maize milling operation at Compagri are operating close to full capacity and generating improved revenues, while strong initial trading is being seen at the Chimoio beef retail unit, with sales of $1,000 to $1,500 per day on an upward curve. The company is set to open its second beef retail unit this month.

Euan Kay, Agriterra Executive Director said, "The purchase of additional acreage in Mozambique provides a strong boost to our rapidly expanding beef operations, which are already producing significant revenues for the group.

“Turnover will be further enhanced by our new retail units, where initial daily sales of up $1,500 have been reported from our first shop in Chimoio.  In addition to this, group revenues will be further bolstered and diversified by the acquisition of a producing banana plantation and macadamia orchard.

With a strong development strategy in place to maximise the value potential of this new land, we are well set to enhance shareholder value and strengthen Agriterra's position as a pan-African agriculture business."

The sugar and bakery company's current facilities were due to expire in July 2013.

The new facility, which is £10mln more than the existing one, will run until December 2017 comprising a mixture of revolving credit facilities secured on the fixed assets of the business.

Executive chairman Pieter Tiotte said: "I am extremely pleased we have been able to extend our relationship with PNC who have always been supportive of the group and have demonstrated their continued commitment by providing the facilities we need to help deliver our ambitions."

The company, whose brands include Whitworths sugar and R&W Scott jams, has a strategy to double the size of its operations over the next three years.

Its Napier Brown division is the largest independent non-refining distributor of sugar in Europe.

Real Good Food also supplies bakery ingredients through its Renshaw and R&W Scott subsidiaries and manufactures patisserie and desserts at Haydens Bakery.

Shares in the company lifted 7% to 44p on the news.

It came as the sugar and bakery supplier posted half year results to September 30.

These showed there had been a significant improved performance at bakery ingredients division R&W Scott, which returned to profitability in the period reporting EBITDA up £0.8 million on last year.

Overall, continuing profit before tax came in at £1.17 million (2011: £1.3 mln), while EBITDA was little changed at £3 million compared to £3.1 mln in 2011 as the group continues to focus on driving sales and brand development.

Revenue for the six months stood at £137.8 million (2011:£128.2 mln).

Executive chairman Pieter Totté said: "We enter the critical Christmas trading period with all businesses in a strong position to maximise commercial opportunities. 

"At the same time we continue to develop our medium term growth plans, and I am confident the group will deliver results for the year as a whole in line with market expectations."

The new standalone R&W Scott business is on track to deliver positive EBITDA for the year to March 30.

At sugar division Napier Brown, Garrett (dairy ingredients) and bakery ingredients division, Renshaw, EBITDA were all in line with expectations.

At patisserie and desserts business Haydens, an improved performance is expected to accelerate in the second half, the firm said.

Africa-focused food group Agriterra (LON:AGTA) said initial indications for the first half of the 2012/2013 financial year looked “extremely encouraging”.

Chairman Phil Edmonds said: “Following periods of intensive investment over the past four years, the group has built a solid agricultural footprint in both Mozambique and Sierra Leone, and will benefit from a strong balance sheet moving forward, ensuring that we have all of the necessary resources to deliver on our growth objectives of building a significant pan-African agriculture business.”

Agriterra released most of its final figures for the year May in a trading update last month, though today’s final figures showed net assets of US41.4 mln compared to US$38.5 mln in October‘s update.

Despite a fall in demand in the grain business, initial revenues from the beef and cocoa operations resulted in turnover for the group increasing to US$13.8m (2011: US$13.6m).

Investment in building the beef and cocoa operations resulted in an increase in the reported loss on continuing activities after tax of US$6.9m (2011: US$2.3m), it said.

Agriterra is also waiting for the cash from the sale of its 20% legacy interest in an Ethiopian oil asset for US$40 million on completion and a further US$10 million on "Commercial Discovery."

It is also due a compensation payment of £11.4 mln as partial recompense for work undertaken and investment on Southern Sudanese oil asset.

Shares rose to 3.17p. 

The company, whose brands include Whitworths sugar and R&W Scott jams, has a strategy to double the size of its operations over the next three years.

Its Napier Brown division is the largest independent non-refining distributor of sugar in Europe.

Real Good Food also supplies bakery ingredients through its Renshaw and R&W Scott subsidiaries and manufactures patisserie and desserts at Haydens Bakery.

Indeed, Napier Brown holds the key to the group's growth and this has been the focus of activity in recent months, as well as boosting last year's results.

While the group has a strong position in European markets, a recent senior board appointment points to even greater strategic ambitions.

Jacques d'Unienville, Chief executive of Mauritius-based Omnicane, with which the firm has worked closely with over the last decade, has joined as a non-executive director.

He arrived at Real Good Food after Omnicane took a 20% stake in the company and inked a co-operation deal in the summer.

The company and Omnicane plan to explore joint ventures in sugar production, and the development of export markets for other Real Good Food products - particularly on the African continent.

In return, the company offers Omnicane routes to market within the European Union, where there is demand for competitively-priced cane imports.

It comes after sugar pricing reforms saw a big reduction in  EU beet production and left  European customers looking for alternative low-cost suppliers.

Omnicane has a world class model of sugar refining combined with electricity co-generation.

In July, The Real Good Food Company said it believed Omnicane's model of refining cane sugar in the source country is the right one, not only for Mauritius, but also for other cane producers across the world.

"Omnicane can provide the experience and expertise in cane refining and Napier Brown can provide the routes to market, particularly in Europe where customers want and need new supply sources," it told investors.

Meanwhile, the firm's Liverpool-based baking ingredients division, Renshaw,  is doing well and benefiting from the growing interest in home-baking, both in the UK and abroad.

Haydens Bakery, which manufactures patisserie products, is continuing to implement a recovery plan after a difficult 2011, but is experiencing steady growth in sales.

Finally, Garrett Ingredients continues to develop sales of its dairy ingredients range, and has begun accessing  new dairy product sources in Europe.

When it released its full year results in July, Real Good Food reported total group sales to 31 December 2011 of £249 million, up from £200 million the previous year.

Chairman Pieter Totté told investors the company had delivered on its promise to return growth in sales and profitability in 2011.

“We are now embarking on an exciting period designed to transform the scale of the group over the next three years,” he said.

Earnings before interest, tax, depreciation and amortisation leapt to £9.1 million,  from £5.6 million in 2010.

The company has now shifted its year end to March to reflect the seasonality of its trading.

Total group sales were £305.5 million for the 15 months to 31 March 2012, against £249 million for the 12 months to December. Pre-tax profits for the 15 months came in at £4.36m. 

House broker Shore Capital forecasts sales  for 2012/13 of £311.8 million, rising to £360.1m in the year to March 2014.

"Following some recent weakness, RGFC's shares currently trade on a FY2013F PER of 6.4 times and an EV/EBITDA ratio of 5.5 times. 

"We note with strong growth anticipated going forward the valuation multiples decline to 4.3x and 3.7x respectively in FY2014F, which to our minds look undemanding valuation metrics given the group’s growth prospects," it said in a September note.

Trading in the last three months had been considerably higher than a year ago the beef-herder said, reflecting heavy investment in all of its operations.

Over the past year it has increased the size of its herd to more than 4,800 cattle with 16,000 hectares of land providing room for expansion. The herd is targeted to reach 6,000 by the end of 2012.

Cocoa trading arm Tropical Farms Limited now has three main hubs and a direct buying register of 3,500 farmers. The company traded approximately 1,250 tonnes of cocoa and 75 tonnes of coffee during the year to May. 

The extra investment meant losses for the year rose to US$6.9 million (2011: US$2.1 million) on flat sales of US$13.8 million (2011: US$13.5 million).  As well as cattle ranching and cocoa trading, Agriterra also has maize and milling and palm oil divisions.

Assets at the year end rose by 55% to US$38.5 million (2011 :US$24.8 million) and recently Agriterra also agreed a sale of its legacy 20 per cent stake in the South Omo oil block in Ethiopia for up to US$50 million.

Andrew Groves, Agriterra's chief executive said: "We continue to make excellent progress building a long term sustainable agricultural and food production business, and now have three revenue streams from beef, grain and cocoa sales.

"We also anticipate two significant cash injections in the near future, firstly on completion of our agreement with Marathon Oil which will provide the group with an additional US$40 million before tax, followed by a compensation payment of £11.3 million in relation to work completed at the Block Ba oil concession.

The dramatic cash injections will provide Agriterra with a very healthy cash position which already underpins the valuation of the Company, but will also enable the execution of our rapid growth initiatives."

Equatorial Palm Oil (LON:PAL) chairman Michael Frayne says the company is poised for an exciting twelve months as it continues to advance its strategy to build a significant African agriculture business.

The Liberia-focused palm oil company in this morning’s interim results told investors it had completed another ‘solid’ period. 

Indeed, it achieved a number of important milestones including the full commissioning of its Palm Bay mill and its first international sale of crude palm oil (CPO).

Though these are notable achievements Equatorial’s main focus has been on the expansion of its palm oil plantations and this year is its busiest to date. It is on track to plant 1,700 hectares of palms by the year’s end.

“Our planting programme is starting to accelerate to the level that we want it,” Frayne told Proactive Investors.

“We will really start to see that coming through in the next six to twelve months. We got a team together that’s now well established, and they’re now beginning to hit their straps. 

“It is a progressive thing. Every six months as we look back we see the company’s achieved a lot and has already come a long way.”

For the six months to June 30, Equatorial generated revenues of $210,000 and it reported a loss of $1.5 million. And it ended the period with around $1.7 million in cash and cash equivalents.

But these figures do not reflect the scale of the business Equatorial is currently building. 

At the moment Equatorial is producing CPO from around 3,500 hectares of ‘very mature’ palms, which have much lower yields than Frayne is expecting from the newly planted crops. 

The first planting programme of new palms began last year and first revenues from those crops will come in 2014.

Each young palm is taken from the nurseries and planted when it is about one year old and they are expected to take a further three years before the crops begin to contribute revenues.

So the firm’s first properly meaningful revenues are still a number of years away. That said, the company’s incremental planting programme is adding a significant amount of value as the company literally sows the seeds for its future.

“We are at the moment our focused on planting. That is where we can add the real value to the company. The key is to get on that planting cycle. 

“We are hoping to plant 6,000 hectares next year. That is an enormous area and we’ll look to repeat that level of planting from then on, if not increase it.

“We’re establishing our nurseries, and we’re putting in place the structure so that we can show we’re able to plant 6,000 hectares each year.”

“We’ve got big plans and we’ve got to keep demonstrating what we’re doing. It takes a while (to establish) but once it’s in place we’ll really start building up the business quickly.

“We are getting very close, within a couple of years, of our first incremental cash flows. 

“And as we are continuing to plant at an increasing rate every year, the cashflow will continue to expand year on year from then on.”

While the main thrust is on planting, the work to establish production from the older plants has also boosted the group’s position and helped de-risk the future ramp-up to a larger scale operation.

Frayne says the company has a better understanding of the CPO market now, and that is reflected by the group’s first international CPO sales earlier this year.

“We’ve been able to open things up from that point of view.”

Frayne also explains that while larger facilities will ultimately be required - as the CPO production scales up as the planted crops mature – the commissioning of the current mill earlier this year was an important milestone.

As well as providing some revenues Frayne says the facility is helping reduce the project’s implementation risk because the workforce is becoming better trained and more familiar with the process.

With these achievements and the solid progress with its planting campaign Equatorial Palm Oil is increasingly well positioned, and according to Frayne this is not lost on investors.

“We get enquires from investors from all over the world. 

“The interest in agriculture, particularly palm oil and particularly in Africa really is enormous. 

“Investors want to know who we are and what we’re doing. We seem to be on a watchlist for a lot of people because I think we’re positioned in an incredibly exciting sector. 

“The world view on vegetable oil and palm oil is just enormous and the African palm oil story – as part of a bigger African agriculture story – is where a lot of investors appear to see a lot of potential.

“And we seem to be right in the thick of it.”

Equatorial Palm Oil (LON:PAL) said the first six months of the year represent another solid period for the company.

Indeed, it was a period in which the Liberia focussed palm oil company achieved a number of important milestones including the full commissioning of its Palm Bay mill and its first international sale of crude palm oil (CPO).

Though these are notable achievements Equatorial’s main focus has been on the expansion of its palm oil plantations.

It says it is on-track for its targeted 1,400 hectares of oil palms at Palm Bay and the first 300 hectares are expected to be in place at Butaw by the end of this year. 

Importantly it continued to enlarge its nurseries and it has more than 1.7 million young palms for planting over the remainder of this year and next year.

"The first half of 2012 has been another solid period for the Company which saw emphasis placed on expanding our nurseries and land preparation,” said chairman Michael Frayne.

“We also achieved the first shipment of CPO to international customers. We remain on track to plant over 1,700 hectares of palms in total for this year at both Palm Bay and Butaw Estates.

"We have built up a strong operational team on the ground in Liberia which will significantly enhance our planting rate in 2013. 

“The remainder of 2012 and 2013 remains an exciting time for the company and I look forward to updating shareholders as we continue to work towards our long term strategic goals."

For the six months, Equatorial had revenues of $210,000 and it reported a loss of $1.5 million. And it ended the period with just under $2 million in cash and cash equivalents.

Looking ahead the company is upbeat about the palm oil market, which it says is underpinned by compelling demographic and macro-economic trends.

“Despite the challenging market conditions over the Period, we remain confident that palm oil prices will improve as a result of limited supply and continuing strong demand,” the company said.

Partner Africa Oil said the figure was a best case, gross unrisked estimate derived from an independent review of the South Omo block in Ethiopia.

Agriterra has a 20 per cent stake in South Omo with Africa Oil owning 30 per cent and Tullow Oil (LON:TLW) 50 per cent. 

Sabisa-1, the first well planned for the South Omo Block, is now targeted to be drilled by the end of 2012, following Tullow's rig contract negotiations in Ethiopia, which are nearing conclusion, Agriterra added. 

South Omo is situated within the Tertiary age East African Rift just north of Lake Turkana, one of the last great rift basins to be explored in East Africa, said the company.  

Tullow has already made a discovery on Block 10BB in Kenya, which is located within the same petroleum system as South Omo.  

Seismic and gravity data from Africa Oil show robust leads and prospects throughout the South Omo Project area, Agriterra said.

Chief executive Andrew Groves added the results combined with successful drilling in the same petroleum system confirmed the high prospectivity of the concession.

He added he was also “extremely excited about the prospect of the first well being drilled by the end of the year“.

He added that with the agricultural and ranching businesses going from strength to strength there is the potential for a “great value uplift” at Agriterra.

The Real Good Food Company (LON:RGD) this afternoon announced that non-executive director Peter Salter has bought more shares in the firm.

Yesterday (August 23), Salter bought 50,000 shares at 46 pence each for £23,000.

He now holds 131,000 shares in the firm - representing 0.19 per cent, the firm said in a statement.

It comes after Salter, a week ago (August 16), also bought 50,000 shares, at 42.5 pence each, in a transaction worth £21,250.

The company is a UK bakery, ingredient and sugar group, offering a wide range of products to grocery retailers, wholesalers and manufacturers.

The Real Good Food Company (LON:RGD) revealed non-executive director Peter Salter has bought shares in the firm.

Yesterday (August 16), Salter bought 50,000 shares at 42.5 pence each for £21,250, the company said in a statement.

He now holds 81,000 shares, or around 0.12 per cent of the share capital.

The company is a UK bakery, ingredient and sugar group, offering a wide range of products to grocery retailers, wholesalers and manufacturers.

Under the terms of the agreement with Macquarie Private Wealth and Renaissance Securities, the agents have the option to accept subscriptions for up to an additional 15 per cent of the maximum offering, exercisable in whole or in part up to 30 days following the offering's close.

The company issued two types of securities to purchasers in the first tranche of the offering.

The company received gross proceeds of $3.7 million from the issue of 3,679 units, with each debenture unit consisting of one $1,000 principal amount 12.0 per cent convertible unsecured subordinated debenture, and 1,667 common share purchase warrants.

The purchase price for each debenture unit was $1,000 per unit.

Feronia also issued around 11.1 million common shares for a total of $1.11 million in proceeds, at a purchase price of 10 cents per share.

The debentures will bear interest at 12.0 per cent per year, payable semi-annually, starting on December 31, and will be due five years from the closing of the offering.

The principal amount of the debentures will be convertible into common shares of the company, anytime prior to the maturity date, at a price of 17.5 Canadian cents per share.

This represents a ratio of 5,714 common shares per $1,000 principal amount.

Each whole warrant in the units entitles the holder to purchase one common share at a cost of 30 cents per share until July 24, 2014.

"We are pleased to close the first tranche of this Offering and look forward to concluding the financing in the coming days," said Feronia’s executive chairman, Ravi Sood.

"We are very encouraged and appreciative of the support of our existing shareholders and the participation of management and the Board of Directors in this Offering."

The company unveiled its plans for the brokered private placement financing for up to C$10 million in proceeds on July 16.

Feronia also recently reported that in its arable farming operations, it anticipates having capacity in place to mill over 30,000 tonnes of rice per year and to farm 2,000 hectares of land, by the end of the third quarter.

The company is limiting its expenses on the arable farming operations and focusing its efforts on continuing to prove yields through smaller-scale plantings.

Feronia is focused on arable farming and oil palm operations in the Democratic Republic of Congo (DRC). Feronia PHC’s three plantations span 107,892 hectares, an area larger than Manhattan, San Francisco, Brussels, Amsterdam, Zurich, Paris, Geneva, Lisbon, Dublin and Montevideo combined.

For the full-year 2011, the company achieved gross margin of 45 per cent, compared to 40 per cent in 2010.

Revenues grew to $7.45 million from $3.91 million a year earlier. Crude palm oil (CPO) production was up 61 per cent to 7,981 tonnes for the full year, up from 4,951 tonnes in 2010.

At its Napier Brown business, the company has promoted Jon Tanner to the MD post.  He joined the group in March 2011 as sales director of the subsidiary.

Tanner held several senior commercial roles in British Bakeries, Rank Hovis and McDougall's Foods before being appointed sales and marketing director of miller Rank Hovis in 2003.

In 2008, he joined Calor Gas as sales and marketing director and delivered a complete re-positioning of the Calor brand and successive years of sales and profit growth.

At R&W Scott, Real Good Food has appointed John Easton as MD.  Easton joined the Renshaw business in 2006 and has nearly 25 years' experience in the food industry previously holding senior site operational positions at Express Foods, part of Grand Metropolitan, and Vion Foods.

On group executive level, the company has appointed David Wright as operations director.

In his position, Wright will oversee plans for investment in production and operational facilities required to meet sales growth plans as well as identifying cross divisional opportunities in purchasing, technical and development. 

He joined Renshaw in 2005 and prior to that held senior operational roles at United Biscuits and Northern Foods and was operations director at Campbell Soup and Tetley Tea.

Finally, Real Good Food has promoted Andrew Brown to the post of group brand and marketing director and he will, as well as continuing to build on his work in revitalising the Whitworths brand in sugar, will provide strategic direction for the plans to develop the Renshaw and R&W Scott brands.

Brown joined Napier Brown in 2008 following a career where he held a number of marketing director roles at the RHM Group on brands such as Hovis and Mr Kipling.