Agro-focused firm Ariston Holdings Limited says it expects to record a loss when its full-year audited results are released.
The group had projected to post a profit during its half-year update.
In a cautionary statement on Tuesday, company secretary Faith Musinga said: “Shareholders are advised the audited results for Ariston Holdings Limited for the year ended September 2011 are expected to show a loss against a projected profit at the half-year.
“This has been driven primarily by working capital constraints,” said Musinga.
Musinga urged shareholders to exercise caution when dealing with the company’s shares.
In unaudited financial results for the half-year ended March 26 2011 Ariston recorded revenues of $6,9 million and a loss before tax of $1,2 million and total assets of $21,2 million.
Revenue during the first six months had increased to $6,9 million from $4,1 million the previous comparable period, driven by increased volumes across several of the group’s businesses.
Under the tea and macadamia division, tea volumes had increased 109% over the same period in 2010, while tea sales volumes went up 98% on the previous comparable period.
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Exports contributed 42% of total sales volumes and increased by 144% compared to prior year. In March the board said cash constraints affected availability of produce, but with the assistance of the group’s major shareholder — Emvest — in the form of an import facility, produce supplies had increased.
Poultry volumes went up significantly compared to previous comparable period, but the performance was below expectation.
