Kakuzi Ld
03 September 2004
KAKUZI LIMITED
DIVIDEND ANNOUNCEMENT AND EXTRACT FROM THE
INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD OF SIX MONTHS TO 30 JUNE 2004
The unaudited results for the Kakuzi Group for the period of six months to 30
June 2004 and the comparative figures for the previous year are as follows: -
30 June 2004 30 June 2003
Restated
Shs'000 Shs'000
Turnover 622,263 502,483
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Continuing operations 590,951 427,228
Discontinuing operations 31,312 75,255
Operating loss (4,586) (62,214)
Continuing operations 33,875 (683)
Discontinuing operations (38,461) (61,531)
Net Finance costs (23,652) (12,906)
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Loss before tax (28,238) (75,120)
Continuing operations 10,223 (13,589)
Discontinuing operations (38,461) (61,531)
Tax credit 7,076 21,130
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Loss attributable to the members of Kakuzi Limited (21,162) (53,990)
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Shs Shs
Basic loss per stock unit (1.08) (2.75)
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Diluted loss per stock unit (1.08) (2.75)
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The Interim Financial Statements have been prepared in accordance with
International Financial Reporting Standards, in particular International
Accounting Standard 41 - Agriculture. The comparative figures for the six months
to 30 June 2003 have been restated to conform to the presentation of the current
year and in particular to conform with changes in accounting policies brought
about by adoption of International Accounting Standard 41 - Agriculture.
In order to halt the unsustainable losses from our coffee division, the
Directors announced the closure of the company's coffee operations on 7 January
2004. The costs associated with this closure have been reflected in the accounts
for the half year. A successful auction sale of the redundant coffee assets was
held in early August, which will in part offset the costs of the coffee closure.
The profits generated by the auction will accrue during the second half of the
year.
World pineapple prices continue to be firm and we expect higher returns from our
Del Monte Joint Venture this year. We also anticipate an improvement in the
contribution from our avocados during the next six months. The recent
devaluation of the Kenya shilling has had a positive influence upon our returns
and we expect this trend to continue during the second half of the year. However
in view of the loss we are reporting for the first six months of the year and
the desire to further reduce our borrowings, the Directors do not recommend the
payment of an interim dividend.
Dr. T R Fowkes
Chairman
27 August 2004
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