ESV Group (PLUS: ESVO) said the impairment charge of £1.01 million associated with the sale of its Mozambique operation in November resulted in an interim loss of £1.24 million compared to a £0.28 million loss a year ago.
Losses per share thus rose from 0.04 pence to 0.17 pence, while revenues slid from £221,467 to £167,020.
Back in November the company sold its Jatropha plantations business and associated assets in Mozambique to SAB Mozambique SA controlled by Italian companies Api Nova Energia SrL and Seci Energia SpA for a total US$4 million.
ESV received an initial payment of US$1.1 million on closing, paying US$0.25 million to the former holders of the land concerned and local labour, tax and social security costs.
ESV has further receivables of US$1.0 million upon delivery of satisfactory certificates of the discharge of past local labour, tax and social security costs and $1.9 million upon delivery of the Jatropha farming rights for the second plantation area, both of which are currently awaited from the Mozambique authorities.
From the further receivables, the final payment of US$0.25 million is to be made to the former holders of the land.
“We are pleased to have concluded the Agreement to sell our Mozambique operations to two of Europe's leading energy companies. We handed over well-established plantations to two specialist biofuel producers with the financial and technical capabilities to take the business forward and make an effective contribution to the reduction of carbon emissions in line with the European Biofuels Directive,” said Chairman of ESV Group Masoud Alikhani.
The 2008 turnover included a one-off grain trade of £84,217. The group said it has not undertaken any trading during the period and did not intend to until the market stabilized.
ESV said that despite a 21% reduction in Ukraine’s grain exports in 2009, levels of exports through the Kherson grain terminal managed by ESV were resilient, allowing the group to raise prices, resulting in management charge revenues of £167,020 compared to £137,250 a year ago.