Ellah Lakes reports N563m loss in 2021
By Kayode Tokede
Ellah Lakes Plc has announced its audited results for the full year ended July 31, 2021 with N563.3million loss as against N309.37million loss reported in 2020 financial year. The company also reported N562.8million operating loss in 2021 as against N308.3million operating loss in 2020.
Total operating expenses of N327.72 million driven by administrative expenses (47.8per cent of total), personnel expenses (51.5% of total), and depreciation (0.6per cent of total) which reflects the Company’s investment in its operations
The Company was acquired by new shareholders in 2019 and is in the process of transitioning into a leading agribusiness in West Africa. Prior to 2019, Ellah Lakes Plc. was an insolvent entity with no revenue.
The diversified Agribusiness company year-to-date growth in total assets to N10.08 billion from N5.63 billion, as well as significant increase in cash and cash equivalents, as year-to-date, borrowings increased to N2.23 billion from 733.56 million with total liabilities of N2.96billion
Commenting, Chief Executive Officer/Managing Director, Ellah Lakes , Mr. Chuka Mordi in a statement said, “Over the last 12 months, we have focused on laying the foundation for a sustainable growth and value-adding company by improving our financial flexibility, expanding our land bank nationally, forming partnerships and recruiting top talent.
“A key achievement in line with our strategic plan was the acquisition of a total of 7,400 hectares of land.
“Our focus for the coming year is to begin to generate cashflow by diversifying our products to more crops and commodities that can be traded in the medium term and processed to finished goods in the long term. We are excited about our trajectory and the value we are unlocking for our shareholders.”
on operations, the company explained that, “A produce offtake agreement was signed with Pure Flour Mills Ltd and Premium Cassava Products Ltd. during the course the year for the supply of Cassava Update on our landbank Acquisition of 5,000 hectares of land in Ondo State for the cultivation of Oil Palm, Soya Beans & Cassava.
“Ongoing discussions for the acquisition of approximately 2,800 hectares of land in Ekiti State which will bring the total size of the land bank nationally to approximately 10,000 hectares.
“Approximately 140 hectares have been cultivated, with additional 300 hectares cleared at the Edo state farm. In Ondo state, an access road is being cleared, which will lead to the land acquired from the government.”
Ongoing recapitalisation of the balance sheet with an expected debt and equity fund raise to commence after the Annual General Meeting (AGM) in October.
