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Full Year Interim Report for the financial year 2010

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The Full Year Interim Report for the financial year 2010 for Alpcot Agro AB (publ) (“Alpcot Agro”, “the Company” or “the Group”) has been approved by the Board and subjected to a limited review by the Company’s auditor.

The audited annual report will be published both in Swedish and in English no later than three weeks before the Annual General Meeting which will take place on May 18, 2011 in Stockholm. The information presented is financial results for the period 1 January 2010 – 31 December 2010  (numbers within brackets refer to the period 1 January 2009 – 31 December 2009 unless otherwise stated).

Financial highlights for the period

  • The Group's revenues from sales in 2010 amounted to SEK 232 million (179 million), an increase of 29 percent.
  • The result from changes in fair value of biological assets in 2010 amounted to SEK -4 million (-4 million) and proceeds from government grants amounted to SEK 13 million (SEK 9 million).
  • Operating loss after net goodwill adjustments for 2010 amounted to SEK -161 million (-189 million), and the Group net loss after financial items and tax for 2010 was SEK - 202 million (-174 million).
  • Cash and cash equivalents of the Group as of 31 December 2010 were SEK 66 million (33 million).
  • Earnings per share for 2010 equalled SEK -4.04 (-5.03). Equity per share as of 31 December 2010 was SEK 18.70 (27.21).
  • The Company raised SEK 235 million before issue costs from a preferential rights issue in January 2010.
  • The Board proposes that no dividend be paid for the financial year 2010.

Important events after the end of the period

  • On 16 February 2011, the Company announced a preferential rights issue to raise approximately SEK 322 million before issue costs by the end of April 2011. A prospectus for the rights issue is to be published on 24 March 2011.
  • On 16 February 2011, the Company announced changes in the management agreement between the Company and Alpcot Capital Management with the consequence that i.a. the management fee has been converted to a fixed yearly remuneration.
  • The Company issued convertible bond instruments in March 2009 for a total of SEK 65 million, which mature on 27 March 2011. Holders of the convertible debt instrument corresponding to approximately 95 percent of the outstanding amount have agreed to postpone the due date of the debt to 28 April 2011. Holders of convertible debt instrument corresponding to KSEK 100 have requested conversion into shares in Alpcot Agro at SEK 14.61 per share, which led to an issue of 6,844 new shares in March 2011.

Björn Lindström, Managing Director of Alpcot Agro AB, comments

“Alpcot Agro was severely affected by the historical drought in the Russian inland in 2010. This led to large operational losses in 2010. On the other hand, the drought has reduced domestic stocks and led to sharply higher prices in Russia, and thereby radically improved the profitability outlook for 2011. The business plan for Alpcot Agro is being implemented, and the operations are being concentrated to a few large clusters. All material partnerships with local Russian partners have been terminated during 2010, triggering write-offs in some cases.

The proposed rights issue is a vital precondition for implementing the business plan and creating a viable and strong company. We firmly believe that 2011 holds very promising conditions for our crop production, and that it is the right decision to maximize the cropped area to capitalize on the high prices for soft commodities.

Alpcot Agro has increased its presence in Ukraine by organic growth and by acquiring assets in the western part of the country from the listed Polish company PKM Duda. Following the rights issue, Alpcot Agro will further take advantage of its Ukrainian presence, and we have high expectations on the result in 2011.“

Stockholm, 22 March 2011
The Board of Directors

For further information please contact:
Björn Lindström, Managing Director +44 (0) 7979 855 556
Joakim Ollén, Chairman of the Board +46 (0) 70 354 24 07

The preliminary reporting calendar for 2011 is

27 April 2011 Annual Report 2010                 

18 May 2011 Annual General Meeting 2011                          

31 August 2011 Interim Report January-June 2011

30 March 2012 Report for the financial year 2011                   

About Alpcot Agro AB (publ)
Alpcot Agro is a Swedish limited liability company incorporated in 2006. The Company's objective is to generate an attractive total return on invested capital by acquiring and farming agricultural land in Russia and in other CIS member states. The shares in Alpcot Agro are listed on First North under the ticker ALPA and the Company’s Certified Adviser is Remium. Additional information is available on www.alpcotagro.com.

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