Maviga increases Total Operating Profit to $5.92m

Maviga International (Holdings) Ltd., [Maviga] has announced a total operating profit (before interest and taxation) of $5.92m for its financial year ending 31st May 2014 – an increase of 0.17% on last year (2013: $5.91m).

Key highlights of the company’s results include:

  • Gross margin percentage maintained above target at 6.44% (2013: 6.46%)
  • Net asset book value increased by 12.3% to $33.8m (2013: $30.1m)
  • Profit after taxation increased by 1.00% to $4.05m (2013: $4.01m)

Marcus Coles, CEO, commented: “The Agricultural Special crops sector continues to be an extremely tough environment and FY14 demonstrated the fundamental strength of our business model.  The silver lining in a highly competitive year was the preservation of our average trading margin; a healthy 6.44%. Many of our similar and larger sized competitors saw falls in margins and struggled to be profitable in the last 12 months.

“We continued to operate our bilateral banking arrangements with RBS and Barclays and increased these facilities by a further $5m (to $52m) in January 2014.  We are currently in negotiations with banks to obtain another significant increase in these facilities for FY15. Alongside this, we are also actively exploring opportunities to obtain additional long-term investment to accelerate the growth of the business.

“During FY14 we re-structured our Middle East operation. We appointed a new Middle East Manager and we purchased a new office in Dubai.  This division of the business is an important part of our growth plans for the future.

“The core strength of the Maviga business model continues to be a three dimensional matrix, with relatively small transactional size, combined with a great diversity in special crop product range covering a large geography of both origins and destinations. Opportunity is rarely everywhere but it is always somewhere and our model helps us find it.

“We have a challenging business plan for the coming year but we are seeing signs in early FY15 of an improved trading environment.”