Agra group has recorded an increase in gross-turnover from N$707 million in 2015/16 to N$912 million in 2016/17 financial year which is a weighty increase of 30%.
Net-turnover achieved for the Agra auctions division amounts to N$52.3 million compared to N$39.8 million in the previous financial year indicating an increase of 31.3%.
The group has also recorded a negative cash flow for 2016/17 of N$54.3 million.
Cash flow will remain under pressure for the next financial year, but it monitored and controlled continuously, chief executive officer of the group, Arnold Klein states.
“Our business is built on excellent customer service and the personal and unique relationships that we have with our client base defines the Agra brand. The year under review posed many challenges, testing the leadership and character of our management and staff. As the agricultural sector was recovering from the severe drought, restrictions placed on exports and low producer prices, the country was hit by an economic recession which negatively impacted on consumer spending and employment,” he stated.
He added that livestock producer prices increased drastically towards the end of the financial year benefitting both producers and the business environment within the agricultural sector, with a positive spin-off on Agra auctions.
Klein also said that the group’s strong focus will be placed on cash flow management amidst the tough economic time the country is currently facing.
“In reaching our growth targets for 2017/18, we are largely dependent on the well-being of the farming sector. It is imperative that the country receives above average rains and that the current favourable producer prices is maintained, thus enabling the agricultural sector to recover,” he stated.