PACSCo Posts Losses as It Sheds Mozambique Assets and Prepares to Trade as AIM Cash Shell

Agriterra ( (GB:PACS) ) just unveiled an announcement.

PACSCo Limited has reported its audited results for the year ended 31 March 2025, confirming continued losses from continuing operations and a substantial loss on the disposal of its Mozambique agricultural businesses, which have now been deconsolidated following shareholder approval. While trading performance at the discontinued Mozambique operations improved with higher turnover and reduced operating losses, prolonged macroeconomic headwinds, disease outbreaks, natural disasters, security issues and limited access to affordable finance left the company unable to achieve sustainable profitability or refinance its debt to lender Chepstow Investments. As a result, PACSCo is proceeding with the disposal of its Mozambique agricultural businesses to Chepstow, subject to final approval by the Bank of Mozambique after competition clearance has already been obtained, and the long stop date for completion has been extended to 31 March 2026. Once the disposal is completed, PACSCo will remain quoted on AIM as an AIM Rule 15 cash shell with a working capital facility from Chepstow, giving the board time to identify and fund a new acquisition or investment, although failure to complete a suitable deal within the regulatory timetable could result in a suspension of trading in its shares.

Spark’s Take on GB:PACS Stock

According to Spark, TipRanks’ AI Analyst, GB:PACS is a Neutral.

Agriterra’s stock is currently facing significant challenges. The primary issues are financial performance marked by declining revenues and high leverage, which are compounded by weak technical indicators showing bearish trends. The valuation is also unfavorable due to negative earnings and lack of dividends, making it less appealing to investors. Improvement in operational efficiency and financial health is needed to boost investor confidence.

To see Spark’s full report on GB:PACS stock, click here.

More about Agriterra

PACSCo Limited, formerly Agriterra Limited, is an AIM-quoted agriculture company that historically operated Mozambique-based agricultural businesses spanning farming and livestock operations. The group has been focused on overcoming challenging political, economic, and operational conditions in Mozambique, and is now transitioning away from those activities with a view to repositioning itself as a cash shell seeking new investment opportunities under AIM Rule 15.

Technical Sentiment Signal: Sell

Current Market Cap: £323.2K

See more insights into PACS stock on TipRanks’ Stock Analysis page.