As Salaamu Alaykum
Dear Investor
With 2022 quickly coming to an end, we would like to use this opportunity to keep our investors informed of the latest happenings at Al Mabroor.
Beefcor acquisition
Al Mabroor Agri would like to thank all our loyal investors for their contributions in making the Beefcor transaction a reality. We raised sufficient funds to conclude the transaction and are looking forward to the road ahead with the Beefcor management team.
We believe Beefcor has the potential to become one of the more profitable feedlots in the country. It will also play a major role in assuring that we can supply around 3 000 animals per week to the abattoir to ensure that the abattoir runs at full capacity.
New Board
The following individuals will serve on the Al Mabroor Agri Board:
Executive Directors:
Wiaan Smit
Anka du Toit
Nella Payne
Non-Executive Directors:
Yaseen Badat
Suhail Mohamed
Nelius van Huyssteen
At the next Board meeting a further two Non-Executive Directors will be appointed to give more representation to existing shareholders in the Al Mabroor Agri fund. An investment committee and a risk and audit committee will also be appointed. The current three Non-Executive Directors have played a major role in assuring that the new Shariah Consultancy Committee was established and that Al Mabroor Agri is compliant to all requirements from the FSCA. We would like to thank them for their contribution thus far and we are looking forward to a very successful road ahead.
New Structure
Al Mabroor wanted to implement the new En Commandite Partnership structure from the 1st of November 2022. On advice from the auditors and at the discretion of the Board, the decision was made to move the date to the 1st of March 2023 to coincide with the new financial year. The new structure will do away with the current model of many smaller partnerships and will effectively pool all these partnerships into one big partnership, reducing the risk to the investors. Ultimately, the underlying product will remain completely unchanged for existing investors.
Foot and mouth disease (FMD) explained
We had many questions from investors regarding the split profit payments over the past two months and the lower returns paid to investors. We trust the explanation below will assist in understanding why.
Around 20 000 of our animals at Morgan Beef had to be vaccinated when a handful of animals in the feedlot tested positive for FMD. It is important to note that we had no mortalities due to FMD and that none of the animals that tested positive were Al Mabroor Agri animals. Legislation prohibits the slaughter of these animals for a compulsory 6-week period after being vaccinated. The abattoir also must dispose of the offal for any animal that is slaughtered, between week 6 and 8, after vaccination. This leads to the abattoir offering less per animal and ultimately lower returns to investors.
Being unable to slaughter for a 6-week period, is the main reason why Al Mabroor had to do split profit payments to investors over the past two months. The Morgan Beef abattoir currently slaughters around 2 200 animals per week, so we are catching up and should be back to normal by the end of the year.
We apologize for the inconvenience, but it is a matter beyond our control.
On the more positive side, we are happy to inform you that we had around 1 200 new births from our breeding stock on the various farms over the past 8 weeks. We are excited about this and it greatly contributes to the profitability in the fund.
New Investment Opportunities Hospitals
Al Mabroor Hospital Fund purchased 2 additional sub-acute medical facilities in Gauteng in recent weeks. Both these facilities have sub-acute licenses and will be operated internally. It should contribute to a steady income stream to the Al Mabroor Hospital Fund. A new sub-acute facility in Worcester in the Western Cape was recently completed and the tenant is moving in by the end of the month. The development was partly funded by a small group of Al Mabroor investors. Al Mabroor would like to purchase the hospital outright into the Al Mabroor Hospital Fund and will provide investors with an investment brochure in the next two weeks.
Sheep expansion
Al Mabroor Agri has been involved in sheep farming on a relatively small scale over the past 18 months and the returns to a small group of investors have been very pleasing. We started with 2 000 ewes as a trial and at present, we are farming with around 10 000 sheep in the Colesberg and Smithfield areas. We feel that the results have been good enough to expand to 25 000 ewes currently and 50 000 ewes in the next 3 years.
We will be sending out an investment brochure once it is approved by the Shariah Consultancy Committee. The main aim of the project will be to supply our loyal investors with lambs for slaughter during Qurbani.
Contact us for ideas. Corporate, Private &Year End Gifts.
Quality and great service. Luxury halal products delivered to your door.
Please allow for production time on large orders. | T&C's apply
Comments