# Dekel Agri-Vision Cashew production doubles the worth of the company says Arden (LON: DKL)

- Link: https://www.directorstalkinterviews.com/dekel-agri-vision-cashew-production-doubles-the-worth-of-the-company-says-arden-lon-dkl/4121023852
- Published: 2021-09-22T07:02:30+01:00
- Author: Giles

**[Dekel Agri-Vision Plc](https://www.directorstalkinterviews.com/company/dekel-agri-vision-plc/dkl.l)**(
[LON:DKL](https://www.directorstalkinterviews.com/company/dekel-agri-vision-plc/dkl.l)),
the West Africa-focused agriculture company, on Tuesday announced its interim results
for the six months ended 30 June 2021.

DirectorsTalk Interviews caught up with Theo Bache, Analyst at Arden Partners for
his thoughts on the update.

**Q. Dekel Agri-Vision have now released their H1 2021 Interim Results, Theo what
were the key takeaways?
Key takeaways: Revenue of €21.7m an increase of 41% versus
H1 2020 and Profit after tax up 400% at €2.00 compared to last year.Q. Has this 
meant changes to your forecast?

No forecast change. I have compared this first half result to the last four years
to work out an average run rate and I believe that the results comfortably sit within
our forecast for the whole year. Should the CPO pricing environment continue, then
a model revision might be necessary.

**Q. How do you view the company in terms of fair value?**

It’s clear that the market are valuing the palm oil business in its entirety and
they are pricing that fairly. However, they are entirely discounting the cashew 
plant which, beyond the obvious merit of diversifying the business away from one
single commodity, indicatively doubles the worth of the company on a future cash
flow basis. We expect meaningful commercial output to commence in October.

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