Cambria Africa Share News (CMB)

(Alliance News) - Cambria Africa PLC on Friday reported a sharp fall in profit and revenue for the first six months of financial 2020, impacted by reintroduction of the Zimbabwe dollar in February 2019, replacing the US dollar as the country's functional currency.

Shares in the Zimbabwe-focused investment company closed 32% lower at 0.18 pence on Friday in London.

For the six months to the end of February, pretax profit fell to USD112,000 from USD2.1 million the year before, as revenue declined by 70% to USD1.3 million from USD4.4 million.

Cambria Africa said that macroeconomic conditions in Zimbabwe deteriorated significantly since the company's last reporting period as the interbank rate fell against the US dollar from ZWL10.71 as at August 31 to ZWL17.94 at February 29.

The Covid-19 outbreak only served to exposed Zimbabwe to elevated economic risks due to its depleted infrastructure and impaired fiscal position.

During the period, Payserv Africa's revenue fell by 85% to USD564,000 from USD3.7 million, while pretax profit plunged by 95% to USD100,000 from USD1.9 million.

Cambria's other business Millchem however, posted a 52% rise in pretax profit to USD178,000 on revenue that grew by 3% to USD742,000.

Looking ahead, the group said that the circumstances in Zimbabwe remain fluid, with the Covid-19 outbreak heightening the challenges already faced by Cambria's subsidiaries.

"We continue to develop financial technologies which are designed to ease payments. However, until there is a realistic market translation of ZWL income into repatriated US dollars earnings, the resultant earnings from financial services will remain exposed to currency devaluation," said Chief Executive Officer Samir Shasha.

By Dayo Laniyan; dayolaniyan@alliancenews.com

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