Last checked at 30 May 2014 11:00
Cambria Africa Plc
("Cambria" or the "Company")
Results for the six months ending 28 February 2014
Cambria Africa Plc, the Southern Africa focussed investment company,announces its six months results for the period ending 28 February 2014 (the "Period").
Highlights for the Period are as follows:
Operational - Focus on growing regional presence, scale and scope of core businesses
· On 19 February 2014 Cambria announced an oversubscribed equity placing with new and existing institutional and other investors of $4.06m to provide working capital to support its regional expansion strategy
· The Company continues to focus on expanding regional presence, scale and scope of Payserv Africa (Payserv) and Millchem Holdings (Millchem)
o Millchem has commenced full operations in both Zambia and Malawi and on 23 May 2014, announced various new regional distribution agreements with leading suppliers such as MEKZ, Centlube (ENI / AGIP lubricants), Sealed Air / Diversey Care and Donau Carbon
o On 27 May 2014 the acquisition of Chemicals & Marketing Ltd, a leading Malawi chemicals distributor, was announced accelerating Millchem's regional expansion with an immediate leading position in Malawi
o Payserv received its National Payments Licence in Zambia, signed its first customers in that country, and commenced processing of bulk payments there. In Zimbabwe, Payserv fully commenced commercial roll-out of its new eSchedules and PayZIMRA products
Financial - Cost control and losses contained against market conditions
· Revenues from continuing operations contracted by 3% at $4.2m (2013: $4.3m), lower than prior periods but significantly better than overall Zimbabwe market conditions, where the economy increasingly struggles with lack of liquidity
· Payserv revenues grew 2% to $2.2m while Millchem revenues contracted 7% to $2.0m
· Gross profit for continuing operations for the Company were $2.3m (2013: $2.4m), resulting from a 3% point increase in gross profit margins at Payserv to 93% (2013: 90%) and a 4% point decrease at Millchem at 16% (2013: 20%)
· Despite the economic situation in Zimbabwe, Payserv was able to continue growth during the period through new product launches at Paynet, a slowly increasing Zambian presence, as well as determined new customer acquisition, especially at Autopay, off-setting continuing overall market-declines
· Millchem's results in particular reflected Zimbabwe's prevailing market conditions even though it was able to largely off-set this by growing market share through the addition of new customers, suppliers, products and services, as well as a slowly increasing regional presence
· Millchem's results were further impacted by significantly reduced introductory pricing in Zambia, substantial investments made at the Millchem Holdings level, creation of buying organisations in Europe and South Africa, and launch costs in Zambia and Malawi, all of which was expensed rather than capitalised
· The Company recorded a loss of $2.7m for the Period, compared to $2.6m during the first half of 2013
Outlook - Good growth since period end despite continuing difficult market conditions
· Investments made in the first half of FY2013 have resulted in gross profit at Millchem since the end of the Period under review, growing year on year by an impressive 25%, despite an increasingly difficult situation in the Zimbabwean economy, signalling a significant improvement in performance
· Payserv continues to register year on year growth during the second half of the financial year
· Cambria continues discussions with interested parties regarding the disposal of our remaining non-core assets in order to focus solely on Payserv and Millchem, growing their scale and scope, as well as their regionalisation
Ian Perkins, Chairman of Cambria Africa, said:
"During the Period the Cambria team continued to deliver on our strategy of expanding scale, scope and regional presence of our core Millchem and Payserv businesses, into a headwind of sector and market decline. We were able to sustain the financial performance of the Company throughout this period, while maintaining our focus on cost control and to invest in future growth. Indeed, as a result, we were able to return to year on year growth in our businesses following Period end.
"We are continuing discussions with interested parties regarding the disposal of our remaining non-core assets in order to focus solely on Payserv and Millchem, growing their scale and scope, as well as their regionalisation. I look forward to updating the market as to our progress in the coming months."
- Ends -
*All references to continuing operations relate to the Group's Payserv Africa ("Payserv") and Millchem Holdings ("Millchem") investments and head office activities. The prior year comparative figures for the same period in 2013 have been restated to reflect this definition of continuing vs discontinued operations. All figures are unaudited unless specified.
Contacts | |
Cambria Africa Plc | www.cambriaafrica.com |
Ian Perkins / Edzo Wisman | +44 (0) 20 3402 2366 |
WH Ireland Limited | www.wh-ireland.co.uk |
James Joyce / Nick Field | +44 (0) 20 7220 1666 |
Peterhouse Corporate Finance Limited | www.pcorpfin.com |
Charles Goodfellow / Duncan Vasey | +44 (0) 20 7220 9791 |
FTI Consulting | www.fticonsulting.com |
Edward Westropp / Adam Cubbage | +44 (0) 20 3727 1521 |
About Cambria Africa Plc
Cambria Africa Plc, quoted on the AIM market of the London Stock Exchange, is a long term, active investment company, building a portfolio of investments primarily in Southern Africa.
Chief Executive's Review
Introduction
During the Period, revenues and gross profit of the continuing operations of Cambria, being the Payserv and Millchem investments, were US$4.2m (2013: US$4.3m) and US$2.3m (2013: US$2.4m) respectively, representing corresponding decreases of 3% and 1% to the equivalent prior period.
The Company recorded a loss of $2.7m for the six month period ended 28 February 2014, compared to $2.6m loss during the first half of 2013. Cambria's loss per share for the period was 4.1c, compared to a loss of 4.0c per share for the same period last year.
Cambria is actively continuing implementation of its regionalisation strategy, investing in its future at a rapid pace.
However, Zimbabwe, where the bulk of group revenues are still derived, continues to experience significant liquidity shortages resulting in it being ranked among the slowest growing economies in sub-Saharan Africa (Source: IMF). For example, retail sales fell 30% in February 2014 from the previous month, 15 factories in the metals and engineering industries closed during that same month, and consumer prices declined for a third consecutive month in April 2014 (Source: Bloomberg).
Within Cambria, Millchem's sales at certain points during the period under review were down 60% year on year. The fact the Millchem team was able to achieve only a 7% year on year sales decline for the Period is therefore, paradoxically, commendable.
This slowdown in the Zimbabwean economy continues to impact current performance of our investments, and will do so until a broader regional diversification has been achieved, which Cambria is successfully executing.
That being said, following the end of the Period, resulting from our continued investment in scale, scope and regionalisation, the Company started to again deliver year on year growth.
Divisional reviews
Payserv Africa
Payserv provides EDI switching services (Paynet), 'payslip' processing (Autopay), and payroll based microfinance loan processing (Tradanet). It is well-established with all three products in Zimbabwe, and recently commenced operations in Zambia with its Paynet and Autopay products.
(US$ '000) | 2014 | 2013 | Growth |
Revenues | 2,185 | 2,137 | 2% |
Gross profit | 2,025 | 1,918 | 6% |
Gross margin | 93% | 90% | 3% pts |
SG&A | (1,566) | (1,467) | 7% |
EBITDA | 459 | 451 | 2% |
EBITDA margin | 21% | 21% | -% |
Paynet provided Electronic Data Interchange (EDI) services to all 22 banks and building societies in Zimbabwe, as well as to over 1,500 corporates. Paynet processed 8.21m transactions (2013: 7.22m) during the period under review, a 14% increase.
Autopay provided payroll services to 150 customers, processed over 156,000 pay slips (2013: 143,000) during the period under review, a 9% increase.
Tradanet processed approximately 50,000 (2013: 36,000) loans during the period, representing a value of US$63.2m (2013: US$69.5m), a 39% increase and a 9% decrease respectively. At the end of the period the loan book under management stood at US$112.6m (2013: US$103.0m), an increase of 9%.
Despite market conditions in Zimbabwe, Payserv was able to grow gross profit for the period year on year by 6% through, among others, new customer acquisition, as well as the launch of the new eSchedules and PayZIMRA products. It is also in the process of launching PayFT, a joint venture with South African based BankServ.
Paynet has recently established a presence in Zambia, receiving its Zambian National Payments Licence there in December 2013. Since then, it has signed on its first customers in Zambia, including some leading corporates, and commenced the processing of bulk payments. Moreover, Autopay has now also established a presence in Zambia.
Millchem Holdings
Millchem is a value-added chemicals distributor with leading market positions in Zimbabwe, and recently established operations in Zambia and Malawi.
US$ '000 | 2014 | 2013 | Growth |
Revenues | 1,995 | 2,154 | (7)% |
Gross profit | 317 | 438 | (28)% |
Gross margin | 16% | 20% | (4)% pts |
SG&A | (755) | (410) | 84% |
EBITDA | (438) | 28 | n/a% |
EBITDA margin | (22)% | 1% | (23)% pts |
In line with expectations, Millchem was strongly affected by the uncertain business environment during the period in Zimbabwe and saw a year on year decrease in revenues as the economy there stalled.
Despite the fact there were certain points during the period where year on year sales were down 60%, the team at Millchem was able to reduce overall year on year sales losses by adding new customers, products and services, while competitors in the country were struggling. The fact the Millchem team was able to record only a 7% year on year sales decline is therefore, paradoxically, commendable.
During the period Millchem invested significantly in the future, maintaining its focus on its long term growth. Besides adding new products, services and customers in Zimbabwe, it is now fully operational in Zambia and Malawi, has opened up buying offices in South Africa and Europe, and also expanded capabilities at Millchem Holdings level. All these investments were expensed, rather than capitalised, directly impacting EBITDA performance for the Period.
Moreover, following Period end, on 23 May 2014, Cambria announced various new regional distribution agreements for Millchem with leading suppliers such as MEKZ, Centlube (ENI / AGIP lubricants), Sealed Air / Diversey Care and Donau Carbon and, subsequently, on 27 May 2014, Cambria announced the acquisition of Chemicals & Marketing Ltd, a leading Malawi chemicals distributor accelerating Millchem's regional expansion with an immediate leading position in Malawi.
This investment in long term growth is already delivering results, as, despite ongoing liquidity issues in Zimbabwe, Millchem has, since period end, achieved a 25% year on year growth in gross profit.
Central costs
Cambria incurred US$1,183k in central EBITDA costs for the period under review, compared to US$1,200k for the same period last year, a reduction of 1%.
Discontinued operations
The Leopard Rock Hotel Group
The Leopard Rock Hotel continues to be classified by Cambria as held for sale. During the period, the Leopard Rock Hotel Group generated US$1.1m in sales (2013: US$1.2m) and negative US$343k in EBITDA (2013: US$230k).
LonZim Air
Through LonZim Air (BVI) Limited Cambria previously owned three aircraft. Over the years a number of disputes arose in relation to these aircraft and certain associated contracts. Cambria continues to pursue recovery of claims related to these disputes that are estimated to be in excess of US$10m. Cambria incurred US$144k in operating losses for the period under review, largely related to exceptional legal expenses related to the above mentioned claims.
Placement and acquisition
On 19 February 2014 Cambria announced the oversubscribed placing with new and existing institutional and other investors of 32,406,139 new ordinary shares in the Company. The placing price was 7.5 pence per ordinary share being a 9.6% discount to the 30-day volume weighted average market price on 10 February 2014. This placing closed with total raised gross proceeds of £2.43m. Following issue of those shares, the Company had a total of 99,155,162 ordinary shares in issue.
On May 27, 2014, Cambria announced it had executed agreements relating to the purchase of 100% of the outstanding share capital of Chemicals & Marketing Company Limited (C&M), a leading Malawi chemicals distributor, for 5,500,000 ordinary shares in Cambria. The acquisition accelerates Millchem's regional expansion with an immediate leading position in Malawi. The acquisition is subject to certain conditions precedent that have to be met before the acquisition of C&M can be completed, including the passing of a resolution to issue further shares and the Company can therefore not be certain the transaction will complete.
Outlook
Cambria continues to seek the disposal of its remaining non-core assets in order to focus solely on Payserv and Millchem, growing their scale and scope, as well as their regionalisation.
In the coming years, both Millchem and Payserv will continue to expand in additional geographies in a careful and coordinated manner. Moreover, Cambria anticipates growth for both investments will include further smaller acquisitions, which may or may not be made using Cambria shares.
Edzo Wisman
Chief Executive Officer
30 May 2014
Cambria Africa Plc
Interim consolidated income statement
For the six month period ended 28 February 2014
Unaudited 6 months ended 28 February 2014 | *Restate Unaudited 6 months ended 28 February 2013 | ||
US$'000 | US$'000 | ||
Continuing operations | |||
Revenue | 4,180 | 4,292 | |
Cost of sales | (1,838) | (1,942) | |
Gross profit | 2,342 | 2,350 | |
Operating expenses | (3,782) | (3,430) | |
Other income | 4 | 2 | |
Operating loss | (1,436) | (1,078) | |
Finance income | 2 | 160 | |
Finance costs | (637) | (426) | |
Net finance costs | (635) | (266) | |
Loss before tax | (2,071) | (1,344) | |
Income tax expense | (161) | (151) | |
Loss for the period from continuing operations | (2,232) | (1,495) | |
Discontinued operations | |||
Loss for the period from discontinued operations, net of tax | (448) | (1,061) | |
Loss for the period | (2,680) | (2,556) | |
Attributable to: | |||
Owners of the Company | (2,770) | (2,610) | |
Non-controlling interests | 90 | 54 | |
Loss for the period | (2,680) | (2,556) | |
Earnings per share - all operations** | |||
Basic and diluted loss per share (cents) | (4.1c) | (4.0c) | |
Earnings per share - continuing operations | |||
Basic and diluted loss per share (cents) | (3.5c) | (2.4c) |
*Amounts have been restated due to reclassification of certain entities to discontinued operations.
** EPS for all operations in 2013 has been restated to correct an arithmetic error in weighted average shares.
Cambria Africa Plc
Interim consolidated statement of comprehensive income
For the six month period ended 28 February 2014
Unaudited 6 months Ended 28 February 2014 | Unaudited 6 months ended 28 February 2013 | ||
US$'000 | US$'000 | ||
Loss for the period | (2,680) | (2,556) | |
Other comprehensive income | |||
Items that are or may be reclassified to income statement: | |||
Foreign currency translation differences for overseas operations |
(18) |
- | |
Total comprehensive loss for the period | (2,698) | (2,556) | |
Attributable to: | |||
Owners of the Company | (2,788) | (2,610) | |
Non-controlling interests | 90 | 54 | |
Total comprehensive loss for the period | (2,698) | (2,556) |
Cambria Africa Plc
Interim consolidated statement of financial position
As at 28 February 2014
Unaudited 28 February | Unaudited 28 February | Audited 31 August | ||
2014 | 2013 | 2013 | ||
US$'000 | US$'000 | US$'000 | ||
Assets | ||||
Property, plant and equipment | 2,742 | 24,671 | 2,881 | |
Biological assets | - | 86 | - | |
Goodwill | 717 | 717 | 717 | |
Intangible assets | 85 | 1,365 | 179 | |
Long-term receivables | 1,145 | 2,635 | 361 | |
Total non-current assets | 4,689 | 29,474 | 4,138 | |
Inventories | 809 | 1,080 | 925 | |
Financial assets at fair value through profit or loss | 58 | 60 | 58 | |
Trade and other receivables | 2,087 | 2,807 | 814 | |
Cash and cash equivalents | 1,392 | 1,548 | 2,136 | |
Assets held for sale | 16,218 | 316 | 16,164 | |
Total current assets | 20,564 | 5,811 | 20,097 | |
Total assets | 25,253 | 35,285 | 24,235 | |
Equity | ||||
Prepaid share reserve | 3,200 | - | - | |
Issued share capital | 12 | 12 | 12 | |
Share premium account | 78,798 | 78,798 | 78,798 | |
Revaluation reserve | 77 | 3,046 | 77 | |
Share based payment reserve | 86 | 86 | 86 | |
Foreign exchange reserve | (10,659) | (10,624) | (10,641) | |
Non-distributable reserves | 2,241 | 2,128 | 2,241 | |
Retained losses | (62,522) | (49,845) | (59,752) | |
Equity attributable to owners of the Company | 11,233 | 23,601 | 10,821 | |
Non-controlling interests | (2) | (1,789) | (80) | |
Total equity | 11,231 | 21,812 | 10,741 | |
Liabilities | ||||
Loans and borrowings | 6,500 | 4,500 | 6,500 | |
Trade and other payables | 52 | 53 | 53 | |
Provisions | 202 | 415 | 203 | |
Deferred tax liabilities | 553 | 4,182 | 553 | |
Total non-current liabilities | 7,307 | 9,150 | 7,309 | |
Bank overdrafts | 53 | 535 | 398 | |
Current tax liabilities | 268 | 211 | 187 | |
Loans and borrowings | 649 | 948 | 94 | |
Trade and other payables | 1,674 | 2,150 | 1,322 | |
Liabilities held for sale | 4,071 | 479 | 4,184 | |
Total current liabilities | 6,715 | 4,323 | 6,185 | |
Total liabilities | 14,022 | 13,473 | 13,494 | |
Total equity and liabilities | 25,253 | 35,285 | 24,235 |
Cambria Africa Plc
Interim consolidated statement of changes in equity
For the six month period ended 28 February 2014
Attributable to owners of the Company | |||||||||||
Unaudited |
Prepaid Share reserve* | Share Capital | Share premium | Re-valuation reserve | Foreign exchange reserve | Share based payment reserve | Retained earnings | NDR | Total | Non-control- ling interests | Total Equity |
US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | |
Balance at 31 August 2013 | - | 12 | 78,798 | 77 | (10,641) | 86 | (59,752) | 2,241 | 10,821 | (80) | 10,741 |
Loss for the period | - | - | - | - | - | - | (2,770) | - | (2,770) | 90 | (2,680) |
Other comprehensive income | - | - | - | - | (18) | - | - | - | (18) | - | (18) |
Total comprehensive (loss)/ income for the year | - | - | - | - | (18) | - | (2,770) | - | (2,788) | 90 | (2,698) |
Contributions by and distributions to owners of the Company recognised directly in equity | |||||||||||
Dividends paid to minorities | - | - | - | - | - | - | - | - | - | (12) | (12) |
Issue of ordinary shares | 3,200 | - | - | - | - | - | - | - | 3,200 | - | 3,200 |
Total contributions by and distributions to owners of the Company | 3,200 | - | - | - | - | - | - | - | 3,200 | (12) | 3,188 |
Balance at 28 February 2014 | 3,200 | 12 | 78,798 | 77 | (10,659) | 86 | (62,522) | 2,241 | 11,233 | (2) | 11,231 |
Cambria Africa Plc
Interim consolidated statement of changes in equity
For the six month period ended 28 February 2013
Attributable to owners of the Company | |||||||||||
Unaudited |
| Share Capital | Share premium | Re-valuation reserve | Foreign exchange reserve | Share based payment reserve | Retained earnings | NDR | Total | Non-control- ling interests | Total Equity |
US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | ||
Balance at 31 August 2012 | 11 | 77,399 | 3,124 | (10,629) | 355 | (47,312) | 2,128 | 25,076 | (1,785) | 23,291 | |
Loss for the period | - | - | - | - | - | (2,610) | - | (2,610) | 54 | (2,556) | |
Other comprehensive income | - | - | - | - | - | - | - | - | - | - | |
Total comprehensive (loss)/ income for the year | - | - | - | - | - | (2,610) | - | (2,610) | 54 | (2,556) | |
Contributions by and distributions to owners of the Company recognised directly in equity | |||||||||||
Reclassification of reserves | - | - | (78) | - | - | 29 | - | (49) | - | (49) | |
Disposal of entity | - | - | - | 5 | - | 48 | - | 53 | 52 | 105 | |
Dividends paid to minorities | - | - | - | - | - | - | - | - | (110) | (110) | |
Issue of ordinary shares | 1 | 1,399 | - | - | - | - | - | 1,400 | - | 1,400 | |
Share based payment transactions | - | - | - | - | (269) | - | - | (269) | - | (269) | |
Total contributions by and distributions to owners of the Company | 1 | 1,399 | (78) | 5 | (269) | 77 | - | 1,135 | (58) | 1,077 | |
Balance at 28 February 2013 | 12 | 78,798 | 3,046 | (10,624) | 86 | (49,845) | 2,128 | 23,601 | (1,789) | 21,812 | |
Cambria Africa Plc
Interim consolidated statement of cash flows
For the six month period ended 28 February 2014
Unaudited 6 months ended 28 February | Unaudited 6 months ended 28 February | ||
2014 | 2013 | ||
Note | US$'000 | US$'000 | |
Cash used in operations | 3 | (2,234) | (2,196) |
Taxation paid | (80) | (228) | |
Net cash used in operating activities | (2,314) | (2,424) | |
Cash flows from investing activities | |||
Proceeds from disposal of property, plant and equipment | 12 | 11 | |
Purchase of property, plant and equipment | (51) | - | |
Interest received | 2 | 161 | |
Net cash used in investing activities | (37) | 172 | |
Cash flows from financing activities | |||
Dividends paid to non-controlling interests | (12) | (110) | |
Interest paid | (621) | (491) | |
Proceeds from the issue of share capital | 2,300 | 1,400 | |
Loans repaid | (319) | - | |
Proceeds from the drawdown of loans | 775 | 2,335 | |
Net cash from financing activities | 2,123 | 3,134 | |
Net (decrease)/increase in cash and cash equivalents | (228) | 882 | |
Cash and cash equivalents at beginning of period | 1,738 | 131 | |
Foreign exchange movements | (14) | - | |
Cash and cash equivalents at end of period | 1,496 | 1,013 | |
Cash and cash equivalents as above comprise the following: | |||
Cash and cash equivalents | 1,392 | 1,548 | |
Bank overdraft | (53) | (535) | |
Cash in assets held for sale | 157 | - | |
Cash and cash equivalents at end of period | 1,496 | 1,013 |
Cambria Africa Plc
Notes to the interim consolidated financial statements
1. Reporting Entity
Cambria Africa Plc is a public limited company which is listed on the AIM London Stock Exchange and is incorporated in the Isle of Man under the Isle of Man Companies Act 2006.
2. Basis of preparation
The condensed consolidated interim financial information for the six months ended 28 February 2014, has been prepared in accordance with the accounting policies that are expected to be adopted in the Group's full financial statements for the year ending 31 August 2014 and are not expected to be significantly different to those set out in the Group's audited financial statements for the year ended 31 August 2013.
The financial information for the half years ended 28 February 2014 and 28 February 2013 is neither audited nor reviewed. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the period ended 31 August 2013, which are available upon request from the Company's registered office at Appleby Trust (Isle of Man) Limited, 33-37 Athol Street, Douglas, Isle of Man, IM1 1LB or at www.cambriaafrica.com.
After making enquiries, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the half-yearly condensed consolidated financial statements.
3. Note to the cash flow statement
Unaudited 6 months ended 28 February | Unaudited 6 months ended 28 February | ||
2014 | 2013 | ||
US$'000 | US$'000 | ||
Loss for the period | (2,680) | (2,556) | |
Adjusted for: | |||
Amortisation of intangible assets | 132 | 310 | |
Depreciation of property, plant and equipment | 142 | 516 | |
Loss on the sale of property, plant and equipment | 9 | (11) | |
Valuation adjustments to inventories, receivables and other assets | 21 | (21) | |
Finance income | (2) | (161) | |
Finance expense | 660 | 491 | |
Share based payment charge | - | (270) | |
Increase/(decrease) in provisions | 87 | 316 | |
Foreign exchange | (7) | 58 | |
Other non-cash movements | - | 141 | |
Income tax charge | 161 | - | |
Operating cash flows before movements in working capital | (1,477) | (1,187) | |
Decrease/(increase) in inventories | 116 | (149) | |
Decrease/(increase) in trade and other receivables | (1,118) | (182) | |
Increase/(decrease) in trade and other payables | 245 | (678) | |
Net increase/(decrease) in cash and cash equivalents | (2,234) | (2,196) |
4. Events after the period end
On 19 February Cambria announced the successful placing with new and existing institutional and other investors of 32,406,139 new ordinary shares in the Company. The placing price was 7.5 pence per ordinary share being a 9.6% discount to the 30-day volume weighted average market price on 10 February 2014. The placing closed in two tranches after the period end as follows.
On 3 March 2014, Cambria announced that 28,000,000 new ordinary shares of 0.01 pence in the Company, being the first close of the placing shares, were issued. Issue of these first close placing shares raised gross proceeds of £2.10m. Following issue of those shares, the Company had a total of 94,749,023 ordinary shares in issue.
On 11 March Cambria announced the second close of the above placing. 4,406,139 new ordinary shares of 0.01 pence in the Company were issued. Issue of the second close placing shares raised gross proceeds of £0.33m. Following issue of the second close placing shares, the Company has 99,155,162 ordinary shares in issue.
The placing provides working capital to support the Company's expansion strategy for Millchem and Payserv.
On May 27, 2014, Cambria announced it had executed agreements relating to the purchase of 100% of the outstanding share capital of Chemicals & Marketing Company Limited (C&M), a leading Malawi chemicals distributor, for 5,500,000 ordinary shares in Cambria. The acquisition accelerates Millchem's regional expansion with an immediate leading position in Malawi. The acquisition is subject to certain conditions precedent that have to be met before the acquisition of C&M can be completed, including the passing of a resolution to issue further shares and the Company can therefore not be certain the transaction will complete.