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31 May 2018 10:56
SENS ANNOUNCEMENT
(the "Notice" or "Announcement")
ISSUER
ZCCM INVESTMENTS HOLDINGS PLC ("ZCCM-IH")
[Incorporated in the Republic of Zambia]
Company registration number: 119540000771
Share Code: ZCCM-IH
ISIN: ZM0000000037
Authorised by: Chabby Chabala - Company Secretary
SPONSOR
STOCKBROKERS ZAMBIA LIMITED
[Member of the Lusaka Securities Exchange]
[Regulated and licensed by the Securities and Exchange Commission of Zambia]
Contact Number: +260-211-232456
Website: www.sbz.com.zm
APPROVAL
The captioned Notice or Announcement has been approved by:
i. the Lusaka Securities Exchange
ii. the Securities and Exchange Commission
iii. Stockbrokers Zambia Limited
RISK WARNING
The Notice or Announcement contained herein contains information that may be of a price sensitive nature.
Investors are advised to seek the advice of their investment advisor, stockbroker, or any professional duly licensed by the Securities and Exchange Commission of Zambia to provide securities advice.
ISSUED: 31 May 2018
ZCCM INVESTMENTS HOLDINGS PLC
Incorporated in the Republic of Zambia
Company Registration number: 119540000771
["ZCCM-IH" or "the Company"]
Share Code: ZCCM-IH
ISIN: ZM0000000037
Authorised by: Chabby Chabala - Company Secretary
CONSOLIDATED ABRIDGED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
In accordance with the requirements of the Securities Act No. 41 of 2016 and Lusaka Securities Exchange Listings Rules, ZCCM-IH Plc announces its audited annual financial statements for the year ended 31 March 2017.
ABRIDGED GROUP STATEMENT OF COMPREHENSIVE INCOME YEAR ENDED 31 MARCH 2017 | ||||
Audited | Audited | |||
2017 | 2016 | |||
ZMW'000 | ZMW'000 | |||
Revenue |
95,345 |
198,661 | ||
Gross profit |
(14,516) |
18,293 | ||
Operating profit/(loss) | 847,866 | (857,921) | ||
Net finance income | 585,646 | 203,247 | ||
Share of (loss)/profit of equity accounted investees | (189,233) | (2,210,199) | ||
Loss before tax | 1,244,279 | (2,864,873) | ||
Income tax credit/(expense) | (515,445) | (47,356) | ||
Loss for the period | 728,834 | (2,912,229) | ||
Items that will never be reclassified to profit or loss | ||||
Revaluation of PPE | - | 16,748 | ||
Deferred tax on revaluation | 786 | (4,733) | ||
Actuarial (loss)/gain on defined benefit pension plans | (465) | 983 | ||
Deferred tax on defined benefit actuarial loss | 163 | (344) | ||
484 |
12,654 | |||
Items that are or maybe reclassified to profit or loss | ||||
Foreign currency translation differences-equity-accounted investees | (1,122,104) | 4,122,445 | ||
Equity-accounted investees- share of OCI |
80,471 |
(266,601) | ||
Other comprehensive income for the year net of tax |
(1,041,149) |
3,868,498 | ||
Total comprehensive income for the year |
(312,315) |
956,269 | ||
Earnings per share (K) | 4.53 | (18.11) | ||
Basic and diluted earnings per share (K) | 4.53 | (18.11) | ||
ABRIDGED GROUP STATEMENT OF FINANCIAL POSTION | Audited | Audited | ||
AS AT 31 MARCH | 2017 | 2016 | ||
ASSETS | ZMW'000 | ZMW'000 | ||
Property, plant and equipment | 144,842 | 1,030,284 | ||
Intangible assets | 396 | 673 | ||
Investment property | 61,157 | 100,778 | ||
Investments in associates | 6,828,313 | 6,852,955 | ||
Financial assets at fair value through profit or loss | 489,242 | 238,247 | ||
Inventories | 44,124 | 35,349 | ||
Trade and other receivables | 918,892 | 449,660 | ||
Deferred tax assets | 415,548 | 698,304 | ||
Held-to-maturity investment securities | 497,172 | 355,172 | ||
Cash and cash equivalents | 178,931 | 35,850 | ||
Total Assets | 9,578,617 | 9,797,272 | ||
EQUITY AND LIABILITIES | ||||
Capital and Reserves | 8,013,913 | 8,326,228 | ||
Borrowings | 192,062 | 292,644 | ||
Deferred tax liabilities | 425,529 | 211,786 | ||
Trade and other payables | 375,954 | 286,271 | ||
other Provisions | 143,548 | 139,197 | ||
Retirement benefits | 49,567 | 44,794 | ||
Provisions for environmental rehabilitation | 145,610 | 263,491 | ||
Current tax liabilities | 232,434 | 232,542 | ||
Bank overdraft | - | 319 | ||
9,578,617 | 9,797,272 |
ABRIDGED GROUP STATEMENT OF CASH FLOW | Audited | Audited | ||
2017 | 2016 | |||
ZMW'000 | ZMW'000 | |||
Net cash flow from operating activities | 311,143 | 131,638 | ||
Net cash used in investing activities | (105,079) | (75,329) | ||
Net cash outflow on financing | (63,508) | (64,204) | ||
(Decrease)/increase in cash and cash equivalents | 142,556 | (7,895) | ||
Effect of movement in exchange rates on cash held | 844 | (356) | ||
Cash and cash equivalents at the beginning of the year | 35,531 | 43,782 | ||
Cash and cash equivalents at the end of the year | 178,931 | 35,531 |
STATEMENT OF CHANGES IN EQUITY | ||||||
FOR THE YEAR ENDED 31 MARCH 2017 | Share capital | Share premium | Revaluation reserve | Translation reserve | Retained earnings | Total |
Balance at 1 April 2015 | 1,608 | 2,089,343 |
13,724 |
2,207,752 |
3,057,532 |
7,369,959 |
Total comprehensive income | ||||||
Loss for the year | - | - | - | - |
(2,912,229) | (2,912,229) |
Other comprehensive income: | - | |||||
Revaluation surplus on PPE |
16,748 | 16,748 | ||||
Deferred tax on revaluation reserve |
(4,733) |
(4,733) | ||||
Currency translation - equity accounted investees |
- | - |
- |
4,122,445 |
- |
4,122,445 |
Amortisation of revaluation surplus |
- | - |
(941) | - | 941 |
- |
Actuarial loss on defined benefit |
- | - |
- |
- |
983 |
983 |
Share of associates' OCI |
- | - |
235,217 |
(501,818) |
- |
(266,601) |
Deferred tax on defined benefit actuarial loss |
- | - |
- |
- |
(344) | (344) |
Total comprehensive income | - | - | 246,291 | 3,620,627 | (2,910,649) | 956,269 |
Balance at 31 March 2016 | 1,608 | 2,089,343 |
260,015 |
5,828,379 |
146,883 |
8,326,228 |
Balance at 1 April 2016 | 1,608 | 2,089,343 |
260,015 |
5,828,379 |
146,883 |
8,326,228 |
Total comprehensive income | ||||||
Profit for the year | - | - | - | - |
728,834 |
728,834 |
Other comprehensive income: | ||||||
Deferred tax on revaluation reserve |
- | - |
786 |
- |
- |
786 |
Currency translation - equity accounted investees | - | - |
(1,122,104) |
- |
(1,122,104) | |
Amortisation of revaluation surplus | - | - |
(15,138) |
- |
15,138 |
- |
Actuarial loss on defined benefit | - | - |
(465) |
(465) | ||
Share of associates' OCI |
- | - |
106 |
80,365 |
- |
80,471 |
Deferred tax on defined benefit actuarial loss | - | - |
- |
- |
163 |
163 |
Total comprehensive income | - | - | (14,246) | (1,041,739) | 743,670 | (312,315) |
Balance at 31 March 2017 | 1,608 | 2,089,343 |
245,769 |
4,786,640 |
890,553 |
8,013,913 |
Commentary on financial results and performance
· The Group's performance improved during the year owing to increase in copper production for most major mining companies. The increased production benefited from stability in energy supply and improvement in copper prices on the world market in the last quarter of 2016 and the first quarter of 2017. Copper prices on the London Metal Exchange (LME) increased from US$4,848/ton at 31 March 2016 to US$5,858/ton at 31 March 2017.
· The Group recorded an operating profit of K848 million (2016 Loss: K858 million), largely attributable to the recovery of K1, 923 million impairment from investee companies whose performance improved during the year.
· The Group's share of losses from equity accounted investee companies significantly reduced by 91% from K2, 210 million in 2016 to K189 million in 2017 owing to investee companies improved performance.
· The Profit after tax was K729 million (2016: Loss K2,912 million)
· Total assets marginally reduced by 2% from K9, 797 million to K9, 579 million largely on account of impairment of Ndola Lime Company Limited (NLC) plant (the 100% subsidiary of ZCCM-IH). As a result of a continuing loss making position and operational challenges experienced by NLC, assets amounting to K861 million were impaired during the year.
· During the year, ZCCM-IH increased its equity shareholding in Investrust Bank Plc (Investrust) from10.6% to 45.4% through the rights offer and to 71% (subsequent to the year under review through of a mandatory offer to Investrust's minority shareholders).
· Subsequent to the period under review, ZCCM-IH's subsidiary Mawe Exploration and Technical Services Limited which was scheduled for dissolution in prior year was formally in dissolved in April 2017.
Outlook
Copper prices are expected to increase steadily premised on increased demand from high copper consumer countries. ZCCM-IH's performance is expected to improve as a result of the increase in copper prices which drive the performance of the mining portfolio. Furthermore, as a result of good rains experienced during the 2016/17 season, the generation capacity of hydroelectricity is expected to improve thereby stabilising energy supply.
In response to the positive outlook, ZCCM-IH will implement its new Strategic Plan hinged on expansion of its investment in various sectors of the economy.
Proposed Dividend
The Directors resolved to recommend that a final dividend of K0.84 per share be declared for the year ended 31 March 2017.
By Order of the Board
Chabby Chabala
Company Secretary
1 June 2018
First Issued in Lusaka, Zambia on Thursday, 31st May 2018
T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia | |
First Issued on Thursday, 31st May 2018 | |
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