Zccm Inv.hds.b Regulatory News (ZCC)

3 Jul 2006 07:00

ZCCM Invs.Hldgs PLC30 June 2006 ZCCM Investments Holdings Plc Incorporated in the Republic of Zambia Directors' Quarterly Summary incorporating Financial Results for the quarter ended 31 March 2006 DIRECTORS Mr G K Chibuye (Non-Executive) Chairman of the Board Dr S Musokotwane Director Mr L Nkhata Director Mr G P Mukala Director Dr D H Kalyalya Director Mr E Mutale Director Mrs L I Ng'andwe Director Management Committee General Manager Vacant Company SecretaryMr W S Musama Acting Chairman Technical Investments Manager Mr J M D Patterson Finance and Investments Manager Mr Z Zekko Legal Investments Manager Mr J K Kaite Technical Investments Officer Mr W K Katoto Environmental Manager Mr J Makumba Financial AnalystMr K K Mulaisho Committee Secretary ZCCM INVESTMENTS HOLDINGS PLCand its subsidiary companies DIRECTORS QUARTERLY SUMMARY The Shareholding of Asset Holding Company - Mining Municipal Services Limited (AHC-MMS), a wholly owned subsidiary of the company, was finally transferred to the respective district councils on the Copperbelt on 19 January 2006. The Group achieved a turnover of K14,394 million during the quarter ended 31 March 2006 compared to K42,615 million at 31 March 2005. The steep reduction in turnover was due to the non inclusion of AHC-MMS data. The Group operational expenditure was K26,945 million compared to K46,951 million last year. A net operating loss of K6,102 million was recorded in the quarter, compared to last year's profit of K15,336 million for the same quarter. The loss reported was mainly on account of the effects of appreciation of the Kwacha on Lime sales from Ndola Lime Company Limited coupled with reduced sales volumes (a reduction of 14% in sales). In addition, there was a reduction in dividend receipts from Copperbelt Energy Corporation plc and cobalt price participation fees from Chambishi Metals plc. During the quarter, the Company committed to invest US$30 million of equity in the Lumwana Copper Project, in the North-Western Province of Zambia. The investment will entitle the Company to a Directorship on the Board of Equinox Copper Ventures Limited, a wholly owned subsidiary of Equinox Minerals Limited. Subsequent to the quarter end, Dr S Musokotwane resigned from the Board and was replaced by Mr C Evans Chibiliti, Secretary to the Treasury with effect from 10 April 2006. By order of the Board W S Musama Company Secretary ZCCM INVESTMENTS HOLDINGS PLCGROUP PROFIT/(LOSS) ACCOUNT FOR THE QUARTER ENDED 31 MARCH 2006 QUARTER ENDED QUARTER ENDED 31 March 2006 31 March 2005 notes K' million K' million Turnover 1 14,394 42,615Cost of Turnover 2 (26,945) (46,951) Operating profit/(loss) (12,551) (4,336) Other income 1,414 778Exchange gain/(loss) 3,878 17,362Environmental expenses - (2,409)Impairment of Investments - -Interest charge (334) -Interest income 867 249Dividend receivable 232 4,662Royalty on minerals (292) (401)Profit/(loss) before taxation (6,786) 15,905 Income tax 684 (569) Retained profit/(loss) (6,102) 15,336 Notes: 1 & 2 Represents revenue /sales and administrative costs/cost of sales for the Company and its subsidiaries. 3 The exchange rates applied are : 31 March 2006 US$ = K3,314 31 March 2005 US$ = K4,709 ZCCM INVESTMENTS HOLDINGS PLC GROUP BALANCE SHEET As at 31 March 2006 As at 31 March 2005 K' million K' millionCurrent assetsBank & cash 70,786 64,780Inventories 31,898 17,346Other debtors 326,560 348,937 Total current assets 429,244 431,063 Current liabilities Creditors (40,670) (57,967)Provisions (311,228) (317,653)Taxation (1,241) (8,440)Bank overdraft (5,081) 0 Total current liabilities (358,220) (384,060) Net current assets/(liabilities) 71,024 47,003 Long term receivables 37,553 154,136Investments 418,379 368,662Fixed assets 13,711 104,869Long term borrowings (907,157) (1,336,635)Grants/others 0 (15,168)Subordinated loan (865,445) (865,445) Total Net Liabilities (1,231,935) (1,542,578) Financed by:Share capital 897 909Grant reserves 3,038Reserves (1,235,870) (1,543,487) Total shareholders' funds (1,231,935) (1,542,578) ZCCM INVESTMENTS HOLDINGS PLC GROUP CASH FLOW STATEMENT Quarter ended Quarter ended 31 March 2006 31 March 2005 K' million K' millionOperating activities Cash received from customers 500 12,133 Cash paid to suppliers and employees (1,391) (23,648) Net cash generated from operating activities (891) (11,515) Interest received and other operating income 867 4,177Interest paid (288) (523)Taxation paid (799) (629) (220) 3,025 Net cashflow from operating activities (1,110) (8,490) Investing activitiesPurchase of fixed assets (513) (19,399)Proceeds from sale of fixed assets 0 -Proceeds from sale of operating units 446 - (67) (19,399) Financing activitiesLong term borrowings received 0 9,305Long term borrowing paid (547) (936)Grants 920 4,756 Net cashflow from investing activities 373 13,125Dividend received 232 4,662 605 17,787 Net cash inflow/(outflow) for period (573) (10,102) Cash balances at start of periodCash and bank balances 66,278 74,882 66,278 74,882 Cash balances at end of periodCash and bank balances 70,786 64,780Bank overdrafts (5,081) - 65,705 64,780 CORPORATE LOCATIONS Registered Office UK Registrars Mukuba Pension House CAPITA IRG PlcFirst Floor Bourne House5309 Dedan Kimathi Road 34 Beckenham RoadP O Box 30048 BeckenhamLUSAKA Kent BR3 4TULusaka, 10101, Zambia England Tel Numbers 260(01)221023 Tel No. 020 8639 2000 220351 Fax No. 020 8658 3430 220654 228833 Depository for American Shares Fax Numbers 260(01)221057 JP Morgan Chase & Co 220449 60 Wall Street 220727 New York, NY 10260-0060 United States of America E-mail:corporate@zccm-ih.com.zm Tel No. 001 212 648 3207Kitwe Office Fax No. 001 212 648 5104/5 Investments House Kantanta Street PO Box 20172 Kitwe Tel Numbers 260(02)245018 245054 245142 245126 245320 Fax Numbers 260(02)222638 222639 222640 E-mail:corporate@zccm-ih.com.zm This information is provided by RNS The company news service from the London Stock Exchange