Zccm Inv.hds.b Regulatory News (ZCC)

28 Sep 2006 07:00

ZCCM Invs.Hldgs PLC27 September 2006 ZCCM Investments Holdings Plc Incorporated in the Republic of Zambia Directors' Quarterly Summary incorporating Financial Results for the quarter ended 30 June 2006 DIRECTORS Mr G K Chibuye (Non-Executive)Chairman of the Board Mr C Evans ChibilitiDirector Mr L NkhataDirector Mr G P MukalaDirector Dr D H KalyalyaDirector Mr E MutaleDirector Mrs L I Ng'andweDirector Management Committee General ManagerVacant Company SecretaryMr W S Musama Acting Chairman Technical Investments ManagerMr J M D Patterson Finance and Investments ManagerMr Z Zekko Legal Investments ManagerMr J K Kaite Technical Investments OfficerMr W K Katoto Environmental ManagerMr J Makumba Financial AnalystMr K K Mulaisho Committee Secretary ZCCM INVESTMENTS HOLDINGS Plcand its subsidiary companies DIRECTORS' QUARTERLY SUMMARY The Group achieved a turnover of K22,165 million during the quarter ended 30June 2006 compared to K41,465 million at June 2005. The apparent reduction inturnover over the two quarters was as a result of the effect of the appreciationof the kwacha on the turnover of Ndola Lime Limited (a 100% subsidiary) which isdollar-denominated. In addition, AHC Mining Municipal Services Limited (AHCMMS) a wholly owned subsidiary of the company and a discontinued operation, wasnot consolidated into the group. The Group operational expenditure was K25,146million compared to K39,473 million last year. A net retained loss of K51,088 million was recorded in the quarter, compared tolast year's loss of K24,615 million. The loss reported was mainly on account ofthe exchange movements. During the quarter, investments increased by K 52,934 million (US$15 million),being the second and final investment installment into the Lumwana Copper Minethrough a purchase of some 7% equity stake in Equinox Minerals Limited The transfer of AHC MMS, during the last quarter has had a significant impact onthe Group's current consolidated financial figures. Its shareholding wasfinally transferred to the respective district councils on the Copperbelt on 19January 2006. Consequently, any comparison with last year's figures needs totake this into account. Subsequent to the quarter end, Dr B Nsemukila, Permanent Secretary, Ministry ofEnergy and Water Development and Mr O M Munyenyemba, General Secretary of theMineworkers' Union of Zambia, were appointed as Directors of the Companyreplacing Messrs G P Mukala and E Mutale respectively, who retired. By order of the Board W S Musama Company Secretary Lusaka26th September 2006 ZCCM INVESTMENTS HOLDINGS PLCGROUP PROFIT/( LOSS) ACCOUNT FOR THE QUARTER ENDED 30 JUNE 2006 QUARTER ENDED QUARTER ENDED 30 June 2006 30 June 2005 notes K' million K' million ------------ ------------ Turnover 2 22,165 41,465Cost of Turnover 3 (25,146) (39,473) Operating profit/ (2,980) 1,992(loss) Other income 2,579 4,121Exchange gain/(loss) (46,035) 5,733 Environmental (3,188) (9,882)expensesInterest charge (1,477) (142)Interest income 1,824 1,645Dividend receivable 853 2,631Royalty on minerals (443) (471)Exceptional Item 4 (27,760)Profit/(loss) before taxation (48,867) (22,133) Income tax (2,221) (2,482) Retained profit/(loss) (51,088) (24,615) Notes: 1 The financial statements to 30 June 2005 include AHC MMS, a discontinued operation, while the figures for 30 June 2006 relate only to ZCCM-IH and Ndola Lime 2 & 3 Represents revenue /sales and administrative costs/cost of sales for the Company and its subsidiaries. 4 Exceptional item relates to Mukuba Pensions as a result of an actuarial valuation report conducted on behalf of the participating employees in the Mukuba Pension Scheme 5 The exchange rates applied are : 30 June 2006 US$ = K3,582 30 June 2005 US$ = K4,698 ZCCM INVESTMENTS HOLDINGS PLC GROUP BALANCE SHEET As at 30 June As at 30 June 2006 2005 K' million K' millionCurrent assets Bank & cash 83,287 79,610Inventories 34,552 22,547Other debtors 305,132 309,995 --------------- --------------- Total current assets 422,971 412,152 Current liabilities Creditors (48,158) (50,485)Provisions (309,931) (320,776)Taxation (2,529) (4,540)Bank overdraft (4,426) 0 --------------- ---------------Total current liabilities (365,044) (375,801) Net current assets 57,927 36,351 Long term receivables 16,430 65,464Investments 472,418 368,662Fixed assets 13,246 110,133Long term borrowings (977,658) (1,266,824)Grants/others 0 (28,337)Subordinated loan (865,445) (865,445) --------------- ---------------Total Net Liabilities (1,283,082) (1,579,996) --------------- --------------- Financed by: Share capital 893 893Grant reserves 3,038 0Reserves (1,287,012) -1,580,889 --------------- ---------------Total shareholders' funds (1,283,082) (1,579,996) --------------- --------------- ZCCM INVESTMENTS HOLDINGS PLCGROUP CASH FLOW STATEMENT Quarter ended Quarter ended 30 JUNE '06 30 JUNE '05 K' million K' millionOperating activities Cash received from customers 23,972 9,391Cash paid to suppliers and employees (11,258) (7,288) ---------- ------------ Net cash generated from operating 12,714 2,103activities Interest received and other operating 4,142 6,932incomeInterest paid (497) (220)Taxation paid (1,030) (2,248) ---------- ------------ 2,615 4,464 Net cashflow from operating activities 15,329 6,567 Investing activitiesPurchase of investment and fixed assets (54,203) (8,721)Proceeds from sale of fixed assets 256 0 ---------- ------------ (53,947) (8,721)Financing activitiesLong term borrowings received 3,666 8,563Long term borrowing paid 846 (502)Long term receivables collected 48,000 0Short term borrowings paid (973) 0Grants 4 8,923 ---------- ------------ Net cashflow from investing activities 51,543 16,984Dividend received 232 0 ---------- ------------ 51,775 16,984 Net cash inflow for period 13,156 14,830 Cash balances at start of periodCash and bank balances 70,786 64,780Bank overdrafts (5,081) 0 ---------- ------------ 65,705 64,780Cash balances at end of periodCash and bank balances 83,287 79,610Bank overdrafts (4,426) 0 ---------- ------------ 78,861 79,610 CORPORATE LOCATIONS Registered Office UK Registrars Mukuba Pension House CAPITA IRG PlcFirst Floor Bourne House5309 Dedan Kimathi Road 34 Beckenham Road P O Box 30048 Beckenham Lusaka, 10101, Zambia Kent BR3 4TU England Tel Numbers 260 (01) 221023 220351 220654 Tel No. 020 8639 2000 228833 Fax Numbers 260 (01) 221057 Fax No. 020 8658 3430 220449 220727 E-mail:corporate@zccm-ih.com.zm Depository for American Shares JP Morgan Chase & Co 60 Wall Street New York, NY 10260-0060 United States of America Tel No. 001 212 648 3207 Fax No. 001 212 648 5104/5 Kitwe Office Investments HouseKantanta StreetP O Box 20172Kitwe 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