Zccm Inv.hds.b Regulatory News (ZCC)

2 Apr 2007 07:00

ZCCM Invs.Hldgs PLC31 March 2007 ZCCM INVESTMENTS HOLDINGS PLC _____________________________________________________________________________ Directors' Half Yearly Summary incorporating Financial Results for the period ended 31 December 2006_____________________________________________________________________________ DIRECTORS Mr G K Chibuye (Non-Executive) Chairman of the Board Mr C Evans Chibiliti Director Mr L Nkhata Director Dr B Nsemukila Director Dr D H Kalyalya Director Mr O B Munyenyembe Director Mrs L I Ng'andwe Director MANAGEMENT COMMITTEE Chief Executive Officer Chairman Mr J M Chikolwa Company Secretary Mr W S Musama 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 Analyst Mr K K Mulaisho Committee Secretary ZCCM INVESTMENTS HOLDINGS Plcand its subsidiaries company DIRECTORS' HALF YEARLY SUMMARYFor the period ended 31st December 2006 The accompanying unaudited consolidated interim financial statements are for thesix month period to 31 December 2006. The financial results for AHC MiningMunicipal Services Limited (AHC-MMS), a discontinued operation, have not beenincluded in the consolidation for the period to 31 December 2006; the effect ofthe discontinued operations have been highlighted in the Group Profit and Lossaccount. The ZCCM-IH Group achieved a turnover of K75,415 million during the six monthperiod ended 31 December 2006 compared to K81,405 million for the six months to31 December 2005. The group recorded operational expenditure of K68,233 duringthe period under review compared to K71,602 million for the corresponding periodlast year. The results for the period, excluding the discontinued operation, are furtheranalysed as follows: There was an increase in the groups turnover, from K45,241 million for theperiod to 31 December 2005 to K75,415 million for the period to 31 December 2006mainly as a result of dividends receivable of K13,267 million (K3,777 millionfor the six month to December 2005) price participation income of K12,089million (of which none was earned in the six months to 31st December 2005) andlime sales by Ndola Lime Limited which increased from K37,199 million for theperiod to 31st December 2005 to K47,091 million for the period to 31 December2006. In addition to product price increases, Ndola Lime experienced a 16%increase in lime production, from the comparable six monthly period. The increase in the cost of turnover resulting in a negative variance of K24,928million over the 2005 corresponding period was largely attributed to increasedoperating costs at Ndola Lime Company, specifically relating to an increase inthe quantity of Heavy Fuel Oil (HFO) consumed following exclusive use of therotary kiln during the period from September to December 2006. As a result of the above, an operating profit of K7,182 million was recorded inthe period under review compared to a profit of K1,936 million in the period to31 December 2005. The retained loss of K171,581 million (compared to K218,591 million for theperiod to December 2005) was mainly on account of exchange losses arising fromthe translation of our foreign currency denominated liabilities. By Order of the Board W S Musama Company Secretary Lusaka 21 March 2007 ZCCM INVESTMENTS HOLDINGS PLC GROUP PROFIT/( LOSS) ACCOUNT FOR THE SIX MONTHS ENDED 31 DECEMBER 2006 SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS ENDED ENDED ENDED ENDED 31 December 31 December 31 December 31December 2006 2005 2005 2005 Consolidated Continuing Discontinuing Consolidated operation operation --- notes K' million K' million K' million K' million ------------ ------------ ------------ ------------ Turnover 1 75,415 45,241 36,164 81,405Cost of turnover 2 (68,233) (43,305) (28,297) (71,602) Operating profit/(loss) 7,182 1,936 7,867 9,803Exchange (loss)/gain (166,008) 215,670 0 215,670Environmental expenses (8,522) (8,263) 0 (8,263)Interest charge (3,990) (530) (212) (742)Interest income 2,198 4,450 0 4,450Royalty on minerals (950) (739) 0 (739)Profit/(loss) before taxation (170,090) 212,524 7,655 220,179 Income tax (1,491) (1,588) 0 (1,588) Retained profit/(loss) (171,581) 210,936 7,655 218,591 Notes: 1 & 2 Represents Revenue /Sales and administrative costs/cost of sales for the Company and its subsidiary 3 The exchange rates applied are : 31 Dec 2006 US$ = K4415 31 Dec 2005 US$ = K3538 The discontinued operation relates to AHC Minning Municipal Services Limited (AHC-MMS) ZCCM INVESTMENTS HOLDINGS PLC GROUP BALANCE SHEET As at 31 As at 31 December 2006 December 2005 K' million K' million Current assets Bank & cash 74,640 67,254Inventories 35,357 26,451Other debtors 359,573 379,906 ------------------ ------------------ Total current assets 469,569 473,611 Current liabilities Creditors (57,101) (44,094)Provisions (306,946) (330,432)Taxation (467) (3,154)Bank overdraft (1,016) 0 ------------------ ------------------Total current liabilities (365,529) (377,680) Net Current Assets 104,040 95,931 Long term receivables 20,285 47,180Investments 479,368 368,662Fixed assets 14,456 134,464Long term borrowings (1,214,798) (999,257)Grants/others 0 0Subordinated loan (865,445) (865,445) ------------------ ------------------Total Net Liabilities (1,462,094) (1,218,465) ------------------ ------------------ Financed by: Share capital 893 913Reserves (1,473,018) (1,222,416)Grant reserves 10,031 3,038 ------------------ ------------------Total shareholders' funds (1,462,094) (1,218,465) ------------------ ------------------ ZCCM INVESTMENTS HOLDINGS PLCGROUP CASH FLOW STATEMENT six months to six months to 31 Dec 2006 31 Dec 2005 K' million K' millionOperating activities Cash received from customers 7,691 47,322 Cash paid to suppliers and employees (27,193) (73,792) ---------- ----------Net cash generated from operating activities (19,502) (26,470) Other operating income 8,966 -Interest received on investment activities 2,198 9,086Interest paid on borrowing (4,734) (800)Taxation paid (2,729) (2,692) ---------- ---------- 3,701 5,594 Net cashflow from operating activities (15,801) (20,876) Investing activitiesPurchase of investments and fixed assets (11,128) (25,290)Proceeds from sale of fixed assets 352 - ---------- ---------- (10,776) (25,290)Financing activitiesLong term borrowings received 6,867 -Long term borrowing paid - (918)Grants 2,182 35,530 ---------- ---------- Net cashflow from investing activities 9,049 34,612Dividend received 12,175 854 ---------- ---------- 21,224 35,466 Net cash inflow/(outflow) for period (5,353) (10,700) Cash balances at start of periodCash and bank balances 83,403 77,954Bank overdrafts (4,426) - ---------- ---------- 78,977 77,954Cash balances at end of periodCash and bank balances 74,640 67,254Bank overdrafts (1,016) - ---------- ---------- 73,624 67,254 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. 0208639 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 AmericaE-mail:corporate@zccm-ih.com.zm Tel No. 001 212 648 3207Kitwe Office Fax No. 001 212 648 5104/5 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