Last checked at 4 Dec 2018 07:00
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
[Founder 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 ("LuSE")
ii. the Securities and Exchange Commission ("SEC")
iii. Stockbrokers Zambia Limited ("SBZ")
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: 30 November 2018
ZCCM INVESTMENTS HOLDINGS PLC
[Incorporated in the Republic of Zambia]
Company registration number: 771
Share Code: ZCCM-IH
ISIN: ZM0000000037
["ZCCM-IH" or "the Company"]
PROVISIONAL ABRIDGED FINACIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018
In accordance with the requirements of the Securities Act No. 41 of 2016 and the Listings Rules of the Lusaka Securities Exchange, ZCCM Investments Holdings Plc ("ZCCM-IH Plc") announces its unaudited annual financial statements for the year ended 31 March 2018.
PROVISIONAL ABRIDGED GROUP STATEMENT OF COMPREHENSIVE INCOME YEAR ENDED 31 MARCH 2018 | ||||
|
| Unaudited |
| Audited |
|
| 2018 |
| 2017 |
|
| ZMW'000 |
| ZMW'000 |
Revenue |
|
60,982 |
|
95,345 |
Gross profit |
|
(17,487) |
|
(14,516) |
Operating (loss)/profit |
| (130,135) |
| 847,866 |
Net finance income |
| 339,502 |
| 585,646 |
Share of profit/(loss) of equity accounted investees |
|
689,207 |
| (189,233) |
Loss before tax |
| 898,574 |
| 1,244,279 |
Income tax credit/(expense) |
| 77,663 |
| (515,445) |
Profit from continuing operations |
| 976,237 |
| 728,834 |
|
|
|
|
|
Loss from discontinued operations |
| (1,610) |
| - |
|
|
|
|
|
Profit for the year |
| 974,627 |
| 728,834 |
|
|
|
|
|
Items that will never be reclassified to profit or loss |
|
|
|
|
Deferred tax on revaluation |
|
1,944 |
| 786 |
Actuarial (loss)/gain on defined benefit pension plans |
| 1,959 |
| (465) |
Deferred tax on defined benefit actuarial loss |
| (686) |
|
163 |
|
|
3,217 |
|
484 |
Items that are or maybe reclassified to profit or loss |
|
|
|
|
Foreign currency translation differences-equity-accounted investees |
| 272,847 |
| (1,122,104) |
Equity-accounted investees- share of OCI |
|
43,542 |
|
80,471 |
|
|
316,389 |
|
(1,041,633) |
Other comprehensive income for the year net of tax |
|
319,606 |
|
(1,041,149) |
Total comprehensive income for the year |
|
1,294,233 |
|
(312,315) |
|
|
|
|
|
Earnings per share (K) |
| 6.06 |
| 4.53 |
Basic and diluted earnings per share (K) |
| 6.06 |
| 4.53 |
PROVISIONAL ABRIDGED GROUP STATEMENT OF FINANCIAL POSTION AS AT 31 MARCH 2018
| ||||
|
| Unaudited |
| Audited |
|
| 2018 |
| 2017 |
ASSETS |
| ZMW'000 |
| ZMW'000 |
Property, plant and equipment |
| 143,164 |
| 144,842 |
Intangible assets |
| 367 |
| 396 |
Investment property |
| 64,473 |
| 61,157 |
Investments in associates |
| 7,415,301 |
| 6,828,313 |
Financial assets at fair value through profit or loss |
| 808,069 |
| 489,242 |
Inventories |
| 37,026 |
| 44,124 |
Trade and other receivables |
| 1,022,880 |
| 918,892 |
Deferred tax assets |
| 499,180 |
| 415,548 |
Held-to-maturity investment securities |
| 535,384 |
| 497,172 |
Cash and cash equivalents |
| 339,386 |
| 178,931 |
TOTAL ASSETS |
| 10,865,230 |
| 9,578,617 |
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
Capital and reserves |
| 9,308,146 |
| 8,013,913 |
Borrowings |
| 133,703 |
| 192,062 |
Deferred tax liabilities |
| 421,267 |
| 425,529 |
Trade and other payables |
| 488,989 |
| 375,954 |
Other provisions |
| 139,785 |
| 143,548 |
Retirement benefits |
| 32,422 |
| 49,567 |
Provisions for environmental rehabilitation |
| 118,081 |
| 145,610 |
Current tax liabilities |
| 222,837 |
| 232,434 |
TOTAL EQUITY AND LIABILITIES |
| 10,865,230 |
| 9,578,617 |
PROVISIONAL ABRIDGED GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2018
| ||||
|
| Unaudited |
| Audited |
|
| 2018 |
| 2017 |
|
| ZMW'000 |
| ZMW'000 |
|
|
|
|
|
Net cash flow from operating activities |
| 16,323 |
| 311,143 |
Net cash used in investing activities |
| 198,218 |
| (105,079) |
Net cash outflow on financing |
| (54,086) |
| (63,508) |
Increase in cash and cash equivalents |
| 160,455 |
| 142,556 |
Effect of movement in exchange rates on cash held |
| - |
| 844 |
Cash and cash equivalents at the beginning of the year |
| 178,931 |
| 35,531 |
Cash and cash equivalents at the end of the year |
| 339,386 |
| 178,931 |
|
|
|
|
|
|
|
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2018
| ||||||
| Share capital | Share premium | Revaluation reserve | Translation reserve | Retained earnings | Total |
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
Balance at 1 April 2017 | 1,608 | 2,089,343 |
245,769 |
4,786,640 |
890,553 |
8,013,913 |
Total comprehensive income |
|
|
|
|
|
|
Profit for the year
| - | - | - | - | 974,627 | 974,627 |
Other comprehensive income: |
|
|
|
|
|
|
Deferred tax on revaluation reserve |
- | - |
1,944 |
- |
- |
1,944 |
Currency translation - equity accounted investees |
- | - |
- |
272,847 |
- |
272,847 |
Amortisation of revaluation surplus |
- | - |
(726) |
- |
726 |
- |
Actuarial loss on defined benefit |
- | - |
- |
- |
1,959 |
1,959 |
Share of associates' OCI | - | - | - | - | 43,542 | 43,542 |
Deferred tax on defined benefit actuarial loss |
- | - |
- |
- |
(686) |
(686) |
Total comprehensive income | - | - | 1,218 | 272,847 | 1,020,168 | 1,294,233 |
Balance at 31 March 2018 | 1,608 | 2,089,343 |
246,987 |
5,059,487 |
1,910,721 |
9,308,146 |
Commentary
· The Group reported a profit of K975 million (2017: K 729 million) representing 33% increase, driven by improved production volumes of copper in most of ZCCM-IH's investee companies and an upsurge in copper prices during the year. London Metal Exchange copper price increased by 14.8% to US$ 6,724/ton (2017: US$5,858/ton) during the year.
· The Group recorded an operating loss of K130 million (2017: profit K848 million) mainly due to Ndola Lime Company Limited's (Subsidiary) continued loss-making position, which contributed an operating loss of K167 million (2017: K1,152 million) during the year. Additionally, the impairment of the investment in Konkola Copper Mines Plc amounting to K218 million increased the recorded operating loss during the year.
· The Group recorded a positive share of profit from equity accounted investee companies of K 689 million (2017: loss K 189 million). This movement represents 464% increase.
· Profit after tax was K 975 million (2017: K 729 million).
· The Group's total assets increased by 13% from K9, 579 million (2017) to K10, 865 million (2018) on account of increase in the net assets of investee companies whose performance continued to improve during the year.
Subsequent events
Investrust Bank Plc
Subsequent to the year-end, ZCCM-IH Plc concluded a Mandatory Offer to the minority shareholders of Investrust Bank Plc that took place from 9 to 30 April 2018. ZCCM-IH Plc acquired a further 2,125,890 shares, representing a 26.00% shareholding in Investrust Bank Plc. The mandatory offer increased ZCCM-IH's shareholding in the Bank from 45.4% to 71.40%.
ZCCM Investments Holdings Plc (ZCCM-IH) as the majority shareholder has embarked on recapitalisation and restructuring plans to make the Bank more competitive and better positioned to maximise returns for its shareholders.
Ndola Lime Company Limited
Subsequent to the year end, two (2) former employees of Ndola Lime Company Limited (NLC) employees instituted proceedings to the High Court of Zambia to place NLC under supervision pursuant to the Corporate Insolvency Act No. 9 of 2017. By order of the Court dated 5th October 2018, the Official Receiver was appointed as Interim Business Administrator of NLC.
The application for the Business Rescue Proceedings will be heard in January 2019 at which all affected persons (including ZCCM-IH) will be heard.
However, ZCCM-IH remains committed to the affairs of NLC and will continue to pursue all activities that better the Company and ZCCM-IH's investment.
Outlook
ZCCM-IH's performance is expected to continue improving in light of continued improvement in copper prices which drives the performance of most investee companies in the mining sector.
By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on Friday, 30th November 2018
Lusaka Securities Exchange Sponsoring Broker | |
| T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a founder member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia |
First Issued on 30 November, 2018 | |