Last checked at 14 Jun 2021 15:25
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: 14 June 2021
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"]
ABRIDGED AUDITED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED 31 DECEMBER 2019
INTRODUCTION
In compliance with the requirements of the Securities Act No. 41 of 2016, ZCCM Investments Holdings Plc ("ZCCM-IH Plc") announces the provisional financial statements results of the Company and its subsidiary (Collectively referred to as the ''the Group'') for the nine-month period ended 31 December 2019.
CHANGE OF FINANCIAL YEAR END
The financial year end of the Group was changed from 31 March to 31 December in order to comply with the provisions of Section 71 of the Public Finance Management Act and align to the majority shareholder's financial year end. Accordingly, the current financial statements are prepared for nine (9) months from 1 April 2019 to 31 December 2019 and as a result, the comparative figures stated in the statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows and the related notes are not comparable.
STRUCTURE OF THE ZCCM-IH GROUP
The ZCCM-IH Group consisted of the following eight (8) subsidiary companies as at 31 December 2019:
Name | Shareholding |
ZCCM-IH | Parent Company |
Ndola Lime Company Limited | 100% |
Kariba Minerals Limited | 100% |
Misenge Environmental and Technical Services Limited | 100% |
Mushe Milling Limited | 100% |
Nkandabwe Coal Mine Limited | 100% |
Kabundi Resources Limited | 100% |
Limestone Resources Limited | 100% |
Investrust Bank Plc | 71.4% |
The Company also had other interests in the undernoted companies:
Name | Shareholding |
| ||||
Rembrandt Properties | 49.00% |
| ||||
Central African Cement Company Limited | 49.00% |
| ||||
Maamba Collieries Limited | 35.00% |
| ||||
Copperbelt Energy Corporation Plc | 24.10% |
| ||||
Konkola Copper Mines Plc | 20.60% |
| ||||
Kansanshi Mining Plc | 20.00% |
| ||||
CEC Africa Investments Limited | 20.00% |
| ||||
Lubambe Copper Mine Plc | 20.00% |
| ||||
CNMC Luanshya Copper Mines Plc | 20.00% |
| ||||
Copper Tree Minerals Limited | 15.58% |
| ||||
NFCA Africa Mining Plc | 15.00% |
| ||||
Chibuluma Mines Plc | 15.00% |
| ||||
Chambishi Metals Plc | 10.00% |
| ||||
Mopani Copper Mines Plc | 10.00% |
| ||||
Oranto Oil Block | 10.00% |
| ||||
Nkana Alloy Smelting Company Limited | 10.00% |
| ||||
ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | ||||||
|
| Audited |
| Audited | ||
|
| Nine Months to 31 Dec 2019 |
| 12 Months to 31 Mar 2019 | ||
|
| ZMW'000 |
| ZMW'000 | ||
Revenue |
|
62,432 |
|
76,670 | ||
Gross profit |
| 9,417 |
| 45,166 | ||
Operating loss |
| (155,385) |
| (580,284) | ||
Net finance income |
| 139,074 |
| 5,829 | ||
Share of profit of equity accounted investees |
| 420,348 |
| 973,213 | ||
Profit before tax |
| 404,037 |
| 398,758 | ||
Income tax (expense)/credit |
| (22,871) |
| 49,105 | ||
Profit from continuing operations |
| 381,166 |
| 447,863 | ||
Loss from discontinued operations |
| (73,979) |
| - | ||
Profit for the year |
| 307,187 |
| 447,863 | ||
Earnings per share (k) |
| 1.91 |
| 2.79 | ||
Basic and diluted earnings per share (k) |
| 1.91 |
| 2.79 | ||
|
|
|
|
| ||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION | ||||||||
|
|
| Audited |
| Audited | ||||
|
|
| 31 Dec 2019 |
| 31 Mar 2019 | ||||
| Assets |
| ZMW'000 |
| ZMW'000 | ||||
| Property, plant and equipment |
| 299,125 |
| 187,268 | ||||
| Intangible assets |
| 648 |
| 8,532 | ||||
| Investment property |
| 167,970 |
| 251,230 | ||||
| Investments in associates |
| 11,855,067 |
| 10,276,405 | ||||
| Goodwill |
| 119,818 |
| - | ||||
| Financial assets at fair value through profit or loss |
| - |
| 584 | ||||
| Inventories |
| 52,057 |
| 104,681 | ||||
| Trade and other receivables |
| 729,685 |
| 1,153,236 | ||||
| Assets held for sale |
| 1,127,333 |
| - | ||||
| Deferred tax assets |
| 564,304 |
| 601,589 | ||||
| Term deposits |
| 274,960 |
| 754,438 | ||||
| Cash and cash equivalents |
| 56,816 |
| 74,480 | ||||
| Total assets |
| 15,247,783 |
| 13,412,443 | ||||
|
|
|
|
|
| ||||
| Equity and liabilities |
|
|
|
| ||||
| Share capital and reserves |
| 12,629,831 |
| 11,025,116 | ||||
| Bank overdraft |
| 2,641 |
| - | ||||
| Borrowings |
| - |
| 104,357 | ||||
| Deferred tax liabilities |
| 238,185 |
| 245,455 | ||||
| Trade and other payables |
| 738,912 |
| 1,553,171 | ||||
| Liabilities associated with assets classified as held for sale |
| 1,191,270 |
| - | ||||
| Provisions |
| 83,118 |
| 127,590 | ||||
| Retirement benefits |
| 34,669 |
| 34,180 | ||||
| Provisions for environmental rehabilitation |
| 119,253 |
| 145,460 | ||||
| Current tax liabilities |
| 209,904 |
| 177,114 | ||||
| Total equity and liabilities |
| 15,247,783 |
| 13,412,443 | ||||
|
|
|
|
|
| ||||
|
| ||||||||
| ABRIDGED COMPANY STATEMENT OF FINANCIAL POSITION | ||||||||
|
|
| Audited |
| Audited | ||||
|
|
| 31 Dec 2019 |
| 31 Mar 2019 | ||||
| Assets |
| ZMW'000 |
| ZMW'000 | ||||
| Property, plant and equipment |
| 88,439 |
| 85,819 | ||||
| Intangible assets |
| 648 |
| 671 | ||||
| Investment property |
| 167,970 |
| 157,606 | ||||
| Investments in subsidiaries |
| 147,317 |
| 69,987 | ||||
| Investments in associates |
| 10,746,818 |
| 9,703,369 | ||||
| Assets held for sale |
| 387,110 |
| - | ||||
| Trade and other receivables |
| 719,855 |
| 842,664 | ||||
| Term deposit |
| 273,717 |
| 727,554 | ||||
| Cash and cash equivalents |
| 54,359 |
| 26,276 | ||||
| Total assets |
| 12,586,233 |
| 11,613,946 | ||||
|
Equity and liabilities |
|
|
|
| ||||
| Capital and reserves |
| 9,484,935 |
| 8,661,948 | ||||
| Borrowings |
| - |
| 103,271 | ||||
| Deferred tax liabilities |
| 2,688,472 |
| 2,306,727 | ||||
| Trade and other payables |
| 52,271 |
| 77,342 | ||||
| Provisions |
| 83,118 |
| 127,590 | ||||
| Retirement benefits |
| 7,971 |
| 5,513 | ||||
| Provisions for environmental rehabilitation |
| 55,258 |
| 112,905 | ||||
| Current tax liabilities |
| 214,208 |
| 218,650 | ||||
| Total equity and liabilities |
| 12,586,233 |
| 11,613,946 | ||||
|
|
|
|
|
| ||||
ABRIDGED GROUP STATEMENT OF CASH FLOWS
|
| ||||||||
|
| Audited |
| Audited |
| ||||
|
| Nine Months to 31 Dec 2019 |
| 12 Months to 31 Mar 2019 |
| ||||
|
| ZMW'000 |
| ZMW'000 |
| ||||
|
|
|
|
|
| ||||
Net cash flow from operating activities |
| 190,389 |
| (238,880) |
| ||||
Net cash used in investing activities |
| 37,696 |
| 38,181 |
| ||||
Net cash outflow on financing |
| (136,702) |
| (64,207) |
| ||||
Increase in cash and cash equivalents |
| 91,383 |
| (264,906) |
| ||||
Cash and cash equivalents at the beginning of the year |
| 74,480 |
| 339,386 |
| ||||
Cash and cash equivalents at the end of the year |
| 165,865 |
| 74,480 |
| ||||
Included in the statement of financial position |
| 54,175 |
| 74,480 |
| ||||
Included in assets held for sale |
| 111,688 |
| - |
| ||||
|
| 165,865 |
| 74,480 |
| ||||
|
| ||||||||
ABRIDGED COMPANY STATEMENT OF CASH FLOWS
|
| ||||||||
|
| Audited |
| Audited |
| ||||
|
| Nine months to 31 Dec 2019 |
| 12 Months to 31 Mar 2019 |
| ||||
|
| ZMW'000 |
| ZMW'000 |
| ||||
|
|
|
|
|
| ||||
Net cash flow from operating activities |
| 93,439 |
| (80,596) |
| ||||
Net cash used in investing activities |
| 37,915 |
| (334,341) |
| ||||
Net cash outflow on financing |
| (103,271) |
| 103,271 |
| ||||
Increase in cash and cash equivalents |
| 28,083 |
| (311,666) |
| ||||
Cash and cash equivalents at the beginning of the year |
| 26,276 |
| 337,942 |
| ||||
Cash and cash equivalents at the end of the year |
| 54,359 |
| 26,276 |
| ||||
ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY
|
| Audited |
| Audited |
|
| 9 Months to 31 Dec 2019 |
| 12 Months to 31 Mar 2019 |
|
| ZMW'000 |
| ZMW'000 |
|
|
|
|
|
Balance at 1 April |
| 11,025,116 |
| 8,771,841 |
Profit for the period |
| 307,187 |
| 447,863 |
Other comprehensive income |
| 1,297,528 |
| 2,038,573 |
Dividend paid |
| - |
| (233,161) |
Balance at 31 December/ March |
| 12,629,831 |
| 11,025,116 |
| ||||
ABRIDGED COMPANY STATEMENT OF CHANGES IN EQUITY
|
|
| Audited |
| Audited |
| ||||
|
|
| Nine months to 31 Dec 2019 |
| 12 months to 31 Mar 2019 |
| ||||
|
|
| ZMW'000 |
| ZMW'000 |
| ||||
|
|
|
|
|
| |||||
Balance at 1 April |
| 8,661,948 |
| 5,790,154 |
| |||||
Profit/ (loss) for the period |
| 153,435 |
| (107,524) |
| |||||
Other comprehensive income |
| 669,552 |
| 3,212,479 |
| |||||
Dividend paid |
| - |
| (233,161) |
| |||||
Balance at 31 December/ March |
| 9,484,935 |
| 8,661,948 |
| |||||
1. FINANCIAL PERFORMANCE
The Group reported a profit for the nine-month period of ZMW307 million (USD23 million) (March 2019: ZMW448 million (USD40 million)). The 31% decrease in profitability was mainly due to the fact that the previous period is accounting for 12 months as compared to 9 months for the current period. Furthermore, there was a decrease in share of profit of equity accounted investee companies on account of the impairment of receivables by associate companies such as Kansanshi Mining Plc and Copperbelt Energy Corporation Plc.
The Company reported a profit for the year of ZMW153 million (USD12 million) (March 2019: loss ZMW108 million (USD10 million)), mainly due to exchange gains on foreign denominated assets and reduced administrative costs such as impairment of financial assets accounted at fair value through profit or loss, loans and receivables.
The Group and Company's retained earnings as at 31 December 2019 were positive at ZMW2,191 million (USD179 million) (March 2019: ZMW 1,857 million (USD155 million)) and ZMW978 million (USD79 million) (March 2019: ZMW825 million (USD68 million)) respectively. The increase in retained earnings is attributed to recorded Group and Company record profits in this period of ZMW307 million (USD23 million) and ZMW153 million (USD12 million) respectively.
Group total assets increased by 14% to ZMW15.2 billion (USD 1.2 billion) as at 31 December 2019 from ZMW13.4 billion (USD1.1 billion) as at 31 March 2019. This is mainly attributed to an increase in values of investments in associates from ZMW 10.3 billion (USD956 million) as at 31 March 2019 to ZMW 11.9 billion (USD.
2. DIVIDEND
The Directors will recommend a final dividend payout of ZMW53,064, 601.26 (USD2,391,590.11) in total ( K 0.33 per share (USD0.0149)).
3. SIGNIFICANT DEVELOPMENTS
ZCCM-IH's investments were steered towards the mining sector. Thus, three core strategies were employed targeted at driving portfolio growth which were:
· Pursuit of the royalty model in order to introduce new revenue stream;
· Realignment of the portfolio to achieve more focus in mining and mining related activities; and
· Development of turnaround strategies for loss making subsidiaries.
4. OUTLOOK
Looking into the future, the mining sector is generally expected to face challenges during early to mid-2020 due to depressed commodity prices and disruption in international trade caused by the Novel Coronavirus (COVID-19) pandemic.
Despite these challenges, ZCCM-IH is committed to enhance value creation for its shareholders. Thus, ZCCM-IH will continue to diversify within the mining sector to mitigate slumps that may be experienced in some metals at a particular time while taking advantage of surges occurring in other metals during the same time.
By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on 14 June 2021
| |
| 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 14 June 2021 | |
APPENDICES
US DOLLAR ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
| ||||||
|
|
|
| ||||
| 31-Dec- 19 |
| 31-Mar-19 | ||||
| USD'000 |
| USD'000 | ||||
|
|
|
| ||||
Revenue | 4,687 |
| 6,848 | ||||
Gross profit | 707 |
| 4,034 | ||||
Operating loss | (11,664) |
| (51,831) | ||||
Net finance income | 10,440 |
| 521 | ||||
Share of profit of equity accounted investees | 31,555 |
| 86,926 | ||||
Profit before tax | 30,331 |
| 35,616 | ||||
Income tax | (1,717) |
| 4,386 | ||||
Profit for continuing operations | 28,614 |
| 40,002 | ||||
Profit for discontinued operations | (5,554) |
| - | ||||
Profit for the year | 23,060 |
| 40,002 | ||||
Earnings per share (USD) | 0.14 |
| 0.25 | ||||
Basic and diluted earnings per share (USD) | 0.14 |
| 0.25 | ||||
US DOLLAR ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
| ||||||
|
|
|
|
| |||
|
|
|
|
| |||
| 31-Dec- 19 |
| 31-Mar-19 |
| |||
| USD'000 |
| USD'000 |
| |||
|
|
|
|
| |||
Investment income | 12,849 |
| 16,133 |
| |||
Operating profit/(loss) | 1,283 |
| (28,543) |
| |||
Net finance income | 11,899 |
| 4,433 |
| |||
Profit/(loss) before tax | 13,182 |
| (24,110) |
| |||
Income tax | (1,664) |
| 14,508 |
| |||
Profit/(loss) for the year | 11,518 |
| (9,602) |
| |||
Earnings per share (USD) | 0.07 |
| (0.06) |
| |||
Basic and diluted earnings per share (USD) | 0.07 |
| ( 0.06) |
| |||
US DOLLAR ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 | |||||
|
|
|
| ||
|
|
|
| ||
| 31-Dec-19 |
| 31-Mar-19 | ||
| USD'000 |
| USD'000 | ||
Assets |
|
|
| ||
Non-Current Asset | 1,066,794 |
| 976,391 | ||
Current Assets | 138,250 |
| 123,892 | ||
Total Assets | 1,205,044 |
| 1,100,283 | ||
|
|
|
| ||
Equity and Liabilities |
|
|
| ||
Shareholders' Funds | 1,017,413 |
| 904,440 | ||
Non-Current Liabilities | 22,799 |
| 58,071 | ||
Current Liabilities | 164,832 |
| 137,772 | ||
Total Equity and Liabilities | 1,205,044 |
| 1,100,283 | ||
|
|
|
| ||
US DOLLAR ABRIDGED COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 | |||||
|
|
|
| ||
| 31-Dec-19 |
| 31-Mar-19 | ||
| USD'000 |
| USD'000 | ||
Assets |
|
|
| ||
Non-Current Asset | 934,511 |
| 855,568 | ||
Current Assets | 76,540 |
| 97,175 | ||
Total Assets | 1,011,051 |
| 952,743 | ||
|
|
|
| ||
Equity and Liabilities |
|
|
| ||
Shareholders' Funds | 788,777 |
| 710,577 | ||
Non-Current Liabilities | 197,218 |
| 198,945 | ||
Current Liabilities | 25,056 |
| 43,221 | ||
Total Equity and Liabilities | 1,011,051 |
| 952,743 | ||