ZCCM-IH Abridged Audited Results-31 March 2018
Updated : 12:57
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: 16 January 2019
ZCCM INVESTMENTS HOLDINGS PLC
(Incorporated in the Republic of Zambia)
AUDITED FINANCIAL RESULTS OF THE GROUP FOR THE YEAR ENDED 31 MARCH 2018
In accordance with the requirements of the Securities Act No. 41 of 2016 and the Listing Requirements of the Lusaka Securities Exchange, ZCCM Investments Holdings Plc (ZCCM-IH Plc) announces the audited results of the company and its subsidiaries (collectively referred to as the Group) for the year ended 31 March 2018.
ABRIDGED GROUP STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2018 |
| ||||||||
|
| Audited |
| Audited |
| ||||
|
| 2018 |
| 2017 |
| ||||
|
| ZMW'000 |
| ZMW'000 |
| ||||
Revenue |
|
60,982 |
|
95,345 |
| ||||
Gross loss |
|
(17,487) |
|
(14,516) |
| ||||
Operating profit |
| 46,550 |
| 847,866 |
| ||||
Net finance (cost)/income |
| (132,485) |
| 585,646 |
| ||||
Share of profit/(loss) of equity accounted investees |
|
689,207 |
| (189,233) |
| ||||
Profit before tax |
| 603,272 |
| 1,244,279 |
| ||||
Income tax credit/(expense) |
| 241,287 |
| (515,445) |
| ||||
Profit from continuing operations |
| 844,559 |
| 728,834 |
| ||||
|
|
|
|
|
| ||||
Loss from discontinued operations |
| (1,610) |
| - |
| ||||
|
|
|
|
|
| ||||
Profit for the year |
| 842,949 |
| 728,834 |
| ||||
Earnings per share (K) |
| 5.25 |
| 4.53 |
| ||||
Basic and diluted earnings per share (K) |
| 5.25 |
| 4.53 |
| ||||
ABRIDGED GROUP STATEMENT OF FINANCIAL POSTION AS AT 31 MARCH 2018
| |||||||||
|
| Audited |
| 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 |
| 7,355,864 |
| 6,828,313 | |||||
Financial assets at fair value through profit or loss |
| 336,082 |
| 489,242 | |||||
Inventories |
| 37,026 |
| 44,124 | |||||
Trade and other receivables |
| 1,022,880 |
| 918,892 | |||||
Deferred tax assets |
| 497,609 |
| 415,548 | |||||
Held-to-maturity investment securities |
| 535,384 |
| 497,172 | |||||
Cash and cash equivalents |
| 339,386 |
| 178,931 | |||||
TOTAL ASSETS |
| 10,332,235 |
| 9,578,617 | |||||
|
|
|
|
| |||||
EQUITY AND LIABILITIES |
|
|
|
| |||||
Capital and reserves |
| 8,940,346 |
| 8,013,913 | |||||
Borrowings |
| 133,703 |
| 192,062 | |||||
Deferred tax liabilities |
| 256,072 |
| 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 |
| 10,332,235 |
| 9,578,617 | |||||
ABRIDGED GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2018
| ||||
|
| Audited |
| Audited |
|
| 2018 |
| 2017 |
|
| ZMW'000 |
| ZMW'000 |
|
|
|
|
|
Net cash flow from operating activities |
| 16,323 |
| 311,143 |
Net cash flow from/ (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 | - |
Defined benefit actuarial loss | - | - | - | - | (465) | (465) |
Deferred tax on defined benefit actuarial loss |
- | - |
- |
- |
163 |
163 |
Share of associates' OCI | - | - | 106 | 80,365 | - | 80,471 |
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
| - | - | - | - | 842,949 | 842,949 |
Other comprehensive income: |
|
|
|
|
|
|
Deferred tax on revaluation reserve |
- | - |
1,944 |
- |
- |
1,944 |
Currency translation - equity accounted investees |
- | - |
- |
36,725 |
- |
36,725 |
Amortisation of revaluation surplus | - | - | (726) | - | 726 | - |
Defined benefit actuarial gain | - | - | - | - | 1,959 | 1,959 |
Deferred tax on defined benefit actuarial gain |
- | - |
- |
- |
(686) |
(686) |
Share of associates' OCI | - | - | - | - | 43,542 | 43,542 |
Total comprehensive income | - | - | 1,218 | 36,725 | 888,490 | 926,433 |
Balance at 31 March 2018 | 1,608 | 2,089,343 |
246,987 |
4,823,365 |
1,779,043 |
8,940,346 |
Commentary
· The Group recorded turnover of K61 million (2017: K95 million). The decrease in turnover is attributed to low sales at Ndola Lime Company Limited due to increased competition in lime market as well as technical challenges which negatively affected the production and sales of lime and related products.
· The Group recorded an operating profit of K47 million (2017: K848 million). The decrease is 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);
- impairment of the investment in Konkola Copper Mines Plc amounting to K218 million; and
- decrease in copper price participation income from K719 million (2017) to K360 million (2018).
· 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.
· The Group reported a profit of K843 million (2017: K 729 million) representing 16% 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's total assets increased by 8% from K9, 579 million (2017) to K10, 332 million (2018) on account of increase in the net assets of investee companies whose performance continued to improve during the year.
Dividends
The Directors have proposed a final dividend of K0.61/share for the year ended 31 March 2018 to be tabled at the Annual General Meeting to be held on 28 January 2019.
By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on Wednesday 16th January 2019
Lusaka Securities Exchange Sponsoring Broker | |
| T | +260-211-232456 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 16 January 2019 | |
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