FY17 Trading Update Leads to Open Offer Extension

RNS Number : 5557V

Cambria Africa PLC

31 January 2017

 

              Cambria Africa Plc

("Cambria" or the "Company")

FY 2017 Trading Update Leads to Open Offer Extension

Last Friday the Company announced a trading update for the current financial year indicating Payserv, the Company's largest subsidiary, achieved a 131% increase in Profit Before Tax for the 4 months ended 31 December 2016 (http://www.cambriaafrica.com/rns?id=13109693). Accordingly, Cambria is extending the closing date of its Open Offer to 15 February 2017 to allow Qualifying Shareholders to consider the significance of this and other updated results repeated below in their investment choices.

The Open Offer Issue Price of 1.00p per share represents a discount of 16.7% to the closing price of 1.20p on Friday, 27 January 2017 and a 17.4% discount to the 10-day Volume Weighted Average Price of 1.21p.

The Open Offer guarantees Qualifying Shareholders a price of 1.00p per share for up to a 1.194 Open Offer shares for each share held.  If they take up their full Open Offer Entitlement, shareholders can apply for additional Open Offer Shares through an Excess Application Facility .

Qualifying Shareholders have received the Open Offer Circular and Application which appear on the Company's website (http://www.cambriaafrica.com/investors/shareholder-documents).   If you are a Qualifying Shareholder and have not been notified or have questions about the application process, please contact the Company's registrar, Capita Asset Services by telephone on [phone].

The revised timetable of principal events is detailed below. Capitalised terms in this announcement are as defined in the Open Offer circular (http://www.cambriaafrica.com/investors/shareholder-documents) unless the context otherwise requires.

Trading update

As outlined in the Company's results announcement of 27 January 2017 and repeated below, FY 2017 has started positively.

After Fiscal Year-End 2016, unaudited management accounts for the 4 months ended 31 December 2016 reflect an acceleration of the performance gains achieved in FY 2016. 

In comparison to the same period in FY 2016, the salient results are as follows:

Payserv:  

·      PBT increased by 131% to $660,000 from $286,000,

·      EBITDA increased by 51.8% to $850,000 from $560,000,

·      Revenues increased by 23.4% to $2.16 million from $1.75 million,

·      Paynet's EDI volumes up by 46.3%,

·      Tradanet loan volumes down 35.4%.

The significant increase in EDI volumes is believed to be attributable to an increase in electronic payments as a result of the cash shortages in Zimbabwe and multiple salary payments during the same month by employers. Tradanet loans fell as a result of a temporary discontinuation in the credit partner loan program. This program is expected to be reinstated in early 2017 and will result in a restoration of loans to FY 2016 levels.

Although the current record EDI volumes may abate in future should current conditions change, Paynet's management expects normalisation of Tradanet loan volumes to mitigate any such reduction.

Millchem:  

·      Revenues flat at $1.2 million,

·      EBITDA loss further reduced by 30% to $38,000 from a loss of $55,000,

·      Pre-tax loss reduced by 27.7% to $47,000 from a loss of $65,000.

Central:  

·      Central costs, excluding legal expenses, continue to track the improved levels reported in FY 2016.

OPEN OFFER: REVISED TIMETABLE OF PRINCIPAL EVENTS

Recommended latest time and date for requesting withdrawal of Open Offer Entitlements from CREST	4:30pm on 9 February 2017
Latest time and date for depositing Open Offer Entitlements into CREST	3.00pm on 10 February 2017
Latest time and date for splitting Application Forms (to satisfy bona fide market claims only)	3.00pm on 13 February 2017
Latest time and date for acceptance of the Open Offer and receipt of completed Non-CREST Application Forms and payment in full under the Open Offer or settlement of relevant CREST instruction (if appropriate)	11.00am on 15 February 2017
Announcement of result of Open Offer	16 February 2017
Admission and commencement of dealings in the Shares on AIM	22 February 2017
New Ordinary Shares credited to CREST members' accounts	22 February 2017
New Ordinary Shares in certificated form	1 March 2017

All references are to London time.

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

Contacts
Cambria Africa Plc:	www.cambriaafrica.com
Samir Shasha	[phone]
Email:	[e-mail]
WH Ireland Limited:	www.wh-ireland.co.uk
James Joyce / Nick Prowting	[phone]

 

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