Operational Update

RNS Number : 6399P

Cambria Africa PLC

09 June 2015

 



Cambria Africa Plc

("Cambria" or the "Company")

Operational Update

The Company provides an update to its recent trading as well as an update to its financial position further to the closing of the recent subscription for shares on 13 April 2015 that raised £909,500 (approximately $1.3m).

During the first half of the financial year in relation to the six months ending February 28, 2015:

·      Payserv achieved US$ 2.64 million in revenues over the period, compared to US$ 2.19 million for the same period last year, a 21% year-on-year increase in revenues. During the same period, Payserv saw an increase in EBITDA of 34% over the prior year's first half performance and achieved a profit before tax (PBT) in excess of PBT for the full financial year of Payserv ended 31 August 2014.

·      Millchem achieved US$ 3.10 million of revenues over the period, compared to $2.00m for the same period last year, a 55% year-on-year increase in revenues. EBITDA and PBT losses for Millchem for the first half of the financial year have only slightly improved from the results for the full year ended 31 August 2014 as the company continued to heavily invest into regional expansion, away from Zimbabwe, and into broadening its offering with various new suppliers.

The proceeds of the recent placement have been used to provide for the significant costs in relation to legal fees to the previously announced litigation against Lonrho, Cambria group overhead, and working capital for the Company's existing investments.

As previously announced on 26 March 2015 and in the Company's circular of 23 January 2015, Cambria activities have been constrained by a number of factors, including, a shrinking Zimbabwean economy and the sale of the Leopard Rock Hotel at a price well below management's expectations.

The Company's working capital is tight and is being carefully managed and is reliant beyond the short term on raising further funds. The Company is in discussions with Ventures Africa Limited ('VAL'), which holds 50.5% of the issued share capital regarding the provision of further funds.  

In the meantime, VAL has provided a standby facility for Cambria, in the amount of US$1,120,000, to be used as security for costs in connection with the on-going litigation against Lonrho.  The funds are held by way of deposit in the client account of Allen & Overy LLP (Cambria's solicitors in the current litigation).  VAL will not charge Cambria for providing the standby facility.  In the event the facility is not used the funds will be returned to VAL. 

VAL is a substantial shareholder of Cambria. The provision of the standby facility is accordingly a related party transaction under the AIM Rules for Companies. The directors consider, having consulted with WH Ireland its nominated adviser, that the terms of the transaction are fair and reasonable insofar as shareholders of the Company are concerned. Since Mr Samir Shasha, a director of Cambria,  is the beneficial owner of VAL, he was excluded from consideration of the fair and reasonableness of the transaction.

If the standby facility is used, the funds made available thereunder will be owed by Cambria to VAL and, if not settled immediately by Cambria, VAL and the Company will negotiate the terms and security of the debt at that time. 

Trading in the Company's shares was suspended from 17 February 2015, pending publication of the audited 2014 Full Year Results for the twelve months ended 31 August 2014. Pursuant to the AIM Rules for Companies, the admission of the Company's shares will be cancelled if the Company's shares are not restored to trading by the 17 August 2015. Consequently, the Company will need to have published both its audited 2014 Full Year Results for the twelve months ended 31 August 2014, and its 2015 Interim Results for the six months ended 28 February 2015, by that date.

Ends

Contacts
Cambria Africa Plc	www.cambriaafrica.com
Samir Shasha	[phone]
Ian Perkins	[phone]
Edzo Wisman	[phone]
WH Ireland Limited	www.wh-ireland.co.uk
James Joyce / Mark Leonard	[phone]

 

END

 

 

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