Preliminary Unaudited Results

RNS Number : 8049G

Cambria Africa PLC

08 November 2018

 

Cambria Africa Plc

("Cambria" or the "Company")

Cambria Achieves record FY 2018 EPS of 0.52 US cents

Cambria Africa Plc (CMB:L) achieved record earnings per share of 0.52 US cents according to preliminary unaudited consolidated results for FY 2018 ended 31 August 2018.  Before once-off legal and reorganization costs, the Company achieved earnings per share of 0.68 cents.  The Company is also announcing that its CEO, Samir Shasha, will be available to hold informal meetings with interested shareholders and investors during his upcoming trip to London between 16 and 22 November 2018.

The financial information presented has been extracted from the unaudited consolidated management accounts and could be subject to possible change following the completion of the Company's year-end audit process.  These results follow the announcement of unaudited divisional accounts announced on 18 September 2018.   Audited results are expected to be announced early in January 2019.

Highlights of FY 2018 Consolidated Results

·    Cambria achieved record Profit after Tax (PAT) of US $1.96 million for FY 2018, a turnaround of $2.31 million from a loss of $349,000 in FY 2017. This profit was achieved on the back of a 10% increase in revenues to $9.44 million from $8.60 million in FY 2017.

·    Earnings Per Share ("EPS") increased to 0.52 US cents, an increase of 0.64 cents from a loss of 0.12 cents per share in FY 2017. Excluding Once-Off Legal and Reorganisation Costs, EPS increased 88% to 0.68 cents from 0.36 cents in FY 2017.

·   Consolidated EBITDA increased 179% to $3.45 million from $1.24 million in FY 2017. Before Once-Off Costs, Cambria increased its EBITDA by 72% to $3.78 million from $2.20 million.

·    Cambria's Central Costs decreased a further 51% to $152,000 from $311,000 in FY 2017.  The CEO continued to render services without compensations in FY 2018.

·    Consolidated debt was reduced by 80% to $619,000 from $3.40 million at the end of FY 2017 after the partial conversion and repayment of VAL and Zimbabwe-domiciled loans.  Of the remaining debt, $205,000 (33%) is domiciled in Zimbabwe.  

Divisional

·     Payserv's Consolidated EBITDA, excluding  Reorganisation costs of $262,000, increased 37% to $3.63 million in FY 2018 from $2.65 million in FY 2017. PAT increased 34% to $2.38 million from $1.78 million in FY 2017, while Revenues increased by 19% to $7.57 million from $6.37 million in FY 2017.

·      Millchem's EBITDA increased to $239,000 from a loss of $143,000 in FY 2017 as a result of improvement in gross margins and a 45% reduction in overheads.

Results Highlights for FY 2018 (US$'000)	2018	2017	Change
Group:
- Revenue	9,441	8,598	10%
- Consolidated EBITDA	3,453	1,237	179%
- Operating cash flows	3,422	1,006	240%
- Group Profit/(loss) after tax ("PAT")	1,958	(349)	$2,307
- EPS - cents (US)	0.52	(0.12)	0.64
Excluding Once-Off Legal & reorganisation costs:
- EPS - cents (US)	0.68	0.36	88%
- Consolidated EBITDA	3,779	2,194	72%
- Central costs	152	311	(51%)
- Group PAT	2,567	1,013	153%
- Divisional:
- Payserv - PAT	2,383	1,776	34%
- Payserv - EBITDA	3,628	2,648	37%
- Millchem - EBITDA	239	(143)	$382

Outlook

While the Company warned its shareholders of the impact of shifts in parallel exchange rates in its RNS of 6 October 2018, parallel premiums have fallen to 250% from 400%. Payserv Zimbabwe continues to receive funding at 1:1 to the US Dollar for payment of license fees and the repayment of loans.  While Payserv anticipates a rise in overhead costs, the recent reorganization should save the company about $400,000 annually in cost-to-company compensation. This savings should somewhat cushion the Company from expected inflationary pressures.

Millchem has received a portion of its import requirements at 1:1 to the US Dollar and it anticipates that new Reserve Bank of Zimbabwe monetary policies will allow Millchem to externally fund increased imports of raw material and repay this funding.  Such funding will  alleviate a significant constraint to Millchem's business model over the last two years.

The Company reduced its cash position in Zimbabwe to minimal levels at the end of FY 2018, investing its available cash in the beneficial ownership of Radar Limited shares.  The timing of this investment prior to current economic turbulence, which commenced in early October, has preserved significant shareholder value.  Cambria's cash resources outside of Zimbabwe stand at US $1.1 million. The Company is actively considering a number of acquisitions.

Meet the CEO

Cambria's CEO, Samir Shasha will be available in London from 16 November to 22 November 2018 to hold informal meetings with shareholders and potential investors.  He invites interested parties to call him directly on his mobile [phone] or [phone] to arrange a mutually convenient meetings.

Contacts
Cambria Africa Plc:	www.cambriaafrica.com
Samir Shasha	[phone]
WH Ireland Limited:	www.wh-ireland.co.uk
James Joyce / Chris Viggor	[phone]

 

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