Director's Half-year Results-30 Sep 2019
SENS ANNOUNCEMENT
(the "Notice" or "Announcement")
ISSUER
ZCCM INVESTMENTS HOLDINGS PLC ("ZCCM-IH")
[Incorporated in the Republic of Zambia]
Company registration number: 771
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: 26 December 2019
ZCCM INVESTMENTS HOLDINGS PLC
(Incorporated in the Republic of Zambia)
DIRECTORS' UNAUDITED HALF YEAR RESULTS FOR THE PERIOD ENDED 30TH SEPTEMBER 2019
INTRODUCTION
In compliance with the requirements of the "Securities Act, Cap 354 of the Laws of Zambia" and the Listing Rules of the Lusaka Securities Exchange, ZCCM Investments Holdings Plc (ZCCM-IH) announces the interim unaudited financial results of the Company and its Subsidiaries (collectively referred to as the Group) for the six months' period ended 30th September 2019.
STRUCTURE OF THE ZCCM-IH GROUP
The ZCCM-IH Group consist of the following six (7) companies:
|
Name |
Shareholding |
|
Ndola Lime Company Limited |
100.00% |
|
Kariba Minerals Limited |
100.00% |
|
Misenge Environmental and Technical Services Limited |
100.00% |
|
Mushe Milling Limited |
100.00% |
|
Kabundi Resources Limited |
100.00% |
|
Investrust Bank Plc |
74.10% |
The Company also has other interests in the undernoted companies:
|
Name |
Shareholding |
|
Rembrandt Properties |
49.00% |
|
Maamba Collieries Limited |
35.00% |
|
Konkola Copper Mines Plc |
20.60% |
|
Kansanshi Mining Plc |
20.00% |
|
Copperbelt Energy Corporation Plc |
24.10% |
|
CEC Africa Investments Limited |
20.00% |
|
CNMC Luanshya Copper Mines Plc |
20.00% |
|
Lubambe Copper Mines Plc |
20.00% |
|
NFCA Africa Mining Plc |
15.00% |
|
Chibuluma Mines Plc |
15.00% |
|
Chambishi Metals Plc |
15.00% |
|
Copper Tree |
15.58% |
|
Mopani Copper Mines Plc |
10.00% |
|
Oranto Oil Block |
10.00% |
|
Nkana Alloy Smelting Company Limited |
10.00% |
FINANCIAL PERFORMANCE
ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
|
|
|
30 Sept 2019 |
|
30 Sept 2018 |
|
|
|
ZMW'000 |
|
ZMW'000 |
|
|
|
|
|
|
|
Revenue |
|
98,215 |
|
67,522 |
|
Gross profit |
|
40,700 |
|
31,272 |
|
Operating loss |
|
(165,112) |
|
(222,473) |
|
Net finance income |
|
138,685 |
|
396,408 |
|
Share of profit of equity accounted investees |
|
154,825 |
|
437,516 |
|
Profit before tax |
|
128,398 |
|
611,451 |
|
Income tax |
|
- |
|
(101,372) |
|
Profit for the year |
|
128,398 |
|
510,079 |
|
Earnings per share (ZMW) |
|
0.80 |
|
3.17 |
|
Basic and diluted earnings per share (ZMW) |
|
0.80 |
|
3.17 |
ABRIDGED SEPERATE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
|
|
|
30 Sept 2019 |
|
30 Sept 2018 |
|
|
|
ZMW'000 |
|
ZMW'000 |
|
|
|
|
|
|
|
Revenue |
|
122,536 |
|
44,760 |
|
Operating profit/ (loss) |
|
47,098 |
|
(58,644) |
|
Net finance income |
|
146,633 |
|
412,050 |
|
Profit before tax |
|
193,731 |
|
353,406 |
|
Income tax |
|
- |
|
(101,372) |
|
Profit for the year |
|
193,731 |
|
252,034 |
|
Earnings per share (ZMW) |
|
1.20 |
|
1.57 |
|
Basic and diluted earnings per share (ZMW) |
|
1.20 |
|
1.57 |
ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION FOR THE SIX MONTHS ENDED 30th
SEPTEMBER 2019
|
|
30-Sep-19 |
|
30-Sep-18 |
|
|
ZMW'000 |
|
ZMW'000 |
|
Assets |
|
|
|
|
Non-Current Asset |
13,011,789 |
|
11,384,543 |
|
Current Assets |
1,507,353 |
|
2,338,529 |
|
Total Assets |
14,519,142 |
|
13,723,072 |
|
|
|
|
|
|
Equity and Liabilities |
|
|
|
|
Shareholders' Funds |
12,106,930 |
|
11,194,363 |
|
Non-Current Liabilities |
627,332 |
|
682,888 |
|
Current Liabilities |
1,784,880 |
|
1,827,659 |
|
Non-Controlling Interests |
- |
|
18,162 |
|
Total Equity and Liabilities |
14,519,142 |
|
13,723,072 |
ABRIDGED SEPERATE STATEMENT OF FINANCIAL POSITION FOR THE SIX MONTHS ENDED 30th
SEPTEMBER 2019
|
|
30-Sep-19 |
|
30-Sep-18 |
|
|
ZMW'000 |
|
ZMW'000 |
|
Assets |
|
|
|
|
Non-Current Asset |
10,465,755 |
|
5,446,029 |
|
Current Assets |
1,126,399 |
|
1,632,688 |
|
Total Assets |
11,592,154 |
|
7,078,717 |
|
|
|
|
|
|
Equity and Liabilities |
|
|
|
|
Shareholders' Funds |
8,781,906 |
|
5,761,404 |
|
Non-Current Liabilities |
2,425,145 |
|
867,307 |
|
Current Liabilities |
385,103 |
|
450,006 |
|
Total Equity and Liabilities |
11,592,154 |
|
7,078,717 |
ABRIDGED GROUP STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30th SEPTEMBER 2019
|
|
30-Sep-19 |
|
30-Sep-18 |
|
|
ZMW'000 |
|
ZMW'000 |
|
|
|
|
|
|
Net cash flow from operating activities |
43,782 |
|
107,009 |
|
Net cash Inflow/(used) from investing activities |
171,450 |
|
(92,000) |
|
Net cash used in financing
|
(104,357) |
|
(27,047) |
|
Increase in cash and cash equivalents |
110,875 |
|
(12,038) |
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the year |
74,480 |
|
339,387 |
|
Cash and cash equivalents at the end of the period
|
185,355 |
|
327,349 |
ABRIDGED SEPERATE STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30th SEPTEMBER 2019
|
|
30-Sep-19 |
|
30-Sep-18 |
|
|
ZMW'000 |
|
ZMW'000 |
|
|
|
|
|
|
Net cash flow (used)/from operating activities |
(138,425) |
|
123,726 |
|
Net cash Inflow/(used) from investing activities |
336,824 |
|
(161,940) |
|
Net cash used in financing
|
(103,271) |
|
- |
|
Increase in cash and cash equivalents |
95,128 |
|
(38,214) |
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the year |
26,276 |
|
337,942 |
|
Cash and cash equivalents at the end of the year
|
121,404 |
|
299,728 |
ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY
|
|
30-Sep-19 |
|
30-Sep-18 |
|
|
|
|
|
|
|
|
|
ZMW'000 |
|
ZMW'000 |
|
|
|
|
|
|
|
|
Balance at 1 April |
11,124,784 |
|
8,940,346 |
|
|
Profit for the year |
128,398 |
|
510,079 |
|
|
Other comprehensive income
|
853,748 |
|
1,762,100 |
|
|
Balance at 31 March
|
12,106,930 |
|
11,212,525
|
|
ABRIDGED SEPERATE STATEMENT OF CHANGES IN EQUITY
|
|
30-Sep-19 |
|
30-Sep-18 |
|
|
|
|
|
|
|
|
|
ZMW'000 |
|
ZMW'000 |
|
|
|
|
|
|
|
|
Balance at 1 April |
8,661,948 |
|
5,790,154 |
|
|
Profit for the year |
193,731 |
|
252,034 |
|
|
Other comprehensive Loss
|
(73,773) |
|
(280,784) |
|
|
Balance at 31 March
|
8,781,906 |
|
5,761,404
|
|
1. FINANCIAL PERFORMANCE HIGHLIGHTS
The Group recorded a turnover of ZMW98.2 million for the six-month period ended 30th September 2019 which represents a 45% increase over the turnover of ZMW67.5 million reported during the six months to 30th September 2018. The increase is largely on account of improved interest income from Investrust Bank Plc for the period.
The Group's share of profit in associate companies was ZMW154.8 million (September 2018: ZMW437.5 million). The performance of the associate companies declined during the period largely on account of:
§ Kansanshi Mining Plc's impairment of Value Added Tax receivable amounting to ZMW1.13 billion (US85.8 million).
§ Copperbelt Energy Corporations Plc impairment of receivable relating to Konkola Copper Mines Plc (KCM) amounting of ZMW358 million (USD28.8 million). No provision was made in prior period.
Overall the Group recorded a profit after tax of ZMW128.4 million (September 2018: Profit ZMW510.1 million).
2. KEY OPERATIONS AND STRATEGIC DEVELOPMENTS
Investrust Bank Plc
During the period under review, ZCCM-IH undertook a recapitalization exercise of Investrust Bank Plc ("Investrust" or the "Bank") whereby an amount totaling ZMW 286 million was injected into the Bank to bolster the Bank's capital adequacy and liquidity position. ZCCM-IH is committed to providing strategic direction to the Bank with a view to improve the Bank's performance going forward.
Konkola Copper Mines Plc
On 21 May 2019, ZCCM-IH filed a petition in the High Court of Zambia for the winding up of KCM. ZCCM-IH has filed the said petition pursuant to Section 56(1)(c) of the Corporate Insolvency Act No. 9 of 2017. By Order of the Court, Mr. Milingo Lungu Simwanza & Company has been appointed as provisional liquidator. The matter is yet to be determined by the Courts.
Kabundi Resources Limited
Kabundi Resources Limited ("KRL") a wholly owned subsidiary is located in Chief Muchinda's area in Serenje District, Central Province. KRL is a mining operating company whose main activities include mining, processing and marketing of manganese and other non-ferrous metals. Following its incorporation, KRL is expected to commence mining activities in December 2019.
3. OUTLOOK
Copper prices are expected to increase steadily premised on increased demand driven by increasingly demand from the following sectors: infrastructure developments, renewable energy and electronics. However, continued uncertainty around the US-China trade tensions and an economic slowdown in China is expected to keep price increases modest.
By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on Thursday, 26th December 2019
|
|
|
|
|
T | +260-211-232456 W href="http://www.sbz.com.zm">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 26 December 2019 |
|
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