Directors' Half Year Summary- 30 September 2014

RNS Number : 7090A

ZCCM Invs.Hldgs PLC

24 December 2014

 

ZCCM INVESTMENTS HOLDINGS PLC

(Incorporated in the Republic of Zambia)

DIRECTORS' HALF-YEARLY SUMMARY FOR THE PERIOD ENDED 30 SEPTEMBER 2014

DIRECTORS' INTERIM SUMMARY

For the six months period ended 30^th September 2014

In compliance with the requirements of the "Securities Act, Cap 354 of the Laws of Zambia and the Listing Rules of the Lusaka Stock Exchange, ZCCM Investments Holdings Plc announces the unaudited results for the six months period ended 30^th September 2014.

Financial Performance

The Group achieved a turnover of K188.6 million for the six month period ended 30^th September 2014 which was 7% below the turnover of K203.7 million achieved during the six months to 30^th September 2013. The decline in Group turnover was mainly as a result of a decrease in dividends earned from K45.2 million during the same period in 2013 to K27.1 million in the six months ended 30^th September 2014.Further ,turnover for Ndola Lime Company Limited decreased by 19% to K96.1 million for the period ended 30^th September 2014 (September 2013: K118.4 million).However, Interest Income increased by 63% to K65.2 million (September 2013:K40 million).

Dividends were earned from Kansanshi Mining Plc (K22.6 million) and Chibuluma Mines Plc. (K4.5 million). 

Interest earned from treasury placements and fixed deposits amounted to K15.4 million (September 2013: K1.2 million). Other income earned was K9.9 million (September 2013: K3 million comprising mainly of Management fees amounting to K3.9 million (September 2012:K2.6 million). The cost of turnover was K129.6 million for the period to 30^th September 2014 (September 2013: K130 million). The Group realized an operating profit of K59 million which was lower than K73.7 million earned in the same period in 2013.

The Group recorded share of losses of Associate Companies of K45.2 million (September 2013: Profit: K97.5 million).Overall the performance of the Associate Companies was weak over the period. Konkola Copper Mines Plc and Lubambe Copper Mine Limited recorded losses, while Kansanshi Mining Plc recorded a profit during the period under review. The price of copper reduced to US$6,748 per ton as at 30 September 2014 compared to US$7,300 per ton as at 30^th September 2013 representing an 8% decrease. As a result, the Group recorded an operating loss of K49 million (September 2013: Profit K165 million).

The Group's Shareholders' Funds increased to K8,567 million from K4,759 million in 2013 mainly on account of the recapitalization by way of conversion of the K1.9 Billion debt into equity by the Government of the Republic of Zambia (GRZ). The recapitalization of the Company has significantly strengthened ZCCM-IH's balance sheet and positioned the Company to take on new opportunities.

Operations and Strategic Developments

ZCCM-IH Claw back Rights Offer

The Claw back rights offer opened on 12 May 2014 and was initially expected to close on 13 June 2014. However, in order to accommodate various shareholder representations that were made to the Company, the Rights Offer period was extended to close on 27 June 2014.The offer was for 8,920,957 shares (4 new shares for every 5 existing shares held on record date). The Rights Issue was underwritten by National Pension Scheme Authority (NAPSA) at an offer price of K29.23 per share.. On 25 July 2014, ZCCM-IH announced the results of the Claw back Rights Offer which indicated that out of the 8,920,957 shares available for subscription 651,545 shares (representing 7.3% of the claw back shares) were subscribed for by minority shareholders and 8,269,412 shares (representing 92.7% of the claw back shares) remained with NAPSA.

Dividend Policy

During its 65^th Board meeting held on 11 June 2014, the ZCCM-IH Board approved a dividend policy which is underpinned on the following general principles:

a)   The Company may pay at least 20% of the realized profits for a particular financial year;

b)   The Company may pay a dividend in a financial year when conditions for declaring a dividend are met; and

c)   All dividend declarations will take into account the Company's Free Cash Flow and investment needs.

Subsequent to the period under review and, following the approval of the Financial Statements for the year ended 31 March 2014, at their Annual General Meeting held on 07 October 2014, the shareholders approved a Dividend of K1.56 per share.

By Order of the Board

C Chabala

Company Secretary

 9 December 2014

GROUP INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 September 2014
			SIX MONTHS ENDED		SIX MONTHS ENDED
			30 September 2014		30 September 2013
			Consolidated		Consolidated
Income			K' 000		K' 000
Sales			96,342		118,409
Dividends			27,089		45,216
Interest Earned			65,200		40,035
Investment disposal			-		47
			188,631		203,707
Cost of turnover			(129,618)		(129,964)
Operating profit/(loss)			59,013		73,743
Exchange (loss)/gain			(66,283)		(1,191)
Environmental expenses			(1,459)		(80)
Interest charge			(733)		(1,473)
Royalty on minerals			(4,572)		(6,482)
Other income			9,973		3,026
Associate Companies Share of Profit/(loss)			(45,190)		97,458
Profit/(loss) before taxation			(49,251)		165,001
Income tax			(6,019)		(1,538)
Retained profit/(loss)			(55,270)		163,463
EPS			(0.34)		1.83

GROUP STATEMENT OF FINANCIAL POSITION AS AT 30  SEPTEMBER 2014
			30-Sep-14		30-Sep-13
			K' 000		K' 000
Assets Employed
Non current assets			6,881,562		5,840,871
Current assets			2,493,502		1,667,205
Total Assets			9,375,064		7,508,076
Equity and liabilities
Shareholders' funds			8,566,573		4,758,561
Non current liabilities			217,566		229,615
Current liabilities			590,925		2,519,900
Total Equity and liabilities			9,375,064		7,508,076

 

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