2017 ZCCM-IH Annual Results

RNS Number : 8444P

ZCCM Invs.Hldgs PLC

31 May 2018

 

SENS ANNOUNCEMENT

(the "Notice" or "Announcement")

ISSUER

ZCCM INVESTMENTS HOLDINGS PLC ("ZCCM-IH")

[Incorporated in the Republic of Zambia]

Company registration number:    119540000771

Share Code:                                          ZCCM-IH

ISIN:                                                      ZM0000000037

Authorised by:                           Chabby Chabala - Company Secretary

SPONSOR

STOCKBROKERS ZAMBIA LIMITED

[Member of the Lusaka Securities Exchange]

[Regulated and licensed by the Securities and Exchange Commission of Zambia]

Contact Number:                       [phone]

Website:                                    www.sbz.com.zm

APPROVAL

The captioned Notice or Announcement has been approved by:

i.     the Lusaka Securities Exchange

ii.    the Securities and Exchange Commission

iii.   Stockbrokers Zambia Limited

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: 31 May 2018

ZCCM INVESTMENTS HOLDINGS PLC

Incorporated in the Republic of Zambia

Company Registration number:  119540000771

["ZCCM-IH" or "the Company"]

Share Code:                                                    ZCCM-IH

ISIN:                                                                  ZM0000000037

Authorised by:                                                Chabby Chabala - Company Secretary

CONSOLIDATED ABRIDGED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

In accordance with the requirements of the Securities Act No. 41 of 2016 and Lusaka Securities Exchange Listings Rules, ZCCM-IH Plc announces its audited annual financial statements for the year ended 31 March 2017.

ABRIDGED GROUP STATEMENT OF COMPREHENSIVE INCOME YEAR ENDED 31 MARCH 2017
		Audited		Audited
		2017		2016
		ZMW'000		ZMW'000
Revenue		95,345		198,661
Gross profit		(14,516)		18,293
Operating profit/(loss)		847,866		(857,921)
Net finance income		585,646		203,247
Share of (loss)/profit of equity accounted investees		(189,233)		(2,210,199)
Loss before tax		1,244,279		(2,864,873)
Income tax credit/(expense)		(515,445)		(47,356)
Loss for the period		728,834		(2,912,229)
Items that will never be reclassified to profit or loss
Revaluation of PPE		-		16,748
Deferred tax on revaluation		786		(4,733)
Actuarial (loss)/gain on defined benefit pension plans		(465)		983
Deferred tax on defined benefit actuarial loss		163		(344)
		484		12,654
Items that are or maybe reclassified to profit or loss
Foreign currency translation differences-equity-accounted investees		(1,122,104)		4,122,445
Equity-accounted investees- share of OCI		80,471		(266,601)
Other comprehensive income for the year net of tax		(1,041,149)		3,868,498
Total comprehensive income for the year		(312,315)		956,269
Earnings per share (K)		4.53		(18.11)
Basic and diluted earnings per share (K)		4.53		(18.11)

ABRIDGED GROUP STATEMENT OF FINANCIAL POSTION		Audited		Audited
AS AT 31 MARCH		2017		2016
ASSETS		ZMW'000		ZMW'000
Property, plant and equipment		144,842		1,030,284
Intangible assets		396		673
Investment property		61,157		100,778
Investments in associates		6,828,313		6,852,955
Financial assets at fair value through profit or loss		489,242		238,247
Inventories		44,124		35,349
Trade and other receivables		918,892		449,660
Deferred tax assets		415,548		698,304
Held-to-maturity investment securities		497,172		355,172
Cash and cash equivalents		178,931		35,850
Total Assets		9,578,617		9,797,272
EQUITY AND LIABILITIES
Capital and Reserves		8,013,913		8,326,228
Borrowings		192,062		292,644
Deferred tax liabilities		425,529		211,786
Trade and other payables		375,954		286,271
other Provisions		143,548		139,197
Retirement benefits		49,567		44,794
Provisions for environmental rehabilitation		145,610		263,491
Current tax liabilities		232,434		232,542
Bank overdraft		-		319
		9,578,617		9,797,272

ABRIDGED GROUP STATEMENT OF CASH FLOW		Audited		Audited
		2017		2016
		ZMW'000		ZMW'000
Net cash flow from operating activities		311,143		131,638
Net cash used in investing activities		(105,079)		(75,329)
Net cash outflow on financing		(63,508)		(64,204)
(Decrease)/increase in cash and cash equivalents		142,556		(7,895)
Effect of movement in exchange rates on cash held		844		(356)
Cash and cash equivalents at the beginning of the year		35,531		43,782
Cash and cash equivalents at the end of the year		178,931		35,531

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2017	Share capital	Share premium	Revaluation reserve	Translation reserve	Retained earnings	Total
Balance at 1 April 2015	1,608	2,089,343	13,724	2,207,752	3,057,532	7,369,959
Total comprehensive income
Loss for the year	-	-	-	-	(2,912,229)	(2,912,229)
Other comprehensive income:						-
Revaluation surplus on PPE			16,748			16,748
Deferred tax on revaluation reserve			(4,733)			(4,733)
Currency translation - equity accounted investees	-	-	-	4,122,445	-	4,122,445
Amortisation of revaluation surplus	-	-	(941)	-	941	-
Actuarial loss on defined benefit	-	-	-	-	983	983
Share of associates' OCI	-	-	235,217	(501,818)	-	(266,601)
Deferred tax on defined benefit actuarial loss	-	-	-	-	(344)	(344)
Total comprehensive income	-	-	246,291	3,620,627	(2,910,649)	956,269
Balance at 31 March 2016	1,608	2,089,343	260,015	5,828,379	146,883	8,326,228
Balance at 1 April 2016	1,608	2,089,343	260,015	5,828,379	146,883	8,326,228
Total comprehensive income
Profit for the year	-	-	-	-	728,834	728,834
Other comprehensive income:
Deferred tax on revaluation reserve	-	-	786	-	-	786
Currency translation - equity accounted investees	-	-		(1,122,104)	-	(1,122,104)
Amortisation of revaluation surplus	-	-	(15,138)	-	15,138	-
Actuarial loss on defined benefit	-	-			(465)	(465)
Share of associates' OCI	-	-	106	80,365	-	80,471
Deferred tax on defined benefit actuarial loss	-	-	-	-	163	163
Total comprehensive income	-	-	(14,246)	(1,041,739)	743,670	(312,315)
Balance at 31 March 2017	1,608	2,089,343	245,769	4,786,640	890,553	8,013,913

Commentary on financial results and performance

·     The Group's performance improved during the year owing to increase in copper production for most major mining companies. The increased production benefited from stability in energy supply and improvement in copper prices on the world market in the last quarter of 2016 and the first quarter of 2017. Copper prices on the London Metal Exchange (LME) increased from US$4,848/ton at 31 March 2016 to US$5,858/ton at 31 March 2017.

·     The Group recorded an operating profit of K848 million (2016 Loss: K858 million), largely attributable to the recovery of K1, 923 million impairment from investee companies whose performance improved during the year.

·     The Group's share of losses from equity accounted investee companies significantly reduced by 91% from K2, 210 million in 2016 to K189 million in 2017 owing to investee companies improved performance.

·     The Profit after tax was K729 million (2016: Loss K2,912 million)

·     Total assets marginally reduced by 2% from K9, 797 million to K9, 579 million largely on account of impairment of Ndola Lime Company Limited (NLC) plant (the 100% subsidiary of ZCCM-IH). As a result of a continuing loss making position and operational challenges experienced by NLC, assets amounting to K861 million were impaired during the year.

·     During the year, ZCCM-IH increased its equity shareholding in Investrust Bank Plc (Investrust) from10.6% to 45.4% through the rights offer and to 71% (subsequent to the year under review through of a mandatory offer to Investrust's minority shareholders).

·     Subsequent to the period under review, ZCCM-IH's subsidiary Mawe Exploration and Technical Services Limited which was scheduled for dissolution in prior year was formally in dissolved in April 2017.

Outlook

Copper prices are expected to increase steadily premised on increased demand from high copper consumer countries. ZCCM-IH's performance is expected to improve as a result of the increase in copper prices which drive the performance of the mining portfolio. Furthermore, as a result of good rains experienced during the 2016/17 season, the generation capacity of hydroelectricity is expected to improve thereby stabilising energy supply.

In response to the positive outlook, ZCCM-IH will implement its new Strategic Plan hinged on expansion of its investment in various sectors of the economy. 

Proposed Dividend

The Directors resolved to recommend that a final dividend of K0.84 per share be declared for the year ended 31 March 2017.

By Order of the Board

Chabby Chabala

Company Secretary

1 June 2018

First Issued in Lusaka, Zambia on Thursday, 31^st May 2018

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First Issued on Thursday, 31st May 2018

 

END

 

 

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