Final Results Status and Update

Cambria Africa PLC

09 February 2024

 

Cambria Africa Plc

("Cambria" or the "Company")

Final Results Status and Update

Cambria Africa plc (AIM:CMB) ("Cambria" or the "Company"), will not be in a position to release audited results for the year ended 31 August 2023 ("FY23") by 29 February 2024 as required under AIM Rule 19 of the AIM Rules for Companies. As a result, the Company's shares will be suspended with effect from 7:30am on 1 March 2024 until such time as the audited results are published and sent to its shareholders.

The Company's cash flow remains positive, but significantly impacted by the depreciation of the currency.  The Company provides an update of the following components of NAV            :

·      Sale of Shareholding in A.F. Phillips (Pvt) Ltt.

In its investment update on 27 October 2022, the Company announced that it had concluded a conditional agreement to sell its 78.2% shareholding in AFP for $1.74 million in cash. The condition precedent of the agreement was the reorganization of the Company's subsidiaries to be approved by the Zimbabwe Revenue Authority by proving the ownership chain of each company. The process has taken much longer than expected. This is partly due to complex ownership structures and partly due to inadequate management of the process.  This has now been addressed and the Company is led to believe it will meet the conditions precedent of the conditional agreement soon.

·      Commercial Properties

The Company has begun to actively market it prime commercial properties in Harare. The Company expects any sale to be at the holding level.  The combined properties were last valued in January 2022 at $2.3 million.

·      Recovery of Legacy Debts

$1.3 million in Legacy Debts due to the Company from its subsidiaries and deposited with the Reserve Bank in 2019. As announced on 14 September 2023, The Company had recovered $407,350 as of August 2023, however the Board notes that repayments from the Ministry of Finance have stalled. Ministry officials assure us of the Ministry's commitment to fund the balance of the Legacy Debts.

·      Old Mutual Shares on the ZSE

The Company owns 204,000 Old Mutual shares. Since mid-2020, trading of Old Mutual shares on the Zimbabwe Stock Exchange (ZSE) was suspended. Prior to the suspension in 2020, fungibility of shares in dual/multi-listed companies such as Old Mutual was also suspended. This has prevented the Company from repatriating 204,000 Old Mutual shares to the Johannesburg Stock Exchange (JSE), where they were originally purchased. The Company has applied to the Ministry of Finance for a dispensation to return these shares to the JSE.

·      Cash and Cash Equivalents

Outside Zimbabwe, as of 8 February 2024, the Company holds about $1.45 million in cash reserves earning an average of 4.9% p.a. In Zimbabwe, the Company holds US denominated accounts, gold coins, local currency, and shares with an approximate value of $150,000.

The Company remains steadfast in its efforts to minimize overhead and administrative expenses wherever possible to maximize and protect NAV. The Board sees value in its listing and is exploring avenues to capitalize on its listing while minimizing the associated costs.

Contacts
Cambria Africa Plc	www.cambriaafrica.com
Samir Shasha	[phone]
WH Ireland Limited
James Joyce / Sarah Mather	[phone]

 

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