TIDMZCC
RNS Number : 0151X
ZCCM Invs.Hldgs PLC
16 December 2019
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
[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: 16 December 2019
ZCCM INVESTMENTS HOLDINGS PLC
(Incorporated in the Republic of Zambia)
ABRIDGED AUDITED FINANCIAL STATEMENTS FOR THE YEARED 31 MARCH
2019
INTRODUCTION
In compliance with the requirements of the Securities Act No. 41
of 2016, ZCCM Investments Holdings Plc ("ZCCM-IH Plc") announces
the provisional financial statements results of the Company and its
subsidiary (Collectively referred to as the "the Group") for the
year ended 31 March 2019.
STRUCTURE OF THE ZCCM-IH GROUP
The ZCCM-IH Group consist of the following seven (7) subsidiary
companies:
Name Shareholding
ZCCM-IH Parent Company
---------------
Ndola Lime Company Limited 100%
---------------
Kariba Minerals Limited 100%
---------------
Misenge Environmental and Technical Services
Limited 100%
---------------
Mushe Milling Limited 100%
---------------
Kabundi Resources Limited 100%
---------------
Investrust Bank Plc 71.4%
---------------
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%
------------------
NFCA Africa Mining Plc 15.00%
------------------
Mopani Copper Mines Plc 10.00%
------------------
Copper Tree 10.00%
------------------
Oranto Oil Block 10.00%
------------------
ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
Audited Audited
2019 2018
ZMW'000 ZMW'000
Revenue 155,611 60,982
Gross profit 79,096 (17,487)
Operating (loss)/profit (614,412) 46,550
Net finance income 39,957 (132,485)
Share of profit of equity accounted investees 973,213 689,207
Profit before tax 398,758 603,272
Income tax (expense)/credit 49,105 241,287
Profit from continuing operations 447,863 844,559
Loss from discontinued operations - (1,610)
Profit for the year 447,863 842,949
Earnings per share (k) 2.79 5.25
Basic and diluted earnings per share (k) 2.79 5.25
ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
Audited Audited
2019 2018
ZMW'000 ZMW'000
Revenue 133,323 199,841
Operating (loss)/profit (366,877) 343,748
Net finance income 96,927 (123,835)
(Loss)/profit before tax (269,950) 219,913
Income tax credit/(expense) 162,426 213,500
(Loss)/ profit for the year (107,524) 433,413
Earnings per share (k) (0.67) 2.70
Basic and diluted earnings per share (k) (0.67) 2.70
ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION
Audited Audited
2019 2018
Assets ZMW'000 ZMW'000
Property, plant and equipment 187,268 143,164
Intangible assets 8,532 367
Investment property 251,230 64,473
Investments in associates 10,276,405 7,355,864
Financial assets at fair value through
profit or loss 584 336,082
Inventories 104,681 37,026
Trade and other receivables 1,153,236 1,022,880
Deferred tax assets 601,589 497,609
Term deposits 754,438 535,384
Cash and cash equivalents 74,480 339,386
Total assets 13,412,443 10,332,235
Equity and liabilities
Capital and reserves 11,124,784 8,940,346
Borrowings 104,357 133,703
Deferred tax liabilities 245,455 256,072
Trade and other payables 1,453,503 488,989
Provisions 127,590 139,785
Retirement benefits 34,180 32,422
Provisions for environmental rehabilitation 145,460 118,081
Current tax liabilities 177,114 222,837
Total equity and liabilities 13,412,443 10,332,235
ABRIDGED COMPANY STATEMENT OF FINANCIAL POSITION
Audited Audited
2019 2018
Assets ZMW'000 ZMW'000
Property, plant and equipment 85,819 71,089
Intangible assets 671 367
Investment property 157,606 64,473
Investments in subsidiaries 69,987 -
Investments in associates 9,703,369 4,694,323
Financial assets at fair value through
profit or loss - 336,082
Trade and other receivables 842,664 1,017,927
Held-to-maturity investment securities 727,554 535,384
Cash and cash equivalents 26,276 337,942
Total assets 11,613,946 7,057,587
Equity and liabilities
Capital and reserves 8,661,948 5,790,154
Borrowings 103,271 -
Deferred tax liabilities 2,306,727 754,221
Trade and other payables 77,342 56,223
Provisions 127,590 139,785
Retirement benefits 5,513 4,340
Provisions for environmental rehabilitation 112,905 86,566
Current tax liabilities 218,650 226,298
Total equity and liabilities 11,613,946 7,057,587
ABRIDGED GROUP STATEMENT OF CASH FLOWS
Audited Audited
2019 2018
ZMW'000 ZMW'000
Net cash flow from operating activities (238,880) 16,323
Net cash used in investing activities 38,181 198,218
Net cash outflow on financing (64,207) (54,086)
Increase in cash and cash equivalents (264,906) 160,455
Cash and cash equivalents at the beginning
of the year 339,386 178,931
Cash and cash equivalents at the end of
the year 74,480 339,386
================= =================
ABRIDGED COMPANY STATEMENT OF CASH FLOWS
Audited Audited
2019 2018
ZMW'000 ZMW'000
Net cash flow from operating activities (69,732) 160,525
Net cash used in investing activities (345,205) (652)
Net cash outflow on financing 103,271 (202)
Increase in cash and cash equivalents (311,666) 159,671
Cash and cash equivalents at the beginning
of the year 337,942 178,271
Cash and cash equivalents at the end of
the year 26,276 337,942
================ ================
ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY
Audited Audited
2019 2018
ZMW'000 ZMW'000
Balance at 1 April 8,771,841 8,013,913
Profit for the year 447,863 842,949
Other comprehensive income 2,138,241 83,484
Dividend paid (233,161) -
----------- ----------
Balance at 31 March 11,124,784 8,940,346
IFRS expected credit loss adjustments - (168,505)
----------- ----------
Restated balance at 31 March 11,124,784 8,771,841
----------- ----------
ABRIDGED COMPANY STATEMENT OF CHANGES IN EQUITY
Audited Audited
2019 2018
ZMW'000 ZMW'000
Balance at 1 April 5,790,154 5,491,126
(Loss)/ profit for the year (107,524) 433,413
Other comprehensive income 3,212,479 (134,385)
Dividend paid (233,161) -
---------- ----------
Balance at 31 March 8,661,948 5,790,154
========== ==========
1. FINANCIAL PERFORMANCE
The Group reported a profit for the year of ZMW448 million
(2018: ZMW843 million), mainly due to the following:
-- increase in net finance income from a net finance cost of
ZMW132.49 million recorded in 2018 to a net finance income of
ZMW39.96 million in recorded in 2019; and
-- increase in share of profit from equity accounted investee
companies from ZMW689 million recorded in 2018 to ZMW973 million
recorded in 2019, mainly on account of improved performance of
Kansanshi Mining Plc and Maamba Collieries Limited whose combined
share of profit accounted for 84% of the recorded amount for the
year.
Despite the Group reporting a profit for the year of ZMW448
million, there was a decline of 47% compared to last year mainly
due to recorded losses from Ndola Lime Company Limited, and
Investrust Bank Plc (Investrust) amounting ZMW246 million (2018:
ZMW190 million) and ZMW79 million (2018: no comparison applicable
as Investrust was not a subsidiary then), respectively.
The Company reported a loss for the year of ZMW108 million
(2018: Profit ZMW433 million), mainly due to reduction in other
income, impairment losses and fair value loss amounting to ZMW360
million, ZMW 373 million and ZMW 336 million respectively.
Group total assets increased by 30% to ZMW13,412 million in 2019
from ZMW10,332 million in 2018. This is attributed to increase in
property, plant and equipment, investment property, investments in
associate, inventories, trade and other receivables as well as
held-to-maturity investment. The largest contributor to total asset
increase was the enhanced values of investments in associates from
ZMW 7 355 million in 2018 to ZMW 10,276 million as a result of
improved performance of Kansanshi Mining Plc, Maamba Collieries
Limited and exchange gains arising from translation of these US
Dollar denominated investments. The Zambian Kwacha depreciated from
ZMW9.49 per US Dollar as at 31 March 2018 to ZMW12.19 per US Dollar
as at 31 March 2019.
2. SIGNIFICANT DEVELOPMENTS
During the year the Group has invested in several investment
projects in line with the Group's 2018-2023 Strategic Plan in a
quest to maximize shareholder value.
The significant developments are detailed below:
Investrust Bank Plc
Subsequent to the reporting date, Investrust Bank Plc and ZCCM
Investments Holdings Plc entered into a Non-Cumulative, Redeemable
Non-Voting Preference Share Subscription Agreement. The agreement
would result in ZCCM-IH recapitalizing the Bank with ZMW 286
million. The recapitalization will improve the operations of the
bank and strengthen its competitive position.
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.
Kariba Minerals Limited (KML)
On 9th November 2018, ZCCM-IH and Gemfields signed a Share
Purchase Agreement for ZCCM-IH to purchase the additional 50% stake
in KML. This acquisition has resulted in ZCCM-IH owning 100% of
KML.
Kabundi Resources Limited
In March, 2019, the ZCCM-IH Board resolved to incorporate a
Special Purpose Vehicle, Kabundi Resources Limited ("KRL") a wholly
owned subsidiary. KRL 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.
Others
During the period under review, ZCCM-IH acquired a 49% interest
in Rembrandt Properties Ltd (developing a budget hotel and retail
outlet) and a further acquisition of a residential complex, all in
Lusaka.
3. OUTLOOK
Looking into the future, the Group will continue to execute the
2018-2023 strategy to reduce dependence on dividend income streams
which historically have been unstable and inconsistent. The
significant developments highlighted above are expected to have a
positive impact on the group's performance in the medium to long
term.
By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on Monday, 16(th) December 2019
Lusaka Securities Exchange Sponsoring Broker
==========================================================
T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a member
of the Lusaka Securities Exchange and is regulated
by the Securities and Exchange Commission of
Zambia
========================================================
First Issued on 16 December 2019
Click on, or paste the following link into your web browser, to
view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/0151X_1-2019-12-16.pdf
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACSLLFSFFRLRLIA
(END) Dow Jones Newswires
December 16, 2019 08:15 ET (13:15 GMT)
Grafico Azioni Zccm Investments (LSE:ZCC)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Zccm Investments (LSE:ZCC)
Storico
Da Apr 2023 a Apr 2024
