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  Communiqué de la société ZCCM du 31/05/2018

  31/05/2018 - 14:00

ZCCM-IH 2017 Results


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: +260-211-232456

Website: www.sbz.com.zm

APPROVAL

The captioned Notice or Announcement has been approved by:

  • the Lusaka Securities Exchange
  • the Securities and Exchange Commission
  • 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, 31st May 2018

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 Thursday, 31st May 2018