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: +260-211-232456
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-accoun ted 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
