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Audited Financial Results for the year ended 30 September 2013
Cafca Limited
Share Code: CAC
ISIN Code: ZW0009011942
Notice To Shareholders
Audited Financial Results for the year ended 30 September 2013
All figures in United Stated Dollars
30SEPT
2012
30 SEPT 2013
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME $ $
Revenue 23,858,213 23,119,929
Operating profit 2,068,342 2,382,058
Net finance cost (157,455) (89,780)
Profit before taxation 1,910,887 2,292,278
Taxation (494,378) (620,239)
Profit for the year 1,416,509 1,672,039
Other comprehensive income: - -
Total comprehensive income for the year 1,416,509 1,672,039
Issued Ordinary Shares (weighted) (number) 32,609,000 32,609,000
Basic Earnings per share (cents) 4.34 5.13
Diluted Earnings per share(number) 32,919,000 32,964,000
Diluted Earnings per share (cents) 4.30 5.07
Headline earnings per share(number) 32,609,000 32,609,000
Headline earnings per share(cents) 4.34 5.13
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION AT 31 SEPT 2013 AT 31 SEPT 2012
ASSETS $ $
Non-Current Assets 3,092,748 3,066,240
Property ,plant and equipment 3,092,748 3,066,240
Current assets
Inventories 5,750,874 6,428,876
Trade and other Receivables 5,118,150 3,439,738
Cash and cash equivalents 64,784 419,631
Total Assets 14,026,556 13,354,485
Equity attributable to owners of the
parent
Share Capital 326 326
Share premium 80,699 80,699
Share option reserve 46,346 65,497
Retained earnings 10,112,248 8,695,739
Total Equity and Liabilities 10,239,619 8,842,261
LIABILITIES
Non-current liabilities
Deferred income tax liabilities 680,948 732,929
Current liabilities
Trade and other payables 1,276,041 2,441,550
Provisions 87,948 228,523
Bank overdraft 1,742,000 1,108,649
Current tax liabilities - 573
Total liabilities 3,786,937 4,512,224
Total equity and liabilities 14,026,556 13,354,485
STATEMENT OF CHANGES IN
EQUITY
Share Share Share Non-
Capital Premium Option distributable Retained
reserve reserve earnings Total
$ $ $ $ $ $
3,891,
Balance at 1 October 2011 326 80,699 51,475 992 3,132,032 7,156,200
Transfer of non- (3,891,
distributable reserve - - - 668) 3,891,668 -
Transaction with owners:
Share options - - 14,022 - - 14,022
Total comprehensive income
for the year - - - - 1,672,039 1,672,039
Net profit for the year - - - - 1,672,039 1,672,039
Other comprehensive income
for the year - - - - - -
Balance at 30 September
2012 326 80,699 65,497 - 8,695,739 8,842,261
Balance at 1 October 2012 326 80,699 65,497 - 8,695,739 8,842,261
Transaction with owners:
Share options - - (19,151) - - (19,151)
Total comprehensive income
for the year - - - - 1,416,509 1,416,509
Profit for the period - - - - 1,416,509 1,416,509
Other comprehensive income
for the year - - - - - -
Balance at 30 September
2013 326 80,699 46,346 - 10,112,248 10,239,619
CONSOLIDATED STATEMENT OF CASH FLOWS
30 September 2013 30 September 2012
Profit before income tax 1,910,887 2,292,278
Depreciation 223,702 213,621
Share (credit)/arge (19,022) 14,022
(Profit)/profit on sale of property plant,
and equipment (1,130) 1,940
Finance income (495) (145)
Finance costs 157,950 89,925
Working capital changes:
Decrease/(increase)in inventories 678,002 (1,343,989)
Increase/decrease in trade and other payables (1,678,412) 257,689
Decrease in trade and other payables (1,306,084) (887,235)
Net cash(utilised in)/generated from operations (34,731) 638,106
Tax paid (546,931) (615,686)
Finance costs (157,950) (89,925)
Finance income 495 145
Net cash utilised in operating activities (739,117) (67,360)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property ,plant and equipment (250,210) (116,352)
Proceeds from sale of property,plant and equipment 1,130 1,900
Net cash utilised in investing activities (249,080) (114,452)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital - -
Net cash generated from financing activities - -
Net decrease in cash and cash equivalents (988,198) (181,812)
Cash and cash equivalents at the beginning of the year (689,018) (507,206)
Cash and cash equivalents at the end of year (1,677,018) (689,018)
NOTES THE FINANCIAL STATEMENTS
1.The principal accounting policies of the group, have been followed in all
material
respects and conform to International Financial Reporting Standards(IFRS) and the
Zimbabwe Companies Act(Chapter 24:03).This publication should be read in
conjunction with financial statements for the year ended 30 September 2013,which
have been prepared in accordance with IFRSs and the Zimbabwe Companies Act(Chapter
24:03)
2. The auditors, PricewaterhouseCoopers, have audited the financial statements
of the Group for the year ended 30 September 2013.The report contained in the
financial statements, which is available at the Company’s registered office, is
unqualified.
3.The financial statements are presented in United States Dollars which is
the functional currency of the group.
4.Related party transactions
CBI-Electric African Cables-a division of ATC(Proprietary)Limited owns 71% of
the company and the remaining 29% are widely held.
The following transactions were carried out with related parties:
30 September 2013 30
September 2012
(i)Purchases during the period from the holding company:
CBI-Electric African Cables – a division of ATC (Proprietary)Limited 7,490,345
12,094,689
CBI-Electric Aberdare/ATC Telecoms Cable(Proprietary) Limited 481,276
-
Goods and services are brought from related parties on commercial
terms and conditions.
7,971,621
12,094,689
Sales :-
CBI-Electric African Cables-a division of ATC(Proprietary)Limited 1,586,610
765,160
The above sales were done at arm’s length
(ii)There were no loans made to directors or management of the
Group companies.
(iii)Year end balances arising from purchase of goods/services:
Payables to related parties:
CBI-Electric African Cables-a division of ATC (Proprietary)Limited 270,140
853,867
CBI-Electric Aberdare/ATC Telecoms Cable(Proprietary) Limited 481,276
-
Total 751,416
853,867
(iv)Key management remuneration:
Salaries and other short term benefits(executive and non-executive)
And executive managers 436,551 597,750
Share options (credit)/charge (19,151) 14,022
Total 417,400 611,772
5.Segmentation information
The executive management team is the Group’s chief operating decision maker.
Management has determined the operating segments based on reports reviewed by the
executive team that are used to make strategic decision. The Group has one product
line, and operates in one industry sector.
Revenue is primarily from customers who are domiciled in Zimbabwe and other
revenue is from external customers domiciled in South Africa, Zambia and Malawi.
Revenue analysis
30 September 2013 30 September 2012
Revenue for customers domiciled in Zimbabwe 21,267,729 20,369,835
Revenue from external customers 2,590,484 2,750,094
23,858,213 23,119,929
Revenue from transactions with single and local customers that amount to 10% of
more each of the Group’s
revenues , equal approximately $8,986,333(2012 $11,146,875).These revenues are
attributable to customers
domiciled in Zimbabwe. The breakdown of the major component of the total revenue
from three major
customers of at least 10% is as follows:
30 September 2013 30
September 2012
6,385,458
3,988,420
2,600,875
3,804,276
-
3,354,179
8,986,333
11,146,875
The total of non-current assets located in Zimbabwe is $3,092,748
(2012:$3,066,240) and there
are no non-current assets located in other countries.
The segment information provided to the executive team for the product reportable
segments for the year ended 30 September are as follows:
30 September 2013 30 September
2012
Revenue from customers 23,858,213 23,119,929
Profit before interest and taxation 2,068,342 2,382,058
Net interest expense 157,455 89,780
Income tax expense 494,378 620,239
Total assets 14,026,556 13,354,485
Liabilities 3,786,937 4,512,224
6.The group had no significant capital commitments authorised by directors or
contracted for at the reporting period(2012:nil).
7.Share options
The decrease in the share option reserve is due to:-
(i) a decrease in the share price from 53 cents to 35 cents
(ii) a forfeiture of 45,000 share options
30 September 2013 30 September 2012
8.Property plant and equipment
Capital expenditure 250,210 116,352
Depreciation 223,702 213,621
9.There are no subsequent events that would have any effect on these financial
results.
COMMENTARY AND OVERVIEW OF RESULTS
CAFCA increased volume sales by 8% year on year which only translated into
increased turnover of 3% due mainly to sales mix of more aluminium which sells at
less dollars per tonne than copper and also due to increased export volume which
also sells at less price per tonne.
Costs increased in line with inflation but the impact of depressed margins on
exports and combating imports on price locally resulted in a reduced operating
profit of $2,068,342 being 13% below the previous year.
Borrowings increased to $1,742,000 from $1,108,649 mainly to fund the copper
barter deal with ZETDC – this resulted in a 76% increase in finance charges to
$157 455.
Profit after tax at $1,416,509 was 15% down on the previous year as was the basic
and headline earnings per share.
The consolidated statement of financial position reflected a much improved
position despite the fact that borrowings increased by $633 351. Current assets of
inventories and receivables at $10,869,024 were 3.5 times the current liabilities
of borrowings and payables.Net worth of the Company increased by $1.4 million.
The budget for 2014 has been based on a worst case scenario of no growth due to
the tight liquidity being experienced in the overall economy. The focus will
continue to be on the copper barter project whilst our strategy of combating
imports on price will remain. Should government intervene to assist local
manufacturers together with introducing liquidity in the market then there is no
doubt we will see growth in the Company in 2014.
DIVIDEND
The Directors have recommended waiving payment of a dividend due to the strategic
need to finance debtors and eliminate borrowings.
C Kangara
Company Secretary
19 November 2013
Directors: H.P. Mkushi (Chairman) R.N. Webster (Managing)
E.T.Z Chidzonga A.E. Dickson A. Mabena S.E Mangwengwende T.A Taylor
Date: 19/11/2013 12:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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