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Unaudited Financial Results for the six months ended 31 March 2014
Cafca Limited
Share Code: CAC
ISIN Code: ZW0009011942
Notice To Shareholders
Unaudited Financial Results for the six months ended 31 March 2014
All figures in United Stated Dollars
UNUADITED UNAUDITED AUDITED
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
30 SEPETMBER
31 MARCH 2014 31 MARCH 2013 2013
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME $ $ $
Revenue 10,047,837 12,719,013 23,858,213
Operating profit 1,060,325 831,597 2,068,342
Net finance (cost)/income (50,738) (59,476) (157,455)
Profit Before Income tax 1,009,587 772,121 1,910,887
Income tax expense (230,009) (198,167) (494,378)
Profit for the period 779,578 573,954 1,416,509
Other Comprehensive Income: - - -
Total Comprehensive Income for the period 779,578 573,954 1,416,509
Issued Ordinary Shares (weighted) (number) 32,667,333 32,609,000 32,609,000
Basic Earnings per share (cents) 2.39 1.76 4.34
Diluted Earnings per share(number) 32,964,000 32,964,000 32,964,000
Diluted Earnings per share (cents) 2.37 1.74 4.30
Headline Earnings per share(number) 32,667,333 32,964,000 32,609,000
Headline Earnings per share (cents) 2.39 1.76 4.34
UNAUDITED UNAUDITED AUDITED
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
30 SEPTEMBER
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 MARCH 2014 31 MARCH 2013 2013
$
$ $
ASSETS
Non Current Assets
Property, plant and equipment 3,132,685 3,105,667 3,092,748
Current Assets
Inventory 4,638,642 7,117,370 5,750,874
Trade and other receivables 5,560,192 3,822,670 5,118,150
Cash and cash equivalents(excluding bank overdraft) 43,381 21,945 64,784
Total Assets 13,374,900 14,067,652 14,026,556
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital 326 326 326
Share premium 87,699 80,699 80,699
Share option reserve 73,129 96,497 46,346
Retained earnings 10,891,826 9,269,694 10,112,248
Total Equity 11,052,980 9,447,216 10,239,619
LIABILITIES
Non-current assets
Deferred income tax liabilities 650,339 738,255 680,948
Current liabilities
Trade and other payables 1,625,277 2,498,527 1,363,989
Bank overdraft - 1,383,654 1,742,000
Current income tax liabilities 1,671,581 3,882,181 3,105,989
Total liabilities 2,321,920 4,620,436 3,786,937
Total equity and liabilities 13,374,900 14,067,652 14,026,556
STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Share Option Retained
Reserve earnings Total
$ $ $ $ $
Balance at 1 October 2012 326 80,699 65,497 8,695,739 8,842,261
Transfer of non distributable reserve
Transaction with owners:
Share options - - (19,151) - (19,151)
Comprehensive income:
Profit for the year - - 1,416,509 1,416,509
Balance at 30 September 2013 326 80,699 46,346 10,112,248 10,239,619
Balance at 1 October 2013 326 80,699 46,346 10,112,248 10,239,619
Transaction with owners:
Share options - 7,000 26,783 - 33,783
Profit for the period 779,578 779,578
Balance at 31 March 2014 326 87,699 73,129 10,891,826 11,052,980
ABRIDGED STATEMENT OF CASH FLOWS
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
31 MARCH 2014 31 MARCH 2013 30 SEPTEMBER 2013
Profit before income tax 1,009,587 772,121 1,910,887
Depreciation 123,192 110,485 223,702
Share option charge/(credit) 26,783 31,000 (19,151)
(Profit)/loss on sale of property plant,
and equipment (5,500) - (1,130)
Finance costs 50,738 59,476 157,950
Finance income - - (495)
Change in working capital 931,278 (1,242,971) 2,306,494)
Net cash generated from/(utilised in)
operations 2,136,278 (269,889) (34,731)
Finance costs (50,738) (59,476) (157,950)
Tax paid (214,315) (193,414) (546,931)
Net cash generated from/(utilised in) operating
activities 1,871,225 (522,779) (739,117)
Acquisition of plant and equipment (163,129) (149,912) (250,210
Proceeds from sale of property plant and
equipment 5,500 - 1,130
Net utilised in investing activities 157,929 (149,912) (249,080)
CASHFLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital 7,000 - -
Net cash generated from financing activities 7,000 - -
Net increase/decrease)in cash and cash equivalents 1,720,596 (672,691) (988,197)
Cash and cash equivalents at beginning of the year(1,677,215) (689,019) (689,018)
Cash and cash equivalents at end of period 43,381 (1,361,710) (1,677,215)
SIX MONTHS TO SIX MONHTS TO FULL YEAR TO
31 MARCH 2014 31 MARCH 2013 30 SEPTEMBER 2013
Capital expenditure 163,129 149,378 250,210
Depreciation 123,192 110,485 223,702
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).
2.The financial statements are presented in United States Dollars which is the functional currency of the Group.
3.Related party transactions
CBI-Electric African Cables-A division of ATC (Pty) Ltd owns 71% of the company and the remaining 29% are widely held.
The following transactions were carried out with related parties:
UNDAUDITED UNAUDITED AUDITED
SIX MONTHS TO SIX MONTHS TO TWELVE MONTHS
31 MARCH 2014 31 MARCH 2013 30 SEPTEMBER
2013
Purchases during the year from holding company
CBI-Electric African Cables a division of ATC(Pty) Ltd 1,177,742 5,267,953 7,490,345
CBI Electric Aberdare/ATC Telecoms Cable(Pty) Ltd 51,826 - 481,276
Goods and services are bought from related parties on
Commercial terms and conditions.
Sales during the year to holding company
CBI-Electric African Cables a division of ATC(Pty) Ltd - 1,321,383 1,586,610
The above sales were done at arm’s length
Balances arising from purchase of goods and services
Payables to related parties
CBI-Electric African Cables a division of ATC(Pty) Ltd 644,543 703,260 -
CBI Electric Aberdare/ATC Telecoms Cable(Pty) Ltd - - -
There were no loans made to directors of the Group companies
Key management remuneration
Key management includes directors(executive and non-executive)
and executive managers(members of the executive)
Salaries and short term benefits 293,435 299,117 436,551
Share options 26,783 31,000 (19,151)
Commitments
The Group had no significant capital commitments authorised by directors or contracted for at the reporting period.
Segment 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 decisions.The Group has one product line,and operates in one industry sector.
UNUADITED UNAUDITED AUDITED
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
30 SEPETMBER
31 MARCH 2014 31 MARCH 2013 2013
Revenue from customers domiciled in Zimbabwe 9,317,844 10,421,026 21,267,729
Revenue from external customers 729,993 2,297,987 2,590,484
Total 10,047,837 12,719,013 23,858,213
Revenue from transations with single local customers that amounted to 10% of more of each of the Group’s revenues equal approximately to US
$3,837,254
These revenues are attributable to customers domiciled in Zimbabwe .The breakdown of the major component of the total revenue from individual
local customers with revenue of at least 10% is as follows:
Energy trans0mission 3,857,254 1,764,638 6,385,458
Distributors - 1,378,995 2,600,875
Total 3,857,254 3,143,634 8,986,333
The segment information provided to the executive team for the reportable segments for six months to 31 March are as follows:
Revenue from customers 10,047,837 12,719,013 23,858,213
Depreciation 123,192 110,485 223,702
Share option/(credit) 23,783 31,000 (19,151)
Profit before income tax 1,009,587 772,121 1,910,887
Net finance costs (50,738) (59,476) (157,455)
Income tax expense (230,009) (198,167) (494,378)
Total assets 13,374,900 14,067,652 14,026,556
Total liabilities 2,321,920 4,620,436 3,786,937
COMMENTARY AND OVERVIEW OF RESULTS
Revenue for the six months at $10,047 million was 21% below the comparative period last year owing to a change in strategy to reduce exports to
focus on the project of recycling copper locally.
The impact of moving from low margin exports to the higher margin recycling project was reflected in the much improved operating profit which
increased by 27% from $831 597 to $1 060 325. The benefit to the country of recycling and not importing copper for the 6 months was $3,15
million.
Finance costs were down to $50 738 from the comparative period last year of $59 476 but also well down from the last 6 month period of $97 979.
Finance costs for the remainder of the year should be minimal as borrowings have been eliminated and we do not intend to borrow again this year.
After providing for taxation, profit for the half year was $779 578 against the comparative period last year of $573 954 an increase of 36% which
also translated into a basic earnings per share increase of 36%.
The consolidated statement of Financial Position continues to strengthen with borrowings eliminated and current assets covering current
liabilities 6 times.
Until there is an injection of capital into the economy we do not expect any improvement in local sales and will continue to be heavily reliant
on our copper recycling project. As the process of recycling becomes more efficient this will release capacity and focus towards increasing
exports again.
DIVIDEND
The Directors have recommended waiving payment of an interim dividend to conserve cash resources for investment in the strategic priorities of
the company.
By order of Board
C Kangara
Company Secretary
08 May 2014
Directors: H.P.Mkushi (Chairman), R.N. Webster (Managing), E.T.Z.Chidzonga
A.E.Dickson, A.Mabena, S. Mangwengwende
Date: 13/05/2014 03:56:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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