Wrap Text
Audited Financial Results: Year ended 30 Septemer 2014
Cafca Limited
Share Code: CAC
ISIN Code: ZW0009011942
Notice To Shareholders
Audited Financial Results for the year ended 30 September 2014
All figures in United Stated Dollars
30 SEPT 2014 30SEPT 2013
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME $ $
Revenue 23,607,380 23,858,213
Operating profit 2,720,066 2,068,342
Finance income 17,531 495
Finance cost (52,207) (157,950)
Profit before income tax 2,685,390 1,910,887
Income tax expense (657,775) (494,378)
Profit for the year 2,027,616 1,416,509
Other comprehensive income: - -
Total comprehensive income for the year 2,027,616 1,416,509
Issued Ordinary Shares (weighted) (number) 32,667,333 32,609,000
Basic Earnings per share (cents) 6.21 4.34
Diluted Earnings per share(number) 32,977,333 32,919,000
Diluted Earnings per share (cents) 6.16 4.30
Headline earnings per share(number) 32,667,333 32,609,000
Headline earnings per share(cents) 6.14 4.35
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 SEPT 2014 AT 31 SEPT 2013
ASSETS $ $
Non-Current Assets
Property ,plant and equipment 3,139,270 3,092,748
Available for sale financial assets 18,540 -
Total non current assets 3,157,810 3,092,748
Current assets
Inventories 7,203,847 5,750,874
Trade and other Receivables 3,307,196 5,118,150
Cash and cash equivalents(excluding overdraft) 1,247,782 64,784
Total Assets 14,916,635 14,026,556
Equity attributable to owners of the parent
Share Capital 326 326
Share premium 90,916 80,699
Share option reserve 38,505 46,346
Retained earnings 12,139,864 10,112,248
Total Equity and Liabilities 14,269,611 10,239,619
LIABILITIES
Non-current liabilities
Deferred income tax liabilities 633,336 680,948
Current liabilities
Trade and other payables 1,276,041 1,276,041
Provisions 87,948 87,948
Bank overdraft - 1,742,000
Current tax liabilities 36,807 -
Total liabilities 2,013,689 3,105,989
Total equity and liabilities 14,916,635 14,026,556
STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Share Option Retained
Reserve earnings Total
$ $ $ $ $
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)
Total comprehensive income for the year - - - 1,416,509 1,416,509
Net profit for the year - - - 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
Balance at 1 October 2013 326 80,699 46,346 10,112,248 10,239,619
Transaction with owners:
Share options - 10,217 (7,841) - 2,376
Total comprehensive income for the year - - - 2,027,616 2,027,616
Profit for the period - - - 2,027,616 2,027,616
Other comprehensive income for the year - - - - -
Balance at 30 September 2014 326 90,916 38,505 12,139,864 12,269,611
CONSOLIDATED STATEMENT OF CASH FLOWS
30 September 2014 30 September 2013
Profit before income tax 2,685,390 1,910,87
Depreciation 254,441 223,702
Share credit (7,841) (19,151)
Profit on sale of property plant,
and equipment (21,188) (1,130)
Finance income (17,531) (495)
Finance costs 52,507 157,950
Treasury bills redeemed from Reserve bank of Zimbabwe 18,540 -
Working capital changes:
(Increase)/decrease in inventories (1,452,973) 678,002
Decrease/(increase) in trade and other receivables 1,648,037 (1,703,259)
Increase/(decrease)in trade and other payables 187,550 (140,575)
Increase/(decrease) provision for other liabilities 425,343 (1,165,509)
Net generated from utilised in) operations 3,901,329 (34,731)
Tax paid (668,580) (546,932)
Finance costs (52,507) (157,950)
Finance income 17,531 495
Net cash generated/(utilised)in operating activities 3,197,773 (739,118)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment (300,963) (116,352)
Proceeds from sale of property, plant and equipment 21,188 1,130
Net cash utilised in investing activities (279,775) (249,080)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital 7,000 -
Net increase/(decrease) in cash and cash equivalents 2,924,998 (988,198)
Cash and cash equivalents at the beginning of the year (1,677,216) (689,018)
Cash and cash equivalents at the end of year 1,247,782 (1,677,216)
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 requirements of the Zimbabwe Companies Act(Chapter 24:03).This publication
should be read in conjunction with financial statements for the year ended 30 September 2014,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 2014.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 30 September
2014 2013
(i)Purchases during the period from the holding company:
CBI-Electric African Cables – a division of ATC (Proprietary) Limited 3,943,346 7,490,345
CBI-Electric Aberdare/ATC Telecoms Cable (Proprietary) Limited 100,066 -
Goods and services are brought from related parties on commercial
terms and conditions.
Sales :-
CBI-Electric African Cables-a division of ATC(Proprietary)Limited 1,912,452 1,586,610
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 404,216 270,140
CBI-Electric Aberdare/ATC Telecoms Cable(Proprietary) Limited - 481,276
(iv)Key management remuneration:
Key management includes directors(executive and non-executive)
and executive managers (members of the executive)
Salaries and short term benefits 385,960 280 623
Share options credit (4,624) (19,151)
Director’ emoluments
-Fees 69,128 66,246
-Other 142,670 89,682
Total 593,134 417,400
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 analysis
30 September 2014 30 September 2013
Revenue for customers domiciled in Zimbabwe 20,034,889 21,267,729
Revenue from external customers 3,572,491 2,590,484
23,607,380 23,858,213
Revenue from transactions with single and local customers that amount to 10% of more each of the Group’s revenues , equal
approximately
$11,690,407(2013 $8,986,333).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 2014 30 September 2013
Energy Transmission 9,166,107 6,385,458
Distributors 2,524,300 2,600,875
The total of non-current assets located in Zimbabwe is $3,157,810 (2013:$3,092,748) 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 2014 30 September 2013
Revenue from customers 23,607,380 23,858,213
Profit before interest and taxation 2,685,390 1,910,887
Finance income 17,531 495
Finance cost (52,207) (157,950)
Income tax expense 657,775 494,378
Total assets 14,916,635 14,026,556
Liabilities 3,647,025 3,786,937
6.The group had no significant capital commitments authorised by directors or contracted for at the reporting period(2013:nil).
30 September 2014 30 ember 2013
7.Property plant and equipment
Capital expenditure 300,963 250,210
Depreciation 254,441 223,702
8.There are no subsequent events that would have any effect on these financial results.
COMMENTARY AND OVERVIEW OF RESULTS
COMMENTARY AND OVERVIEW OF RESULTS
Sales for the year were 1% below the previous year a recovery from being 21% below at the half year. The improvement in sales in the
second half of the year was mainly due to orders received from the Holding Company in South Africa. In volume terms we sold 5% more
than
the previous year.
The operating profit at $2,720,066 was 32% higher than the previous year mainly due to the increased volumes of recycled copper.
Having eliminated our borrowings at the half year and having put funds on deposit for the latter 6 months of the year net finance
charges
improved from $157 455 last year to
$34 676 in the current year.
The net result after taxation was an increase in profit attributable to shareholders of 43% from $1,416,509 to $2,027,616 which was
also
reflected in an increase in basic earnings per share from 4.34 cents to 6.21 cents.
The consolidated statement of Financial Position and consolidated statement of cash flow shows a cash generation for the year of
$2,924,997
turning an overdraft position of $1,742,000 into a cash in the bank position of $1,2 million. Other major movements in the statement
of financial
position were an increase in inventories of $1, 4 million resulting from increased recycled copper on site whilst debtors decreased by
$1, 8 million
mainly as a result of improved copper harvesting from ZETDC. There was a slight increase in trade creditors from supplies obtained
from the Holding
Company which were used in the conversion of orders supplied back to them.
We are forecasting growth in 2015 mainly due to the anticipated orders from our Holding Company. Our strategy will be to continue our
barter
recycling deal with ZETDC, to continue our exports to our traditional markets to the North and to export any capacity surplus to the
South.
DIVIDEND
There will be need to invest in certain machine capacity to meet the expected growth in 2015.The Directors have therefore recommended
waiving
payment of a dividend until such time as the investment in machinery is completed.
C Kangara
Company Secretary
14 November 2014
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: 14/11/2014 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
