Wrap Text
Unaudited Financial Results for the six months ended 31 March 2015
Cafca Limited
Share Code: CAC
ISIN Code: ZW0009011942
Notice To Shareholders
Unaudited Financial Results for the six months ended 31 March 2015
All figures in United Stated Dollars
UNUADITED UNAUDITED AUDITED
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
30 SEPETMBER
31 MARCH 2015 31 MARCH 2014 2014
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME $ $ $
Revenue 14,210,430 10,147,013 23,858,213
Operating profit 1,060,325 1,060,325 2,720,067
Net finance income/(cost) 9,427 (50,738) (34,676)
Profit Before Income tax 1,155,214 1,009,587 2,685,391
Income tax expense (305,641) (230,009) (657,775)
Profit for the period 849,573 779,578 2,027,616
Other Comprehensive Income: - - -
Total Comprehensive Income for the period 849,573 779,578 2,027,616
Issued Ordinary Shares (weighted) (number) 32,770,666 32,667,333 32,667,333
Basic Earnings per share (cents) 2.59 2.39 6.21
Diluted Earnings per share(number) 32,919,000 32,919,000 32,919,000
Diluted Earnings per share (cents) 2.58 2.37 6.16
Headline Earnings per share(number) 32,770,666 32,667,333 32,667,333
Headline Earnings per share (cents) 2.59 2.39 6.21
UNAUDITED UNAUDITED AUDITED
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
30 SEPTEMBER
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 MARCH 2015 31 MARCH 2014 2014
$
$ $
ASSETS
Non Current Assets
Property, plant and equipment 3,303,503 3,303,665 3,3139,270
Current Assets
Inventory 7,843,419 4,638,642 7,203,848
Trade and other receivables 3,879,638 5,560,192 3,307,196
Cash and cash equivalents 518,598 43,381 1,247,782
Total Assets 15,563,698 13,374,900 14,916,636
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital 328 326 326
Share premium 136,582 87,699 87,699
Share option reserve 57,733 73,129 41,722
Retained earnings 12,989,437 10,892,826 12,139,864
Total Equity 13,184,080 11,052,980 12,269,611
LIABILITIES
Non-current assets
Deferred income tax liabilities 614,813 650,339 633,336
Current liabilities
Trade and other payables 1,626,370 1,625,277 1,976,882
Current income tax liabilities 108,435 43,304 36,807
Total liabilities 2,379,618 2,321,920 2,647,025
Total equity and liabilities 15,563,698 13,374,900 14,916,636
STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Share Option R
Reserve e
$ $ $ $
Balance at 1 October 2013 326 80,699 46,346 1
Transaction with owners:
Issue of shares - 7,000 -
Share options - - (4,624)
Comprehensive income:
Profit for the year - -
Balance at 30 September 2014 326 87,699 41,722 1
Balance at 1 October 2014 326 87,699 46,346 1
Transaction with owners:
Issue of shares - 12,400 -
Share options 2 36,483 16,011
Profit for the period - -
Balance at 31 March 2015 328 136,582 57,733 1
ABRIDGED STATEMENT OF CASH FLOWS
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
31 MARCH 2015 31 MARCH 2014 30 SEPTEMBER 2014
Profit before income tax 1,155,214 1,009,587 2,685,391
Depreciation 149,516 123,192 254,441
Share option charge/(credit) 52,495 26,783 (4,624)
(Profit)/loss on sale of property plant,
and equipment (27,109) (5,500) (21,188)
Finance income (9,427) - (17,531)
Finance cost - 50,738 52,207
Treasury bills redeemed from Reserve Bank
of Zimbabwe - - (18,540)
Profit of sale of investment in Medical
Investments (Private) Limited - - (61,200)
Change in working capital (1,532,524) 931,479 1,032,075
Net cash (utilised in)/generated from
operations (211,835) 2,136,279 3,901,031
Finance income 9,427 - 17,531
Finance costs - (50,738) (52,207)
Tax paid (252,536) (214,315) (668,582)
Net cash (utilised in)/generated from operating
activities (454,944) 1,871,226 3,197,773
Acquisition of plant and equipment (320,690) (163,129) (300,963)
Proceeds from sale of property plant and
equipment 34,050 5,500 21,188
Net utilised in investing activities (286,640) (157,629) (279,775)
CASHFLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital 12,400 7,000 7,000
Net(decrease)/increase in cash and cash equivalents (729,184) 1,720,597 2,924,998
Cash and cash equivalents at beginning of the period 1,247,782 (1,677,216) (1,677,216)
Cash and cash equivalents at end of period 518,598 43,381 1,247,782
SIX MONTHS TO SIX MONHTS TO FULL YEAR TO
31 MARCH 2015 31 MARCH 2014 30 SEPTEMBER 2014
Capital expenditure 320,690 163,129 300,963
Depreciation 149,516 123,192 254,441
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 2015 31 MARCH 2014 30 SEPTEMBER
2014
Purchases during the year from holding company
CBI-Electric African Cables a division of ATC(Pty) Ltd 2,957,562 1,177,742 3,943,316
CBI Electric Aberdare/ATC Telecoms Cable(Pty) Ltd 157,840 51,826 100,066
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 2,924,273 - 1,912,452
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 630,478 644,543 404,216
Receivables from related parties
CBI Electric African Cables a division of ATC(Pty) Ltd 702,670 - 774,673
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 355,197 293,435 597,758
Share options 16,011 26,483 (4,624)
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 2015 31 MARCH 2014 2014
Revenue from customers domiciled in Zimbabwe 10,592,178 9,317,844 20,034,889
Revenue from external customers 3,618,252 2,297,987 2,590,484
Total 14,210,430 10,047,837 23,607,380
Revenue from transations with single local customers that amounted to 10% of more of each of the
Group’s revenues equal approximately to US $4,651,954
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 4,651,954 3,685,254 6,385,458
Distributors - - 2,524,300
Total 4,651,954 3,685,254 11,690,407
The segment information provided to the executive team for the reportable segments for six months to
31 March are as follows:
Revenue from customers 14,210,430 12,719,013 23,858,213
Depreciation 149,516 110,485 223,702
Share option charge /(credit) 52,495 26,783 (4,624)
Profit before income tax 1,145,787 1,060,325 2,720,067
Net finance income/(costs) 9,427 (50,738) (34,676)
Income tax expense (305,641) (230,009) (657,775)
Total assets 15,563,698 13,374,900 14,916,636
Total liabilities 2,379,618 2,321,920 2,647,025
COMMENTARY AND OVERVIEW OF RESULTS
Revenue for the six months at $14,210,430 was 41% above the comparative period last year mainly due
to exports but also due to local market sales mainly on the barter deal.
In terms of volumes we have pushed 72% more volume through the factory this half year against last
half year. The volumes have generated less revenue per ton than in the previous period for a number
of reasons. Firstly, exports were at low margins reflected in revenue per ton 20% lower than in the
local market. Secondly, sales in the local market were discounted 15% at the beginning of the year
as a strategy to combat imports. Thirdly, sales on the barter deal are mainly aluminum where
aluminum per ton sells for around a third of the revenue per ton from copper.
Operating profit at $1 145 787 was 8% up on the corresponding period last year. In summary volumes
were up 72%, revenue up 41% but profit only up 8%. The loss of margin has been detailed above but we
have also had increases in costs. We have recommissioned the melting furnace to improve the rate at
which we can process recycled copper – this not only significantly increases the amount of
electricity we use but also has high operating costs in terms of consumables and running costs.
Repairs and maintenance has also risen pro rata to the volume throughput. We have also had to return
to a 2x12 hour shift system and employ a further 25 people to move the company from 200 ton a month
to 300 ton a month capacity.
With borrowings now eliminated the year on year comparative shows interest income of $9 427 against
interest expense of $50 738 in the previous year.
Pretax profit at $1 155 214 was therefore 14% up on last year whilst post tax profit and earnings
per share are 9% up on the previous year.
The consolidated statement of Financial Position shows why we recommisioned the melting furnace with
inventories moving to $7 843 419 mainly due to copper stocks creeping up to $2 066 799. The other
major increase was debtors moving up to $3 879 638 from the year end position of $3 307 196 mainly
due to the higher sales.
We do not anticipate any major changes in the next 6 months where we will hopefully maintain our
export sales and continue locally with the barter deal. The focus will be on getting the copper
stocks converted to finished goods and sold to generate cash.
DIVIDEND
The Directors have recommended waiving payment of an interim dividend due to the strategic need to
finance working capital.
By order of Board
By order of Board
C Kangara
Company Secretary
14 May 2015
Directors: H.P.Mkushi (Chairman), R.N. Webster (Managing), E.T.Z.Chidzonga
A.E.Dickson, A.Mabena, S. Mangwengwende,P De Villiers, G.Eddey,G.J.H Steyn
Date: 14/05/2015 10:00:00 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 
