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Audited Financial Results for the year ended 30 September 2015
Cafca Limited
Share Code: CAC
ISIN Code: ZW0009011942
Notice To Shareholders
Audited Financial Results for the year ended 30 September 2015
All figures in United States Dollars
30 SEPT 2015 30SEPT 2014
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME $ $
Revenue 29,310,805 23,607,380
Operating profit 2,445,276 2,720,067
Finance income 10,009 17,531
Finance cost (2,733) (52,207)
Profit before income tax 2,452,551 2,685,391
Income tax expense (656,027) (657,775)
Profit for the year 1,796,524 2,027,616
Other comprehensive income: - -
Total comprehensive income for the year 1,796,524 2,027,616
Issued Ordinary Shares (weighted) (number) 32,770,666 32,667,666
Basic Earnings per share (cents) 5.48 6.21
Diluted Earnings per share(number) 33,459,000 32,919,000
Diluted Earnings per share (cents) 5.37 6.16
Headline earnings per share(number) 32,770,666 32,667,333
Headline earnings per share(cents) 5.40 6.14
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 SEPT 2015 AT 31 SEPT 2014
ASSETS $ $
Non-Current Assets
Property ,plant and equipment 3,416,831 3,139,270
Available for sale financial assets 18,540 18,540
Total non current assets 3,435,371 3,157,810
Current assets
Inventories 9,540,613 7,203,847
Trade and other Receivables 5,320,445 3,307,196
Cash and cash equivalents(excluding overdraft) 49,508 1,247,782
Total Assets 18,345,937 14,916,635
Equity attributable to owners of the parent
Share Capital 328 326
Share premium 138,081 90,916
Share option reserve 57,733 41,722
Retained earnings 14,115,652 12,139,864
Total Equity and Liabilities 14,311,794 14,269,611
LIABILITIES
Non-current liabilities
Deferred income tax liabilities 624,882 633,336
Current liabilities
Trade and other payables 2,480,976 1,701,384
Provisions 221,537 275,498
Bank overdraft 680,523 -
Current tax liabilities 26,225 36,807
Total liabilities 4,034,143 2,647,025
Total equity and liabilities 18,345,937 14,916,636
STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Share Option Retained
reserve earnings Total
$ $ $ $ $
Balance at 1 October 2013 326 80,699 65,497 10,112,248 10,239,619
Transfer of non-distributable reserve
Transaction with owners:
Issue of shares - 7,000 - - 7,000
Share options - - (4,624) (4,624)
Total comprehensive income for the year - - - 2,027,616 2,027,616
Net profit for the year - - - 2,027,616 2,027,616
Other comprehensive income for the year - - - - -
Balance at 30 September 2014 326 87,699 41,722 12,139,864 12,269,611
Balance at 1 October 2014 326 87,699 41,722 12,139,864 12,269,611
Transaction with owners:
Issue of shares 2 12,398 - - 12,400
Reversal of impairment of asset - - - 179,264 179,264
Share options - 37,984 16,011 - 53,995
Total comprehensive income for the year - - - 1,796,524 1,796,524
Profit for the period - - - 1,796,524 1,796,524
Other comprehensive income for the year - - - - -
Balance at 30 September 2015 328 138,081 57,733 14,115,652 14,311,794
CONSOLIDATED STATEMENT OF CASH FLOWS
30 September 2015 30 September 2014
Profit before income tax 2,452,551 2,685,390
Depreciation 310,038 254,441
Share option charge/(credit) 53,995 (4,624)
Profit on sale of property plant,
and equipment (27,109) (21,188)
Finance income (10,009) (17,531)
Finance costs 2,733 52,207
(Decrease)/increase in allowance for impairment
Of trade receivables (135,369) 162,917
Treasury bills redeemed from Reserve bank of Zimbabwe - 18,540
Working capital changes:
Increase in inventories (2,336,765) (1,452,972)
(Increase)/decrease in trade and other receivables (1,877,879) 1,709,238
Increase in trade and other payables 779,592 425,343
(Increase)/(decrease)in other liabilities and charges (53,961) 187,550
Profit on sale of shares in Medical Investments
(Private) Limited - (61,200)
Net cash(utilised in/generated from operations (842,183) 3,901,031
Tax paid (675,063) (668,582)
Finance costs (2,733) (52,207)
Finance income 10,009 17,531
Net cash utilised in operating activities (1,509,971) 3,197,773
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property ,plant and equipment (415,276) (300,963)
Proceeds from sale of property,plant and equipment 34,050 21,188
Net cash utilised in investing activities (381,226) (279,775)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital 12,400 7,000
Net (decrease)/increase in cash and cash equivalents 1,878,797 2,924,998
Cash and cash equivalents at the beginning of the year (1,247,782) (1,677,216)
Cash and cash equivalents at the end of year (631,015) 1,247,782
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
African Cables(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 Septermber
2015 2014
(i)Purchases during the period from the holding company:
CBI-Electric African Cables – a division of ATC (Proprietary)Limited 5,184,615 3,943,346
CBI-Electric Aberdare/ATC Telecoms Cable(Proprietary) Limited 180,325 100,066
Goods and services are brought from related parties on commercial
terms and conditions.
Sales :-
CBI-Electric African Cables-a division of ATC(Proprietary)Limited 3,630,226 1,912,452
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 576,686 404,216
(iv)Key management remuneration:
Key management includes directors(executive and non-executive)
and executive managers (members of the executive)
Salaries and short term benefits 620,335 597 758
Share options credit 53,995 (4 624)
Director’ emoluments
-Fees 76,114 69,128
-Other 155,496 142,670
Total 905,941 804,932
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 2015 30 September 2014
Revenue for customers domiciled in Zimbabwe 23,801,889 20,034,889
Revenue from external customers 5,509,095 3,572,491
29,310,095 23,607,380
Revenue from transactions with single and local customers that amount to 10% of more each of the Group’s revenues , equal approximately
$12,406,957(2014 $9,166,107).These revenues are attributable to customers domiciled in Zimbabwe. The breakdown of the major component of the
total revenue from three major customers (2014:three major customers)of at least 10% is as follows:
30 September 2015 30 September 2014
Energy Transmission 12,406,957 9,166,107
Distributors - 3,572,491
The total of non-current assets located in Zimbabwe is $3,435,831 (2014:$3,157,810) 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 2015 30 September 2014
Revenue from customers 29,310,805 23,858,213
Profit before interest and taxation 2,485,551 1,910,887
Net finance income/(cost) 7,275 (34,856)
Income tax expense 656,027 657,775
Total assets 18,345,937 14,916,636
Liabilities 4,034,143 2,647,025
6.The group had no significant capital commitments authorised by directors or contracted for at the reporting period(2013:nil).
30 September 2015 30 September 2014
7.Property plant and equipment
Capital expenditure 415,276 300,963
Depreciation 310,038 254,441
8.Bank overdraft 680,523 -
The Group has an overdraft facility limit of US$5 250 000 and a letter of credit facility limit of US$750 000.The overdraft facilities bear
interest at 10% per annum and are unsecured. The facilities expire within a year and are denominated in US$.The fair value of borrowings equal
their carrying amounts as the impact of discounting is insignificant.
9.There are no subsequent events that would have any effect on these financial results.
COMMENTARY AND OVERVIEW OF RESULTS
The strategy for the year was to push volumes and turnover and take the company from a 200 ton a month company to a 300 ton a month company. This
we achieved by cutting margins, vigorously exporting and pushing the factory on a 2x12 hour shift basis. As in the previous year the barter deal
with ZETDC gave us the bulk of our local sales.
Volumes grew by 39% whilst turnover increased by 24% year on year. Turnover growth was not in line with the volume growth as we reduced selling
prices and also increased exports at lower selling prices. There was also a shift in mix from copper to aluminium products.
Operating profit dropped to 8.3% of sales from 11.5 % of sales mainly due to the drop in margin mentioned above which dropped by 5.5% of sales.
Profit before tax was therefore 8.7% below the previous year. Provided for in the profit is an amount of $284 000 being a ZIMRA charge on a
reclassification of our aluminium rod raw material to a finished good requiring us to pay duty for the year 2010 at 15 % instead of 5%.
We have increased finished goods stocks significantly from 250 tons to 500 tons in an effort to clear the stockpile of copper we had received on
the barter deal.
Debtors have increased significantly mainly due to ZETDC which was on a special facility with Afrexim bank. All of the debtors book is considered
to be recoverable.
The outlook for the immediate future is a reduction in the company sales and the consequential production output to 200 tons a month whilst we
clear the stock and debtors build up and get the cash back in the bank. Should the economic activity improve locally or in our export markets
which are under tremendous pressure from low commodity prices and fluctuating currencies, then we can readily revert to 300 ton capacity.
Dividend
In view of the amounts invested in debtors and stock and the uncertainty in the economy the directors are of the view that it would not be
prudent to declare a dividend at this time.
By order of Board
C Kangara
Company Secretary
19 November 2015
Directors: H.P. Mkushi (Chairman) R.N. Webster (Managing)
E.T.Z Chidzonga P.E De Villiers G.Eddey A.E. Dickson A. Mabena S.E Mangwengwende G.J.H Steyn T.A Taylor
Date: 19/11/2015 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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