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Unaudited Financial Results for the six months ended 31 March 2016
Cafca Limited
Share Code: CAC
ISIN Code: ZW0009011942
Notice To Shareholders
Unaudited Financial Results for the six months ended 31 March 2016
All figures in United Stated Dollars
UNUADITED UNAUDITED AUDITED
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
30 SEPETMBER
31 MARCH 2016 31 MARCH 2015 2015
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME $ $ $
Revenue 9,357,591 14,210,430 29,310,805
Operating profit 307,298 1,060,325 2,445,275
Net finance income/(cost) (74,785) 9,427 7,276
Profit Before Income tax 232,513 1,155,214 2,452,551
Income tax expense (104,093) (305,641) (656,027)
Profit for the period 128,420 849,573 1,796,524
Other Comprehensive Income: - - -
Total Comprehensive Income for the period 128,420 849,573 1,796,524
Issued Ordinary Shares (weighted) (number) 32,830,666 32,770,666 32,770,666
Basic Earnings per share (cents) 0.39 2.59 5.48
Diluted Earnings per share(number) 33,459,000 32,919,000 33,459,000
Diluted Earnings per share (cents) 0.38 2.58 5.37
Headline Earnings per share(number) 32,830,666 32,770,666 32,770,666
Headline Earnings per share (cents) 0.39 2.59 5.48
UNAUDITED UNAUDITED AUDITED
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
30 SEPTEMBER
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 MARCH 2016 31 MARCH 2015 2015
$
$ $
ASSETS
Non Current Assets
Property, plant and equipment 3,402,680 3,303,665 3,416,831
Loans and receivables 18,540 18,540 18,540
Current Assets
Inventory 8,619,432 7,843,413 9,540,613
Trade and other receivables 5,882,541 3,879,638 5,320,445
Cash and cash equivalents 86,366 518,598 49,508
Total Assets 18,009,559 15,563,698 18,345,937
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital 328 328 328
Share premium 169,281 136,582 138,081
Share option reserve 5,300 57,733 57,733
Retained earnings 14,244,072 12,989,437 14,115,652
Total Equity 14,418,981 13,184,080 14,311,794
LIABILITIES
Non-current assets
Deferred income tax liabilities 619,563 614,813 624,882
Current liabilities
Trade and other payables 1,375,180 1,656,370 2,702,513
Current income tax liabilities 96,435 108,435 26,225
Total liabilities 3,590,578 2,379,618 4,034,143
Total equity and liabilities 18,009,559 15,563,698 18,345,937
STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Share Option Retained
Reserve earnings Total
$ $ $ $ $
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
Share options - 37,984 16,011 - 53,995
Comprehensive income:
Reversal of impairment - - - 179,264 179,264
Profit for the year - - 1,796,524 1,796,524
Balance at 30 September 2015 328 138,081 57,733 14,115,652 14,311,794
Balance at 1 October 2015 328 138,081 57,733 14,115,652 14,311,794
Transaction with owners:
Issue of shares - 7,200 - - 7,200
Share options - 24,000 (52,433) - (28,433)
Profit for the period - - 128,420 128,420
Balance at 31 March 2016 328 169,281 5,300 14,244,072 14,418,981
ABRIDGED STATEMENT OF CASH FLOWS
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
31 MARCH 2016 31 MARCH 2015 30 SEPTEMBER 2015
Profit before income tax 232,513 1,155,214 2,452,551
Depreciation 164,659 149,516 310,037
Share option (credit)/charge (28,433) 52,495 53,995
Profit on sale of property plant,and equipment (4,320) (27,109) (27,109)
Finance income - (9,427) (10,009)
Finance cost 74,785 - 2,733
Change in working capital (968,248) (1,532,524) (3,624,383)
Net cash (utilised in) (529,044) (211,835) (842,185)
Finance income - 9,427 10,009
Finance costs (74,785) - 2,733
Income tax paid (39,640) (252,536) (675,063)
Tax paid (252,536) (214,315) (668,582)
Net cash utilised in operating
activities (643,469) (454,944) (1,509,972)
Acquisition of plant and equipment (150,292) (320,690) (415,275)
Proceeds from sale of property plant and
equipment 4,320 34,050 34,050
Net utilised in investing activities (150,292) (320,690) (415,275)
CASHFLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital 7,200 12,400 12,400
Net decrease in cash and cash equivalents (782,241) (729,184) (1,878,797)
Cash and cash equivalents at beginning of the period (631,015) 1,247,782 1,247,782
Cash and cash equivalents at end of period (1,413,256) 518,598 (631,015)
SIX MONTHS TO SIX MONHTS TO FULL YEAR TO
31 MARCH 2016 31 MARCH 2015 30 SEPTEMBER 2015
Capital expenditure 150,292 320,690 415,275
Depreciation 164,659 149,516 310,037
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 2016 31 MARCH 2015 30 SEPTEMBER
2015
Purchases during the year from holding company
CBI-Electric African Cables a division of ATC(Pty) Ltd 138,228 2,957,562 5,184,645
CBI Electric Aberdare/ATC Telecoms Cable(Pty) Ltd 2,631 157,840 180,325
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 3,630,226
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 -
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 236,118 355,197 801,457
Share options(credit)/charge (28,433) 53,495 53,995
Directors fees 48,150 37,334 76,114
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 2016 31 MARCH 2015 2015
Revenue from customers domiciled in Zimbabwe 8,931,661 10,592,178 23,801,710
Revenue from external customers 425,930 3,618,252 2,590,484
Total 9,357,591 14,210,430 23,310,805
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 transmission 4,440,344 4,651,954 12,406,957
The segment information provided to the executive team for the reportable segments for six months to 31 March are as follows:
Revenue from customers 9,357,591 14,210,430 29,310,805
Depreciation 164,659 149,516 310,037
Share option charge /(credit) (28,433) 52,495 53,995
Profit before income tax 307,298 1,145,787 2,445,275
Net finance income/(costs) (74,785) 9,427 7,276
Income tax expense 104,093 305,641 656,027
Total assets 18,009,559 15,563,698 18,345,937
Total liabilities 3,590,578 2,379,618 4,034,143
Bank overdraft 1,499,622 - 680,523
The Group has an overdraft facility limit of $5 250 000 and a letter of credit limit of $750 000+.The overdraft facilities bear an interest at
10% per annum and are unsecured.The facilities expire within a year and are denominated in US$. The fair value of borrowings equal their carrying
amounts as the impact of discounting is insignificant.
COMMENTARY AND OVERVIEW OF RESULTS
PROFITABILITY
Revenue for the 6 months period to 31 March 2016 is 34% down on the comparative prior year period.
At the Annual General meeting shareholders were made aware of the fact that production was being scaled down from 300 tons a month to 200 tons a
month. The reasons given being a downturn in both the local and export markets.
Locally all sectors are down. Mining is battling with low commodity prices whilst Industry has been adversely affected by liquidity and viability
challenges. Housing is slowing down due to liquidity issues and the ability of potential home owners to raise mortgage bonds. Sales to Government
have been curtailed due to nonpayment. The power utilities are experiencing cash flow constraints arising from the reduction in local power
generation and having to raise funds to import power. The international decrease in the copper price affected the barter transaction leading to
reduction in sales by 25%.
In terms of exports, Malawi is suffering from devaluation and foreign currency shortages. Zambia due to the drop in copper prices, is also having
foreign currency challenges. Mozambique has currently stopped all import payments. The devaluation of the rand over the period made us
uncompetitive to export to South Africa.
During the period, due to the weakening of the rand, imports from South Africa increased as it became cheaper to import finished product rather
than to procure locally manufactured product.
FINANCIAL POSITION
The Consolidated Statement of Financial Position remains strong with stock and debtors of $14.5 million adequately covering liabilities and
borrowings of $2.9 million.
OUTLOOK
Sales continue to deteriorate though our current 6 monthly forecast is that sales will be higher than the last 6 months, however still
approximately 30% down against the comparative period last year. To improve viability total monthly costs have been reduced by 30%.
Our major concern going forward is the country’s ability to fund the Nostro accounts to pay for imported raw materials.
DIVIDEND
The Directors have waived the declaring of a dividend in order to retain resources for funding working capital, in particular debtors.
By order of Board
C Kangara
Company Secretary
12 May 2016
Directors: H.P.Mkushi (Chairman), R.N. Webster (Managing), E.T.Z.Chidzonga
A.E.Dickson, A.Mabena, S.E Mangwengwende, P De Villiers, G.Eddey, G.J.H Steyn
Date: 12/05/2016 11:03:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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