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Unaudited Abridged Financial Results for the six months ended 31 March 2017
Cafca Limited
Share Code: CAC
ISIN Code: ZW0009011942
Unaudited Abridged Financial Results for the six months ended 31 March 2017
All figures in United Stated Dollars
UNUADITED UNAUDITED AUDITED
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
30 SEPETMBER
31 MARCH 2017 31 MARCH 2016 2016
ABRIDGED STATEMENT OF COMPREHENSIVE INCOME $ $ $
Revenue 9,356,053 9,357,591 18,148,818
Operating profit 327,128 307,298 757,196
Net finance income/(cost) - (74,785) (79,168)
Profit Before Income tax 327,128 232,513 678,028
Income tax expense (98,269) (104,093) (259,424)
Profit for the period 228,859 128,420 418,604
Other Comprehensive Income: - - -
Total Comprehensive Income for the period 228,859 128,420 418,604
Issued Ordinary Shares (weighted) (number) 32,830,666 32,830,666 32,830,666
Basic Earnings per share (cents) 0.70 0.39 1.28
Diluted Earnings per share(number) 33,459,000 33,459,000 33,459,000
Diluted Earnings per share (cents) 0.68 0.38 1.25
Headline Earnings per share(number) 32,830,666 32,830,666 32,830,666
Headline Earnings per share (cents) 0.69 0.39 1.25
UNAUDITED UNAUDITED AUDITED
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
30 SEPTEMBER
STATEMENT OF FINANCIAL POSITION 31 MARCH 2017 31 MARCH 2016 2016
$
$ $
ASSETS
Non Current Assets
Property, plant and equipment 3,425,539 3,402,680 3,246,265
Loans and receivables 18,540 18,540 18,540
Current Assets
Inventory 6,646,636 8,619,432 8,307,412
Current income tax assets 79,236 - 84,085
Trade and other receivables 4,009,800 5,882,541 3,326,334
Cash and cash equivalents(excluding bank overdraft) 2,486,670 86,366 1,473,598
Total Assets 16,756,421 18,009,559 16,456,234
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital 328 328 328
Share premium 169,281 169,281 169,281
Share option reserve 7,067 5,300 5,300
Retained earnings 14,763,115 14,244,072 14,534,256
Total Equity 14,939,791 14,418,981 14,709,165
LIABILITIES
Non-current assets
Deferred income tax liabilities 677,096 619,563 682,411
Current liabilities
Trade and other payables 1,139,534 1,375,180 1,064,658
Current income tax liabilities - 96,213 -
Borrowings - 1,499,622 -
Total liabilities 1,816,630 3,590,578 1,747,069
Total equity and liabilities 16,756,421 18,009,559 16,456,234
STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Share Option Retained
Reserve earnings Total
$ $ $ $ $
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)
Comprehensive income:
Profit for the year - - - 418,604 418,604
Balance at 30 September 2016 328 169,281 5,300 14,534,256 14,709,165
Balance at 1 October 2016 328 169,281 5,300 14,534,256 14,709,165
Transaction with owners:
Share options - - 1,767 - 1,767
Profit for the period - - - 228,859 228,859
Balance at 31 March 2017 328 169,281 7,067 14,763,115 14,939,791
ABRIDGED STATEMENT OF CASH FLOWS
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
31 MARCH 2017 31 MARCH 2016 30 SEPTEMBER 2016
Profit before income tax 327,128 232,513 678,028
Depreciation 180,659 164,659 319,270
Share option expense/(charge) 1,767 (28,433) (28,433)
Profit on sale of property plant,and equipment (1,580) (4,320) (9,107)
Finance cost - 74,785 79,168
Changes in working capital 962,186 (968,248) 1,589,457
cash generated/(utilised in)operations 1,469,533 (529,044) 2,638,896
Finance income - - -
Finance costs - (74,785) (79,168)
Income tax paid (98,734) (39,640) (312,205)
Net cash generated from/(utilised) in operating
activities 1,370,799 (643,469) 2,247,523
Acquisition of plant and equipment (359,307) (150,292) (173,684)
Proceeds from sale of property plant and
equipment 1,580 4,320 23,574
Net utilised in investing activities (357,727) (145,972) (150,110)
CASHFLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital - 7,200 7,200
Net increase/(decrease)in cash and cash equivalents 1,013,072 (782,241) 2,104,613
Cash and cash equivalents at beginning of the period 1,473,598 (631,015) (631,015)
Cash and cash equivalents at end of period 2,486,670 (1,413,256) 1,473,598
SIX MONTHS TO SIX MONHTS TO FULL YEAR TO
31 MARCH 2017 31 MARCH 2016 30 SEPTEMBER 2016
Capital expenditure 359,307 150,292 173,684
Depreciation 180,032 164,659 319,270
NOTES THE FINANCIAL STATEMENTS
1. 1. The unaudited abridged results of CAFCA Limited (the ''Company''), have been prepared in accordance with the recognition and measurement
requirements of International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”),
International Financial Reporting Committee Interpretations (“IFRIC”) as issued by the International Financial Reporting Interpretations
Committee (“IFRS IC”), the presentation and disclosure requirements of IAS 34, 'Interim financial reporting', and in the manner required by the
Zimbabwe Companies Act (Chapter 24.03). The same accounting accounting policies and methods of computation are followed in the unaudited results
as compared with the most recent annual financial statements for the year ended 30 September 2016.
2.The financial statements are presented in United States Dollars which is the functional currency of the Company.
3.Related party transactions
Reunert Engineering(Proprietary) Limited owns 70% of the company and the remaining 30% 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 2017 31 MARCH 2016 30 SEPTEMBER
2016
Purchases during the year from holding company
CBI-Electric African Cables a division of ATC(Pty) Ltd 380,330 138,228 -
CBI Electric Aberdare/ATC Telecoms Cable(Pty) Ltd - 2,631 184,923
Metal Fabricators of Zambia PLC 677,399 2,835 5,243
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 8,574 - -
Metal Fabricators of Zambia PLC 196,955 - -
Balances arising from purchase of goods and services
Payables to related parties
CBI-Electric African Cables a division of ATC(Pty) Ltd 173,974 - -
Metal Fabricators of Zambia PLC 178,145 - -
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 231,428 236,118 495,701
Share options(credit)/charge 1,767 (28,433) (28,433)
Directors fees 48,150 48,150 90,270
Commitments
The Company had no significant capital commitments authorised by directors or contracted for at the reporting period.
Segment information
The executive management team is the Company’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 Company has one product line,and operates in one industry sector.
UNUADI0TED UNAUDITED AUDITED
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
30 SEPETMBER
31 MARCH 217 31 MARCH 2016 2016
Revenue from customers domiciled in Zimbabwe 8,650,456 8,931,661 16,257,021
Revenue from external customers 705,597 425,930 1,891,767
Total 9,356,053 9,357,591 18,148,818
Revenue from transactions with single local customers that amounted to 10% of more of each of the Company’s revenues equal approximately to US
$4,032,724.
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 4,032,724 4,440,344 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 9,356,053 9,357,591 18,148,818
Depreciation 180,032 164,659 319,270
Share option charge /(credit) 1,767 (28,433) (28,433)
Profit before income tax 327,128 307,298 757,196
Net finance income - 74,785 79,168
Income tax expense 98,269 104,093 259,424
Total assets 16,756,421 18,009,559 16,456,234
Total liabilities 1,816,630 3,590,578 1,747,069
COMMENTARY AND OVERVIEW OF RESULTS
PROFITABILITY
Revenue for the 6 months period to 31 March 2017 was the same as the comparative period last year. Reduced local economic activity has been
countered by a drop in import competition due to lack of foreign currency. Exports increased 66% to $705 597 in the 6 months compared to the same
period last year.
Profit before taxation increased by 41% mainly due to the savings on interest from the elimination of borrowings and also due to reduced costs.
The benefit from cost containment has been off set in the period by the release of overheads. Overheads are released against profits when stocks
of finished goods and work in progress reduce. The stock reduction came about from the lack of foreign currency mentioned above to procure raw
materials timeously.
Profit after taxation and diluted earnings per share are 78% above the previous year mainly due to the more favourable tax estimate.
The Statement of Financial Position remains strong with cash balances of $2,486,670 easily covering total liabilities of $1,139,534. The increase
in other receivables is mainly due to having to prepay some foreign creditors who are uncomfortable with extending credit due to the foreign
currency problem.
In April and May the company received allocations of $1,1 million in foreign currency to pay foreign suppliers as we had cash balances to the
extent of $2,4 million at the banks. This has cleared our backlog and we are now covered to the end of May for supplies.
OUTLOOK
The outlook going forward is that we anticipate no major increase or decrease in activity provided foreign currency is timeously made available.
DIVIDEND
The Directors have waived the declaring of a dividend in order to benefit from the Reserve Bank of Zimbabwe directive that foreign currency will
only be made available to funded bank account holders using the priority list.
By order of Board
C Kangara
Company Secretary
19 May 2017
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: 19/05/2017 09:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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