CAFCA LIMITED - Unaudited Abridged Financial Results for the six months ended 31 March 2017

Release Date: 19/05/2017 09:30
Code(s): CAC
 
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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

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