CAFCA LIMITED - Unaudited Abridged Financial Results for the six months ended 31 March 2018

Release Date: 24/05/2018 16:15
Code(s): CAC
 
Wrap Text
Unaudited Abridged Financial Results for the six months ended 31 March 2018

Cafca Limited
Share Code: CAC
ISIN Code: ZW0009011942


Unaudited Abridged Financial Results for the six months ended 31 March 2018

All figures in United Stated Dollars
                                                      UNUADITED            UNAUDITED            AUDITED
                                                        SIX MONTHS TO       SIX MONTHS TO         FULL YEAR TO
                                                                                                  30 SEPETMBER
                                                        31 MARCH 2018       31 MARCH 2017             2017
ABRIDGED STATEMENT OF COMPREHENSIVE INCOME                    $                   $                       $
Revenue                                                  13,261,596           9,356,053            19,310,457
Operating profit                                          2,457,172             327,128             1,226,227
Profit Before Income tax                                  2,457,172             327,128             1,226,227
Income tax expense                                        (663,032)            (98,269)              (500,014)
Profit for the period                                     1,794,140            228,859                726,213
Other Comprehensive Income:                                   -                   -                       -
Total Comprehensive Income for the period                 1,794,140            228,859                726,213




Issued Ordinary Shares (weighted) (number)               33,009,000           32,830,666           32,874,000
Basic Earnings per share (cents)                                  5.44                 0.70                   2.21
Diluted Earnings per share(number)                       33,459,000           33,459,000           33,459,000
Diluted Earnings per share (cents)                             5.36                0.68                   2.17

Headline Earnings per share(number)                      33,009,000           32,830,666           32,874,000
Headline Earnings per share (cents)                            5.44                 0.70               2.18

                                                        UNAUDITED           UNAUDITED           AUDITED
                                                          SIX MONTHS TO        SIX MONTHS TO        FULL YEAR TO
                                                                                                    30 SEPTEMBER
 STATEMENT OF FINANCIAL POSITION                          31 MARCH 2018        31 MARCH 2017            2017
                                                                                                          $
                                                                   $                   $

ASSETS
Non Current Assets
Property, plant and equipment                               3,121,369            3,425,539            3,263,957
Loans and receivables                                             12,361               18,540                 18,540

Current Assets
Inventories                                    8,042,110          6,646,636          8,256,431
Current income tax receivables                        -            79,236              18,540
Trade and other receivables                   1,858,500           4,099,800         2,389,492
Cash and cash equivalents                     7,743,423           2,486,670         4,168,171
Total Assets                                  20,777,763         16,756,421        18,115,541


EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital                                             328          328                  328
Share premium                                    220,012            169,281           177,948
Share option reserve                              132,000            7,067             20,056
Retained earnings                             17,054,115         14,763,115        15,260,469
Total Equity                                  17,406,949         14,939,791        15,458,801

LIABILITIES
Non-current assets
Deferred income tax liabilities                773,757           677,096            788,880

Current liabilities
Trade and other payables                      2,406,074         1,139,534         1,496,132
Current income tax liabilities                   190,983           -                371,728

Total liabilities                             3,370,814         1,816,830         2,656,740

Total equity and liabilities                  20,773,763        16,756,421        18,115,541

STATEMENT OF CHANGES IN EQUITY
                                              Share Capital       Share Premium    Share Option   Retained
                                                                                   Reserve        earnings      Total
                                              $                   $                $              $             $
Balance at 1 October 2016                     328                 169,281          5,300           14,534,256   14,709,165
Transaction with owners:
Issue of shares                                   -                5,200            -                 -             5,200
Share options                                 -                    3,467           14,756            -             18,433
Comprehensive income:
Profit for the year                           -                    -                 -               726,213       726,213
Balance at 30 September 2017                  328                 177,948          20,056         15,260,469    15,458,801


Balance at 1 October 2017                     328                 177,948          20,056         15,260,469    15,458,801
Transaction with owners:
Issue of shares                               -                   31,800            -                     -         31,800
Share options                                 -                   10,264           111,944                -        122,208

Profit for the period                         -                   -                 -              1,794,140 1,794,140
Balance at 31 March 2018                      328                 220,012          132,000        17,054,609 17,406,949
ABRIDGED STATEMENT OF CASH FLOWS
                                                SIX MONTHS TO     SIX MONTHS TO    FULL YEAR TO
                                                31 MARCH 2018      31 MARCH 2017   30 SEPTEMBER 2017


Profit before income tax                             2,457,172         372,128         1,226,227
Depreciation                                          179,686          180,032           358,763
Share option expense                                  122,208            1,767            18,223
Profit on sale of property plant,and equipment         (3,770)          (1,580)          (14,723)
Finance income received                                   195            -                 3,150
Changes in working capital                            1,283,527        962,186         1,791,025
cash generated from operations                        4,039,018        1,469,533       3,382,665
Finance costs                                          (195)            -                (3,150)
Income tax paid                                      (468,521)         (98,734)         (328,410)
Net cash generated from in operating
activities                                          3,570,302         1,370,799         3,051,105
Acquisition of plant and equipment                   (36,799)          (359,307)         (376,455)
Proceeds from sale of property plant and
equipment                                               3,770           1,580             14,723
Treasury bills maturity                                  6,179            -                 -
Net utilised in investing activities                   (26,520)       (357,727)         (361,732)
CASHFLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital                     31,800          -                  5,200
Net increase in cash and cash equivalents             3,575,252       1,013,072         2,694,573
Cash and cash equivalents at beginning of the period 4,168,171        1,473,598         1,473,598
Cash and cash equivalents at end of period            7,743,423       2,486,670         4,168,171


                                                  SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
                                                31 MARCH 2018 31 MARCH 2017 30 SEPTEMBER 2017

Capital expenditure                                36,799           359,307        376,455
Depreciation                                      179,686           180,032        358,763


NOTES THE FINANCIAL STATEMENTS

1.The unaudited abridged results of CAFCA Limited (the ’’Company'') have been prepared in accordance with,IAS 34, 'Interim financial reporting',
and in the manner required by the Zimbabwe Companies Act (Chapter 24.03). The same 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 2017.

2.The financial statements are presented in United States Dollars which is the functional currency of the Company.
3.Related party transactions
 Reunert Electrical Engineering Holdings(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 2018     31 MARCH 2017 30 SEPT7MBER
                                                                                             2017
Purchases during the year from holding company
CBI-Electric African Cables a division of ATC(Pty) Ltd      1,403,088           380,330       729,207
CBI Electric Aberdare/ATC Telecoms Cables(Pty) Ltd             21,345               -         173,336
Metal Fabricators of Zambia PLC (Zamefa)                       56,213            677,399     1,393,489
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      729,207
Metal Fabricators of Zambia PLC(Zamefa)                        18,316            196,955      411,365

Balances arising from purchase of goods and services
Payables to related parties
CBI-Electric African Cables a division of ATC(Pty) Ltd        394,593            173,974        33,826
Metal Fabricators of Zambia PLC                               56,213             178,145        17,336


Receivables from purchase of goods and services
Payables to related parties
CBI-Electric African Cables a division of ATC(Pty) Ltd         -                   7,380             -
Metal Fabricators of Zambia PLC(Zamefa)                         -                196,955       106,644


Key management remuneration
Key management includes directors(executive and non-executive)
and executive managers(members of the executive)

Salaries and short term benefits                           310,791           231,428        582,170
Share options charge                                       122,208             1,767         18,223
Directors fees                                              44,530            48,150         80,016
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 2018    31 MARCH 2017          2017


Revenue from customers domiciled in Zimbabwe              12,793,394         8,650,456       18,256,550
Revenue from external customers                              468,202           705,597        1,053,907
Total                                                     13,261,596         9,356,053       19,310,457
Revenue from transactions with single local customers that amounted to 10% of more of each of the   Company’s revenues equal approximately to US
$4,968,291.

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                                   4,968,291          4,032,724         5,879,764

The segment information provided to the executive team for the reportable segments for six months to 31 March are as follows:


Revenue from customers                                  13,261,596        9,357,591        18,148,818
Depreciation                                               179,686          164,659           319,270
Share option charge                                        122,208            1,767            18,223
Profit before income tax                                 2,457,172          327,128         1,226,227
Income tax expense                                         663,032           98,269           500,014
Total assets                                            20,777,763       16,756,421        18,115,541
Total liabilities                                        3,370,814        1,816,630         2,656,740



COMMENTARY AND OVERVIEW OF RESULTS

PROFITABILITY
Revenue for the six month period to 31 March 2018 was $13,2 million an increase of 42% over the comparative period last year.

The support by Government to assist local industry together with the shortage of foreign currency have resulted in an improvement in local sales
demand. However, the same shortage of foreign currency together with our obligation to first meet local demand has had an adverse impact on
exports. Our biggest competitive advantage in the export market is offering a short lead time from having readily available raw materials.

As mentioned in our trading update in early March profit for the six month period is significantly higher than the comparative period last year.
Profit for the period after tax is $1,8 million versus the previous year’s $0,2 million.

As stated in the update profitability has been improved by a favourable copper price, changes to trading terms and a change in sales mix from
aluminium to copper products. The prior year was adversely affected by a volume decrease that resulted in breakeven months until the cost base
was significantly reduced – this cost base has since been maintained.

STATEMENT OF FINANCIAL POSITION
The Statement of Financial Position has been positively affected by the revised trading terms where credit to the market is being withdrawn to
generate cash to secure raw materials when foreign currency is made available and for refurbishment.

A refurbishment plan has been done but is dependent on the requisite foreign currency being sourced from the financial system.

The increase in Trade and other payables is due to customer prepayments of US$1 026 154.

The increase in Share option reserve arises from the increase in CAFCA share price on the unexercised share options. As at 31 March 2018 the
share price was US$0.60 from US$0.28 at 30 September 2017.

OUTLOOK
We are expecting the second half of the year to be at least in line with the first half provided there are
no material changes in the availability of foreign currency.
CAFCA will continue to have an obligation to first meet the requirements of the local market with any excess capacity being exported provided we
can timeously source raw materials to meet the demands of the export market.

DIVIDEND
The Board is considering a final dividend and refurbishment program which will be finalized by the year end.

By order of Board


C Kangara
Company Secretary
24 May 2018



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, T.A Taylor

Date: 24/05/2018 04:15:00 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.

Email this JSE Sens Item to a Friend.

Share This Story