Wrap Text
Unaudited Abridged Financial Results for the six months ended 31 March 2025
Cafca Limited
Incorporated in terms of laws of Zimbabwe(Zimbabwe Registration number:40/1945)
Share Code: CAC
ISIN Code: ZW0009011942
("CAFCA" or "the Company")
Notice To Shareholders
Unaudited Abridged Financial Results for the six months ended 31 March 2025
All figures are in Zimbabwean Gold (ZWG)
Unaudited Reviewed
31 March 2025 31 March 2024
Abridged Statement of Profit or Loss and other
Comprehensive Income for six months ended ZWG ZWG
31 March 2025
Revenue 478,509,082 274,461,199
Operating profit 30,192,492 91,902,113
Finance cost (657,789) (4,972,006)
Monetary loss - (14,879,367)
Profit before income tax 29,534,703 72,050,740
Income tax expense (13,807,386) (13,813,573)
Profit for the period 15,727,317 58,237,167
Total comprehensive income for the period 15,727,317 58,237,167
Issued Ordinary Shares (weighted) (number) 33,949,000 33,949,000
Basic Earnings per share (ZWG cents) (note 10) 46.33 171.54
Diluted Earnings per share(number) 33,949,000 33,949,000
Diluted Earnings per share (ZWG cents) (note 10) 46.33 171.54
Headline earnings per share(number) 33,949,000 33,949,000
Headline Earnings per share(ZWG cents) (note 10) 46.12 169.97
Abridged statement of Financial Position
As at 31 March 2025 Unaudited Reviewed
31 March 2025 31 March 2024
ASSETS ZWG ZWG
Non-Current Assets
Property ,plant and equipment 457,855,811 519,072,661
Current assets
Inventories 353,941,474 321,029,183
Trade and other trade receivables 107,299,357 72,180,486
Cash and cash equivalents 5,335,120 14,361,284
Total Assets 924,431,762 926,246,312
Share capital and reserves
Share Capital 9,073 887
Share premium 8,186,251 7,609,604
Retained earnings 423,926,893 329,036,652
Revaluation reserve 426,104,419 477,599,169
Total Equity 858,226,636 384,861,867
LIABILITIES
Non-current liabilities
Deferred income tax liabilities 23,271,177 21,389,587
Current liabilities
Trade and other payables 7,426,620 18,781,359
Provisions for other liabilities and charges 9,488,763 13,922,060
Current income tax liabilities 16,986,981 1,531,824
Dividend payable 4,148,931 44,508,156
Borrowings 4,832,654 -
Total current liabilities 42,933,949 91,007,715
Total equity and liabilities 924,431,762 926,643,614
Abridged Statement of Changes in Equity
For the half year ended 31 March 2025
Share Capital Share Premium Share Option Revaluation Retained
Reserve reserve earnings Total
ZWG ZWG ZWG ZWG ZWG ZWG
Balance at 1 October 2023 888 2,709,246 4,976,618 - 244,262,687 251,949,439
Transaction with owners:
Share options exercised - 25,488 - - 25,488
Share options credit - - (101,748) - (101,748)
Transfers between reserves - 4,874,870 (4,874,870) - -
Total comprehensive income for the period - - - 58,237,167 58,237,167
Profit for the period - - - 58,237,167 58,237,167
Other comprehensive income for the period - - - - - -
Balance at 31 March 2024 888 7,609,604 - - 302,499,854 310,110,346
Balance at 1 October 2024 887 7,609,604 - 477,599,169 329,063,652 814,273,312
Transaction with owners:
Effects of translation differences 8,186 576,647 - (51,494,750) 79,135,924 28,226,007
Share option expense - - - - -
Transfers between reserves - - - - -
Total comprehensive income for the period - - - 15,727,317 15,727,317
Profit for the year - - - - -
Other comprehensive income for the period - - - - 15,727,317 15,727,317
Balance at 31 March 2025 9,073 8,186,251 - 426,104,419 423,926,893 858,226,636
Abridged Statement of Cash Flows for six months ended 31 March 2025
Unaudited Reviewed
31 March 25 31 March 2024
ZWG ZWG
Profit before income tax 29,534,703 72,050,740
Depreciation 21,378,147 874,062
Net loss on net monetary assets - 38,503,602
Profit on sale of property plant,
and equipment (101,709) (531,100)
Non-cash employee benefit-share based payment credit - (101,748)
Finance cost 657,789 4,972,006
Working capital changes:
Decrease in inventories (32,912,291) (46,098,619)
(Increase)/Decrease in trade and other receivables (35,118,871) 52,663,092
Increase in trade and other payables (21,630,532) (10,561,315)
Increase in provision for other liabilities (6,371,820) 12,343,929
Cash generated from operations (44,564,584) 99,426,792
Tax paid (5,673,221) (3,345,851)
Finance cost (657,789) (4,972,006)
Net(cash utilised in)/generated from operating activities (50,895,594) 4,659,090
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property ,plant and equipment (5,530,106) (639,585)
Proceeds from sale of property,plant and equipment 101,709 531,100
Net cash utilised in investing activities (5,428,397) (108,485)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in borrowings 4,832,654 -
Dividend paid (40,359,225) (54,943,913)
Proceeds from issuance of share options - 25,488
Cash utilised in financing activity (35,526,571) (54,918,425)
Decrease/(Increase) in cash and cash equivalents (91,850,562) 36,082,025
Cash and cash equivalents at the beginning of the year 14,361,284 (4,751,049)
Effects of inflation on cash and cash equivalents - (33,470,516)
Effects of exchange rates differences 82,824,398
Cash and cash equivalents at the end of the period 5,335,120 (2,139,540)
NOTES TO THE UNAUDITED ABRIDGED FINANCIAL STATEMENTS
For the six months ended 31 March 2025
1 General information
CAFCA Limited (the "Company") manufactures and supplies cables for transmission and distribution of energy. CAFCA is primary listed on the
Zimbabwe Stock Exchange and secondary listed on the Johannesburg Stock Exchange.
2 Basis of preparation
The financial statements of CAFCA Limited have been prepared with an aim to comply with IFRS® Accounting Standards and in the manner required
by the Zimbabwe Companies and Other Business Entities Act (Chapter 24:31).
3 Functional and presentation currency
Following the Introduction of the Zimbabwe Gold Currency by the Reserve Bank of Zimbabwe (RBZ) on 5 April 2024 and the Statutory Instrument
(SI) 60 of 2024, all the previously existing Zimbabwe Dollar (ZWL) balances were converted into ZWG as at that date. The swap rate of ZWG 1:
ZWL 2 498.7242 was used as guided by the closing interbank exchange rate and the price of gold as at that date. The previously reported
balances and transactions between 1 October 2023 and 31 March 2024 were inflated to the 31st of March 2024.
In light of increased level of USD transactions,the Directors conducted a thorough assessment of factors influencing the determination of
Company's functional currency.The assessment considered factors such as primary economic activities ,currency of transactions,cash flow
patterns,the regulatory environment and long-term stability.
The Directors effective 1 October 2024 adopted USD as functional currency.
4 Going Concern
Management has assessed that the Company will continue operating as going concern, citing the following: -
a. The Company has no exposure to foreign liabilities.
b. The Company has stock cover of13 months in finished goods.
c. The Company has adequate working capital and facilities from local banks
5. Related party transactions
Unaudited Reviewed
31 March 2025 31 March 2024
ZWG ZWG
i.Purchases of goods 11
CBI-Electric African Cables-A Division of ATC( Pty) Limited 31,129,245 6,035
Metal Fabricators of Zambia Plc(Zamefa) 48,327,873 22,033,815
Key management remuneration:
Key management includes directors (executive and non-executive)
and members of the executive committee
Salaries and short term benefits 15,525,272 11,853,548
Share options charge - (101,748)
Director' emoluments
-Fees 1,022,171 1,074,814
Total 15,547,443 12,826,614
7.Segmentation information
Revenue is primarily from customers who are domiciled in Zimbabwe and
revenue from external customers pertains mainly to customers domiciled
in Malawi, Rwanda and Mozambique.
Unaudited Reviewed
Revenue analysis 31 March 2025 31 March 2024
ZWG ZWG
Revenue from customers domiciled in Zimbabwe 448,701,390 577,081,634
Revenue from external customers 29,807,692 28,236,143
These revenues are attributable to customers domiciled in Zimbabwe. The breakdown of the major component of total revenue from three major
customers of at least 10% is as follows:
Unaudited Reviewed
31 March 2025 31 March 2024
ZWG ZWG
Retail 47,646,238 52,094,783
The segment information provided to the executive team for the
product reportable segments for the year ended 30 September are
as follows:
Revenue from customers 478,509,082 274,461,199
Profit before interest and taxation 29,534,703 72,050,740
Finance cost 657,789 4,972,006
Income tax expense 13,807,386 13,813,573
Total current assets 924,431,762 926,643,614
Total liabilities 66,205,126 112,397,302
8.Capital commitments
The Company had no significant capital commitments authorised or contracted for at the reporting period (2024:ZWG Nil)
Unaudited Reviewed
31 March 2025 31 March 2024
ZWG ZWG
9.Property plant and equipment
Capital expenditure 5,530,106 639,585
Depreciation 21,378,147 874,062
10.Reconciliation of basic earnings per share to headline earning per share
31 March 2025 31 March 2024
ZWG ZWG
Profit for the year attributable to CAFCA LTD shareholders 15,727,317 58,237,167
Adjustment to basic earnings
-Profit of disposal of fixed assets (101,709) (531,100)
Headline earnings attributable to CAFCA LTD shareholders 15,655,608 57,706,067
11.Borrowings 31 March 2025 31 March 2024
All borrowings are short-term(not exceeding 12 months) and bear
interest ranging between (30% -45 %) per annum. These borrowings are unsecured. 4,832,654 -
COMMENTARY AND OVERVIEW OF RESULTS
Trading Environment
The half year was a tale of two quarters for CAFCA. The second quarter became subdued following a strong Q1 performance. The period was
characterized by an increase in competitive products following a shift in market conditions towards increased informalization of the retail
sector. Additionally, the mining sector, particularly the platinum group metals sector, remained subdued to low commodity prices. The recovery of
the agricultural season is also yet to translate into cash flows and therefore infrastructure development, as harvesting for row crops is still
pending, with only tobacco in the middle of its selling season.
Financial Performance
Revenue in Zimbabwean Gold (ZWG) increased by 76% compared to the same period last year, reaching ZWG478.5 million. However, due to margin
contraction, profit after tax fell by 72% to ZWG15.7 million. The company has quickly adapted to changing market conditions by adjusting its
market position to defend its market share. The balance sheet remains strong, with continuous effort being put to organize working capital for
balance sheet preservation and agility to react to market conditions.
Operational Performance
Sales volumes for the half year were 5% lower than the same period last year due to worsening trading conditions. Copper and Aluminium volumes
declined by 12% and 10%, respectively, compared to the same prior period.
The commercial business and utilities segments experienced volume growth of 3% and 75%, respectively, against the same period last year, whereas
the retail and distribution sector declined by 27%, indicating the change in market dynamics. Foreign currency challenges in Malawi and
Mozambique slowed down export business during the period. This coincided with the transition to a more direct sales arrangement without
distributors from the previous consignment stock arrangement to improve working capital efficiency in the export business.
During the period, CAFCA's delivery performance was sustained with hit rates maintained at over 100%, albeit at reduced production runs given the
subdued demand conditions in the second quarter.
Dividend
The board decided not to declare an interim dividend considering cash flow considerations.
Outlook
While the outlook remains challenging, the board will continue monitoring the strategies put in place, to navigate the turbulence in the trading
environment.
Results Announcement
The Unaudited Abridged Financial Results for the six months ended 31 March 2025 ("Results"), which is the responsibility of the directors, is
available on the JSE cloudlink at:
https://senspdf.jse.co.za/documents/2025/jse/isse/cac/interim25.pdf.
and on the Company's website at www.cafca.co.zw and, any investment decisions by investors and/or shareholders should be based on such
information.
By order of Board
C Kangara
Company Secretary
15 May 2025
Directors
H.P Mkushi (Chairman) E.T.Z Chidzonga T.Chigumbu L.Corte S.E Mangwengwende S.Maparura J.Tapambgwa V.Nyakudya( Chief Executive Officer)
JSE Sponsor
Merchantec Capital
Date: 15-05-2025 10:35:00
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