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Audited Abridged Financial Results for the year ended 30 September 2016
Cafca Limited
Share Code: CAC
ISIN Code: ZW0009011942
Notice To Shareholders
Audited Abridged Financial Results for the year ended 30 September 2016
All figures are in United States Dollars
30 SEPT 2016 30SEPT 2015
STATEMENT OF COMPREHENSIVE INCOME
Revenue 18,148,818 29,310,805
Operating profit 757,196 2,445,067
Finance income - 10,009
Finance cost (79,168) (2,733)
Profit before income tax 678,028 2,452,551
Income tax expense (259,424) (656,027)
Profit for the year 418,604 1,796,524
Other comprehensive income: - -
Total comprehensive income for the year 418,604 1,796,524
Issued Ordinary Shares (weighted) (number) 32,830,666 32,770,666
Basic Earnings per share (cents) 1.28 5.48
Diluted Earnings per share(number) 33,459,000 33,459,000
Diluted Earnings per share (cents) 1.25 5.37
Headline earnings per share(number) 32,830,666 32,770,666
Headline earnings per share(cents) 1.25 5.48
STATEMENT OF FINANCIAL POSITION AT 31 SEPT 2016 AT 31 SEPT 2015
ASSETS $ $
Non-Current Assets
Property ,plant and equipment 3,246,265 3,416,831
Available for sale financial assets 18,540 18,540
Total non current assets 3,264,805 3,435,371
Current assets
Inventories 8,307,412 9,540,613
Trade and other Receivables 3,410,419 5,320,445
Cash and cash equivalents(excluding overdraft) 1,473,598 49,508
Total Assets 16,456,234 18,345,937
Equity attributable to owners of the parent
Share Capital 328 328
Share premium 169,281 138,081
Share option reserve 5,300 57,733
Retained earnings 14,535,256 14,115,652
Total Equity 14,709,165 14,311,794
LIABILITIES
Non-current liabilities
Deferred income tax liabilities 682,411 624,882
Current liabilities
Trade and other payables 828,242 2,480,976
Provisions 236,416 221,537
Bank overdraft - 680,523
Current tax liabilities - 26,225
Total liabilities 1,747,069 4,034,143
Total equity and liabilities 16,456,234 18,345,636
STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Share Option Retained
reserve earnings Total
$ $ $ $ $
Balance at 1 October 2014 326 87,699 61,722 12,139,864 12,269,611
Transfer of non-distributable reserve
Transaction with owners:
Issue of shares 2 12,398 - - 12,400
Share options - 37,984 16,011 53,995
Total comprehensive income for the year - - - 1,796,524 1,796,524
Net profit for the year - - - 1,796,524 1,796,524
Reversal of impairment loss - - - 179,264 179,264
Other comprehensive income for the year - - - - -
Balance at 30 September 2015 326 138,081 57,733 14,115,652 14,311,794
Balance at 1 October 2015 326 138,081 57,733 14,115,652 14,311,794
Transaction with owners:
Issue of shares - 7,200 - - 7,200
Share options - 24,000 (52,433) - (53,433)
Total comprehensive income for the year - - - 418,604 418,604
Profit for the period - - - 418,604 418,604
Other comprehensive income for the year - - - - -
Balance at 30 September 2016 328 169,281 5,300 14,534,256 14,709,165
STATEMENT OF CASH FLOWS
30 September 2016 30 September 2015
Profit before income tax 678,028 2,452,551
Depreciation 319,269 310,037
Share based payment (28,433) 53,995
Profit on sale of property plant,
and equipment 9,108) (27,109)
Finance income - (10,009)
Finance costs 79,168 2,733
Allowance for impairment of trade receivables (39,771) (135,369)
Working capital changes:
(Decrease)/Increase in inventories 1,188,884 (2,327,155)
(Decrease)/increase in trade and other receivables 2,033,683 (1,877,880)
Decrease/increase in trade and other payables (1,652,734) 779,592
Increase/(decrease)in other liabilities and charges (14,879) 779,592
Net cash generated from/(utilised in)operations 2,638,695 (842,185)
Tax paid (312,205) (675,063)
Finance costs (79,168) (2,233)
Finance income - 10,009
Net generated from/(utilised in) operating activities 2,247,323 (1,509,972)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property ,plant and equipment (173,684) (415,275)
Proceeds from sale of property,plant and equipment 23,774 34,050
Net cash utilised in investing activities (149,910) (381,225)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital 7,200 12,400
Net increase/(decrease) in cash and cash equivalents 2,104,613 (1,878,797)
Cash and cash equivalents at the beginning of the year (631,015) 1,247,782
Cash and cash equivalents at the end of year 1,473,598 (631,015)
NOTES THE FINANCIAL STATEMENTS
1.The principal accounting policies of CAFCA Limited (the “Company “), have been followed in all material respects and conform to International
Financial Reporting Standards(IFRS) and in the manner required by Zimbabwe Companies Act(Chapter 24:03).
This publication should be read in conjunction with financial statements for the year ended 30 September 2016,which have been prepared in
accordance with IFRSs and IFRS Interpretations Committee (“IFRS IC” ) Interpretations, applicable to companies reporting under IFRS and in the
manner required by the Zimbabwe Companies Act(Chapter 24:03)
2. The auditors, PricewaterhouseCoopers, have audited the financial statements of the Company for the year ended 30 September 2016.The report
contained in the financial statements, which is available at the Company’s registered office, is unqualified.
3.The financial statements are presented in United States Dollars which is the functional currency of the Company.
4 Scheme of reconstruction
A scheme of reconstruction was approved by the board of directors on 22 September 2015, and the Zimbabwe Revenue Authority
("ZIMRA") with effect from 9 March 2016, involving a transfer of assets and liabilities previously held in BICC Central Africa (Private)
Limited (the "Subsidiary") to the holding company CAFCA Limited (together the “Group”). As a result of the scheme of reconstruction
BICC Central Africa (Private) Limited is now a dormant company and CAFCA Limited (the "Company") is now the operating company.
The financial statements are no longer prepared on a consolidated basis.
5 Common control transactions
A combination involving entities or businesses under common control is a business combination in which all of the combining entities
or businesses are ultimately controlled by the same party or parties both before and after the business combination, and that control
is not transitory and is excluded from the scope of IFRS 3, 'Business Combinations'. The Directors made a policy choice to use
predecessor accounting for common control transactions.
No assets or liabilities are restated to their fair values. Instead, the acquirer incorporates predecessor carrying values. These are the carrying
values that are related to the acquired entity. They are generally the carrying amounts of assets and liabilities of the acquired entity
from the consolidated financial statements of the highest entity that has common control for which consolidated financial statements
are prepared. These amounts include any goodwill recorded at the consolidated level in respect of the acquired entity. If no
consolidated financial statements are produced, the values used are those from the financial statements of the acquired entity.
The acquired entity's results and statement of financial position are incorporated retrospectively from the date on which the business
combination between entities under the same control occurred. Consequently, the financial statements do reflect the results of the
acquired entity for the period before the transaction occurred. The corresponding amounts for the previous year are also not restated.
6.Related party transactions
Reunert Electrical Engineering (Proprietary)Limited owns 71% of the company and the remaining 29% are widely held.
The following transactions were carried out with related parties:
30 September 30 Septermber
2016 2015
(i)Purchases during the period from the holding company:
CBI-Electric African Cables 238,143 5,184,645
CBI-Electric Aberdare/ATC Telecoms Cable(Proprietary) Limited 14,386 180,325
Sales :-
CBI-Electric African Cables - 3,630,226
(ii)There were no loans made to directors or management during the
year.(2015:US$)
(iii)Year end balances arising from purchase of goods/services:
Payables to related parties:
CBI-Electric African Cables - 576,686
(iv)Key management remuneration:
Key management includes directors(executive and non-executive)
and members of the executive committee
Salaries and short term benefits 411,598 416,290
Share options credit (28,433) 53,995
Director’ emoluments
-Fees 90,270 76,114
Total 473,435 546,399
7.Segmentation 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.
Revenue is primarily from customers who are domiciled in Zimbabwe and revenue from exeternal customers pertains mainly to customers domiciled in
South Africa,Zambia,Malawi and Mozambique.
Revenue analysis
30 September 2016 30 September 2015
Revenue for customers domiciled in Zimbabwe 16,257,021 23,801,710
Revenue from external customers 1,891,797 5,509,095
18,148,818 29,310,805
Revenue from transactions with single and local customers that amount to 10% of more each of the Group’s revenues , equal approximately
$6,007,571(2015 $12,406,957).These revenues are attributable to customers domiciled in Zimbabwe. The breakdown of the major component of the
total revenue from three major customers of least 10% is as follows:
30 September 2016 30 September 2015
Energy Transmission 6,007,571 12,406,957
The total of non-current assets located in Zimbabwe is $3,264,805 (2015:$3,435,371) and there are no non-current assets located in other
countries.
The segment information provided to the executive team for the product reportable segments for the year ended 30 September are as follows:
30 September 2016 30 September 2015
Revenue from customers 18,148,818 29,310,805
Profit before interest and taxation 678,028 2,445,275
Net finance income - 10,009
Finance cost (79,168) (2,733)
Income tax expense 259,424 656,027
Total assets 16,456,233 18,345,937
Liabilities 1,747,069 4,034,143
30 September 2016 30 September 2015
8.Property plant and equipment
Capital expenditure 173,684 415,275
Depreciation 310,038 254,441
COMMENTARY AND OVERVIEW OF RESULTS
In response to the anticipated drop in both local and export sales, the strategy for the year was to re-engineer the company from 300 ton a month
capacity to 200 ton a month capacity by dropping costs from $700 000 to $500 000 per month. This was done successfully and the reduction in
working capital resulted in a turnaround in borrowings from a net borrowed position of $680 523 to a net positive bank balance of $1 473 583.
Turnover dropped significantly from $29.3 million to $18.1 million mainly due to the reduction locally in the barter deal with ZESA and no
exports to South Africa.
Pretax profit dropped to $678 028 from $2 452 551 due to the 38% drop in turnover which moved the company towards break even turnover.
The company is well placed to respond to any improvements in our market either local or export – we have funds available and good stockholdings
to ensure quick response to inquiries. The current operating model is sustainable though at these turnover levels only a moderate profit will be
achieved.
Dividend
The Directors do not recommend paying out the cash generated as a dividend at this time due to the need to secure the long term viability of the
company against the background of continued increasing uncertainties in the market and the need to finance raw materials as and when foreign
exchange is made available.
C Kangara
Company Secretary
18 November 2016
Directors: H.P. Mkushi (Chairman) R.N. Webster (Managing)
E.T.Z Chidzonga P.E De Villiers G.Eddey A.E. Dickson A. Mabena S.E Mangwengwende G.J.H Steyn T.A Taylor
Date: 18/11/2016 12:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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