Wrap Text
Audited Abridged Financial Results for the year ended 30 September 2017
Cafca Limited
Share Code: CAC
ISIN Code: ZW0009011942
Notice To Shareholders
Audited Abridged Financial Results for the year ended 30 September 2017
All figures are in United States Dollars
30 SEPT 2017 30SEPT 2016
STATEMENT OF COMPREHENSIVE INCOME
Revenue 19,310,457 18,148,818
Operating profit 1,223,077 757,196
Finance income 3,150 -
Finance cost - (79,168)
Profit before income tax 1,226,227 678,028
Income tax expense (500,014) (259,424)
Profit for the year 726,213 418,604
Other comprehensive income: - -
Total comprehensive income for the year 726,213 418,604
Issued Ordinary Shares (weighted) (number) 32,874,000 32,830,666
Basic Earnings per share (cents) 2.21 1.28
Diluted Earnings per share(number) 33,459,000 33,459,000
Diluted Earnings per share (cents) 2.17 1.25
Headline earnings per share(number) 32,874,000 32,830,666
Headline earnings per share(cents) 2.17 1.25
STATEMENT OF FINANCIAL POSITION AT 31 SEPT 2017 AT 31 SEPT 2016
ASSETS $ $
Non-Current Assets
Property ,plant and equipment 3,263,957 3,246,265
Available for sale financial assets 18,540 18,540
Total non current assets 3,282,497 3,264,805
Current assets
Inventories 8,256,431 8,307,412
Current income tax receivables 18,540 84,085
Trade and other trade receivables 2,389,492 3,326,334
Cash and cash equivalents(excluding overdraft) 4,168,171 1,473,598
Total Assets 18,115,541 16,456,234
Equity attributable to owners of the parent
Share Capital 328 328
Share premium 177,948 169,281
Share option reserve 20,056 5,300
Retained earnings 15,260,469 14,534,256
Total Equity 15,458,801 14,709,165
LIABILITIES
Non-current liabilities
Deferred income tax liabilities 788,880 682,411
Current liabilities
Trade and other payables 1,496,132 735,654
Provisions 371,728 329,004
Total liabilities 2,867,740 1,064,658
Total equity and liabilities 18,115,541 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
Transfer of non-distributable reserve
Transaction with owners:
Issue of shares - 7,200 - - 7,200
Share options - 24,000 (52,433) (28,433)
Total comprehensive income for the year - - - 418,604 416,604
Net profit for the year - - - 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
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 - - 3,467
Total comprehensive income for the year - - - 726,213 726,213
Profit for the period - - - 726,213 726,213
Other comprehensive income for the year - - - - -
Balance at 30 September 2017 328 177,948 5,300 15,260,469 15,458,801
STATEMENT OF CASH FLOWS
30 September 2017 30 September 2016
Profit before income tax 1,226,227 678,028
Depreciation 358,763 319,270
Non-cash employee share based payment/(credit) 18,223 (28,433)
Profit on sale of property plant,
and equipment (14,723) (9,107)
Finance income 3,150 -
Finance costs - 79,168
Allowance for impairment of trade receivables 8,809 (39,771)
Working capital changes:
Decrease in inventories 120,120 1,188,883
Decrease in trade and other receivables 928,033 2,033,882
Increase/(decrease) in trade and other payables 760,478 (1,640,495)
Increase in provision for other liabilities and charges 42,724 2,640
Net cash generated from operations 3,382,667 2,538,896
Tax paid (328,410) (312,205)
Finance costs - (79,168)
Finance income (3,150) -
Net generated from operating activities 3,051,107 2,247,523
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property ,plant and equipment (376,455) (173,684)
Proceeds from sale of property,plant and equipment 14,723 23,574
Net cash utilised in investing activities (361,732) (150,110)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital 5,200 7,200
Increase in cash and cash equivalents 2,694,575 2,104,613
Cash and cash equivalents at the beginning of the year 1,473,596 (631,015)
Cash and cash equivalents at the end of year 4,168,171 1,473,596
NOTES THE FINANCIAL STATEMENTS
For the year ended 30 September 2017
1.CAFCA Limited (the “Company”) manufactures and supplies cables for transmission and distribution of energy and information.It is a public
limited company incorporated in Zimbabwe.The Company has its primary listing on the Zimbabwe Stock Exchange and secondary listing on the
Johannesburg Stock Exchange.
Basis of preparation
2.The financial statements of CAFCA Limited the (the “Company”) have been prepared in accordance with International Financial reporting Standards
(“IFRS”) and interpretations issued by IFRS Interpretations Committee.( “IFRS IC”) applicable to companies reporting under IFRS and in the manner
required by the Zimbabwe Companies Act(Chapter 24:03).The financial statements have been prepared under the historical cost convention.
Audit opinion
3. These financial results should be read in conjunction with the complete set of financial statements for the year ended 30 September 2017,which
have been audited by PricewaterhouseCoopers Chartered Accountants (Zimbabwe).The auditors unqualified audit opinion includes a section on key
audit matters as defined by ISA 701,’Communicating key audit matters in the independent auditors report, relating to trading conditions and
assessment of impairment of property,plant and equipment.This includes both the rationale for determining the key audit matters and how they were
addressed during the audit. The annual report including the auditors’ opinion on these financial results is available for inspection at the
Company’s registered office.
4.The financial statements are presented in United States Dollars which is the functional currency of the Company.
5.Related party transactions
Reunert Electrical Engineering (Proprietary)Limited owns 70.20% of the company and the remaining 29.80% are widely held.
The following transactions were carried out with related parties:
30 September 30 Septermber
2017 2016
(i) Sale of goods
Metal Fabricators of Zambia Plc( Zamefa) 411,365 -
(ii)Purchases during the period from the holding company:
CBI-Electric African Cables-A Division of ATC( Pty) Limited 729,207 170,587
CBI-Electric Telecoms Cable(Pty) Limited 17,336 14,386
Metal Fabricators of Zambia Plc(Zamefa) 1,393,489 -
(iii)Year end balances arising from purchase of goods/services:
a.Amounts due to related parties:
CBI-Electric African Cables-A Division of ATC (Pty) Limited 33,826 -
CBI-Electric Telecoms (Pty) Limited 17,336 -
b.Amounts due from related parties
Metal Fabricators of Zambia Plc(Zamefa) 106,644 -
(iv)There were no loans made to directors or management during the
year.(2016:US$)
(iv)Key management remuneration:
Key management includes directors(executive and non-executive)
and members of the executive committee
Salaries and short term benefits 621,063 591,490
Share options charge/(credit) 18,223 (28,433)
Director’ emoluments
-Fees 80,016 90,270
Total 719,302 653,327
6.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 external customers pertains mainly to customers domiciled in
Zambia,Malawi and Mozambique.
Revenue analysis
30 September 2017 30 September 2016
Revenue for customers domiciled in Zimbabwe 18,256,550 16,257,021
Revenue from external customers 1,053,907 1,891,797
19,310,457 18,148,818
Revenue from transactions with single and local customers that amount to 10% of more each of the Group’s revenues , equal approximately
US$5,879,764(2016 $6,007,571).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 2017 30 September 2016
Energy Transmission 5,879,764 6,007,571
The total of non-current assets located in Zimbabwe is $3,282,497 (2017:$3,264,805) 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 2017 30 September 2016
Revenue from customers 19,310,457 29,310,805
Profit before interest and taxation 1,226,227 678,028
Net finance income 3,150 -
Finance cost - 79,168
Total assets 18,115,541 16,456,234
Liabilities 20,656,740 1,747,069
30 September 2017 30 September 2016
8.Property plant and equipment
Capital expenditure 376,455 173,684
Depreciation 358,763 319,270
COMMENTARY AND OVERVIEW OF RESULTS
Revenue & Volumes
Revenue and volumes for the year were up 6% and 8% respectively on the prior year. The company has benefited from the lack of competition from
imports resulting from the difficulty in obtaining foreign currency. Utilities have purchased more aluminium products than in the prior year
accounting for the larger volume % increase over revenue % increase.
Profitability
With the revenue increase complementing the lower cost base, profits increased by 80% year on year. Of the $1,2 million profit before tax $100
183 was export incentive received from the Reserve Bank of Zimbabwe on our export receipts in the period.
Basic earnings per share increased 73% from 1.28 cents per share to 2.21 cents.
Statement of Financial Position
The company has managed credit facilities to generate cash to finance raw materials and the replacement of ageing plant. At the year end cash and
equivalents were $4,2 million mainly due to the improvement in working capital. Trade and other payables increased from $735 654 to $1 496 132
mainly due to lack of foreign currency to settle our foreign creditors.
Outlook
The company is currently benefiting from import protection – this period of protection must be used wisely to improve our competitiveness by
replacing key machines, cost containment and improving process efficiency.
Foreign currency is key to maintaining our supply of raw materials and enabling us to replace ageing plant. We also appreciate our responsibility
to generate foreign currency through exports and to meet all long term customer needs.
Dividend
The Directors recommend not paying a dividend during this period of protection as the company is expected to invest in improving its
competitiveness.
By order of Board
C Kangara
Company Secretary
16 November 2017
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: 16/11/2017 09:00:00 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.
Sharenet Sites 
