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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').
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