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Unaudited Abridged Financial Results for the six months ended 31 March 2019
Cafca Limited
Share Code: CAC
ISIN Code: ZW0009011942
Unaudited Abridged Financial Results for the six months ended 31 March 2019
All figures in United Stated Dollars
UNUADITED UNAUDITED AUDITED
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
30 SEPETMBER
31 MARCH 2019 31 MARCH 2018 2018
ABRIDGED STATEMENT OF COMPREHENSIVE INCOME $ $ $
Revenue 18,389,544 13,261,956 30,382,348
Operating profit 3,546,518 2,457,172 5,234,021
Profit Before Income tax 3,546,518 2,457,172 5,234,021
Income tax expense (994,406) (663,032) (1,374,589)
Profit for the period 2,552,112 1,794,140 3,859,432
Other Comprehensive Income: - - -
Total Comprehensive Income for the period 2,522,112 1,794,140 3,859,432
Issued Ordinary Shares (weighted) (number) 33,136,000 33,009,000 33,059,000
Basic Earnings per share (cents) 7.70 5.44 11.67
Diluted Earnings per share(number) 33,459,000 33,459,000 33,459,000
Diluted Earnings per share (cents) 7.63 5.36 11.53
Headline Earnings per share(number) 33,136,666 32,009,000 33,059,000
Headline Earnings per share (cents) 7.70 5.44 11.67
UNAUDITED UNAUDITED AUDITED
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
30 SEPTEMBER
STATEMENT OF FINANCIAL POSITION 31 MARCH 2019 31 MARCH 2018 2018
$
$ $
ASSETS
Non Current Assets
Property, plant and equipment 3,121,495 3,121,369 2,990,638
Loans and receivables - 12,361 -
Current Assets
Inventory 10,636,783 8,042,110 8,624,425
Trade and other receivables 2,330,501 1,858,500 2,041,792
Cash and cash equivalents 7,082,707 7,743,423 8,854,476
Total Assets 23,171,486 20,777,763 22,511,331
Equity attributable to owners of the parent
Share capital 331 328 331
Share premium 324,871 220,012 254,701
Share option reserve 251,413 132,000 193,600
Retained earnings 16,169,581 17,054,609 15,648,705
Total Equity 16,746,196 17,406,949 16,097,337
LIABILITIES
Non-current assets
Deferred income tax liabilities 641,972 773,757 656,692
Current liabilities
Trade and other payables 3,262,905 2,406,074 2,167,920
Current income tax liabilities 489,176 190,983 118,187
Dividend payable 2,031,237 - 3,471,195
Total liabilities 6,425,290 3,370,814 6,413,994
Total equity and liabilities 23,171,486 20,777,763 22,551,331
STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Share Option Retained
Reserve earnings Total
$ $ $ $ $
Balance at 1 October 2017 328 177,948 20,056 15,260,469 15,458,801
Transaction with owners:
Issue of shares - 40,400 - - 40,400
Share options 3 36,353 173,544 - 209,900
Comprehensive income:
Profit for the year - - - 3,859,432 3,859,432
Dividend declared (3,471,195) (3,471,195)
Balance at 30 September 2018 331 254,701 193,600 15,648,706 16,097,338
Balance at 1 October 2018 331 254,701 193,600 15,648,706 16,097,338
Transaction with owners:
Issue of shares - 19,250 - - 19,250
Share options
Comprehensive income: - 50,920 57,767 - 108,733
Profit for the period - - - 2,252,112 2,252,112
Dividend declared - - - (2,031,237) (2,031,237)
Balance at 31 March 2019 331 324,871 251,413 16,169,581 16,746,196
ABRIDGED STATEMENT OF CASH FLOWS
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
31 MARCH 2019 31 MARCH 2018 30 SEPTEMBER 2018
Profit before income tax 3,546,518 2,457,172 5,234,021
Depreciation 197,646 179,686 361,528
Share option expense 108,733 122,208 209,900
Profit on sale of property plant,and equipment (7,500) (3,770) (3,770)
Fiance income received (164) (195) (1,364)
Changes in working capital (4,677,277) 1,283,527 285,946
cash utilised in operations (832,044) 4,038,628 6,086,261
Finance income (164) (195) 1,364
Income tax paid (637,786) (468,521) (1,369,640)
Net cash (utilised)/generated from operating
activities ( 1,469,666) 3,570,302 4,717,985
Acquisition of plant and equipment (328,503) (36,799) (88,209)
Proceeds from sale of property plant and
equipment 7,150 3,770 3,769
Treasury bills maturity - 6,179 12,360
Net utilised in investing activities (321,353) (26,850) (72,080)
CASHFLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital 19,250 31,800 40,400
Net in(decrease)/increase in cash and cash equivalents (1,771,769) 3,575,252 4,686,305
Cash and cash equivalents at beginning of the period 8,854,476 4,168,171 4,168,171
Cash and cash equivalents at end of period 7,082,707 7,743,423 8,854,476
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 2018. IAS 21
has not been complied with as it in conflict with statutory instrument 33 of 2019.
IFRS 9 and IFRS 15 effective 1 October 2018 have had no material impact on numbers presented
2.The financial statements for the period October to March 2019 are in ZWL$ and results for March 2018 and September 2018 US$.
3.Related party transactions
Reunert Engineering(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 2019 31 MARCH 2018 30 SEPTEMBER
2018
Purchases during the year from holding company
CBI-Electric African Cables a division of ATC(Pty) Ltd 622,658 1,403,088 2,602,046
CBI Electric Telecoms Cable(Pty) Ltd - 21,345 23,627
Metal Fabricators of Zambia PLC 52,788 56,213 56,213
Goods and services are bought from related parties on
Commercial terms and conditions.
Sales during the year to holding company
Metal Fabricators of Zambia PLC - 18,346 18,346
Balances arising from purchase of goods and services
Payables to related parties
CBI-Electric African Cables a division of ATC (Pty) Ltd 32,170 394,593 7,950
Metal Fabricators of Zambia PLC - 56,213 -
There were no loans made to directors of the Group companies
Key management remuneration
Key management includes directors(executive and non-executive)
and executive managers(members of the executive)
Salaries and short term benefits 403,562 310,791 655,336
Share options(credit)/charge 108,122 122,208 209,900
Directors fees 48,180 44,530 65,058
Commitments
4.The Company had no significant capital commitments authorised by directors or contracted for at the reporting period.
5.Property plant and equipment
SIX MONTHS TO SIX MONHTS TO FULL YEAR TO
31 MARCH 2019 31 MARCH 2018 30 SEPTEMBER 2018
Capital expenditure 359,307 150,292 173,684
Depreciation 180,032 164,659 319,270
6.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.
UNUADITED UNAUDITED AUDITED
SIX MONTHS TO SIX MONTHS TO FULL YEAR TO
30 SEPETMBER
31 MARCH 2019 31 MARCH 2018 2018
Revenue from customers domiciled in Zimbabwe 17,761,220 8,931,661 29,327,891
Revenue from external customers 828,324 425,930 1,054,457
Total 18,589,544 13,261,596 30,382,348
Revenue from transactions with single local customers that amounted to 10% of more of each of the Company’s revenues equal approximately to ZWL$
$2,592,366.
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 2,592,366 4,968,291 6,583,033
The segment information provided to the executive team for the reportable segments for six months to 31 March are as follows:
Revenue from customers 18,589,544 13,261,956 30,382,348
Depreciation 197,646 179,686 361,529
Share option charge 108,733 122,208 209,900
Profit before income tax 3,546,518 2,457,172 5,234,021
Income tax expense 994,406 663,032 1,374,589
Total assets 23,171,486 20,777,763 22,511,331
Total liabilities 6,425,290 3,370,814 6,413,994
7.Sensitivity Analysis
A senisitivity analysis has not been done on revenue to consider the impact of the various exchange base anomalies as the rate information is not
available
8.The final dividend for the year ended 30 September 2018 was paid to the transfer secretaries on 8 October 2018.Payment by the Transfer
secretaries to external shareholders is awaiting Reserve Bank of Zimbabwe approval to remit.Local shareholders not paid must please contact the
Transfer secretaries as per contact details at the end of the commentary.
COMMENTARY AND OVERVIEW OF RESULTS
PROFITABILITY
Revenue for the six month period to 31 March 2019 was ZWL $18,6 million whilst the revenue for the comparative period last year was US$13,3
million. It should be noted that 4½ months of the current year’s revenue has been deemed by the Authorities to be at an exchange rate of 1:1 to
the US$. The functional currency of the Country and CAFCA was changed on 22 February 2019 to ZWL from US$.
Translation of current and previous year’s revenue to achieve comparability has not been possible as there is a conflict between Zimbabwean
legislation Statutory Instrument 33 of 2019 and International Accounting Standard 21 as to the exchange rates to use.
The pretax profit for the period is ZWL $3,546 million whilst the profit for the comparative period last year was US$2,456(m). Stakeholders
should be wary for the reasons given above to place any significance on year on year comparison.
STATEMENT OF FINANCIAL POSITION
Fixed assets of $3,121,495 are stated at the US$ conversion cost from 2009 with additions since then in US$ except for current additions of $298
490 which were purchased at ZWL rates.
Inventories of ZWL $10,6 million can be split as to ZWL $6,6 million being at parity to US$ with the balance being ZWL related.
Debtors and bank balances of $9.3 million can be split into $1,5 million of US$ balances and the remainder ZWL$ balance.
All other amounts in the Statement of Financial Position are ZWL$ related.
What is significant to note from the Statement of Financial Position is that there is adequate liquidity to operate and trade for the foreseeable
future and adequate hedges in various asset classes against any future hyperinflation. There is no exposure to US$ liabilities.
OUTLOOK
The company is well placed to meet all the requirements of the local market and to continue meeting the requirements of our export customers.
The company is concerned that the shortage of foreign currency is going to lead to acute hyperinflation and the customers will not be able to
either afford or finance purchases from CAFCA.
DIVIDEND
Notice is hereby given that the Board declared an interim dividend of 6.13 ZWL cents per share for the year ended 31 September 2019 payable in
respect of all the ordinary shares of the Company. This dividend will be payable in full to all Shareholders of the Company registered at the
close of business on 31 May 2019.
The payment of the dividend will take place on or about 14 June 2019. The applicable shareholder’s tax will be deducted from the Gross Dividends.
The shares of the Company will be traded cum-dividend on the Zimbabwe Stock Exchange up to the market day of 28 May 2019 and ex-dividend as from
29 May 2019.
Shareholders are requested to submit/update their mailing and banking details with the Transfer Secretaries to enable the payment of their
dividends on the following contacts.
First Transfer Secretaries (Pvt) Ltd
1 Armagh Avenue
Eastlea
Harare
Telephone: +263 242 782869/72 or 776628/49/59/69/74
Email: info@fts-net.com
By order of Board
C Kangara
Company Secretary
16 May 2019
Directors: H.P.Mkushi (Chairman), R.N. Webster (Managing), E.T.Z.Chidzonga
A.Mabena, S.E Mangwengwende, P De Villiers, L.De Jager, G.J.H Steyn,T.Taylor
Date: 16/05/2019 02:14:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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