Statement :ZCCM-IH Abridged Financial Results_2019

SENS ANNOUNCEMENT

(the "Notice" or "Announcement")

 

 

ZCCM INVESTMENTS HOLDINGS PLC ("ZCCM-IH")

[Incorporated in the Republic of Zambia]

Company registration number:      119540000771

Share Code:                                           ZCCM-IH

ISIN:                                                        ZM0000000037

Authorised by:                                     Chabby Chabala - Company Secretary

 

 

 

Stockbrokers Zambia Limited

[Founder Member of the Lusaka Securities Exchange]

[Regulated and licensed by the Securities and Exchange Commission of Zambia]

 

Contact Number:                               +260-211-232456

Website:                                                www.sbz.com.zm

 

 

The captioned Notice or Announcement has been approved by:

i.      the Lusaka Securities Exchange ("LuSE")

ii.    the Securities and Exchange Commission ("SEC")

iii.   Stockbrokers Zambia Limited ("SBZ")

 

 

The Notice or Announcement contained herein contains information that may be of a price sensitive nature.

 

 

ISSUED: 14 June 2021

 

 

ZCCM INVESTMENTS HOLDINGS PLC

[Incorporated in the Republic of Zambia]

Company registration number: 771

Share Code: ZCCM-IH

ISIN: ZM0000000037

["ZCCM-IH" or "the Company"]

 

 

INTRODUCTION

In compliance with the requirements of the Securities Act No. 41 of 2016, ZCCM Investments Holdings Plc ("ZCCM-IH Plc") announces the provisional financial statements results of the Company and its subsidiary (Collectively referred to as the ''the Group'') for the nine-month period ended 31 December 2019.

CHANGE OF FINANCIAL YEAR END

The financial year end of the Group was changed from 31 March to 31 December in order to comply with the provisions of Section 71 of the Public Finance Management Act and align to the majority shareholder's financial year end. Accordingly, the current financial statements are prepared for nine (9) months from 1 April 2019 to 31 December 2019 and as a result, the comparative figures stated in the statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows and the related notes are not comparable.

STRUCTURE OF THE ZCCM-IH GROUP

The ZCCM-IH Group consisted of the following eight (8) subsidiary companies as at 31 December 2019:

Name	Shareholding
ZCCM-IH	Parent Company
Ndola Lime Company Limited	100%
Kariba Minerals Limited	100%
Misenge Environmental and Technical Services Limited	100%
Mushe Milling Limited	100%
Nkandabwe Coal Mine Limited	100%
Kabundi Resources Limited	100%
Limestone Resources Limited	100%
Investrust Bank Plc	71.4%

 

 

 

 

The Company also had other interests in the undernoted companies:

Name	Shareholding
Rembrandt Properties	49.00%
Central African Cement Company Limited	49.00%
Maamba Collieries Limited	35.00%
Copperbelt Energy Corporation Plc	24.10%
Konkola Copper Mines Plc	20.60%
Kansanshi Mining Plc	20.00%
CEC Africa Investments Limited	20.00%
Lubambe Copper Mine Plc	20.00%
CNMC Luanshya Copper Mines Plc	20.00%
Copper Tree Minerals Limited	15.58%
NFCA Africa Mining Plc	15.00%
Chibuluma Mines Plc	15.00%
Chambishi Metals Plc	10.00%
Mopani Copper Mines Plc	10.00%
Oranto Oil Block	10.00%
Nkana Alloy Smelting Company Limited	10.00%
ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
			Audited			Audited
			Nine Months to 31 Dec 2019			12 Months to 31 Mar 2019
			ZMW'000			ZMW'000
Revenue			62,432			76,670
Gross profit			9,417			45,166
Operating loss			(155,385)			(580,284)
Net finance income			139,074			5,829
Share of profit of equity accounted investees			420,348			973,213
Profit before tax			404,037			398,758
Income tax (expense)/credit			(22,871)			49,105
Profit from continuing operations			381,166			447,863
Loss from discontinued operations			(73,979)			-
Profit for the year			307,187			447,863
Earnings per share (k)			1.91			2.79
Basic and diluted earnings per share (k)			1.91			2.79

 

 

ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME     Audited   Audited     Nine Months to 31 Dec 2019   12 Months to 31 Mar 2019     ZMW'000   ZMW'000 Investment income       171,163      180,624 Operating profit /(loss)   17,096       (319,576) Net finance income               96,927       (123,835) Profit/(loss)/ before tax   175,601   (269,950) Income tax (expense)/ credit         (22,166)         162,426 Profit/(loss) for the year    153,435    (107,524)           Earnings per share (k)   0.95   (0.67)   Basic and diluted earnings per share (k)           0.95           (0.67)

 

	ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION
			Audited				Audited
			31 Dec 2019				31 Mar 2019
	Assets		ZMW'000				ZMW'000
	Property, plant and equipment		299,125				187,268
	Intangible assets		648				8,532
	Investment property		167,970				251,230
	Investments in associates		11,855,067				10,276,405
	Goodwill		119,818				-
	Financial assets at fair value through profit or loss		-				584
	Inventories		52,057				104,681
	Trade and other receivables		729,685				1,153,236
	Assets held for sale		1,127,333				-
	Deferred tax assets		564,304				601,589
	Term deposits		274,960				754,438
	Cash and cash equivalents		56,816				74,480
	Total assets		15,247,783				13,412,443
	Equity and liabilities
	Share capital and reserves		12,629,831				11,025,116
	Bank overdraft		2,641				-
	Borrowings		-				104,357
	Deferred tax liabilities		238,185				245,455
	Trade and other payables		738,912				1,553,171
	Liabilities associated with assets classified as held for sale		1,191,270				-
	Provisions		83,118				127,590
	Retirement benefits		34,669				34,180
	Provisions for environmental rehabilitation		119,253				145,460
	Current tax liabilities		209,904				177,114
	Total equity and liabilities		15,247,783				13,412,443
	ABRIDGED COMPANY STATEMENT OF FINANCIAL POSITION
			Audited				Audited
			31 Dec 2019				31 Mar 2019
	Assets		ZMW'000				ZMW'000
	Property, plant and equipment		88,439				85,819
	Intangible assets		648				671
	Investment property		167,970				157,606
	Investments in subsidiaries		147,317				69,987
	Investments in associates		10,746,818				9,703,369
	Assets held for sale		387,110				-
	Trade and other receivables		719,855				842,664
	Term deposit		273,717				727,554
	Cash and cash equivalents		54,359				26,276
	Total assets		12,586,233				11,613,946
	Equity and liabilities
	Capital and reserves		9,484,935				8,661,948
	Borrowings		-				103,271
	Deferred tax liabilities		2,688,472				2,306,727
	Trade and other payables		52,271				77,342
	Provisions		83,118				127,590
	Retirement benefits		7,971				5,513
	Provisions for environmental rehabilitation		55,258				112,905
	Current tax liabilities		214,208				218,650
	Total equity and liabilities		12,586,233				11,613,946
ABRIDGED GROUP STATEMENT OF CASH FLOWS
				Audited		Audited
				Nine Months to 31 Dec 2019		12 Months to 31 Mar 2019
				ZMW'000		ZMW'000
Net cash flow from operating activities				190,389		(238,880)
Net cash used in investing activities				37,696		38,181
Net cash outflow on financing				(136,702)		(64,207)
Increase in cash and cash equivalents				91,383		(264,906)
Cash and cash equivalents at the beginning of the year				74,480		339,386
Cash and cash equivalents at the end of the year				165,865		74,480
Included in the statement of financial position				54,175		74,480
Included in assets held for sale				111,688		-
				165,865		74,480
ABRIDGED COMPANY STATEMENT OF CASH FLOWS
				Audited		Audited
				Nine months to 31 Dec 2019		12 Months to 31 Mar 2019
				ZMW'000		ZMW'000
Net cash flow from operating activities				93,439		(80,596)
Net cash used in investing activities				37,915		(334,341)
Net cash outflow on financing				(103,271)		103,271
Increase in cash and cash equivalents				28,083		(311,666)
Cash and cash equivalents at the beginning of the year				26,276		337,942
Cash and cash equivalents at the end of the year				54,359		26,276

 

 

 

ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY

 

		Audited		Audited
		9 Months to 31 Dec 2019		12 Months to 31 Mar 2019
		ZMW'000		ZMW'000
Balance at 1 April		11,025,116		8,771,841
Profit for the period		307,187		447,863
Other comprehensive income		1,297,528		2,038,573
Dividend paid		-		(233,161)
Balance at 31 December/ March		12,629,831		11,025,116

 

 ABRIDGED COMPANY STATEMENT OF CHANGES IN EQUITY

				Audited				Audited
				Nine months to 31 Dec 2019				12 months to 31 Mar 2019
				ZMW'000				ZMW'000
Balance at 1 April				8,661,948				5,790,154
Profit/ (loss) for the period				153,435				(107,524)
Other comprehensive income				669,552				3,212,479
Dividend paid				-				(233,161)
Balance at 31 December/ March				9,484,935				8,661,948

 

 

1.       FINANCIAL PERFORMANCE

The Group reported a profit for the nine-month period of ZMW307 million (USD23 million) (March 2019: ZMW448 million (USD40 million)). The 31% decrease in profitability was mainly due to the fact that the previous period is accounting for 12 months as compared to 9 months for the current period. Furthermore, there was a decrease in share of profit of equity accounted investee companies on account of the impairment of receivables by associate companies such as Kansanshi Mining Plc and Copperbelt Energy Corporation Plc.

 

The Company reported a profit for the year of ZMW153 million (USD12 million) (March 2019: loss ZMW108 million (USD10 million)), mainly due to exchange gains on foreign denominated assets and reduced administrative costs such as impairment of financial assets accounted at fair value through profit or loss, loans and receivables.

 

The Group and Company's retained earnings as at 31 December 2019 were positive at ZMW2,191 million (USD179 million) (March 2019: ZMW 1,857 million (USD155 million)) and ZMW978 million (USD79 million) (March 2019: ZMW825 million (USD68 million)) respectively. The increase in retained earnings is attributed to recorded Group and Company record profits in this period of ZMW307 million (USD23 million) and ZMW153 million (USD12 million) respectively.

 

Group total assets increased by 14% to ZMW15.2 billion (USD 1.2 billion) as at 31 December 2019 from ZMW13.4 billion (USD1.1 billion) as at 31 March 2019. This is mainly attributed to an increase in values of investments in associates from ZMW 10.3 billion (USD956 million) as at 31 March 2019 to ZMW 11.9 billion (USD.

 

 

 

2.   DIVIDEND

 

The Directors will recommend a final dividend payout of ZMW53,064, 601.26 (USD2,391,590.11) in total ( K 0.33 per share (USD0.0149)).

 

3.   SIGNIFICANT DEVELOPMENTS

 

 ZCCM-IH's investments were steered towards the mining sector. Thus, three core strategies were employed targeted at driving portfolio growth which were:

 

·   Pursuit of the royalty model in order to introduce new revenue stream;

·   Realignment of the portfolio to achieve more focus in mining and mining related activities; and

·   Development of turnaround strategies for loss making subsidiaries.

 

 

 

4.   OUTLOOK

 

Looking into the future, the mining sector is generally expected to face challenges during early to mid-2020 due to depressed commodity prices and disruption in international trade caused by the Novel Coronavirus (COVID-19) pandemic.

 

Despite these challenges, ZCCM-IH is committed to enhance value creation for its shareholders. Thus, ZCCM-IH will continue to diversify within the mining sector to mitigate slumps that may be experienced in some metals at a particular time while taking advantage of surges occurring in other metals during the same time.  

 

 

 

 

By Order of the Board

Chabby Chabala

Company Secretary

 

Issued in Lusaka, Zambia on 14 June 2021

	T     |     +260-211-232456   E     |     [email protected]   W   |     www.sbz.com.zm   Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia
First Issued on 14 June 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APPENDICES

US DOLLAR ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
		31-Dec- 19				31-Mar-19
		USD'000				USD'000
Revenue		4,687				6,848
Gross profit		707				4,034
Operating loss		(11,664)				(51,831)
Net finance income		10,440				521
Share of profit of equity accounted investees		31,555				86,926
Profit before tax		30,331				35,616
Income tax		(1,717)				4,386
Profit for  continuing operations		28,614				40,002
Profit for  discontinued operations		(5,554)				-
Profit for the year		23,060				40,002
Earnings per share (USD)		0.14				0.25
Basic and diluted earnings per share (USD)		0.14				0.25
US DOLLAR ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
	31-Dec- 19			31-Mar-19
	USD'000			USD'000
Investment income	12,849			16,133
Operating profit/(loss)	1,283			(28,543)
Net finance income	11,899			4,433
Profit/(loss) before tax	13,182			(24,110)
Income tax	(1,664)			14,508
Profit/(loss) for the year	11,518			(9,602)
Earnings per share (USD)	0.07			(0.06)
Basic and diluted earnings per share (USD)	0.07			( 0.06)

 

 

 

US DOLLAR ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019
	31-Dec-19			31-Mar-19
	USD'000			USD'000
Assets
Non-Current Asset	1,066,794			976,391
Current Assets	138,250			123,892
Total Assets	1,205,044			1,100,283
Equity and Liabilities
Shareholders' Funds	1,017,413			904,440
Non-Current Liabilities	22,799			58,071
Current Liabilities	164,832			137,772
Total Equity and Liabilities	1,205,044			1,100,283
US DOLLAR ABRIDGED COMPANY  STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019
		31-Dec-19			31-Mar-19
		USD'000			USD'000
Assets
Non-Current Asset		934,511			855,568
Current Assets		76,540			97,175
Total Assets		1,011,051			952,743
Equity and Liabilities
Shareholders' Funds		788,777			710,577
Non-Current Liabilities		197,218			198,945
Current Liabilities		25,056			43,221
Total Equity and Liabilities		1,011,051			952,743