TIDMZCC
RNS Number : 1802B
ZCCM Invs.Hldgs PLC
14 June 2016
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"]
DIRECTORS' HALF YEARLY SUMMARY FOR THE PERIODED 30(TH) SEPTEMBER
2015:
Introduction
In compliance with the requirements of the "Securities Act, Cap
354 of the Laws of Zambia" and the Listing Rules of the Lusaka
Stock Exchange, ZCCM Investments Holdings Plc. announces the
unaudited results for the six months' period ended 30(th) September
2015.
Financial Performance
The Group achieved a turnover of K208.4 million for the
six-month period ended 30(th) September 2015 which was 10% above
the turnover of K188.6 million achieved during the six months to
30(th) September 2014. The increase in Group turnover was mainly as
a result of an increase in turnover for Ndola Lime Company by 21%
from K96.3 million to K116.5 million for the six months ended
30(th) September 2015., Dividends earned decreased by 56% to K11.9
million for the period ended 30(th) September 2015 (September 2014:
K27.1 million. However, Interest Income increased by 23% to K80
million (September 2014: K65.2 million).
The group recorded exchange gains of K1 316 million (2014:
losses K66 million) during the period under review. This was due to
the depreciation of the kwacha from K7.6250/$ at the start of April
2015 (April 2014: K6.1555/$) to K12.3815/$ as at the end of
September 2015 (September 2014: K6.2705).
Dividends were earned from Kansanshi Mining Plc. (K11.9
million).
Interest earned from placements and fixed deposits amounted to
K24.9 million (September 2014: K15.4 million). Other income was
K4.8 million (September 2014: K9.9 million). This was mainly
composed of Management fees amounting to K4.3 million (September
2014: K3.9 million). The cost of turnover was K156.7 million for
the period to 30(th) September 2015 (September 2014: K129.6
million). The operating profit of K51.7 million was lower than the
K59 million achieved during the same period in 2014.
The Group recorded share of losses of Associate Companies of K1
546.7 million (September 2014: Loss: K45.2 million). Overall the
performance of the Associate companies was weak during the period.
The significant share of losses of Associate companies were
recorded from Kansanshi Mining Plc (K871.9 million), Konkola Copper
Mine Plc (K546.42 million), Copperbelt Energy (K133.36 million).
The price of copper reduced to US$4,970 per ton as at 30 September
2015 compared to US$6,748 per ton as at 30(th) September 2014
representing a 26% decrease. As a result, the Group recorded an
after tax loss of K696.5 million (September 2014: Loss K55.3
million).
Operations and Strategic developments
Sale down of 27% GRZ shares in ZCCM-IH
During the presentation of the 2015 Zambian National Budget, the
Minister of Finance directed the Securities and Exchange Commission
(SEC)to ensure that all listed Companies on the Lusaka Stock
Exchange LuSE complied with minimum LuSE minimum free (public
)float requirement of 25% of the shares. In this regard the
Minister of Finance announced that the Government of the Republic
of Zambia (GRZ) would reduce its shareholding in ZCCM-IH from 87.5%
to 60.3% via the sale of its shares proportionate to the required
reduction.
Pursuant to the above, on 08 June 2015 GRZ sold 15,850,631 of
its 43,811,861 Class B shares in ZCCM-IH to the National Pension
Scheme Authority (NAPSA) of Zambia (As Tranche1 of the sale down).
As a result of the sale, GRZ shareholding in ZCCM-IH reduced from
87.5% to 77.5%. Tranche2 of the sell down relates to the sale of
the balance of 27,961,237 Class B shares and was launched on 30
July 2015. Tranche 2 involves a Preferential Secondary Market offer
of the shares for which priority is to be given to Preferred
Applicants (Zambian Persons)
in case of oversubscription. The offer closed on 30November 2015.
Maamba Collieries Thermal Power Plant Project Attains Financial
close
On 28 July 2015 Maamba Collieries Limited's fully integrated
coal and power project reached Financial Closure. The project,
which has already achieved about 80 percent completion, consists of
the redevelopment of the existing coal mine and the construction of
a 300 MW coal fired thermal power station and related
infrastructure near the town of Maamba. The 300-megawatt coal-fired
power project, fully integrated with captive coal mining, is
estimated to cost about USD 830 million.
The project is being funded on a debt equity ratio of 70:30. The
long-term loans are being advanced by a consortium of lenders
comprising large international commercial banks together with
development financial
institutions on a limited recourse project finance basis.
Development financial institutions include the Development Bank of
Southern Africa and the Industrial Development Corporation of South
Africa, while
commercial banks include Bank of China, Industrial and
Commercial Bank of China, Standard Chartered Bank and Barclays
Africa Limited. This is the first private power project in the
Sub-Saharan region to receive export credit agency insurance cover
from China Export and Credit Insurance Corporation (Sinosure). This
combination makes it a unique collaborative project in Africa,
incorporating sponsors from Singapore and Zambia, principal
contractors from China and funding by financial institutions across
the globe.
Given the shortage of, and necessity for electricity in Zambia,
as well as the wider region, the project is to provide the much
needed dependable and sustainable base load power, which is crucial
for the country's economic growth and energy security. The power
plant has the required infrastructure to scale up in line with the
growing demand up to 600MW.
Maamba Collieries Limited signed a 20-year power purchase
agreement to supply 100% of the power plant's output to Zambia
Electricity Supply Corporation. The project is scheduled for
commissioning by mid-2016 where after Nava Bharat will be
responsible for the operation & maintenance.
GRZ Transfers shares to Industrial Development Corporation
On 21 January 2014, the Government of the Republic of Zambia
("GRZ") incorporated the Industrial Development Corporation Zambia
Limited ("IDC"). The IDC is wholly owned by the GRZ, via the
Minister of Finance (Incorporation) Act, Cap 349 of the Laws of
Zambia ("Minister of Finance").
The primary role and objective of the IDC is to stimulate
economic development and growth, via industrialisation, job and
wealth creation in Zambia, and do so for the benefit of the Zambian
citizenry. Simultaneously, the IDC has been tasked by the GRZ to
superintend the operations of state owned enterprises and its
shareholding in companies incorporated under the Companies Act, Cap
388 of the Laws of Zambia as well those regulated under the Banking
and Financial Services Act, Cap 387 of the Laws of Zambia.
Accordingly, on 24th August 2015, GRZ completed the transfer of
its shares from the Minister of Finance to the IDC in 29 companies
including ZCCM-IH.
As at close of business on 23 August 2015, the Government of the
Republic of Zambia held 77.7% shareholding in ZCCM-IH, via the
Minister of Finance, made up of 96,926,669 as Class "A" shares and
27,961,237 as Class"B" shares. On 24 August 2015, GRZ transferred
to the IDC all the 96,926,669 Class "A" shares, representing 60.3%
shareholding in ZCCM-IH. The 27,961,237 Class"B"shares,
representing 17.4% shareholding in ZCCM-IH have not been
transferred to the IDC at this stage. These were available for sale
under a Preferential Secondary Market Offer.
The table below shows the shareholding in ZCCM-IH after the
transfer of all the Class A shares to the IDC on 24 August
2015.
SHAREHOLDER Class Shareholding Shareholding
in ZCCM-IH before in ZCCM-IH
24(th) August on and after
2015 24(th) August
2015
------------------------ ------- --------------------- -------------------
Number of % Number %
Shares of Shares
------------------------ ------- -------------- ----- ------------ -----
GRZ - Directly
held through Minister
of Finance A 96,926,669 60.3 - -
------------------------ ------- -------------- ----- ------------ -----
GRZ - Directly
held through Minister
of Finance B 27,961,237 17.4 27,961,237 17.4
------------------------ ------- -------------- ----- ------------ -----
IDC A - - 96,926,669 60.3
------------------------ ------- -------------- ----- ------------ -----
NAPSA B 24,120,043 15.0 24,120,043 15.0
------------------------ ------- -------------- ----- ------------ -----
Other Shareholders B 11,792,337 7.3 11,792,337 7.3
------------------------ ------- -------------- ----- ------------ -----
A and
Total B 160,800,286 100 160,800,286 100
------------------------ ------- -------------- ----- ------------ -----
By Order of the Board
C Chabala
CCSO/Company Secretary
1 December 2015
CONSOLIDATED GROUP INCOME STATEMENT FOR THE SIX MONTHSED 30(TH)
SEPTEMBER 2015 (UNAUDITED)
SIX MONTHS SIX MONTHSEDED
30 September 30 September
2015 2014
Consolidated Consolidated
Income
Sales 116,525 96,342
Dividends 11,869 27,089
Interest Earned 80,001 65,200
208,395 188,631
Cost of turnover (155,216) (129,618)
Operating profit/(loss) 53,179 59,013
Exchange (loss)/gain 1,311,165 (66,283)
Impairment (406,416) -
Environmental
expenses (2,014) (1,459)
Interest charge (1,685) (733)
Royalty on
minerals (7,564) (4,572)
Other income 5,332 9,973
Associate Companies
Share of Loss (1,546,688) (45,190)
Profit/(loss) before
taxation (594,691) (49,251)
Income tax (6,706) (6,019)
Profit from continuing
operations (601,397) (55,270)
Retained profit/(Loss) (601,397) (55,270)
Earnings Per
Share (3.74) (0.34)
CONSOLIDATED GROUP STATEMENT OF FINANCIAL POSITION FOR THE SIX
MONTHSED 30(TH) SEPTEMBER 2015 (UNAUDITED)
30 September 30 September
2015 2014
K' 000 K' 000
Assets Employed
Non-Current
Assets 11,304,607 6,881,562
Current Assets 1,624,205 2,493,502
Total Assets 12,928,812 9,375,064
Equity and
Liabilities
Shareholders'
Funds 11,982,934 8,566,573
Non-Current
Liabilities 457,446 217,566
Current Liabilities 488,433 590,925
Total Equity and
Liabilities 12,928,812 9,375,064
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHSED
30(TH) SEPTEMBER 2015 (UNAUDITED)
Consolidated
statement of
changes
in equity
for the half
year to 30
September
2015
K'000
Share Share Total Retained Total
capital premium Reserves earnings
Notes
Balance at 1 April 2013 893 - 605,865 4,018,325 4,625,083
Total
comprehensive
income
Profit - - - 277,186 277,186
Currency translation -
equity
accounted investees - - 1,012,998 - 1,012,998
Amortisation of
revaluation
surplus, net of tax - - (433) 433 -
Actuarial loss on
defined
benefit, net of tax - - - (593) (593)
Issue of ordinary
shares 715 - - 715
Share premium - 2,089,343 - 2,089,343
------------- ---------------- --------------------- -------------------- -----------------------
Balance at 31 March
2014 1,608 2,089,343 1,618,430 4,295,351 8,004,732
------------- ---------------- --------------------- -------------------- -----------------------
Balance at 1 April 2014 1,608 2,089,343 1,618,430 4,295,351 8,004,732
Total
comprehensive
income
Profit - - (987,117) (987,117)
Currency translation -
equity
accounted investees - - 597,689 597,689
Revaluation surplus on
PPE,
net of tax 5,572 5,572
Amortisation of
revaluation
surplus - - (215) 215 -
Actuarial loss on
defined
benefit, net of tax - - (66) (66)
Payment of dividend (250,851) (250,851)
Balance at 31 March
2015 1,608 2,089,343 2,221,476 3,057,532 7,369,959
------------- ---------------- --------------------- -------------------- -----------------------
Balance at 1 April 2015 1,608 2,089,343 2,221,476 3,057,532 7,369,959
Total -
comprehensive
income
Profit (601,397) (601,397)
Currency translation -
equity
accounted investees 5,214,372 5,214,372
Revaluation -
surplus on
PPE,
net of tax
Amortisation -
of revaluation
surplus
Actuarial loss -
on defined
benefit, net
of tax
Payment of
dividend
Balance at 30 September
2015 1,608 2,089,343 7,435,848 2,456,135 11,982,934
------------- ---------------- --------------------- -------------------- -----------------------
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHSED 30(TH)
SEPTEMBER 2015 (UNAUDITED)
Cash flows from operating activities Sep-15 Sep-14
-601 -55
(Loss)/ Profit 397 270
Adjustments for:
Depreciation and Amortisation 10 437 9 440
Impairment loss on property, plant
and equipment
-65
Interest income -80 001 200
Interest expense 1 685 733
Exchange differences/interest on 197
borrowings 25 243 381
Change in fair value on financial -
assets at fair value through profit
or loss
Impairment of investments -
Fair value change on investment
property -53 0
Defined benefits expense -
Share of profit of equity - accounted 1 546
investees, net of tax 688 45 190
Profit on disposal of property,
plant and equipment -144
Tax expense 6 706 6 019
------------------- -------
138
Change in: 909 164 294
-11
Inventories 2 250 845
-691 314
Trade and other receivables 214 302
-35
Trade and other payables and provisions 21 733 643
Provision for environmental rehabilitation -157 -89
Conversion to equity of loan due
from an associate 0 0
405
Cash generated from operating activities 241 776 019
Interest paid -1 685 -733
Tax paid -44 057 0
Retirement benefits paid -4 632 -1 294
------------------- -------
402
Net cash from operating activities 191 402 992
------------------- -------
Cash flows from investing activities
Interest received 80 001 65 200
Proceeds from disposal of property,
plant and equipment 144 0
Acquisition of PPE and intangible -221 -111
assets 378 708
-579 108
Proceeds on maturity of fixed deposits 089 623
Acquisition of held to maturity -714
investments 514 007 537
-206 -652
Net cash used in investing activities 315 422
------------------- -------
Cash flows from financing activities
Proceeds from borrowings - 16 025
Repayment of borrowings -4 651 -4 555
Dividend Paid -
------------------- -------
Net cash used in/ from financing
activities -4 651 11 470
------------------- -------
Net (decrease)/ increase in cash -237
and cash equivalents -19 564 960
Cash and cash equivalents at 1 274
April 43 782 363
------------------- -------
Cash and cash equivalents at 31
March 24 218 36 403
------------------- -------
Issued in Lusaka, Zambia on 6 June 2016
T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ)
is a founder member of the Lusaka
Securities Exchange and is regulated
by the Securities and Exchange Commission
of Zambia
===========================================
First Issued on 6 June 2016
This information is provided by RNS
The company news service from the London Stock Exchange
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IR EALKLFLPKEFF
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