Annual Financial Report

RNS Number : 4039U

Kakuzi Ld

29 March 2019

 

KAKUZI PLC

ANNOUNCEMENT OF GROUP RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018

Condensed Consolidated Statement of Profit or Loss and other Comprehensive Income
			31 December 2018		31 December 2017
			Shs'000		Shs'000
Sales			3,152,831		2,823,926
Profit before fair value gain in non-current biological assets and income tax			610,001		766,324
Fair value gain in non-current biological assets			74,082		82,799
Profit before income tax			684,083		849,123
Income tax expense			(202,489	)	(257,480	)
Profit for the year			481,594		591,643
Other Comprehensive Income:
Items that are not reclassified to profit or loss:
Remeasurement of post-employment benefit obligations (net of tax)			3,046		1,735
Total comprehensive income			484,640		593,378
			Shs		Shs
Earnings per share (Shs):
Basic and diluted earnings per ordinary share			24.57		30.19

Condensed Consolidated Statement of Cash flows
			31 December 2018		31 December 2017
			Shs'000		Shs'000
Cash and cash equivalents at the beginning of the year			1,648,749		1,430,576
Net cash generated from operating activities			361,190		924,954
Net cash used in investing activities			(369,462	)	(587,801	)
Net cash used in financing activities			(137,200	)	(117,600	)
Net exchange losses on foreign currency cash & cash equivalent			(2,342	)	(1,380	)
(Decrease)/increase in cash and cash equivalents			(147,814	)	218,173
Cash and cash equivalents at the end of the year			1,500,935		1,648,749

Condensed Consolidated Statement of Financial Position
							31 December 2018		31 December 2017
							Shs'000		Shs'000
EQUITY
Share capital							98,000		98,000
Other reserves							19,653		16,607
Retained earnings							4,375,423		4,070,229
Proposed dividends							176,400		137,200
Total equity							4,669,476		4,322,036
Non-current liabilities							881,602		807,190
							5,551,078		5,129,226
REPRESENTED BY
Non-current assets							3,624,125		3,338,922
Current assets							815,982		758,455
Cash and cash balances							1,500,935		1,648,749
Current liabilities							(389,964	)	(616,900	)
Net current assets							1,926,953		1,790,304
							5,551,078		5,129,226

Condensed Consolidated Statement of Changes in Equity
	Share capital		Other reserves		Retained earnings		Proposed dividends		Total Equity
	Shs'000		Shs'000		Shs'000		Shs'000		Shs'000
On 1.1.2018	98,000		16,607		4,070,229		137,200		4,322,036
Profit for the year	-		3,046		481,594		-		484,640
Dividends - final for 2017	-		-		-		(137,200	)	(137,200	)
- proposed for 2018	-		-		(176,400)		176,400		-
On 31.12.2018	98,000		19,653		4,375,423		176,400		4,669,476

OVERVIEW:

The results for 2018 reflect a pre-tax profit of Shs 684 million compared to Shs 849 million in 2017.  The lower profits are as a result of lower avocado prices achieved, due to a heavily over supplied market in Europe.  Macadamia and forestry profits improved over the previous year as a result of increased production from our orchards and a rise in the demand for wood products.  Earnings per share was Shs 24.57 in 2018 compared to Shs 30.19 in 2017.

DIVIDEND:

The Directors recommend the payment of a first and final dividend for the financial year 2018 of Shs 9.00 per ordinary share (2017: Shs 7.00) subject to shareholders' approval. The dividend shall be paid on or about 30 June 2019 to the shareholders on the members' register at the close of business on Friday, 31 May 2019.

ANNUAL GENERAL MEETING:

The Annual General Meeting of the Company will be held on Tuesday 14 May 2019 at 12.00 Noon at Nairobi Serena Hotel.

BY ORDER OF THE BOARD

G H MCLEAN

CHAIRMAN                                                                                                                                                     

28 MARCH 2019

Deloitte_●                                                                                                                                            

Deloitte & Touche

Certified Public Accountants (Kenya) Deloitte Place

Waiyaki Way, Muthangari

P.O. Box 40092 - GPO 00100 Nairobi

Kenya

Tel: [phone]

Cell: [phone] Dropping Zone No.92

Email: [e-mail] www.deloitte.com

Tel: [phone]

Cell: [phone] Dropping Zone No.92

Email: [e-mail] www.deloitte.com

INDEPENDENT AUDITORS' REPORT ON THE CONDENSED COSOLIDATED FINANCIAL STATEMENTS

TO THE SHAREHOLDERS OF KAKUZI PLC

Opinion

The accompanying condensed consolidated financial statements of Kakuzi Plc and its subsidiaries (the "Group"), which comprise the condensed consolidated statement of financial position as at 31 December 2018, the condensed consolidated statement of profit or loss and other comprehensive income, the condensed consolidated statement of changes in equity and the condensed  consolidated statement of cash flows for the year then ended, are derived from the audited financial statements of the Group for the year ended 31 December 2018.

In our opinion, the accompanying condensed consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements of the Group, in accordance with the requirements of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulation, 2002 (''the Regulations'') as applicable to summary  financial statements.

Condensed consolidated financial Statements

The condensed consolidated financial statements do not contain all the disclosures required by International Financial Reporting Standards as applicable to annual financial statements. Reading the condensed consolidated financial statements and the auditors' report thereon, therefore, is not a substitute for reading the audited consolidated financial statements of the Group and the auditors' report thereon.

The audited financial statements and our report thereon

We expressed an unmodified audit opinion on the audited consolidated financial statements in our report dated 28 March 2019. That report also includes the communication of a key audit matter.

Directors' responsibility for the condensed consolidated financial statements

The Directors are responsible for the preparation of the condensed consolidated financial statements in accordance with the requirements of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulation, 2002 Requirements as applicable to condensed financial statements.

Auditors' responsibility

Our responsibility is to express an opinion on whether the condensed consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810 (Revised), Engagements to Report on Summary  Financial Statements.

CPA Anne Muraya, Practising certificate No. 1697.

Signing partner responsible for the independent audit

28 March 2019

 

END

 

 

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