Interim Results
Steppe Cement Limited
05 September 2006
Steppe Cement Limited
Trading Results for the Half Year Ended 30 June 2006
and General Market Update
1. Interim Results
Steppe Cement Limited ('Steppe') is pleased to announce a consolidated profit
after tax for the six months ended 30 June 2006 of US$8.0 million.
The restructure of Steppe in advance of its admission to AIM was completed on 29
July 2005 and therefore at a consolidated level there is no direct comparison
with profitability for the first six months of 2005. The trading results of
Steppe's core operating subsidiary, Central Asia Cement JSC, for the six months
ended have however shown a strong improvement over those experienced for the six
months ended 30 June 2005. These operating results are summarized below:
-------------------- --------- ----------- --------
6 months ended 6 months ended
30-Jun-06 30-Jun-05
-------------------- --------- ----------- --------
Sales (tonnes) 365,443 320,809 14%
-------------------- --------- ----------- --------
Exchange rate (tenge to the US$) 118.7 136.3
-------------------- --------- ----------- --------
Sales (thousand tenge) 3,330,461 2,639,744 26%
-------------------- --------- ----------- --------
Sales (US$'000) 28,605 19,690 45%
-------------------- --------- ----------- --------
Profit before tax (US$'000) 11,553 7,648 51%
-------------------- --------- ----------- --------
Profit after tax (US$'000) 8,087 5,354 51%
-------------------- --------- ----------- --------
At the operational level, sales have increased by 26% in tenge with the average
sales price achieved rising from US$60/tonnes to US$75/tonne compared with the
corresponding period.
On the cost side of the business, Steppe has noted that oil price increases have
led to an increase in utilities and transportation cost. Steppe is in the
process of implementing cost containment measures to contain further increases.
A copy of Central Asia Cement's financial statements for the six months ended 30
June 2006 follows. These are also available at Steppe's web site:
www.steppecement.com
2. Update on the Kazakh Cement Market
The Kazakhstan cement market has grown by 30% over the first half of the year
and Steppe's directors expect it to grow by 20% by year end, taking its size to
6 million tons. The main markets remain Almaty and Astana.
Kazakhstan cement producers continue to struggle with the increased demand and
as a result imports have nearly doubled such that they currently represent
approximately 35% of the market. Due to this increasing demand both in
Kazakhstan in Russia, the overall market price of cement in Kazakhstan has
increased by approximately 20% in US$ terms over the past year.
Steppe's main competition remains the factories located in Southern Siberia and
other producers in northern Kazakhstan.
3. Personnel Appointments
Steppe is continuing to strengthen the management team on site with the
following appointments:
- Stuart Elliot as chief operating officer with emphasis on the line 6
start up. Until 2005, Stuart was chief operating officer of Cimenterie Nationale
in Lebanon and he has held senior operation roles for Rugby Cement UK.
- Ho Weng Keong - Mechanical engineer and maintenance manager of YTL
Cement (Malaysia)
- Francis Teoh Boon Tee, electrical engineer before with Blue Circle
UK and Malaysia
- Lee Gee Seng - Civil engineer (C Eng UK).
Together, these new managerial staff bring over 100 years experience in the
cement industry.
Steppe expects to add another three members to the senior management team in the
second half of 2006.
4. Plant Development
Steppe is continuing to successfully implement the improvements to the wet
process lines that should see production capacity from the wet process lines
reach 800,000 tonnes of cement for the 2006 (full year) and 850,000 tonnes of
cement for 2007.
Steppe has awarded approximately 60% of the contracts for the dry line
refurbishments, with the main contractors so far being FL Smidth (Denmark), ABB
(Switzerland), GE (Germany). It is estimated that the remaining contracts (apart
from mechanical erection) will be awarded during the summer 2006.
Mace has been appointed as project manager for the construction part of the
project and now has a team on site.
Re-commissioning of the dry process lines remains on schedule for completion
during the summers of 2007 and 2008.
5. Financing
The council of the Kazakhstan Stock Exchange approved Steppe's 2.7 billion tenge
(US$21.6 million) bond listing and the first auction took place on the 18 August
2006.
As of the 29 August 2006 Steppe had accepted bids for 710 million tenge (US$5.7
million) at an average APR of 9.8% and as of the 4th September 2006, Halik Bank
has agreed to subscribe the balance 1,990 million tenge at the same rate in
three equal tranches to be disbursed at the end of September, October and
November 2006.
Kazcommertz Bank has granted a credit line of US$46 million to open letters of
credit.
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Offshore Companies Act, 1990)
AND ITS SUBSIDIARY COMPANIES
INTERIM FINANCIAL STATEMENTS
CONTENTS PAGE(S)
Chief Executive Officer's Statement
General Information
Income Statement 1
Balance Sheet 2 - 3
Statement of Changes in Equity 4 - 5
Cash flow Statement 6 - 7
Notes to the Financial Statements 8 - 17
Appendix 18 - 20
GENERAL INFORMATION
1. Steppe Cement Ltd completed its restructuring exercise
involving the acquisition of Central Asia Cement JSC, the main operating
subsidiary on 29 July 2005.
2. For purposes of interim reporting for the 6 months ended 30
June 2006, the following condensed consolidated statements and notes (page 1-17)
were provided in accordance with the requirement of IFRS:
Comparative
Period Ended Period Ended
Income Statement 30 June 2006 30 June 2005
As at As at
Balance Sheet 30 June 2006 31 December 2005
Cash Flow Statement 30 June 2006 30 June 2005
Statement of Changes in Equity 30 June 2006 30 June 2005
3. To achieve a better understanding of the above Interim
Financial Statements, the following financial statements of the main operating
subsidiary, Central Asia Cement JSC are provided in the Appendix (page 18-20):
Comparative
Period Ended Period Ended
Income Statement 30 June 2006 30 June 2005
As at As at
Balance Sheet 30 June 2006 30 June 2005
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Offshore Companies Act, 1990)
AND ITS SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2006
The Group The Company
As at As at As at As at
30.6.06 30.06.05 30.6.06 30.06.05
Note USD'000 USD'000 USD'000 USD'000
Revenue 5 28,605 - - -
Cost of sales (12,401) - - -
--------- --------- --------- --------
Gross profit 16,204 - - -
Selling expenses (1,694) - - -
General and administrative (3,588) (3) (221) (2)
expenses --------- --------- --------- --------
Operating profit/(loss) 10,922 (3) (221) (2)
Investment income 46 - -
Finance costs (293) - -
Other income, net 830 - 45 -
--------- --------- --------- --------
Profit/(loss) before tax 11,505 (3) (176) (2)
Income tax expense 6 (3,473) - - -
--------- --------- --------- --------
Profit/(loss) for the period 8,032 (3) (176) (2)
========= ========= ========= ========
Attributable to:
Shareholders of the Company 8,032 (3) (176) (2)
========= ========= ========= ========
Earnings/(loss) per share:
Basic (cents) 7 0.07 (0.03)
========= =========
The accompanying notes form an integral part of the Condensed Financial
Statements.
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Offshore Companies Act, 1990)
AND ITS SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2006
The Group The Company
As at As at As at As at
30.6.06 31.12.05 30.6.06 31.12.05
Note USD'000 USD'000 USD'000 USD'000
Assets
Non-current assets:
Property, plant and equipment 8 42,129 29,955 - -
Investment in subsidiary 9 - - 26,188 7,000
companies
Advances paid 12 - 131 - -
-------- --------- -------- --------
42,129 30,086 26,188 7,000
-------- --------- -------- --------
Current Assets
Inventories, net 10 7,491 6,529 - -
Trade receivable, net 11 32 731 - -
Amount owing by subsidiary - - - 252
companies
Other receivables, advances and
prepaid 12 4,189 1,566 81 1
expenses
Cash and bank balances 13,775 1,511 781 15
-------- --------- -------- --------
25,487 10,337 862 268
-------- --------- -------- --------
Total assets 67,616 40,423 27,050 7,268
======== ========= ======== ========
(Cont'd)
The Group The Company
As at As at As at As at
30.6.06 31.12.05 30.6.06 31.12.05
Note USD'000 USD'000 USD'000 USD'000
Equity and Liabilities
Capital and reserves
Share capital 13 1,140 1,000 1,140 1,000
Share premium 14 26,657 6,300 26,657 6,300
Translation reserve 14 3,110 (41) - -
Unappropriated profit/ 14 24,695 16,663 (947) (771)
(Accumulated loss) -------- --------- -------- --------
Total equity 55,602 23,922 26,850 6,529
-------- --------- -------- --------
Non-Current Liabilities
Deferred tax liabilities, net 7,521 6,814 - -
-------- --------- -------- --------
7,521 6,814 - -
-------- --------- -------- --------
Current Liabilities
Trade payable 1,275 765 - -
Other payables and accrued 1,848 928 200 110
liabilities
Amount owing to a corporate - 174 - 174
shareholder
Amount owing to subsidiary - - - 455
companies
Taxes payable 15 1,370 738 - -
Loans 16 - 7,082 - -
-------- --------- -------- --------
4,493 9,687 200 739
-------- --------- -------- --------
Total Equity and Liabilities 67,616 40,423 27,050 7,268
======== ========= ======== ========
The accompanying notes form an integral part of the Condensed Financial
Statements.
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Offshore Companies Act, 1990)
AND ITS SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2006
Non-distributable reserve Unappropriated
profit/
Share Share Translation (Accumulated Total/
capital premium reserve loss) Net
The Group USD'000 USD'000 USD'000 USD'000 USD'000
Balance as
at 1 Jan 05 1 - - (5) (4)
Net loss
for - - - (3) (3)
the period --------- --------- --------- ------------ ---------
Balance as
at 30 Jun 05 1 - - (8) (7)
========= ========= ========== ============ =========
Balance as
at 1,000 6,300 (41) 16,663 23,922
1 January
2006
Issue of
shares
(Note 140 20,860 - - 21,000
13)
Utilisation
of - (503) - - (503)
share premium
Exchange
differences
arising on
translation
of
foreign
subsidiary - - 3,151 - 3,151
companies
Net profit
for - - - 8,032 8,032
the period --------- -------- ---------- ---------- ---------
Balance as
of 1,140 26,657 3,110 24,695 55,602
30 June ========= ========= ========== ============ =========
2006
(Cont'd)
Share Capital Share Premium Accumulated Loss Total/
Net
The Company USD'000 USD'000 USD'000 USD'000
-------- ----------
Balance as at
1 Jan 2005 1 - (2) (1)
Net loss for
the period - - (2) (2)
-------- --------- ---------- ----------
Balance as at
30 June 2005 1 - (4) (3)
======== ========= ========== ==========
Balance as at 1 January 2006 1,000 6,300 (771) 6,529
Issue of shares (Note 13) 140 20,860 - 21,000
Utilisation of share premium - (503) - (503)
(Note 14)
Net loss for the period - - (176) (176)
--------- --------- ---------- ----------
Balance as of 30 June 2006 1,140 26,657 (947) 26,850
========= ========= ========== ==========
The accompanying notes form an integral part of the Condensed Financial
Statements.
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Offshore Companies Act, 1990)
AND ITS SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2006
The Group The Company
6 months ended 6 months ended
30.6.06 30.6.05 30.6.06 30.6.05
USD'000 USD'000 USD'000 USD'000
OPERATING ACTIVITIES
Profit/(loss) before
tax 11,505 (3) (176) (2)
Adjustments for:
Depreciation of
property, plant and
equipment 945 - - -
Finance costs 293 - - -
Loss on disposal of
property, plant and
equipment 20 - - -
--------- --------- --------- --------
Operating Profit/
(Loss) Before Movement
in Working Capital 12,763 (3) (176) (2)
(Increase)/ Decrease in:
Inventories (137) - - -
Trade receivables 1,654 - - -
Amount owing by
subsidiary companies - - (25) (23)
Other receivable and
prepaid expenses (932) - (79) -
Increase/ (Decrease) in:
Trade payables 1,387 - - -
Other payables and accrued 149 2 89 2
liabilities
Amount owing to a corporate (174) 23 (174) 23
shareholder --------- --------- --------- --------
Cash Generated From/ (Used In) 14,710 22 (365) -
Operations
(Cont'd)
The Group The Company
6 months ended 6 months ended
30.6.06 30.6.05 30.6.06 30.6.05
USD'000 USD'000 USD'000 USD'000
Income tax paid (3,402) - - -
Interest paid (293) - - -
--------- --------- --------- --------
Net Cash From/ (Used In)
by Operating Activities 11,015 22 (365) -
--------- --------- --------- --------
INVESTING ACTIVITIES
Proceeds from disposal
of
property, plant and 2,836 - - -
equipment
Purchase of property,
plant and equipment (14,207) - - -
--------- --------- --------- --------
Net Cash Used In
Investing (11,371) - - -
Activities --------- --------- --------- --------
FINANCING ACTIVITIES
Proceeds from issuance of 21,000 - 21,000 -
shares
Cost of issuance of shares (503) - (369) -
Interest received - - - -
Deposits pledged with financial (7,700) - - -
institutions
Repayment of loans (7,976) - - -
Cash outflow from acquisition
of subsidiary company - - (19,500) -
(Note 9) -------- --------- --------- --------
Net Cash From by Financing 4,821 - 1,131 -
Activities -------- --------- --------- --------
NET INCREASE IN CASH 4,465 22 766 -
AND CASH EQUIVALENTS
EFFECTS OF FOREIGN EXCHANGE 100 - - -
RATE CHANGES -------- --------- --------- --------
CASH AND CASH 903 - 15 -
EQUIVALENTS AT BEGINNING OF THE
PERIOD -------- --------- --------- --------
======== ========= ========= ========
CASH AND CASH 5,468 22 781 -
EQUIVALENTS AT END
PERIOD
======== ========= ========= ========
The accompanying notes form an integral part of the Condensed Financial
Statements.
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Offshore Companies Act, 1990)
AND ITS SUBSIDIARY COMPANIES
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
1. BASIS OF PREPARATION OF CONDENSED INTERIM FINANCIAL STATEMENTS
Basis of presentation
The condensed interim financial statements of the Group and the Company are
unaudited and have been prepared in accordance with International Financial
Reporting Standards ('IFRS').
The condensed interim financial statements should be read in conjunction with
the audited financial statements for the year ended 31 December 2005. The
condensed interim financial statements were authorised for issue by the Board of
Directors on 23 August 2006.
Use of estimates and assumptions
The preparation of financial statements in conformity with IFRS requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, revenues and expenses and the disclosure of contingent
assets and liabilities. Due to the inherent uncertainty in making those
estimates, actual results reported in future periods could differ from such
estimates.
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The financial statements of the Group and the Company have been prepared under
the historical cost convention.
The accounting policies adopted are consistent with those followed in the
preparation of the Group's annual financial statements for the year ended 31
December 2005.
The principal closing rates used in translation of foreign currency amounts are
as follows:
USD
---
1 Ringgit Malaysia 0.27215
1 Euro Dollar 1.27900
1 Kazakhstan Tenge 0.00842
========
3. REVIEW ON RESULTS FOR THE PERIOD
The Kazakhstan market has grown by 30% and CAC JSC's revenue have increased by
26% over the first half of the year. The main markets remain Almaty and Astana
with high growth expected in the West as well.
4. SEGMENTAL REPORTING
No industry and geographical segmental reporting are presented as the Group's
primary business is in the production and sale of cement which is located in
Karaganda region, Republic of Kazakhstan.
5. REVENUE
The Group The Company
As at As at As at As at
30.6.06 30.06.05 30.6.06 30.06.05
USD'000 USD'000 USD'000 USD'000
Sales-manufactured goods 28,060 - - -
Other sales 545 - - -
--------- -------- --------- --------
Total 28,605 - - -
========= ======== ========= ========
6. INCOME TAX EXPENSE
The Group The Company
As at As at As at As at
30.6.06 30.06.05 30.6.06 30.06.05
USD'000 USD'000 USD'000 USD'000
Sales-manufactured goods 28,060 - - -
Other sales 545 - - -
--------- -------- --------- --------
Total 28,605 - - -
========= ======== ========= ========
Estimated current tax payable:
- the Company - - - -
- subsidiary companies 3,473 - - -
-------- -------- --------- --------
3,473 - - -
======== ======== ========= ========
The income tax expense is accrued based on the estimated annual effective tax
rate of 3% and 30% for the subsidiary companies, incorporated in Labuan FT,
Malaysia and the Republic of Kazakhstan, respectively.
7. EARNINGS/(LOSS) PER SHARE
Basic
The basic earnings/(loss) per share is calculated by dividing the consolidated
net profit/(loss) attributable to shareholders of the Company by the weighted
average number of ordinary shares in issue during the financial period.
The Group
6 months ended 6 months ended
30.6.06 30.6.05
USD'000 USD'000
Net profit/ (loss) attributable to
ordinary shareholders 8,032 (3)
========== ========
6 months ended 6 months ended
30.6.06 30.6.05
'000 '000
Number of shares in issue at
beginning of period 100,000 100
Issuance of shares during the period 14,000 -
---------- --------
Number of shares in issue at end of period 114,000 100
---------- --------
Weighted average number of ordinary
shares in issue 111,615 100
========== ========
6 months ended 6 months ended
30.6.06 30.6.05
USD USD
Basic earnings/(loss) per share (cents) 0.07 (0.03)
========== ========
8. PROPERTY, PLANT AND EQUIPMENT, NET
The Group Freehold Buildings Machinery Other Computer Construction Total
land and and software
land equipment
improvement
assets in progress
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
Cost
(unless
otherwise
indicated)
At 1
January 3,240 24,309 3,684 1,637 3 1,935 34,808
2006
Additions 650 350 1,421 1,453 - 10,333 14,207
Disposals/
Tran (614) (146) (8) (127) - (2,124) (3,019)
sfers
Exchange
differences 409 1,894 465 206 (765) 2,209
---------- -------- ----------- -------- --------- --------- ---------
At 30 June 3,685 26,407 5,562 3,169 3 9,379 48,205
2006 ---------- -------- ----------- -------- --------- --------- ---------
Accumulated
depreciation
At 1 January - 3,850 549 453 2 - 4,854
2006
Additions - 597 107 240 944
Disposals/ - (42) (3) (119) - - (164)
Transfers
Exchange - 315 70 57 - - 442
differences ---------- -------- ----------- -------- --------- --------- ---------
At 30 June - 4,720 723 631 2 - 6,076
2006 ---------- -------- ----------- -------- --------- --------- ---------
Net Book
Value
At 30 June 3,685 21,687 4,839 2,538 1 9,379 42,129
2006 ========== ======== =========== ======== ========= ========= =========
9. INVESTMENT IN SUBSIDIARY COMPANIES
The Company
As at As at
30.6.06 31.12.05
USD'000 USD'000
Unquoted shares, at cost 26,188 7,000
========= =========
i) During the period, the Company subscribed for an
additional 73,748 ordinary shares of RM1 each in Steppe Cement (M) Sdn Bhd at an
issue price of RM1,000 per ordinary share for a total cash consideration of
RM73,748,000 (equivalent to USD19.5 Million) .
ii) During the period, its subsidiary company, Steppe Cement
(M) Sdn Bhd ('SCM') acquired an additional 16,386,554 ordinary shares of EUR 1
each in Steppe Cement Holdings B.V. for a total cash consideration of EUR
16,386,554 (equivalent of USD19.5 Million).
iii) During the period, Steppe Cement Holdings B.V. acquired an
additional 51,043 ordinary shares of KZT 50,000 each in Karcement JSC for a
total cash consideration of KZT 2,552,150,000 (equivalent of USD19.5 Million).
10. INVENTORIES
The Group The Group The Company
As at As at As at As at
30.6.06 31.12.05 30.6.06 31.12.05
USD'000 USD'000 USD'000 USD'000
--------- -------- --------- --------
Work in progress 1,085 1494 - -
Finished goods 750 961 - -
Raw materials 296 413 - -
Spare parts 340 281 - -
Construction materials - 69 - -
Other material 5,020 3,660 - -
--------- -------- --------- --------
7,491 6,878
Less: Provision for obsolete - (349) - -
inventories --------- -------- --------- --------
Net 7,491 6,529 - -
========= ======== ========= ========
11. TRADE RECEIVABLE, NET
The Group The Company
As at As at As at As at
30.6.06 31.12.05 30.6.06 31.12.05
USD'000 USD'000 USD'000 USD'000
--------- -------- --------- --------
Trade receivables from third parties 32 751 - -
Accounts receivables from related - 73 - -
parties --------- -------- --------- --------
32 824 - -
Less: Provision for doubtful - (93) - -
receivables --------- -------- --------- --------
Net 32 731 - -
========= ======== ========= ========
The standard credit period granted to trade receivables ranges from 1 to 30
days. The receivables are denominated in Kazakhstan Tenge.
12. OTHER RECEIVABLES, ADVANCES AND PREPAID EXPENSES
The Group The Company
As at As at As at As at
30.6.06 31.12.05 30.6.06 31.12.05
USD'000 USD'000 USD'000 USD'000
Receivable from employees 86 97 - -
Other receivables 1,266 268 81 -
Prepaid expenses 32 176 - 1
--------- -------- --------- --------
1,384 541 81 1
Advances paid to third parties - 2,805 1,025 - -
current portion --------- -------- --------- --------
4,189 1,566 81 1
Advances paid to third parties - - 131 - -
non-current portion --------- -------- --------- --------
4,189 1,697 81 1
========= ======== ========= ========
13. SHARE CAPITAL
The Group and
the Company
As at As at
30.6.06 31.12.05
USD'000 USD'000
Authorised:
Ordinary shares of USD0.01 each
At beginning of period 5,000 10
Created during the period - 4,990
--------- --------
At end of period 5,000 5,000
========= ========
Issued and fully paid:
Ordinary shares of USD0.01 each
At beginning of period 1,000 1
Issued during the period 140 999
--------- --------
At end of period 1,140 1,000
========= ========
On January 30, 2006, the Company issued 14,000,000 new ordinary shares of USD
0.01 each at a placement price of USD1.50 per share via private placement.
14. RESERVES
The Group and
the Company
As at As at
30.6.06 31.12.05
USD'000 USD'000
Non-distributable reserves:
Share premium
Balance at beginning of the period 6,300 -
Shares issued at a premium 20,860 6,300
--------- ---------
27,160 6,300
Less: Utilisation of share premium (503) -
--------- ---------
Balance at end of the period 26,657 6,300
========= =========
(Cont'd)
The Group and the Company
Translation adjustment account As at As at
30.6.06 31.12.05
USD'000 USD'000
Balance at beginning of the period (41) -
Exchange differences on translation of foreign
subsidiary companies 3,151 (41)
--------- ---------
Balance at end of the period 3,110 (41)
========= =========
Share premium
Share premium arose from the issuance of 14,000,000 ordinary shares of USD0.01
at an issue price of USD1.50 per share via private placement during the
financial period.
Translation adjustment account
Exchange differences arising from the translation of assets and liabilities of
foreign subsidiary companies, are taken to the translation adjustment account.
15. TAXES PAYABLE
The Group The Company
As at As at As at As at
30.6.06 31.12.05 30.6.06 31.12.05
USD'000 USD'000 USD'000 USD'000
Corporate income tax 166 396 - -
Property tax - 163 - -
Personal income tax - 37 - -
Other taxes 1,204 142 - -
--------- -------- --------- --------
Total 1,370 738 - -
========= ======== ========= ========
16. LOANS
The Group The Company
As at As at As at As at
30.6.06 31.12.05 30.6.06 31.12.05
USD'000 USD'000 USD'000 USD'000
JSC Kazkommertsbank - 7,005 - -
Interest payable - 77 - -
---------- -------- --------- ---------
Total - 7,082 - -
========== ======== ========= =========
The loan provided by JSC Kazkommertsbank was fully paid in March 2006.
17. RELATED PARTIES.
Related parties include shareholder, directors, affiliates and entities under
common ownership, over which the Group has the ability to exercise a significant
influence.
Compensation of key management personnel
Included in the staff costs are remuneration of directors and other members of
key management during the financial period as follows:
The Group The Company
As at As at As at As at
30.6.06 31.12.05 30.6.06 31.12.05
USD'000 USD'000 USD'000 USD'000
Remunerations 165 96 116 95
Short-term benefit - 92 - -
Post-employment benefit - 8 - -
--------- -------- --------- --------
Total 165 196 116 95
========= ======== ========= ========
The remuneration of directors and key executives is determined by the
remuneration committees of the Company and subsidiary companies having regard to
the performance of individuals and market trends.
18. SIGNIFICANT EVENTS
The liquidation of Stroy Invest, a subsidiary company of CAC JSC is in the final
stages. The liquidation was approved by the Board of Directors on 27 February
2006.
On 1 August 2006, the Kazakhstan Stock Exchange ('KASE') Council approved
Central Asia Cement JSC's issuance and listing of 5 year 9% KZT 2.7 billion
bonds on the KASE due on 7 August 2011. The interest is payable semi-annually
and the repayment of principal is one bullet payment.
APPENDIX
CENTRAL ASIA CEMENT JSC AND ITS SUBSIDIARY
CONSOLIDATED INCOME STATEMENT FOR THE PERIOD
ENDED 30 JUNE 2006 (UNAUDITED)
6 months ended
30.6.06 30.6.05
USD'000 USD'000
Revenue 28,605 19,690
Cost of sales (12,689) (8,200)
---------- ---------
Gross profit 15,916 11,490
Selling expenses (1,694) (1,029)
General and administrative (3,162) (1,938)
expenses ---------- ---------
Operating profit 11,060 8,523
Investment income - 0
Finance costs (293) (692)
Other income, net 786 (183)
---------- ---------
Profit before tax 11,553 7,648
Income tax expense (3,466) (2,294)
---------- ---------
Profit for the period 8,087 5,354
========== =========
APPENDIX
CENTRAL ASIA CEMENT JSC AND ITS SUBSIDIARY
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2006 (UNAUDITED)
As at As at
30.6.06 30.6.05
USD'000 USD'000
Assets
Non-current assets
Property, plant and equipment 33,839 15,624
---------
33,839 15,624
--------- ---------
Current Assets
Inventories, net 7,491 5,576
Trade receivable, net 487 189
Other receivables, advances and prepaid expenses
3,121 1,114
Cash and bank balances 4,745 6,222
--------- ---------
15,844 13,101
--------- ---------
Total assets 49,683 28,725
========= =========
(Cont'd)
As at As at
30.6.06 30.6.05
USD'000 USD'000
Equity and Liabilities
Capital and reserves
Share capital 587 587
Revaluation Reserve 15,081 11,737
Foreign Exchange Reserve 2,900 -
Unappropriated profit 17,142 3,644
--------- ---------
Total equity 35,710 15,968
--------- ---------
Non-Current Liabilities
Deferred tax liabilities, net 7,521 -
Loans - 6,000
--------- ---------
7,521 6,000
--------- ---------
Current Liabilities
Trade payable 1,275 397
Other payables and accrued liabilities 1,543 1,379
Taxes payable 1,361 981
Amount due to related company 2,273 -
Loans - 4,000
--------- ---------
6,452 6,757
--------- ---------
Total Equity and Liabilities 49,683 28,725
========= =========
This information is provided by RNS
The company news service from the London Stock Exchange
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