Statement_Abridged Financial Statement_31Dec2020

RNS Number : 7840C

ZCCM Invs.Hldgs PLC

24 February 2022

 

SENS ANNOUNCEMENT

(the "Notice" or "Announcement")

ISSUER

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

SPONSOR

Stockbrokers Zambia Limited

[Founder Member of the Lusaka Securities Exchange]

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

Contact Number:  [phone]

Website:  www.sbz.com.zm

APPROVAL

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")

RISK WARNING

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

Investors are advised to seek the advice of their investment advisor, stockbroker, or any professional duly licensed by the Securities and Exchange Commission of Zambia to provide securities advice.

ISSUED: 23 February 2022

ZCCM INVESTMENTS HOLDINGS PLC

(Incorporated in the Republic of Zambia)

AUDITED ABRIDGED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

INTRODUCTION

In compliance with the requirements of the Listing Rules of Lusaka Securities Exchange, ZCCM Investments Holdings Plc ("ZCCM-IH or the Company") announces the audited abridged financial statements results of the Company and its subsidiaries (Collectively referred to as the ''the Group'') for the year ended 31 December 2020.

CHANGE OF FINANCIAL YEAR END

ZCCM-IH with effect from 1st April 2019, changed its financial year end from 31st March to 31st December to comply with the provisions of section 71 of the Public Finance Management Act No. 1 of 2018.  The prior period runs for nine (9) months from 1st April 2019 to 31st December 2019, whilst the current period covers twelve (12) months from 1st January 2020 to 31st December 2020 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 cashflow and other related notes are not comparable.

STRUCTURE OF THE ZCCM-IH GROUP

The ZCCM-IH Group consist of the following nine (9) companies: Name Shareholding Mopani Copper Mine Plc 100.00% Ndola Lime Company Limited (in liquidation) 100.00% Kariba Minerals Limited 100.00% Misenge Environmental and Technical Services Limited 100.00% Mushe Milling Limited 100.00% Kabundi Resources Limited 100.00% Limestone Resources Limited 100.00% Investrust Bank Plc 74.10% Zambia Gold Company Limited 51.00% The Company also has other interests in the undernoted companies: Name Shareholding Rembrandt Properties Limited 49.00% Central African Cement Limited 49.00% Consolidated Gold Company of Zambia 45.00% Maamba Collieries Limited 35.00% Konkola Copper Mines Plc (Provisional liquidation) 20.60% Kansanshi Mining Plc 20.00% Copperbelt Energy Corporation Plc 24.10% CNMC Luanshya Copper Mines Plc 20.00% Lubambe Copper Mine Ltd 20.00% NFCA Africa Mining Plc 15.00% Chibuluma Mines Plc 15.00% Chambishi Metals Plc 15.00% Copper Tree Mineral Limited 15.58% Oranto Oil Block 10.00% Nkana Alloy Smelting Company Limited 10.00% ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
		31 Dec 2020		31 Dec 2019
				(9 months)
		ZMW'000		ZMW'000
Revenue		113,088		62,432
Gross profit		55,740		9,417
Operating loss		(579,590)		(155,385)
Net finance income		944,878		139,074
Share of profit of equity accounted investees		1,487,537		420,348
Profit before tax		1,852,825		404,037
Income tax expense		(221,737)		(22,871)
Profit/(loss) from discontinued operations		500,399		(73,979)
Profit for the year		2,131,487		307,187
Earnings per share (ZMW)		13.26		1.91
Basic and diluted earnings per share (ZMW)		13.26		1.91

ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 31 Dec 2020 31 Dec 2019 (9 months) ZMW'000 ZMW'000 Revenue from contracts with customers 3,695 - Gross profit 695 - Investment income  226,169   171,163 Operating (loss)/profit (174,194)   17,096 Net finance income   955,040   158,505 Profit before tax  780,846 175,601 Income tax expense   (212,415)   (22,166) Profit for the year 568,431  153,435 Earnings per share (ZMW) 3.54 0.95 Basic and diluted earnings per share (ZMW)   3.54   0.95

 

ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION
		31 Dec 2020		31 Dec 2019
Assets		ZMW'000		ZMW'000
Property, plant and equipment		187,727		299,125
Goodwill		-		119,818
Intangible assets		749		648
Investment property		183,917		167,970
Investments in associates		19,351,000		11,855,067
Financial assets at fair value through profit or loss		292,000		-
Inventories		55,728		52,057
Trade and other receivables		1,295,594		729,685
Deferred tax assets		661,277		564,304
Assets held for sale		1,307,400		1,127,333
Term deposits		194,369		274,960
Cash and cash equivalents		181,209		56,816
Total assets		23,710,970		15,247,783
Equity and liabilities
Capital and reserves		20,899,212		12,629,831
Borrowings		161,370		-
Deferred tax liabilities		519,877		238,185
Trade and other payables		174,388		738,912
Liabilities associated with assets classified as held for sale		1,423,669		1,191,270
Bank overdraft		10,034		2,641
Provisions		121,177		83,118
Retirement benefits		13,194		34,669
Provisions for environmental rehabilitation		173,522		119,253
Current tax liabilities		214,527		209,904
Total equity and liabilities		23,710,970		15,247,783
ABRIDGED COMPANY STATEMENT OF FINANCIAL POSITION
		31 Dec 2020		31 Dec 2019
Assets		ZMW'000		ZMW'000
Property, plant and equipment		79,052		88,439
Intangible assets		749		648
Investment property		183,917		167,970
Investments in subsidiaries		276,678		147,317
Investments in associates		20,666,806		10,746,818
Financial assets at fair value through profit or loss		292,000		-
Deferred tax assets		748,435		650,939
Trade and other receivables		1,256,579		719,855
Assets held for sale		392,357		387,110
Term deposits		194,369		273,717
Inventory		13,743		-
Cash and cash equivalents		120,639		54,359
Total assets		24,225,324		13,237,172
Equity and liabilities
Capital and reserves		16,459,336		9,484,935
Borrowings		161,370		-
Deferred tax liabilities		7,099,183		3,339,411
Trade and other payables		102,551		52,271
Provisions		119,716		83,118
Retirement benefits		10,792		7,971
Provisions for environmental rehabilitation		66,595		55,258
Current tax liabilities		205,781		214,208
Total equity and liabilities		24,225,324		13,237,172

 

ABRIDGED GROUP STATEMENT OF CASH FLOWS
		31 Dec 2020		31 Dec 2019
		ZMW'000		(9 months) ZMW'000
Net cash flow (used)/generated from operating activities		(183,930)		190,389
Net cash generated from investing activities		284,417		37,696
Net cash inflow/(outflow) from financing activities		158,655		(136,702)
Increase in cash and cash equivalents		259,142		91,383
Cash and cash equivalents at the beginning of the year		165,863		74,480
Cash and cash equivalents at the end of the period		425,005		165,863
Included in the statement of financial position:
-  Cash and bank		181,209		56,816
-  Bank overdraft		(10,034)		(2,641)
-  assets held for sale		253,830		111,688
		425,005		165,863
ABRIDGED COMPANY STATEMENT OF CASH FLOWS
		31 Dec 2020		31 Dec 2019 (9 months)
		ZMW'000		ZMW'000
Net cash (outflow)/inflow from operating activities		(124,291)		93,225
Net cash generated from investing activities		31,916		38,129
Net cash inflow/(outflow) from financing activities		158,655		(103,271)
Increase in cash and cash equivalents		66,280		28,083
Cash and cash equivalents at the beginning of the period/year		54,359		26,276
Cash and cash equivalents at the end of the period/year		120,639		54,359

ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY

		31 Dec 2020		31 Dec 2019
		ZMW'000		ZMW'000
Balance at 1 Jan/April		12,629,831		11,025,116
Profit for the period/year		2,131,487		307,187
Other comprehensive income		6,190,959		1,297,528
Dividend paid		(53,065)		-
Balance at 31 Dec		20,899,212		12,629,831

  ABRIDGED PROVISIONAL COMPANY STATEMENT OF CHANGES IN EQUITY

			31 Dec 2020			31 Dec 2019
			ZMW'000			ZMW'000
Balance at 1 Jan/April			9,484,935				8,661,948
Profit/(loss) for the year			568,431				153,435
Other comprehensive income			6,459,035				669,552
Dividend paid			(53,065)				-
Balance at 31 Dec			16,459,336				9,484,935

1.  QUALIFIED AUDIT OPINION

The financial statements for the year ended 31 December 2020 are qualified based on the following:

ZCCM-IH holds 71.47% shareholding in Investrust Bank Plc (the bank) which shareholding the Company decided to dispose of. In the Consolidated statement of financial position, the assets of the bank with a total balance of ZMW 1.258 billion have been presented as assets held for sale and liabilities with a total balance of ZMW 1.424 billion have been presented as liabilities associated with assets classified as held for sale. The Group's share of the bank's loss of ZMW 58 million has been included in the Group's profit and loss account as a loss from discontinued operations. The figures for Investrust Bank Plc included in these financial statements are unaudited and the External Auditors were not able to obtain sufficient audit evidence as to whether any adjustments to the said figures are necessary.

The financial statements/information of the Bank considered in the ZCCM-IH's consolidated financial statements are pending an audit by their auditors whose reports have not yet been furnished to the ZCCM-IH Group auditors. Therefore, the ZCCM-IH Group Auditors opinion in so far as it relates to the amounts and disclosures included in respect of the Bank, is based solely on the unaudited information provided by the Management of the Bank.

2.  FINANCIAL PERFORMANCE

The Group reported a profit for the year of ZMW 2.132 billion (2019: ZMW 307 million), mainly due to the following:

· Increase in the Group's share of profit in associated companies to ZMW 1.487 billion from ZMW 420 million recorded in December 2019. This is mainly due to the increase in the profitability of some investee companies in the mining sector such as Maamba Collieries Limited, CNMC Luanshya Copper Mines Plc, Non-Ferrous Corporation Africa Mining Plc and Kansanshi Mining Plc.

· Exchange gains recorded from revaluation of the Group's foreign denominated assets.

The Group's total assets increased from ZMW 15.25 billion to ZMW 23.71 billion due to increased values of investments in associates and exchange gains arising from translation of US Dollar denominated investments.

3.  OUTLOOK

The Group will continue with the implementation of its Strategic Plan to enhance value creation for its shareholders.  In addition, the Group will benefit from high levels of copper prices due to a surge in demand. ZCCM-IH in line with its Strategic plan will also focus on commodity diversification by improving production of other minerals such as Gold, Manganese and Amethyst among others. Exploring of value addition initiatives will also remain key on the agenda of ZCCM-IH going forward.

By Order of the Board

Chabby Chabala

Company Secretary

Issued in Lusaka, Zambia on Wednesday, 23 February 2022

	T  |  [phone] E  |  [e-mail] 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 , 23 February 2022

APPENDICES

US DOLLAR ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		31 Dec 2020		31 Dec 2019
				(9 months)
		US$'000		US$'000
Revenue		6,070		4,687
Gross profit		2,992		707
Operating profit		(31,109)		(11,664)
Net finance income		50,717		10,440
Share of profit of equity accounted investees		79,845		31,555
Profit before tax		99,453		30,331
Income tax expense		(11,902)		(1,717)
Profit/(loss) from discontinued operations		26,859		(5,554)
Profit for the year		115,410		23,060
Earnings per share (US$)		0.72		0.14
Basic and diluted earnings per share (US$)		0.72		0.14

US DOLLAR ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
		31 Dec 2020		31 Dec 2019
				(9 months)
		US$'000		US$'000
Revenue from contracts with customers		198		-
Gross profit		37		-
Investment income		12,140		12,849
Operating (loss)/profit		(9,350)		1,283
Net finance income		51,263		11,899
Profit before tax		41,913		13,182
Income tax expense		(11,402)		(1,664)
Profit for the year		30,511		11,518
Earnings per share (US$)		0.19		0.07
Basic and diluted earnings per share (US$)		0.19		0.07

US DOLLAR ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION
		31 Dec 2020		31 Dec 2019
Assets		US$'000		US$'000
Property, plant and equipment		15,709		23,379
Goodwill		-		8,588
Intangible assets		140		135
Investment property		15,397		14,643
Investments in associates		914,768		956,164
Financial assets at fair value through profit or loss		13,804		-
Inventories		4,989		4,815
Trade and other receivables		61,246		52,298
Deferred tax assets		31,260		40,445
Assets held for sale		61,804		80,798
Term deposits		9,188		19,707
Cash and cash equivalents		8,566		4,072
Total assets		1,136,871		1,205,044
Equity and liabilities
Capital and reserves		1,003,953		1,017,413
Borrowings		7,628		-
Deferred tax liabilities		24,576		17,071
Trade and other payables		8,244		52,959
Liabilities associated with assets classified as held for sale		67,300		85,380
Bank overdraft		474		189
Provisions		5,728		5,957
Retirement benefits		624		2,484
Provisions for environmental rehabilitation		8,203		8,547
Current tax liabilities		10,141		15,044
Total equity and liabilities		1,136,871		1,205,044

US DOLLAR ABRIDGED PROVISIONAL COMPANY STATEMENT OF FINANCIAL POSITION
		31 Dec 2020		31 Dec 2019
Assets		US$'000		US$'000
Property, plant and equipment		6,733		7,237
Intangible assets		58		53
Investment property		14,563		13,707
Investments in subsidiaries		13,079		11,546
Investments in associates		976,969		874,341
Financial assets at fair value through profit or loss		13,804		-
Deferred tax assets		35,380		46,654
Trade and other receivables		59,402		51,593
Assets held for sale		18,548		29,060
Term deposits		9,188		19,618
Inventory		738		-
Cash and cash equivalents		5,703		3,896
Total assets		1,154,165		1,057,705
Equity and liabilities
Capital and reserves		787,049		788,777
Borrowings		7,628		-
Deferred tax liabilities		335,595		239,341
Trade and other payables		4,848		3,746
Provisions		5,659		5,957
Retirement benefits		510		571
Provisions for environmental rehabilitation		3,148		3,960
Current tax liabilities		9,728		15,353
Total equity and liabilities		1,154,165		1,057,705

 

END

 

 

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