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Ambrian PLC (AMBR)

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Friday 09 June, 2017

Ambrian PLC

Preliminary Results

RNS Number : 6054H
Ambrian PLC
09 June 2017
 

LONDON, 9 June 2017

AMBRIAN PLC

 

Preliminary Results for the year ended 31 December 2016

 

Ambrian plc ("Ambrian" or the "Company" and, together with its subsidiaries, the "Group") today announces its audited consolidated results for the twelve months ended 31 December 2016.

 

Highlights

·     First full year of production at the cement plant in Mozambique

·     Run-down of the metals trading business is nearing completion

·     Turnover of US$ 1.05 billion (2015: turnover of US$1.90 billion)

·     Gross profit of US$ 1.22 million (2015: gross loss of US$ 4.01 million)

·     Loss before interest, tax, depreciation and amortisation ("LBITDA") reduced to US$ 6.04 million (2015: LBITDA of US$ 8.75)

·     Loss before tax, but before impairment charge, US$ 9.85 million (2015: loss before tax of US$ 9.36 million)

·     Loss before tax, including an impairment charge on the cement operations of $21.29 million (2015: $nil), of US$ 31.14 million (2015: loss before tax of US$ 9.36 million)

·     Tangible net asset value at 31 December 2016 of US$ 27.04 million (2015: US$ 50.97 million) equivalent to a tangible net asset per share of US¢ 10.97 (2015: US¢ 20.67)

·     Total equity at 31 December 2016: US$ 29.22 million (2015: US$ 53.43 million)

 

 

Commenting on the results, Martin Abbott, non-executive Chairman, stated:

 

"The metals business is being run down following the Company's announcement in October 2016 to withdraw from the business.  We appreciate the support of all stakeholders over this period in order to execute the contracts in an orderly way.  We expect the business to be closed by mid-year 2017 when the working capital in the business will be converted to cash. 

We are pleased with the technical performance of the cement plant in 2016, despite the full benefits of this performance having yet to materialise.  The challenging conditions in Mozambique, particularly as regards to adverse exchange rate movements, punitive interest rates and sharp public spending cuts in infrastructure, have deeply affected the construction sector. However, we continue to believe in the long-term growth potential of Mozambique.  With an improving commodity outlook, Mozambique's largest export sectors are now picking up.  The challenge remains to ensure that future wealth from these sectors is deployed efficiently in other economic sectors and infrastructure projects without corrupt practices undermining the country's efforts.  We expect improving the country's transport network and access to power will become significant drivers of the construction sector and hence spur demand for cement and concrete based products. "

 

Enquiries

 

Ambrian plc


Roger Clegg

+ 44 (0)20 7634 4700



Cenkos Securities plc


Neil McDonald

+ 44 (0)20 7397 8900

Nick Tulloch


 

Notes to Editors

 

Ambrian is active is sourcing and marketing a range of industrials metals, minerals and value added products to end users worldwide.  We pursue selective strategic acquisitions and ventures which can demonstrate a compelling industrial, commercial and financial justification and ultimately strengthen Ambrian's supply chain and value added activities.  Ambrian's services add the right value at every stage of the supply chain; we plan procurement and logistics to streamline and simplify transportation and deliver on time commodities in the most cost efficient manner from remote locations to wherever they are needed by our customers.  Ambrian also capitalizes on opportunities to improve margins and grow shareholder value through diversifying into sourcing and processing.  This has enabled it to expand its business into the manufacturing and distribution of branded cement products to the residential and non-residential sectors in Central Mozambique.

 

Ambrian is quoted on the Alternative Investment Market of the London Stock Exchange under the ticker symbol AMBR. Further information on the Group is available on the Company's website www.ambrian.com or the website of Cimentos da Beira Lda www.cdb.co.mz.

 

  

Chairman's and Chief Executive's statement

For the year ended 31 December 2016 the Group gross profit was US$ 1.22 million on a turnover of US$ 1.05 billion (2015: gross loss of US$ 4.01 million on a turnover of US$ 1.90 billion).  

For the period under review EBITDA was a loss of US$ 6.04 million (2015: US$ 8.75 million loss), the loss being primarily a function of administrative and employment costs. 

Group loss before tax and impairment charge for 2016 amounted to US$ 9.85 million (2015: loss before tax of US$ 9.36 million).  Within this, metal trading activities reported a loss before tax, including provisions for closure, of US$ 3.97 million for the period (2015: loss before tax of US$ 8.92 million).  The cement business reported a loss before tax and impairment charge of US$ 5.73 million for the period (2015: profit before tax of US$ 0.67 million), largely attributable to interest expenses adversely affected by punitive rates applied on local borrowings in Mozambique. An impairment charge of US$ 21.29 million (2015: nil) on the cement plant was incurred after an assessment by management, considering such factors as future expected cashflows, exchange rates, discount rates and the expected terminal value of the plant.

Overview

2016 saw a recovery for commodities with the Bloomberg Commodities Index (a broadly diversified commodity price index) gaining over 10%, breaking a five-year streak of annual losses.  The recovery in industrial metals prices was supported by strong Chinese demand and expectations of increased infrastructure spend after the US elections.  Realisation by market participants that the fear of an oversupply in many markets was overdone was further supported by declining inventory levels, increasing confidence that strong demand could be sustainable.  Underperforming base metals for most of 2016, the copper market experienced a shift in sentiment towards the end of the year. 

Despite the recovery in commodity markets, the Board of Directors concluded that the Company's capital base was not sufficient, and its organization not adapted, to grow the metal trading activities into a robust, diversified and scalable business model.  Accordingly, the Board of Directors decided that the Company's metal trading activities would be wound down in an orderly fashion and closed.  Unlike capital engaged in the Company's industrial assets, capital employed in the metal trading activities can be released within a relatively short time span.  As a result, over the last quarter of 2016, most staff engaged in the Company's trading and logistics operations were retrenched with a skeleton staff retained temporarily to run down the existing contracts.  All trading activities will have been terminated and contracts closed by mid-2017.  Following the decision to close the metal trading activities, the Company moved to smaller head office premises in London and is closing down the offices in China, Taiwan and Singapore. 

Weak commodity prices and the anemic general trading environment contributed to Mozambique's sharp slowdown in economic activity over the period under review.  This was further compounded by the revelation of large undisclosed borrowings contracted by state controlled entities, the sharp reduction in foreign direct investments and the international community's decision to stop supporting the country's budget deficits.  Mozambique's real GDP growth dropped to 3.3% from 6.6% in 2015 and the local currency depreciated by up to some 40 percent against the US dollar during 2016, fuelling 25 percent inflation by the end of October 2016.  The sharp deterioration in economic conditions has had a significant impact on households and a nascent small and medium sized business sector.  Reduced investments in real estate, construction and financial services combined with the public sector's consolidation and monetary tightening are also contributing to the slowdown in growth.  It is against this backdrop that our cement grinding operations in Central Mozambique, Cimentos da Beira, completed its first full year of operation. 

The market for cement in Central Mozambique grew just under 5 percent in 2016 when compared to 2015 which is below historic growth trends.  Cement sales achieved by our subsidiary in 2016 were lower than forecast as a result of increasing competitive pressure combined with reduced disposable income and difficult credit conditions affecting the local residential and nonresidential sectors.  Significantly weaker public spending on infrastructure and delayed project execution also affected construction activities and cement apparent consumption.  Cimentos da Beira captured approximately 18% of the Central Mozambique local cement market estimated at around 700 thousand tonnes a year.  Although below our target market share, we refrained being drawn into aggressive marketing tactics for the sake of increasing sales volumes.  Simultaneously to the local currency collapsing against the US dollar, realised cement prices in US dollar equivalent were under intense pressure throughout the year improving only marginally by year-end having bottomed out from record lows during September 2016.  More frequent and successive industry wide price increases in local currency have yet to compensate fully for the sharp drop in the local currency against the US dollar and allow the industry to generate normalised cash margins which are customary in this business. 

The operating performance of the plant has not raised any particular issues with efficiencies and usage factors improving steadily since the plant's commissioning at the end of 2015.  Our staff in Beira are also working hard to obtain ISO 9001 accreditation for the plant which we expect to achieve before the end of 2017.  This accreditation and certification of its products will allow Cimentos da Beira to supply cement to large public and private projects for which accreditation is a prerequisite.  Despite constant efforts to reduce our cost base or milling at night so as to benefit from the low tariff structure, unit costs will decrease significantly only with the expected higher asset utilisation. 

Board changes

Robert Adair who had served as Chairman and a member of the board of directors since February 2015, resigned as a non-executive Director of the Company.  Robert decided that after steering the company through the merger with Consolidated General Minerals plc and the start-up of the cement plant in Mozambique it was an opportune time to step down.  We would like to thank Robert for his valuable contribution to the Company over the last number of years and in particular during the time running up to the merger, and wish him well in the future.  Martin Abbott was appointed as non-executive Chairman.  In December 2016, Oliver Benz was appointed to the Board as a non-executive Director. 

Outlook

It is anticipated that the metal trading business will have run off all its positions and all staff will have been retrenched by mid-2017.  At that point, all metal trading working capital will have been turned to cash. 

The Sub-Saharan African economic outlook remains clouded despite some encouraging news such as Mozambique's gas production prospects that are shaping expectations for a growth recovery.  With an improving commodity outlook, Mozambique's largest exports such as coal are beginning to show some colour.  The challenge remains for the country to ensure that future wealth from these sectors is deployed efficiently to spur growth in the non "mega project" sector without corrupt practices undermining such efforts.  Over the first quarter of 2017 cement demand in Central Mozambique contracted by approximately 9% compared to the first quarter of 2016.  Adverse weather conditions are only part of the explanation as the sector continues to be affected by a high interest rate environment, reduced liquidity and little public spending on critical infrastructure.  We remain cautiously optimistic as we enter the second half of 2017.  Demand for cement in emerging economies customarily mirrors economic growth patterns and can be greatly exceeded during an infrastructure expansion.  We expect that starting in 2018, projects to improve the country's derelict transport network and access to power will become significant drivers of the construction sector and hence spur demand for cement and concrete based products. 

Cimentos da Beira continues to consolidate its business model and focus on improving distribution channels as well as operational efficiencies, targeting a 30 percent market share in Central Mozambique.  Over the past year we have achieved a commercial transformation which has resulted in our products and services being differentiated and well received by end users despite the competitive landscape.  Combined with the strengthening of the local currency by some 20% since the beginning of 2017, successive price increases implemented by the industry are slowly bringing cement price to levels customarily seen in neighboring countries.  We therefore expect that barring unforeseen circumstances, cash margins for the industry should improve over the course of 2017.  This will be further entrenched as we attempt to source locally approximately 30% of our raw material requirements instead of relying on imports. 

We constantly review our strategy and the necessity to protect our capital base.  This has proven to be difficult in the current environment.  Also, we are of the opinion that a one-asset publicly quoted company is not a long term sustainable value proposition for our stakeholders.  Accordingly, we continue to assess a number of strategies, investments and corporate transactions which we believe could assist the Group in protecting its capital base and improve its corporate profile.

 

 

Martin Abbott                   Jean-Pierre Conrad

Chairman                            Chief Executive


Ambrian plc

Consolidated statement of comprehensive income
for the year ended 31 December 2016

 



Year to 31 December 2016


Year to 31 December 2015



US $ 000's


US $ 000's

Turnover


1,047,187


1,897,528

Cost of Sales


(1,045,970)


(1,902,214)

Net revenue


1,217


(4,686)

Investment portfolio gains


-


676

Total income


1,217


(4,010)

Administrative expenses


(7,256)


(4,742)

Depreciation and impairment expense


(23,490)


(435)

Total administrative expenses


(30,746)


(5,177)

Operating loss


(29,529)


(9,187)

Finance income


1,479


428

Finance costs


(3,094)


(601)

Loss before tax


(31,144)


(9,360)

Taxation


6,740


2,339

Loss after tax


(24,404)


(7,021)






Other comprehensive income





Items that may be subsequently reclassified to profit or (loss)





Exchange profit arising from translation of foreign operations


-


59

Total other comprehensive profit


-


59






Total comprehensive loss


(24,404)


(6,962)











(Loss) / profit attributable to:





Owners of the parent


(20,709)


(7,324)

Non-controlling interest


(3,695)


303



(24,404)


(7,021)






Total comprehensive (loss) / profit attributable to:





Owners of the parent


(20,709)


(7,265)

Non-controlling interest


(3,695)


303



(24,404)


(6,962)






Earnings per share in USD cents:





Basic earnings per share


(8.57)


                 (3.87)

Diluted earnings per share


(8.57)


                 (3.87)

 

 

 


Ambrian plc

Consolidated statement of changes in equity
for the year ended 31 December 2016


Share capital

Share

premium account

Capital Redemption reserve

Merger relief

reserve

Shares to be issued

Treasury shares

Other

reserve

Retained earnings/ (losses)

Share based payments reserve

Employee benefit trust

Exchange reserve

Total equity attributable to the owner of the parent

 Non-controlling interest

Total

equity


US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

Balance at 31 December 2014

17,665

18,044

-

 -

 -

(1,986)

 -

502

8,052

(11,446)

(1,626)

29,205

(58)

29,147

Arising from the business combination of Consolidated General Minerals (Schweiz) AG

2,455

-

-

26,066

1,477

-

(5,066)

-

-

-

-

24,932

6,944

31,876

Shares issue costs

-

-

-

(1,296)

-

-

-

-

-

-

-

(1,296)

-

(1,296)

Exercise of options

-

-

-

-

-

-

-

-

-

576

-

576

-

576

Redemption of Deferred 9p shares

(15,898)

-

15,898

-

-

-

-

-

-

-

-

-

-

-

Share based payment

-

-

-

-

-

-

86

-

-

-

-

86

-

86

Comprehensive income















Profit / (Loss) for the year

-

-

-

-

-

-

-

(7,324)

-

-

-

(7,324)

303

(7,021)

Foreign currency adjustments

-

-

-

-

-

-

-

-

-

-

59

59

-

59

Total comprehensive income/(loss) for the year

-

-

-

-

-

-

-

(7,324)

-

-

59

(7,265)

303

(6,962)

Balance at 31 December 2015

4,222

18,044

15,898

24,770

1,477

(1,986)

(4,980)

(6,822)

8,052

(10,870)

(1,567)

46,238

7,189

53,427

 



 

Ambrian plc

Consolidated statement of changes in equity
for the year ended 31 December 2016 (continued)

 


Share capital

Share

premium account

Capital Redemption reserve

Merger relief

reserve

Shares to be issued

Treasury shares

Other

reserve

Retained earnings/ (losses)

Share based payments reserve

Employee benefit trust

Exchange reserve

Total equity attributable to the owner of the parent

 Non-controlling interest

Total

equity


US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

Balance at 31 December 2015

4,222

18,044

15,898

24,770

1,477

(1,986)

(4,980)

(6,822)

8,052

(10,870)

(1,567)

46,238

7,189

53,427

Issuance of shares

144

1,534

-

-

(1,477)

-

(201)

-

-

-

-

-

-

-

Share cancellation

(303)

-

-

-

-

-

303

-

-

-

-

-

-

-

Shares awarded to

employees

-

-

-

-

-

-

190

-

-

-

-

190

-

190

Exercise of options

-

-

-

-

-

-

-

-

-

7

-

7

-

7

Comprehensive loss















Loss for the year

-

-

-

-

-

-

-

(20,709)

-

-

-

(20,709)

(3,695)

(24,404)

Total comprehensive loss for the year

-

-

-

-

-

-

-

(20,709)

-

-

-

(20,709)

(3,695)

(24,404)

Balance at 31 December 2016

19,578

15,898

25,726

29,220

 


Ambrian plc

Consolidated statement of financial position
at 31 December 2016



Year to 31 December 2016


Year to 31 December 2015

ASSETS


US $ 000's


US $ 000's

Non-current assets





Property, plant and equipment


54,217


76,036

Deferred tax asset


2,184


2,459



56,401


78,495






Current assets





Financial assets at fair value through profit or loss


150


7,495

Inventory


156,215


262,541

Trade and other receivables


64,107


60,083

Current tax receivable


-


250

Cash and cash equivalents


6,693


9,823

Total assets


283,566


418,687






LIABILITIES





Non-current liabilities





Long-term borrowings


(915)


                    (21,376)

Deferred tax liability


(558)


                     (7,554)



(1,473)


                     (28,930)






Current liabilities





Financial liabilities at fair value through profit or loss


(6,074)


(2,675)

Short-term borrowings


(171,448)


(225,219)

Short-term liabilities under sale and repurchase agreements


(2,667)


(43,745)

Trade and other payables


(72,342)


(64,691)

Provisions


(323)


-

Current tax payable


                      (19)  


                      -

Total liabilities


(254,346)


(365,260)






Total net assets


29,220


53,427






 

 



 

Ambrian plc

Consolidated statement of financial position
at 31 December 2016 (continued)

 

 



Year to 31 December 2016


Year to 31 December 2015

Capital and reserves





Share capital


4,063


4,222

Share premium


19,578


18,044

Capital Redemption reserve


15,898


15,898

Merger relief reserve


24,770


24,770

Shares to be issued


-


1,477

Treasury shares


(1,986)


(1,986)

Other reserve


(4,688)


(4,980)

Retained (losses)/earnings


(27,531)


(6,822)

Employee benefit trust


(10,863)


(10,870)

Share-based payments reserve


8,052


8,052

Exchange reserve


(1,567)


(1,567)

Total equity attributable to the owner of the parent


25,726


46,238






Non-controlling interest


3,494


7,189

Total equity


29,220


53,427

 



 

Ambrian plc

Consolidated statement of cashflows
for the year ended 31 December 2016


Year to 31

December 2016


Year to 31 December 2015


US $ 000's


US $ 000's

Loss for the year

(24,404)


(7,021)

Adjustments for:




Depreciation of property, plant and equipment

2,204


435

Finance costs

3,094


601

Impairment of property, plant and equipment

21,286


-

Share-based payment expense

190


72

Foreign exchange losses/(gains)

72


(825)

Taxation expense

(6,740)


(2,339)

Realised gain on financial assets designated at fair value

-


(676)

Decrease in inventories

106,326


67,004

(Increase)/decrease in trade and other receivables

(4,024)


22,377

Unrealised gains/(losses) on financial liabilities at fair value

3,399


(428)

Unrealised gains on financial assets at fair value

7,345


11,115

Increase in trade and other payables

7,974


12,545

Cash generated in operations

116,722


102,860

Taxation received/(paid)

 288


 (362)

Net cash flow generated in operating activities

117,010


102,498





Investing activities




Net cash from acquisition of subsidiary undertakings

-


424

Purchase of property, plant and equipment

(1,671)


(8,955)

Net cash used in investing activities

(1,671)


(8,531)





Financing activities




Share issue costs

-


(1,296)

Interest paid

(2,851)


(601)

Proceeds from issue of convertible loan notes

-


4,121

Proceeds received from the exercise of options in Employee Benefit Trust

-


576

Decrease in long-term borrowings

-


(4,793)

Decrease in short-term liabilities under sale and repurchase agreements

(41,078)


(1,956)

Decrease in short-term borrowings

(74,475)


(89,846)

Net cash (used)/generated in financing activities

(118,404)


(93,795)





Net (decrease)/increase in cash and cash equivalents

(3,065)


172

Cash and cash equivalents at the beginning of the year

9,823


9,661

Effect of foreign exchange rate differences on cash and cash equivalents

(65)


(10)

Cash and cash equivalents at the end of the year

6,693


9,823

 

 


 

1.    Basis of preparation

 

The financial information set out in this announcement does not constitute the Group's statutory accounts for the year ended 31 December 2016 or 2015 but is derived from those accounts. Statutory accounts for the 2015 have been delivered to the Registrar of the Companies, and those for 2016 will be delivered in due course.

The auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain statements under section 498 (2) or (3) of the Companies Act 2006. The results for the year ended 31 December 2016 were approved by the Board of Directors on 8 June 2017 and are audited.

While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of international Financial Reporting Standards (IFRS's) as endorsed for use in the European Union, this announcement does not itself contain sufficient information to comply with IFRS's. The accounting policies adopted in this announcement have been consistently applied and are consistent with the policies used in the preparation of the statutory accounts for the period ending 31 December 2016.  

The consolidated financial statements of the Group have been prepared in accordance with the Companies Act 2006 and International Financial Reporting Standards (IFRS) as developed and published by the International Accounting Standards Board (IASB) as adopted by the European Union (EU). 

 

Presentational currency

The financial statements have been presented in US Dollars which is the functional currency of the company.

 

2.    Segmental analysis

The Group has three reportable segments attributable to its continuing operations including Head office:

·     Physical metals and minerals trading

·     Cement operations

·     Head office costs relate to overheads incurred in connection with operating the public limited company, providing support functions to the Group.

The Investment portfolio segment has become insignificant during the year but is shown for comparative purposes. The measurement of the segmental revenue, profit before tax, capital expenditure, depreciation, total assets, total liabilities and net assets have been prepared using consistent accounting policies across the segments.

 

Factors that management used to identify the Group's reportable segments

The Group's reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different strategies.

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker has been identified as the management team including the Chief Executive, Chief Operating Officer and the Finance Director.

 



 

 

 








Trading

Cement

Operations

Investment

Portfolio

Head office costs

Total


2016

2016

2016

2016

2016


US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

Turnover

1,037,175

10,012

-

 -  

1,047,187

Cost of Sales

(1,036,773)

(9,197)

-

 -  

(1,045,970)

Gross margin

402

815

-

-

1,217

Administrative expenses

(1,628)

(1,063)

-

(30)

(2,721)

Employment costs

(2,455)

(1,012)

-

(1,068)

(4,535)

EBITDA

(3,681)

(1,260)

-

(1,098)

(6,039)

Depreciation and impairment expense





(23,490)

Finance income





1,479

Finance cost





(3,094)

Loss before tax





(31,144)


 

 

 

2015

2015

2015

2015

2015


US $ 000's

US $ 000's

US $ 000's

US $ 000's

US $ 000's

Turnover

1,895,451

2,077

-

 -  

1,897,528

Cost of Sales

(1,900,327)

(1,887)

-

-  

(1,902,214)

Revenue

-

-

676

 -  

676

Gross margin

(4,876)

190

676

-

(4,010)

Administrative expenses

(1,753)

1,406

-

(1,087)

(1,434)

Employment costs

(2,196)

(37)

-

(1,075)

(3,308)

EBITDA

(8,825)

1,559

676

(2,162)

(8,752)

Depreciation and impairment expense





(435)

Finance income





428

Finance cost





(601)

Loss before tax





(9,360)

 


Year to 31 December 2016

Year to 31 December 2015


US $ 000's

US $ 000's

Loss before tax



Trading

(3,977)

(8,917)

Cement operations

(27,024)

669

Investment portfolio

-

676

Head office costs

(143)

(1,788)


(31,144)

(9,360)

 



 

Geographical split of Total income for the Group where > 10% per region


Year to 31 December 2016

Year to 31 December 2015


US $ 000's

US $ 000's


Turnover

Turnover

Eastern Asia

535,923

            1,035,593

Western Asia

               313,312

               533,706

Other

               197,952

               328,229




Major customers of the Group where individually >10% of Total income


Year to 31 December 2016

Year to 31 December 2015


US $ 000's

US $ 000's


Customer

Customer

Customer A (attributable to Trading segment)

               97,387

302,002

Other

            949,800

            1,595,526

 


Year to 31 December 2016

Year to 31 December 2015


US $ 000's

US $ 000's

Investment portfolio losses represents:



Unrealised gains on financial assets

designated at fair value

-

676


-

676

 


Year to 31 December 2016

Year to 31 December 2015


US $ 000's

US $ 000's

Depreciation and impairment expense:



Trading

294

93

Cement operations

23,196

342

Investment portfolio

-

-

Head office

-

-


23,490

435

 


Year to 31 December 2016

Year to 31 December 2015


US $ 000's

US $ 000's

Non-current assets by country:



Mozambique

56,285

76,161

United Kingdom

109

2,328

China

7

6


56,401

78,495

 

 

 



 


As at 31 December 2016

As at 31 December 2015

US $ 000's

US $ 000's

Total assets



Trading

219,869

336,194

Cement operations

63,237

82,170

Investment portfolio

150

179

Head office

310

144


283,566

418,687

Total liabilities



Trading

217,034

322,863

Cement operations

35,437

28,538

Investment portfolio

-

-

Head office

1,875

3,859


254,346

365,260

 

3. Earnings per ordinary share

The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year, excluding shares held in the Employee Benefit Trust at 31 December 2016 of 6,259,046 (2015: 6,259,046), Treasury shares at 31 December 2016 of 4,500,058 (2015: 4,500,058) and Non-treasury shares at 31 December 2016 of 8,484,467 (2015: 28,812,192).

The calculation of diluted earnings per share is based on the basic earnings per share adjusted to allow for the issue of shares through the share option schemes on the assumed conversion of all dilutive options.

Reconciliations of the earnings and weighted average number of shares in the calculations are set out below. Diluted earnings per share has not been calculated as the Company is loss making. The loss attributable to the owners of the Company used in the calculation below is that presented in the consolidated statement of comprehensive income.


Year to 31 December 2016

Year to 31 December 2015


US $ 000's

US $ 000's




Loss attributable to shareholders

(20,709)

(7,324)

Diluted loss attributable to shareholders

(20,709)

(7,324)




Weighted average number of shares

241,673,620

189,044,366

Dilutive effect of convertible loan notes and warrants

66,675,000

66,675,000




Basic earnings per share US $ cents

(8.57)

(3.87)

Diluted earnings per share US $ cents

(8.57)

(3.87)

 



 

 

4. Non-controlling interest

The non-controlling interest ("NCI") disclosed in the consolidated statement of comprehensive income and consolidated statement of financial position at 31 December 2016 is represented by

Names of entity with NCI

Cimentos da Beira Limitada

Principal place of business of subsidiary

Beira, Mozambique





2016

2015

Proportion of ownership held by NCI

20%

20%

Proportion of voting rights held by NCI

0%

0%

(Loss)/profit attributed to NCI in US $ 000's

(3,695)

252

Accumulated NCI value at in US $ 000's

3,494

7,197

Dividends paid to NCI

-

-


US $ 000's

US $ 000s

Non-current assets

55,518

75,394

Current assets

6,868

5,983

Non-current liabilities

-

(20,496)

Current liabilities

(37,944)

(21,068)

Turnover

10,012

2,077

(Loss)/profit for the year

(18,474)

1,263

Total comprehensive income for the year

(18,474)

1,263

 

The 20% economic interest in Cimentos da Beira ("CdB"), is held by the Industrial Development Corporation of South Africa Limited ("IDC") by means of a convertible loan agreement whereby the IDC has an option to subscribe for 20% of the issued share capital of CdB following the repayment of the IDC loans by CdB. The IDC has a right to 20% of any dividends declared by CdB until such time that it holds no financial interest in CdB.

There is a 20% minority interest in Ambrian Resources AG held by shareholders other than Ambrian plc.

 

5. Metals Trading Business 

In October 2016, the Group decided to close the metals trading business with a gradual run-down of all open contracts. The segment was not technically a discontinued operation or classified as held-of-sale at 31 December 2016 and therefore no reclassifications have been made in the financial statements. The disclosure below shows the statement of comprehensive income of the metals trading business included in the consolidated statement of comprehensive income.


Year to 31 December 2016

Year to 31 December 2015


US $ 000's

US $ 000's




Turnover

1,037,175

1,895,451

Cost of Sales

(1,036,773)

(1,900,327)

Net revenue

402

(4,876)

Administrative expenses

(4,378)

(4,041)

Operating loss

(3,976)

(8,917)

Finance income

-

-

Finance costs

-

-

Loss before tax

(3,976)

(8,917)

Taxation

(1,964)

1,843

Loss for the year

(5,940)

(7,074)






 

 

The loss from the metals trading business of $5,940,000 (2015: $7,074,000) is attributable entirely to the owners of the Company. Once the metals trading business has been run-down, the financial position of the Group should be as follows:


As at 31 December 2016

ASSETS

US $ 000's

Non-current assets


Property, plant and equipment

54,102

Deferred tax asset

2,184


56,286



Current assets


Inventory

2,997

Trade and other receivables

3,513

Cash and cash equivalents

3,692

Total assets

66,488



LIABILITIES


Non-current liabilities


Long-term borrowings

(915)

Deferred tax liability

(558)


(1,473)



Current liabilities


Financial liabilities at fair value through profit or loss

(801)

Short-term borrowings

(29,053)

Trade and other payables

(5,920)

Current tax payable

                      (21)  

Total liabilities

(37,268)



Total net assets

29,220



 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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