ZCCM : ZCCM-IH_Abridged Financial Results_December 2019

information fournie par Actusnews •14/06/2021 à 16:30

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: +260-211-232456

Website: www.sbz.com.zm

APPROVAL

The captioned Notice or Announcement has been approved by:

1. the Lusaka Securities Exchange (“LuSE”)
2. the Securities and Exchange Commission (“SEC”)
3. 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: 14 June 2021

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”]

ABRIDGED AUDITED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED 31 DECEMBER 2019

INTRODUCTION

In compliance with the requirements of the Securities Act No. 41 of 2016, ZCCM Investments Holdings Plc (“ZCCM-IH Plc”) announces the provisional financial statements results of the Company and its subsidiary (Collectively referred to as the ‘‘the Group'') for the nine-month period ended 31 December 2019.

CHANGE OF FINANCIAL YEAR END

The financial year end of the Group was changed from 31 March to 31 December in order to comply with the provisions of Section 71 of the Public Finance Management Act and align to the majority shareholder's financial year end. Accordingly, the current financial statements are prepared for nine (9) months from 1 April 2019 to 31 December 2019 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 cash flows and the related notes are not comparable.

STRUCTURE OF THE ZCCM-IH GROUP

The ZCCM-IH Group consisted of the following eight (8) subsidiary companies as at 31 December 2019:

The Company also had other interests in the undernoted companies:

ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY

ABRIDGED COMPANY STATEMENT OF CHANGES IN EQUITY

1. FINANCIAL PERFORMANCE

The Group reported a profit for the nine-month period of ZMW307 million (USD23 million) (March 2019: ZMW448 million (USD40 million)). The 31% decrease in profitability was mainly due to the fact that the previous period is accounting for 12 months as compared to 9 months for the current period. Furthermore, there was a decrease in share of profit of equity accounted investee companies on account of the impairment of receivables by associate companies such as Kansanshi Mining Plc and Copperbelt Energy Corporation Plc.

The Company reported a profit for the year of ZMW153 million (USD12 million) (March 2019: loss ZMW108 million (USD10 million)), mainly due to exchange gains on foreign denominated assets and reduced administrative costs such as impairment of financial assets accounted at fair value through profit or loss, loans and receivables.

The Group and Company's retained earnings as at 31 December 2019 were positive at ZMW2,191 million (USD179 million) (March 2019: ZMW 1,857 million (USD155 million)) and ZMW978 million (USD79 million) (March 2019: ZMW825 million (USD68 million)) respectively. The increase in retained earnings is attributed to recorded Group and Company record profits in this period of ZMW307 million (USD23 million) and ZMW153 million (USD12 million) respectively.

Group total assets increased by 14% to ZMW15.2 billion (USD 1.2 billion) as at 31 December 2019 from ZMW13.4 billion (USD1.1 billion) as at 31 March 2019. This is mainly attributed to an increase in values of investments in associates from ZMW 10.3 billion (USD956 million) as at 31 March 2019 to ZMW 11.9 billion (USD.

1. DIVIDEND

The Directors will recommend a final dividend payout of ZMW53,064, 601.26 (USD2,391,590.11) in total ( K 0.33 per share (USD0.0149)).

1. SIGNIFICANT DEVELOPMENTS

ZCCM-IH's investments were steered towards the mining sector. Thus, three core strategies were employed targeted at driving portfolio growth which were:

• Pursuit of the royalty model in order to introduce new revenue stream;
• Realignment of the portfolio to achieve more focus in mining and mining related activities; and
• Development of turnaround strategies for loss making subsidiaries.

1. OUTLOOK

Looking into the future, the mining sector is generally expected to face challenges during early to mid-2020 due to depressed commodity prices and disruption in international trade caused by the Novel Coronavirus (COVID-19) pandemic.

Despite these challenges, ZCCM-IH is committed to enhance value creation for its shareholders. Thus, ZCCM-IH will continue to diversify within the mining sector to mitigate slumps that may be experienced in some metals at a particular time while taking advantage of surges occurring in other metals during the same time.

By Order of the Board

Chabby Chabala

Company Secretary

Issued in Lusaka, Zambia on 14 June 2021

APPENDICES