ZCCM-IH AUDITED ABRIDGED FINANCIAL STATEMENTS_ 31 DECEMBER 2020
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:
- the Lusaka Securities Exchange (“LuSE”)
- the Securities and Exchange Commission (“SEC”)
- 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:
The Company also has other interests in the undernoted companies:
ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
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| 31 Dec 2020 |
31 Dec 2019 |
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| (9 months) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| ZMW'000 | ZMW'000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | 113,088 |
62,432 |
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| 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 |
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| 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 |
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| 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 | ||
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| 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 |
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| 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: | ||||
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181,209 | 56,816 | ||
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(10,034) | (2,641) | ||
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253,830 | 111,688 | ||
| 425,005 | 165,863 | |||
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| ABRIDGED COMPANY STATEMENT OF CASH FLOWS | ||||
| 31 Dec 2020 | 31 Dec 2019 (9 months) |
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| 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 | ||
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ABRIDGED PROVISIONAL COMPANY STATEMENT OF CHANGES IN EQUITY
| 31 Dec 2020 |
31 Dec 2019 |
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| 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 | |||||
- 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.
- 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.
- 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
| Lusaka Securities Exchange Sponsoring Broker | ||
|
T | +260-211-232456 E | [email protected] 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 |
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| 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 |
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| (9 months) | ||||
| US$'000 | US$'000 | |||
| Revenue | 6,070 |
4,687 |
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| 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 |
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| (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 |
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| 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 |
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| 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 |
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