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: 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 12,629,831ABRIDGED PROVISIONAL COMPANY STATEMENT OF CHANGES IN EQUITY
31 Dec2020 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 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 PERFORMANCEThe 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.
OUTLOOKThe 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 | +260-211-232456E | advisory@sbz.com.zm
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 Dec2020 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
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