TIDMZCC

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:                    +260-211-232456 
   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 YEARED 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

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                            31 Dec 
                                                                                                      2020                              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       31 Dec 
                                                            2020         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          3 87,110 
 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 
                                                                                     (9 months) 
                                                                   ZMW'000              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 2019 
                                                               31 Dec 2020           (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          31 Dec 
                                            2020            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 | +260-211-232456 
 
    E | 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 Dec          31 Dec 
                                                                 2020            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        31 Dec 
                                                                   2020          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 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

FR PPUMGPUPPGBC

(END) Dow Jones Newswires

February 25, 2022 02:00 ET (07:00 GMT)

Zccm Investments (LSE:ZCC)
Gráfica de Acción Histórica
De Jul 2022 a Ago 2022 Haga Click aquí para más Gráficas Zccm Investments.
Zccm Investments (LSE:ZCC)
Gráfica de Acción Histórica
De Ago 2021 a Ago 2022 Haga Click aquí para más Gráficas Zccm Investments.