REG - Cambria Africa PLC - Interim Results
30/05/2022 16:30
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RNS Number : 2920N Cambria Africa PLC 30 May 2022
Cambria Africa Plc
Interim Results (the "Results")
EPS of 0.0084 US cents and NAV 1.16 US cents
For the 6 Months ended 28 February 2022
Cambria Africa Plc (AIM:CMB (AIM%3ACMB) ) ("Cambria", the "Company" or
together with its subsidiaries the "Group") is pleased to announce its interim
results for the six months ended 28 February 2022 (the "Period" or "H1 2022").
A copy of this announcement is available on the Company's website
(www.cambriaafrica.com (http://www.cambriaafrica.com) ).
Profit after Tax increased by 158% to $245,000 for the Period compared to
$95,000 achieved in the same period in 2021 ("H1 2021"). This was mostly due
to increased revenue from Tradanet, the Company's 51% owned subsidiary.
Revenues rose to $540,000 in H1 2022 compared to $137,000 in H1 2021. The
Company's Net Asset Value dropped 2% or $149,000 to $6.32 million (1.16 US
cents per share) as at 28 February 2022 compared to H1 2021.
Excluding minority interests, Profit Attributable to Cambria Shareholders
was $46,000 (0.01 US cents per share) for H1 2022, down from $72,000 in H1
2021. The Company's subsidiaries in Zimbabwe continued to operate above
break-even; Millchem Zimbabwe's product sales in its joint venture with
Merken, have slowed down significantly as predicted in prior communications.
Half Year 2022 Results Highlights
6 months ended 28 February 2022 (US$'000) 2022 2021 Change
Group:
- Revenue 724 526 38%
- Operating costs 448 358 25%
- Consolidated EBITDA 299 205 46%
- Consolidated Profit after tax (PAT) 240 95 153%
- PAT attributable to shareholders (excluding minority interests) 46 72 (36%)
- Central costs 13 51 (75%)
- EPS - cents 0.0084 0.0132 (36%)
- NAV 6,319 6,468 (2%)
- NAV per share - cents 1.16 1.19 (2%)
- Weighted average of shares in issue 544,576 544,576 -
- Shares in issue at year end 544,576 544,576 -
Divisional:
- Payserv - consolidated PAT 251 136 85%
- Payserv - consolidated EBITDA 305 228 34%
- Millchem - EBITDA 3 28 (89%)
Group Highlights H1 2022:
Net Asset Value ("NAV") decreased by 2% from $6.468 million (1.19 US cents
per share) in H1 2021 to $6.319 million (1.16 US cents per share) in H1
2022.
l Group Finance costs decreased to $7,000 in H1 2022 compared
to $13,000 in H1 2021. Finance costs will continue to fall as the Group's
outstanding debt nears zero. Current debt owing to Ventures Africa Limited
("VAL") stands at $106,000 which will be repaid in full by the end of the 2022
financial year.
l Group revenue recovered by 38% compared to prior year. This is due to
Tradanet revenue increasing significantly as loans advanced by Central Africa
Building Society, a subsidiary of Old Mutual Zimbabwe, increased in line with
inflationary pressures, leading to higher salaries in the market.
l Cambria's Profit After Tax increased 153%, driven by asset sales and above
break-even operations, to $240,000 in H1 2022 compared to $95,000 in H1
2021.
l Consolidated EBITDA was 46% higher in H1 2022 at $299,000 compared to
$205,000 in H1 2021.
l Cambria's central costs decreased by 75% to $13,000 compared
to $51,000 in H1 2021. Cambria's CEO and Directors continued to render
services to Cambria without compensation during H1 2022.
l Foreign currency translation losses of $194,000 and losses attributable to
hyperinflationary accounting in this period were due to the depreciation of
the Zimbabwean currency against the US Dollar from ZWL83.89 to the US Dollar
as at 28 February 2021 to ZWL124.02 as at 28 February 2022.
Net Asset Value
The Company's net asset value reduced by 2% from $6.468 million in H1 2021 to
$6.313 million (1.19 US cents per share) in H1 2022. This was due to the
downward revaluation of the Company's business premises by $200,000 during the
2021 year-end audit.
Components of NAV as at 28 February 2022
The Group's NAV of $6.313 million as at the end of H1 2022 consists of the
following tangible and intangible assets:
Building and properties valued at $2.3 million - This valuation, down $200,000
from the prior valuation, was prepared by Hollands Harare Estate Agents
("Holland") in on the 27(th) of January 2022. Holland also conducted the
previous valuations of this prominently located commercial office space and
its equally well-positioned vacant plot in Harare's Mount Pleasant Business
Park.
Indirect shareholding of 9.74% of Radar Holdings Limited Valued at $1.743
million (net of minority interests) or 35 US cents per share.
USD Cash and Cash Equivalents of $1.4 million - Cash net of
liabilities outside Zimbabwe totalled $1.4 million as at 27 May 2021.
Old Mutual Limited shares - The Company holds 204,047 Old Mutual Limited
common shares that were suspended on the Zimbabwe Stock Exchange ("ZSE") on 31
July 2020 and valued on its FY 2021 Consolidated Statement of Financial
Position at $184,000 based on the closing price of Old Mutual Limited on the
Johannesburg Stock Exchange ("JSE") at year end. The value of Old Mutual
shares closed at $163,342 on the JSE on 27 May 2022.
Goodwill - The Company has a goodwill value of $717,000 as at 28 February
2022. The Company believes this is a fair assessment of its intangible
assets. Despite the shrinkage of Paynet's operations, Cambria continues to
maintain turnaround opportunities particularly in Tradanet and Autopay as real
salaries catch up with inflation. The Company continues to believe that the
Paynet's intellectual property has value and the amalgamation of the above
should exceed the book value of its goodwill.
Based on the above analysis, the Company believes its tangible, intangible and
realizable NAV are not subject to significant negative shocks and may be the
beneficiary of potential positive outcomes.
Chief Executive's Report
The Company released its annual report for the financial year ended 31 August
2021 on the 31 of March 2022. In the two months since that report, the most
significant event subsequent has been a government pronouncement intended on
halting inflation. One measure, that of stopping all lending, was reversed
soon after its intended implementation. Another measure was to bring
convergence between the so-called "interbank rate" and the "auction rate"
which are reference rates for the Reserve Bank of Zimbabwe's official exchange
rates. The net effect has been a doubling of the functional exchange rate to
ZWL300 against the US dollar. At this time, our best indication is that this
rate still lags the parallel market rate by almost 30%.
The impact of these movements in the exchange rates should be taken into
account when analyzing the Company's earnings in ZWL. To the extent we can,
we will be investing excess funds into a diversified portfolio on the Zimbabwe
Stock Exchange to preserve value. Regardless, we anticipate slower growth in
the US dollar value of Tradanet's loan processing portfolio as a consequence
of inflation and devaluation. Similarly, we expect a decline in the real
value of our Payroll processing revenues. However, both operations should
continue to trade at cashflow break-even levels. As mentioned in my CEO report
at the end of FY2021, Cambria's story is now focused on realizing its NAV -
which remains at 3.3x its trading price as of 27 May 2022. I remain
optimistic that this is a realistic and realizable goal.
Samir Shasha
30 May 2022
Contacts
Cambria Africa Plc www.cambriaafrica.com (http://www.cambriaafrica.com)
Samir Shasha +44 (0)20 3287 8814
WH Ireland Limited
James Joyce / Ben Good +44 (0) 20 7220 1666
Cambria Africa Plc
Interim consolidated income statement
For the six month period ended 28 February 2022
Unaudited Unaudited Audited
6 months to 6 months to Year to
28-Feb-22 28-Feb-21 31-Aug-21
US$'000 US$'000 US$'000
Revenue 724 526 1,216
Cost of sales (64) (78) (138)
Gross profit 660 448 1,078
Operating costs (448) (358) (838)
Other income 39 69 79
Exceptionals (12) (13) (21)
Operating profit 239 146 298
Finance income 8 1 -
Finance costs (7) (13) (22)
Net finance costs (1) (12) (22)
Profit before tax 240 134 276
Income tax - (39) (95)
Profit / (loss) for the Period 240 95 181
Attributable to:
Owners of the Company 46 72 82
Non-controlling interests 194 23 99
Profit for the period 240 95 181
Earnings per share ("EPS")
Basic and diluted earnings per share (cents) 0.01 0.01 0.02
Weighted average number of shares for EPS ('000) 544,576 544,576 544,576
Cambria Africa Plc
Interim consolidated statement of comprehensive income
For the six month period ended 28 February 2022
Unaudited Unaudited Audited
6 months to 6 months to Year to
28-Feb-22 28-Feb-21 31-Aug-21
US$'000 US$'000 US$'000
Profit for the period 240 (15) 2,247
Other comprehensive income
Items that will not be reclassified to income statement:
Revaluation of investments held at fair value - - 200
Related deferred tax adjustment - - (36)
Foreign currency translation differences for overseas operations (194) - 3
Foreign currency translation impact on non-controlling interests - -
Total comprehensive (loss) / profit for the period 46 (15) 2,414
Attributable to:
Owners (148) (15) 2,064
Non-controlling interests 194 - 350
Total comprehensive (loss) / profit for the period 46 (15) 2,414
Cambria Africa Plc
Interim consolidated statement of financial position
As at 28 February 2022
Unaudited Unaudited Audited
Group Group Group
28-Feb-22 28-Feb-21 31-Aug-21
US$'000 US$'000 US$'000
Assets
Property, plant and equipment 2,311 2,558 2,317
Goodwill 717 717 717
Intangible assets 1 1 1
Investments at fair value 2,228 2,228 2,228
Total non-current assets 5,257 5,504 259
Inventories 160 75 5,522
Financial assets at fair value through profit and loss 219 251 158
Trade and other receivables 348 219 155
Cash and cash equivalents 1,574 1,540 1,656
Assets for discontinued operations - - -
Total current assets 2,301 2,085 1,969
Total assets 7,558 7,589 7,491
Equity
Issued share capital 77 77 77
Share premium account 88,459 88,459 88,459
Revaluation reserve (190) - (190)
Foreign exchange reserve (10,983) (10,763) (10,734)
Non-distributable reserves 2,371 2,371 2,371
Retained losses (73,421) (73,676) (73,665)
Equity attributable to owners of the Company 6,313 6,468 6,318
Non-controlling interests 600 506 477
Total equity 6,913 6,974 6,795
Liabilities
Loans and borrowing 106 - 101
Trade and other payables 89 65 90
Provisions - 2 -
Deferred tax liabilities 189 193 189
Total non-current liabilities 384 260 380
Current tax liabilities (1) 75 106
Loans and borrowings - 45 -
Trade and other payables 261 235 209
Liabilities for discontinued operations - - -
Total current liabilities 260 355 315
Total liabilities 644 615 695
Total equity and liabilities 7,557 7,589 7,490
Cambria Africa Plc
Interim consolidated statement of changes in equity
For the six month period ended 28 February 2022
US$'000 Share Capital Share Premium Revaluation Reserve Foreign Exchange Reserve Retained Earnings Non-distributable Reserve Total Non-controlling Interest Total
Balance at 31 August 2020 77 88,459 - (10,736) (73,748) 2,371 6,423 496 6,919
(Loss)/profit for the period - - - - 72 - 72 23 95
Foreign currency translation differences for overseas operations - - - (28) - - (28) - (28)
Foreign currency translation differences for overseas operations-NCI 1 1 (1) -
Total comprehensive loss for the year - - - (27) 72 - 45 22 67
Contributions by/distributions to owners of the Company recognised directly in
equity
Dividends paid - - - - - - - (12) (12)
Total contributions by and distributions to owners of the Company - - - - - - - (12) (12)
Balance at 28 February 2021 51 88,459 - (10,763) (73,676) 2,371 6,468 506 6,974
US$'000 Share Capital Share Premium Revaluation Reserve Foreign Exchange Reserve Retained Earnings Non-distributable Reserve Total Non-controlling Interest Total
Balance at 31 August 2020 77 88,459 - (10,736) (73,748) 2,371 6,423 496 6,919
Profit for the period - - - - 82 - 82 99 181
Revaluation of investments held at fair value - - (190) - - - (190) - (190)
Related deferred tax adjustment - - - - - - - - -
Transfer of translation reserve to discontinued operation - prior year - - - - - - - - -
Foreign currency translation differences for overseas operations - - - (4) - - (4) - (4)
Foreign currency translation differences for overseas operations - NCI - - - 6 - - 6 (6) -
Total comprehensive loss for the year 77 88,459 (190) (10,734) (73,666) 2,371 6,317 589 6,906
Contributions by/distributions to owners of the Company recognised directly in
equity
NCI on further investment in A F Philip & Company - - - - - - - - -
Dividends paid to minorities - - - - - - - (112) (112)
Total contributions by and distributions to owners of the Company - - - - - - - (112) (112)
Balance at 31 August 2021 77 88,459 (190) (10,734) (73,666) 2,371 6,317 477 6,794
US$'000 Share Capital Share Premium Revaluation Reserve Foreign Exchange Reserve Retained Earnings Non-distributable Reserve Total Non-controlling Interest Total
Balance at 31 August 2021 77 88,459 (190) (10,734) (73,665) 2,371 6,318 477 6,795
(Loss)/profit for the period - - - - 244 - 244 194 438
Foreign currency translation differences for overseas operations - - - (249) - - (249) - (249)
Total comprehensive loss for the year - - - (249) 244 - (5) 194 189
Contributions by/distributions to owners of the Company recognised directly in
equity
Dividends paid - - - - - - - (71) (71)
Total contributions by and distributions to owners of the Company - - - - - - - (71) (71)
Balance at 28 February 2022 51 88,459 (190) (10,983) (73,421) 2,371 6,313 600 6,913
Cambria Africa Plc
Interim consolidated statement of cash flows
For the six month period ended 28 February 2022
Unaudited Unaudited Audited
28-Feb-22 28-Feb-21 31-Aug-21
US$'000 US$'000 US$'000
Cash generated from operations 144 90 294
Taxation (paid) (105) (2) (31)
Cash generated from operating activities (39) 88 263
Cash flows from investing activities 15 144
Proceeds on disposal of property, plant and equipment 72
Purchase of property, plant and equipment - - -
Net proceeds from marketable securities - - -
Other investing activities - - (210)
Interest received 8 1 -
Net cash (utilized in)/ generated investing activities 23 73 (66)
Cash flows from financing activities (71) (112)
Dividends paid to non-controlling interests (12)
Interest paid (7) (13) (22)
Proceeds from issue of share capital - - -
Loans repaid - (464) (299)
Proceeds from drawdown of loans - - -
Net cash (utilized) by financing activities (78) (489) (433)
(128) (236)
Net (decrease)/ increase in cash and cash equivalents (328)
Cash and cash equivalents at the beginning of the Period 1,656 1,896 1,896
Foreign exchange (194) (28) (4)
Net cash and cash equivalents at 31 August 1,574 1,540 1,656
1,656
Cash and cash equivalents as above comprise the following
Cash and cash equivalents attributable to continuing operations 1,574 1,540
Net cash and cash equivalents at 31 August 1,574 1,540 1,656
* Amounts include both continuing and discontinued operations.
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