REG - Cambria Africa PLC - Interim Results
14/09/2023 17:00
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RNS Number : 5122M Cambria Africa PLC 14 September 2023
Cambria Africa Plc
("Cambria" or the "Company")
Interim Results (the "Results")
EPS of 0.01 US cents and NAV 1.06 US cents
For the 6 Months ended 28 February 2023
Cambria Africa PLC (AIM:CMB) ("Cambria" or the "Company") is pleased to
announce its interim results for the six months ended 28 February 2023 (the
"Period"). A copy of this announcement is available on the Company's website
(www.cambriaafrica.com (http://www.cambriaafrica.com) ). With the publishing
of the Group`s FY 2022 and HY 2023 results, the suspension of the Company`s
shares on the AIM is expected to be lifted at 7.30am on 15 September 2023.
Profit after tax decreased by 59% to US$99,000 for the 6 months ended 28
February 2023 compared to $240,000 achieved in the same period in 2022. This
was due to a decline in revenue and earnings contributions from Tradanet.
Tradanet`s performance was impacted by the slower growth in the US dollar
value of its loan processing portfolio which value slowed as a consequence of
inflation and the devaluation of Zimbabwe's currency (ZWL). Tradanet's
revenues were further adversely impacted by liquidity constraints in the
banking sector. Autopay also experienced a decline in the real value of its
Payroll processing revenues caused by the depreciation of ZWL relative to the
US dollar.
The Group's Net asset value of $5.76 million remained in line with the audited
NAV reported for the financial year ended
31 August 2022 of $5.75 million.
Half Year 2023 Results Highlights
6 Months ended 28 February 2023 (US$'000) 2023 2022 Change
- Revenue 451 724 (38%)
- Operating costs 323 448 28%
- Consolidated EBITDA 128 299 (57%)
- Consolidated Profit after tax (PAT) 99 240 (59%)
- PAT attributable to owners of the Company 28 46 (39%)
- Central costs 21 13 (62%)
- EPS - cents 0.01 0.01 -
- NAV 5,763 6,313 (9%)
- NAV per share - cents 1.06 1.16 (9%)
- Weighted average of shares in issue 544,576 544,576 -
- Shares in issue at year end 544,576 544,576 -
Divisional:
- Payserv - consolidated PAT 121 251 (52%)
- Payserv - consolidated EBITDA 149 305 (51%)
- Millchem - EBITDA - 3 (100%)
Group Highlights HY 2023:
· Net Equity (NAV) decreased by 9% from US $6.313 million (1.16
US cents per share) in HY 2022 to $5.763 million (1.06 US cents per share)
in HY 2023.
· Group revenue decreased by 38% compared to the prior period from
$724,000 to $451,000. This is mainly due to Tradanet revenues decreasing as a
result of declining loan advances by CABS in United States dollar terms during
the period.
· Consolidated EBITDA was 57% lower in HY 2023 at $128,000 compared
to $299,000 in HY 2022.
Net Equity (Net Asset Value)
The company's net asset value reduced by 9% from $6.313 million at HY 2022 to
$5.763 million at HY 2023. The HY2023 NAV corresponds with the audited NAV at
31 August 2022 of $5,75 million.
Components of NAV at 28 February 2023
The Group NAV of $5.763 million as at the end of HY 2023 consists of the
following tangible and intangible assets:
Building and properties valued at $2.3 million - The valuation was prepared by
Hollands Harare Estate Agents in January 2022. Holland conducted the previous
valuations of the prominently located commercial office space and its equally
well-positioned vacant plot in Harare's Mount Pleasant Business Park.
Investment in Radar Holdings Limited - 9.74% or 4.98 million shares valued
at US $1.743 million (net of minority interests) based on 35 US cents per
equivalent Radar share. In the post balance sheet period, the Company
conditionally agreed to sell its 78.2% shareholding in A.F. Philips (Pvt)
Ltd ("AFP") for a sum of US $1.743 million (35 US cents per equivalent Radar
Share) in cash. The sale is subject to conditions precedent which the Company
has reasonable cause to believe will be met and that the full purchase price
will be realized at the holding Company level.
USD Cash and Cash Equivalents - US dollar cash totalling $1.36 million.
Old Mutual and Nedbank 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 2022 Statement of Financial Position at US
$122,820 based on the closing price of Old Mutual Limited on the Johannesburg
Stock Exchange at the year end. By way of an unbundling by Old Mutual in
November 2021, the company received 2,692 Nedbank shares, which are retained
in Zimbabwe. The total value of this portfolio was $168,120 based on the
Johannesburg Stock Exchange (JSE) closing price`s as at 11 September 2023.
Goodwill - The Company has a goodwill value of $717,000 on its Statement of
Financial Position relating to its investment in the Payserv group of
Companies. The Company believes this is a fair assessment of the intangible
asset despite the impact of the decisions made by Zimbabwe`s banking
institutions against using its payment platforms. Turnaround opportunities are
being explored and are more recently evidenced by the granting to Multi-Pay
Solutions (Pvt) Ltd (Multi-Pay Solutions) the exclusive rights to use,
distribute, and operate Paynet Software in the Southern African Development
Community (SADC). Payserv Africa will continue to operate Paynet outside of
the SADC. Tradanet, in which the Company holds an effective 51% interest, is
the largest contributor to the Company's earnings. Tradanet processes
microloans on behalf of CABS, Zimbabwe's largest Building Society. At their
peak in 2019, these microloans comprised about a third of the banks assets and
the Directors believe that a return to those levels is fully conceivable.
Accordingly, the Company continues to believe that Payserv's intellectual
property value and the amalgamation of the above exceeds the book value of the
goodwill.
Chief Executive's Report
The Company has released its Annual Report for the financial year ended 31
August 2022 simultaneously with its 2023 half year results. As covered in my
CEO report attached to the audited year end results, Cambria's story is now
focused on realizing its NAV. Investors might find value in examining our
estimate of realizable NAV at US $7.5 million (1.4 US cents per share). Our
estimate draws from the following actual and anticipated components:
· Cash: As at the half year ended 2023, the Group held cash
reserves of US$1.36 million. As at 31 August 2023, in addition to
Zimbabwe-held US dollar-denominated cash, shares and gold coins , the Company
holds a Fixed Deposit of $1.4 million in Mauritius, yielding 5% per annum.
· Commercial Property: This is represented by the prominently
located Mt. Pleasant Business Park Commercial Property valued annually by
Hollands Harare Estate Agents at $2.3 million.
· Recovery of Legacy Debts: The Company is actively pursuing the
recovery of "Legacy Debts" or "Blocked Funds" owed by our Zimbabwe
subsidiaries to the holding companies. As at 31 August 2023, we've
successfully recovered US$407,350, leaving an outstanding balance of $1.2
million held by the Ministry of Finance. These funds, initially held by the
Reserve Bank in ZWL on a one-to-one basis with the USD, were marked down to a
negligible value in our FY 2021 accounts based on the official exchange rate.
However, post FY 2022, the Ministry of Finance began repaying these debts and
assures us of the balance, as funds become available. As a result, our NAV
after the financial year end will see an increase, accounting for the
recovered debts.
· Listed Portfolio Value: We aim to realise the value of the
204,047 Old Mutual shares and 2,692 Nedbank shares by transferring these
shares to the South African register. The total value of this portfolio was
$155,132 based on JSE closing prices on 28 August 2023 and $168,120 as at 11
September 2023.
· Sale of Radar equivalent shares: At the holding Company level, we
will, realise $1.743 million from the sale of our indirect stake in Radar,
subject to fulfilment of the outstanding conditions precedent to the agreement
of sale.
· Intellectual Property Value: The Board is committed to deriving
maximum value from our intellectual property, both in our current operations
and future endeavours. The Company's Statement of Financial Position lists a
goodwill value of $717,000. Our assessment is that this represents the
baseline value of the Company's intellectual property, considering Tradanet's
historical profitability and Paynet's potential profits from its proposed
agreement with Multi-Pay.
These estimates, culminating in a projected NAV of US $7.5 million, come with
the following considerations:
1. Maintenance of stable commercial real estate prices in Harare and
successful sales realization at the holding Company level.
2. Successful completion of the Radar Sale agreement.
3. Repayment of US $1.2 million in Legacy Debts.
4. Effective utilization of intellectual properties for profit.
5. The resumption of fungibility of dual-listed shares.
We remain cautiously optimistic about achieving full value for the Company's
assets beyond its NAV. While we still see value in our listing, the Board is
considering whether to maintain its listing. With the publishing of the
Group`s FY 2022 and HY 2023 results, the suspension of the Company`s shares on
the AIM will be lifted. This should enable shareholders to trade with a
comprehensive understanding of the investment landscape confronting Cambria.
At the time of suspension, Cambria shares were valued at 0.027p, contrasting
with a book NAV of 0.084p and our estimate of 1.35 US cents per share or 1.04p
per share. Shareholders must determine whether the market has aptly gauged the
discount to the Company's book NAV and management's estimates of realizable
NAV, which we are committed to achieving.
Samir Shasha
12 September 2023
Contacts
Cambria Africa Plc www.cambriaafrica.com (http://www.cambriaafrica.com)
Samir Shasha +44 (0)20 3287 8814
WH Ireland Limited www.whirelandplc.com/capital-markets
James Joyce / Sarah Mather +44 (0) 20 7220 1666
Cambria Africa Plc
Interim consolidated income statement
For the six month period ended 28 February 2023
Unaudited Unaudited Audited
6 months to 6 months to Year to
28-Feb-23 28-Feb-22 31-Aug-22
US$'000 US$'000 US$'000
Revenue 451 724 920
Cost of sales - (64) (22)
Gross profit 451 660 898
Operating costs (323) (448) (623)
Other income - 39 69
Exceptionals - (12) (212)
Operating profit 128 239 132
Finance income 11 8 12
Finance costs - (7) (5)
Net finance income 11 1 7
Profit before tax 139 240 139
Income tax (40) - (144)
Profit/(loss) for the period 99 240 (5)
Attributable to:
Owners of the company 28 46 (178)
Non-controlling Interests 71 194 173
Profit/(loss) for the period 99 240 (5)
Earnings/(loss) per share
Basic and diluted earnings/(loss) per share (cents) 0.01c 0.01c (0.03c)
Earnings per share - continuing operations
Basic and diluted earnings/(loss) per share (cents) 0.01c 0.01c (0.03c)
Weighted average number of shares for EPS 544,576 544,576 544,576
Cambria Africa Plc
Interim consolidated statement of comprehensive income
For the six month period ended 28 February 2023
Unaudited Unaudited Audited
6 months to 6 months to Year to
28-Feb-23 28-Feb-22 31-Aug-22
US$'000 US$'000 US$'000
Profit/(loss) for the period 99 240 (5)
Other comprehensive income
Items that will not be reclassified to Statement of Profit or Loss:
Foreign currency translation differences for overseas operations (10) (51) (424)
Total comprehensive profit/(loss) for the period 89 189 (429)
Attributable to:
Owners 18 (5) (602)
Non-controlling interests 71 194 173
Total comprehensive profit/(loss) for the period 89 189 (429)
Cambria Africa Plc
Interim consolidated statement of financial position
As at 28 February 2023
Unaudited Unaudited Audited
Group Group Group
28-Feb-23 28-Feb-22 31-Aug-22
US$'000 US$'000 US$'000
Property, plant and equipment 2,305 2,311 2,306
Goodwill 717 717 717
Intangible assets - 1 -
Financial assets at fair value through profit and loss 152 - 155
Total non-current assets 3,174 3,029 3,178
Inventories 8 160 8
Financial assets at fair value through profit and loss 15 219 28
Trade and other receivables 172 348 142
Cash and cash equivalents 1,361 1,574 1,263
Assets classified as held for sale 2,228 2,228 2,228
Total current assets 3,784 4,529 3,669
Total assets 6,958 7,558 6,847
Equity
Issued share capital 77 77 77
Share premium account 88,459 88,459 88,459
Revaluation reserve (190) (190) (190)
Foreign exchange reserve (11,138) (10,785) (11,128)
Non- distributable reserves 2,371 2,371 2,371
Accumulated losses (73,816) (73,619) (73,844)
Equity attributable to owners of the company 5,763 6,313 5,745
Non-controlling interests 496 600 425
Total equity 6,259 6,913 6,170
Liabilities
Loans and borrowing - 106 -
Trade and other payables 40 89 -
Provisions - - -
Deferred tax liabilities 189 189 188
Total non-current liabilities 229 384 188
Current tax liabilities 134 (1) 141
Loans and borrowings - - -
Trade and other payables 336 262 348
Liabilities for discontinued operation - - -
Total current liabilities 470 261 489
Total liabilities 699 645 677
Total equity and liabilities 6,958 7,558 6,847
Cambria Africa Plc
Interim consolidated statement of changes in equity
For the six month period ended 28 February 2023
US$'000 Share Capital Share Premium Revaluation Reserve Foreign Exchange Reserve Accumulated Losses Non-distributable Reserve Total Non-controlling Interest Total
Balance at 31 August 2021 77 88,459 (190) (10,734) (73,666) 2,371 6,317 477 6,794
Profit for the period - - - - 46 - 46 194 240
Foreign currency translation differences for overseas operations - - - (51) - - (51) - (51)
Total comprehensive loss for the year - - - (51) 46 - (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 77 88,459 (190) (10,785) (73,619) 2,371 6,312 600 6,912
US$000 Share Capital Share premium Revaluation reserve Foreign exchange reserve Accumulated losses NDR Total Non-Controlling interests Total
Balance at 1 September 2021 77 88,459 (190) (10,734) (73,666) 2,371 6,317 477 6,794
Profit/(loss) for the year - - - - (178) - (178) 173 (5)
Foreign currency translation differences
for overseas operations - - - (424) - - (424) - (424)
Foreign currency translation differences for overseas operations - NCI
- - - 30 - - 30 (30) -
Total comprehensive income for the year 77 88,459 (190) (11,128) (73,844) 2,371 5,745 620 6,365
Contributions by/distributions to owners of
the Company recognised directly in equity
Dividends paid to minorities - - - - - - - (195) (195)
Total contributions by and distributions to owners of the Company
- - - - - - - (195) (195)
Balance at 31 August 2022 77 88,459 (190) (11,128) (73,844) 2,371 5,745 425 6,170
US$'000 Share Capital Share Premium Revaluation Reserve Foreign Exchange Reserve Accumulated Losses Non-distributable Reserve Total Non-controlling Interest Total
Balance at 1 September 2022 77 88,459 (190) (11,128) (73,844) 2,371 5,745 425 6,170
Profit for the period - - - - 28 - 28 71 99
Legacy debt revaluation - - - 75 - - 75 - 75
Foreign currency translation differences for overseas operations - - - (85) - - (85) - (85)
Total comprehensive (loss)/income for the period - - - (10) 28 - 18 71 89
Contributions by/distributions to owners of the Company recognised directly in
equity
Dividends paid - - - - - - - - -
Total contributions by and distributions to owners of the Company - - - - - - - - -
Balance at 28 February 2023 77 88,459 (190) (11,138) (73,816) 2,371 5,763 496 6,259
Cambria Africa Plc
Interim consolidated statement of cash flows
For the six month period ended 28 February 2023
Unaudited Unaudited Audited
28-Feb-23 28-Feb-22 31-Aug-22
US$'000 US$'000 US$'000
Cash generated from operations 128 144 495
Taxation paid (43) (105) (111)
Cash generated from operating activities 85 39 384
Cash flows from investing activities 17
Proceeds on disposal of property, plant and equipment 15 15
Purchase of property, plant and equipment - - (6)
Non-cash proceeds from scrip dividend - - (33)
Interest received 11 8 12
Net cash (utilized in)/ generated investing activities 26 23 (10)
Cash flows from financing activities - (195)
Dividends paid to non-controlling interests (71)
Interest paid - (7) (5)
Legacy debt repayment 75 - -
Loans repaid - - (100)
Net cash (utilized) by financing activities 75 (78) (300)
186 (74)
Net (decrease)/ increase in cash and cash equivalents (128)
Cash and cash equivalents at the beginning of the period 1,263 1,656 1,656
Foreign exchange (88) (194) (467)
Net cash and cash equivalents at the end of the period 1,361 1,574 1,263
1,361 1,263
Cash and cash equivalents as above comprise the following
Cash and cash equivalents attributable to continuing operations 1,574
Net cash and cash equivalents at 31 August 1,361 1,574 1,263
* Amounts include both continuing and discontinued operations.
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