Kakuzi Ld Annual Financial Report (4039U)

TIDMKAKU

RNS Number : 4039U

Kakuzi Ld

29 March 2019

KAKUZI PLC

ANNOUNCEMENT OF GROUP RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018

 
       Condensed Consolidated Statement of Profit or Loss 
                 and other Comprehensive Income 
                                       31 December   31 December 
                                              2018          2017 
                                           Shs'000       Shs'000 
 
 Sales                                   3,152,831     2,823,926 
                                       ===========   =========== 
 
 Profit before fair value gain 
  in non-current biological assets 
  and income tax                           610,001       766,324 
 Fair value gain in non-current 
  biological assets                         74,082        82,799 
 
 Profit before income tax                  684,083       849,123 
 Income tax expense                       (202,489)     (257,480) 
                                       -----------   ----------- 
 
 Profit for the year                       481,594       591,643 
 
 Other Comprehensive Income: 
 Items that are not reclassified 
  to profit or loss: 
 Remeasurement of post-employment 
  benefit obligations (net of tax)           3,046         1,735 
 Total comprehensive income                484,640       593,378 
                                       ===========   =========== 
 
                                               Shs           Shs 
 Earnings per share (Shs): 
 Basic and diluted earnings per 
  ordinary share                             24.57         30.19 
 
 
 
           Condensed Consolidated Statement of Cash flows 
                                           31 December   31 December 
                                                  2018          2017 
                                               Shs'000       Shs'000 
 
 Cash and cash equivalents at 
  the beginning of the year                  1,648,749     1,430,576 
                                           -----------   ----------- 
 
 Net cash generated from operating 
  activities                                   361,190       924,954 
 Net cash used in investing activities        (369,462)     (587,801) 
 Net cash used in financing activities        (137,200)     (117,600) 
 Net exchange losses on foreign 
  currency cash & cash equivalent               (2,342)       (1,380) 
                                           -----------   ----------- 
 (Decrease)/increase in cash and 
  cash equivalents                            (147,814)      218,173 
 
 Cash and cash equivalents at 
  the end of the year                        1,500,935     1,648,749 
                                           ===========   =========== 
 
 
 
      Condensed Consolidated Statement of Financial Position 
 
                                     31 December     31 December 
                                            2018            2017 
                                         Shs'000         Shs'000 
 EQUITY 
 Share capital                            98,000          98,000 
 Other reserves                           19,653          16,607 
 Retained earnings                     4,375,423       4,070,229 
 Proposed dividends                      176,400         137,200 
                                  --------------   ------------- 
 Total equity                          4,669,476       4,322,036 
 Non-current 
  liabilities                            881,602         807,190 
                                  --------------   ------------- 
                                       5,551,078       5,129,226 
                                  ==============   ============= 
 REPRESENTED 
  BY 
 Non-current 
  assets                               3,624,125       3,338,922 
 
 Current assets                          815,982         758,455 
 Cash and cash 
  balances                             1,500,935       1,648,749 
 Current liabilities                    (389,964)       (616,900) 
                                  --------------   ------------- 
 Net current 
  assets                               1,926,953       1,790,304 
                                  --------------   ------------- 
                                       5,551,078       5,129,226 
                                  ==============   ============= 
 
 
 
               Condensed Consolidated Statement of 
                        Changes in Equity 
                                      Share      Other   Retained    Proposed       Total 
                                    capital   reserves   earnings   dividends      Equity 
                                    Shs'000    Shs'000    Shs'000     Shs'000     Shs'000 
 
 On 1.1.2018                         98,000     16,607  4,070,229     137,200   4,322,036 
 
 Profit for the 
  year                                    -      3,046    481,594           -     484,640 
 Dividends - final 
  for 2017                                -          -          -    (137,200)   (137,200) 
                  - proposed for 
                   2018                   -          -  (176,400)     176,400           - 
                                   --------  ---------  ---------  ----------   --------- 
 
 On 31.12.2018                       98,000     19,653  4,375,423     176,400   4,669,476 
 
 
 

OVERVIEW:

The results for 2018 reflect a pre-tax profit of Shs 684 million compared to Shs 849 million in 2017. The lower profits are as a result of lower avocado prices achieved, due to a heavily over supplied market in Europe. Macadamia and forestry profits improved over the previous year as a result of increased production from our orchards and a rise in the demand for wood products. Earnings per share was Shs 24.57 in 2018 compared to Shs 30.19 in 2017.

DIVIDEND:

The Directors recommend the payment of a first and final dividend for the financial year 2018 of Shs 9.00 per ordinary share (2017: Shs 7.00) subject to shareholders' approval. The dividend shall be paid on or about 30 June 2019 to the shareholders on the members' register at the close of business on Friday, 31 May 2019.

ANNUAL GENERAL MEETING:

The Annual General Meeting of the Company will be held on Tuesday 14 May 2019 at 12.00 Noon at Nairobi Serena Hotel.

BY ORDER OF THE BOARD

G H MCLEAN

CHAIRMAN

28 MARCH 2019

Deloitte(--)

Deloitte & Touche

Certified Public Accountants (Kenya) Deloitte Place

Waiyaki Way, Muthangari

P.O. Box 40092 - GPO 00100 Nairobi

Kenya

Tel: [phone]

Cell: [phone] Dropping Zone No.92

Email: [e-mail] www.deloitte.com

Tel: [phone]

Cell: [phone] Dropping Zone No.92

Email: [e-mail] www.deloitte.com

INDEPENDENT AUDITORS' REPORT ON THE CONDENSED COSOLIDATED FINANCIAL STATEMENTS

TO THE SHAREHOLDERS OF KAKUZI PLC

Opinion

The accompanying condensed consolidated financial statements of Kakuzi Plc and its subsidiaries (the "Group"), which comprise the condensed consolidated statement of financial position as at 31 December 2018, the condensed consolidated statement of profit or loss and other comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the year then ended, are derived from the audited financial statements of the Group for the year ended 31 December 2018.

In our opinion, the accompanying condensed consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements of the Group, in accordance with the requirements of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulation, 2002 ("the Regulations") as applicable to summary financial statements.

Condensed consolidated financial Statements

The condensed consolidated financial statements do not contain all the disclosures required by International Financial Reporting Standards as applicable to annual financial statements. Reading the condensed consolidated financial statements and the auditors' report thereon, therefore, is not a substitute for reading the audited consolidated financial statements of the Group and the auditors' report thereon.

The audited financial statements and our report thereon

We expressed an unmodified audit opinion on the audited consolidated financial statements in our report dated 28 March 2019. That report also includes the communication of a key audit matter.

Directors' responsibility for the condensed consolidated financial statements

The Directors are responsible for the preparation of the condensed consolidated financial statements in accordance with the requirements of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulation, 2002 Requirements as applicable to condensed financial statements.

Auditors' responsibility

Our responsibility is to express an opinion on whether the condensed consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810 (Revised), Engagements to Report on Summary Financial Statements.

CPA Anne Muraya, Practising certificate No. 1697.

Signing partner responsible for the independent audit

28 March 2019

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March 29, 2019 03:01 ET (07:01 GMT)