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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Lonzim | LSE:LZM | London | Ordinary Share | IM00B28CVH58 | ORD 0.01P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 17.75 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMCMB
RNS Number : 3295Y
Cambria Africa PLC
07 September 2015
Cambria Africa Plc
("Cambria" or the "Company")
Results for the six months ending 28 February 2015
Delayed by extenuating circumstances, Cambria Africa Plc (AIM: CMB) announces its six months results for the period ending 28 February 2015 (the "Period").
As the Company has now published both its audited 2014 Full Year Results for the twelve months ended 31 August 2014, and its 2015 Interim Results for the six months ended 28 February 2015, the Company has requested for its shares to be readmitted to trading and it is expected that this will happen tomorrow, 8 September 2015.
Following the investment in the Company by Ventures Africa Limited ("VAL") in April 2015 and the resultant changes to the board of directors, considerable time and resources have been invested in improving the financial reporting functions of the Company. The board is confident that the previous factors causing delays in the publication of results have been satisfactorily addressed ensuring future results will be published timeously.
All references to continuing operations relate to the Group's Payserv Africa and Millchem Holdings investments and head office activities.
Key events for the period were:
-- On 21 October 2014 the Group disposed of its 100% interest in Lonzim Hotel Holdings Limited ("the Leopard Rock Hotel Group"), the owner of the Leopard Rock Hotel and related entities, for a total consideration of US$2.5 million. The related write down of the Company's investment in the Leopard Hotel Group to its net realisable value has been recorded in the results for the year ended 31 August 2014. Accordingly, the Leopard Rock Hotel Group had no material impact on the financial performance of the group for the period.
-- The Company's only remaining assets are Payserv Africa ("Payserv") and Millchem Holdings ("Millchem").
-- The board is of the view that the remaining assets provide significant value creation opportunities to Cambria and its shareholders.
-- We are now focussed on:
o Rationalising and simplifying the head office function including head office roles, responsibilities and reporting lines. An aggressive reduction in overheads has been accelerated following the investment by VAL in April 2015;
o Restoring the momentum lost in Millchem by re-establishing key supplier and customer relationships and performing a critical financial and operational analysis of the underlying subsidiaries including Millchem Zambia;
o Accelerating the development of Payserv Zambia to achieve breakeven and profitability; and
o Further enhancing the value of Payserv by replicating its successful technology platforms, products and services in the rest of Sub-Saharan Africa.
Results summary:
-- During the period, Payserv and Millchem combined, grew revenues and gross profit by 33% and 26% year-on-year, respectively.
-- Cambria's central costs were 4% higher than the equivalent period last year mainly as a result of US$0.6 million legal fees incurred, US$0.5million of which related to the Lonzim Air litigation. As noted in the 31 August 2014 results announcement, an aggressive cost reduction and central overhead restructuring have been implemented after the reporting period.
-- Cambria's EBITDA loss from continuing operations for the period was US$1.1 million (2014: US$1.2 million).
-- The Group recorded a loss from continuing operations of US$1.8 million for the period (2014: US$2.2 million). The loss from discontinued operations totalled US$0.5 million, reflecting legal costs incurred on the Lonzim Air litigation.
Audit opinion in respect of year ended 31 August 2014
The Company's auditors, Baker Tilly Isle of Man LLC, have issued their opinion on the Group's financial statements for the year ended 31 August 2014. The audit was conducted in accordance with International Standards On Auditing (UK and Ireland). They have issued an unmodified audit opinion.
The Group, which at 31 August 2014 had net liabilities of $1.24m and reported an operating loss of $4.25m for the year, has external borrowings which mature during 2016. $5.1 million is due for repayment in April 2016 and a further $2 million is due for repayment in July 2016. Although the directors are taking steps to refinance these loans, material uncertainty exists which may cast significant doubt about the Group's ability to continue as a going concern. Whilst the full year results for the year ended 31 August 2014 have been prepared on the going concern basis, the audit opinion contains an emphasis of matter regarding the existence of the material uncertainty.
Working Capital
On 3 September 2015 the Company concluded a settlement agreement with Lonrho with respect to the claims and counterclaims ("the Claims") between the parties, in terms of which the Company will receive US$4.752 million in full and final settlement of the Claims. After outstanding litigation and other associated costs, the net proceeds are estimated to be US$3.5 million.
Taking account the external borrowings mentioned above, the Company is therefore expected to have sufficient working capital until April 2016. The Company's Board is however confident that it will be able to refinance or raise additional finances to cover the contractual debt obligations before they become due.
Changes to the board
The following changes to the board of directors occurred during the period under review and up to the date of this report:
Director resignations:
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Name Ex-position/designation Date
Paul Turner Non-executive director 6 May 2015
Edzo Wisman CEO 13 July 2015
Ian Perkins Chairman and non-executive
director 14 July 2015
Director appointments:
Name Position/designation Date
Samir Shasha CEO 3 June 2015
Josephine Petra Watenphul CFO 17 June 2015
Dipak Champaklal Pandya Non-executive director 26 June 2015
Paul Turner Chairman and non-executive
director 9 July 2015
Mr Shasha, was appointed as director on 3 June 2015 following the VAL subscription. He was nominated by the board and appointed as CEO with effect from 3 August 2015.
About Cambria Africa Plc
Cambria Africa Plc, quoted on the AIM market of the London Stock Exchange, is a long term, active investment company, investing primarily in Southern Africa.
Contacts
Cambria Africa Plc www.cambriaafrica.com
+44 (0) 781 3919
Samir Shasha 988
+41 (0) 79 9085
Josie Watenphul 430
WH Ireland Limited www.wh-ireland.co.uk
+44 (0) 20 7220
James Joyce / Mark Leonard 1666
Chief Executive's Review
Introduction
Having been appointed a director in June 2015 and assuming the CEO role with effect from 3 August 2015, this, together with my report on the results for the year ended 31 August 2014, are my first reports to shareholders albeit almost 6 months after the period under review. With a significant cash equity investment through VAL's subscription in April 2015, my interests as CEO are aligned with that of shareholders. Shareholders of Cambria have suffered a tremendous loss of value in their investment in the Company. It is my aim to guide the Company back to profitability and restore shareholder value.
In addition to the aforementioned asset disposals Cambria has undergone a significant restructuring in the last few months whereby the Company's central overheads have been reduced to be fit-for-purpose. In addition, the Group's financial position has been significantly strengthened following the settlement of the legal dispute with Lonrho.
Despite the diminished relevance of the historical results and management overhaul following VAL's investment in April 2015, commentary on the results for the interim period ended 28 February 2015 is provided. These results should be read in conjunction with the commentary to the annual results, also published today.
During the period, revenues and gross profit of the continuing operations of Cambria, being the Payserv and Millchem, were US$5.6m (2014: US$4.2m) and US$2.9m (2014: US$2.3m) respectively, representing corresponding decreases of 33% and 26% to the equivalent prior period.
The Company recorded a loss of US$2.2m for the six month period ended 28 February 2015, compared to US$2.7m loss during the first half of 2014. Cambria's loss per share for the period was 2.4c, compared to a loss of 4.1c per share for the same period last year.
Divisional reviews
Payserv Africa
Payserv provides EDI switching services (Paynet), 'payslip' processing (Autopay), and payroll based microfinance loan processing (Tradanet). It is well-established with all three products in Zimbabwe, and recently commenced operations in Zambia with its Paynet and Autopay products.
(US$ '000) 2015 2014 Growth Revenues 2,522 2,185 15% Gross profit 2,384 2,025 18% Gross margin 95% 93% 2% SG&A (1,767) (1,566) 13% EBITDA 617 459 34% EBITDA margin 24% 21% 14%
Paynet provided Electronic Data Interchange (EDI) services to all the banks and building societies in Zimbabwe, as well as to over 1,500 corporates. Paynet processed 8.88 million transactions (2014: 8.21 million) during the period under review, a 8.2% increase.
Autopay provided payroll services to more than 150 customers, processed over 173,000 pay slips (2014: 156,000) during the period under review, a 10.9% increase.
(MORE TO FOLLOW) Dow Jones Newswires
September 07, 2015 11:45 ET (15:45 GMT)
Tradanet had an excellent performance over the period. It processed approximately 81,000 (2014: 50,000) loans, representing a value of US$105.3 (2014: US$63.2m), a 62% increase and a 66.7% increase respectively. At the end of the period the loan book under management stood at US$152.6m (2014: US$112.5m), an increase of 35.6%.
Millchem Holdings
Millchem is a value-added chemicals distributor with a leading market position in Zimbabwe and a fledgling presence in Zambia and Malawi.
US$ '000 2015 2014 Growth Revenues 3,104 1,995 56% Gross profit 495 317 56% Gross margin 16% 16% 0% SG&A (973) (755) 29% EBITDA (478) (438) (9%) EBITDA margin (15%) (22)% (32)%
Despite the challenging and uncertain business environment during the year, Millchem grew revenue by a remarkable 56%.
Overheads were negatively impacted by the expansion and investment in establishing Millchem Zambia and Millchem Malawi. Millchem Malawi has been closed after the end of the period while Millchem Zambia is in the process of being disposed of.
As highlighted in the annual results announcement, establishing Millchem as a profitable unit is an important priority. The key focus areas will be:
o Strengthening the executive leadership team following departure of senior executives;
o Rebuilding relationships with key customers;
o Re-establishing credit lines with key suppliers; and
o Streamlining overheads and trading efficiencies.
Discontinued operations and central costs
The Leopard Rock Hotel Group
On 21 October 2014 the group disposed of its 100% interest in the Leopard Rock Hotel Group, for a total consideration of US$2.5 million. The related write down of the Company's investment in the Leopard Rock Hotel Group's to its net realisable value has been recorded in the results for the year 31 August 2014. Accordingly, the Leopard Rock Hotel Group had no material impact on the financial performance of the group for the period.
LonZim Air (B.V.I.) Limited
Through LonZim Air (BVI) Limited Cambria previously owned three aircraft. Over the years a number of disputes arose in relation to these aircraft and certain associated contracts. Cambria has been pursuing the recovery of claims related to these disputes. These amounts relate to, inter alia, maintenance reserve and lease charges and related contractual interest, payment of insurance proceeds, deterioration in market value of the aircraft, and the significantly lower amount the Company was able to obtain through a sale, due to the poor condition the aircraft were found to be in.
LonZim Air incurred US$$0.5 million in operating losses for the period under review, largely related to extra-ordinary legal expenses associated with the above mentioned claims.
Central costs
Cambria incurred US$1.234 million in central costs for the period under review, compared to US$1.183 million last year, an increase of 4.3%.
At the date of this report, central costs have been further reduced to an estimated annual cost of US$0.7 million, significantly lower than the US$3.1 million in respect of the financial year ended 31 August 2014.
As the new CEO of Cambria, I will not be collecting compensation including benefits until such time as the cash flow from the Company's underlying operations supports it.
Events following the end of the period under review
Cancellation of Chemicals & Marketing Company Limited acquisition ("the C&M acquisition")
It was announced on 26 August 2013 that the Company had concluded the acquisition of the entire issued share capital of Malawi chemical distributor Chemicals & Marketing Company Limited ("C&M") and that the related 5.5 million consideration shares ("consideration shares") had been admitted to listing on AIM.
Following a more in-depth understanding of the financial affairs of C&M, the Company and the C&M vendors entered into a Disengagement Agreement in June 2015 in terms of which the parties agreed that the C&M acquisition will be reversed and the parties be restored to their initial positions.
The consideration shares, net of shares sold to satisfy obligations to C&M, will be held as treasury shares.
The Company's subsidiary MillChem Holdings Limited ("MHL"), has provided guarantees to creditors of C&M to the value of US$$0.6 million. C&M has undertaken to release MHL from these guarantees and indemnified MHL for any potential related loss.
VAL equity placement
On 15 February 2015, the Company entered into a Share Subscription Agreement in terms of which VAL agreed to subscribe and the Company agreed to issue, 107,000,000 ordinary shares of GBP0.0001 each at price of 0.85p per share ("the VAL subscription"). The VAL subscription was implemented in April 2015, following shareholder approval. The proceeds from the VAL subscription had by 1 June 2015 been fully expended by the previous management to fund the head office and working capital requirements of the Group.
VAL is beneficially owned by Samir Shasha.
Sale of Millchem Zambia
Millchem has agreed in principle to the sale of the Zambian operations for net asset value estimated to be US$50 000. The rights to the name "Millchem Zambia" are not included in the sale.
Settlement with Lonrho
On 3 September 2015, the Company entered into a Settlement Agreement with Lonrho Limited. We expect a net inflow of US$3.5 million which will be used to reduce debt and support the operating companies.
Strategy going forward and closing
The Company is being focused on creating value for shareholders through its investments in Millchem and Payserv. In addition, the Board is in the process of formulating its investment strategy to implement strategic value-creating acquisitions as appropriate opportunities arise. We will continue to focus on Zimbabwe, which we believe provides the best opportunity for successful investment and growth in the short to medium term.
Mr Samir Shasha
Chief Executive Officer
7 September 2015
Interim consolidated income statement
For the six month period ended 28 February 2015
Unaudited Unaudited Audited
28-Feb-15 28-Feb-14 31-Aug-14
US$'000 US$'000 US$'000
Revenue 5 625 4 180 9 405
Cost of sales (2 746) (1 838) (4 388)
------------------------------------------- ---------- ---------- ----------
Gross profit 2 879 2 342 5 017
Operating costs (3 950) (3 782) (8 513)
Other income 2 4 17
Net losses on disposal on investments
and impairment of assets (162) (774)
------------------------------------------- ---------- ---------- ----------
Operating loss (1 231) (1 436) (4 253)
Finance income 5 2 21
Finance costs (389) (637) (1 128)
------------------------------------------- ---------- ---------- ----------
Net finance costs (384) (635) (1 107)
Loss before tax (1 615) (2 071) (5 360)
Income tax (198) (161) (319)
------------------------------------------- ---------- ---------- ----------
Loss for the period from continuing
operations (1 813) (2 232) (5 679)
Discontinued operations:
Loss for the year from discontinued
operations, net of tax (468) (448) (10 166)
------------------------------------------- ---------- ---------- ----------
Loss for the year (2 281) (2 680) (15 845)
=========================================== ========== ========== ==========
Attributable to:
Owners of the company (2 459) (2 770) (16 138)
Non-controlling Interests 178 90 293
Loss for the year (2 281) (2 680) (15 845)
Earnings per share
Basic and diluted loss per share
(Cents) (2.4c) (4.1c) (19.5c)
Earnings per share-continuing operations
Basic and diluted loss per share
(Cents) (2.0c) (3.5c) (7.2c)
Cambria Africa Plc
Interim consolidated statement of comprehensive income
For the six month period ended 28 February 2015
Unaudited Unaudited Audited
28-Feb-15 28-Feb-14 31-Aug-14
US$'000 US$'000 US$'000
Loss for the year (2 281) (2 680) (15 845)
Other comprehensive income
Foreign currency translation differences
for overseas operations 3 (18) 12
------------------------------------------- ---------- ---------- ----------
Total comprehensive loss for the year (2 278) (2 698) (15 833)
=========================================== ========== ========== ==========
Attributable to:
Owners (2 456) (2 788) (16 126)
Non-controlling interests 178 90 293
------------------------------------------- ---------- ---------- ----------
Total comprehensive loss for the year (2 278) (2 698) (15 833)
=========================================== ========== ========== ==========
Cambria Africa Plc
(MORE TO FOLLOW) Dow Jones Newswires
September 07, 2015 11:45 ET (15:45 GMT)
Interim consolidated statement of financial position
As at 28 February 2015
Unaudited Unaudited Audited
28-Feb-15 28-Feb-14 31-Aug-14
US$'000 US$'000 US$'000
Property, plant and equipment 2 629 2 742 2 705
Goodwill 717 717 717
Intangible assets 8 85 14
Long term receivables - 1 145 -
---------------------------------- ---------- ---------- ----------
Total non-current assets 3 354 4 689 3 436
Inventories 1 022 809 1 385
Financial assets at fair value
through profit and loss 56 58 66
Trade and other receivables 1 411 2 087 1 408
Cash and cash equivalents 537 1 392 405
Assets held for sale - 16 218 6 469
----------------------------------- ---------- ---------- ----------
Total current assets 3 026 20 564 9 733
----------------------------------- ---------- ---------- ----------
Total assets 6 380 25 253 13 169
=================================== ========== ========== ==========
Equity
Issued share capital 18 17 18
Share premium account 82 629 81 993 82 487
Revaluation reserve 438 77 438
Share based payment reserve 86 86 86
Foreign exchange reserve (10 626) (10 659) (10 629)
Non distributable reserves 1 900 2 241 2 241
Retained losses (78 008) (62 522) (75 890)
----------------------------------- ---------- ---------- ----------
Equity attributable to owners
of the company (3 563) 11 233 (1 249)
Non-controlling interests 6 (2) 9
----------------------------------- ---------- ---------- ----------
Total equity (3 557) 11 231 (1 240)
=================================== ========== ========== ==========
Liabilities
Loans and borrowing 6 676 6 552 6 745
Provisions 178 202 182
Deferred tax liabilities 178 553 178
----------------------------------- ---------- ---------- ----------
Total non-current liabilities 7 032 7 307 7 105
Bank overdraft - 53 -
Current tax liabilities 198 268 269
Loans and borrowings - 611 345
Obligations under finance leases 21 38 3
Trade and other payables 2 686 1 674 2 865
Liabilities held for sale - 4 071 3 822
----------------------------------- ---------- ---------- ----------
Total current liabilities 2 905 6 715 7 304
----------------------------------- ---------- ---------- ----------
Total liabilities 9 937 14 022 14 409
=================================== ========== ========== ==========
Total equity and liabilities 6 380 25 253 13 169
=================================== ========== ========== ==========
Cambria Africa Plc
Interim consolidated statement of changes in equity
For the six month period ended 28 February 2015
Share
Foreign Based
Share Share Revaluation Exchange Payment Retained Non-distributable Non-controlling
Unaudited Capital Premium Reserve Reserve Reserve Earnings Reserve Total Interest Total
Balance at 31
August 2014 18 82 487 438 (10 629) 86 (75 890) 2 241 1 249 9 (1 240)
(Loss)/profit for
the period - - - - - (2 459) - (2 459) 178 (2 281)
Foreign currency
translation
differences for
overseas
operations - - - 3 - - - 3 - 3
------------------- -------- -------- ------------ --------- -------- --------- ------------------ -------- ---------------- --------
Total
comprehensive
loss for
the year - - - 3 - (2 459) - (2 456) 178 (2 278)
Contributions
by/distributions
to owners of the
Company
recognised
directly in
equity
Disposal of entity 341 (341) -
Dividends paid - - - - - - - - (181) (181)
Issue of ordinary
shares (net
of share issue
costs) - 142 - - - - - 142 - 142
Share based
payment
transactions - - - - - - - - -
------------------ -------- -------- ------------ --------- -------- --------- ------------------ -------- ---------------- --------
Total
contributions by
and
distributions - 142 - - - 341 (341) 142 (181) (39)
------------------- -------- -------- ------------ --------- -------- --------- ------------------ -------- ---------------- --------
Balance at 28
February 2015 18 82 629 438 (10 626) 86 (78 008) 1 900 (3 563) 6 (3 557)
=================== ======== ======== ============ ========= ======== ========= ================== ======== ================ ========
Cambria Africa Plc
Interim consolidated statement of changes in equity
For the six month period ended 28 February 2014
Share
Foreign Based
Share Share Revaluation Exchange Payment Retained Non-distributable Non-controlling
Unaudited Capital Premium Reserve Reserve Reserve Earnings Reserve Total Interest Total
Balance at 31 10
August 2013 12 78 798 77 (10 641) 86 (59 752) 2 241 10 821 (80) 741
(Loss)/profit for (2
the period - - - - - (2 770) - (2 770) 90 680)
Foreign currency
translation
differences for
overseas
operations - - - (18) - - - (18) - (18)
------------------- -------- -------- ------------ --------- -------- --------- ------------------ -------- ---------------- ------
Total
comprehensive
loss for (2
the year - - - (18) - (2 770) - (2 788) 90 698)
Contributions
by/distributions
to owners of the
Company
recognised
directly in
equity
Dividends paid - - - - - - - - (12) (12)
Issue of ordinary
shares (net
of share issue
costs) 5 3 195 - - - - - 3 200 - 3 200
Share based
payment
transactions - - - - - - - - -
------------------ -------- -------- ------------ --------- -------- --------- ------------------ -------- ---------------- ------
Total
contributions by
and distributions 5 3 195 - - - - - 3 200 (12) 3 188
------------------- -------- -------- ------------ --------- -------- --------- ------------------ -------- ---------------- ------
Balance at 28 11
February 2014 17 81 993 77 (10 659) 86 (62 522) 2 241 11 233 (2) 231
=================== ======== ======== ============ ========= ======== ========= ================== ======== ================ ======
Cambria Africa Plc
Interim consolidated statement of cash flows
(MORE TO FOLLOW) Dow Jones Newswires
September 07, 2015 11:45 ET (15:45 GMT)
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