ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for charts Register for streaming realtime charts, analysis tools, and prices.

MASA Masawara

24.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Masawara LSE:MASA London Ordinary Share JE00B42XFD25 ORD USD0.01
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 24.00 23.00 25.00 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Masawara Plc Half-year Report (3015Q)

11/09/2017 7:00am

UK Regulatory


Masawara (LSE:MASA)
Historical Stock Chart


From Mar 2019 to Mar 2024

Click Here for more Masawara Charts.

TIDMMASA

RNS Number : 3015Q

Masawara Plc

11 September 2017

11 September 2017

Masawara Plc ("Masawara", the "Company" or the "Group")

Unaudited results for the six months ended 30 June 2017

Masawara, an investment company focused on acquiring interests in companies based in Zimbabwe and the southern African region, is pleased to announce its unaudited results for the six months ended 30 June 2017.

The Company's interim financial statements for the half year ended 30 June 2017 may be viewed on, or downloaded from, the Company's website at www.masawara.com.

Contact details

Masawara Plc

(Masawara Zimbabwe (Private) Limited, the Company's Investment Advisor in Zimbabwe)

Osbourne Majuru/Munashe Nyengerai

+263 4 751805

Cenkos Securities plc (Nominated adviser and broker)

Nicholas Wells/Elizabeth Bowman/Harry Hargreaves

+44 20 7397 8900

Financial review for the six months ended 30 June 2017

The Directors present the interim unaudited results for the six-month period ended 30 June 2017.

Performance

The Group achieved a profit after tax ("PAT") of $3.6 million for the half year ended 30 June 2017 (June 2016: $2.3 million). During the current six month period the financial performance of Lion Assurance Company Limited ("LAC") has been presented under discontinued operations. LAC was classified as a disposal group held for sale on 31 December 2016. The agreement to dispose the Group's interest in LAC was entered into on 22 May 2017 and the transaction was closed on 31 August 2017. LAC made a PAT of $0.51 million during the current six month period (June 2016: $0.56 million).

Group's performance by segment

Masawara Plc classifies the Group's business units into different clusters i.e. insurance, hotels, agrochemicals, property (Joina City) and technology clusters for the purpose of monitoring the operating results of business units and resource allocation to business units. The following shows the Group's performance by segment.

Insurance

Profit from continuing operations of the insurance cluster was $6.2 million for the six months ended 30 June 2017 (June 2016: $6.2 million). The improved performance of Botswana Insurance Company Limited and Grand Reinsurance Company (Private) Limited was offset by the decline in performance of the Zimnat Life Assurance Group.

 
 Profit after tax                                                US$'000      US$'000 
                                                               June 2017    June 2016 
-----------------------------------------------------------  -----------  ----------- 
 Botswana Insurance Company Limited                                1,390          915 
 Zimnat Lion Insurance Company Limited (Zimbabwe)                    825          897 
 Zimnat Life Assurance Group (Zimbabwe)                            1,665        2,729 
 Grande Reinsurance Company (Zimbabwe)                             1,505          777 
 Minerva Risk Advisors Private Limited (Zimbabwe)                    778          878 
                                                             -----------  ----------- 
 Profit after tax from continuing operations                       6,163        6,196 
 Discontinued operations: Lion Assurance Company (Uganda)            512          562 
                                                             -----------  ----------- 
 Profit after tax                                                  6,675        6,758 
                                                             -----------  ----------- 
 
 
 

For the companies operating in Botswana and Uganda, the results in their functional currencies of Botswana Pula (BWP) and Ugandan Shillings (UGX) were as follows:

 
 Profit after tax                      BWP'000   BWP'000   Growth/ (Decline) 
                                          2017      2016 
------------------------------------  --------  --------  ------------------ 
 Botswana Insurance Company Limited     14,291    10,041                 42% 
 
 
 Profit after tax                     UGX'000     UGX'000   Growth 
                                         2017        2016 
---------------------------------  ----------  ----------  ------- 
 Lion Assurance Company (Uganda)    1,940,300   1,899,907       2% 
 

The key performance ratios of the insurance businesses as at year end were as follows:

 
                                     Claims ratio 2017   Claims ratio 2016   Combined ratio 2017   Combined ratio 2016 
----------------------------------  ------------------  ------------------  --------------------  -------------------- 
 Botswana Insurance Company 
  Limited                                          46%                 55%                   82%                   93% 
 Zimnat Lion Insurance Company 
  Limited (Zimbabwe)                               50%                 42%                   93%                   84% 
 Zimnat Life Assurance Company 
  (Zimbabwe)                                       23%                 25%                   81%                   70% 
 Grande Reinsurance Company 
  (Zimbabwe)                                       23%                 22%                   70%                   73% 
 Lion Assurance Company (Uganda)                   33%                 30%                   69%                   84% 
 

The claims and combined ratios are measures of profitability. The claims ratio is calculated by expressing the net claims expense as a percentage of earned premiums. The combined ratio is calculated by taking the sum of the net claims expense and operating expenses and dividing them by earned premium.

Hotels

The performance of Cresta Zimbabwe improved by $0.2 million for the six month period ended 30 June 2017 when compared to the same period last year as a result of cost reduction initiatives. Occupancy for the current six month period (52%) was static when compared to prior year and revenue per available room (RevPar) declined from $37 during the prior half year to $33 as a result of continuing price wars in the industry. The Group's share of the performance of Cresta Marakanelo declined by $0.2 million due to a 7% reduction in occupancy.

 
 Profit/ (loss) after tax                                        US$'000      US$'000 
                                                               June 2017    June 2016 
-----------------------------------------------------------  -----------  ----------- 
 Cresta Hotels (Private) Limited (Zimbabwe)                         (15)        (232) 
 Group's 35% of Cresta Marakanelo Limited Profit after tax           237          456 
                                                             -----------  ----------- 
                                                                     222          224 
                                                             -----------  ----------- 
 
 Cresta Marakanelo Limited (Botswana and Zambia)                     677        1,303 
 
 
 Profit after tax                                      BWP'000             BWP'000   Growth 
                                                     June 2017           June 2016 
-------------------------------------------------  -----------  ------------------  ------- 
 Cresta Marakanelo Limited (Botswana and Zambia)         8,135               8,808     (8%) 
 

The key performance indicators of the hotel businesses as at year end were as follows:

 
                                             Occupancy June 2017   Occupancy June 2016       RevPAR       RevPAR 
                                                                                          June 2017    June 2016 
------------------------------------------  --------------------  --------------------  -----------  ----------- 
 Cresta Hotels Private Limited (Zimbabwe)                    52%                   52%          $33          $37 
 Cresta Marakanelo (Botswana and Zambia)                     55%                   62%          $52          $54 
 

The occupancy rate refers to the rooms sold during the year expressed as a percentage of the total rooms that were available to sell. Revenue per available room (RevPar) measures the financial performance of the hotel by multiplying the average daily rate charged for a room by the occupancy rate.

Agro chemicals

The agro chemicals segment is comprised of investments in Sable Chemical Industries Limited ("Sable") and Zimbabwe Fertiliser Company Limited ("ZFC"). The Group has a 22.5% interest in ZFC and accounts for it as an associate. The Group has a 50.6% interest in Sable, which is accounted for as a subsidiary.

 
 Profit after tax                         US$'000      US$'000 
                                        June 2017    June 2016 
------------------------------------  -----------  ----------- 
 Sable Chemicals Industries Limited       (1,546)      (1,822) 
 ZFC (Group's 22.5% share)                    244        (577) 
                                      -----------  ----------- 
                                          (1,302)      (2,399) 
                                      -----------  ----------- 
 

Sable commenced production under the full importation model in November 2016. The revenues earned by the business therefore remain depressed resulting in a loss before tax of $1.5 million (30 June 2016: $1.8 million).

Joina City

The key performance indicators of Joina City ("Joina") as at 30 June 2017 were as follows:

 
                Occupancy    Occupancy      Debtors as      Debtors as 
                June 2017    June 2016    % of revenue    % of revenue 
                                                  2017            2016 
------------  -----------  -----------  --------------  -------------- 
 Joina City           54%          60%             38%             28% 
 

The 6% decline in Joina's occupancy was mainly driven by the unit's decision to cancel the lease contracts of non performing tenants. Although the ratio of debtors as a percentage of revenue increased by 10%, this ratio is expected to improve as a result of the unit's strategy which focuses on retaining performing tenants.

Occupancy rate refers to the ratio of leased space compared to the total amount of available space.

Cash flow for the six-month period

The Group recorded a decline in cash and cash equivalents of $0.8 million from 31 December 2016 with cash flows from operations of $7.4 million (30 June 2016 $1.4 million). The decline in cash and cash equivalents was driven by cash utilized in investing activities of $9.3 million. The cash utilised in investing activities was mainly the result of the purchase of financial instruments of $15.4 million. Net cash from financing activities includes proceeds from borrowings of $2.4 million, the repayment of borrowings of $1.5 million and the payment of dividends to non-controlling shareholders amounting to $0.2 million.

Financial position

The total assets of the Group at 30 June 2017 amounted to $313 million (31 December 2016: $288 million). Of these assets $297 million (31 December 2016: $273 million) were attributable to continuing operations. LAC had assets amounting $16 million (31 December 2016: $14.8 million) that were classified as held for sale.

The total liabilities of the Group amounted to $205 million (31 December 2016: $185 million). Of these liabilities $195 million (31 December 2016: $176 million) were attributable to continuing operations. LAC had liabilities amounting to $10.3 million (31 December 2016: $9.4 million) that were classified as held for sale.

The net asset value per share attributable to equity holders of the parent as at 30 June 2017 was $0.65 (31 December 2016: $0.63).

Principal risks and uncertainties

The Group's business activities together with the factors likely to affect its future development, performance and position are set out below.

The principal risks and uncertainties affecting the business relate to the political and economic environment of Zimbabwe, where its investments are predominantly held. There is a further risk that investments made by the Group will not result in the originally envisaged cash generation or capital appreciation. This risk is managed by the careful evaluation of all proposed investments, with detailed due diligence work being undertaken, before any investments are made and ongoing monitoring of existing investments.

The Group's liquidity risk was affected by exchange control regulations put in place by the Reserve Bank of Zimbabwe during the year under review. In terms of Exchange Control Operational Guide 8, a foreign payments priority list has to be followed when making foreign payments. Any foreign payments that are made by Zimbabwean companies are ranked based on the RBZ prioritization criteria.

Going concern

Management have prepared cash flow forecasts indicating that there is adequate operating cash for the period to December 2018. The Directors reviewed the cash flow forecasts prepared by management when assessing the ability of the Group to continue operating as a going concern. Based on the review of the Group's cash flow forecasts, the Directors believe that the Group will have sufficient resources to continue to trade as a going concern for a period of at least 12 months from the date of approval of these financial statements and accordingly, the financial statements have been prepared on the going concern basis.

Unaudited interim consolidated statement of comprehensive income for the six months ended 30 June 2017

 
                                                                  June 2017     June 2016 
                                                              -------------  ------------ 
                                                                    Unaudited Unaudited 
                                                              --------------------------- 
                                                                   US$ '000      US$ '000 
 INCOME 
 Gross insurance premium revenue                                     42,925        41,459 
 Insurance premium ceded to reinsurers on insurance 
  contracts                                                        (14,855)      (14,789) 
------------------------------------------------------------  -------------  ------------ 
 Net insurance premium revenue                                       28,070        26,670 
 Fees and commission income                                           9,884        10,325 
 Hotel revenue                                                        6,254         6,697 
 Manufacturing revenue                                                6,402         4,133 
 Rental income from investment properties                             1,591         1,422 
------------------------------------------------------------  -------------  ------------ 
 Net total revenue                                                   52,201        49,247 
 
 Investment income                                                    3,007         2,219 
 Realised and unrealized gains                                        4,901             - 
 Unwinding of financial guarantee - Telerix Communications 
  (Private) Limited                                                       -           231 
 Other operating income                                                 823         1,599 
------------------------------------------------------------  -------------  ------------ 
 Total other income                                                   8,731         4,049 
 
 EXPENSES 
 Insurance claims and loss adjustment expenses                     (23,875)      (13,629) 
 Insurance claims and loss adjustment expenses 
  recovered from insurers                                             5,609           849 
------------------------------------------------------------  -------------  ------------ 
 Net insurance claims                                              (18,266)      (12,780) 
 Realised and unrealized losses                                       (215)         (166) 
 Expenses for the acquisition of insurance contracts                (6,391)       (5,307) 
 Hotel cost of sales                                                (2,476)       (2,591) 
 Manufacturing cost of sales                                        (4,854)       (3,455) 
 Property expenses                                                    (920)         (804) 
 Operating and administrative expenses                             (22,094)      (22,466) 
 Total net insurance claims and operating expenses                 (55,216)      (47,569) 
 
 Finance costs                                                      (1,542)       (1,933) 
------------------------------------------------------------  -------------  ------------ 
 Profit before share of profit of associates 
  and tax                                                             4,174         3,794 
 Share of profit of associates                                          437            45 
------------------------------------------------------------  -------------  ------------ 
 Profit before tax                                                    4,611         3,839 
 Income tax expense                                                 (1,479)       (1,564) 
------------------------------------------------------------  -------------  ------------ 
 Profit from continuing operations                                    3,132         2,275 
 Profit from discontinued operations                                    512             - 
-----------------------------------------------------------   -------------  ------------ 
 Profit for the period                                                3,644         2,275 
------------------------------------------------------------  -------------  ------------ 
 
 
 Profit for the year attributable to: 
 Equity holders of the parent                                1,986        2,104 
 Non-controlling interest                                    1,658          171 
--------------------------------------------------  --------------  ----------- 
 Profit for the period                                       3,644        2,275 
--------------------------------------------------  --------------  ----------- 
 
 Earnings per share 
 Basic and diluted earnings per share                    0.2 cents    0.2 cents 
 
                                                         June 2017    June 2016 
                                                    --------------  ----------- 
                                                          Unaudited Unaudited 
                                                    --------------------------- 
                                                           US$'000      US$'000 
 
 Profit for the period                                       3,644        2,275 
 
 Other comprehensive income, net of tax: 
 Items that may be subsequently reclassified 
  to profit or loss 
 Exchange differences on translation of foreign 
  operations                                                 1,438          317 
 Change in value of available-for-sale financial 
  assets                                                         -         (11) 
--------------------------------------------------  --------------  ----------- 
                                                             5,082          306 
 
 Total comprehensive income for the period                   5,082        2,581 
--------------------------------------------------  --------------  ----------- 
 
 Total comprehensive income attributable to: 
 Equity holders of parent                                    2,936        2,334 
 Non-controlling interest                                    2,146          247 
--------------------------------------------------  --------------  ----------- 
 Total comprehensive income for the period                   5,082        2,581 
--------------------------------------------------  --------------  ----------- 
 

Interim consolidated statement of financial position as at 30 June 2017

 
                                                June 2017   December 2016 
                                               ----------  -------------- 
                                                Unaudited         Audited 
                                               ----------  -------------- 
                                                  US$'000         US$'000 
 ASSETS 
 Property, plant and equipment                     33,900          34,148 
 Intangible assets                                  3,139           3,224 
 Investment properties                             49,931          49,892 
 Investment in associates and 
  joint ventures                                   16,003          15,389 
 Financial assets                                  59,594          47,755 
 Deferred tax asset                                 2,009           1,080 
---------------------------------------------  ----------  -------------- 
 Total non-current assets                         164,576         151,488 
---------------------------------------------  ----------  -------------- 
 Inventory                                          7,727           7,750 
 Reinsurance assets                                21,460          17,213 
 Insurance receivables                              9,513          12,858 
 Deferred acquisition costs                         3,319           3,841 
 Trade and other receivables                       62,881          51,804 
 Cash and cash equivalents                         27,353          28,165 
---------------------------------------------  ----------  -------------- 
 Total current assets                             132,253         121,631 
 Assets for disposal group classified 
  as held for sale                                 16,030          14,892 
--------------------------------------------   ----------  -------------- 
 Total assets                                     312,859         288,011 
---------------------------------------------  ----------  -------------- 
 EQUITY 
 Share capital                                      1,238           1,238 
 Share premium                                     80,433          80,433 
 Treasury shares                                     (37)            (37) 
 Group restructuring reserve                      (9,283)         (9,283) 
 Other reserves                                   (2,512)         (3,462) 
 Non-distributable reserve                          (261)            (27) 
 Revaluation reserve                                  402             402 
 Retained earnings                                 10,589           8,334 
---------------------------------------------  ----------  -------------- 
 Equity attributable to owners 
  of the parent                                    80,569          77,598 
 Non-controlling interest                          27,660          25,738 
---------------------------------------------  ----------  -------------- 
 Total equity                                     108,229         103,336 
--------------------------------------------   ----------  -------------- 
 LIABILITIES 
 Financial liabilities                              9,954          13,913 
 Deferred tax liabilities                           8,506           7,280 
 Investment contract liabilities                   46,994          39,730 
---------------------------------------------  ----------  -------------- 
 Total non-current liabilities                     65,454          60,923 
---------------------------------------------  ----------  -------------- 
 Financial liabilities                             20,228          17,761 
 Insurance contract liabilities                    51,926          42,468 
 Deferred income                                    1,640           1,435 
 Income tax liability                                 962             598 
 Insurance payables                                 5,090           3,039 
 Provisions                                         1,147           2,183 
 Trade and other payables                          47,806          46,827 
---------------------------------------------  ----------  -------------- 
 Total current liabilities                        128,799         114,311 
 Liabilities for disposal group classified 
  as held for sale                                 10,377           9,441 
--------------------------------------------   ----------  -------------- 
 Total liabilities                                204,630         184,675 
---------------------------------------------  ----------  -------------- 
 Total equity and liabilities                     312,859         288,011 
---------------------------------------------  ----------  -------------- 
 

MASAWARA PLC

Unaudited interim consolidated statement of changes in equity for the six months ended 30 June 2017

 
            Attributable to the owners of the parent 
                               US$ '000 
      ----  ---------------------------------------------    ----  ------ 
 
 
 
                                                                                                                                      Equity 
                                            Treasury                                                                            attributable 
                   Share     Share                                   Group     Other             Non   Revaluation   Retained             to 
                                              Shares                                                                                  owners 
                 Capital   Premium                             Restructure   Capital   Distributable       Reserve    Profit/         of the   Non-controlling      Total 
                                                                   Reserve   Reserve        Reserves                   (Loss)         parent          Interest     Equity 
 Balance at 1 
  January 2016 
  (audited)        1,235    80,102             (232)               (9,283)   (3,999)             370             -      7,205         75,398            24,221     99,619 
 Profit for the 
  period               -         -                 -                     -         -               -             -      2,104          2,104               171      2,275 
 Other 
  comprehensive 
  income 
  for the period       -         -                 -                     -       281               -             -          -            281                75        356 
----------------  ------  --------  ----------------  --------------------  --------  --------------  ------------  ---------  -------------  ----------------  --------- 
 Total 
  comprehensive 
  income 
  for the period       -         -                 -                     -       281               -             -      2,104          2,385               246      2,631 
----------------  ------  --------  ----------------  --------------------  --------  --------------  ------------  ---------  -------------  ----------------  --------- 
 Sale of share 
  of Botswana 
  Insurance 
  company to 
  minority 
  interests            -         -                 -                     -         -           (483)         (241)      1,885          1,161             1,441      2,602 
 Reserve 
  transfer             -         -                 -                     -         -              48             -       (48)              -                 -          - 
 Dividend paid         -         -                 -                     -         -               -             -          -              -             (880)      (880) 
----------------  ------  --------  ----------------  --------------------  --------  --------------  ------------  ---------  -------------  ----------------  --------- 
 Balance at 30 
  June 2016 
  (unaudited)      1,235    80,102             (232)               (9,283)   (3,718)            (65)         (241)     11,146         78,944            25,028    103,972 
----------------  ------  --------  ----------------  --------------------  --------  --------------  ------------  ---------  -------------  ----------------  --------- 
 
 
 Balance at 1 
  January 2017 
  (audited)        1,238    80,433              (37)               (9,283)   (3,462)            (27)           402      8,334         77,598            25,738    103,336 
 Profit for the 
  period               -         -                 -                     -         -               -             -      1,986          1,986             1,658      3,644 
 Other 
  comprehensive 
  income 
  for the period       -         -                 -                     -       950               -             -          -            950               488      1,438 
----------------  ------  --------  ----------------  --------------------  --------  --------------  ------------  ---------  -------------  ----------------  --------- 
 Total 
  comprehensive 
  income 
  for the period       -         -                 -                     -       950               -             -      1,986          2,936             2,146      5,082 
----------------  ------  --------  ----------------  --------------------  --------  --------------  ------------  ---------  -------------  ----------------  --------- 
 Reserve 
  transfers            -         -                 -                     -         -           (234)             -        269             35                 -         35 
 Dividend paid         -         -                 -                     -         -               -             -          -              -             (224)      (224) 
 Balance at 30 
  June 2017 
  (unaudited)      1,238    80,433              (37)               (9,283)   (2,512)           (261)           402     10,589         80,569            27,660    108,229 
----------------  ------  --------  ----------------  --------------------  --------  --------------  ------------  ---------  -------------  ----------------  --------- 
 
 

Unaudited consolidated statement of cash flows for the six months ended 30 June 2017

 
 
                                                                  June 2017        June 2016 
                                                            ---------------  --------------- 
                                                     Notes             Unaudited Unaudited 
                                                            -------------------------------- 
                                                                    US$'000          US$'000 
 
 CASH FLOWS FROM OPERATING ACTIVITIES 
 Cash generated from operations                        4              6,726              934 
 Investment income received                                           3,265            2,769 
 Finance costs paid                                                 (1,743)          (1,826) 
 Income tax paid                                                      (861)            (509) 
--------------------------------------------------  ------  ---------------  --------------- 
 Net cash flows generated from operating 
  activities                                                          7,387            1,368 
--------------------------------------------------  ------  ---------------  --------------- 
 
   CASH FLOWS FROM INVESTING ACTIVITIES 
 Purchase of property, plant and equipment                            (568)            (634) 
 Purchase of intangible assets                                         (46)             (10) 
 Additions to investment property                                       (5)          (3,502) 
 Purchase of financial instruments                                 (15,427)         (10,939) 
 Proceeds from disposal of financial instruments                      6,688           13,119 
 Loans granted to investee companies                                      -            (140) 
 Proceeds from repayment of loans granted 
  to related parties                                                      -              100 
 Proceeds on sale of interest in subsidiary                               -            2,602 
--------------------------------------------------  ------  ---------------  --------------- 
 Net cash flows (used in)/generated from 
  investing activities                                              (9,358)              596 
--------------------------------------------------  ------  ---------------  --------------- 
 
   CASH FLOWS FROM FINANCING ACTIVITIES 
 Proceeds from borrowings                                             2,360            1,875 
 Repayment of borrowings                                            (1,459)                - 
 Dividend paid                                                        (224)            (880) 
--------------------------------------------------  ------  ---------------  --------------- 
 Net cash flows generated from financing 
  activities                                                            677              995 
--------------------------------------------------  ------  ---------------  --------------- 
 
 Net (decrease)/increase in cash and cash 
  equivalents                                                       (1,294)            2,959 
 Net effect of exchange rate movements on 
  cash and cash equivalents                                             482              231 
 Cash and cash equivalents at 1 January                              28,165           25,912 
--------------------------------------------------  ------  ---------------  --------------- 
 Cash and cash equivalents at 30 June (unaudited)                    27,353           29,102 
--------------------------------------------------  ------  ---------------  --------------- 
 

Notes to the interim financial statements for the six months ended 30 June 2017

   1.            Corporate information 

Masawara Plc ("the Company") is an investment company incorporated and domiciled in Jersey, Channel Islands, whose shares are publicly traded on the London Stock Exchange's AIM. The company is managed in Jersey and its registered office is located at Queensway House, Hilgrove Street in St Helier, Jersey.

The investment portfolio of the Company includes Joina City (a multi-purpose property situated in Harare that earns rental income), Masawara Mauritius Limited (a diversified investment company that holds investments in insurance, agro-chemical and hospitality businesses), iWayAfrica Zimbabwe (Private) Limited (a broadband internet service company) and Telerix Communications (Private) Limited (a company that has a license that allows it to construct, operate and maintain a public data internet access and Voice Over IP network in Zimbabwe).

The Group financial statements consolidate those of the Company, its subsidiaries and the Group's interest in associates (together referred to as "the Group").

   2.            Basis of preparation 

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRSIC) as adopted by the European Union (EU), and in compliance with the requirements of the Companies (Jersey) Law 1991.

The consolidated interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 December 2016 and any publications made by Masawara Plc during the interim period. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

The consolidated financial statements have been prepared on a historical cost basis, except for property, available-for-sale financial assets, and financial assets that have been measured at fair value. The consolidated financial statements are presented in United States Dollars and all values are rounded to the nearest thousand dollars ($ '000), except when otherwise indicated.

Going concern

Management have prepared cash flow forecasts indicating that there is adequate operating cash for the period to December 2018. The Directors reviewed the cash flow forecasts prepared by management when assessing the ability of the Group to continue operating as a going concern. Based on the review of the Group's cash flow forecasts, the Directors believe that the Group will have sufficient resources to continue to trade as a going concern for a period of at least 12 months from the date of approval of these financial statements and accordingly, the financial statements have been prepared on the going concern basis.

   3             Significant events 

The following significant event that has a material effect on the financial statements of the Group took place during the six months period ended 30 June 2017.

   3.1         Disposal Group held for sale and discontinued operations 

The assets and liabilities related to Lion Assurance Company Limited ("LAC") were classified as held for sale on 31 December 2016. The share purchase agreement for the sale of the Group's investment in LAC was entered into on 22 May 2017. LAC is part of the Insurance segment. The sale was completed on 31 August 2017. The fair value less costs to dispose exceeds the carrying amount of LAC. In accordance with IFRS 5 Non- Current Assets Held for Sale which requires a disposal group to be measured at the lower of its fair value less costs to dispose or carrying amount, LAC has been measured at its carrying amount. The fair value has been determined in relation to the selling price of LAC. The transaction is at arms-length.

The assets and liabilities of the disposal group classified as held for sale are as follows:

 
                                      June   December 
                                      2017       2016 
                                   US$'000    US$'000 
 Assets 
 Property, plant and equipment         125        125 
 Intangible assets                     179          4 
 Financial assets                    5,856      5,313 
 Reinsurance assets                  3,963      3,700 
 Insurance receivables               4,441      3,846 
 Trade and other receivables           443      1,390 
 Cash and cash equivalents           1,023        514 
                                  --------  --------- 
                                    16,030     14,892 
                                  --------  --------- 
 Liabilities 
 Deferred tax                          433        324 
 Insurance contract liabilities      7,125      6,251 
 Trade and other payables            2,819      2,866 
                                  --------  --------- 
                                    10,377      9,441 
                                  --------  --------- 
 

The analysis of the financial performance of the disposal group held for sale for the six months ended 30 June 2017 is as follows:

 
                                           2017 
                                       US$ '000 
 Statement of comprehensive income 
 
 Income                                   3,620 
 Expenses                               (2,784) 
                                      --------- 
 Profit before tax                          836 
 Income tax expense                       (324) 
                                      --------- 
 Profit after for the year                  512 
                                      --------- 
 
 Statement of cash flows 
 
 Operating cash flows                     1,444 
 Investing cash flows                     (640) 
 Financing cash flows                     (311) 
                                      --------- 
 Total cash flows                         (493) 
                                      --------- 
 
 
 
   4    Cash generated from operating activities 
 
                                                                   June         June 
                                                                   2017         2016 
                                                              unaudited    unaudited 
                                                                US$'000      US$'000 
 Profit from continuing operations                                4,611        3,839 
 Profit from discontinued operations                                512            - 
---------------------------------------------------------   -----------  ----------- 
 Profit before tax                                                5,123        3,839 
 
 Adjustments to reconcile profit before tax to net cash 
  flows from operating activities: 
     Share of profit of associates and joint 
      venture                                                     (437)         (45) 
     Unwinding of a financial guarantee - Telerix 
      Communications                                                  -        (231) 
     Finance income                                             (2,240)      (2,861) 
     Finance cost                                                 1,542        1,933 
     Depreciation                                                   907        1,127 
     Amortization of intangible assets                              147          352 
     Loss on disposal of investments                                  -           65 
     Net realized and unrealized (gains)/losses                 (5,349)          166 
     Exchange losses                                                 59            - 
     Profit from discontinued operation                           (512)            - 
 Working capital adjustments: 
     Decrease in inventory                                           22        3,299 
     (Increase)/ decrease in reinsurance assets                 (4,247)          776 
     Decrease/ (increase) in deferred acquisition 
      costs                                                         522      (1,272) 
     Decrease / (increase) in insurance receivables               3,345      (5,087) 
     Increase in trade and other receivables                   (10,893)      (3,940) 
     Increase in loans to directors and employees                 (185)        (441) 
     Increase in insurance contract liabilities                   9,458        4,054 
     Increase in deferred income                                    205          289 
     Increase in insurance payables                               2,051        2,230 
     Decrease in trade and other payables and 
      provisions                                                   (57)      (4,572) 
     Gross change in investment contract liabilities              7,265        1,253 
----------------------------------------------------------  -----------  ----------- 
 Cash generated from operating activities                         6,726          934 
----------------------------------------------------------  -----------  ----------- 
 
   5           Segment information 

The chief operating decision maker i.e. the Investment Advisor's executive committee classifies the Group's business units into different clusters i.e. hotels, insurance, technology, agrochemicals and property (Joina City) for the purpose of monitoring the operating results of business units and resource allocation to business units. Segmentation of business units into different clusters is based on the type of product and service offering by the different companies. There have been no changes to the measurement methods used to determine segment information from those used during the previous year.

 
                                                                                                  IFRS       Total 
                            Joina City     Hotels   Insurance   Agrochemicals     Central   Adjustments       Group 
    Year ended 30 June        US$ '000   US$ '000    US$ '000        US$ '000    US$ '000      US$ '000    US$ '000 
    2017 
    Net insurance premium 
     revenue                         -          -      28,683               -           -         (613)      28,070 
    Fees and commission 
     income                          -          -      10,306               -       1,835       (2,257)       9,884 
    Hotel revenue                    -      5,603           -               -         931         (280)       6,254 
    Manufacturing revenue            -          -           -           6,402           -             -       6,402 
    Rental income from 
     investment properties         899          -         764               -           2          (74)       1,591 
    Total revenue                  899      5,603      39,753           6,402       2,768       (3,224)      52,201 
 
    (Loss)/profit before 
     equity accounted 
     earnings and tax            (148)       (35)       7,479         (1,565)          71       (1,628)       4,174 
    Equity accounted earnings        -          -        (43)             243           -           237         437 
    Segment (loss)/profit 
     from continuing 
     operations                  (148)       (35)       7,436         (1,322)          71       (1,391)       4,611 
    Discontinued 
     operations                      -          -         512               -           -             -         512 
    Segment (loss)/profit 
     before tax                  (148)       (35)       7,948         (1,322)          71       (1,391)       5,123 
 
    As at 30 June 2017 
    Segment assets              31,761     21,438     199,557          27,603     232,436     (215,966)     296,829 
    Disposal group held 
     for sale                        -          -      16,030               -           -             -      16,030 
                           -----------  ---------  ----------  --------------  ----------  ------------  ---------- 
    Total segment assets        31,761     21,438     215,587          27,603     232,436     (215,966)     312,859 
                           -----------  ---------  ----------  --------------  ----------  ------------  ---------- 
 
    Segment liabilities        (8,142)   (10,971)   (138,617)        (25,401)   (117,746)       106,624   (194,253) 
    Disposal group held 
     for sale                        -          -    (10,391)               -           -            14    (10,377) 
                           -----------  ---------  ----------  --------------  ----------  ------------  ---------- 
    Total segment 
     liabilities               (8,142)   (10,971)   (149,008)        (25,401)   (117,746)       106,638   (204,630) 
                           Joina        Hotels      Insurance      Agrochemicals      Technology         Central              IFRS       Total 
                            City                                                                                       Adjustments       Group 
 Six months ended       US$ '000      US$ '000       US$ '000           US$ '000        US$ '000        US$ '000          US$ '000    US$ '000 
 30 
 June 2016 
 
 Net insurance 
  premium 
  revenue                      -             -         26,808                  -               -               -             (138)      26,670 
 Fees and 
  commission 
  income                                     -         11,633                  -                           1,496           (2,804)      10,325 
 Hotel revenue                 -         6,697              -                  -               -               -                 -       6,697 
 Manufacturing 
  revenue                      -             -              -              4,133               -               -                 -       4,133 
 Rental income 
  from investment 
  properties                 825             -            638                  -               -               -              (41)       1,422 
                    ------------  ------------  -------------  -----------------  --------------  --------------  ----------------  ---------- 
 Total revenue               825         6,697         39,079              4,133               -           1,496           (2,983)      48,247 
                    ------------  ------------  -------------  -----------------  --------------  --------------  ----------------  ---------- 
 
 Profit/(loss) 
  before 
  tax and equity 
  accounted 
  earnings                 (247)         (231)          7,775            (1,494)               -           4,355           (6,364)       3,794 
 Equity accounted 
  earnings                     -           521            101              (577)               -               -                 -          45 
 Profit/(loss) 
  before 
  tax                      (247)           290          7,876            (2,071)               -           4,355           (6,364)       3,839 
                    ------------  ------------  -------------  -----------------  --------------  --------------  ----------------  ---------- 
 
  As at 30 June 
  2016 
 
 Segment assets           32,402        31,235        190,255             35,914             282          77,870          (70,144)     297,814 
                    ------------  ------------  -------------  -----------------  --------------  --------------  ----------------  ---------- 
 
 Segment 
  liabilities            (6,695)      (11,143)      (131,313)           (26,334)               -        (43,997)            25,639   (193,843) 
                    ------------  ------------  -------------  -----------------  --------------  --------------  ----------------  ---------- 
 
 
   6          Financial assets fair value hierarchy 

As detailed per the 31 December 2016 annual report, the fair value hierarchy at which a fair value measurement is categorized is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety.

The following table presents the Group's financial assets that are carried at fair value at 30 June 2017 and 31 December 2016:

30 June 2017

 
                                    Level 1    Level 2    Level 3      Total 
                                   US$ '000   US$ '000   US$ '000   US$ '000 
 
 Financial assets at fair value 
  through profit or loss 
 
        *    Equity securities       34,243          -      4,205     38,448 
                                  ---------  ---------  ---------  --------- 
 Total assets                        34,243          -      4,205     38,448 
                                  ---------  ---------  ---------  --------- 
 
 
 31 December 2016                   Level 1    Level 2    Level 3      Total 
                                   US$ '000   US$ '000   US$ '000   US$ '000 
 
 Financial assets at fair value 
  through profit or loss 
 
        *    Equity securities       27,824          -      4,205     32,029 
 Total                               27,824          -      4,205     32,029 
                                  ---------  ---------  ---------  --------- 
 
   7          Events after the reporting period 

The disposal of the Group's investment in Lion Assurance Company Limited was completed on 31 August 2017 and the purchase consideration of $5.6 million has been received by the Group.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR GGUCUBUPMPUU

(END) Dow Jones Newswires

September 11, 2017 02:00 ET (06:00 GMT)

1 Year Masawara Chart

1 Year Masawara Chart

1 Month Masawara Chart

1 Month Masawara Chart

Your Recent History

Delayed Upgrade Clock