GBH FY2013 financial results


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GBH FY2013 financial results

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GBH FY2013 financial results

  1. 1. CHAIRMAN’S STATEMENT DIRECTORS: AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012 G.G.Nhemachena(Chairman),S.P.Bango(DeputyChairperson),W.Tsuroh(ManagingDirector),C.E.Dhlembeu,O.MMoyo, P.C.C.Moyo, P.Munyanyi(Finance),R.Mavengere,T.Kufazvinei*executive Overview applied on raw materials procurement. The anticipated benefits of I hereby present the results for the year ending 31 December 2012 this facility will include increasing capacity utilisation, sales to you. The economic growth for the year was revised down to volumes and overall cost reduction while at the same time 4.4% from an initial 9.3% due to lower than expected outcomes in enhancingmarketcompetitiveness. mining and agricultural sectors. No major financial investment inflows into the country were recorded in the year resulting in Although the rate of economic growth is forecast to be moderate, acuteliquidityshortagesinthethirdquarter. GB Holdings is expects to benefit from the growth in both the agricultural and mining sectors. The company will continue Financial Performance focusing on quality products and technical back up to support its Due to the low liquidity levels in the economy and the gradual turnaround. reduction of working capital facilities experienced throughout the year, turnover at USD5m was 25% below the USD6m recorded in The Board continues to pursue initiatives to raise additional the prior year. Owing to the reasons above, volume sales at 1 228 working capital to augment the USD1 million raised under the metric tonnes were also 4% below same period last year while Distressed and Marginalised Areas Fund (DIMAF) so that a full gross margins fell from 30% in the prior year to 13%. Costs turnaroundisachieved. associated with inadequate funding resulted in administration and operating costs being 3% above same period last year. As a result Dividend a net operating loss of USD2.6million was recorded compared to At a meeting of the Directors held on 26 March 2013, the Board prior year's USD1.2million. The restructuring of current debt considered that given the financial the position of the company it resulted in finance costs being 14% lower than prior year. A net was not prudent to declare a dividend for the year ended 31 inflow from operations of USD133 448 was recorded. Net assets December2012. declined by 33% from USD6.4 million to USD4.3million due to operatinglosses. Directorate Mr. J. Mushayavanhu resigned from the board on 4 December DivisionalPerformance 2012 having served the last four years. We thank him for his RubberDivison contributionandwishhimallthebestinhisnewendeavours. Turnover at USD2.3 million declined by 30% from prior year's turnover of USD3.3million. The division was affected by Appreciation shortages of working capital in the second half resulting in missed I sincerely thank my fellow Directors, Management team, market opportunities and a negative contribution to gross profit of Employees, financiers, suppliers, customers and stakeholders for USD375 000. Volumes of 177 metric tonnes were 28% below theircontinuedsupportforthecompany. prior year's 246 metric tonnes. The division continued to defend its market position despite operating challenges associated with shortagesofadequatefunding. ChemicalsDivision GodfreyGaviroNhemachena The company recorded a decline in sales of 9% at USD2.7million Chairman compared with the USD3 million recorded in the previous year. 26March2013 Despite the competition, the company maintained its customer base. The new product development initiatives for the timber AUDITOR'S STATEMENT industry are still in progress although they were constrained by These financial statements should be read in conjuction with the inadequate funding. The division is also poised to take advantage complete set of financial statements for the year ended 31 oftheenvisagedgrowthintheminingandagriculturalsectors. December 2012, which have been audited by BDO Zimbabwe Chartered Accountants. An unmodified audit opinion has been Outlook issued on the financial statements, however, the auditors have At the Annual General Meeting held last year, shareholders included an emphasis of matter paragraph on going concern in approved that the company proceeds to raise funding using its their report. This is as a result of the recurrent losses by theland and buildings in order to fund the business's requirements. company. The auditor's report on these financial statements isDue to shortages of funding in the local market, this initiative was available for inspection at the company's registered office whichnot concluded as the offers received were not attractive. However isat111DagenhamRoad,Willowvale,Harare.I am happy to report that the company accessed USD1 million from the Distressed and Marginalised Areas Fund (DIMAF) facility with effect from 28 February 2013. These funds have been Statement ofFinancial Position as at 31 December 2012 Statement ofComprehensiveIncome forthe year ended 31 December 2012 AbridgedStatement ofCash flows forthe year ended 31 December 2012 ASSETS 31.12.12 31.12.11 USD USD Non-currentassets Property,plantandequipment 9722792 10372727 Currentassets Inventories 1316424 1507037 Accountsreceivable 932903 1379163 Relatedpartyreceivables - 1681 Bankandcash 142240 24828 2391567 2912709 Total assets 12114 359 13 285436 EQUITYANDLIABILITIES Equity Sharecapital 536588 536588 Shareoptionsreserve 19200 19200 Nondistributablereserve 9464397 9464397 Accumulatedloss (5748556) (3641620) 4271629 6378565 Non-currentliabilities Deferredtax 1846311 2501648 Longtermloans 330000 - 2176311 2501648 Currentliabilites Shorttermloans 192500 340000 Accountspayable 5381941 3775866 Bankoverdraft 91978 289357 5666419 4405223 Total liabilities 7842730 6906871 Total equityandliabilities 12114 359 13 285436 31.12.12 31.12.11 USD USD Totalrevenue 5067696 6321237 Grossprofit 684310 1914139 Lossfromoperations (2601680) (1234576) Netfinancingcost (160593) (186176) Lossbefore tax (2762273) (1420752) Incometaxcredit 655337 201685 Lossaftertax (2 106936) (1219067) Othercomprehensiveincome - - Total comprehensive income for theyear (2 106936) (1219 067) Basicearningspershare(cents) (0.004) (0.002) Dilutedearningspershare(cents) (0.004) (0.002) Headlineearningspershare(cents) (0.004) (0.002) 31.12.12 31.12.11 USD USD Netcashflowfromoperations 133448 (224728) Netcashoutflowsfrominvestingactivities (1174) (2330) Netcashinflowsfromfinancingactivities 182499 (83250) Netcashinflows/(outflow) 314773 (310308) Statement ofChangesin Equity for the year ended 31 December 2012 Notes to the audited financial statements for the year ended 31 December 2012 Non Share distributableAccumulated Share capitaloptionsreserve reserve loss Total USD USD USD USD USD Balanceat1January, 2011 536,588 19,200 9,464,397 (2,422,553) 7,597,632 Totalcomprehensiveincomefortheyear - - - (1,219,067) (1,219,067) Balanceat31December,2011 536,588 19,200 9,464,397 (3,641,620) 6,378,565 Totalcomprehensiveincomefortheyear - - - (2,106,936) (2,106,936) Balanceat31December,2012 536,588 19,200 9,464,397 (5,748,556) 4,271,629 1.BASISOF PREPARATION The financial statements have been prepared in accordance with International Financial Reporting Standards, (IFRS) and the International Financial Reporting Interpretations Committee, (IFRIC) interpretations. The financial statements are based on statutory records that are maintained under the historicalcostconvention. 31.12.12 31.12.11 USD USD 2.DEPRECIATION 638886 646579