TA Holdings Ltd FY 2013 financial results#Diversified Ind#Zimbabwe

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TA Holdings Ltd FY 2013 financial results#Diversified Ind#Zimbabwe

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TA Holdings Ltd FY 2013 financial results#Diversified Ind#Zimbabwe

  1. 1. DIRECTORS: S S MUTASA (NON-EXECUTIVE CHAIRMAN) - G SAINSBURY* (CE0) - J VEZEY - F DANIELS - R N GORDON - B P NYAJEKA* - Z RANDEREE (*Executive) STATEMENT TO SHAREHOLDERS FOR THE YEAR ENDED 31 DECEMBER 2013 1. HIGHLIGHTS Financial performance 2013 2012 2011 US$’000 US$’000 US$’000 Income 76,829 72,504 67,452 Cash generated from operations 7,093 7,020 5,409 Basic (loss)/earnings per share (cents) (4.71) 0.80 2.81 Headline earnings per share (cents) 2.15 0.95 0.45 2. OVERVIEW The Group achieved a 126% increase in headline earnings per share, from 0.95 cents per share for the year ended 31 December 2012 to 2.15 cents per share for the year ended 31 December 2013. The increase in earnings was driven by: a) 731% increase in profit before tax achieved by Zimbabwe investments. This growth was a result of: • Good underwriting performance at Zimnat Lion which saw underwriting profit increase by 48% to US$1.2 million during the year under review from US$0.8 million for the year ended 31 December 2012 • US$1.7 million fair value adjustment on investment property at Zimnat Life arising from the revaluation of the Zimnat Plaza (formerly the AMC building) in Harare following the change of use of the building from workshop to retail • Reduction in losses at fertilizer companies, mainly Sable Chemicals. b) 5% increase in profit before tax by investments outside Zimbabwe. This was achieved despite a 13% depreciation of the Botswana Pula against the USD, and was driven by the following: • Improved underwriting performance at Lion Assurance Company (Uganda) (LAC), where underwriting profit grew by 153% during the year under review from US$0.24 million to US$0.6 million. • 53% growth in investment income at Botswana Insurance Company (BIC) to US$4.6 million. In line with International Accounting Standard 36: Impairment of Assets, and International Accounting Standard 39: Financial Instruments: Recognition and Measurement, the Group recorded an impairment charge of US$13.709 million against its investment in associate, Sable Chemical Industries Limited. The impairment arose due to uncertainty over future returns to be realised by the Group from this investment. This did not have any cash flow impact. Cash generated from operations remained static at US$7 million when compared with prior year. The Group continues to focus on aggressive working capital management in order to enhance its cash position. 3. FINANCIAL PERFORMANCE 3.1 Profit before tax analysis 2013 2012 US$’000 US$’000 Zimbabwe Investments Insurance Zimnat Life (Shareholder funds) 4,184 1,335 Zimnat Lion 1,300 820 Grand Reinsurance (281) 432 Minerva Risk Advisors (30.3% share of profit after tax) 58 160 5,261 2,747 Hotels Cresta Zimbabwe (440) 562 Agro Chemicals (share of loss after tax) Sable Chemicals (TA Share 51%) (111) (1,260) ZFC (TA Share 22.5%) (24) (1,485) (135) (2,745) Total - Zimbabwe investments 4,686 564 Outside Zimbabwe Investments Insurance Botswana Insurance Company 6,488 6,088 Lion Assurance Company (Uganda) 825 419 7,313 6,507 Hotels Cresta Marakanelo (35% share of profit after tax) 1,054 1,091 Cresta Holdings 634 961 1,688 2,052 Total foreign investments 9,001 8,559 Zimnat Life (Policyholder funds) Profit before gross change in policyholder liabilities 7,007 5,396 Gross change in policyholder liabilities (6,946) (5,360) 61 36 Group total 13,748 9,159 Corporate costs (2,940) (2,327) Provision for impairment (13,709) (1,267) Group (loss)/profit before tax (2,901) 5,565 3.2 Gross written premium Zimbabwe Investments Zimnat Life (Shareholder funds) 7,717 5,872 Zimnat Lion 17,143 12,464 Grand Reinsurance 2,944 7,494 27,804 25,830 Outside Zimbabwe Investments Botswana Insurance Company 29,538 36,440 Lion Assurance Company (Uganda) 7,476 7,463 37,014 43,903 Zimnat Life (Policyholder funds) 6,522 6,198 Group gross written premium 71,340 75,931 insurance in Botswana, and Lion Assurance Company of Uganda. 2013 2012 US$’000 US$’000 Underwriting profit 2,535 3,392 Botswana Insurance Company 1,930 3,153 Lion Assurance Company (Uganda) 605 239 Investment income 4,810 3,141 Finance costs (32) (26) Profit before tax 7,313 6,507 Cash generated from operations Botswana Insurance Company 2,507 1,907 Lion Assurance Company (Uganda) 1,273 13 3,780 1,921 Combined ratio Botswana Insurance Company 86% 83% Lion Assurance Company (Uganda) 87% 94% a) Underwriting performance Botswana Insurance Company The drop in underwriting profit was due to an 19% decline in gross written premium, which was due to reduced premium income, the result of rate cutting in an ever increasing competitive insurance market in Botswana. Lion Assurance Company (Uganda) The increase in the underwriting profit was mainly due to a decrease in the claims ratio from 35% last year to 29% during the year under review as a result of more prudent underwriting. b) Investment income The increase in investment income was driven by fair value gains of equities held by BIC. (ii) Hotels This business sector comprises Cresta Marakanelo and Cresta Holdings which provide hotel services in Botswana and Zambia. 2013 2012 US$’000 US$’000 Cresta Marakanelo Earnings before interest, tax, depreciation and amortisation 7,124 6,890 Depreciation (2,669) (2,547) Finance costs (290) (270) Amortisation of future lease costs (IAS 17) (764) (811) Income tax expense (390) (144) Profit after tax 3,011 3,118 Cresta Marakanelo - share of profits (35% effective interest) 1,054 1,091 Cresta Holdings – profit before tax 634 961 1,688 2,052 Cash generated from operations Cresta Marakanelo 7,840 7,906 Cresta Holdings 267 507 8,107 8,413 Cresta Marakanelo recorded a 3% decline in profit after tax despite a 13% depreciation of the Botswana Pula against the USD. This performance was driven mainly by: • Good performance by Cresta Mowana Resort which had occupancies of 57% and profit of $1.2 million during the year under review • Revenue contribution by new hotels in Jwaneng and Mahalapye, though the Group experienced a reduction in profits at Cresta Lodge Gaborone and Cresta President Hotel Gaborone due to increased room stocks in the Gaborone market. during the year under review largely due to a 61% drop in gross written premium and a rise in the reinsurance ratio from 19% last year to 66% during the year under review. The reduction in premiums and increase in reinsurance ratio was due to primary insurance companies increasing their retention ratios thereby reducing the need for reinsurance. b) Investment income The increase in investment income was mainly due to fair value gains on the Zimnat Plaza of US$1.7 million, gains on equities listed on the Zimbabwe Stock Exchange (ZSE), and an increase in rental income due to a more profitable tenant mix. (ii) Hotels This business sector comprises of Cresta Zimbabwe 2013 2012 US$’000 US$’000 Earnings before interest, tax, depreciation and amortization 867 1,316 Cresta Sprayview pre-opening costs (222) - Depreciation (604) (496) Finance costs (481) (141) De-recognition cost on refurbishment - (117) (Loss)/profit before tax (440) 562 Cash generated from operations 1,564 615 Cresta Zimbabwe incurred a loss before tax of US$0.4 million versus a profit of US$0.6 million last year due to: • 34% decline in Earnings before interest, tax and depreciation. This was a result of a 12% drop in Revenue per Available Room from US$50 last year to US$44, due to a decline in occupancy rates from 60% last year to 54% this year. Occupancy rates were weighed down by the Sprayview Hotel in Victoria Falls which started operations in August 2013 • US$0.2 million pre- opening costs for Cresta Sprayview • Increase in depreciation charges as a result of refurbishments which were completed at Cresta Lodge Harare and Cresta Sprayview • Rise in finance costs as a result of additional borrowings to finance the refurbishment of Cresta Lodge and Cresta Sprayview. (iii) Agrochemicals This business sector comprises Sable Chemicals, the sole producer of Ammonium Nitrate in Zimbabwe, and Zimbabwe Fertilizer Company (ZFC). 2013 2012 US$’000 US$’000 Loss after tax ZFC (108) (6,602) Sable Chemicals (217) (2,471) (325) (9,073) TA share of loss of associate ZFC (24) (1,485) Sable Chemicals (111) (1,260) (135) (2,745) Cash generated from operations ZFC 6,750 11,476 Sable Chemicals 7,871 6,890 14,621 18,366 a) ZFC The company incurred a significantly lower loss than last year due to a 32% increase in fertilizer sales, reduction in costs and lower bad debts impairment charges during the year under review. b) Sable Chemicals The company incurred a loss of US$0.2 million versus US$2.5 million last year. This reduction in losses was due to an 8% increase in fertilizer sales, and a reduction in finance costs as the company changed its credit policy to major distributors. (iv) Impairment charge on equity accounted investments At 31 December 2013, the future returns from the Group’s investment in Sable Chemicals were uncertain. In accordance with International Accounting Standard 36: Impairment of Assets, and International Accounting Standard 39: Financial Instruments: Recognition and Measurement, the Group fully impaired its investment in Sable Chemical Industries Limited. This resulted in a US$13.709 million impairment charge to the income statement for the year under review. 3.5.2 Outside Zimbabwe investments (i) Insurance This business sector comprises Botswana Insurance Company, which is the largest underwriter of short-term 2013 2012 US$’000 US$’000 3.3 Hotel revenue Cresta Zimbabwe 12,482 12,761 Cresta Holdings 2,822 2,024 Group hotel revenue 15,304 14,785 3.4 Investment Income Interest received 1,645 1,169 Dividends received 807 962 Realised gain/(loss) on disposal of investments 590 (766) Rental income 1,048 546 Fair value gains on: - Investment property 1,814 592 - Financial assets 2,642 1,140 8,546 3,643 Realised investment income 4,090 1,911 Unrealised investment income 4,456 1,732 8,546 3,643 3.5 COMMENTARY 3.5.1 Zimbabwe investments (i) Insurance This business sector comprises Zimnat Lion Insurance Company, Zimnat Life Assurance Company and Grand Reinsurance. 2013 2012 US$’000 US$’000 Underwriting profit 2,069 2,486 Zimnat Life (Shareholder funds) 1,095 1,217 Zimnat Lion 1,226 827 Grand Reinsurance (252) 442 Minerva Risk Advisors (share of profit) 58 160 Investment income 3,302 293 Finance costs (168) (192) Profit before tax 5,261 2,747 Cash generated from operations Zimnat Life (Shareholder funds) 1,741 1,257 Zimnat Lion 1,113 433 Grand Reinsurance (35) 171 2,819 1,861 Combined ratio Zimnat Life (Shareholder funds) 84% 77% Zimnat Lion 85% 86% Grand Reinsurance 107% 93% a) Underwriting performance • Zimnat Life’s underwriting profit was 10% below last year’s despite a 31% growth in gross written premium. This was largely due to an increase in the claims ratio from 36% last year to 45% during the year under review. • Zimnat Lion’s underwriting profit rose by 48% driven mainly by a 37% growth in gross written premium and a reduction in the reinsurance ratio from 58% last year to 39% due to a change in business mix. • GrandRe incurred an underwriting loss of $0.3 million TheJupiterDrawingRoom(Harare)J012-002
  2. 2. DIRECTORS: S S MUTASA (NON-EXECUTIVE CHAIRMAN) - G SAINSBURY* (CE0) - J VEZEY - F DANIELS - R N GORDON - B P NYAJEKA* - Z RANDEREE (*Executive) STATEMENT TO SHAREHOLDERS FOR THE YEAR ENDED 31 DECEMBER 2013 4 FINANCIAL POSITION 4.1 Net Asset Value (NAV) Total NAV IFRS before Agro- Consolidation Insurance Hotels Agrochemicals chemicals* Adjustments Group NAV 2013 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 Zimbabwe Investments 18,573 9,456 28,029 3,281 (7,324) 23,986 Outside Zimbabwe investments 26,618 10,478 37,096 - (180) 36,916 Group 45,191 19,934 65,125 3,281 (7,504) 60.902 2012 Zimbabwe Investments 14,526 9,733 24,259 17,125 (6,789) 34,595 Outside Zimbabwe investments 24,696 10,500 35,196 - (487) 34,709 Group 39,222 20,233 59,455 17,125 (7,276) 69,304 * Note: The NAV attributable to the Agro Chemicals business sector, represents TA’s share of NAV of Agrochemicals associates, ZFC and Sable Chemicals. The reduction in the Group’s NAV was due to the impairment of the investment in Sable Chemicals as at 31 December 2013. The NAV attributable to the insurance business sector increased by US$5.969 million from 31 December 2012 to 31 December 2013. This was mainly driven by: • The growth in profits attributable to the performance of Zimnat Lion and Zimnat Life. • Profits earned by BIC and LAC during the year under review. These outweighed the US$2.5 million translation loss incurred during the year. 4.2 Cash and bank balances 2013 2012 US$’000 US$’000 Zimbabwe investments 4,029 3,873 Outside Zimbabwe investments 12,771 9,665 Group 16,800 13,528 Cash generated from operations by the Group remained static at US$7 million compared to last year. After accounting for cash utilised in investing activities, the Group cash balance increased from US$13.5 million at 31 December 2012 to US$16.8 million at 31 December 2013. 4.3 Borrowings Group borrowings increased from US$6.4 million at 31 December 2012 to US$8 million at 31 December 2013 mainly due to an increase in borrowings by Cresta Zimbabwe of US$1.5 million to fund the opening of Cresta Sprayview (Victoria Falls) and the refurbishment of Cresta Lodge Harare. 5 OUTLOOK 5.1 Zimbabwe (i) Insurance • Despite tight liquidity conditions, all Zimbabwean insurance companies are expected to record growth in both premium and underwriting profits. This will be achieved by continuing to target profitable business channels, and an aggressive focus on cost containment and reduction • Growth in investment income will be linked to returns prevailing in the Zimbabwe investment market as a whole • Results recorded so far for 2014 indicate growth of premiums and profits for our insurance sector. (ii) Hotels • Tight liquidity conditions have created a condition where both occupancies and room rates are falling. This is causing intense competition in an already saturated market and consequently margins are likely to continue to be under pressure • The final phase of the Cresta Lodge refurbishment has been suspended until trading conditions improve • With no refurbishment activities planned for 2014, occupancies at the effected hotels, Cresta Lodge and Cresta Sprayview, are expected to drive revenues and occupancies for the Group for the year ahead • The Group has embarked on an aggressive cost containment exercise in an effort to preserve margins. (iii) Agro-chemicals • Finalization of a viable electricity tariff for Sable will enable the company to complete refurbishment of its plant so as to return the company to its installed capacity • Strict credit control policies have enabled the company to lower its level of debt and reduce finance costs. This trend should continue in the forthcoming year. 5.2 Outside Zimbabwe investments (i) Insurance • Whilst competition in Botswana is expected to remain intense, management at BIC have employed strategies that will enable the company to regain market share and increase profitability • At LAC the market share growth that has characterized the previous year is expected to continue. (ii) Hotels • At Cresta Marakanelo, the company expects to regain market share at its hotels in Gaborone, which will in turn drive revenue and profitability growth in 2014. In addition, the two hotels opened in 2013 are expected to continue to grow their contribution to overall profitability • Discussions are at an advanced stage for the company to lease a new hotel and conference center in Botswana. Construction is expected to start in the third quarter of 2014. • 6 PUBLICATION OF RESULTS The Group was unable to publish its results for the year ended 31 December 2013 by 31 March 2014 as the assessment of potential impairment of the Group’s investment in Sable Chemical Industries Limited had not been completed as at that date. 7 DIVIDEND No dividends were declared for the year ended 31 December 2013. AUDITED GROUP INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2013 2013 2012 US$’000 US$’000 Income Net earned premium 43,455 45,068 Gross written premium 71,340 75,931 Insurance premiums ceded to reinsurers (27,885) (30,863) Investment income 8,546 3,643 Realised 4,090 1,911 Unrealised 4,456 1,732 Hotel revenues 15,304 14,785 Fees, commission and other income 9,524 9,008 Total income 76,829 72,504 Expenses Net claims (24,054) (22,486) Hotel cost of sales (4,443) (4,554) Expenses for acquisition of insurance contracts (9,647) (10,476) Operating and administrative expenses (28,166) (27,262) Total expenses (66,310) (64,778) Profit before interest and income tax 10,519 7,726 Finance costs (797) (641) Share of associates profits/(losses) 1,086 (1,520) Impairment of associate* (13,709) - (Loss)/profit before income tax (2,901) 5,565 Income tax expense (2,786) (2,287) (Loss)/profit for the year (5,687) 3,278 (Loss)/profit attributable to: Owners of the parent (7,762) 1,320 Non-controlling interests 2,075 1,958 (5,687) 3,278 Headlines earnings per share for profits attributable to owners of the parent Basic (cents) 2.15 0.95 Diluted (cents) 1.85 0.82 (Loss)/earnings per share for (loss)/profits attributable to owners of the parent Basic (cents) (4.71) 0.80 Diluted (cents) (4.05) 0.69 Included in the Group’s gross insurance premium revenue for the year ended 31 December 2013 is gross insurance premium revenue attributable to policyholders of US$6.522 million (2012: US$6.198 million). *Refer to commentary 3.5.1 (iv) for details. AUDITED GROUP STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2013 2013 2012 US$’000 US$’000 (Loss)/profit for the year (5,687) 3,278 Other comprehensive income Exchange losses on translating foreign operations (3,224) (1,375) Net (loss)/gain on available-for-sale financial assets (4) 121 Revaluation gain on property plant and equipment 467 2,241 Shadow accounting for insurance contracts (259) (200) Share of other comprehensive income of associates - 493 Income tax relating to other comprehensive income (24) (98) Other comprehensive (loss)/income for the year (3,044) 1,182 Total comprehensive (loss)/income for the year (8,731) 4,460 Total comprehensive (loss)/income attributable to: Owners of the parent (10,114) 2,882 Non-controlling interest 1,383 1,578 (8,731) 4,460 TheJupiterDrawingRoom(Harare)J012-003
  3. 3. DIRECTORS: S S MUTASA (NON-EXECUTIVE CHAIRMAN) - G SAINSBURY* (CE0) - J VEZEY - F DANIELS - R N GORDON - B P NYAJEKA* - Z RANDEREE (*Executive) STATEMENT TO SHAREHOLDERS FOR THE YEAR ENDED 31 DECEMBER 2013 By order of the Board, TA Management Services Secretaries, 22 April 2014 17th Floor, Joina City, Julius Nyerere Way, Harare, Zimbabwe; Tel: +263 4 777348-62, Fax: +263 4 777318, Email: admin@ta.co.zw AUDITED GROUP STATEMENT OF CHANGES IN EQUITY AS AT 31 DECEMBER 2013 Attributable to owners of the parent Non- Retained Ordinary Non- Issued share distributable earnings/ shareholders’ controlling Total capital reserves (Accumulated losses) equity interest equity US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 Opening balance (01.01.2012) 1,919 48,470 3,735 54,124 11,447 65,571 Profit for the year - - 1,320 1,320 1,958 3,278 Other comprehensive income/(loss) - 1,562 - 1,562 (380) 1,182 Total comprehensive income - 1,562 1,320 2,882 1,578 4,460 Transactions with owners: Transfer on disposal of property - (400) 400 - - - Transfer of reserves - 496 (496) - - - Dividends paid during the year - - - - (727) (727) Closing balance (31.12.2012) 1,919 50,128 4,959 57,006 12,298 69,304 (Loss)/profit for the year - - (7,762) (7,762) 2,075 (5,687) Other comprehensive loss - (2,352) - (2,352) (692) (3,044) Total comprehensive (loss)/income - (2,352) (7,762) (10,114) 1,383 (8,731) Transactions with owners: Transfer of reserves - 1,952 (1,076) 876 - 876 Dividends paid during the year - - - - (547) (547) Closing balance (31.12.2013) 1,919 49,728 (3,879) 47,768 13,134 60,902 AUDITED GROUP STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013 31 Dec 31 Dec 2013 2012 US$’000 US$’000 ASSETS Property, plant and equipment 28,543 26,279 Intangible assets 1,750 1,917 Investment properties 16,218 14,302 Investments in associates 13.490 27,581 Financial instruments 36,375 30,612 Deferred income tax assets - 3 Inventories 186 264 Reinsurance receivables 19,320 18,012 Deferred acquisition expenses 2,376 3,262 Insurance receivables 10,658 11,263 Accounts receivable 10,461 6,256 Taxation 36 618 Bank and cash 16,800 13,528 Total assets 156,213 153,897 EQUITY AND LIABILITIES Capital and reserves Issued share capital 1,919 1,919 Non distributable reserves 49,728 50,128 (Accumulated losses)/retained earnings (3,879) 4,959 Equity attributable to owners of the parent 47,768 57,006 Non-controlling interests 13,134 12,298 Total equity 60,902 69,304 Liabilities Borrowings 8,031 6,380 Deferred income tax liabilities 4,282 4,008 Deferred revenue 1,233 1,603 Investment contracts with Discretionary Participation Feature 16,850 13,550 Investment contracts 10,651 7,750 Insurance contract liabilities 41,832 41,879 Insurance payables 3,959 1,575 Accounts payable 8,473 7,848 Total liabilities 95,311 84,593 Total equity and liabilities 156,213 153,897 Included in the Group’s assets and liabilities at 31 December 2013 are policyholder assets with a carrying amount of US$31.325 million (2012: US$24.626 million) and policyholder liabilities with a carrying amount of US$31.325 million (2012: US$24.626 million). ABRIDGED GROUP STATEMENT OF CASH FLOWS (AUDITED) FOR THE YEAR ENDED 31 DECEMBER 2013 2013 2012 US$’000 US$’000 Cash generated from operations 7,093 7,020 Net finance charge (797) (641) Income tax paid (823) (1,230) Net cash flow from operating activities 5,473 5,149 Net cash used in investing activities (2,260) (7,794) Net cash generated from financing activities 1,104 2,754 Net increase in cash balances 4,317 109 Cash and cash equivalents at the beginning of the year 13,528 14,328 Effects of foreign currency translation (1,045) (909) Cash and cash equivalents at end of the year 16,800 13,528 Included in the Group’s cash and cash equivalents balance at 31 December 2013 are cash and bank balances attributable to policyholders of US$0.705 million (2012: US$0.001 million). Cash generated from operations attributable to policyholders during the year under review amounted to US$3.302 million (2012: US$2.770 million). NOTES TO THE AUDITED GROUP FINANCIAL RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2013 1. Basis of preparation The Group’s Directors are responsible for the preparation and fair presentation of the consolidated financial statements, which underlie this press release. The principal accounting policies of the Group have been followed in all material respects and conform to International Financial Reporting Standards (IFRS) and the Zimbabwe Companies Act (Chapter 24:03). The same accounting policies and methods of computation are followed as compared with those in the prior financial year. This publication should be read in conjunction with the annual financial statements for the year ended 31 December 2013, which have been prepared in accordance with IFRSs and Zimbabwe Companies Act (Chapter 24:03). 2. Related party transactions 2013 2012 US$’000 US$’000 Transactions Insurance contracts to associates 1,188 2,105 Insurance contracts through an associate 4,198 6,646 Year-end balances Receivable from associates (insurance contracts) 71 255 Payable to associates (insurance contracts) - 71 Key management remuneration Short-term employee benefits 375 343 3. Capital expenditure and commitments Capital expenditure 3,578 4,550 Depreciation charge 1,127 1,061 Capital commitments for purchase of property, plant and equipment 4,200 4,502 4. Segment information Zimbabwe Outside Zimbabwe Investments Investments Group US$’000 US$’000 US$’000 2013 Income 48,618 28,211 76,829 (Loss)/profit before interest and taxation (9,201) 7,097 (2,104) Net interest expense (793) (4) (797) Income tax expense (1,242) (1,544) (2,786) Net (loss)/profit (11,236) 5,549 (5,687) Total assets 82,591 73,622 156,213 Total liabilities 59,622 35,689 95,311 2012 Income 42,566 29,938 72,504 (Loss)/profit before interest and taxation (235) 6,441 6,206 Net interest expense (614) (27) (641) Income tax expense (346) (1,941) (2,287) Net (loss)/profit (1,195) 4,473 3,278 Total assets 79,943 73,954 153,897 Total liabilities 46,616 37,977 84,593 5. Events after the reporting date There were no events after year end that would have any adjusting effect on these financial results. Subsequent to year end, the Group entered into an agreement for the purchase of an additional 20.75% stake in Minerva Risk Advisors (Private) Limited. 6. Audit Opinion The auditors, PricewaterhouseCoopers, have audited the financial statements of the Group for the year ended 31 December 2013. The auditors have indicated that their report is unqualified. TheJupiterDrawingRoom(Harare)J012-004

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