ABRIDGED GROUP INCOME STATEMENTS 
for The Six Months Ended 30 September 2011 
UNAUDITED UNAUDITED UNAUDITED AUDITED 
30 Se...
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Cottco Holdings Limited HY 2012 financial results

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Cottco Holdings Limited leading Agriculture company listed on the Zimbabwe Stock Exchange has released their half year Results . Check out insights into this company in their presentation which appears below.
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Cottco Holdings Limited HY 2012 financial results

  1. 1. ABRIDGED GROUP INCOME STATEMENTS for The Six Months Ended 30 September 2011 UNAUDITED UNAUDITED UNAUDITED AUDITED 30 Sept 30 Sept 30 Sept 31Mar 2011 2010 2009 2011 US$'000 US$'000 US$'000 US$'000 Revenue 115,021 53,082 54,501 210,637 Profit from operations 8,591 (4,173) (1,204) 33,245 Investment income 1,337 679 88 1,066 Other (losses)/gains (272) (42) 1,890 2,906 Finance costs (13,742) (8,170) (5,302) (17,199) (Loss)/profit before taxation (4,086) (11,706) (4,528) 20,018 Income tax expense (961) 1,546 331 (1,450) (Loss)/profit after tax from continuing operations (5,047) (10,160) (4,197) 18,568 Loss from discontinued operations - (743) - (1,089) (Loss)/profit for the year (5,047) (10,903) (4,197) 17,479 Profit attributable to: Equity holders of the parent (4,105) (10,060) (2,781) 8,946 Non-controlling interest (942) (843) (1,416) 8,533 (5,047) (10,903) (4,197) 17,479 Weighted number of shares in issue 532,638 531,065 551,563 552,441 Basic (loss)/earnings per share (US cents) (0.77) (1.89) (0.52) 1.68 Diluted (loss)/earnings per share (US cents) (0.74) (1.82) (0.51) 1.62 ABRIDGED GROUP STATEMENTS OF COMPREHENSIVE INCOME for The Six Months Ended 30 September 2011 UNAUDITED UNAUDITED UNAUDITED AUDITED 30 Sept 30 Sept 30 Sept 31Mar 2011 2010 2009 2011 US$'000 US$'000 US$'000 US$'000 Profit for the period (5,047) (10,903) (4,197) 17,479 Other comprehensive income Foreign currency translation differences for operations (357) (2,265) 7,597 (2,952) Revaluation of property, plant and equipment - 23 - (14,618) Transfer from revaluation reserve - - - (3) Impairment of inventories in associate - - - (26) Prior year unrealised profit in inventories 1,052 - - (849) Income tax on other comprehensive income - 32 - 3,563 Other comprehensive income/(loss) for the period 695 (2,210) 7,597 (14,885) Total comprehensive (loss)/income for the period (4,352) (13,113) 3,400 2,594 Total comprehesive income attributable to: Equity holders of the parent (2,981) (4,102) 1,726 (3,484) Non-controlling interest (1,371) 3,148 1,674 6,078 (4,352) (954) 3,400 2,594 Abridged Group Unaudited Results for the Six Months Ended 30 September 2011 ABRIDGED GROUP STATEMENTS OF FINANCIAL POSITION as at 30 September 2011 UNAUDITED UNAUDITED UNAUDITED AUDITED 30 Sept 30 Sept 30 Sept 31Mar 2011 2010 2009 2011 US$'000 US$'000 US$'000 US$'000 ASSETS Non-current assets Property, plant and equipment 111,166 119,115 131,901 104,203 Investment property 864 684 1,141 864 Other intangibles 8 1,818 - 9 Investment in associate 39 65 65 39 Total non-current assets 112,077 121,682 133,107 105,115 Current assets Assets classified as held for sale 2,398 2,638 - 2,402 Other current assets 235,788 154,406 129,357 144,218 Total current assets 238,186 157,044 129,357 146,620 Total assets 350,263 278,726 262,464 251,735 EQUITY AND LIABILITIES Capital and reserves Shareholders' funds 83,808 71,861 87,381 80,595 Non-controlling interest 32,504 28,087 31,295 35,957 Total equity 116,312 99,948 118,676 116,552 Non-current liabilities Borrowings 14,659 268 54 14,480 Deferred tax liabilities 19,056 24,036 38,365 18,793 Finance lease liabilities - - - 194 Total non-current liabilities 33,715 24,304 38,419 33,467 Current liabilities Liabilities classified as held for sale 637 904 - 640 Other current liabilities 199,599 153,570 105,369 101,076 200,236 154,474 105,369 101,716 Total equity and liabilities 350,263 278,726 262,464 251,735 ABRIDGED GROUP STATEMENTS OF CASH FLOWS for The Six Months Ended 30 September 2011 UNAUDITED UNAUDITED AUDITED 30 Sept 30 Sept 31Mar 2011 2010 2011 US$'000 US$'000 US$'000 Cash flow from operating activities Operating cash flow before reinvesting in working capital 21,375 (2,044) 18,154 Movement in working capital (85,187) (54,326) 3,094 Finance costs paid (10,199) (5,384) (10,840) Taxation paid (2,395) (1,583) (2,022) Net cash (utilised in)/generated from operations (76,406) (63,337) 8,386 Net cash outflow from investing activities (9,006) (6,599) (5,871) Net cash inflow from financing activities 57,718 44,515 340 (Decrease)/increase in cash and cash equivalents (27,694) (25,421) 2,855 ECONOMIC REVIEW The economy has continued to be stable, registering slow but steady growth. Liquidity constraints, punctuated by lack of much needed medium and long term financing continues to impede recovery and growth of business. Improving profitability among banks and businesses in key economic sectors is encouraging though concurrent power shortages need to be resolved in order to sustain these developments. Recent tariff increases, particularly on power, will exert pressure on prices, the country's inflation outlook and the viability of business generally. Globally, the European debt crisis has sparked fears of another recession. Commodity prices remain largely firm but may falter on account of the growing threat of a global slow down. OPERATIONS REVIEW Cotton Crop intake fell to 103,224 tonnes from 111,075 tonnes last year due to a smaller national crop size. Crop in the South East and Zambezi Valley was affected by protracted dry spells resulting, effectively, in substantial yield losses in these areas. However, market share grew from 41% last year to 43% this year. Revenue of US$80.1 million (last year: US$25.4 million) benefited from higher selling prices. Lint prices, which reached a record high of US$2.20 per pound in February 2011, receded to about US$1.00 per pound in June 2011. We were, however, able to forward-contract some of the crop at higher prices though this will be negated by failure of the industry to reduce the producer price in line with declining international prices. As a result, the seed cotton producer price was at least double last year's levels, necessitating a doubling of loan facilities together with an increase in attendant interest costs. We, nevertheless, expect to post a growth in profits by year end. Seed Sales volumes were above last year. Winter cereal sales which were depressed over the last few seasons recorded a significant increase over prior years due to improved commodity prices, although not all the wheat seed sold in Zimbabwe was planted. There are adequate stocks on hand for the forthcoming season and this SBU is well positioned to meet demand in all its markets. New markets like Tanzania and Kenya are quickly developing their own production capacity and, with it, margins are expected to improve. FMCG This business continued to be dogged by working capital challenges for most of the first half. The impact of the recently injected funding coupled with long lead times for some of the key raw materials means improvement will only begin in the second half of the financial year. Everything being equal, we anticipate a reduced loss due to the small number of “impact months” for the new funding - compared to last year's full year loss of US$4.6 million. Spinning This business was debilitated by unfavourable market conditions. The crash in yarn prices was faster than that of lint which left the business holding expensive stock which has been both difficult and unprofitable to dispose of. The fall of prices from record highs in February 2011 caused some structural faults, key among them being high credit and default risks plus the inability of local spinners and textile manufactures to compete with imports from China, India and Pakistan. GROUP FINANCIAL PERFORMANCE Aggregate sales volumes were 19% above last year. Revenue of US$115.0 million was 117% higher than last year due to both higher volumes and more favourable prices. Loss before tax amounted to US$4.1 million (last year: US$11.7 million loss) after charging an impairment provision of US$3.0 million against the Group’s investment in Scottco (Private) Limited. Loss after tax of US$5.0 million was an improvement over prior year of US$10.9 million due to the US$4.6 million net profit recorded in Cotton, together with improved first half performance in both the Seed and FMCG businesses. Net cash utilised in operations amounted to US$76.4 million, largely driven by concurrent crop procurement activities across the Group. Capital expenditure amounted to US$13.4 million. OUTLOOK Aggregate sales volumes for the year will be marginally higher than last year due to volume losses already recorded in the Cotton and FMCG businesses. Profits and attributable earnings are, however, forecast to be higher than last year. DIRECTORATE There were no changes in the Directorate in the period under review. DIVIDEND In line with the Group's policy, no interim dividend has been declared. By order of the Board P Manamike Company Secretary 9 November 2011 GROUP STATEMENTS OF CHANGES IN EQUITY for The Six Months Ended 30 September 2011 Attributable to equity holders of the parent Share Capital Revenue Minority Total Capital Reserves Reserves Total Interest Equity US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Balance at 31 March 2009 - 52,143 33,512 85,655 29,621 115,276 Changes in equity for 2010 Share based payment transactions - (11) 476 465 74 539 Reversal of non-controlling interest - 236 201 437 (437) - Dividend paid - - - - (289) (289) Total comprehensive income/(loss) for the year (net of tax) - 168 (4,270) (4,102) 3,148 (954) Balance at 31 March 2010 - 52,536 29,919 82,455 32,117 114,572 Changes in equity for 2011 Share based payment transactions 2 810 - 812 307 1,119 Redenomination of share capital 5,311 (7,172) - (1,861) (95) (1,956) Acquisition of interest(s) in foreign subsidiary/asociate/joint venture - 745 576 1,321 (1,129) 192 Dividend paid and recieved within the group - - 1,352 1,352 - 1,352 Dividend paid - - - - (1,321) (1,321) Total comprehensive (loss)/income for the year (net of tax) - (13,870) 10,386 (3,484) 6,078 2,594 Balance at 31 March 2011 5,313 33,049 42,233 80,595 35,957 116,552 Changes in equity for 2012 Share based payment transactions 27 735 236 998 69 1,067 Change in degree of control in a subsidiary - (47) (47) (94) 94 - Impairment of investment in subsidiaries - 3,000 - 3,000 - 3,000 Dividend paid and received within the Group - - 2,290 2,290 - 2,290 Dividend paid - - - - (2,245) (2,245) Total comprehensive (loss)/income for the year (net of tax) - (179) (2,802) (2,981) (1,371) (4,352) Balance at 30 September 2011 5,340 33,558 44,910 83,808 32,504 116,312 NOTES TO THE FINANCIAL STATEMENTS 1. Presentation The financial statements are presented in United States dollars rounded off to the nearest thousand. 2. Accounting policies Accounting policies have been applied consistently with those used in the Group financial statements of AICO Africa Limited for the year ended 31 March 2011. 3. Basis of preparation The basis of preparation of these financial statements is International Financial Reporting Standards. 4. Statement of compliance The Group's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and the International Financial Reporting Interpretations Committee, (IFRIC) interpretations. 5. Results of discontinued operations In compliance with the requirements of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, the assets and liabilities of the discontinued operations amounting to US$2.3 million and US$0.6 million have been included in Group Statements of Financial Position as ‘assets classified as held for sale’ and as ‘liabilities held for sale’ respectively. UNAUDITED UNAUDITED AUDITED 30 Sept 30 Sept 31Mar 2011 2010 2011 US$'000 US$'000 US$'000 Property, plant ad equipment 2,223 2,203 2,223 Current assets 66 435 70 Total assets 2,289 2,638 2,293 Deferred tax 612 612 612 Current liabilities 25 281 29 Total liabilities 637 893 641 Net assets 1,653 1,745 1,652 Revenue - 244 464 Loss from operations - (711) (1,060) Loss for the year - (743) (1,089) 6. Supplementary Information 6.1 Loss from operations is stated after the following impairment losses Impairment Losses by Operating Segment Operating Segment Cotton Spinning Seed Other Total 30-Sept 30-Sept 30-Sept 30-Sept 30-Sept 2011 2011 2011 2011 2011 US$'000 US$'000 US$'000 US$'000 US$'000 Inventories 1,465 1 - - 1,466 Investment in subsidiaries - - - 3,000 3,000 Trade and other receivables - - 722 - 722 Total 1,465 1 722 3,000 5,188 UNAUDITED UNAUDITED UNAUDITED AUDITED 30 Sept 30 Sept 30 Sept 31Mar 2011 2010 2009 2011 US$'000 US$'000 US$'000 US$'000 6.2 Depreciation 3,716 3,682 4,275 7,650 6.3 Capital expenditure 13,415 6,773 3,406 12,776 6.4 Commitments for capital expenditure Contracted for - - - 3,961 Approved by the Directors but not yet contracted for 9,800 3,622 12,848 3,160 TOTAL 9,800 3,622 2,848 7,121 6.5. Included in the assets classified as held for sale are assets worth US$109,360 relating to the Cotton business. Directors: BL Nkomo (Chairman), P St. L Devenish* (Group Chief Executive), I Chagonda, CC Chitiyo (Ms), BC Mudzimuirema*, AF Nhau, LF Preston, JP Rooney, F Rwodzi (*Executive)

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