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7/30/2019 COLC Reviewed results for FY ended 30 Jun 13.pdf
1/1
30 June 2013 30 June 2012
reviewed audited
USD USD
Cash generated from operating activities 4 689 003 7 079 094
Net interest (paid)/received (16 104) 88 033
Taxation paid (1 016 215) (1 186 059)
Total cash available from operations 3 656 684 5 981 068
Investing activities (2 674 459) (2 611 554)
Dividends paid (1 047 491) (1 726 675)
Net cash ow before nancing activities (65 266) 1 642 839
Financing activities 741 680 (1 565 814)
Net increase in cash and cash equivalents 676 414 77 025
Cash and cash equivalents at the beginning of the year 4 222 570 4 145 545
Cash and cash equivalents at the end of the year 4 898 984 4 222 570
Salient Features
USD
Revenue 60 782 481 15%
Operating prot 4 807 631 33%
Prot before tax 2 249 054 65%
Basic earnings per share (cents) 0.87 70%
Headline earnings per share (cents) 1.88 34%
Directors Responsibility
The directors of Colcom Holdings Limited are responsible for the preparation and fair presentation of the Groups
consolidated nancial statements, of which this press release represents an extract. These nancial statements
have been prepared in accordance with International Financial Reporting Standards and in the manner required
by the Companies Act (Chapter 24:03). The principal accounting policies of the Group are consistent with those
applied in the previous year.
Audit Statement
The Groups external auditors, Ernst & Young, have issued an unmodied review conclusion on the nancial
statements of the Group for the year ended 30 June 2013. The audit of the Group nancial statements is complete
pending the nalisation of the annual report; no changes are expected on the reviewed numbers. The unmodied
review report is available for inspection at the Companys registered ofce.
Financial
Colcom recorded a disappointing result for the year. Whilst the Group recorded a growth in revenue of 15% over
the prior year, this was mainly attributable to low margin product lines where thin margins were further affected
by raw material price increases not passed on to the consumer. As advised in the interim report, a number of
processes were embarked upon during the year in response to both a compromised control and governance
environment as well as a number of equipment failures that occurred within the core pork operation. In addition
to the provisions of USD 1.3 million reported at the half-year, a further USD 1.1 million of cost provisions were
processed in the second half of the year, emanating mainly from stock and retrenchment charges; whilst a critical
review of the Groups xed assets resulted in an impairment and de-recognition charge of USD 1.5 million. These
factors contributed to prot before tax reecting a reduction of 65% over prior year.
In spite of the above, the Group generated USD3.7 million from operations and remains net cash positive after
investing USD 2.8 million in xed assets during the year, primarily directed towards backup generator power and
new retail space for both the Colcom operations and those of its subsidiary Associated Meat Packers (Private)
Limited (AMP).
Operational
Pork business
The Triple C Pigs livestock division delivered 57,646 pigs (F2012: 56,721) during the year representing 4,490
tonnes of raw input product; this was a 6% increase on prior year. Key production statistics show positive trends
over prior year; however the cost and availability of maize for stock feeds remains a challenge. The genetic
upgrade programme remains on line.
The Colcom factory suffered a 5% reduction in overall volumes processed over the prior year, primarily as a
result of equipment failure. In addition, the increased costs of operating and maintaining an ageing plant were
unfavourable. The Colcom pie plant increased production by 38% over prior year, albeit at the cost of margin and
additional overhead. On the positive side, a number of product lines have now been re-engineered, and this has
resulted in an improvement in product quality. In addition, a process to rationalise the operations product listing
has also taken place, and this has allowed for better production efciencies through the factory.
Other business
The Groups subsidiary company, AMP, achieved volume growth of 57% over the prior year, which translated to a
19% growth in protability, limited by the pre-operating costs incurred in expanding the operations retail footprint.
Four new stores built under the Texas brand were opened during the year, bringing the current total outlets to
eight, with a further four units currently being developed.
Colcoms associated company Freddy Hirsch Zimbabwe (Pvt) Ltd recorded a decline in contribution to Group
prots primarily as a result of signicant equipment sales undertaken in the prior year and which were not repeated
in the current year.
Future prospects
The challenges of operating an aging facility have been addressed in part through the commitment to and
contracting of USD 1.4 million of factory equipment expected to be commissioned before December 2013.
This equipment will provide adequate capacity in emulsication, cooking, cooling and packaging to produce
the appropriate quantity and quality of product that is expected to be delivered into the target market into the
foreseeable future. A further commitment to modernise the Colcom pie facility has been made with investigations
as to plant make-up in the nal stages. The Group will continue to invest in maintaining infrastructure to supply
quality water, steam and the refrigeration required to support the operation, whilst investigations to modernise the
facility are at an early stage.
During the year under review, management have made the decisions necessary to ensure that Colcom carries
forward quality assets in the balance sheet and has a clear commitment to achieving the objectives dened in the
Groups revised strategy; as a result, a signicant improvement in overall results is expected in the forthcoming
year.
Dividend
In light of the Groups performance in the year under review, and the requirements to invest in restoring
infrastructure and operational capacity to the plant, the Directors recommend no dividend in r espect of the year
ended 30 June 2013.
By order of the Board
R E Davenport
Chairman
16 August 2013
1 Corporate information 30 June 2013 30 June 2012
The company is incorporated and domiciled in Zimbabwe. reviewed audited
USD USD
2 Depreciation 1 603 612 1 205 211
3 Capital expenditure for the year 2 825 596 3 158 111
4 Commitments for capital expenditure
Contracts and orders placed 2 436 518 1 043 844
Authorised by directors but not contracted 5 448 548 5 251 137
7 885 066 6 294 981
5 Earnings per share
Prot for the year attributable to equity holders of the parent 1 378 782 4 558 082
Number of shares used in calculating earnings per share
Shares in issue 159 040 884 (2012: 159 040 884)
Weighted average shares in issue 159 040 884 (2012:159 040 884)
Basic earnings per share
Basic earnings per share is calculated by dividing the net prot for the year attributable to ordinary equity
holders of the parent by the weighted average number of ordinary shares in issue during the year.
Headline earnings per share
Headline earnings per share is calculated by dividing the headline earnings for the year attributable to ordinary
equity holders of the parent by the weighted average number of ordinary shares in issue during the year.
30 June 2013 30 June 2012
reviewed audited
The headline earnings are calculated as follows: USD USD
Prot for the year attributable to ordinary equity holders of the parent 1 378 782 4 558 082
Loss on disposal of plant and equipment 51 232 18 716
Impairment and derecognition of plant and equipment 1 556 143 -
Prot on disposal of investments - (16 259)
Headline earnings 2 986 157 4 560 539
6 Future lease commitments - Group as lessee
The Group has entered into commercial leases on certain properties. These leases have an average life of
between three and ve years with renewal options included in some of the contracts. There are no restrictions
placed upon the Group by entering into these leases. Future minimum rentals payable under non-cancellable
operating leases at 30 June are as follows:
30 June 2013 30 June 2012
reviewed audited
USD USD
Payable within 1 year 315 100 153 240
Payable within 2-5 years 788 173 324 460
Payable within 6-10 years 281 200 -
1 384 473 477 700
7 Segment analysis
30 June 2013
Business Segments Pork Beef Other Eliminations Group
USD USD USD USD USD
Revenue
Inter - segment sales 667 595 1 304 840 - (1 972 435) -
External Sales 46 927 501 13 781 360 73 620 - 60 782 481
47 595 096 15 086 200 73 620 (1 972 435) 60 782 481
Operating prot/(loss)
before depreciation 4 095 305 986 084 (180 139) (93 619) 4 807 631
Depreciation 1 486 369 117 243 - - 1 603 612
Equity accounted earnings 232 898 - - - 232 898
Prot/(loss) before taxation 1 663 205 859 607 (180 139) (93 619) 2 249 054
Segment Assets 34 310 231 3 268 066 309 275 (629 266) 37 258 306
Segment Liabilities 9 211 751 1 938 079 170 145 (794 048) 10 525 927
Capital Expenditure 1 928 627 896 969 - - 2 825 596
30 June 2012
Revenue
Inter - segment sales 137 382 1 514 667 - (1 652 049) -
External Sales 44 816 888 7 915 546 115 338 - 52 847 772
44 954 270 9 430 213 115 338 (1 652 049) 52 847 772
Operating prot/(loss)
before depreciation 6 701 061 777 613 (3 979) (250 902) 7 223 793
Depreciation 1 155 218 49 993 - - 1 205 211
Equity accounted earnings 382 603 - - - 382 603
Prot/(loss) before taxation 5 720 494 722 583 (3 979) - 6 439 098
Segment Assets 34 573 740 1 684 662 3 037 662 (3 499 563) 35 796 501
Segment Liabilities 12 285 161 802 573 222 147 (3 499 563) 9 810 318
Capital Expenditu re 2 757 198 400 913 - - 3 158 111
8 Events after reporting date
There have been no signicant events after reporting date which affect these nancial statements as at the time
of issuing this press statement.
9 Contingent liabilities
There are no contingent liabilities as at 30 June 2013.
Supplementary Information
For the year ended 30 June 2013
Non-Distributable Distributable Non-controllingShare Capital Reserves Reserves Total Interests Total
USD USD USD USD USD USD
Balance at 30 June 2011 1 590 409 8 972 075 11 979 837 22 542 321 600 597 23 142 918
Disposal of subsidiary - - - - (249 901) (249 901)
Prot for the year - - 4 558 082 4 558 082 261 759 4 819 841
Dividends paid - - (1 701 737) (1 701 737) (24 938) (1 726 675)
Balance at 30 June 2012 1 590 409 8 972 075 14 836 182 25 398 666 587 517 25 986 183
Non-controlling interest arising
from purchase of subsidiary - - - - 490 490
Transactions with owners in
their capacity as owners - - - - 164 782 164 782
Prot for the year - - 1 378 782 1 378 782 249 633 1 628 415
Dividends paid - - (954 245) (954 245) (93 246) (1 047 491)
Balance at 30 June 2013 1 590 409 8 972 075 15 260 719 25 823 203 909 176 26 732 379
Abridged Consolidated Statement of Changes in Equity
For the year ended 30 June 2013
30 June 2013 30 June 2012
reviewed audited
USD USD
ASSETS
Non-current assets
Property, plant and equipment 15 497 662 16 080 595Investments 1 301 929 1 151 841
Deferred tax asset 36 077 185 837
Biological assets 1 258 838 1 236 713
Other non-current nancial assets 324 473 465 816
18 418 979 19 120 802
Current assets
Biological assets 1 626 843 1 212 183
Inventories 7 241 504 7 431 518
Accounts receivable 5 071 996 3 809 428
Cash and cash equivalents 4 898 984 4 222 570
18 839 327 16 675 699
Total assets 37 258 306 35 796 501
EQUITY AND LIABILITIES
Capital and reserves
Share capital 1 590 409 1 590 409
Non-distributable reserves 8 972 075 8 972 075
Distributable reserves 15 260 719 14 836 182
25 823 203 25 398 666
Non-controlling interests 909 176 587 517
Total shareholders equity 26 732 379 25 986 183
Non-current liabilities
Deferred tax liability 2 917 213 3 099 485
Interest bearing borrowings - 435 020
2 917 213 3 534 505
Current liabilities
Interest bearing borrowings 1 440 000 428 572
Accounts payable 5 360 493 4 693 894
Provisions 736 113 718 175
Current tax liability 72 108 435 172
7 608 714 6 275 813
Total liabilities 10 525 927 9 810 318
Total equity and liabilities 37 258 306 35 796 501
Abridged Consolidated Statement of Financial Position
As at 30 June 2013
Abridged Consolidated Statement of Comprehensive IncomeFor the year ended 30 June 2013
DIRECTORS: R. E. Davenport (Chairman), N. R. Adams*, P. Chapendama, C. M. Davenport, B. Fairlie, J. Kou mides, T. T. Kumalo*, D. E. Long, J. P. Schonken, C. Tumazos* (*Executive).
30 June 2013 30 June 2012
reviewed audited
USD USD
Revenue 60 782 481 52 847 772
Operating prot before depreciation 4 807 631 7 223 793
Impairment and derecognition of plant and equipment (1 556 143) -
Depreciation (1 603 612) (1 205 211)
Operating prot before interest and fair value adjustments 1 647 876 6 018 582
Fair value adjustments 384 384 (50 120)
Operating prot before interest and tax 2 032 260 5 968 462
Interest income 197 166 226 132
Interest expense (213 270) (138 099)
Equity accounted earnings 232 898 382 603
Prot before tax 2 249 054 6 439 098
Taxation (620 639) (1 619 257)
Prot for the year 1 628 415 4 819 841
Other comprehensive income - -
Total comprehensive income for the year 1 628 415 4 819 841
Total comprehensive income attributable to:
Equity holders of the parent 1 378 782 4 558 082
Non-controlling interests 249 633 261 759
1 628 415 4 819 841
Earnings per share
Basic earnings per share 0.87 2.87
Headline earnings per share 1.88 2.87
Abridged Consolidated Statement of Cash FlowsFor the year ended 30 June 2013
Reviewed Abridged Financial Results for the year ended 30 June 2013
Attributable to owners of the parent