WILD Audited Results for FY Ended 30 Sep 13

ABRIDGED UNAUDITED RESULTSFOR THE YEAR ENDED 30 SEPTEMBER 2013

TURNOVER $6,814,259

TURNOVER UP BY 25% OPERATING LOSS $401,504

STATEMENT OF COMPREHENSIVE INCOME

COMMENTARY - Financial year ended 30 September 2013

OverviewThe operating environment was characterized by a liquidity crisis that curtailed consumer spending andresulted in shortages of cash and high costs of borrowing. As a result anticipated critical funding could notbe obtained on time resulting in subdued throughput and profitability. The business still requires refinancingto refurbish plant, acquire critical mobile equipment and provide sufficient working capital.

Financial ResultsTurnover increased by 25% to $6.8 million compared to the prior year driven mainly by a 27% increase involumes sold. Average revenue per 1000 bricks fell by 2% as there was pressure on prices due to cashshortages in the market. Improved volumes and cost reduction measures implemented during the yearresulted in a reduction in the operating loss to $0,4m (2012: $1 million), after c harging $525,968 to deprecia-tion of property, plant and equipment. Although performance was better than the prior year, the companyis in need of urgent recapitalization in order to further reduce unit production costs and improve profitability.

ProductionGreen and burnt production volumes increased by 17% and 31% respectively over the prior year. Downtime of over 44 per cent was recorded for the year under review, with most of it caused by mobile equipmentshortages. The bulk of funds from the current fund raising initiatives will be utilized towards reducing thisdown time. Several cost cutting measures undertaken across the production cycle resulted in reduced unitcosts of production and improved margins. Costs of production still remain high relative to the region.Increasing production through put and cost reduction remain the key tasks of management.

Sales and MarketingSales volumes increased by 27% over the prior year. Brick availability improved significantly following anincrease in fired production. Despite the cash squeeze which limited growth in revenues, enquiriescontinued to be received for a variety of bricks. There a re several construction projects that will be targetedin the ensuing year which should result in further growth in volumes beyond the critical mass. Marginsshould further improve as volumes increase.

Human ResourcesThe industrial relations climate remained stable during the year under review, despite the harsh economicenvironment. A review of staffing levels across the value chain bench marking against best practice is underway. This will result in improved productivity and a reduction in unit staff costs. The position of ChiefExecutive Officer will be filled during the second quarter of the financial year.

Security Although the security situation has significantly improved, management remains vigilant against threats ofresurgence in theft cases, as a result of the harsh economic environment. Security cooperation through thearea security cluster will be critical in reducing security risk.

OutlookCurrent negotiations to refinance the Company, which are now at an advanced stage, will provide timelyfunding to maximize production during the peak production months of the year. This should provide stockto meet existing and new orders for various construction projects planned for the next financial year. In thisregard, we are confident of further positive growth in revenues and improved profitability from increasedthroughput and reduced unit costs in the next financial year.

Going ConcernThe Board believes that the Company will continue to operate as a going concern at least for the comingfinancial year and as a result financial statements for the period under review have been prepared using thegoing concern concept. The Board’s view is based on the successful conclusion of negotiations with apotential financier, continued support from current financiers and suppliers and other initiatives that theBoard is undertaking to improve the Company’s performance.

DividendNo dividend will be paid with respect to the year ended 30 September 2013 due to accumulated losses.

AppreciationOn behalf of my fellow Directors and Shareholders, I would like to express my sincere appreciation to ourcustomers, suppliers and all stakeholders for their valued support. I would also want to thank managementand staff for working tirelessly to improve the fortunes of the Company under difficult circumstances. Bestwishes for the new year.

Mount Hampden A C Jongwe21 January 2014 Chairman

TurnoverOperating lossRealised loss on investmentsNet interest expenseLoss before taxationTaxationLoss for the yearOther comprehensive income

Revaluation of property, plant & equipmentIncome tax relating to other comprehensive incomeTotal comprehensive income for the year

Loss per share - centsDiluted loss per share - cents

YEAR ENDED 30 SEPTEMBER

2013

US$

UNAUDITED

6,814,259(401,504)

(3)(470,483) (871,990)

101,369 (770,621)

11,156,788(2,874,817) 7,511,350

(0.04) (0.04)


2012

US$

AUDITED

5,457,961(1,036,293)

-(300,058)

(1,336,351)301,679

(1,034,672)

15,000(3,863)

(1,023,535)

(0.06) (0.06)

STATEMENT OF CHANGES IN EQUITY

Shareholders' equity at beginning of period

Revaluation of assets

Deferred tax

Loss attributable to shareholders

Other comprehensive income

Shareholders' equity at end of period


2013

US$

UNAUDITED

6,717,969

11,156,788

(2,874,817)

(770,618)

(3)

14,229,319


2012

US$

AUDITED

7,741,504

15,000

(3,863)

(1,034,672)

-

6,717,969

SUPPLIMENTARY INFORMATION

1. Commitments for capital expenditure Authorised by directors but not contracted for

The capital expenditure is to be financed out ofthe Company's own resources and existingborrowing facilities

2. Net interest bearing debts Borrowings

3. Accounting convention The financial results are based on the statutory records that are maintained under the historicalcost convention and have, in all material respects, been prepared applying applicable accountingpolicies that are consistent with the prior year, adjusted for necessary changes/ amendmentseffective for the current period.

4. Basis of preparation The annual accounts are prepared in accordance with International Financial ReportingStandards issued by the International Accounting Standards Board(IASB) and interpretationsissued by the International Financial Re porting Interpretations Committee(IFRIC) of the IASB.


2013

US$

UNAUDITED

1,240,324

2,824,869


2012

US$

AUDITED

1,080,100

2,849,836

STATEMENT OF FINANCIAL POSITION

Assets

Non current assets

Property, plant and equipment

Current assets

InventoriesTrade and other receivablesTaxationInvestmentsCash and cash equivalents

Total assets

Equity and liabilities

Equity

Share capitalCapital reserve Accumulated loss

Non current liabilities

Deferred taxationMedium to long term borrowings

Current liabilities

Short term borrowingsTrade and other payablesProvisions

Total equity and liabilities


2013

US$

UNAUDITED

24,551,821

1,601,7911,231,000

285,8752,837

-82,079

26,153,612

14,229,319

88,90018,663,432(4,523,013)

6,142,990

5,272,436870,554

5,781,303 1,954,3153,548,231

278,757

26,153,612


2012

US$

AUDITED

13,170,422

1,401,8761,144,267

241,2992,837

313,470

14,572,298

6,717,969 88,900

10,381,461(3,752,392)

2,727,784

2,501,605226,179

5,126,545 2,623,6572,256,095

246,793

14,572,298

STATEMENT OF CASH FLOWS

Operating loss

Adjustments for non-cash items: DepreciationLoss/(Profit) on sale of property, plant and equipmentImpairment loss on assetsOther non cash itemsCash flow before changes in working capital Working capital changes(Increase)/decrease in inventories(Increase) /decrease in accounts receivableIncrease in accounts payable

Cash generated/(utilised) from operating activities

Interest paidInterest received

Net cash generated/(utilised) from operating activities

Purchase of plant and equipmentProceeds on sale of plant and equipment

Cash outflow from investing activities

Proceeds from medium to long term borrowingsOverdraft conversion to loanLoan repaymentCashflow from financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of year Cash and bankShort term borrowings


2013

US$

UNAUDITED

(401,504)

525,968390

-3,718

128,572

(86,733) (44,576)

1,291,513

1,288,776

(470,553) 70

818,293

(664,998) 3,717

(661,281)

-1,200,000(453,094)746,906

903,918

(2,245,027)

13,470(2,258,497)


2012

US$

AUDITED

(1,036,293)

436,821(1,000)

65,1429,886

(525,444)

(334,501) (44,605) 219,723

(684,827)

(276,109) 151

(960,785)

(23,586) 5,000

(18,586)

235,296-

(158,664)76,632

(902,739)

(1,342,288)

18,541(1,360,829)

J E R I C H O

0 4 1 0 4 2

A. C. Jongwe (Chairman), J.J. Brooke, G.A. Chigora, M.A. Gumbi e, M.P. Karo mbo, C. Makoni, M.G. Revanewako, M. Munginga* (*Executive)D I R E C T O R S

preceding us

since 1957

Ourhas been

Closing cash and cash equivalents at 30 September 2013 Cash and bankShort term borrowings

(1,341,109)

82,079(1,423,188)

(2,245,027)

13,470(2,258,497)

Documents

WILD Audited Results for FY Ended 30 Sep 13