2
1.Overview It givesme grea t plea sureto presentthe unaudited fina ncial resu lts of ZimbabweNewspapers(1980) Ltd (Zimpa pers) for thehalf year ended 30 June2013. The firs t half of 20 13 continued to en joy rela tiveeconomi c stabilit y whic h was broug ht by the intr oduct ion of the mult i-cu rrenc y system in 2009. However, t he economystill facessome challengeswhich include low indus try capacity utilisation, company closures, low for mal employmentand also unreliablepower and water s upplies.Despite these challenges, theeconomyis estimated to grow by3.4% in 2013, whileyear on year inflation declined to 1.87% in June2013 from 2.91% in December 2012. The low level s of infla tion we re largelyattributed to the generally weaker South African ra nd, which madeimports into thecountry cheaper, and low demand as a result of limited lev els of liquidit y characteris tic of theeconomysince dollarization. The liqui dity constraints have cont inued t o aff ect the mark et's abil ity to buy newspaper s or pla ce adverts. Capacityutilisation of mostcompanieshas remained low therebyaffecting their con tribution to circulat ion and advert ising revenue. However, sector s likeretail are performing rela tivelywell and arecontributing significantl yto the mediaindustryin terms of circulation and advertis ing revenue. 2. Medi aindust ry operati ng environ ment Thetraditional printnewspaper isunder threa tfrom theeffectsof technologyadvancements. Thereis a tech nolog ical s hift that has resu lted in more usag e of digi tal pla tfo rms whic h are chea per and conv enien t. There are now more alter native sour ces of informati on rangi ng from soci al media platformsto on-linewebsites. Advertising plat formsarealso increasing resulting in moreplayersin the industry . Sector magazines, e-mail a dvertising, and on-line advertising are some of the emerging products. 3. Compet iti on Competition in thedailyand weeklynewspapersis increasing. Despitethe competition, Zimpapersstill maintainsitsmarketleadership especia llyas itis now an integr ated mediahouse. Zimpapershas been ev olving its newspaper business model to incorporatemultiple print and digital publi shin g product s to reach new audi ences and bett er satis fy the needs of a dema nding med ia audiencewhose appetitefor the traditional printed news paper hasbeen dwindling whilethe demand for new printand digital formatshasbeen increasing. Inorder to rema in relevantand grow themedia business, theZimpapersbusiness model hasevolved to include popular t abloids, magazines, radio and digit al media based o n a convergence policy that channelsnewscontentacrossall its platforms . 4. Ope rat ionsRev iew  4.1 Capi tali sati on Theinstallation of the Group’snew printing press, and production and accounting sys tem areon course, with thecommissioning of the pressexpected atthe end of September 2013.The recapitalis ation has been a miles tone achi evement in the hist ory of t he Grou p co nside ring the illiq uid oper ating environmentobtaining in themarket. The recapitali sation isexpected to improv e capacityutilisation, operational eff iciencyand production of qualityproductsto the benefitof readersand advertisers. 4.2 DigitalProducts TheGroup is continuouslyfocusing on dev eloping digital p roductscompatiblewith mobiledevices such as sma rt phone s, tabl ets, a nd andr oid devi ces as well as intr oduc ing on-l ine prod ucts like online classified adv erts, e-mail a dvertising, and al so coming up with a dvertising produc ts that suit the informal s ector. Zimpapersis also foc using on mob ile and subscript ion productslike breaking new s, mobileclassifieds, and mobilesportsupdates. 5. Fina ncia lPerformance 5.1 Overa ll The Group rec orded rev enue of $22. 4 million during the first half period compared to $19 .6 million during thesameperiod lastyear, which isa14% growth. The grossprofitalso increased to $1 6.5million from $13 .5 mill ion during thesame perio d last year . Theincreaseis main ly attr ibuta bleto eff icien t purchasing of critical raw materialsespeciallynewsprintand inks. TheGroup also recorded aprofit beforetax of $50 3471 compared t o aloss of $988293during thesame period las t year . The profitabilit y is mainlyattributed to the effectiv e implementat ion of strategi es of revenuegrowth and costcontainmentthatthecompanyembarked on. However the Group experienced an i ncrease in f inance costsof $135824 from $387 834 during t he sameperiod lastyear t o $ 523658. The increasein financ e costsis a reflection of theexpensive nature of short-ter m borrowingsthatthe Group used to financ e itsmuch needed recapit alisation. The Board hasresolved to dispo se of non-co re asse ts as a wayof mitigat ing agai nsthuge borro wing cos ts and restructureitsbalancesheet. 5.3 NewspaperDivision The newspaper div ision recorded a n operating profitof $3.1 million befor e financecosts compared t o $1.8million thesame period lastyear. The division cont inuesto perform well despitethe competition. The division is adopting new technologyto fullyexploit opportunitiesbeing offered by new media in order to mitigat e themigration of readersfrom printto digital platforms. The division hasalso recently launched a new produc t call ed BH24. BH24 is a newslett er which provid es premium busine ssnews targeting local business executives with information to make critical business decisions. BH24 is availableasa mobileapplication or asa PDFfile sentviae-mail. 5.4 CommercialPrinting Division TheCommercial printing division redu ced itsoperating lossto $51654 from $613540the previousyear. The commercia l printi ng divis ion con tinues to benegatively affected by antiquated equipment and limited capacity , and also hugeoverheads and debtoverhang which need to be liquidated. Howe ver thedivision continuesto hold on to its mark etshare despi tethe chal lenge s. Thedivision is managing to service its valued customers that include beverage manufactur ers, food processors, publishers, and manufa cturing companies. The Board isnow looking into buying new machineryfor the division, asit hasnow managed to recapitaliseboth the newspaper and broadcast ing divisions. 5.5 Broadcasti ng Divisio n Thebroadcasting division recor ded an operating los sof $104 244for thehalf year period. Thedivision's performanceisimproving steadilyasit continuesto establish itsbrand in theradio market. The division hassince installed new transmitt ersthroughoutthe countryin an effortto ensurenationwidecoverage. The impr ovement in cover age is expec ted to attract incr ease d advert ising th ereby impr ove the division'srevenuesand profitability . 6. Corpo rate gover nance 5.2 Goin g Conce rn The direc torshave asse ssed theabilityof the Group to con tinueoperati ng as a going con cern and believe that the preparation of theconsolidated financial statements on agoing concern basis is still appropriate. The Group post ed aprofit beforetax of $503471(201 2:loss of $988293) f or thehalf year ended 30June 2013. However , a sof thatdateits currentliabilitiesexceeded it scurrent assetsby$9 073 063 (December 2 012:$8 471230). The gearing ra tio sto od at99.8% (December 2012:103%), with a signi fica nt part of th e borro wingsbeing shor t term and expensive. The borro wingswere used t o purchasea new printing pressand anew production and accounting sy stem in order to rep lacethe old equipmentcurrentlyin use. Thenew equipmentwill be commissioned byend of September 2013.The Group ispursuing waysof restructuring itsdebt from shortterm to medium term in order to reducecost of funds. The Group isin the processof identifying f or dispos al, noncor e assetsin order to liquidate someof the pressing stat utoryobligationsand also enhanceworking capital. Theseinitiatives, coupled with new revenuestreamsand operational efficiencyto be achieved from t he equipment, will ensu re theGroup achievesgrowth in revenueand profitab ilityin 2013. It ison thatbasis thatthe consolidated financial state mentshavebeen prepared on agoing concern basis. CHAIRMAN'S STA TEMENT The Board of Directors and Mana gement remain committed t o high st andards of good cor porate gove rnance. The Grou p's Audit and Fin ance Committe e, and ot her committ ees, met regul arly throughoutthe period under review to asses soperationsand adequacy of systemsand proceduresthat safeguard thecompany'sassets. 7. Corpo rate andSoci alinves tment The Group undertook various corporatesocial inv estment activitiesduring the period under review. Someof the communitieswhich benefite d from theprogram areRobertMugabeOrphanage in Mutare, Maun gwa Community in Masv ingo, Zoro rai Old Peo ple’ s Home in Mutar e and Melf ort Farm Ol d People’sHomein Marondera. The Group remainscommitt ed to giving bac kto the communityasit feels ithas arole to playin improving a nd touching other p eople'slives. 8. Di vi dend TheDirecto rssaw it prudentnot to declarea divi dend in order to preserv e theavaila bleresourcesfor working capit al, liquidating thedebt, and also to completeits recapitalis ation programme to ensure thatthe Group isproperlyrepositioned for thefuture. 9. Ou t l oo k TheBoard and Managementare upbeat abou t thefutureperfor manc e of theGroup especia llyon the backdrop of t herecapitalisation thatistaking placelikethe new printing press .The new printing pres sis expected to usher in new r evenue streams, and also bring c ompetitive advantage of the Group’s productsthrough efficiencyand quality. 10. Appr ecia tion I would liketo expressmygratitudeto our customers,advertisers, reader s, listenersand all stakeholders for their s upportduring the period under rev iew. I would also liketo takethis opportunityto thankmy fellow Directors , the Group Chief Executive, Mr. J.M.Mutasa, his managementteam, and all members of staff,for their continued dedication and commitmen tto thesuccessof the company . Dr. P. Chimedza OUTGOING CHAIRMAN Revenue 22,364,204 19,555,858 Cost of sales 5,890,753 5,993,781 Grossprofit 16,473,451 13,562,077 Other operating income 793,825 244,551 Operating expenses 16,241,867 14,363,738 Selling and distribution expenses 3,340,525 3,269,138 Administration expenses 12,901,342 11,094,600 Profit/ (loss) from operations 1,025,409 (557,110) Net finance cost (523,658) (387,834) Exchange gain/(loss) 1,720 (43,349) Profit/ (loss) before tax 503,471 (988,293) Tax expense (145,875) (305,718) Profit /(loss) for the period 357,596 (1,294,011) Other comprehensive income - - Total comprehensive income for the period 357,596 (1,294,011) Number of shares in issue(000s) 576,000 576,000 Basic earnings/ (loss) per share (cents) 0.06 (0.22) Diluted earnings/ (loss) per share (cents) 0.06 (0.22) ASSETS Non-currentassets Property, plant and equipment 20,408,464 19,769,577 Intangible assets 56,599 57,484 Long term investment 500,000 553,462 Total non current assets 20,965,063 20,380,523 Currentassets Inventories 1,449,889 1,330,561 Accounts receivable 3 8,260,764 7,303,530 Investments a t f air value t hrough p rofit o r l oss 28,936 22,841 Bank and cash balances 236,551 54,974 9,976,140 8,711,906 Total assets 30,941,203 29,092,429 EQUITYAND LIABILITIES Capi taland reser ves Share capital 57,600 57,600 Non distributable reserve 10,963,423 10,963,423 Accumulated loss (2,875,762) (3,233,358) 8,145,261 7,787,665 Non-curren t liabilities Long term loans 871,691 1,392,454 Deferred tax 2,875,049 2,729,174 3,746,740 4,121,628 Currentliabilites Accounts payable 4 7,009,809 6,471,647 Short termloans 4,477,443 4,396,166 Related party balances 5 4,781,399 4,103,341 Bank overdraft 2,780,551 2,211,982 19,049,202 17,183,136 Totalliabilities 22,795,942 21,304,764 Total equity and liabilities 30,941,203 29,092,429 Unaudited Unaudited 6 months 6 months to J une 20 1 3 to J une 20 12 US$ US$  30 June 2013 31 Dec 2012 US$ US$ Unaudited Audited Consolidated statement of compreh ensive income forthe half y ear ende d 30 June 2013 Consolidated statement of financ ial posit ion Asat 30June 20 13  Abridged Consolidated statement of cash flows forthe half ye ar ended30 June 2013 Business segment report forthe half y ear ended 30 June 2 013 Notes to the consolida ted unau dite d financ ial stat ement s forthe half ye ar ende d 30 June 2 013 Cons olida ted statement of changes in equit y  forthe half ye ar ended30 June 2013 Directors: Dr Paul Chi med za* (Chairman), Mr Chakanyuka G. Karase ( Vice Chairperson), Mr Justin M. Mutasa (Group Chief Executive), Dr . Charles M. B. Utete, Dr . Munyaradzi Kereke, Brig-Gen Epmarcus Kanhanga (Rtd)*, Dr. Nyasha Madzingira, Mr. Joseph S. Mandizha, Mr . Rungamo J . Mbire, Mr . Delma Lupepe, Mr Alexander Kanengoni ZIMP APERS (1 980 ) L IMIT ED UNAUDI TED RE SULTS FOR THE HALF YEAR ENDED 30 JUNE 20 1 3 UNAUDITED RESUL TS FOR THE HALF YE AR ENDE D 30 JUNE 2013 Dr. P. Chimedza H-Metro B-Metro zimtravel Brid al Magaz ine ridal Magaz ine Superbrand of the Year2012 Print Media Superbrand of the Year2012 Print Media Superbrand of theYear201 2 Print Media Superbrand of the Year2012 Runner-up Print Media Unaudited Unaudited 6months 6months t oJu n e 2 01 3 to Ju n e 2 012 US$ US$ Non di str ibuta ble Accumu lat ed Share capital reserve loss Total US$ US$ US$ US$ Newspa per s Commer cia l Bro adc as tin g Cor porate Con sol ida ted Printing P rinting US$ US$ US$ US$ US$ Unaudited Unaudited 6months 6months to Ju n e 2 013 to Ju n e 2 012 US$ US$ Net cash flows fromoperations 1,213,210 538,422 Net c ash used in investing activities (1,160,714) (1,038,207) Net c ash (used in)/ f rom financing activities (439,488) 97,682 NET DECREASE IN CASH AND CASH EQUI VALENTS (386,992) (402,103) CAS H ANDCAS H EQUIV ALENTSAT T HEBEGI NNI NG OF THEPERIO D(2 ,157, 008) (1, 157 ,85 0) CAS H ANDCASH EQU I V ALENTS AT THEE NDOF THEPERI OD ( 2 , 544 , 0 00 ) ( 1 , 5 59 , 9 53 ) Balance at 1 January, 2012 57,600 11,398,823 (3,730,944) 7,725,479 Total co mpr ehens i v ei nc omef or t heper i od - - ( 1 , 112 , 171 ) ( 1 , 112 , 171 ) Classification to retained earnings - (400,000) 400,000 - Balance at 30 J une, 2012 57,600 10,998,823 (4,443,115) 6,613,308 Balance at 31 December , 2 012 57,600 10,963,423 (3,233,358) 7,787,665 Tot a l compr ehen s i v ei n comef or t h eper i o d - - 35 7, 59 6 35 7, 59 6 Balance at 30 J une, 2013 57,600 10,963,423 (2,875,762) 8,145,261 The commercia l printing segmentis involved in theprinting of books, labels, securitydocuments, diaries, calendarsand offering of origination servic es. The newspaper segme nt is involved in news paper and magazineprinting and publishing.The broadcas ting segmentis a commercia l free-to-air radio sta tion. The corporatesegment comprisesHead Officeadministrativeoperations. Revenue 19,105,827 1,835,777 1,422,600 - 22,364,204 Results Segment (loss)/ p r ofit 1,772,309 (151,584) (179,778) (417,463) 1,023,484 Net finance cost (523,658) Profit on sale of fixed assets 1,925 Exchange gain 1,720 Tax expense (145,875) Profit for the period 357,596 Other informatio n Segment assets 20,236,640 7,375,275 1,746,499 1,582,789 30,941,203 Segment l i abilities 13,109,855 4,098,420 820,940 1,891,678 19,920,893 Deferred tax liability 2,875,049 Capital e xpenditure 1,185,519 - 53,389 - 1,238,908 Depreciation 419,703 108,996 67,562 - 596,261 1. GENERALINFORMATION 1.1 Nature of busin ess ZimbabweNewspapers (1980) Limited an d itssubsidiaries are incorporated in Zimbabwe. The Group's main business is that of newspa per proprietor s, printer s and publisher s. The registration number of t he companyis 600/B280 . 1.2 Currency The Group'sfunctional and presentation currencyis the United St atesdollar ("US$") 2. ACCOUNTING POLICIES 2.1 Basis of preparation This interim report complieswith t he requirementsof IAS 34. The sameaccounting policiesand me thods of measur ement and recognit ion asthose applied in t he 2012annual financial s tatement s have been followed in preparing thisinterim report. 3. ACCOUNTSRECEIVABLE Tradereceivables 5,865,515 4,964,804 Other receivables 2,652,020 2,601,015 less: allowance for credit losses (256,771) (262,289) 8,260,764 7,303,530 4. ACCOUNTSPAYABLE Trade 435,030 685,974 Other 6,574,779 5,785,673 7,009,809 6,471,647 5. RELATEDPARTY PAY ABLES Relatedparty Natureofrel ati ons hip Balancesduetorelat edpar tie s ZimpapersMedical Aid Society Guarantor 1,223,522 315,165 Zimpapers P ension Fund Member 3,557,877 3,788,176 4,781,399 4,103,341 Adolf AMajome (Mr) (Company Secretary) *Outgoing Directors

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1 .Overvi ew

I t g i v e s m e g r e at p l e as u r e t o p r e s e n t t h e u n a ud i t e d f i n an c i a l r e s ul t s o f  

Zim ba bw eNews pa pers ( 1 9 8 0 ) L t d ( Zim papers ) f or t heha lf y ea r ended 3 0

J u n e 2 0 1 3 . T h e f i r st h a l f o f 2 01 3 c o n ti n u e d t o e nj o y r e l at i v e e c o n o m ic

s t ab i l i ty w h i ch w a s b r o u gh t b y t h e i n t ro d u c ti o n o f t h e m u l ti - c ur r e n cy

s y s t em in 2 0 0 9 . H owev er, the ec onom y s t ill f a c es s om e c ha llenges whic h

inc lude low indust ry c a pa c it y ut ilis a t ion, c om pa ny c los ures , low f orm a l

em ploy m ent a nd a ls o unrelia blepower a nd wa t er supplies . Des pit e t hes e

c ha llenges , t heec onom y is es t im a t ed t o grow by 3 . 4 % in 2 0 1 3 , whiley ea r

on y ea r inf la t ion dec lined t o 1 . 8 7 % in June2 0 1 3 f rom 2 . 9 1 % in Dec em ber

2 0 1 2 . The low lev els of inf lat ion w ere la rgely a t t ribut ed t o t he genera lly

wea ker Sout h Af ric a n rand, whic h m a deim port s int o t hec ount ry c hea per,a nd low dem a nd a s a res ult of limit ed levels of liquidity c ha ra c t erist ic of  

t heec onom y s inc e dolla riz a t ion.

h e l i q u id i t y c o n st r a in t s h a v e c o n ti n u e d to a f fe c t t h e m a r ke t ' s a b i li t y t o b u y n e w sp a p e rs o r p l ac e

dv ert s . Ca pa c it y ut ilis a t ion of m os t c om pa nies ha s rem a ined low t hereby a f f ec t ing t heir c ont ribut ion

o c irc ula tion a nd a dv ertis ing rev enue. H ow ev er, s ec t ors lik eret a il a re perf orm ing relat iv ely well a nd

rec ont ribut ing s ignif ic a nt ly t o t he m edia indus t ry in t erm s of c irc ula t ion a nd a dv ert ising rev enue.

M e d ia i n d u s tr y o p e r a t in g e n v i r o nm e n t

het ra dit iona l print news pa per is under t hreat f rom t heef f ec t s of t ec hnology a dv a nc em ent s . Thereis a

e c hn o l o gi c a l sh i f t t h a t h a s r e s ul t e d i n mo r e u s a ge o f d i g it a l p l at f or m s w h i ch a r e c h e ap e r a n d

o n ve n i e nt . T h e r e a r e n o w m o r e a l t e rn a t iv e s o u rc e s o f i n f o rm a t io n r a n g in g f r o m s o c ia l m e d i a

la t f orm s t o on- linewebs it es . Adv ert is ing pla tf orm s a rea ls o inc rea s ing res ult ing in m orepla y ers in t he

ndus t ry. Sec t or ma ga z ines , e- m a il adv ert is ing, a nd on- line a dv ert is ing a re s om e of t he em erging

roduc t s .

o mp e ti t io n

om pet it ion in t heda ily a nd weekly new s pa pers is inc rea s ing. Des pit et he c om pet it ion, Zim pa pers s t ill

m a int a ins it s m a rket lea ders hip es pec ially a s it is now a n int egra t ed m edia hous e.

m pa pers ha s been evolv ing it s new s pa per bus ines s m odel t o inc orpora t em ult iple print a nd digit a l

u b l is h i ng p r o d u c ts t o r e a c h n e w a u d ie n c e s a n d b e t te r s a t i sf y t h e n e e d s o f a d e m an d i n g m e di a

udienc ewhos e a ppet it ef or t he t ra dit iona l print ed newspa per ha s been dwindling whilet he dem a nd

or new print a nd digit a l f orm a t s ha s been inc rea s ing.

order t o rem ain relev a nt a nd grow t hem edia bus ines s , t heZim pa pers bus ines s m odel ha s ev olv ed t o

nc lude popula r ta bloids , m a ga z ines , ra dio a nd digita l m edia ba s ed on a c onv ergenc e polic y t ha t

ha nnels news c ont ent a c ros s a ll it s pla t f orm s.

p er a ti on s R e vi e w

a p it a l is a t io n

heins t a lla t ion of t he Group’ s new print ing pres s , a nd produc t ion a nd a c c ount ing s y st em a reon c ours e,

wit h t hec om m is s ioning of t he pres s expec t ed a t t he end of Sept ember 2 0 1 3 . The rec a pit a lisa t ion ha s

e e n a m i l e st o n e a c h ie v e me n t i n th e h i s to r y o f th e G r o up c on s i d er i n g t h e i l l i qu i d o p e ra t i n g

nv ironm ent obt a ining in t hem a rket . The rec a pit a lis a t ion is expec t ed t o im prove c a pa c it y ut ilis a t ion,

pera t iona l ef fic ienc y a nd produc t ion of qua lit y produc t s t o t he benef it of rea ders a nd a dv ert is ers .

i gi tal Pro d u c ts

heGroup is c ont inuous ly f oc us ing on developing digit a l produc t s c om pa t iblewit h m obiledev ic es s uc h

s s m ar t p h o n es , t a b le t s , an d a n d ro i d d e v ic e s a s w e l l a s i n t ro d u ci n g o n - li n e p r o du c t s l i k e o n l i ne

la s s if ied a dvert s , e- m a il adv ert is ing, a nd a ls o c om ing up w it h adv ert is ing product s t ha t s uit t he

nf orm a l sec t or. Zim pa pers is a ls o f ocus ing on m obile a nd s ubs c ription produc t s like brea king news ,

m obilec la s s if ieds , a nd m obiles port s upda t es .

n an c i al P e r f o r ma n c e

v e r al l

he Group recorded revenue of $ 2 2 .4 m illion during t he f irs t ha lf period c om pa red t o $ 1 9. 6 m illion

uring t hes a m eperiod la s t y ea r, w hic h is a 1 4 % growt h. The gros s prof it a ls o inc rea s ed t o $ 16 . 5 m illion

r o m $ 1 3. 5 m i l li o n d u r i n g t h e s a m e p e r i od l a s t y e a r. T h e i n c r e a s e i s m a i nl y a t t ri b u t ab l e t o e f fi c i e nt

urc ha s ing of c rit ic a l ra w m a t eria ls es pec ia lly news print a nd ink s .

heGroup a ls o rec orded a prof it bef oret a x of $ 5 03 4 7 1 c om pa red to a los s of $ 9 8 8 2 9 3 during t hes a m e

eriod la st y ea r. The prof it a bility is m a inly a t t ribut ed t o t he ef f ec t ive im plem ent a tion of s t ra t egies of  

ev enuegrowt h a nd c os t c ont a inm ent t ha t t hec om pa ny em ba rked on.

ow ev er t he Group experienc ed a n inc rea s e in fina nc e c os t s of $ 1 3 5 8 2 4 f rom $ 3 8 7 8 3 4 during the

a m eperiod la s t y ea r to $5 2 3 6 5 8 . The inc rea s ein f ina nce c os t s is a ref lec t ion of t heexpens iv e na t ure

f s hort - t erm borrowings t ha t t he Group us ed t o f ina nce it s m uc h needed rec a pita lis a t ion. The Boa rd

a s r e s o l v e d t o d i s p os e o f n o n - c or e a s s et s a s a w a y o f m i t i g a ti n g a g a in s t h u g e b o r r ow i n g c o st s a n d

es t ruc t ureit s ba la nc es heet .

Newsp ap erDi vi si o n

he news pa per divis ion rec orded an opera t ing prof it of $ 3 . 1 m illion bef ore f ina nc ec os t s c om pa red to

1 . 8 m illion t hes a m e period la s t y ea r. The div is ion c ontinues t o perf orm well des pit et he c om pet it ion.

he div is ion is a dopt ing new t ec hnology t o f ully exploit opport unit ies being of f ered by new m edia in

rder t o m it iga te t hem igra t ion of rea ders f rom print t o digit a l pla t f orm s . The div is ion ha s a ls o rec ent ly

a u n ch e d a n e w p r o d u ct c a l le d B H 2 4 . B H 24 i s a n e w sl e t te r w h i c h p r o v i de s p r e mi u m b u s i n es s n e w s

a rget ing loc a l bus ines s exec ut iv es w it h inf orm a t ion t o m a ke c rit ic a l bus ines s dec is ions . BH 2 4 is

v a ila blea s a m obilea pplic a t ion or a s a PDFf ile s ent v ia e- m a il.

o mmerc i al Pri n ti n g Di vi si o n

heCom m erc ia l print ing div is ion reduc ed it s opera t ing los s t o $ 5 1 6 5 4 f rom $ 6 1 3 5 4 0 t he prev ious y ea r.

he c om m erc ial print ing div ision c ont inues t o benega t iv ely a f f ec t ed by a nt iqua t ed equipm ent a nd

m it ed c a pa c it y, a nd a ls o hugeov erhea ds a nd debt ov erha ng whic h need t o be liquida t ed.

o w ev e r t h e d i v i s i o n c o n ti n u e s t o h o l d o n t o i t s m a r ke t s h a r e d e s p it e t h e c h a ll e n g es . T h e d i v i s i o n i s

m a na ging t o s erv ic e it s v a lued c us t om ers t ha t inc lude bev era ge m a nuf a c t urers , f ood proc es s ors ,

ublis hers , a nd m a nuf ac t uring c om pa nies . The Boa rd is now look ing int o buy ing new m a c hinery f or t he

iv is ion, a s it ha s now m a na ged t o rec a pit a lis ebot h t he news pa per a nd broa dc a s ting div is ions .

ro ad c astin g Di vi si on

hebroa dc a s t ing div is ion rec orded a n opera t ing loss of $ 1 0 4 2 4 4 f or t heha lf y ea r period. Thediv is ion' s

erf orm a nc eis im prov ing s t ea dily a s it c ont inues t o es t a blis h it s bra nd in t hera dio m a rket . The div is ion

a s s inc e ins t a lled new t ra ns m it ters t hroughout t he c ount ry in a n ef f ort t o ens urena t ionwidec ov era ge.

h e i m p ro v e me n t i n c o v e ra g e i s e x p e ct e d t o a tt r a ct i n c re a s ed a d v e r ti s i n g t he r e b y i m p ro v e t h eiv is ion' s rev enues a nd prof it a bilit y.

o r p or a t e g o v e rn a n ce

o i ng C o n c er n

h e d i r e ct o r s h a v e a s s es s e d t h e a b i l i t y o f t h e G r o u p t o c o nt i n u e o p e r a t in g a s a g o i n g c o nc e r n a n d

eliev e t ha t t he prepa ra t ion of t hec ons olida t ed f ina nc ia l s t a t ement s on a going c onc ern ba s is is s t ill

ppropria t e. The Group pos ted a prof it bef oret a x of $ 5 0 3 4 7 1 ( 2 0 12 :los s of $ 9 8 8 2 9 3 ) for t heha lf y ea r

nded 3 0 June 2 0 1 3 . H owev er, as of t ha t da t eit s c urrent lia bilit ies exc eeded its c urrent a s s et s by $ 9 0 7 3

6 3 ( Dec em ber 20 1 2 :$ 8 4 7 1 2 3 0 ) . The gea ring rat io s t ood a t 9 9 . 8 % ( Dec em ber 2 0 1 2 :1 0 3 %) , wit h a

g n if i c an t p a r t o f t he b o r r ow i n g s b e i n g s h o rt t e r m an d e x pe n s iv e . T h e b o r r ow i n g s w e r e u s e d to

urc ha s ea new print ing pres s a nd a new produc t ion a nd a c c ount ing s ys t em in order t o repla c et he old

quipm ent c urrent ly in us e. Thenew equipm ent w ill be c om m is s ioned by end of Sept em ber 2 01 3 . The

roup is purs uing wa y s of res t ruc t uring it s debt f rom s hort t erm t o m edium t erm in order t o reduc ec os t

f f unds . The Group is in t he proc es s of ident if y ing for dis posa l, nonc ore a s s et s in order t o liquida t e

om eof t he pres s ing s t a tut ory obliga t ions a nd a ls o enha nc ew orking c a pit a l. Thes einit ia t iv es , c oupled

wit h new rev enues t rea m s a nd opera t iona l ef f ic ienc y t o be a c hiev ed f rom the equipm ent , will ens ure

heGroup a c hiev es growt h in rev enuea nd prof it a bilit y in 2 0 1 3 . I t is on t ha t ba s is t ha t t he c ons olida t edna nc ia l s t a t em ent s ha v ebeen prepa red on a going c onc ern ba s is .

CHAIRMAN'S STATEMENT   The Boa rd of Direc t ors a nd M a nagem ent rem a in c omm it t ed to high s ta nda rds of good c orpora t e

g o v er n a n ce . T h e G r o up ' s A u d i t a n d F i na n c e C o m mi t t ee , a n d o th e r c o mm i t te e s , me t r e g u la r l y

t hroughout t he period under rev iew t o a s s ess opera t ions a nd a dequa c y of s y s t em s a nd proc edures t ha t

s a f egua rd t hec om pa ny ' s a s s et s .

7 . C o r p or a t e a n d S o c ia l i n v e st m e n t

The Group undert ook v a rious c orpora t es oc ia l inves t m ent a c t iv it ies during t he period under rev iew.

Som eof t he c om m unit ies whic h benef it ed f rom t heprogra m a reRobert M uga beOrpha na ge in M ut a re,

M a u ng w a C o m mu n i t y i n M a s vi n g o , Z o r or a i O l d P e op l e ’s H o m e i n M u t a re a n d M e l fo r t F a r m O ld

People’ s H om ein M a rondera . The Group rem a ins c om m it ted t o giv ing ba ckt o t he c om m unit y a s it f eels

it ha s a role t o pla y in im prov ing and t ouc hing ot her people' s liv es .

8 . D iv id en d

T h e D i r e c t or s s a w i t p r u d en t n o t t o d e c l a r e a d i v id e n d i n o r d e r t o p r e s e r ve t h e a v a i l ab l e r e s o u r ce s f o r

working c a pita l, liquida t ing t hedebt , a nd a ls o t o c om plet eit s rec a pit a lisa t ion progra mm e t o ens ure

t ha t t he Group is properly repos it ioned f or t hef ut ure.

9 . O ut lo ok

T h e B o a r d a n d M a n ag e m en t a r e u p b e at a b o ut t h e f u t u r e p e r f o rm a n ce o f t h e G r o u p e s p e c i al l y o n t h e

ba c kdrop of therec a pit a lis a t ion t ha t is t a king pla c eliket he new print ing pres s. The new print ing press is

expec t ed t o us her in new rev enue s t rea m s , a nd a ls o bring com pet it iv e a dv a nt a ge of t he Group’ s

produc t s t hrough ef f ic ienc y a nd qua lit y .

1 0 . A p p re c i at i o n

I would liket o expres s m y gra t it udet o our c us t om ers , a dv ert is ers , rea ders , lis t eners a nd a ll s t a keholders

f or t heir support during t he period under review. I would a ls o liket o t a ket his opport unit y t o t ha nkm y

f ellow Direc t ors, t he Group Chief Exec ut iv e, M r. J. M . M ut a s a , his m a na gem ent t ea m , a nd a ll m em bers

of s t a f f , f or t heir c ont inued dedic a t ion a nd c om m it m ent t o t hes uc c es s of t he c om pa ny.

Dr. P. Chimedza

OU TGOING CHAIRMAN

Reven u e 22 ,364, 204 19, 555, 858

Cost of sales 5 ,890, 753 5, 993, 781

Gro ssp ro fi t 16 ,473, 451 13, 562, 077

Ot her operat ing income 793, 825 244, 551

Operating expenses 16,241,867 1 4,363,738

Selling and distribut ion expenses 3 ,340, 525 3, 269, 138

Administration expenses 12 ,901, 342 11, 094, 600

Profi t/ (l oss) from operations 1,025,409 (557,11 0)

Net fina nc e cost ( 523, 658) ( 387,8 34)

Exc ha nge gain/(loss) 1, 720 ( 43,3 49)

Profit/ (loss) before tax 503, 471 ( 988,2 93)

Tax expense ( 145, 875) ( 305,7 18)

Profi t /(l oss) for the period 357,596 (1,294,01 1)

Oth er c omp rehensive income - -

Total compre hensi ve income for the perio d 357,596 (1,294,01 1)

Num ber of s ha res in issue(000 s) 576, 000 576, 000

Bas ic ea rnings/ (los s) per share (c ent s) 0. 06 (0. 22)

Diluted ea rnings/ (loss) per share (cents ) 0. 06 (0. 22)

ASSETS

Non- c urrent a s s et s

Property, plant and equipment 20 ,408, 464 19, 769, 577

Intangible assets 56, 599 57, 484

Long t erm invest ment 500, 000 553, 462

Tota l non current assets 20, 965, 063 20, 380, 523

Cu rren tassets

Inventories 1, 449, 889 1, 330, 561

Ac counts rec eivable 3 8, 260, 764 7, 303, 530

Invest ment s at fair value through prof it or los s 28, 936 22, 841

Bank and cash balances 236, 551 54, 974

9, 976, 140 8, 711, 906

Total assets 30,941,203 2 9,092,429

EQ U ITYAND L IABIL ITIES

C a p it a l a n d r e s e rv e s

Share c apital 57, 600 57, 600

Non dis tributable reserve 10, 963, 423 10, 963, 423

Ac cumula ted loss (2, 875, 762) (3, 233,3 58)

8, 145, 261 7, 787, 665

No n - c u rrent l i ab i l i ti es

Long t erm loans 871, 691 1, 392, 454

Deferred tax 2, 875, 049 2, 729, 174

3, 746, 740 4, 121, 628

Cu rren tl i ab i l i tes

Ac counts payable 4 7, 009, 809 6, 471, 647

Short term loans 4, 477, 443 4, 396, 166

Related party balanc es 5 4, 781, 399 4, 103, 341

Bank overdraf t 2, 780, 551 2, 211, 982

19, 049, 202 17, 183, 136

To tal l i ab i l i ti es 22, 795, 942 21, 304, 764

Total eq uity and liabi lities 30,941,203 2 9,092,429

Unaudited Unaudited

6 months 6 monthsto June 20 13 to June 20 12

US$ US$

 

30 June 20 13 31 Dec 20 12

US$ US$

Unaudited Audi ted

Consolidated statement of c omprehensive inc omef o r t h e h a l f ye a r e n d ed 3 0 J u n e 20 1 3

C o n so l i da t e d s t a t e me n t o f f i n a n ci a l p o s i ti o nA s a t 3 0 J u n e 2 01 3

 Abridged Consolidated statement of c ash flowsf o r t h e h a l f y ea r e n d e d 3 0 J u n e 2 01 3

Business segment reportf o r t h e h a l f ye a r e n d ed 3 0 J u n e 20 1 3

N o t es t o t h e c o n s o l i d at e d u n a ud i t ed f i n a n ci a l s t a te m e n tsf o r t h e h a l f y ea r e n d ed 3 0 J u n e 20 1 3

C o n so l i d at e d s t a t e me n t o f c h a n g e s i n e q u i ty    f o r t h e h a l f y ea r e n d e d 3 0 J u n e 2 01 3

Directors:D r P a ul C h im e dz a* ( Chairman) , Mr Chakanyuka G. K arase (Vice Chairperson) , Mr Justin M. Mutasa ( Group Chief Executive) , Dr. Charl es M. B. Utete, Dr. Munyarad zi K ereke,

Brig -Gen Epmarcus K anhang a ( Rtd ) *, Dr. Nyasha Mad zing ira, Mr. Joseph S. Mand izha, Mr. Rung amo J. Mb ire, Mr. Del ma Lupepe, Mr A l exand er K aneng oni

Z I MPA PE R S ( 19 8 0) L I MI T EDU N AU D IT E D R ES U LT S F O R T H E HA L F Y EA R E N DE D 3 0 J UN E 2 013U N AU D IT E D R ES U LT S F O R T H E HA L F Y EA R E N D ED 3 0 J U NE 2 013

Dr. P. Chimedza

H-Metro 

B-Metro zimtravelBridalMagazine ridalMagazine

S uperbrand of the Y ear2012P ri nt Medi a

S uperbrand of the Y ear2012P ri nt Medi a

Superbrand of the Year201 2Print Media

S uperbrand of the Y ear2012R unner-up P ri nt Medi a

Unaudi ted Unaudited

6 mont hs 6 months

t o Ju ne 201 3 to Ju ne 2012

US $ US$

No n

d is t ri bu t ab l e A c cu m ul a te d

Share c ap ital reserve loss Total

US$ US$ US$ US$

N e ws p ap e rs C o mm e rc i al B r oa d ca st i ng C o rp or a te C o ns o li d at e d

Printin g P rinting

US$ US$ U S$ US$ US$

Unaudited Unaudited

6 mont hs 6 months

to Ju ne 2013 to Ju ne 2012

US$ US$

Net cash flows from operat ions 1,2 13,2 10 53 8,42 2

Net cash us ed in investing a ctivities ( 1,160 ,714 ) (1 ,038, 207)

Net cash (used in)/ from financing ac tivities (439 ,488 ) 9 7,68 2

NET DECREASE IN CASH AND CASH EQUI VAL ENTS (386,992) (4 02,103)

C A SH A N D C A SH E QU I VA L EN T S A T TH E B E G IN N IN G O F TH E P E R I OD ( 2, 15 7 ,0 08 ) ( 1 ,1 5 7, 8 50 )

C AS H AN D CA SH EQ UI VA LE NT S AT T HE E ND O F TH E P ER IO D ( 2, 54 4, 00 0) ( 1, 55 9, 95 3)

Balance at 1 January, 2012 57, 600 11, 398, 823 (3, 730, 944) 7,72 5,479

To ta l c om pr eh en si ve i n co me f o r t he p e r io d - - ( 1, 11 2, 17 1) ( 1, 11 2, 17 1)

Clas sification to reta ined ea rnings - (4 00,0 00) 400, 000 -

Balance at 30 June, 2012 57, 600 10, 998, 823 (4, 443, 115) 6,61 3,308

Balance a t 31 Dec em ber, 2012 57,6 00 10, 963, 423 (3, 233, 358) 7,78 7,665

To ta l co mp re he ns iv e i nco me f or t he p e ri od - - 3 57 ,5 96 3 57 ,5 96

Balance at 30 June, 2013 57,6 00 10, 963, 423 (2, 875, 762) 8,14 5,261

The c om m erc ial print ing s egm ent is inv olv ed in t heprint ing of book s , la bels , s ec urit y doc um ent s , dia ries ,

c a lenda rs a nd of f ering of origina t ion s erv ices . The news pa per s egm ent is inv olv ed in newspa per a nd

m a ga z ineprint ing a nd publis hing. The broa dc a st ing s egm ent is a c om m erc ial f ree- t o- a ir ra dio s t at ion.

The c orpora t es egm ent c om pris es H ea d Of f ic ea dm inis t ra t iv eopera t ions .

Reven u e 19, 105, 827 1, 835, 777 1,42 2,60 0 - 2 2,36 4,204

Resu l ts

Segment ( loss )/ p rofit 1, 772, 309 (15 1,58 4) (179, 778) (41 7,463 ) 1,023 ,484

Net finance cost (523, 658)

Profit on sa le of fixed ass et s 1 ,925

Exchange gain 1 ,720

Tax expense (145, 875)

Profit for the period 357 ,596

Oth er i n fo rmati on

Segment as set s 20, 236, 640 7, 375,2 75 1,74 6,499 1,5 82,7 89 3 0,941 ,203

Segment l iabilities 13, 109, 855 4, 098,4 20 82 0,940 1,8 91,6 78 1 9,920 ,893

Deferred t ax liabilit y 2,875 ,049

Capita l expendit ure 1, 185, 519 - 53 ,389 - 1,238 ,908

Depreciation 419, 703 1 08,9 96 67 ,562 - 596 ,261

1 . GENERAL INFORMATION

1 .1 Natu re o f b u si ness

Zim ba bweNews pa pers ( 1 9 8 0 ) L im it ed a nd it s s ubs idia ries a re inc orpora t ed in Zim ba bwe. The Group' s

m a in bus ines s is t ha t of news paper propriet ors , print ers a nd publis hers . The regis t ra t ion num ber of the

c om pa ny is 6 0 0 /B2 8 0.

1 .2 Cu rren c y

The Group' s f unc t iona l a nd pres ent a t ion c urrenc y is t he Unit ed Sta t es dolla r ( "US$ ")

2 . ACCOU NTING POL ICIES

2 .1 Basi s o f p rep arati o n

This int erim report c om plies wit h the requirem ent s of I AS 3 4 . The s a m ea c c ount ing polic ies a nd m et hods

of m ea s urem ent a nd rec ognition a s t hos e a pplied in the 2 0 1 2 a nnua l f ina nc ia l st a t em ents ha v e been

f ollowed in prepa ring t his int erim report .

3 . ACCOU NTSRECEIVABL E

Trade rec eivables 5,86 5,51 5 4,964 ,804

Other receivables 2,65 2,02 0 2,601 ,015

less: allowance for credit los ses (256, 771) (262, 289)

8,26 0,76 4 7,303 ,530

4. ACCOUNTSPAYABLE

Trade 43 5,03 0 685 ,974

Other 6,57 4,77 9 5 ,785 ,673

7,00 9,80 9 6 ,471 ,647

5. RELATED PARTY PAYABLES

R e la t ed p a rt y N a tu r e o f r e la t io n sh i p B a la n ce s d u e t o r e la te d p a rt i es

Zimpapers Medical Aid Soc iet y Guarantor 1 ,223 ,522 315, 165

Zimpapers Pension Fund Member 3 ,557 ,877 3, 788, 176

4 ,781 ,399 4, 103, 341

Ad o l f AMajo me (Mr)

(Co mp an y Sec retary)

*OutgoingDirectors