ZPI Unaudited results for HY ended 30 Jun 13.pdf

7/29/2019 ZPI Unaudited results for HY ended 30 Jun 13.pdf

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4 Inventories

Developed stands

Land under developmentO ce consum ables

The land is being developed so that it can be sold as residential stands.The projects are being carried out in Masvingo, Bulawayo and Harare. Themarket value of the developed land is USD7.9 million.

5 Trade and other receivables Trade receivables

Other receivables

Allowance for credit losses

Closing balance

6 Trade and other payables Trade payables

Other payables

7 Short-term loan

ZB Bank

The loan was obtained to fund the Tynwald Project in Harare which com-

menced in November 2012. A $1.5 million facility was established for thatpurpose against which draw downs were made. The loan is for a period oftwelve months at an interest rate of 18% per annum. The loan is secured

by rst mortgage bonds over three properties namely Old Shell House,Nicoz House and Wetherby House whic h are in Harare.

8 Income tax Current

Deferred

9 Signicant transactions

Additions to property, equipment and vehiclesProjects income

Short-term loans raised

10 Capital commitments Approved but not contracted

Contracted

Capital commitments will be funded from a combination of internal andexternal resources.

CASH FLOWS FROM OPERATINGACTIVITIESProt before taxAdjustment for non cash itemsInterest receivedCash ows before working capitalchangesWorking capital changes

Tax paid

Net cash inows from operations

CASH FLOWS FROM INVESTINGACTIVITIESPurchase of equipment and vehiclesPurchase of investment propertiesOther investmentsInterest receivedDividend receivedNet cash outows to investingactivities

CASH FLOWS FROM FINANCINGACTIVITIESProceeds from short-term borrowingsRepayment of short-term borrowings

Dividend paidNet cash outows to nancingactivitiesNET INCREASE IN CASH AND CASHEQUIVALENTS

CASH AND CASH EQUIVALENTSAT BEGINNING OF PERIOD

CASH AND CASH EQUIVALENTSAT END OF PERIOD

Unaudited6 months

ended30/06/2013

US$

1,661,80430,982

(125,502)

1,567,284(816,062)

751,222(249,896)

501,326

(411,725)-

(137,792)125,502

-

(424,015)

843,939(472,504)

(394,833)

(23,398)

53,913

93,533

147,446

Unaudited6 months

ended30/06/2012

US$

1,441,39192,015

(15,323)

1,518,083(344,554)1,173,529(166,709)

1,006,820

(32,561)(100,477)

(5,770)15,323

473

(123,012)

-(459,455)

(326,250)

(785,705)

98,103

378,488

476,591

Operating EnvironmentThe economic environment remained stable with year-on-year inationfalling from 2.98% in February to close the period at 1.87% in June 2013.Liquidity remained a major challenge showing no signs of improvementparticularly for the property sector. The sector experienced a signicantincrease in rent arrears and void space as some businesses ended upvacating, closing down or downsizing. Access to lines of credit for the sec torremained constrained with both local and foreign lines of credit eithertoo short and expensive for long-term property development projects orunavailable altogether.

Inspite of these challenges, t he Company posted positive results, achievingan operating prot of US$1.60 million compared to US$1.48 million, an 8%improvement over the same period last year.

Investment property performanceRental income was adversely aected by the constrained liquidity situationwith total rental income recording a 4% growth to US$1.94 million fromUS$1.86 million over the same period last year. Collection of rent alsoslackened due to the challenges being experienced in the economy anddropped to average 97% compared to 100% over the same per iod last year.Void ratio rose from 9.1% to 11.8%.

Portfolio debtors grew by 19% within the six months period to June 2013and have become a serious cause for concern. Rigorous eorts to collectand recover all outstanding debts are being pursued and will remain apriority focus area for the Company. A provision for doubtful debts ofUS$612,780 has therefore been made.

Financial performanceTotal revenue was US$3.65 million, a 24% increase from US$2.93 millionover the same period last year. Rental income contribution reducedsignicantly from a high of 70% in December 2012 to 53% in June 2013as projects income contribution to total income increased from 21% to43% over the same period. Total administration costs for the period underreview increased by 31% compared to the same period last year resulting inan operating prot of US$1.60 million. This was an 8% increase above theUS$1.48 million posted in the prior year.

Projects updateI am pleased to advise that your Companys strategy to diversify incomeand pursue development projects continues to bear fruit.

Zimre Park MasvingoA total of 153 stands out of 338 have been sold at a value of US$2.69million. In terms of land area, this represents 43% of the entire project. To-date, 54% of the project cost of US$4.96 million has been recovered. Salesare progressing slowly due to the general down-turn in the economy andthe lack of mortgage nance in particular. The expected total value of theproject at current market prices is US$6.96 million giving an expected returnof 41%. The standard of houses constructed in the development is excellentand the project has become the most upmarket residential suburb in theCity.

Tynwald Project HarareSince my last statement, the Tynwald Project has been completed and therst phase has been sold out. Partial compliance for the project has beenobtained from the City of Harare with full compliance expected by end ofSeptember 2013.

To-date, a total of 151 stands have been sold at a value of US$1.64 million.This represents 44% of the total project in terms of land area and 60% of theproject cost has been recovered. The total value of the project at currentprices is estimated at US$3.84 million, an expected return of 41%.

Disposal of the remaining project stands will commence at an appropriatetime.

DirectorateMessrs E A M Ndudzo and M Murape resigned from the Board during theperiod under review. On behalf of the Board, I would like to thank themfor their invaluable contributions to the Company. I also wish to welcomeMs Jean Maguranyanga and Mr Edwin Zvandasara who joined the Boardduring the same period.

DividendThe Board has resolved to pass the interim dividend in order to fund on-going projects and strategic asset purchases that t he Company is pursuing.

OutlookYour Company continues to actively seek and pursue opportunities todiversify and enhance the value of its property portfolio for the benet ofall stakeholders.

AppreciationI wish to thank all shareholders, stakeholders, management and sta for thesupport and hard work over the period under review and lastly my fellowBoard members for their support and wise counsel.

BD MothobiChairman

3 September 2013

1 Accounting policies

The same accounting policies and methods of computation have been

followed in the interim nancial statements as compared with the annualnancial statements for the year ended 31 December 2012.

2 Basis of presentation

The nancial statements are prepared on the historical co st basis except forinvestment property and held for trading investments which are shown at fairvalue.

3 Statement of compliance

The abridged interim nancial statements have been prepared in accordancewith IAS 34 - Interim Financial Reporting.

30/06/2013US$

5,566,401-

30,4925,596,893

30/06/2013

US$

310,691225,046535,737

411,7251,549,414

843,939

30/06/2013

US$

1,765,0091,582,6463,347,655

31/12/2012US$

3,908,7791,314,287

9,3925,232,458

30/06/2012US$

278,38253,159

331,541

32,561908,484

-

31/12/2012

US$

5,285,001850,134

6,135,135

1,561,824814,016

2,375,840(612,780)

1,763,060

335,897

157,653493,550

560,465

1,398,719558,332

1,957,051(555,809)

1,401,242

275,823

189,769465,592

189,030

CHAIRMANS STATEMENT ABRIDGED INTERIM STATEMENT OF CASHFLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2013

NOTES TO THE ABRIDGED INTERIM FINANCIALSTATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2013 (continued....)

NOTES TO THE ABRIDGED INTERIM FINANCIALSTATEMENTS


ABRIDGED INTERIM STATEMENT OF PROFIT OR

LOSS AND OTHER COMPRHENSIVE INCOME


RevenueFinance incomeOther incomeOther gains and losses

Administration expenses

Other operating expensesShare of loss of associateOperating prot

Fair value adjustments- held for trading investments

Prot before tax for the period

Income tax expense

Prot after tax for the period

Other comprehensive income

Total comprehensive income for the period

Earnings Per Share (EPS)

Basic EPS (cents)Diluted EPS (cents)Headline EPS (cents)

Unaudited6 months

ended30/06/2013

US$

3,508,13121,988

115,3272,655

3,648,101

(1,009,745)

(1,038,685)-

1,599,671

62,133

1,661,804

(535,737)

1,126,067

-

1,126,067

0.070.070.06

Note

8

Unaudited6 months

ended30/06/2012

US$

2,807,36415,323

112,847(1,719)

2,933,815

(758,874)

(682,855)(13,129)

1,478,957

(37,566)

1,441,391

(331,541)

1,109,850

-

1,109,850

0.060.060.07

Zimre Property Investments Limited

Registered O ce:6th Floor, Fidelity Life Tower,

5 Raleigh Street, HarareTel: 04 777139 / 777207 / 777157 / 748892

www.zimreproperties.co.zw

Turning Your

Dream Into

Realty

Property Investment

Property Management

Property Development

Property Valuations

PROPERTY SALES

Directors: BD Mothobi (Chairman), RG Muirimi (Vice Chairman), S Tembo, G Mushoma, E Zvandasara, J Maguranyanga, E Muvingi (Managing)

STATEMENT OF CHANGES IN EQUITY


Balance as at 31 December 2011


Dividend paid

Balance as at 30 June 2012

Balance as at 31 December 2012


Dividend paid

Balance as at 30 June 2013

ShareCapital

$

1,716,667

-

-

1,716,667

1,716,667

-

-

1,716,667

SharePremium

$

37,209,876

-

-

37,209,876

37,209,876

-

-

37,209,876

RetainedEarnings

$

7,539,637

1,109,850

(326,250)

8,323,237

13,673,741

1,126,067

(394,833)

14,404,975

TotalUS$

46,466,180

1,109,850

(326,250)

47,249,780

52,600,284

1,126,067

(394,833)

53,331,518

ASSETS

Non current assetsProperty and equipmentInvestment propertyInvestment in associate company

Current assetsInventoriesTrade and other receivablesHeld for trading investmentsCash and cash equivalents

Total assets

EQUITY AND LIABILITIES

EquityShare capitalShare premiumRetained earnings

Non current liabilitiesDeferred tax

Current liabilitiesTrade and other payables

Short term loan

Total liabilities

Total equity and liabilities

ABRIDGED INTERIM STATEMENT OF FINANCIAL

POSITION

AS AT 30 JUNE 2013

Unaudited

30/06/2013US$

836,65848,162,006

7,79249,006,456

5,596,8931,763,060

409,641147,446

7,917,040

56,923,496

1,716,66737,209,87614,404,97553,331,518

2,537,963

493,550

560,4651,054,015

3,591,978

56,923,496

Note

45

6

7

Audited

31/12/2012US$

461,07648,162,006

-48,623,082

5,232,4581,401,242

217,50893,533

6,944,741

55,567,823

1,716,66737,209,87613,673,74152,600,284

2,312,917

465,592

189,030654,622

2,967,539

55,567,823

Documents

ZPI Unaudited results for HY ended 30 Jun 13.pdf