TIDMCMB
RNS Number : 5122M
Cambria Africa PLC
14 September 2023
Cambria Africa Plc
("Cambria" or the "Company")
Interim Results (the "Results")
EPS of 0. 01 US cents and NAV 1.06 US cents
For the 6 Months ended 28 February 20 23
Cambria Africa PLC ( AIM:CMB ) ("Cambria" or the "Company") is
pleased to announce its interim results for the six months ended 28
February 20 23 (the "Period"). A copy of this announcement is
available on the Company's website ( www.cambriaafrica.com ). With
the publishing of the Group`s FY 2022 and HY 2023 results, the
suspension of the Company`s shares on the AIM is expected to be
lifted at 7.30am on 15 September 2023.
Profit after tax decreased by 59% to US$99,000 for the 6 months
ended 28 February 2023 compared to $240,000 achieved in the same
period in 2022. This was due to a decline in revenue and earnings
contributions from Tradanet. Tradanet`s performance was impacted by
the slower growth in the US dollar value of its loan processing
portfolio which value slowed as a consequence of inflation and the
devaluation of Zimbabwe's currency (ZWL) . Tradanet's revenues were
further adversely impacted by liquidity constraints in the banking
sector. Autopay also experienced a decline in the real value of its
Payroll processing revenues caused by the depreciation of ZWL
relative to the US dollar.
The Group's Net asset value of $5.76 million remained in line
with the audited NAV reported for the financial year ended
31 August 2022 of $5.75 million.
Half Year 2023 Results Highlights
--------------------- ------------------------- -------
6 Months ended 28 February 2023 (US$'000) 2023 2022 Change
--------------------------------------------- --------------------- ------------------------- -------
- Revenue 451 724 (38%)
- Operating costs 323 448 28%
- Consolidated EBITDA 128 299 (57%)
- Consolidated Profit after tax (PAT) 99 240 (59%)
- PAT attributable to owners of the Company 28 46 (39%)
- Central costs 21 13 (62%)
- EPS - cents 0.01 0.01 -
- NAV 5,763 6,313 (9%)
- NAV per share - cents 1.06 1.16 (9%)
- Weighted average of shares in issue 544,576 544,576 -
- Shares in issue at year end 544,576 544,576 -
Divisional:
- Payserv - consolidated PAT 121 251 (52%)
- Payserv - consolidated EBITDA 149 305 (51%)
- Millchem - EBITDA - 3 (100%)
Group Highlights HY 2023:
-- Net Equity (NAV) decreased by 9% from US $6.313 million (1.16
US cents per share) in HY 2022 to $5.763 million (1.06 US cents per
share) in HY 2023.
-- Group revenue decreased by 38% compared to the prior period
from $724,000 to $451,000. This is mainly due to Tradanet revenues
decreasing as a result of declining loan advances by CABS in United
States dollar terms during the period.
-- Consolidated EBITDA was 57% lower in HY 2023 at $128,000 compared to $299,000 in HY 2022.
Net Equity (Net Asset Value)
The company's net asset value reduced by 9% from $6.313 million
at HY 2022 to $5.763 million at HY 2023. The HY2023 NAV corresponds
with the audited NAV at 31 August 2022 of $5,75 million.
Components of NAV at 28 February 2023
The Group NAV of $5.763 million as at the end of HY 2023
consists of the following tangible and intangible assets:
Building and properties valued at $2.3 million - The valuation
was prepared by Hollands Harare Estate Agents in January 2022.
Holland conducted the previous valuations of the prominently
located commercial office space and its equally well-positioned
vacant plot in Harare's Mount Pleasant Business Park.
Investment in Radar Holdings Limited - 9.74% or 4.98 million
shares valued at US $1.743 million (net of minority interests)
based on 35 US cents per equivalent Radar share. In the post
balance sheet period, the Company conditionally agreed to sell its
78.2% shareholding in A.F. Philips (Pvt) Ltd ("AFP") for a sum of
US $1.743 million (35 US cents per equivalent Radar Share) in cash.
The sale is subject to conditions precedent which the Company has
reasonable cause to believe will be met and that the full purchase
price will be realized at the holding Company level.
USD Cash and Cash Equivalents - US dollar cash totalling $1.36
million.
Old Mutual and Nedbank shares - the Company holds 204,047 Old
Mutual Limited common shares that were suspended on the Zimbabwe
Stock Exchange (ZSE) on 31 July 2020 and valued on its FY 2022
Statement of Financial Position at US $122,820 based on the closing
price of Old Mutual Limited on the Johannesburg Stock Exchange at
the year end. By way of an unbundling by Old Mutual in November
2021, the company received 2,692 Nedbank shares, which are retained
in Zimbabwe. The total value of this portfolio was $168,120 based
on the Johannesburg Stock Exchange (JSE) closing price`s as at 11
September 2023.
Goodwill - The Company has a goodwill value of $717,000 on its
Statement of Financial Position relating to its investment in the
Payserv group of Companies. The Company believes this is a fair
assessment of the intangible asset despite the impact of the
decisions made by Zimbabwe`s banking institutions against using its
payment platforms. Turnaround opportunities are being explored and
are more recently evidenced by the granting to Multi-Pay Solutions
(Pvt) Ltd (Multi-Pay Solutions) the exclusive rights to use,
distribute, and operate Paynet Software in the Southern African
Development Community (SADC). Payserv Africa will continue to
operate Paynet outside of the SADC. Tradanet, in which the Company
holds an effective 51% interest, is the largest contributor to the
Company's earnings. Tradanet processes microloans on behalf of
CABS, Zimbabwe's largest Building Society. At their peak in 2019,
these microloans comprised about a third of the banks assets and
the Directors believe that a return to those levels is fully
conceivable. Accordingly, the Company continues to believe that
Payserv's intellectual property value and the amalgamation of the
above exceeds the book value of the goodwill.
Chief Executive's Report
The Company has released its A nnual R eport for the financial
year ended 31 August 202 2 simultaneously with its 2023 half year
results. As covered in my CEO report attached to the audited year
end results , Cambria's story is now focused on realizing its NAV.
Investors might find value in examining our estimate of realizable
NAV at US $7. 5 million (1. 4 US cents per share). Our estimate
draws from the following actual and anticipated components:
-- Cash : As at the half year ended 2023, the Group held cash
reserves of US$1.36 million. As at 31 August 2023, in addition to
Zimbabwe-held US dollar-denominated cash, shares and gold coins ,
the Company holds a Fixed Deposit of $1.4 million in Mauritius,
yielding 5% per annum.
-- Commercial Property: This is represented by the prominently
located Mt. Pleasant Business Park Commercial Property valued
annually by Hollands Harare Estate Agents at $2.3 million.
-- Recovery of Legacy Debts : The Company is actively pursuing
the recovery of "Legacy Debts" or "Blocked Funds" owed by our
Zimbabwe subsidiaries to the holding companies. As at 31 August
2023, we've successfully recovered US$407,350, leaving an
outstanding balance of $1.2 million held by the Ministry of
Finance. These funds, initially held by the Reserve Bank in ZWL on
a one-to-one basis with the USD, were marked down to a negligible
value in our FY 2021 accounts based on the official exchange rate.
However, post FY 2022, the Ministry of Finance began repaying these
debts and assures us of the balance, as funds become available. As
a result, our NAV after the financial year end will see an
increase, accounting for the recovered debts.
-- Listed Portfolio Value : We aim to realise the value of the
204,047 Old Mutual shares and 2,692 Nedbank shares by transferring
these shares to the South African register. The total value of this
portfolio was $155,132 based on JSE closing prices on 28 August
2023 and $168,120 as at 11 September 2023.
-- Sale of Radar equivalent shares : At the holding Company
level, we will, realise $1.743 million from the sale of our
indirect stake in Radar, subject to fulfilment of the outstanding
conditions precedent to the agreement of sale.
-- Intellectual Property Value : The Board is committed to
deriving maximum value from our intellectual property, both in our
current operations and future endeavours. The Company's Statement
of Financial Position lists a goodwill value of $717,000. Our
assessment is that this represents the baseline value of the
Company's intellectual property, considering Tradanet's historical
profitability and Paynet's potential profits from its proposed
agreement with Multi-Pay.
These estimates, culminating in a projected NAV of US $7.5
million, come with the following considerations:
1. Maintenance of stable commercial real estate prices in Harare
and successful sales realization at the holding Company level.
2. Successful completion of the Radar Sale agreement.
3. Repayment of US $1.2 million in Legacy Debts.
4. Effective utilization of intellectual properties for profit.
5. The resumption of fungibility of dual-listed shares.
We remain cautiously optimistic about achieving full value for
the Company's assets beyond its NAV. While we still see value in
our listing, the Board is considering whether to maintain its
listing. With the publishing of the Group`s FY 2022 and HY 2023
results, the suspension of the Company`s shares on the AIM will be
lifted. This should enable shareholders to trade with a
comprehensive understanding of the investment landscape confronting
Cambria. At the time of suspension, Cambria shares were valued at
0.027p, contrasting with a book NAV of 0.084p and our estimate of
1.35 US cents per share or 1.04p per share. Shareholders must
determine whether the market has aptly gauged the discount to the
Company's book NAV and management's estimates of realizable NAV,
which we are committed to achieving.
Samir Shasha
12 September 2023
Contacts
Cambria Africa Plc www.cambriaafrica.com
Samir Shasha +44 (0)20 3287 8814
WH Ireland Limited www.whirelandplc.com/capital-markets
James Joyce / Sarah Mather +44 (0) 20 7220 1666
Cambria Africa Plc
Interim consolidated income statement
For the six month period ended 28 February 2023
Unaudited Unaudited Audited
6 months 6 months Year
to to to
28-Feb-23 28-Feb-22 31-Aug-22
US$'000 US$'000 US$'000
------------------------------- ------------------------ ---- --------------------- ---- -------------------------
Revenue 451 724 920
Cost of sales - (64) (22)
------------------------------- ------------------------ ---- --------------------- ---- -------------------------
Gross profit 451 660 898
Operating costs (323) (448) (623)
Other income - 39 69
Exceptionals - (12) (212)
------------------------------- ------------------------ ---- --------------------- ---- -------------------------
Operating profit 128 239 132
Finance income 11 8 12
Finance costs - (7) (5)
Net finance income 11 1 7
------------------------------- ------------------------ ---- --------------------- ---- -------------------------
Profit before tax 139 240 139
Income tax (40) - (144)
------------------------------- ------------------------ ---- --------------------- ---- -------------------------
Profit/(loss) for the period 99 240 (5)
=============================== ======================== ==== ===================== ==== =========================
Attributable to:
Owners of the company 28 46 (178)
Non-controlling Interests 71 194 173
Profit/(loss) for the period 99 240 (5)
=============================== ======================== ==== ===================== ==== =========================
Earnings/(loss) per share
Basic and diluted earnings/(loss)
per share (cents) 0.01c 0.01c (0.03c)
Earnings per share - continuing operations
Basic and diluted earnings/(loss)
per share (cents) 0.01c 0.01c (0.03c)
Weighted average number of shares
for EPS 544,576 544,576 544,576
Cambria Africa Plc
Interim consolidated statement of comprehensive income
For the six month period ended 28 February 2023
Unaudited Unaudited Audited
6 months 6 months Year
to to to
28-Feb-23 28-Feb-22 31-Aug-22
US$'000 US$'000 US$'000
------------------------------------------ ---------- ---------- ----------
Profit/(loss) for the period 99 240 (5)
Other comprehensive income
Items that will not be reclassified
to Statement of Profit or Loss:
Foreign currency translation differences
for overseas operations (10) (51) (424)
Total comprehensive profit/(loss)
for the period 89 189 (429)
=========================================== ========== ========== ==========
Attributable to:
Owners 18 (5) (602)
Non-controlling interests 71 194 173
Total comprehensive profit/(loss)
for the period 89 189 (429)
=========================================== ========== ========== ==========
Cambria Africa Plc
Interim consolidated statement of financial position
As at 28 February 20 23
Unaudited Unaudited Audited
Group Group Group
28-Feb-23 28-Feb-22 31-Aug-22
US$'000 US$'000 US$'000
-------------------------------- ---------------------------- ---------- ----------
Property, plant and equipment 2,305 2,311 2,306
Goodwill 717 717 717
Intangible assets - 1 -
Financial assets at fair value
through profit and loss 152 - 155
Total non-current assets 3,174 3,029 3,178
--------------------------------- ---------------------------- ---------- ----------
Inventories 8 160 8
Financial assets at fair value
through profit and loss 15 219 28
Trade and other receivables 172 348 142
Cash and cash equivalents 1,361 1,574 1,263
Assets classified as held for
sale 2,228 2,228 2,228
Total current assets 3,784 4,529 3,669
--------------------------------- ---------------------------- ---------- ----------
Total assets 6,958 7,558 6,847
================================= ============================ ========== ==========
Equity
Issued share capital 77 77 77
Share premium account 88,459 88,459 88,459
Revaluation reserve (190) (190) (190)
Foreign exchange reserve (11,138) (10,785) (11,128)
Non- distributable reserves 2,371 2,371 2,371
Accumulated losses (73,816) (73,619) (73,844)
--------------------------------- ---------------------------- ---------- ----------
Equity attributable to owners
of the company 5,763 6,313 5,745
Non-controlling interests 496 600 425
Total equity 6,259 6,913 6,170
================================= ============================ ========== ==========
Liabilities
Loans and borrowing - 106 -
Trade and other payables 40 89 -
Provisions - - -
Deferred tax liabilities 189 189 188
Total non-current liabilities 229 384 188
--------------------------------- ---------------------------- ---------- ----------
Current tax liabilities 134 (1) 141
Loans and borrowings - - -
Trade and other payables 336 262 348
Liabilities for discontinued
operation - - -
-------------------------------- ---------------------------- ---------- ----------
Total current liabilities 470 261 489
--------------------------------- ---------------------------- ---------- ----------
Total liabilities 699 645 677
================================= ============================ ========== ==========
Total equity and liabilities 6,958 7,558 6,847
================================= ============================ ========== ==========
Cambria Africa Plc
Interim consolidated statement of changes in equity
For the six month period ended 28 February 2023
Foreign
Share Share Revaluation Exchange Accumulated Non-distributable Non-controlling
US$'000 Capital Premium Reserve Reserve Losses Reserve Total Interest Total
------------------ -------- -------- ------------ --------- ------------ ------------------ ------ ---------------- ------
Balance at 31 (73,66 6,31 6,79
August 20 21 77 88,459 (190) (10,734) 6 ) 2,371 7 477 4
-------- -------- ------------ --------- ------------ ------------------ ------ ---------------- ------
Profit for the
period - - - - 46 - 46 1 94 240
Foreign currency
translation
differences for
overseas
operations - - - (51) - - (51) - (51)
-------- -------- ------------ --------- ------------ ------------------ ------ ---------------- ------
Total
comprehensive
loss for
the year - - - (51) 46 - (5) 1 94 18 9
-------- -------- ------------ --------- ------------ ------------------ ------ ---------------- ------
Contributions
by/distributions
to owners of the
Company
recognised
directly in
equity
( 71
Dividends paid - - - - - - - ) ( 71)
-------- ------
Total
contributions by
and
distributions to
owners of the ( 71 ( 71
Company - - - - - - - ) )
(7
Balance at 28 (10, 3,619
February 20 22 77 8 8,459 (190) 785 ) ) 2,371 6,312 60 0 6,912
======== ======== ============ ========= ============ ================== ====== ================ ======
Foreign
Share Share Revaluation exchange Accumulated Non-Controlling
US$000 Capital premium reserve reserve losses NDR Total interests Total
---------------------------- -------- -------- ----------- --------- ----------- ------- ----------- ------------------- -----------
Balance at 1 September (10,7
2021 77 88,459 (190) 34 ) (73,666) 2,371 6,317 477 6,794
-------- -------- ----------- --------- ----------- ------- ------- -------------- -----------------
Profit/(loss) for the year - - - - (178) - (178) 173 (5)
Foreign currency translation
differences
for overseas operations - - - (424) - - (424) - (424)
Foreign currency translation
differences for overseas
operations
- NCI - - - 30 - - 30 (30) -
-------- -------- ----------- --------- ----------- ------- ------- -------------- -----------------
Total comprehensive income
for the year 77 88,459 (190) (11,128) (73,844) 2,371 5,745 620 6,365
Contributions
by/distributions
to owners of
the Company recognised
directly
in equity
Dividends paid to minorities - - - - - - - (195) (195)
-------- -------- ----------- --------- ----------- ------- ------- -------------- -----------------
Total contributions by and
distributions to owners of
the Company - - - - - - - (195) (195)
---------------------------- -------- -------- ----------- --------- ----------- ------- ------- -------------- -----------------
Balance at 31 August 2022 77 88,459 (190) (11,128) (73,844) 2,371 5,745 425 6,170
============================ ======== ======== =========== ========= =========== ======= ======= ============== =================
Foreign
Share Share Revaluation Exchange Accumulated Non-distributable Non-controlling
US$'000 Capital Premium Reserve Reserve Losses Reserve Total Interest Total
------------------ -------- -------- ------------ --------- ------------ ------------------ ------ ---------------- ------
Balance at 1
September 20 22 77 88,459 (190) (11,128) (73,844) 2,371 5,745 425 6,170
-------- -------- ------------ --------- ------------ ------------------ ------ ---------------- ------
Profit for the
period - - - - 28 - 28 71 99
Legacy debt
revaluation - - - 75 - - 75 - 75
Foreign currency
translation
differences for
overseas
operations - - - (85) - - (85) - (85)
-------- -------- ------------ --------- ------------ ------------------ ------ ---------------- ------
Total
comprehensive
(loss)/income
for the period - - - (10) 28 - 18 71 89
-------- -------- ------------ --------- ------------ ------------------ ------ ---------------- ------
Contributions
by/distributions
to owners of the
Company
recognised
directly in
equity
Dividends paid - - - - - - - - -
-------- ------
Total
contributions by
and
distributions to
owners of the
Company - - - - - - - - -
(7
Balance at 28 3,816
February 20 23 77 8 8,459 (190) (11,138) ) 2,371 5,763 496 6,259
======== ======== ============ ========= ============ ================== ====== ================ ======
Cambria Africa Plc
Interim consolidated statement of cash flows
For the six month period ended 28 February 20 23
Unaudited Unaudited Audited
28-Feb-23 28-Feb-22 31-Aug-22
US$'000 US$'000 US$'000
----------------------------------------- ---------- ---------- ------------
Cash generated from operations 128 144 495
Taxation paid (43) (105) (111)
------------------------------------------ ---------- ---------- ------------
Cash generated from operating
activities 85 39 384
------------------------------------------ ---------- ---------- ------------
Cash flows from investing activities
Proceeds on disposal of property,
plant and equipment 15 15 17
Purchase of property, plant
and equipment - - (6)
Non-cash proceeds from scrip
dividend - - (33)
Interest received 11 8 12
------------------------------------------ ---------- ---------- ------------
Net cash (utilized in)/ generated
investing activities 26 23 (10)
------------------------------------------ ---------- ---------- ------------
Cash flows from financing activities
Dividends paid to non-controlling
interests - (71 ) (195)
Interest paid - ( 7 ) (5)
Legacy debt repayment 75 - -
Loans repaid - - (100)
Net cash (utilized) by financing
activities 75 ( 78 ) (300)
------------------------------------------ ---------- ---------- ------------
Net (decrease)/ increase in
cash and cash equivalents 186 (128) (74)
Cash and cash equivalents at
the beginning of the period 1,263 1 ,656 1,656
Foreign exchange (88) ( 194 ) (467)
------------------------------------------ ---------- ---------- ------------
Net cash and cash equivalents
at the end of the period 1,361 1, 574 1 ,263
========================================== ========== ========== ============
Cash and cash equivalents as
above comprise the following
Cash and cash equivalents attributable
to continuing operations 1,361 1,574 1, 263
------------------------------------------ ---------- ---------- ------------
Net cash and cash equivalents
at 31 August 1,361 1, 574 1,263
========================================== ========== ========== ============
* A mounts include both continuing and discontinued
operations.
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END
IR FLFEEAEISLIV
(END) Dow Jones Newswires
September 14, 2023 12:00 ET (16:00 GMT)
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