RNS Number:6622U
ZCCM Invs.Hldgs PLC
27 January 2004
ZCCM Investments Holdings Plc
Incorporated in the Republic of Zambia
Directors' Quarterly Summary
incorporating Financial Results
for the quarter ended 30 September 2003
DIRECTORS
Mr G K Chibuye (Non-Executive)
Chairman of the Board
Mr D S Diangamo (Withdrawn 14 August 2003)
Acting Secretary to the Treasury
Ministry of Finance and National Planning
Dr S Musokotwane (Appointed Permanent Alternate
Acting Secretary to the Treasury Director to Mr D S Diangamo
Ministry of Finance and National Planning with effect from 24 July 2003)
Mr S Mpishi (Withdrawn 24 July 2003)
Permanent Secretary
Ministry of Mines & Minerals Development
Dr M W Lewanika (Appointed 24 July 2003)
Permanent Secretary
Ministry of Mines & Minerals Development
Dr A C J Sichinga (Withdrawn 24 July 2003)
Permanent Secretary
Ministry of Energy & Water Development
Mr G P Mukala (Appointed 24 July 2003)
Permanent Secretary
Ministry of Energy & Water Development
Dr D H Kalyalya
Deputy Governor - Operations
Bank of Zambia
Mr E Mutale
General Secretary
Mineworkers' Union of Zambia
1
Management Committee
General Manager
Vacant
Company Secretary
W S Musama Acting Chairman
Technical Investments Manager
J M D Patterson
Finance and Investments Manager
Z Zekko
Legal Investments Manager
J K Kaite
Technical Investments Officer
W K Katoto
Environmental Manager
J Makumba
Financial Analyst
K K Mulaisho Committee Secretary
2
ZCCM INVESTMENTS HOLDINGS Plc
and its subsidiary companies
DIRECTORS' QUARTERLY SUMMARY
The disposal of Smelterco in the last financial year ending 30 June 2003 has
significantly affected financial comparatives between the quarter ended 30
September 2003 and that ended 30 September 2002. In the quarter ended 30
September 2002, Smelterco contributed 66% to the group sales and 71% to
operational expenditure.
ZCCM - IH Group sales of K29,000 million was achieved during the quarter ended
30 September 2003 representing sales decline of 69% on the September 2002
quarter sales.
There was a corresponding reduction in group operational expenditure to K33,992
million during the quarter ended 30 September 2003 compared to K109,433 million
for the quarter ended 30 September 2002.
A net operating loss of K4,992 million was incurred in the quarter under review,
against a loss of K16,652 million in the quarter ended 30 September 2002.
The quarter under review has seen the group recording a higher net profit of
K22,007 million, compared to a profit of K10,749 million last year. This profit
was mainly attributed to an exchange gain of K16,502 million, compared to an
exchange loss recorded last year.
Subsequent to the quarter end, negotiations for the sale of certain assets of
Ramcoz between the GRZ/Ramcoz Negotiating Team and J & W representatives were
concluded resulting in the signing of the Agreements on 19th December 2003.
Completion of the sale is expected to be finalised before 31st January 2004.
By order of the Board
W S Musama
Company Secretary
Lusaka
23 January 2004
ZCCM INVESTMENTS
HOLDINGS PLC
GROUP PROFIT/( LOSS) ACCOUNT FOR THE QUARTER ENDED 30
SEPT 2003
QUARTER ENDED QUARTER ENDED
30 SEPT '03 30 SEPT '02
notes K' million K' million
Sales 1 29,000 92,781
Cost of sales 2 (33,992) (109,433)
Operating profit/(loss) (4,992) (16,652)
Other income 7,863 60,830
Exchange gain/(loss) 16,502 (22,963)
Environmental (258) (3,055)
expenses
Impairment of -
Investments
Interest charge (8) (9,985)
Interest income 2,367 781
Dividend receivable 3,403 3,698
Royalty on minerals (438) (359)
Profit/(loss) before 24,439 12,295
taxation
Income tax (2,432) (1,546)
Retained profit/(loss) 22,007 10,749
Notes:
1 & 2 Represents revenue /sales and administrative costs/cost
of sales for the Company and its subsidiaries.
3 The exchange rates applied are:
1 July 2003 US$ = K4,866.64 30 September 2003 US$ = K4778.61
1 July 2002 US$ = K4,516.12 30 September 2002 US$ = K4593.00
ZCCM INVESTMENTS HOLDINGS PLC
GROUP BALANCE SHEET As at 30 Sept As at 30 Sept
'03 '02
K' million K' million
Current assets
Bank & cash 51,585 48,535
Inventories 36,596 40,883
Metal debtors 0 0
Other debtors 273,991 266,531
------------- -------------
Total current assets 362,172 355,949
Current liabilities
Creditors
local 56,128 55,747
Overseas 0 53,267
Provisions 321,232 285,930
0
Taxation 6,118 8,667
Bank overdraft 1 104
------------- -------------
Total current liabilities 383,479 403,715
Net current assets/(liabilities) (21,308) (47,766)
Long term receivables 109,908 105,647
Investments 449,409 472,063
Fixed assets 46,201 30,262
Long term borrowings (1,300,775) (1,627,611)
Grants/others (11,102) (4,342)
Subordinated loan (865,445) (865,445)
------------- -------------
Total Net Liabilities (1,593,112) (1,937,192)
------------- -------------
Financed by:
Share capital 909 893
Reserves (1,594,021) (1,938,085)
------------- -------------
Total shareholders' funds (1,593,112) (1,937,192)
------------- -------------
ZCCM INVESTMENTS HOLDINGS PLC
GROUP CASH FLOW STATEMENT
Quarter ended Quarter ended
30 Sept '03 30 Sept '02
K' million K' million
Operating activities
Cash received from customers 4,787 57,741
Cash paid to suppliers and employees (31,955) (74,530)
---------- ----------
Net cash generated from operating activities (27,168) (16,789)
Interest received 2,367 791
Interest paid 8 -
Taxation paid (1,798) (570)
---------- ----------
577 221
Net cashflow from operating activities (26,591) (16,568)
Investing activities
Purchase of fixed assets (5,850) (13,816)
Proceeds from sale of fixed assets 0 214
Proceeds from sale of operating units 3,349 (7,331)
---------- ----------
(2,501) (20,933)
Financing activities
Long term borrowings received 3,372 35,015
Long term borrowing paid 0 (12,735)
Short term borrowings received 0 -
Short term borrowings paid 0
Grants 1,063 4,219
---------- ----------
Net cashflow from investing activities 4,435 26,499
Dividend received 3,403 4,257
---------- ----------
7,838 30,756
Net cash inflow/(outflow) for period (21,254) (6,745)
Cash balances at start of period
Cash and bank balances 58,046 55,175
Bank overdrafts (10) -
---------- ----------
58,036 55,175
Cash balances at end of period
Cash and bank balances 49,822 48,535
Bank overdrafts 0 (105)
---------- ----------
49,822 48,430
CORPORATE LOCATIONS
Registered Office UK Registrars
Mukuba Pension House CAPITA IRG Plc
First Floor Bourne House
5309 Dedan Kimathi Road 34 Beckenham Road
P O Box 30048 Beckenham
LUSAKA Kent BR3 4TU
Lusaka, 10101, Zambia England
Tel Numbers 260 (01) 221023 Tel No. 020 8639 2000
220351 Fax No. 020 8658 3430
220654
228833
Depository for American Shares
Fax Numbers 260 (01) 221057 JP Morgan Chase & Co
220449 60 Wall Street
220727 New York, NY 10260-0060
United States of America
E-mail:corporate@zccm-ih.com.zm
Tel No. 001 212 648 3207
Kitwe Office Fax No. 001 212 648 5104/5
Investments House
Kantanta Street
P O Box 20172
Kitwe
Tel Numbers 260 (02) 245008
245117
245118
245054
245160
245155
245319
245322
Fax Numbers 260 (02) 245363
245364
245473
E-mail:corporate@zccm-ih.com.zm
7
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