Audited Abridged
Financial Results
For the year ended 30 September 2022
A D I V I S I O N O F A R T C O R P O R A T I O N L T D
T O T A L W R I T I N G S O L U T I O N S
The Battery of Choice
www.artcorp.co.zw
PERFORMANCE HIGHLIGHTS
VOLUMES | ||||||
REVENUE | INCREASED BY 3% | OVERALL | INCREASED BY 10% | PAPER | DECREASED BY 15% | |
GROSS PROFIT% | INCREASED BY 16% | EXPORT | INCREASED BY 12% | TIMBER | DECREASED BY 2% | |
GEARING | INCREASED BY 2% | BATTERIES | INCREASED BY 10% | STATIONERY | INCREASED BY 39% |
CHAIRMAN'S STATEMENT
It is a great pleasure to present the financial and strategic performance of Art Holdings Limited (ART) for the year ended 30 September 2022.
OPERATING ENVIRONMENT
The operating environment remained complex and challenging, characterised by high inflation, unstable exchange rates, rising commodity prices due to disruptions and rising tensions in the global economy. The anticipated economic recovery on the back of easing covid restrictions was dampened by the rapid depreciation of the local currency and the measures instituted by Government to control inflation, increase demand for the local currency and curb speculative borrowing. The hiking of interest rates affected market demand and impacted growth initiatives as businesses focused on value preservation.
The Zambian economy continued to recover following the fall in manufacturing output and slowing copper demand during the COVID period. The easing inflation and stability of the Kwacha enabled economic activity to improve during the period.
GROUP OVERVIEW
Paper
The capitalisation and restructuring of the Paper business progressed well during the year despite economic challenges. Installations were completed at the end of September and full commercial production is expected to start after optimisation in December 2022. Volumes overall for paper decreased by 15%. Paper export volumes increased by 5%. Power supply and the unavailability of sufficient local waste paper remain as the major challenges for the business. Partnerships concluded during the year with waste paper suppliers in Botswana and South Africa helped to sustain production.
Eversharp
Eversharp volumes increased by 39% compared to prior year as volumes continued to recover from last year following the easing of covid restrictions. Export volumes increased by 177%. Opportunities in the market could not be maximised due to the foreign currency auction allocation backlog. Foreign currency sales in the informal sector enabled the division to improve raw material and spare parts availability in the second half of the year. Stationery trading was resumed and contributed 10% of total sales.
Mutare Estates
Timber volumes were held at the same level as the prior year. Demand remained firm, however the environment necessitated changes in trading terms in order to preserve value and reduce credit risk.
The Group registered moderate growth during the period with its major business segment, batteries remaining resilient in both the local and export markets. The fragility of the Paper division under the current difficult economic conditions was evident during the period as the unit struggled to maintain volumes and profitability. Future proofing the Group by diversifying and consolidating the Paper units has been challenging and significant support from the Group's funders was required to enable the completion of the Paper Mill project in Kadoma. The increase in foreign currency sales in all the business units helped to sustain raw materials imports. The business also benefited from the growing informal sector which has better payment terms.
FINANCIAL PERFORMANCE
SUSTAINABILITY REPORTING
The Group's commitment and contribution to sustainability continues to be embedded in its strategy which is aligned and reported in accordance with the Global Reporting Initiative (GRI) protocols. During the year the Group's practices were strengthened through training and the adoption of tailored risk frameworks that ensure that supportive controls are put in place.
DIVIDEND
The Company is not in a position to declare a dividend.
In terms of IFRS and ZSE regulations, the Group is required to report and provide commentary on the Group's Annual Inflation adjusted financial statements, users are once again advised to exercise caution in the use of these Group Annual Inflation adjusted financial statements.
The Group recorded revenues of ZWL 19,6 billion during the year, an increase of 3% in inflation adjusted terms from prior year and 185% in historical terms as prices were adjusted in line with inflation and volumes overall increased by 10%. Export volumes increased by 12% compared to prior year driven by strong demand in Zambia.
The Group's regional drive continues to be anchored by the strong performance of batteries in Zambia and Malawi. Foreign currency shortages persisted in Malawi whilst growth in Mozambique remains slow as competition from imported batteries increased. Gross margins recovered during the period on the back of timeous price adjustments and cost containment. Demand for batteries, paper and stationery recovered although significant downtime in the tissue business due to machine breakdowns and power cuts affected production output consequently impacting sales particularly on the export market.
The Group recorded significant exchange losses amounting to ZWL 3.6 billion as the local currency depreciated by 607% during the period. Fair value adjustments on investment property and biological assets amounted to ZWL 4.9 billion. The Group managed to deliver a profit after tax of ZWL 1,46 billion compared to the loss of ZWL 2.5 billion in the prior year. The performance was overshadowed by the increase in finance costs especially towards the end of the year following the hiking of interest rates. The Group's statement of financial position was impacted by the significant movement in the exchange rate and exposure from project related obligations. The completion of the Paper Mill installation and restructuring of the Group's borrowings at year end will ease the working capital strain.
The debt to equity ratio increased from 10% to 12% at year end.
DIVISIONAL PERFORMANCES
Batteries
DIRECTORATE
Retirement
Dr Oliver Mtasa retired from the Board during the year. The Board and management take this opportunity to express their appreciation to him for his leadership and commitment to the Group over the years.
On the 25th of September 2022 Mr Y C Baik who had served the Board since 2017 sadly passed on. We pay tribute to his invaluable contribution and unwavering support during his tenure. It is through his dedication, leadership and perseverance that the Group has successfully turned around and grown its footprint in the region.
Appointment
The Board appointed Mr. Steven Mupfurutsa as an Independent Non-Executive Director with effect from 1 August 2022.
Mr Mupfurutsa holds a Bachelor of Accountancy (Honours) Degree from University of Zimbabwe. He completed his training at Deloitte & Touché and is a member of the Institute of Chartered Accountants of Zimbabwe.
The Board would like to congratulate Mr. Mupfurutsa on his appointment and wish him every success in his new role.
OUTLOOK
The operating environment is expected to remain challenging with the continued impact of the unfolding global recession. Government measures to contain inflation and stabilise the exchange rate will hopefully be reviewed in a manner that takes cognisance of the need to support the manufacturing sector. The elimination of the expensive local currency debt after year end has brought significant relief as the Group embarks on a journey of stabilisation and recovery with focus on cash generation, sustaining working capital improvement and optimally managing gearing levels. The Group is encouraged by the fruitful engagement that it has had with Government and resulting mitigatory measures put in place to support completion of its expansionary capital investment programme.
The battery performance during the period was affected by supply chain disruptions and availability of power in the first half of the year. Demand on the export market was strong and volumes grew by 12%. Liquidity constraints in the local market and foreign currency shortages in Malawi necessitated changes in trading terms in order to manage credit risk with a resultant impact on volumes. Projects to broaden the product range were temporarily deferred following the hiking of interest rates and decline in aggregate demand.
GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
INFLATION ADJUSTED | HISTORICAL | |||
FOR THE YEAR ENDED SEPTEMBER | 30 Sept | 30 Sept | 30 Sept | 30 Sept |
2022 | 2021 | 2022 | 2021 | |
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 |
APPRECIATION
I would like to express my sincere gratitude to our customers, suppliers, bankers and other key stakeholders, my fellow directors, management and the entire team at ART for the continued contribution and support during the period under review.
T U Wushe
CHAIRMAN
09 December 2022
GROUP STATEMENT OF FINANCIAL POSITION
INFLATION ADJUSTEDHISTORICAL
Revenue from contracts with customers Cost of sales
Gross profit
Other income
Selling and distribution expenses
Administration expenses
Total operating expenses
Operating profit before fair value adjustments & impairments
Share of associate profit
Fair value adjustments on investment property Fair value adjustments on biological assets Foreign exchange (loss)/gain
(Loss)/gain on disposal of disposal of non-current assets Fire loss
Net monetary loss
Revaluation deficit on property plant and equipment Fair value loss on Softex initial joint venture investment re-measurement
Profit/(loss) before interest and tax
Finance income
Finance costs
Profit/(loss) before tax
Income tax credit/(expense)
Profit (loss)/after tax
OTHER COMPREHENSIVE INCOME
Items that may not be reclassified subsequently to profit or loss:
Surplus on revaluation of property plant and equipment (net of tax)
Items that may be reclassified subsequently to profit/loss: Translation of foreign subsidiary
Total other comprehensive income for the year net of tax
Total comprehensive income/(loss) for the year
Basic Earnings per Share
Diluted Earnings per share
Headline Earnings per Share
19 615 200 | 19 016 818 | 11 079 454 | 3 885 531 |
(11 100 853) | (11 673 374) | (6 181 816) | (2 226 044) |
8 514 347 | 7 343 444 | 4 897 638 | 1 659 487 |
250 688 | 111 548 | 256 077 | 23 310 |
(2 230 788) | (1 501 009) | (919 725) | (295 707) |
(4 901 719) | (3 709 984) | (2 961 049) | (889 721) |
(7 132 507) | (5 210 993) | (3 880 774) | (1 185 428) |
1 632 528 | 2 243 999 | 1 272 941 | 497 369 |
22 507 | 33 167 | 9 050 | 7 420 |
1 619 856 | (208 143) | 3 063 450 | 170 891 |
3 258 340 | (726 031) | 4 660 119 | 40 335 |
(3 603 279) | 32 276 | (3 053 791) | 21 297 |
(12 013) | (19 700) | 386 | (3 040) |
(9 762) | (156) | (3 054) | (27) |
(847 727) | (540 375) | - | - |
- | (402 676) | - | - |
- | (512 342) | - | 57 692 |
2 060 450 | (99 981) | 5 949 101 | 791 937 |
1 841 | 2 861 | 809 | 684 |
(758 314) | (330 577) | (646 500) | (74 412) |
1 303 977 | (427 697) | 5 303 410 | 718 209 |
151 940 | (2 084 843) | (680 880) | 55 211 |
1 455 917 | (2 512 540) | 4 622 530 | 773 420 |
4 383 931 | 89 165 | 8 060 846 | 439 918 |
966 426 | 49 612 | 966 451 | 13 042 |
5 350 357 | 138 777 | 9 027 297 | 452 960 |
6 806 274 | (2 373 763) | 13 649 827 | 1 226 380 |
307.9 | (531.4) | 977.7 | 163.6 |
307.9 | (531.4) | 977.7 | 163.6 |
(814.7) | 8.7 | (656.0) | 119.5 |
AS AT SEPTEMBER | 30 Sept | 30 Sept | 30 Sept | 30 Sept | |
2022 | 2021 | 2022 | 2021 | ||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||
ASSETS | |||||
Non-current assets | |||||
Property, plant and equipment | 14 581 496 | 8 494 839 | 14 344 976 | 2 186 356 | |
Investment property | 4 006 115 | 2 386 259 | 4 006 115 | 627 303 | |
Goodwill | 324 002 | 324 002 | 89 394 | 89 394 | |
Biological assets | 5 109 057 | 1 871 112 | 5 109 057 | 491 880 | |
Right of use assets | 2 921 173 | 268 859 | 2 600 633 | 29 575 | |
Investment in joint venture and associate | 216 222 | 195 697 | 17 392 | 9 444 | |
27 158 065 | 13 540 768 | 26 167 567 | 3 433 952 | ||
Current assets | |||||
Inventories | 3 440 253 | 3 675 926 | 2 863 311 | 913 423 | |
Trade and other receivables | 2 408 915 | 1 562 714 | 2 408 383 | 408 215 | |
Cash and cash equivalents | 197 186 | 203 700 | 197 186 | 53 549 | |
6 046 354 | 5 442 340 | 5 468 880 | 1 375 187 | ||
TOTAL ASSETS | 33 204 419 | 18 983 108 | 31 636 447 | 4 809 139 | |
EQUITY AND LIABILITIES | |||||
Capital and reserves | |||||
Share capital | 9 331 | 9 331 | 47 | 47 | |
Share premium | 869 153 | 869 153 | 4 378 | 4 378 | |
Accumulated profit | 9 390 945 | 7 935 028 | 6 144 152 | 1 521 622 | |
Non-distributable reserves | 8 166 767 | 2 816 410 | 10 409 249 | 1 381 952 | |
18 436 196 | 11 629 922 | 16 557 826 | 2 907 999 | ||
Non-current liabilities | |||||
Interest-bearing loans and borrowings | - | 80 561 | - | 21 178 | |
Lease liability | 2 336 938 | - | 2 080 506 | - | |
Long term creditors | 1 170 754 | - | 1 170 754 | - | |
Deferred tax liabilities | 3 563 413 | 2 320 940 | 3 937 206 | 573 896 | |
7 071 105 | 2 401 501 | 7 188 466 | 595 074 | ||
Current liabilities | |||||
Trade and other payables | 4 242 641 | 2 699 719 | 4 557 898 | 775 352 | |
Provisions | 328 845 | 243 083 | 270 733 | 11 867 | |
Income tax payable | 351 194 | 736 659 | 351 194 | 200 377 | |
Lease liability | 584 235 | 180 797 | 520 127 | 31 554 | |
Interest-bearing loans and borrowings | 1 952 308 | 1 045 350 | 1 952 308 | 274 803 | |
Bank overdrafts | 237 895 | 46 077 | 237 895 | 12 113 | |
7 697 118 | 4 951 685 | 7 890 155 | 1 306 066 | ||
Total liabilities | 14 768 223 | 7 353 186 | 15 078 621 | 1 901 140 | |
TOTAL EQUITY AND LIABILITIES | 33 204 419 | 18 983 108 | 31 636 447 | 4 809 139 | |
Directors: Dr T. U. Wushe (Chairman) M. Macheka (Chief Executive Officer) *, T. I. Baik, A. M. Chingwecha*, S. Mupfurutsa, M. Oakley * Executive
Audited Abridged
Financial Results
For the year ended 30 September 2022
A D I V I S I O N O F A R T C O R P O R A T I O N L T D
T O T A L W R I T I N G S O L U T I O N S
The Battery of Choice
www.artcorp.co.zw
GROUP STATEMENT OF CHANGES IN EQUITY | GROUP SEGMENT RESULTS (CONT'D) | |||||||||||||||||||||||||||||||
HISTORICAL | ||||||||||||||||||||||||||||||||
Share | Share | Revaluation | Share | Foreign | Retained | |||||||||||||||||||||||||||
Capital | Premium | Reserve | Option | Currency | Earnings | Total | Sept-22 | Batteries | Stationery | Paper Plantations | Central | Adj & | Group | |||||||||||||||||||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | Admin | Eliminations | ||||||||||||||||||||||||
INFLATION ADJUSTED | ||||||||||||||||||||||||||||||||
Revenue - External | ||||||||||||||||||||||||||||||||
30-Sep-20 | 9 331 | 869 153 | 2 265 547 | 7 139 | 412 086 | 10 440 429 | 14 003 685 | customer | 10 863 656 | 1 745 771 | 2 387 496 | 432 706 | - | (4 350 175) | 11 079 454 | |||||||||||||||||
Operating profit before | ||||||||||||||||||||||||||||||||
Profit for the year | - | - | - | - | - | (2 512 540) | (2 512 540) | |||||||||||||||||||||||||
impairments & fair | ||||||||||||||||||||||||||||||||
Other comprehensive | ||||||||||||||||||||||||||||||||
income | - | - | 89 165 | - | 49 612 | - | 138 777 | value adjustments | 1 121 333 | 526 551 | (199 112) | 73 963 | (249 793) | - | 1 272 941 | |||||||||||||||||
Transfer between | Segment Assets | 11 196 098 | 1 399 395 | 7 693 937 | 10 003 415 | 1 343 602 | - | 31 636 447 | ||||||||||||||||||||||||
reserves | (7 139) | 7 139 | - | |||||||||||||||||||||||||||||
Segment liabilities | (5 035 584) | (737 685) | (3 895 563) | (1 258 214) (4 151 575) | - | (15 078 621) | ||||||||||||||||||||||||||
30-Sep-21 | 9 331 | 869 153 | 2 354 712 | - | 461 698 | 7 935 028 | 11 629 922 | |||||||||||||||||||||||||
Capital expenditure | (207 319) | (219 275) | (1 680 470) | (29 566) | (2 668) | - | (2 139 297) | |||||||||||||||||||||||||
Profit for the year | - | - | - | - | - | 1 455 917 | 1 455 917 | |||||||||||||||||||||||||
Depreciation | (171 572) | (29 136) | (46 212) | (26 370) | (30 145) | - | (303 435) | |||||||||||||||||||||||||
Other comprehensive | ||||||||||||||||||||||||||||||||
income | - | - | 4 383 931 | - | 966 426 | - | 5 350 357 | Sept-21 | ||||||||||||||||||||||||
Transfer between | ||||||||||||||||||||||||||||||||
reserves | - | - | - | External customer | 3 894 531 | 362 767 | 879 967 | 155 781 | - | (1 407 515) | 3 885 531 | |||||||||||||||||||||
30-Sep-22 | 9 331 | 869 153 | 6 738 643 | - | 1 428 124 | 9 390 945 | 18 436 196 | |||||||||||||||||||||||||
Operating profit before | ||||||||||||||||||||||||||||||||
Share | Foreign | impairments & fair | ||||||||||||||||||||||||||||||
Share | Share | Revaluation | Option | Currency | Retained | value adjustments | 573 226 | 70 772 | (130 494) | 7 352 | (23 487) | - | 497 369 | |||||||||||||||||||
Capital | Premium | Reserve | Reservve | Translation | Earnings | Total | ||||||||||||||||||||||||||
Finance cost | (7 902) | (617) | (4 537) | - | (61 356) | - | (74 412) | |||||||||||||||||||||||||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||||||||||||||||||||||||||
Segment Assets | 1 931 688 | 228 903 | 920 918 | 1 329 617 | 398 013 | - | 4 809 139 | |||||||||||||||||||||||||
HISTORICAL | Segment liabilities | (701 547) | (111 946) | (481 260) | (231 124) | (375 263) | - | (1 901 140) | ||||||||||||||||||||||||
Capital expenditure | (174 079) | (4 663) | (268 760) | (6 229) | (15 250) | - | (468 981) | |||||||||||||||||||||||||
30-Sep-20 | 47 | 4 378 | 908 758 | 36 | 20 234 | 748 166 | 1 681 619 | |||||||||||||||||||||||||
Depreciation | (116 541) | (11 733) | (29 999) | (9 686) | (15 422) | - | (183 381) | |||||||||||||||||||||||||
Profit for the year | - | - | - | - | - | 773 420 | 773 420 | |||||||||||||||||||||||||
Other comprehensive | SUPPLEMENTARY INFORMATION | |||||||||||||||||||||||||||||||
income | - | - | 439 918 | - | 13 042 | - | 452 960 | |||||||||||||||||||||||||
Transfer between | 1. | CORPORATE INFORMATION | ||||||||||||||||||||||||||||||
reserves | - | - | - | (36) | - | 36 | - | |||||||||||||||||||||||||
The abridged consolidated financial statements of Amalgamated Regional Trading (ART) Holdings Limited and its | ||||||||||||||||||||||||||||||||
30-Sep-21 | 47 | 4 378 | 1 348 676 | - | 33 276 | 1 521 622 | 2 907 999 | |||||||||||||||||||||||||
subsidiaries (collectively, the Group) for the financial year ended 30 September 2022 were authorised for issue | ||||||||||||||||||||||||||||||||
Profit for the year | - | - | - | - | - | 4 622 530 | 4 622 530 | |||||||||||||||||||||||||
in accordance with a resolution of the directors on 06 December 2022. ART Holdings Limited is incorporated in | ||||||||||||||||||||||||||||||||
Other comprehensive | the British Virgin Islands and its shares are publicly traded on the Zimbabwe Stock Exchange through its regional | |||||||||||||||||||||||||||||||
income | - | - | 8 060 846 | - | 966 451 | - | 9 027 297 | subsidiary ART Zimbabwe Limited. | ||||||||||||||||||||||||
Transfer between | The main activities of the Group were the manufacture and distribution of paper products, stationery, and lead acid | |||||||||||||||||||||||||||||||
reserves | - | - | - | |||||||||||||||||||||||||||||
batteries. The Group's principal place of business is 202 Seke Road, Graniteside, Harare. | ||||||||||||||||||||||||||||||||
30-Sep-22 | 47 | 4 378 | 9 409 522 | - | 999 727 | 6 144 152 | 16 557 826 | |||||||||||||||||||||||||
2. | BASIS OF PREPARATION | |||||||||||||||||||||||||||||||
GROUP STATEMENT OF CASH FLOWS | The abridged consolidated financial statements have been prepared in accordance with International Financial | |||||||||||||||||||||||||||||||
Reporting Standards (IFRS), and in the manner required by the Zimbabwe Companies and Other Business Entities | ||||||||||||||||||||||||||||||||
Act (Chapter 24:31) and the British Virgin Islands Companies Act for International Business Companies (Chapter | ||||||||||||||||||||||||||||||||
INFLATION ADJUSTED | HISTORICAL | 291), except for non-compliance with International Accounting Standard ("IAS") 21. | ||||||||||||||||||||||||||||||
For the year ended | 30 Sept | 30 Sept | 30 Sept | 30 Sept | The consolidated financial statements have been prepared under the current cost basis as per the provisions of IAS | |||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 29 "Financial Reporting In Hyper-inflationary Economies". The local accounting regulatory board, Public Accountants | ||||||||||||||||||||||||||||
and Auditors Board (PAAB) proclaimed all financial periods after 1 July 2019 to be reported under the hyper-inflation | ||||||||||||||||||||||||||||||||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | |||||||||||||||||||||||||||||
accounting basis. Therefore, the primary financial statements of the Group are the inflation adjusted and historical | ||||||||||||||||||||||||||||||||
CASH FLOW FROM OPERATING ACTIVITIES: | numbers have been provided as supplementary information. | |||||||||||||||||||||||||||||||
The sources of the price indices used were the Zimbabwe Statistical office from 2009 to September 2022. | ||||||||||||||||||||||||||||||||
Cash generated from operations | 3 026 264 | 1 864 694 | 2 278 740 | 517 724 | ||||||||||||||||||||||||||||
Interest income | 1 841 | 2 861 | 809 | 684 | Indices | Conversion Factor | ||||||||||||||||||||||||||
Finance costs | (634 419) | (232 749) | (578 537) | (67 893) | CPI as at 30 September 2022 | 12,713.12 | 1.000 | |||||||||||||||||||||||||
Income tax paid | (283 026) | (290 758) | (117 188) | (76 435) | CPI as at 30 September 2021 | 3,342,02 | 3.804 | |||||||||||||||||||||||||
Cash generated from operating activities | 2 110 660 | 1 344 048 | 1 583 824 | 374 080 | 3. FUNCTIONAL AND PRESENTATION CURRENCY | |||||||||||||||||||||||||||
INVESTING ACTIVITIES: | These financial statements are presented in Zimbabwe Dollars (ZWL) which is the Group's functional and presentation | |||||||||||||||||||||||||||||||
currency and all values are rounded to the nearest thousand (000), except when otherwise indicated. | ||||||||||||||||||||||||||||||||
Purchase of property plant and equipment | (2 428 471) | (1 655 752) | (2 139 297) | (468 981) | ||||||||||||||||||||||||||||
Costs capitalized to biological assets | (390 557) | (299 329) | (273 390) | (44 828) | 4. STATEMENT OF ACCOUNTING POLICY | |||||||||||||||||||||||||||
Acqusition of subsidiary net of cash | - | (298 279) | - | (57 726) | ||||||||||||||||||||||||||||
The accounting policies in the preparation of the 2022 financial year consolidated financial results are consistent | ||||||||||||||||||||||||||||||||
Proceeds on disposal of property plant and equipment | 101 950 | 11 446 | 5 628 | 2 844 | with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 30 | |||||||||||||||||||||||||||
Dividends received | 1 982 | 5 317 | 1 101 | 1 270 | September 2021. | |||||||||||||||||||||||||||
Cash utilised in investing activities | (2 715 096) | (2 236 597) | (2 405 958) | (567 421) | 5. BORROWINGS - INFLATION ADJUSTED | |||||||||||||||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||||||||||||||||||
Proceeds from borrowings | 1 699 172 | 1 219 840 | 1 188 330 | 264 800 | Sept-22 | Sept-21 | ||||||||||||||||||||||||||
Repayment of borrowings | (1 293 068) | (245 773) | (448 341) | (43 220) | ZWL 000's | Short-term | Long-term | Total | Short-term and | Long-term | Total | |||||||||||||||||||||
Cash generated from financing activities | 406 104 | 974 067 | 739 989 | 221 580 | ||||||||||||||||||||||||||||
and Overdraft | Overdraft | |||||||||||||||||||||||||||||||
Increase in cash and cash equivalents | (198 332) | 81 518 | (82 145) | 28 239 | Group | 2,190,203 | - | 2,190,203 | 1,091,427 | 80,561 | 1,171,988 | |||||||||||||||||||||
Cash and cash equivalents at the beginning of the year | 157 623 | 76 105 | 41 436 | 13 197 | The Borrowings are secured by non-current assets with a net book value of ZWL 7.611 billion (2021: ZWL 5.114 | |||||||||||||||||||||||||||
Cash and cash equivalents at the end of the year | (40 709) | 157 623 | (40 709) | 41 436 | billion). | |||||||||||||||||||||||||||
Comprising: | The average cost of borrowings is 209 % | |||||||||||||||||||||||||||||||
Cash resources | 197 186 | 203 700 | 197 186 | 53 549 | ||||||||||||||||||||||||||||
Overdrafts | (237 895) | (46 077) | (237 895) | (12 113) | ||||||||||||||||||||||||||||
Cash and cash equivalents at 30 September | (40 709) | 157 623 | (40 709) | 41 436 | DIRECTORS' RESPONSIBILITY | |||||||||||||||||||||||||||
GROUP SEGMENT RESULTS | ||||||||||||||||||||||||||||||||
financial statements, of which this Press Statement is an extract. | ||||||||||||||||||||||||||||||||
The Company's Directors are responsible for the presentation and fair presentation of the Group's consolidated | ||||||||||||||||||||||||||||||||
INFLATION ADJUSTED | These abridged Group financial statements are presented in accordance with the disclosure requirements of the | |||||||||||||||||||||||||||||||
Sept-22 | Batteries | Stationery | Paper | Plantations | Central | Adj & | Group | |||||||||||||||||||||||||
Zimbabwe Stock Exchange (ZSE) Listing requirements and in accordance with International Financial Reporting | ||||||||||||||||||||||||||||||||
Admin | Eliminations | Standards and the Zimbabwe Companies and Other Business Entities Act (Chapter 24:31). |
Revenue - External | |||||||||
customer | 18 118 182 | 2 958 824 | 4 261 760 | 776 641 | - | (6 500 207) | 19 615 200 | ||
Operating profit before | |||||||||
impairments & fair | |||||||||
value adjustments | 2 249 816 | 700 891 | (1 375 095) | 159 601 | (102 685) | - | 1 632 528 | ||
Finance costs | (36 500) | (931) | (26 140) | - | (694 742) | - | (758 314) | ||
Segment Assets | 12 139 000 | 1 494 763 | 7 761 424 | 10 003 796 | 1 805 436 | - | 33 204 419 | ||
Segment liabilities | (4 935 763) | (789 096) | (3 941 375) | (1 265 273) | (3 836 716) | - | (14 768 223) | ||
Capital expenditure | (411 492) | (33 774) | (1 929 174) | (49 721) | (4 310) | - | (2 428 471) | ||
Depreciation | (368 026) | (137 684) | (92 492) | (77 748) | (98 058) | - | (774 009) | ||
Sept-21 | |||||||||
Revenue - External | |||||||||
customer | 17 298 955 | 1 657 215 | 4 439 046 | 712 475 | - | (5 090 873) | 19 016 818 | ||
Operating profit before | |||||||||
impairments & fair value | |||||||||
adjustments | 2 562 603 | 296 952 | (669 614) | (3 055) | 57 113 | - | 2 243 999 | ||
Segment Assets | 7 603 679 | 942 151 | 3 641 001 | 5 075 898 | 1 720 379 | - | 18 983 108 | ||
Segment liabilities | (2 732 321) | (433 772) | (1 865 009) | (899 034) | (1 423 050) | - | (7 353 186) | ||
Capital expenditure | (515 303) | (19 852) | (1 033 060) | (20 133) | (67 404) | - | (1 655 752) | ||
Depreciation | (539 194) | (66 308) | (141 676) | (44 138) | (80 683) | - | (871 999) | ||
The principal accounting policies applied in the preparation of these financial statements are consistent with those applied in the previous annual financial statements except for the effect of adopting the requirements of IFRS16 (Leases) which increased the Group's Assets and Liabilities and which had a minimal net impact on the Group's Statement of Profit and Loss and other Comprehensive Income.
The Directors would like to advise users to exercise caution in their use of these annual financial statements due to the impact of the change in functional currency in February 2019, its consequent effect on the financial statements and the adoption of the International Accounting Standard (IAS) 29 (Financial Reporting in Hyperinflationary Economies).
EXTERNAL AUDITOR'S OPINION
These financial results should be read in conjunction with the complete set of financial statements for the year ended 30 September 2022 which have been audited by Grant Thornton Chartered Accountants (Zimbabwe) in accordance with International Standards on Auditing (ISAs). The auditors have issued an adverse audit opinion on the consolidated financial statements with respect to non-compliance with International Accounting Standard (IAS) 21 - The Effect of Changes in Foreign Exchange Rates; International Accounting Standard (IAS) 29 - Financial Reporting in Hyperinflationary Economies; and valuation of investment properties and property, plant and equipment.
The Auditors have included a section on key audit matters. The key audit matters were with respect to the revenue recognition and valuation of biological assets.
The auditor's report on the consolidated financial statements which form the basis of these financial results is available for inspection at the Group's registered office.
The engagement partner on the audit resulting in the auditor's report is Farai Chibisa (PAAB Number 0547).
Directors: Dr T. U. Wushe (Chairman) M. Macheka (Chief Executive Officer) *, T. I. Baik, A. M. Chingwecha*, S. Mupfurutsa, M. Oakley * Executive
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Amalgamated Regional Trading Holdings Ltd. published this content on 09 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 December 2022 08:02:01 UTC.