Truworths : 2023 HY Results & Audit Report

REVIEWED ABRIDGED GROUP RESULTS

FOR THE HALF YEAR ENDED 08 JANUARY 2023

DIRECTORS' RESPONSIBILITY

The Company's Directors are responsible for the preparation and fair presentation of the

Group's financial statements, of which this press release represents an extract.

These reviewed interim consolidated financial statements have been prepared in

accordance with International Financial Reporting Standards and in a manner required by the Companies and Other Business Entities Act (Chapter 24:31) (COBE) and the Zimbabwe Stock Exchange (ZSE) Listing Requirements for Reviewed Interim Financial Statements except for the non-compliancestated in the paragraph below.

The principal accounting policies applied in the preparation of these interim consolidated financial statements are consistent with those applied in the previous interim consolidated financial statements, except for non-compliancewith IAS 21 - The Effects of Changes in Foreign Exchange Rates, IFRS 13 - Fair Value Measurement in the valuation of property, plant and equipment, IAS 1 - Presentation of Financial Statements and IFRS 15 - Revenue from Contracts with Customers and IAS 2 - Inventories.

CAUTIONARY STATEMENT - RELIANCE ON ALL FINANCIAL STATEMENTS PREPARED IN ZIMBABWE FOR 2020/2021

The Directors would like to advise users to exercise caution in the use of these interim consolidated financial statements due to the material and pervasive impact of the technicalities brought about by the change in the functional currency in Zimbabwe in February 2019, its consequential impact on the usefulness of the financial statements for 2020/2021 financial periods and the adoption of International Accounting Standard (IAS) 29 (Financial Reporting in Hyperinflationary Economies), effective 1 July 2019.

Whilst the Directors have exercised reasonable due care, and applied judgements that they

felt were appropriate in the preparation and presentation of these interim consolidated financial statements, certain distortions may arise due to various specific economic

factors that may affect the relevance and reliability of information that is presented in

economies that are experiencing hyperinflation, as well as technicalities regarding the change in functional and reporting currency.

The review conclusion on these interim consolidated financial statements has been modified by the independent auditors, Grant Thornton Chartered Accountants (Zimbabwe) as indicated in the review conclusion statement.

ADOPTION OF IAS 29 (FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMIES) As previously reported, the Public Accountants and Auditors Board (PAAB) having

assessed the impact of hyperinflation in the economy, advised that the conditions for

adopting IAS 29 were satisfied with effect from 1 July 2019.

IAS 29 requires that inflation-adjusted financial statements become the entity's primary financial statements. The Group has complied with this requirement, and this report is therefore based on inflation adjusted financial statements. Financial statements

prepared under the historical cost convention, have been presented as supplementary information.

EXTERNAL AUDITOR'S REVIEW CONCLUSION

This consolidated interim financial information have been reviewed by Grant Thornton Chartered Accountants (Zimbabwe) and the auditor's report signed by Trevor Mungwazi, Registered Public Auditor 0622.

An adverse review conclusion has been issued on the consolidated interim financial information of the Group, for the six months then ended. The adverse opinion was made regarding non- compliance with IAS 21 - The Effects of Changes in Foreign Exchange Rates, IFRS 13 - Fair Value Measurement in the valuation of property, plant and equipment, IAS 1 - Presentation of Financial Statements and IFRS 15 - Revenue from Contracts with Customers and IAS 2 - Inventories.

TRADING PERFORMANCE

Units sold declined by 45% due to the suspension of credit from 1st of July 2022.

Credit was suspended when the Bank Policy Rate was increased to 200% p.a. It was not viable for the business to finance the credit at those interest rates. In addition it was

not affordable for our customers to service their account obligations at rates in excess of 200% p.a.

At the onset of hyper-inflationary conditions the business reduced its exposure to credit sales because of the loss of value of the debtors' book.

SALES BY ENABLER	6 MONTHS T/Y	6 MONTHS L/Y
Cash Sales	98.9%	61.8%
Credit Sales	0.1%	38.2%
TOTAL	100%	100%

The sales value performance was negatively affected by the following;

• Price controls enforced by the FIU through the use of the official (exchange rate) in the sale of merchandise. The business maintained a competitive US dollar price in order to be able to compete on a US dollar basis, translating the US dollar price to ZWL price at the Auction Rate resulted in the uneconomic ZWL prices and loss of value.
• Informalisation of the economy which has resulted in illegal imports selling at below manufacturing costs which the business could not compete against.

CREDIT MANAGEMENT

The debtors book declined as credit sales were stopped in July 2022. This was due

to the increase in the prime interest rate to 200% per annum which made credit sales unviable for the business. The Group was focusing on repayments of outstanding debts during the period.

DIVIDEND

The Board deemed it prudent not to declare a dividend.

OUTLOOK

Trading conditions are expected to remain difficult as a result of existence of multiple devaluing exchange rates and the controls on the formal retail sector. High cost interest rates limit the business' ability to lend in ZWL.

With the economy dollarizing the business introduced US dollar credit with effect from 1 April 2023. This should see an improvement in sales and together with the

Recapitalisation proposal the Balance Sheet should strengthen and sustain the underwriting of US dollar credit.

APPRECIATION

The Board would like to express their heartfelt thanks to Management, Staff and all our other stakeholders for their efforts and support in this difficult climate.

	B. Ndebele
Chairman	Chief Executive Officer
16 May 2023
Registered Office
Stand 808 Seke Road
Prospect Park
Harare

ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION

	INFLATION ADJUSTED		HISTORICAL COST
	at 08	at 10	at 08	at 10
	January 2023	July 2022	January 2023	July 2022
Note	ZWL$	ZWL$	ZWL$	ZWL$

ASSETS

ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY

		INFLATION ADJUSTED
		Non-
Share	Treasury	distributable	Revaluation	Retained
capital	shares	reserve	reserve	earnings	Total
ZWL$	ZWL$	ZWL$	ZWL$	ZWL$	ZWL$

Non-current assets		480 762 686	487 265 484
Property, plant and equipment		477 270 024			461 695 252
Intangible assets		342 149			11 376 226
Right of Use of Asset		3 150 513			14 194 006
Current assets		483 091 392	681 818 384
Inventories		386 165 373			503 669 631
Receivables - trade		43 017 997			125 123 208
- other		38 785 764			43 530 823
Cash and cash equivalents		15 122 258			9 494 722
Total Assets		963 854 078	1 169 083 868
EQUITY & LIABILITIES
Equity		(37 658 426)		491 457 415
Non-current liabilities		26 543 230	172 483 695
Deferred tax		24 615 674			171 139 903
Lease Liability	3	1 927 556			1 343 792
Current liabilities		974 969 274	505 142 758
Payables - trade		462 830 480			428 926 305
- other		450 374 889			16 850 623
Short term borrowings	4	53 106 865			53 624 749
Lease Liability (current portion)	3	1 595 486			2 221 774
Tax payable		7 061 554			3 519 307
Total Equity & Liabilities		963 854 078	1 169 083 868
Number of shares in issue (net of treasury shares)	380 901 152	380 901 152
Net asset value per share (cents)		(9.89)	129.02

306 165 253	161 552 597
303 941 012		158 923 254
217 892		221 724
2 006 349		2 407 619
469 821 270	357 248 524
372 895 251		215 191 591
43 017 997		100 048 246
38 785 764		34 416 726
15 122 258		7 591 961
775 986 523	518 801 121
(223 891 026)		89 796 823
24 908 275	25 304 820
22 980 719		24 230 327
1 927 556		1 074 493
974 969 273	403 699 478
462 830 480		318 262 943
450 374 888		37 967 743
53 106 865		42 878 236
1 595 486		1 776 526
7 061 554		2 814 030
775 986 523	518 801 121
380 901 152	380 901 152
(58.78)	23.57

Balance at 09 January 2022	2 422 977			(20 000)	100 253 587		-	611 508 440	714 165 004
Total comprehensive loss
for the period	-			-	-		5 534 057	(228 241 646) (222 707 589)
Balance at 10 July 2022	2 422 977			(20 000)	100 253 587		5 534 057	383 266 794	491 457 415
Total comprehensive
income for the period	-			-	-		42 477 972	(571 593 813) (529 115 841)
Balance at 08 January 2023	2 422 977			(20 000)	100 253 587		48 012 029	(188 327 019) (37 658 426)
						HISTORICAL COST
										Non-
		Share	Treasury		distributable		Revaluation		Retained
		capital	shares					reserve		reserve		earnings			Total
		ZWL$	ZWL$					ZWL$		ZWL$		ZWL$			ZWL$
Balance at 09 January 2022	38 407			(317)	6 765 441		30 696 320	4 137 490	41 637 341
Total comprehensive
loss for the period	-			-	-		114 928 136	(66 768 654)	48 159 482
Balance at 10 July 2022	38 407			(317)	6 765 441		145 624 456	(62 631 164)	89 796 823
Total comprehensive
income for the period	-			-	-		62 001 547	(375 689 396) (313 687 849)
Balance at 08 January 2023	38 407			(317)	6 765 441		207 626 003	(438 320 560) (223 891 026)

ABRIDGED GROUP STATEMENT OF COMPREHENSIVE INCOME

					INFLATION ADJUSTED			HISTORICAL COST
					26 weeks to			26 weeks to			26 weeks to		26 weeks to
			08 January 2023	09 January 2022		08 January 2023 09 January 2022
	Note			ZWL$			ZWL$			ZWL$		ZWL$
Revenue	5		577 798 258	1 019 955 297	427 221 041	261 573 217
Retail merchandise sales			528 931 405	868 434 954	388 033 393	224 936 267
Cost of sales			96 872 428	241 270 575	69 921 669	52 887 698
Gross profit				432 058 977		627 164 379			318 111 724		172 048 569
Other income			5 816 272	1 293 857	9 970 116	(9 191 710)
Manufacturing profit/(loss)				65 208 305		(17 496 020)			42 024 230		(3 778 163)
			503 083 554	610 962 216	370 106 070	159 078 696
Trading expenses			(674 935 846)	(693 521 870)	(655 834 562)	(176 129 000)
Depreciation and amortisation	6			(888 707)		(7 130 604)		(841 442)	(1 074 316)
Employment costs				(203 201 449)		(185 049 820)		(195 985 032)	(66 436 189)
Occupancy costs				(241 356 165)		(190 553 480)		(231 830 493)	(50 216 681)
Trade receivable costs				(318 538)		(4 514 320)		(406 511)	(1 152 011)
Other operating costs				(229 170 987)		(306 273 646)		(226 771 084)	(57 249 803)
Trading (loss) /profit			(171 852 292)	(82 559 654)	(285 728 492)	(17 050 304)
Finance income			48 849 695	126 029 892	39 172 592	33 668 215
Operating (loss) / profit				(123 002 597)		43 470 238			(246 555 900)		16 617 911
Finance cost	7		(107 193 701)	(38 088 591)	(104 772 530)	(9 880 377)
Monetary (Loss) /gain			(333 726 795)	370 196 129	-	-
(Loss) / profit before tax			(545 179 053)		375 577 776			(351 328 430)		6 737 534
Tax expense	8			(26 414 760)		(9 067 141)			(24 360 966)		(2 637 626)
(Loss) /profit for the period			(571 593 813)	366 510 635	(375 689 396)	4 099 908
Revaluation of property, plant and equipment; net of tax	42 477 972	-	62 001 547	-
Total comprehensive (loss) / income for the period	(529 115 841)	366 510 635	(313 687 849)	4 099 908
Earnings per share	9
Basic earnings per share			(154.98)	96.22	(98.63)	1.08
Headline earnings per share			(155.21)	95.96	(98.84)	0.87
Key ratios
Gross margin			81.69	72.22	81.98	76.49
Trading expenses to Revenue from
Contracts with Customers			127.60	79.86	169.01	78.30
Trading margin			32.5	(9.5)	(73.6)	(7.6)
Operating margin			(23.3)	5.0	(63.5)	7.4

ABRIDGED GROUP STATEMENT OF CASH FLOWS

	INFLATION ADJUSTED			HISTORICAL COST
	26 weeks to		26 weeks to			26 weeks to		26 weeks to
	08 January 2023	09 January 2022	08 January 2023	09 January 2022
	ZWL $		ZWL $			ZWL $		ZWL $
CASH FLOWS FROM OPERATING ACTIVITIES
Cash (utilised in) / generated from trading	(340 181 515)	(41 754 480)	(326 268 340)	(16 456 630)
Working capital movements	404 769 673	(21 930 055)	399 717 489	(1 399 733)
Net cash utilised in operations	64 588 159	(63 684 535)	73 449 149	(17 856 363)
Finance income	48 849 695	126 029 892	39 172 592	33 668 215
Finance cost	(107 193 699)	(38 088 591)	(104 772 528)	(9 880 377)
Tax paid	-		(2 289 379)			-		(500 047)
Net cash generated from operating activities	6 244 155		21 967 387			7 849 213		5 431 428
Cash generated from / (utilised in) investing activities	(1 200 385)	1 689 057	(1 171 985)	520 764
Net cash (utilised in) / generated
from financing activities	583 764	(12 224 332)	853 069	(692 603)
Net increase in cash and cash equivalents	5 627 534	11 432 112	7 530 297	5 259 589
Cash and cash equivalents at beginning of period	9 494 724	27 089 695	7 591 961	5 946 433
Cash and cash equivalents at end of period
15 122 258		38 521 807			15 122 258		11 206 022

PAGE

1	Directors: M. P. Mahlangu (Chairman), B. Ndebele (C.E.O), B. H. Henderson, F. K. Khan, L. Mabhiza, W. Matsaira, A. B. Miek, S. M. Takaendisa

REVIEWED ABRIDGED GROUP RESULTS

FOR THE HALF YEAR ENDED 08 JANUARY 2023

SUPPLEMENTARY INFORMATION

1. CORPORATE INFORMATION
   The Group is incorporated and domiciled in Zimbabwe and its shares are publicly traded on the Zimbabwe Stock Exchange. It is engaged in the manufacture and retailing of fashion apparel and related merchandise.
2. BASIS OF PREPARATION
   The Group's financial statements for the six months ended 08 January 2023 have been prepared in accordance with the requirements of the Zimbabwe Stock Exchange Listing Requirements and in a manner required by the Zimbabwe Companies and Other Business Entities Act (Chapter 24:31) (COBE) except for non-compliance with International Financial Reporting Standards explained in this report. The Listing Requirements require interim financial statements to be prepared in accordance with International Financial Reporting Standards ('IFRS") as issued by the International Accounting Standards Board ("IASB") and as a minimum, contain the information required by International Accounting Standards ("IAS ") 34 (Interim Financial Reporting). The Group's inflation adjusted interim financial statements have been prepared based on the statutory records that are maintained under the historical cost basis and are presented in Zimbabwe Dollars (ZWL$).
   The principal accounting policies applied in the preparation of the Group interim financial statements are in terms of IFRS except for the non-compliance with IAS 21 - The Effects of Changes in Foreign Exchange Rates, IFRS 13 - Fair Value Measurement in the valuation of property, plant and equipment, IAS 1 - Presentation of Financial Statements and IFRS 15 - Revenue from Contracts with Customers and IAS 2 - Inventories, and its consequential impact on the inflation adjusted amounts determined in terms of IAS 29 (Financial reporting in Hyperinflationary Economies) and have been applied consistently in all material respects with those of the previous consolidated annual financial statements.

1. IAS 21 (The Effects of Changes in Foreign Exchange Rates)
   As noted in the Group's 2019 financial statements, the Government of Zimbabwe promulgamated Statutory Instrument 33 (S.I. 33) on 22 February 2019, giving legal effect to the reintroduction of the Zimbabwe Dollar (ZWL$) as legal tender abd prescribed that for accounting and other purposes, certain assets and liabilities on the effective date would be deemed to be Zimbabwe Dollars at the rate which was at par with the United States Dollar (USD). Guidance issued by the Public Accountants and Auditors Board (PAAB), noted that the requirements of SI33 were contrary to the provisions of IAS 21. The Directors have always ensured compliance with IFRS but were unable to do so in respect of the comparative financial information due to the conflict between IAS 21 and local statutory requirements. Due to the material and pervasive impact of these technicalities in the previous periods and the carrying over effects of these misstatements on the current period consolidated inflation-adjusted financial statements, the Directors would like to advise users to exercise caution in their use of these inflation- adjusted financial statements.
2. Adoption of IAS 29 (Financial Reporting in Hyperinflationary Economies)
   In October 2019, the PAAB issued a pronouncement prescribing that the application of financial reporting in hyperinflationary economies had become effective in Zimbabwe, for reporting periods on or after 01 July 2019. These financial statements have been prepared in accordance with IAS 29. The Group adopted the Zimbabwe Consumer Price Index ('CPI") as the general price index to restate transactions and balances. Monetary assets and liabilities and non-monetary assets and liabilities carried at fair value have been restated as they are presented at the measuring unit current at the end of the reporting period. Items recognised in the income statement have
   been restated by applying the change in general price index from the dates when initially recorded in the Group's financial records (transaction date). A net monetary adjustment was recognised in the statement of profit or loss for the half year ended 09 January 2022. Comparative amounts in the Group financial results have been restated to reflect the change in the general price index from 22 February 2019 to the end of the reporting period. All items in the statement of cashflows are expressed based on the restated financial information for the period.
   As mentioned above, the Group adopted the Zimbabwe Consumer Price Index ("CPI") as the general price index and used the monthly indices to inflation adjust the historical figures. The indices and conversion factors used to restate the accompanying financial statements are as follows:

CPI on 31 December 2022	Indices	Conversion factor
13 672.91	1.00
CPI on 30 June 2022	8 707.35	1.57
CPI on 31 December 2021	3 977.46	3.44
CPI on 30 June 2021	2 986.44	4.58
Average CPI - 6 months to 31 December 2022	12 678.08
Average CPI - 6 months to 31 December 2021	3 481.73

		INFLATION ADJUSTED	HISTORICAL COST
		26 weeks to		26 weeks to	26 weeks to		26 weeks to
	08 January 2023	09 January 2022 08 January 2023	09 January 2022
		ZWL$		ZWL$	ZWL$		ZWL$
3. LEASE LIABILITY
Analysis:
Non-current	1 927 556	1 343 792			1 927 556	1 074 493
Current		1 595 486		2 221 774			1 595 486		1 776 526
	3 523 042	3 565 566			3 523 042	2 851 019
Undiscounted future payments:
Payable within one year	2 960 877	5 554 442			1 776 528	1 776 528
Payable two to five years		4 737 405		7 776 219			2 960 877		4 441 320
	7 698 282	13 330 661			4 737 405	6 217 848

4. SHORT TERM BORROWINGS

Short-term borrowings are jointly secured Cession of Book Debts, Power of Attorney to register an NGCB and Cession of Insurance Policy with security Agent as First Loss Payee. Borrowings are renewed on maturity in terms of ongoing facilities negotiated with the respective financial institutions. The average interest of 51.75% per annum was applicable on the outstanding balance.

	INFLATION ADJUSTED		HISTORICAL COST
	26 weeks to		26 weeks to	26 weeks to		26 weeks to
	08 January 2023	09 January 2022 08 January 2023	09 January 2022
	ZWL$		ZWL$	ZWL$		ZWL$
5. REVENUE
Sale of merchandise	528 931 405	890 637 272		388 033 393	227 109 946
- Retail sales
516 060 566		868 434 954		376 166 793		224 936 267
- Factory sales to third parties	12 870 839		22 202 318		11 866 600		2 173 679
Interest receivable	48 849 695	126 029 892		39 172 592	33 668 215
- Accounts receivable	48 849 470		125 880 981		39 172 386		33 632 209
- Other	225		148 911		206		36 006
Service fees	13 572	3 024 096		11 559	731 213
Commissions	3 586		264 037		3 497		63 843
Total	577 798 258	1 019 955 297		427 221 041	261 573 217

Top Quality Clothing That Lasts

			INFLATION ADJUSTED		HISTORICAL COST
			26 weeks to		26 weeks to		26 weeks to		26 weeks to
		08 January 2023	09 January 2022 08 January 2023	09 January 2022
			ZWL$		ZWL$		ZWL$		ZWL$
6.	DEPRECIATION AND AMORTISATION
	Depreciation charge	886 609	7 073 125		839 507	1 065 656
	Amortisation charge		2 098		57 479			1 935		8 660
	Total charge	888 707	7 130 604		841 442	1 074 316
7.	FINANCE COSTS
	Borrowings	56 961 826	3 774 195		54 616 196	1 097 916
	Other		50 231 875		34 314 396			50 156 334		8 782 461
	Total finance costs	107 193 701	38 088 591		104 772 530	9 880 377
8.	TAX
	Current tax charge for the period	(5 386 860)	-		(4 968 022)	-
	Deferred tax charge for the period		31 801 620		9 067 141			29 328 988		2 637 626
	Total tax charge	26 414 760	9 067 141		24 360 966	2 637 626
9. (LOSS) / EARNINGS PER SHARE
	(Loss) / earnings attributable to shareholders	(590 337 853)	366 510 635		(375 689 396)	4 099 908
	Adjusted for on-recurring items:-
	Loss on disposal of property,
	plant and equipment	(869 337)	(983 567)		(808 313)	(786 458)
	Headline (loss) / earnings		(591 207 190)		365 527 068			(376 497 709)		3 313 450
	Headline (loss) / earnings per share (cents)	(155,21)	95,96		(98,84)	0,87
	Weighted average number of ordinary shares
	used in calculating (loss) / earnings per share	380 901 152	380 901 152		380 901 152	380 901 152

10. SEGMENT INFORMATION

						INFLATION ADJUSTED
	Manufacturing				Retail		Elimination				Consolidated
	2023		2022	2023	2022		2023		2022			2023	2022
	ZWL$	ZWL$			ZWL$		ZWL$		ZWL$			ZWL$		ZWL$		ZWL$
External Sales	12 870 839		22 202 318	516 060 566	868 434 955		-		-			528 931 405	890 637 272
Inter-segment sales	103 773 058		69 859 499	-	-		(103 773 058)	(69 859 499)			-	-
Interest receivable	-		-	48 849 695	126 029 892		-		-			48 849 695	126 029 892
Service fees	-		-	13 572	3 024 096		-		-			13 572	3 024 096
Commissions	-		-	3 586	264 037		-		-			3 586	264 037
Total revenue	116 643 897		92 061 817	564 927 419	997 752 980		(103 773 058)	(69 859 499)			577 798 258	1 019 955 297
Segment result
Profit/(loss) for the period	40 953 650		(17 121 577) (266 014 247)	(82 225 305)		53 208 305		(334 349) (171 852 292)	(82 559 654)
Monetary (loss) / gain	44 325 799		-	10 207 028	370 196 129		(388 259 622)	-			(333 726 795)	370 196 129
Finance income	-		-	48 849 695	126 029 892		-		-			48 849 695	126 029 892
Finance cost	(1 327 104)		(374 442) (105 866 596)	(38 088 591)		-		-			(107 193 700)	(38 088 591)
Tax expense	27 108 070		2 608 969	(53 522 830)	(9 067 141)		-		-			(26 414 760)	(9 067 141)
Net (loss) / profit
111 060 415		(14 887 050)		(366 346 951)		366 844 984		(316 307 277)		(334 349)		(571 593 813)		366 510 635
										HISTORICAL COST
	Manufacturing				Retail		Elimination				Consolidated
	2023		2022	2023	2022		2023		2022			2023	2022
	ZWL$	ZWL$			ZWL$		ZWL$		ZWL$			ZWL$		ZWL$		ZWL$
External Sales	11 866 600		2 173 679	376 166 793	224 936 267		-		-			388 033 393	227 109 946
Inter-segment sales	97 802 740		21 693 050	-	-		(97 802 740)	(21 693 050)			-	-
Interest receivable	-		-	39 172 592	33 668 215		-		-			39 172 592	33 668 215
Service fees	-		-	11 559	731 213		-		-			11 559	731 213
Commissions	-		-	3 497	63 843		-		-			3 497	63 843
Total revenue	109 669 340		23 866 729	415 354 441	259 399 538		(97 802 740)	(21 693 050)			427 221 041	261 573 217
Segment result
(Loss) / profit for the period	43 300 472		(3 778 163) (287 004 734)	(13 224 141)		(42 024 230)		(48 000) (285 728 492)	(17 050 304)
Finance income	-		-	39 172 591	33 668 215		-		-			39 172 592	33 668 215
Finance cost	-		-	(104 772 529) (9 880 377)		-		-			(104 772 530)	(9 880 377)
Tax (credit) / expense	25 000 370		758 951	(49 361 336)	(3 396 577)		-		-			(24 360 966)	(2 637 626)
Net profit
68 300 842		(3 019 212)		(401 966 008)		7 167 120		(42 024 230)		(48 000)		(375 689 396)		4 099 908
						INFLATION ADJUSTED			HISTORICAL COST
								at 08		at 09			at 08		at 09
						January 2023 January 2022		January 2023 January 2022
							ZWL$		ZWL$			ZWL$		ZWL$
11. CONTINGENT LIABILITIES
There are no contingent liabilities.
12. CAPITAL EXPENDITURE FOR THE PERIOD	1 200 385				424 187		1 171 985			339 179

1. EVENTS AFTER THE END OF REPORTING PERIOD
   No event material to the understanding of this report has occurred between the end of the reporting period and the date of approval of these interim consolidated financial statements.
2. GOING CONCERN CONSIDERATIONS
   The financial statements have been prepared on a going concern basis which assumes the Group will continue to operate for the foreseeable future. The inflation adjusted loss for the period amounted to ZWL$590,337,853 (HY2022: Profit ZWL366,510,635). Current liabilities exceeded current assets by ZWL$491,877,882 (FY2022 current assets exceeded current liabilities by ZWL$176,675,626). These conditions may give rise to a material uncertainty
   which may cast doubt on the Company's ability to continue operating as a going concern and to realise its assets and discharge its obligations in the normal course of business. However mitigation efforts have been explored by the Group. The Group is engaged in discussions in a transaction that involves raising capital for the Group's working capital requirements and expansion initiatives through the issuance of shares by way of a rights offer. This has been notified to shareholders as per the Group's cautionary statement issued on 15 May 2023. The Directors have
   assessed the ability of the company to continue as a going concern on a continuous basis and believe that the going concern assumption used in the preparation of the financial statements is appropriate.

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2	Directors: M. P. Mahlangu (Chairman), B. Ndebele (C.E.O), B. H. Henderson, F. K. Khan, L. Mabhiza, W. Matsaira, A. B. Miek, S. M. Takaendisa