| Thu 7 Jun 2001, 0:00 | | Conafex - Interim Results |
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Conafex Holdings Societe Anonyme
(Incorporated in Luxembourg R.C. No. B 17789)
INTERIM RESULTS
Profile
Conafex is a Pan-African agri-resource group focused on
agriculture, floriculture, horticulture and plantation crops of
which a high proportion of the produce, such as tea, exotic
flowers, field flowers, coffee, tobacco and deciduous fruit, is
exported to Europe. Currently, most of the Group's operations are
located in Zimbabwe.
Operations
* All agricultural enterprises experienced an average to heavy
rainy season with reasonable distribution.
* Tea production is ahead of last year and international prices,
although fair, have fallen recently as a result of high production
from East Africa.
* Production of flowers to date has been disappointing but good
prices have more than compensated.
* US$ tobacco auction prices are currently very firm and although
overall production will be down, the excellent quality should
compensate provided there is a realistic exchange rate during the
auction season.
* Planting of food crops was reduced because of poor margins but
yields and prices of the much smaller crop are normal.
* The contribution from cattle and poultry has been above
expectation.
* Coffee production is down by design and so are world prices.
* Deciduous fruit production and export prices were excellent.
Financial
Profit on ordinary activities amounted to US$494,000 (last year
US$399,000). The exceptional item arises from the disposal of a
flower venture in South Africa, with the group retaining a royalty
interest. The disposal of the Kent Estate enterprise generated
the exceptional profit of US$1,054,000 reported in the first half
of the previous year. Profit attributable to shareholders
amounted to US$251,000 (last year US$1,144,000).
Dividend
As usual, no interim dividend is recommended because of the
seasonal nature of the Group's cash flows and dependency on the
remittances of profits from Zimbabwe. A final dividend for the
full year will be recommended by the directors subject to a
satisfactory conclusion to the financial year
Development, Acquisitions and Prospects
The land resettlement programme in Zimbabwe continues to attract a
high profile but to date no Group properties have been compulsory
acquired and there has been little disruption to the Group's
operations. As reported, our listed Zimbabwean associate Ariston
Holdings has recently been served with preliminary notices for
compulsory acquisition of the majority of its agricultural
properties. Representations have been made to the authorities as
none of the properties meet the Government criteria for compulsory
acquisition and resettlement. After successful representations
were made to the authorities, Highbury estate, directly owned by
Conafex, has been removed from the list for compulsory
acquisition.
The overall agricultural season has been reasonable and most crops
are showing a significantly improved performance over last year in
local currency terms. However, as usual, the Zimbabwe dollar
exchange rate is unpredictable and the impact of an inevitable
significant devaluation could have a material impact on the
overall financial performance of the Group.
Conafex has acquired at 40% interest in Cape Natural Tea Products,
a leading processor and marketer of herbal teas such as rooibos
and honeybush in the Western Cape in South Africa. Health and, in
particular, herbal tea is seen as a high growth sector.
The Group continues to explore avenues for growth and acquisitions
in the African region.
M W BURRELL
Chairman
Directors: M.W. Burrell (Chairman), A.R.C. Barclay (non-
executive), C. Barrow (non-executive), C.P. Jousse (managing) R.C.
Kerr (non-executive), D.C. Marshall (non-executive), W.H. Marshall
(executive), The Hon C.A. Pearson (non-executive)
GROUP OFFICES
Zimbabwe (Regional Headquarters) South Africa United Kingdom
215 Fife Avenue/10th Street, 11 Sunbury Park, 25 City Road,
(P.O. Box 2733), La Lucia Ridge Office Estate London, EC1Y 1BQ
Harare La Lucia 4051
Durban
TRANSFER AGENTS
Europe South Africa
C.I. REGISTRARS LIMITED MERCANTILE REGISTRARS LIMITED
Cresta House, Alma Street, 11 Diagonal Street,
Luton, Bedfordshire, LU1 2PU Johannesburg 2001
United Kingdom (P.O. Box 1053, Johannesburg 2000)
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Half years ended Year ended
31st March 30th
September
2001 2000 2000
Unaudited Unaudited
US$000 US$000 US$000
Notes
GROUP REVENUE
including associates 13,789 13,479 25,550
Less revenue of associates(12,212) (12,232) (20,365)
Revenue 1,577 1,247 5,185
Operating costs (1,570) (1,228) (4,784)
Operating Profit 7 19 401
Share of associated
companies results 2 451 372 899
Income from
investments -
dividends 1 - -
Interest receivable 46 9 19
Interest paid and similar
charges 3 (11) (1) (334)
Profit on ordinary
activities before
exceptional items
and tax 494 399 985
Exceptional items (32) 1,054 924
Profit before tax 462 1,453 1,909
Taxation on ordinary
activities (202) (311) (67)
Profit after tax 260 1,142 1,842
Minority Interests (9) 2 (1)
PROFIT ATTRIBUTABLE TO
SHAREHOLDERS 251 1,144 1,841
Dividend - nil (2000 - nil) - - -
Earnings per share
(US cents) 4 2.2c 10.0c 16.1c
STATEMENT OF CHANGES IN EQUITY
Net profit for the period 251 1,144 1,841
Surplus on revaluation
of properties - - 3,805
Exchange differences (22) - (2,828)
Total recognised
(losses)/profits (205) 1,144 2,818
Scrip dividend options
exercised - - 138
(Decrease)/increase in
shareholders funds (205) 1,144 2,956
Shareholders' funds at
start of period 16,723 13,767 13,767
Shareholders' funds at
end of period 16,518 14,911 16,723
CONSOLIDATED GROUP BALANCE SHEET
31st March 30th September
2001 2000 2000
Unaudited Unaudited
Restated
Notes US$000 US$000 US$000
Fixed assets
Tangible fixed assets 6 8,822 7,737 9,184
Investments 2 9,880 8,886 9,342
18,702 16,623 18,526
Current assets
Inventories 1,478 1,898 1,162
Debtors 194 479 1,089
Cash 333 477 431
2,005 2,854 2,682
Current liabilities
Creditors (falling due
within one year) (1,302) (1,958) (1,487)
Net current assets 703 896 1,195
Total assets less current
liabilities 19,405 17,519 19,721
Creditors (falling due after
more than one year) (98) - -
Provisions for liabilities
and charges
Deferred taxation (2,331) (2,183) (2,532)
16,976 15,336 17,189
Capital and reserves
Share capital 16,744 16,606 16,744
Other reserves (3,471) (4,644) (3,613)
Retained earnings 3,245 2,949 3,592
Assets attributable to
shareholders 16,518 14,911 16,723
Minority interests 458 425 466
16,976 15,336 17,189
CONSOLIDATED CASH FLOW STATEMENT
Half years ended Year ended
31st March 30th September
2001 2000 2000
Unaudited Unaudited
Restated
US$000 US$000 US$000
Operating activities
Cash generated by/(utilised in)
operations 386 (1,121) (503)
Interest paid (11) (112) (334)
Taxation paid (150) (49) 8
Net cash inflow/(outflow)
from operating activities 225 (1,282) (829)
Investment activities
Purchase of tangible assets (36) (87) (117)
Purchase of investments (201) (98) (1,627)
Disposal of tangible assets - - 1,394
Disposal of investments - 493 535
Interest received and other
investment income 47 9 19
Dividends received from
associates 67 176 227
Net cash inflow from investment
activities (123) 493 431
Net cash inflow/(outflow)
before financing 102 (789) (398)
Financing activities
Dividend, net of scrip element - - (90)
Net cash outflow from financing
activities - - (90)
Net increase/(decrease) in cash 102 (789) (488)
Net cash at start of period 19 401 401
Effect of foreign exchange rate
changes 15 - 106
Net cash/(debt) at end of period 136 (388) 19
NOTES
1. The results and the cash flow statement for the half year
ended 31st March 2001 and the balance sheet as at that date, which
are unaudited, have been prepared on the basis of accounting
policies adopted for the year to 30th September 2000, and comply
with International Accounting Standards in all respects, except as
set out in note 7, and with Luxembourg legal requirements except
for the revaluation of certain fixed assets
2 The investment in the associated company is at cost plus share
of post-acquisition retained earnings.
3. Interest and other crop costs are charged to the cost of crops
and brought to account when such crops are sold.
4. Earnings per share are based on the net profit attributable to
members and the 11,484,127 shares in issue.
5. No segmental analysis is presented because substantially all
of the operations and assets used in generating the revenue relate
to farming activities in Zimbabwe
6 Capital expenditure during the period was US$36,000. Capital
expenditure as at 31st March 2001 not provided, but contracted for
amounted to US$18,000, authorised but not contracted for was
US$18,000.
7. Hyperinflation
Zimbabwe companies are not required by the Zimbabwe Accounting
Practices Board and the Institute of Chartered Accountants of
Zimbabwe to comply with IAS 29, Financial Reporting in
Hyperinflationary Economies, for financial years ending before 31
December 2000, due to local, practical, difficulties. We are
unable to determine the full impact of any changes to the
financial statements that would be required from application of
IAS 29. It is estimated that the only significant adjustments
arising from the application of IAS29 would be to reverse
translation differences, which reduce Zimbabwe fixed assets and to
reduce unrealised exchange losses by a corresponding amount. No
significant adjustment to prior year comparatives would be
required.
