7/27/2019 MMDZ Unaudited results for HY ended 30 Jun 13.pdf

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HOLDINGS L I M I T E D

Med Tech FINANCIAL HIGHLIGHTFOR THE HALF YEAR ENDED 30 JUNE

5. Supplementary information

AIRMANS REPORT

ghts:

revenues increased 9.3% from $ 6.4 million in H1 2012 to $ 7.0million in H1 2013.go Cosmetics has strong first half.associate commences business.

mentary:

p:2013 2012

Restatednues 7,000,390 6,370,079

Profit % 27.1% 26.6%

wing the discontinuation of Zimbabwe Pharmaceuticals, the 2012 comparative figures have been restatedw a fair comparison of continuing operations.

013 results show modest growth and profitability in the FMCG Distribution business, and an increase inal Segment revenues.

profit percentage of 27.1% for 2012 improved on the 2011 figure of 26.6% on a better sales mix withr margins.

alance sheet reflects the expansion in the Manufacturing Segment and the growth in volumes in theal and FMCG Segments.

ity has improved following the discontinuation of Zimbabwe Pharmaceuticals, given that financing ofs and recapitalization of that unit ceased in November 2012.

wing an internal reorganization the business has been split into FMCG, Medical and Manufacturingents. All of the manufacturing output is sold through the FMCG segment.

G Segment:2013 2012

nues 5,757,005 5,490,532Profit % 27% 28%

MCG Segment includes MedTech Distribution and Smart Retail. Segment sales grew 5% compared with

rresponding period, with Distribution growth of 13% offset by lower Retail sales.

cal Segment:2013 2012

nues 1,243,386 862,064Profit % 31% 32%

edical Segment includes MedTech Medical and Scientific (Pvt) Ltd and Education and Laboratoryces Division. The segment has delivered sales growth of 44%, in line with expectations. Financings currently being pursued will assist in funding working capital as the division experiences strongnd for both local and imported product.

ess expectations are that the segment will reach profitability in 2014, after a breakeven 2013.

facturing Segment:2013 2012

nues 991,308 0Profit % 26% 0%

roup has set up a toiletries manufacturing subsidiary in Ruwa. Fundamentals are positive and welled Baby Line Petroleum jelly, and Clereglycerine are manufactured. The product range is set to expandre equipment arrives.

abwe Pharmaceuticals

eviously advised to shareholders the group has accepteda firm offer from a local company for the entireholding of Zimbabwe Pharmaceuticals, for the sum of $1.00, but with certain guarantees against historic debtome security in place for this debt.

cal consortium has not yet provided security, nor has Zimbabwe Pharmaceuticals paid the first installmentn the debt guarantee. Management are seeking legal advice before acting on the non-compliance.

end

oard does not intend to declare a dividend in view of the cash requirements associated with Medtech'sh strategy.

ok

roup is in the process of investing in an associate company, MedTech Food and Beverages (Pvt) Ltd,as commenced distribution operations for beverage products, which are bottled in Zambia and

stmbique. The Board is optimistic for the second half of 2013, following the peaceful elections held on 31The macro-economic outlook could witness an upturn if policy consistency and investor confidenceves.eciation

d like to record my appreciation to my fellow directors, our customers, suppliers, managers and staff forole in the development of the MedTech Group. The Group remains focussed on performance and isitted to stakeholders who share similar values.

Rose Mazulamanech Holdings Limitedeptember2013

ors: R. Mazula(Chairman), A. Motiwala* (CEO);K.P. McCosh*(Finance);F. Sheikh; T.Sheikh; V. Lapham.cutive)

ECTED NOTES TO THE INTERIM FINANCIAL STATEMENTS

the 6 months ended 30 June 2013

tement of compliance

e underlying financial statements to these results have been prepared in accordance with Internationalancial Reporting Standards and in the manner required by the Companies Act (Chapter 24:03).

counting policies and reporting currency

ere have been no changes in the Groups accounting policies since the date of the last audited financialements. The underlying financial statements to these results are presented in United States doll ars,ch is the functional currency of the Company.

ntingent liabilities

the Group had no material contingent liabilities as at 30 June 2013.

statement of reserves

owing a review of Group Non- Distributablereserves after the discontinuation of Zimbabwearmaceuticals, an amount $776,542 was restated from Non- distributable to Distributable Reserves.se reserves arose from the revaluation following the switch in reporting from local currency to Unitedtes Dollars in 2009. The net effect on overall reserves is $ nil.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR SIX MONTHS ENDE

Accum-ulated

Non-distr- (losses)/ Share Share ibutable retained

Capital Premium reserve earnings Total $ $ $ $ $

Balances as at31 December 2011 27 996 1 562 694 1 011 253 (868 408) 1 733 535

Total comprehensiveincome for the six months - - - (155 273) (155 273) Balances as at30 June 2012 27 996 1 562 694 1 011 253 (1 023 681) 1 578 262

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR SIX MONTHS ENDE

Accum-

ulatedNon-distr- (losses)/

Share Share ibutable retained Capital Premium reserve earnings Total

$ $ $ $ $ Balances as at31 December 2011 27 996 1 562 694 1 011 253 (868 408) 1 733 535

Discontinued operation - - - - -

Total comprehensiveloss for the year - - - (424 052) (424 052)Balances as at30 December 2012 27 996 1 562 694 1 011 253 (1 292 460) 1 309 483

Reserves restatement - - (776 542) 776 542 -

Total comprehensiveincome for the six months - - - 65 407 65 407Balances as at30 June 2013 27 996 1 562 694 234 711 (450 511) 1 374 890

SELECTED NOTES TO THE INTERIM FINANCIAL STATEMENTS

2013 2012Restated

$ $Capital expenditure 263,837 47,137Depreciation expense 59,857 45,599Approved Capital Commitments at the date of approval of the financial statements 60,000 20,000Operating profit from continuing operations 331,998 144,986Operating profit is stated after accruing for items of significance:Auditors remuneration 28,773 21,196Directors Fees 17,418 7,680

6. Approval and events after the reporting period

thThe underlying financial statements to these results were approved by the Board on 10 September 2013.Subsequent to the reporting period date there were no material adjusting or non-adjusting events.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED30 JUNE 2013

Unaudited Unaudited30-Jun 30-Jun

2013 2012$ $

RestatedTurnover 7,000,390 6,370,079Cost of Sales (4,742,456) (4,520,867)Gross Profit 2,257,934 1,849,212Operating profit 331,998 144,986Net Financing Costs (116,091) (195,624)Profit/(Loss) before Taxation 215,907 (50,638)Taxation (54,738) 13,039Profit/(Loss) from continuing operations 161,169 (37,599)Loss from discontinued operations - (240,653)Profit/(Loss) after taxation 161,169 (278,252)

Attributed as follows :Equity holders of the parent from continuing operations 65,407 (32,540)Equity holders of the parent from discontinued operations - (122,733)

Non- controlling interest from continuing operations 95,762 (5,059)Non- controlling interest from discontinued operations - (117,920)Total comprehensive Profit /(Loss) for the year 161,169 (278,252)

Earnings per shareBasic profit/(loss) per share (cents) 0.006 (0.007)Basic profit/(loss) per share (cents) from discontinued operations - (0.009)Headline profit/(loss) per share (cents) 0.006 (0.007)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013

Unaudited Audited

31-Jun 31-Dec2013 2012

$ $ASSETSNon-current assetsProperty,plant and equipment 729,562 525,582Deferred taxation 98,898 88,121Loans receivable 374,637 547,162

1,203,097 1,160,865Current AssetsInventories 4,359,704 3,595,087Accounts receivable 2,896,741 2,588,299Loans receivable 296,275 123,750Cash and bank balances 15,326 168,329

7,568,046 6,475,465

Total assets 8,771,143 7,636,330

EQUITY AND LIABILITIESReservesCapital and reserves 1,374,890 1,309,483Non-controlling interests 873,570 777,808

2,248,460 2,087,291Non-current liabilitiesDeferred taxation 146,065 135,721

Current LiabilitiesTrade and other Payables 5,341,668 4,052,195Short term borrowings 333,060 939,816Taxation 271,977 228,406Bank overdraft 429,913 192,901

6,376,618 5,413,318

Total equity and liabilities 8,771,143 7,636,330

CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2013

Unaudited Unaudited30-Jun 30-Jun

2013 2012$ $

Restated

NET CASHFLOW FROM OPERATING ACTIVITIESOperating profit from continuing operations 331,998 144,986Depreciation on property, plant and equipment 59,857 45,599Profit on disposal of equipment - (1,803)

391,855 188,782Net increase / (decrease) in working capital 216,414 (257,767)Net Finance cost (116,091) (195,624)Income tax paid (11,600) (4,620)NET OPERATING CASHFLOW 480,578 (269,229)NET CASHFLOW FROM INVESTING ACTIVITIESAcquisition of property, plant and equipment (263,837) (47,137)Proceeds from disposal of equipment - 7,300Net cashflow from investing activities (263,837) (39,837)NET CASH FLOWS BEFORE FINANCING ACTIVITIES 216,741 (309,066)NET CASH FLOW FROM FINANCING ACTIVITIESNet movement in loans payable (606,756) (367,849)

DECREASE IN CASH AND CASH EQUIVALENTS (390,015) (676,916)