pgin unaudited results for hy ended 30 jun 13.pdf

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

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Industries (Zimbabwe) Limited

Directors: FM Dzanya (Acting Chairman), *HM Munyati (CEO), SG Chella, R Likukuma, H Matemera, BP Nyajeka,CB Thorn, *AM Zvandasara (Finance Director) *Executive

UNAUDITED RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2013

1. Financial Performance

Net revenue increased by 11% to $16 954 622 on the backdrop of softening demand and tight liquidity conditions. Competitive pressure, particularly at theMerchandising Division, resulted in the overall group gross margin percentage declining from 31% to 27%. Net operating expenses declined by 10%.Loss before interest and tax declined to $842 245 (2012: $2 025 502). A high level of borrowings resulted in the group incurring finance charges of $1 389486 (2012: $1 130 004). Loss before tax declined by 29% to $2 231 729.

2. Operations Review

Merchandising Division sales grew by a modest 4% to $10 966 177. The tight liquidity conditions and competitive pressures that prevailed in the marketnegatively impacted on the performance of the division.

Zimtile sales grew by 29% to $4 576 875, driven by strong demand for concrete roofing tiles, bricks and pavers. Following the successful commissioning ofa new tile making plant at Zimtile beginning of 2012, production capacity and efficiencies have improved. Zimtile is a long standing trusted brand in theconcrete tile manufacturing sector.

PG Glass achieved a 22% increase in sales to $1 533 727 on the back of an improvement in stocking levels.

3. Outlook and Strategic Actions

Subdued business activity is expected to continue for the remainder of the year. However, innovative supply agreements with both local and foreignsuppliers have resulted in significant improvement in accessing key products for the group to distribute through its branch network.

The board has approved a number of strategic actions to improve operational performance, reduce the heavy interest burden and strengthen the balancesheet. These include:

Review of group structures which will result in a significant reduction of overheads going forward;

Review of business models, especially those relating to merchandising, which should improve profitability;

Specific balance sheet restructuring initiatives which will be presented to shareholders and if approved will address the negative equity

position;

Continuing the plans to dispose of excess to requirements properties which have already been approved by shareholders. Proceeds will

be used to reduce bank borrowings. It is noted that current group banking arrangements remain in place.

Shareholders will be advised of the detailed plans and processes in due course.

4. Dividend

In light of the company's performance, no dividend can be declared for the period to 30 June 2013.

By order of the Board

K. Waniwa (Ms)

Company Secretary23 September 2013


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CONDENSED GROUP STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013

CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 30 JUNE 2013

UnauditedHalf Year

Ended30-Jun-13

UnauditedHalf Year

Ended30-Jun-12

Continuing Operations US$ US$

Net Revenue 16,954,622 15,243,492

Loss before interest and tax (842,245) (2,025,502)

Net finance costs (1,389,484) (1,130,004)

Loss before taxation from continuing operations (2,231,729) (3,155,506)

Taxation (118,541) 404,667

Loss for the period from continuing operations (2,350,270) (2,750,839)

Discontinued Operations

Profit after taxation for the period from discontinued operations - 10,429

Loss for the period (2,350,270) (2,740,410)

Earnings per share

Shares in issue (m's) 478 478

Attributable loss per share (cents) (0.49) (0.57)

Fully diluted loss per share (cents) (0.48) (0.56)

UnauditedAs At

30-Jun-13

AuditedAs At

31-Dec-12

US$ US$

ASSETS

Non-current assets 18,832,723 18,909,560

Current assets 13,528,339 17,510,036

Totals assets 32,361,062 36,419,596

EQUITY AND LIABILITIES

Total equity (782,062) 1,568,208

Non-current liabilities 10,683,713 10,556,852

Current liabilities 22,459,411 24,294,536

Total equity and liabilities 32,361,062 36,419,596


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CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 30 JUNE 2013

Share

capitalShare

premium

Non-distributable

reserve

Retainedearnings

US$ US$ US$

Balance as at 30 June 2012 478,330 4,044,666 6,629,170 (4,771,913)

Loss for the period (5,380,242)

Revaluation of land and buildings 566,895

Exchange difference on translation of foreign subsidiary 1,302

Balances at 31 December 2012 478,330 4,044,666 7,197,367 (10,152,155)

Loss for the period - - - (2,350,270)

Balance as at 30 June 2013 478,330 4,044,666 7,197,367 (12,502,425)

US$

(5,380,242)

(2,350,270)

6,380,253

1,568,208

(782,062)

566,895

Total

1,302

US$

-

CONDENSED GROUP STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 30 JUNE 2013

Unaudited

Half Year Ended30-Jun-13

UnauditedHalf Year Ended

30-Jun-12

US$ US$Cash outflow from operating activities (1,547,388) (1,830,675)

Proceeds from disposal of property, plant and equipment 25,000 1,599,967

Acquisition of property, plant and equipment (384,200) (331,858)

Proceeds from disposal of investments 3,539,569 -

Loss of control due to a rights issue by a subsidiary - (45,205)

Net cash generated from investing activities 3,180,369 1,222,904

Net proceeds from borrowings (329,139) 1,032,759

Finance costs (1,389,484) (1,130,004)

Net cash utilised from financing activities (1,718,623) (97,245)Net decrease in cash and cashequivalents (85,643) (705,016)

At the beginning of the period 386,169 1,148,243

At the end of the period 300,526 443,227

- -

- -

- -

-

-

-


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Industries Mozambique Lda

UNAUDITED RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2013

SUPPLEMENTARY INFORMATION


30-Jun-13


30-Jun-12

US$ US$

Capital expenditure 384,199 331,858

Depreciation on Property, plant and equipment 414,458 393,131

Amortisation on intangible assets 13,443 -

Interest bearing debt 13,726,518 11,038,335

Issued share capital 478,330 478,330

No of shares in issue (m's) 478 478

Dilution due to share options and convertible debenture (m's) 10 10

488 488

Accounting principles

This interim report complies with the requirements of IAS 34. The same accounting policies and methods of measurement and

recognition as those applied in the 2012 annual financial statements have been followed in preparing this interim report.Currency of reporting

The financial statements are presented in the United States Dollar which is the functional currency of the Group.

Disposal of part of investment in Manica Boards and Doors (Pvt) Ltd (MBD)

PG Industries (Zimbabwe) Limited disposed 18,9% of its 27,9% investment in Manica Boards and Doors (Pvt) Limited. The transaction

also involved liquidation of an equivalent portion of the loan investment in MBD. The remaining 9% Shareholding is now treated as an

investment.

Non-current assets held for sale

The assets classified as held for sale in 2012 are still being held for sale. The Group managed to dispose some investments in shares

and part of the loan investment with a book value of $2,428,400. However, continued liquidity problems in the market slowed the sale of

properties held for sale.

Going Concern The Group reported a net loss at 30 June 2013 of $2 350 270 (30 June 2012: loss of $2 740 410) and its current liabilities exceed current

assets by $8 931 072 (31 December 2012: $6 784 500). The Group continued to face working capital constraints. These conditions givematerial uncertainty that may cast significant doubt about the Group's ability to continue as a going concern and therefore it may not be

able to realise its assets and discharge its liabilities in the ordinary course of business.

In response to the above,reference is made to the initiatives approved by the Board which are outlined in the section on Outlook andStrategic Actions. The financial statements have therefore been prepared on the basis that the group will continue to be a going concern. This basis

presumes that the group's plans will be effective and the group will realize its assets and discharge its liabilities in the ordinary course of

business.

pgin unaudited results for hy ended 30 jun 13.pdf

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