In accordance with the requirements of the Securities Act No. 41 of 2016 and the Listing Requirements of the Lusaka Securities Exchange, ZCCM Investments Holdings Plc (ZCCM-IH Plc) announces the audited results of the company and its subsidiaries (collectively referred to as the Group) for the year ended 31 March 2018.

Commentary on financial results and performance

  • The Group recorded turnover of K61 million (2017: K95 million). The decrease in turnover is attributed to low sales at Ndola Lime Company Limited due to increased competition in lime market as well as technical challenges which negatively affected the production and sales of lime and related products.
  • The Group recorded an operating profit of K47 million (2017: K848 million). The decrease is mainly due to:
    • Ndola Lime Company Limited’s (Subsidiary) continued loss-making position, which contributed an operating loss of K167 million (2017: K1, 152 million);
    • impairment of the investment in Konkola Copper Mines Plc amounting to K218 million; and
    • decrease in copper price participation income from K719 million (2017) to K360 million (2018).
  • The Group recorded a positive share of profit from equity accounted investee companies of K 689 million (2017: loss K 189 million). This movement represents 464% increase.
  • The Group reported a profit of K843 million (2017: K 729 million) representing 16% increase, driven by improved production volumes of copper in most of ZCCM-IH’s investee companies and an upsurge in copper prices during the year. London Metal Exchange copper price increased by 14.8% to US$ 6,724/ton (2017: US$5,858/ton) during the year.
  • The Group’s total assets increased by 8% from K9, 579 million (2017) to K10, 332 million (2018) on account of increase in the net assets of investee companies whose performance continued to improve during the year.

Dividends

The Directors have proposed a final dividend of K0.61/share for the year ended 31 March 2018 to be tabled at the Annual General Meeting to be held on 28 January 2019.

By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on Wednesday 16th January 2019

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Issued in Lusaka, Zambia on Wednesday 16th January 2019


Related downloads

ZCCM-IH | Abridged Audited Financial Results – FYE 31 March 2018