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Annual Report Summaries

CEC Africa Extract from 2017 Annual Report

The Company incurred a net loss for the year ended 31 December 2016 of K2, 656.58 million (US$269.21 million)(2015: K6.15 million (US$0.945 million)) and, at that date the Company’s total liabilities exceeded total assets byK1, 630.08 million (US$158.85 million (2015: total assets exceeded total liabilities by K805.73 million (US$106.36million)) and the current liabilities exceeded its current assets by K1, 808.36 million (US$176.22 million) (2015:K284.41 million (US$37.54 million)).

The Company’s net loss was mainly due to the recognition of impairments on the trade and other receivables& inter company loans with its subsidiary, KANN, of K2,548.53 million (US$258.26 million) and an impairment of its investment in associate, North South Power Limited of K140.61 million (US$14.25 million). The devaluation of the Naira against the US Dollar has also resulted in significant exchange losses recognised in the financial statements of KANN. Also CEC Africa has guaranteed the loan between KANN and the UBA. A notice of default has been issued by UBA which has resulted in the recognition of a liability in the Company’s financial statements.

CEC Africa is refocusing efforts on consolidating and stabilizing the Nigerian operating assets in the immediate to medium term, and position for growth in the longer term. These efforts include:

  • Immediate sale of CECA’s stake in Sierra Leone to a reputable institutional investor/developer.
  • Divestment of some early stage developments given the bank ability challenges and limited resources available.

No dividends were declared and paid by the Company during the year (2015: Nil).

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