Ndola Lime Company Limited (NLC) reported total revenues for the financial year ended 31st March 2018 of K60.1 million (2017: K89.6 million) and a loss after tax of K190 million (2017: K1.1 billion loss).
Major contributors to the loss were the below budget sales figures, huge finance costs; and penalties on overdue statutory obligations totalling K100 million.
On 21st September 2017, NLC’s Vertical Kiln 2 (VK2) was engulfed in flames, an occurrence that damaged several components of the kiln, rendering it dysfunctional. VK1 underwent refurbishments to its refractory bricks but could not be fired up due to NLC’s lack of working capital, a situation that eventually led to production at the company grounding to a halt with only limited repacking activity going on.
Subsequent to the year end, two (2) former employees of Ndola Lime Company Limited (NLC) instituted proceedings to the High Court of Zambia to place NLC under supervision pursuant to the Corporate Insolvency Act No. 9 of 2017. By order of the Court dated 5th October 2018, the Official Receiver was appointed as Interim Business Administrator of NLC. The application for the Business Rescue Proceedings will be heard in January 2019 at which all affected persons (including ZCCM-IH) will be heard. However, ZCCM-IH remains committed to the affairs of NLC and will continue to pursue all activities that better the Company and ZCCM-IH’s investments.
There were no dividends declared during the year under review (2017: Nil)