REVIEWED ABRIDGED GROUP RESULTS
FOR THE HALF YEAR ENDED 08 JANUARY 2023
DIRECTORS' RESPONSIBILITY
The Company's Directors are responsible for the preparation and fair presentation of the
Group's financial statements, of which this press release represents an extract.
These reviewed interim consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards and in a manner required by the Companies and Other Business Entities Act (Chapter 24:31) (COBE) and the Zimbabwe Stock Exchange (ZSE) Listing Requirements for Reviewed Interim Financial Statements except for the non-compliancestated in the paragraph below.
The principal accounting policies applied in the preparation of these interim consolidated financial statements are consistent with those applied in the previous interim consolidated financial statements, except for non-compliancewith IAS 21 - The Effects of Changes in Foreign Exchange Rates, IFRS 13 - Fair Value Measurement in the valuation of property, plant and equipment, IAS 1 - Presentation of Financial Statements and IFRS 15 - Revenue from Contracts with Customers and IAS 2 - Inventories.
CAUTIONARY STATEMENT - RELIANCE ON ALL FINANCIAL STATEMENTS PREPARED IN ZIMBABWE FOR 2020/2021
The Directors would like to advise users to exercise caution in the use of these interim consolidated financial statements due to the material and pervasive impact of the technicalities brought about by the change in the functional currency in Zimbabwe in February 2019, its consequential impact on the usefulness of the financial statements for 2020/2021 financial periods and the adoption of International Accounting Standard (IAS) 29 (Financial Reporting in Hyperinflationary Economies), effective 1 July 2019.
Whilst the Directors have exercised reasonable due care, and applied judgements that they
felt were appropriate in the preparation and presentation of these interim consolidated financial statements, certain distortions may arise due to various specific economic
factors that may affect the relevance and reliability of information that is presented in
economies that are experiencing hyperinflation, as well as technicalities regarding the change in functional and reporting currency.
The review conclusion on these interim consolidated financial statements has been modified by the independent auditors, Grant Thornton Chartered Accountants (Zimbabwe) as indicated in the review conclusion statement.
ADOPTION OF IAS 29 (FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMIES) As previously reported, the Public Accountants and Auditors Board (PAAB) having
assessed the impact of hyperinflation in the economy, advised that the conditions for
adopting IAS 29 were satisfied with effect from 1 July 2019.
IAS 29 requires that inflation-adjusted financial statements become the entity's primary financial statements. The Group has complied with this requirement, and this report is therefore based on inflation adjusted financial statements. Financial statements
prepared under the historical cost convention, have been presented as supplementary information.
EXTERNAL AUDITOR'S REVIEW CONCLUSION
This consolidated interim financial information have been reviewed by Grant Thornton Chartered Accountants (Zimbabwe) and the auditor's report signed by Trevor Mungwazi, Registered Public Auditor 0622.
An adverse review conclusion has been issued on the consolidated interim financial information of the Group, for the six months then ended. The adverse opinion was made regarding non- compliance with IAS 21 - The Effects of Changes in Foreign Exchange Rates, IFRS 13 - Fair Value Measurement in the valuation of property, plant and equipment, IAS 1 - Presentation of Financial Statements and IFRS 15 - Revenue from Contracts with Customers and IAS 2 - Inventories.
TRADING PERFORMANCE
Units sold declined by 45% due to the suspension of credit from 1st of July 2022.
Credit was suspended when the Bank Policy Rate was increased to 200% p.a. It was not viable for the business to finance the credit at those interest rates. In addition it was
not affordable for our customers to service their account obligations at rates in excess of 200% p.a.
At the onset of hyper-inflationary conditions the business reduced its exposure to credit sales because of the loss of value of the debtors' book.
SALES BY ENABLER | 6 MONTHS T/Y | 6 MONTHS L/Y |
Cash Sales | 98.9% | 61.8% |
Credit Sales | 0.1% | 38.2% |
TOTAL | 100% | 100% |
The sales value performance was negatively affected by the following;
- Price controls enforced by the FIU through the use of the official (exchange rate) in the sale of merchandise. The business maintained a competitive US dollar price in order to be able to compete on a US dollar basis, translating the US dollar price to ZWL price at the Auction Rate resulted in the uneconomic ZWL prices and loss of value.
- Informalisation of the economy which has resulted in illegal imports selling at below manufacturing costs which the business could not compete against.
CREDIT MANAGEMENT
The debtors book declined as credit sales were stopped in July 2022. This was due
to the increase in the prime interest rate to 200% per annum which made credit sales unviable for the business. The Group was focusing on repayments of outstanding debts during the period.
DIVIDEND
The Board deemed it prudent not to declare a dividend.
OUTLOOK
Trading conditions are expected to remain difficult as a result of existence of multiple devaluing exchange rates and the controls on the formal retail sector. High cost interest rates limit the business' ability to lend in ZWL.
With the economy dollarizing the business introduced US dollar credit with effect from 1 April 2023. This should see an improvement in sales and together with the
Recapitalisation proposal the Balance Sheet should strengthen and sustain the underwriting of US dollar credit.
APPRECIATION
The Board would like to express their heartfelt thanks to Management, Staff and all our other stakeholders for their efforts and support in this difficult climate.
B. Ndebele | |
Chairman | Chief Executive Officer |
16 May 2023 | |
Registered Office | |
Stand 808 Seke Road | |
Prospect Park | |
Harare |
ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION
INFLATION ADJUSTED | HISTORICAL COST | |||
at 08 | at 10 | at 08 | at 10 | |
January 2023 | July 2022 | January 2023 | July 2022 | |
Note | ZWL$ | ZWL$ | ZWL$ | ZWL$ |
ASSETS
ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY
INFLATION ADJUSTED | |||||
Non- | |||||
Share | Treasury | distributable | Revaluation | Retained | |
capital | shares | reserve | reserve | earnings | Total |
ZWL$ | ZWL$ | ZWL$ | ZWL$ | ZWL$ | ZWL$ |
Non-current assets | 480 762 686 | 487 265 484 | |||
Property, plant and equipment | 477 270 024 | 461 695 252 | |||
Intangible assets | 342 149 | 11 376 226 | |||
Right of Use of Asset | 3 150 513 | 14 194 006 | |||
Current assets | 483 091 392 | 681 818 384 | |||
Inventories | 386 165 373 | 503 669 631 | |||
Receivables - trade | 43 017 997 | 125 123 208 | |||
- other | 38 785 764 | 43 530 823 | |||
Cash and cash equivalents | 15 122 258 | 9 494 722 | |||
Total Assets | 963 854 078 | 1 169 083 868 | |||
EQUITY & LIABILITIES | |||||
Equity | (37 658 426) | 491 457 415 | |||
Non-current liabilities | 26 543 230 | 172 483 695 | |||
Deferred tax | 24 615 674 | 171 139 903 | |||
Lease Liability | 3 | 1 927 556 | 1 343 792 | ||
Current liabilities | 974 969 274 | 505 142 758 | |||
Payables - trade | 462 830 480 | 428 926 305 | |||
- other | 450 374 889 | 16 850 623 | |||
Short term borrowings | 4 | 53 106 865 | 53 624 749 | ||
Lease Liability (current portion) | 3 | 1 595 486 | 2 221 774 | ||
Tax payable | 7 061 554 | 3 519 307 | |||
Total Equity & Liabilities | 963 854 078 | 1 169 083 868 | |||
Number of shares in issue (net of treasury shares) | 380 901 152 | 380 901 152 | |||
Net asset value per share (cents) | (9.89) | 129.02 |
306 165 253 | 161 552 597 | |
303 941 012 | 158 923 254 | |
217 892 | 221 724 | |
2 006 349 | 2 407 619 | |
469 821 270 | 357 248 524 | |
372 895 251 | 215 191 591 | |
43 017 997 | 100 048 246 | |
38 785 764 | 34 416 726 | |
15 122 258 | 7 591 961 | |
775 986 523 | 518 801 121 | |
(223 891 026) | 89 796 823 | |
24 908 275 | 25 304 820 | |
22 980 719 | 24 230 327 | |
1 927 556 | 1 074 493 | |
974 969 273 | 403 699 478 | |
462 830 480 | 318 262 943 | |
450 374 888 | 37 967 743 | |
53 106 865 | 42 878 236 | |
1 595 486 | 1 776 526 | |
7 061 554 | 2 814 030 | |
775 986 523 | 518 801 121 | |
380 901 152 | 380 901 152 | |
(58.78) | 23.57 |
Balance at 09 January 2022 | 2 422 977 | (20 000) | 100 253 587 | - | 611 508 440 | 714 165 004 | ||||||||||||
Total comprehensive loss | ||||||||||||||||||
for the period | - | - | - | 5 534 057 | (228 241 646) (222 707 589) | |||||||||||||
Balance at 10 July 2022 | 2 422 977 | (20 000) | 100 253 587 | 5 534 057 | 383 266 794 | 491 457 415 | ||||||||||||
Total comprehensive | ||||||||||||||||||
income for the period | - | - | - | 42 477 972 | (571 593 813) (529 115 841) | |||||||||||||
Balance at 08 January 2023 | 2 422 977 | (20 000) | 100 253 587 | 48 012 029 | (188 327 019) (37 658 426) | |||||||||||||
HISTORICAL COST | ||||||||||||||||||
Non- | ||||||||||||||||||
Share | Treasury | distributable | Revaluation | Retained | ||||||||||||||
capital | shares | reserve | reserve | earnings | Total | |||||||||||||
ZWL$ | ZWL$ | ZWL$ | ZWL$ | ZWL$ | ZWL$ | |||||||||||||
Balance at 09 January 2022 | 38 407 | (317) | 6 765 441 | 30 696 320 | 4 137 490 | 41 637 341 | ||||||||||||
Total comprehensive | ||||||||||||||||||
loss for the period | - | - | - | 114 928 136 | (66 768 654) | 48 159 482 | ||||||||||||
Balance at 10 July 2022 | 38 407 | (317) | 6 765 441 | 145 624 456 | (62 631 164) | 89 796 823 | ||||||||||||
Total comprehensive | ||||||||||||||||||
income for the period | - | - | - | 62 001 547 | (375 689 396) (313 687 849) | |||||||||||||
Balance at 08 January 2023 | 38 407 | (317) | 6 765 441 | 207 626 003 | (438 320 560) (223 891 026) |
ABRIDGED GROUP STATEMENT OF COMPREHENSIVE INCOME
INFLATION ADJUSTED | HISTORICAL COST | ||||||||||||
26 weeks to | 26 weeks to | 26 weeks to | 26 weeks to | ||||||||||
08 January 2023 | 09 January 2022 | 08 January 2023 09 January 2022 | |||||||||||
Note | ZWL$ | ZWL$ | ZWL$ | ZWL$ | |||||||||
Revenue | 5 | 577 798 258 | 1 019 955 297 | 427 221 041 | 261 573 217 | ||||||||
Retail merchandise sales | 528 931 405 | 868 434 954 | 388 033 393 | 224 936 267 | |||||||||
Cost of sales | 96 872 428 | 241 270 575 | 69 921 669 | 52 887 698 | |||||||||
Gross profit | 432 058 977 | 627 164 379 | 318 111 724 | 172 048 569 | |||||||||
Other income | 5 816 272 | 1 293 857 | 9 970 116 | (9 191 710) | |||||||||
Manufacturing profit/(loss) | 65 208 305 | (17 496 020) | 42 024 230 | (3 778 163) | |||||||||
503 083 554 | 610 962 216 | 370 106 070 | 159 078 696 | ||||||||||
Trading expenses | (674 935 846) | (693 521 870) | (655 834 562) | (176 129 000) | |||||||||
Depreciation and amortisation | 6 | (888 707) | (7 130 604) | (841 442) | (1 074 316) | ||||||||
Employment costs | (203 201 449) | (185 049 820) | (195 985 032) | (66 436 189) | |||||||||
Occupancy costs | (241 356 165) | (190 553 480) | (231 830 493) | (50 216 681) | |||||||||
Trade receivable costs | (318 538) | (4 514 320) | (406 511) | (1 152 011) | |||||||||
Other operating costs | (229 170 987) | (306 273 646) | (226 771 084) | (57 249 803) | |||||||||
Trading (loss) /profit | (171 852 292) | (82 559 654) | (285 728 492) | (17 050 304) | |||||||||
Finance income | 48 849 695 | 126 029 892 | 39 172 592 | 33 668 215 | |||||||||
Operating (loss) / profit | (123 002 597) | 43 470 238 | (246 555 900) | 16 617 911 | |||||||||
Finance cost | 7 | (107 193 701) | (38 088 591) | (104 772 530) | (9 880 377) | ||||||||
Monetary (Loss) /gain | (333 726 795) | 370 196 129 | - | - | |||||||||
(Loss) / profit before tax | (545 179 053) | 375 577 776 | (351 328 430) | 6 737 534 | |||||||||
Tax expense | 8 | (26 414 760) | (9 067 141) | (24 360 966) | (2 637 626) | ||||||||
(Loss) /profit for the period | (571 593 813) | 366 510 635 | (375 689 396) | 4 099 908 | |||||||||
Revaluation of property, plant and equipment; net of tax | 42 477 972 | - | 62 001 547 | - | |||||||||
Total comprehensive (loss) / income for the period | (529 115 841) | 366 510 635 | (313 687 849) | 4 099 908 | |||||||||
Earnings per share | 9 | ||||||||||||
Basic earnings per share | (154.98) | 96.22 | (98.63) | 1.08 | |||||||||
Headline earnings per share | (155.21) | 95.96 | (98.84) | 0.87 | |||||||||
Key ratios | |||||||||||||
Gross margin | 81.69 | 72.22 | 81.98 | 76.49 | |||||||||
Trading expenses to Revenue from | |||||||||||||
Contracts with Customers | 127.60 | 79.86 | 169.01 | 78.30 | |||||||||
Trading margin | 32.5 | (9.5) | (73.6) | (7.6) | |||||||||
Operating margin | (23.3) | 5.0 | (63.5) | 7.4 |
ABRIDGED GROUP STATEMENT OF CASH FLOWS
INFLATION ADJUSTED | HISTORICAL COST | |||||||
26 weeks to | 26 weeks to | 26 weeks to | 26 weeks to | |||||
08 January 2023 | 09 January 2022 | 08 January 2023 | 09 January 2022 | |||||
ZWL $ | ZWL $ | ZWL $ | ZWL $ | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Cash (utilised in) / generated from trading | (340 181 515) | (41 754 480) | (326 268 340) | (16 456 630) | ||||
Working capital movements | 404 769 673 | (21 930 055) | 399 717 489 | (1 399 733) | ||||
Net cash utilised in operations | 64 588 159 | (63 684 535) | 73 449 149 | (17 856 363) | ||||
Finance income | 48 849 695 | 126 029 892 | 39 172 592 | 33 668 215 | ||||
Finance cost | (107 193 699) | (38 088 591) | (104 772 528) | (9 880 377) | ||||
Tax paid | - | (2 289 379) | - | (500 047) | ||||
Net cash generated from operating activities | 6 244 155 | 21 967 387 | 7 849 213 | 5 431 428 | ||||
Cash generated from / (utilised in) investing activities | (1 200 385) | 1 689 057 | (1 171 985) | 520 764 | ||||
Net cash (utilised in) / generated | ||||||||
from financing activities | 583 764 | (12 224 332) | 853 069 | (692 603) | ||||
Net increase in cash and cash equivalents | 5 627 534 | 11 432 112 | 7 530 297 | 5 259 589 | ||||
Cash and cash equivalents at beginning of period | 9 494 724 | 27 089 695 | 7 591 961 | 5 946 433 | ||||
Cash and cash equivalents at end of period | ||||||||
15 122 258 | 38 521 807 | 15 122 258 | 11 206 022 | |||||
PAGE
1 | Directors: M. P. Mahlangu (Chairman), B. Ndebele (C.E.O), B. H. Henderson, F. K. Khan, L. Mabhiza, W. Matsaira, A. B. Miek, S. M. Takaendisa |
REVIEWED ABRIDGED GROUP RESULTS
FOR THE HALF YEAR ENDED 08 JANUARY 2023
SUPPLEMENTARY INFORMATION
-
CORPORATE INFORMATION
The Group is incorporated and domiciled in Zimbabwe and its shares are publicly traded on the Zimbabwe Stock Exchange. It is engaged in the manufacture and retailing of fashion apparel and related merchandise. - BASIS OF PREPARATION
The Group's financial statements for the six months ended 08 January 2023 have been prepared in accordance with the requirements of the Zimbabwe Stock Exchange Listing Requirements and in a manner required by the Zimbabwe Companies and Other Business Entities Act (Chapter 24:31) (COBE) except for non-compliance with International Financial Reporting Standards explained in this report. The Listing Requirements require interim financial statements to be prepared in accordance with International Financial Reporting Standards ('IFRS") as issued by the International Accounting Standards Board ("IASB") and as a minimum, contain the information required by International Accounting Standards ("IAS ") 34 (Interim Financial Reporting). The Group's inflation adjusted interim financial statements have been prepared based on the statutory records that are maintained under the historical cost basis and are presented in Zimbabwe Dollars (ZWL$).
The principal accounting policies applied in the preparation of the Group interim financial statements are in terms of IFRS except for the non-compliance with IAS 21 - The Effects of Changes in Foreign Exchange Rates, IFRS 13 - Fair Value Measurement in the valuation of property, plant and equipment, IAS 1 - Presentation of Financial Statements and IFRS 15 - Revenue from Contracts with Customers and IAS 2 - Inventories, and its consequential impact on the inflation adjusted amounts determined in terms of IAS 29 (Financial reporting in Hyperinflationary Economies) and have been applied consistently in all material respects with those of the previous consolidated annual financial statements.
- IAS 21 (The Effects of Changes in Foreign Exchange Rates)
As noted in the Group's 2019 financial statements, the Government of Zimbabwe promulgamated Statutory Instrument 33 (S.I. 33) on 22 February 2019, giving legal effect to the reintroduction of the Zimbabwe Dollar (ZWL$) as legal tender abd prescribed that for accounting and other purposes, certain assets and liabilities on the effective date would be deemed to be Zimbabwe Dollars at the rate which was at par with the United States Dollar (USD). Guidance issued by the Public Accountants and Auditors Board (PAAB), noted that the requirements of SI33 were contrary to the provisions of IAS 21. The Directors have always ensured compliance with IFRS but were unable to do so in respect of the comparative financial information due to the conflict between IAS 21 and local statutory requirements. Due to the material and pervasive impact of these technicalities in the previous periods and the carrying over effects of these misstatements on the current period consolidated inflation-adjusted financial statements, the Directors would like to advise users to exercise caution in their use of these inflation- adjusted financial statements. - Adoption of IAS 29 (Financial Reporting in Hyperinflationary Economies)
In October 2019, the PAAB issued a pronouncement prescribing that the application of financial reporting in hyperinflationary economies had become effective in Zimbabwe, for reporting periods on or after 01 July 2019. These financial statements have been prepared in accordance with IAS 29. The Group adopted the Zimbabwe Consumer Price Index ('CPI") as the general price index to restate transactions and balances. Monetary assets and liabilities and non-monetary assets and liabilities carried at fair value have been restated as they are presented at the measuring unit current at the end of the reporting period. Items recognised in the income statement have
been restated by applying the change in general price index from the dates when initially recorded in the Group's financial records (transaction date). A net monetary adjustment was recognised in the statement of profit or loss for the half year ended 09 January 2022. Comparative amounts in the Group financial results have been restated to reflect the change in the general price index from 22 February 2019 to the end of the reporting period. All items in the statement of cashflows are expressed based on the restated financial information for the period.
As mentioned above, the Group adopted the Zimbabwe Consumer Price Index ("CPI") as the general price index and used the monthly indices to inflation adjust the historical figures. The indices and conversion factors used to restate the accompanying financial statements are as follows:
CPI on 31 December 2022 | Indices | Conversion factor |
13 672.91 | 1.00 | |
CPI on 30 June 2022 | 8 707.35 | 1.57 |
CPI on 31 December 2021 | 3 977.46 | 3.44 |
CPI on 30 June 2021 | 2 986.44 | 4.58 |
Average CPI - 6 months to 31 December 2022 | 12 678.08 | |
Average CPI - 6 months to 31 December 2021 | 3 481.73 |
INFLATION ADJUSTED | HISTORICAL COST | ||||||||
26 weeks to | 26 weeks to | 26 weeks to | 26 weeks to | ||||||
08 January 2023 | 09 January 2022 08 January 2023 | 09 January 2022 | |||||||
ZWL$ | ZWL$ | ZWL$ | ZWL$ | ||||||
3. LEASE LIABILITY | |||||||||
Analysis: | |||||||||
Non-current | 1 927 556 | 1 343 792 | 1 927 556 | 1 074 493 | |||||
Current | 1 595 486 | 2 221 774 | 1 595 486 | 1 776 526 | |||||
3 523 042 | 3 565 566 | 3 523 042 | 2 851 019 | ||||||
Undiscounted future payments: | |||||||||
Payable within one year | 2 960 877 | 5 554 442 | 1 776 528 | 1 776 528 | |||||
Payable two to five years | 4 737 405 | 7 776 219 | 2 960 877 | 4 441 320 | |||||
7 698 282 | 13 330 661 | 4 737 405 | 6 217 848 | ||||||
4. SHORT TERM BORROWINGS
Short-term borrowings are jointly secured Cession of Book Debts, Power of Attorney to register an NGCB and Cession of Insurance Policy with security Agent as First Loss Payee. Borrowings are renewed on maturity in terms of ongoing facilities negotiated with the respective financial institutions. The average interest of 51.75% per annum was applicable on the outstanding balance.
INFLATION ADJUSTED | HISTORICAL COST | ||||||
26 weeks to | 26 weeks to | 26 weeks to | 26 weeks to | ||||
08 January 2023 | 09 January 2022 08 January 2023 | 09 January 2022 | |||||
ZWL$ | ZWL$ | ZWL$ | ZWL$ | ||||
5. REVENUE | |||||||
Sale of merchandise | 528 931 405 | 890 637 272 | 388 033 393 | 227 109 946 | |||
- Retail sales | |||||||
516 060 566 | 868 434 954 | 376 166 793 | 224 936 267 | ||||
- Factory sales to third parties | 12 870 839 | 22 202 318 | 11 866 600 | 2 173 679 | |||
Interest receivable | 48 849 695 | 126 029 892 | 39 172 592 | 33 668 215 | |||
- Accounts receivable | 48 849 470 | 125 880 981 | 39 172 386 | 33 632 209 | |||
- Other | 225 | 148 911 | 206 | 36 006 | |||
Service fees | 13 572 | 3 024 096 | 11 559 | 731 213 | |||
Commissions | 3 586 | 264 037 | 3 497 | 63 843 | |||
Total | 577 798 258 | 1 019 955 297 | 427 221 041 | 261 573 217 | |||
Top Quality Clothing That Lasts
INFLATION ADJUSTED | HISTORICAL COST | |||||||||
26 weeks to | 26 weeks to | 26 weeks to | 26 weeks to | |||||||
08 January 2023 | 09 January 2022 08 January 2023 | 09 January 2022 | ||||||||
ZWL$ | ZWL$ | ZWL$ | ZWL$ | |||||||
6. | DEPRECIATION AND AMORTISATION | |||||||||
Depreciation charge | 886 609 | 7 073 125 | 839 507 | 1 065 656 | ||||||
Amortisation charge | 2 098 | 57 479 | 1 935 | 8 660 | ||||||
Total charge | 888 707 | 7 130 604 | 841 442 | 1 074 316 | ||||||
7. | FINANCE COSTS | |||||||||
Borrowings | 56 961 826 | 3 774 195 | 54 616 196 | 1 097 916 | ||||||
Other | 50 231 875 | 34 314 396 | 50 156 334 | 8 782 461 | ||||||
Total finance costs | 107 193 701 | 38 088 591 | 104 772 530 | 9 880 377 | ||||||
8. | TAX | |||||||||
Current tax charge for the period | (5 386 860) | - | (4 968 022) | - | ||||||
Deferred tax charge for the period | 31 801 620 | 9 067 141 | 29 328 988 | 2 637 626 | ||||||
Total tax charge | 26 414 760 | 9 067 141 | 24 360 966 | 2 637 626 | ||||||
9. (LOSS) / EARNINGS PER SHARE | ||||||||||
(Loss) / earnings attributable to shareholders | (590 337 853) | 366 510 635 | (375 689 396) | 4 099 908 | ||||||
Adjusted for on-recurring items:- | ||||||||||
Loss on disposal of property, | ||||||||||
plant and equipment | (869 337) | (983 567) | (808 313) | (786 458) | ||||||
Headline (loss) / earnings | (591 207 190) | 365 527 068 | (376 497 709) | 3 313 450 | ||||||
Headline (loss) / earnings per share (cents) | (155,21) | 95,96 | (98,84) | 0,87 | ||||||
Weighted average number of ordinary shares | ||||||||||
used in calculating (loss) / earnings per share | 380 901 152 | 380 901 152 | 380 901 152 | 380 901 152 | ||||||
10. SEGMENT INFORMATION
INFLATION ADJUSTED | |||||||||||||||||||||||||
Manufacturing | Retail | Elimination | Consolidated | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||
ZWL$ | ZWL$ | ZWL$ | ZWL$ | ZWL$ | ZWL$ | ZWL$ | ZWL$ | ||||||||||||||||||
External Sales | 12 870 839 | 22 202 318 | 516 060 566 | 868 434 955 | - | - | 528 931 405 | 890 637 272 | |||||||||||||||||
Inter-segment sales | 103 773 058 | 69 859 499 | - | - | (103 773 058) | (69 859 499) | - | - | |||||||||||||||||
Interest receivable | - | - | 48 849 695 | 126 029 892 | - | - | 48 849 695 | 126 029 892 | |||||||||||||||||
Service fees | - | - | 13 572 | 3 024 096 | - | - | 13 572 | 3 024 096 | |||||||||||||||||
Commissions | - | - | 3 586 | 264 037 | - | - | 3 586 | 264 037 | |||||||||||||||||
Total revenue | 116 643 897 | 92 061 817 | 564 927 419 | 997 752 980 | (103 773 058) | (69 859 499) | 577 798 258 | 1 019 955 297 | |||||||||||||||||
Segment result | |||||||||||||||||||||||||
Profit/(loss) for the period | 40 953 650 | (17 121 577) (266 014 247) | (82 225 305) | 53 208 305 | (334 349) (171 852 292) | (82 559 654) | |||||||||||||||||||
Monetary (loss) / gain | 44 325 799 | - | 10 207 028 | 370 196 129 | (388 259 622) | - | (333 726 795) | 370 196 129 | |||||||||||||||||
Finance income | - | - | 48 849 695 | 126 029 892 | - | - | 48 849 695 | 126 029 892 | |||||||||||||||||
Finance cost | (1 327 104) | (374 442) (105 866 596) | (38 088 591) | - | - | (107 193 700) | (38 088 591) | ||||||||||||||||||
Tax expense | 27 108 070 | 2 608 969 | (53 522 830) | (9 067 141) | - | - | (26 414 760) | (9 067 141) | |||||||||||||||||
Net (loss) / profit | |||||||||||||||||||||||||
111 060 415 | (14 887 050) | (366 346 951) | 366 844 984 | (316 307 277) | (334 349) | (571 593 813) | 366 510 635 | ||||||||||||||||||
HISTORICAL COST | |||||||||||||||||||||||||
Manufacturing | Retail | Elimination | Consolidated | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||
ZWL$ | ZWL$ | ZWL$ | ZWL$ | ZWL$ | ZWL$ | ZWL$ | ZWL$ | ||||||||||||||||||
External Sales | 11 866 600 | 2 173 679 | 376 166 793 | 224 936 267 | - | - | 388 033 393 | 227 109 946 | |||||||||||||||||
Inter-segment sales | 97 802 740 | 21 693 050 | - | - | (97 802 740) | (21 693 050) | - | - | |||||||||||||||||
Interest receivable | - | - | 39 172 592 | 33 668 215 | - | - | 39 172 592 | 33 668 215 | |||||||||||||||||
Service fees | - | - | 11 559 | 731 213 | - | - | 11 559 | 731 213 | |||||||||||||||||
Commissions | - | - | 3 497 | 63 843 | - | - | 3 497 | 63 843 | |||||||||||||||||
Total revenue | 109 669 340 | 23 866 729 | 415 354 441 | 259 399 538 | (97 802 740) | (21 693 050) | 427 221 041 | 261 573 217 | |||||||||||||||||
Segment result | |||||||||||||||||||||||||
(Loss) / profit for the period | 43 300 472 | (3 778 163) (287 004 734) | (13 224 141) | (42 024 230) | (48 000) (285 728 492) | (17 050 304) | |||||||||||||||||||
Finance income | - | - | 39 172 591 | 33 668 215 | - | - | 39 172 592 | 33 668 215 | |||||||||||||||||
Finance cost | - | - | (104 772 529) (9 880 377) | - | - | (104 772 530) | (9 880 377) | ||||||||||||||||||
Tax (credit) / expense | 25 000 370 | 758 951 | (49 361 336) | (3 396 577) | - | - | (24 360 966) | (2 637 626) | |||||||||||||||||
Net profit | |||||||||||||||||||||||||
68 300 842 | (3 019 212) | (401 966 008) | 7 167 120 | (42 024 230) | (48 000) | (375 689 396) | 4 099 908 | ||||||||||||||||||
INFLATION ADJUSTED | HISTORICAL COST | ||||||||||||||||||||||||
at 08 | at 09 | at 08 | at 09 | ||||||||||||||||||||||
January 2023 January 2022 | January 2023 January 2022 | ||||||||||||||||||||||||
ZWL$ | ZWL$ | ZWL$ | ZWL$ | ||||||||||||||||||||||
11. CONTINGENT LIABILITIES | |||||||||||||||||||||||||
There are no contingent liabilities. | |||||||||||||||||||||||||
12. CAPITAL EXPENDITURE FOR THE PERIOD | 1 200 385 | 424 187 | 1 171 985 | 339 179 | |||||||||||||||||||||
- EVENTS AFTER THE END OF REPORTING PERIOD
No event material to the understanding of this report has occurred between the end of the reporting period and the date of approval of these interim consolidated financial statements. - GOING CONCERN CONSIDERATIONS
The financial statements have been prepared on a going concern basis which assumes the Group will continue to operate for the foreseeable future. The inflation adjusted loss for the period amounted to ZWL$590,337,853 (HY2022: Profit ZWL366,510,635). Current liabilities exceeded current assets by ZWL$491,877,882 (FY2022 current assets exceeded current liabilities by ZWL$176,675,626). These conditions may give rise to a material uncertainty
which may cast doubt on the Company's ability to continue operating as a going concern and to realise its assets and discharge its obligations in the normal course of business. However mitigation efforts have been explored by the Group. The Group is engaged in discussions in a transaction that involves raising capital for the Group's working capital requirements and expansion initiatives through the issuance of shares by way of a rights offer. This has been notified to shareholders as per the Group's cautionary statement issued on 15 May 2023. The Directors have
assessed the ability of the company to continue as a going concern on a continuous basis and believe that the going concern assumption used in the preparation of the financial statements is appropriate.
PAGE
2 | Directors: M. P. Mahlangu (Chairman), B. Ndebele (C.E.O), B. H. Henderson, F. K. Khan, L. Mabhiza, W. Matsaira, A. B. Miek, S. M. Takaendisa |
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Truworths Ltd. published this content on 22 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2023 12:56:01 UTC.