REVIEWED ABRIDGED | |
FINANCIAL RESULTS | |
AFRICA LTD | for the Half Year ended 30 June 2023 |
www.unifreight.co.zw
Chairman's Statement: for the Half Year ended 30 June 2023.
Dear Shareholder,
Overview
The first half of 2023 has been excellent for Unifreight with overall volumes up 38% year on year. Significant contributions have come from tobacco, where we are now transporting over 40,000 tons/annum which is 91% up from last year. With the new fleet we have also been able to dedicate vehicles to blue chip customers such as Delta, Triangle, Unilever, Nestle, Cairns who all require nationwide distribution.
The Zimbabwe Dollar continued to depreciate during HY23 which, combined with the bank policy lending rate at 80%, has resulted in the banking sector loan to deposit ratio remaining low thus restricts business's ability to borrow and finance short term liquidity issues. The result of this is the retractive cash flow environment where many businesses stretch credit terms instead of utilizing overdraft facilities.
Financial Performance Summary
The Group's financial results and the commentary have been prepared on an inflation-adjusted basis as required by IAS 29 "Financial Reporting in Hyperinflationary Economies". Financial statements prepared under the historical cost convention have only been presented as supplementary information. The Directors would like to advise users to exercise caution on their use of these audited abridged consolidated financial statements, due
to the material and pervasive impact of the technical difficulties of reporting under International Accounting Standard (IAS) 29.
We are pleased to present inflation adjusted Group Revenues of ZWL 55 billion which are 115% above prior year restated Revenues of ZWL 22 billion. The Group continues to monitor costs under the current volatile environment. Tonnage grew by 50% from prior year (though 18% below budget), largely driven by tobacco volumes and increased FTL volumes from new vehicle assets.
The Group recorded a net profit before tax of ZWL $6 billion which is 30% below prior year due to increase in finance costs. Finance costs were driven by revaluation of foreign denominated loans obtained to finance new vehicles amounting to ZWL 44 billion.
Total Group Inflation Adjusted Earnings were ZWL 66 billion (Historical earnings ZWL 95 billion), largely driven by the Revaluation of assets following a change in accounting policy from cost model to revaluation model.
Our balance sheet grew from ZWL 66 billion to ZWL 269 billion due to a combination of recapitalisation of our fleet and revaluation of assets.
Dividend declaration
Given the Group's focus on improving working capital cycles as well as the need to reduce exposures to borrowings and foreign liabilities, the board has decided not to declare an interim dividend.
Outlook
The Group remains optimistic about the future and looks forward to being able to utilize our increased capacities during the traditional festive period ramp up in retail spend between October and December. We are also hopeful there will be interventions from government to curtail informal imports that have been competing with domestically produced goods so as to support local industry, and promote job creation.
Appreciation
On behalf of the Board, I wish to express my sincere gratitude and appreciation to our customers, business partners, and our valued shareholders for their confidence in us, which will be deservedly rewarded over time. I would also like to extend my gratitude to the Unifreight Board of Directors, Employees, Management, and Executive team for their passion, commitment, and dedication to achieving a high-performance culture and ensuring Unifreight continues to grow.
For and on behalf of the Board
Peter Annesley
Board Chairman
21 September 2023
Auditor's Statement
These Interim Abridged Consolidated Inflation Adjusted
Financial results for the six months ended 30 June 2023 have been reviewed by Messrs Grant Thornton Chartered Accountants (Zimbabwe) and a qualified review conclusion was issued thereon.
This review conclusion is modified with respect to non- compliance with International Accounting Standard (IAS) 21 - "The Effects of Changes in Foreign Exchange Rates".
The review conclusion has been made available to management and those charged with governance. The Independent Review Report on the Interim Abridged Consolidated Inflation Adjusted Financial Information is available for inspection at the Company's registered office.
The engagement partner on the review engagement resulting in this independent review conclusion is Farai Chibisa (PAAB Number 0547).
UNIFREIGHT AFRICA LIMITED REVIEWED ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2023
ASSETS
Reviewed | Audited | |
June 2023 | December | December |
2022 | 2021 | |
*Restated | *Restated | |
Ination Adj | Ination Adj | Ination Adj |
ZWL 000 | ZWL 000 | ZWL 000 |
Reviewed | ||
June 2023 | December | December |
2022 | 2021 | |
*Restated | *Restated | |
Historic | Historic | Historic |
ZWL 000 | ZWL 000 | ZWL 000 |
Attributable to equity shareholders of the parent | ||||||||
REVIEWED ABRIDGED | Non- | Fairvalue | Equityportionof | |||||
distributable | reserveof | |||||||
CONSOLIDATED STATEMENT | ||||||||
financial | ||||||||
OF CHANGES IN EQUITY | Share | Share | Revaluation | Shareholders | Retained | |||
Reserves | assetsat | Total Equity | ||||||
as at 30 June 2023 | Capital | Premium | reserve | loans | earnings | |||
FVOCI | ||||||||
InflationAdj | InflationAdj | InflationAdj | InflationAdj | InflationAdj | InflationAdj | InflationAdj | InflationAdj | |
ZWL000 | ZWL000 | ZWL000 | ZWL000 | ZWL000 | ZWL000 | ZWL000 | ZWL000 |
Non current assets
Vehicles and equipment
Investment properties
Investment in equity instruments
Right of use of asset
Intangible assets
Current assets
Inventories
Income tax asset
Trade and other receivables
Cash and cash equivalents
TOTAL ASSETS
EQUITY AND LIABILITIES
226,589,018 | 37,647,399 | 32,287,681 | |||
164,212,447 | 11,872,620 | 14,525,421 | |||
45,738,500 | 16,304,622 | 12,423,180 | |||
6,663,932 | 1,814,766 | 3,415,604 | |||
9,252,737 | 6,933,990 | 1,640,278 | |||
721,402 | 721,401 | 283,198 | |||
42,698,482 | 28,963,711 | 2,271,441 | |||
4,141,311 | 2,177,615 | 816,407 | |||
- | - | 1,264 | |||
33,980,315 | 26,143,241 | 1,349,484 | |||
4,576,856 | 642,855 | 104,286 | |||
269,287,500 | 66,611,110 | 34,559,122 |
218,696,956 | 8,220,539 | 2,287,570 | ||
164,212,447 | 1,481,311 | 168,349 | ||
45,738,500 | 5,219,570 | 1,156,915 | ||
6,663,932 | 580,958 | 810,258 | ||
2,080,577 | 937,200 | 150,548 | ||
1,500 | 1,500 | 1,500 | ||
41,743,616 | 6,915,918 | 528,836 | ||
3,186,445 | 500,303 | 183,669 | ||
- | 2,697 | 300 | ||
33,980,315 | 6,207,122 | 320,128 | ||
4,576,856 | 205,796 | 24,739 | ||
260,440,572 | 15,136,457 | 2,816,406 |
Balance as at 1 January 2022
Change in accounting policy
Restated opening balance
Restated Profit for the period
Change in accounting policy
Prot for the year
Net loss on equity instruments designated at fair value through other comprehensive income
Balance as at 31 December 2022
Balance as at 1 January 2023
Loss for the period
Net gain on equity instruments designated at fair value through other comprehensive income
Other comprehensive income for the period
Balance as at 30 June 2023
512,195 | 990,784 | 17,423,352 | - | 3,908,540 | 4,295,372 | 5,045,347 | 32,175,590 | |||
- | - | - | - | - | - | 424,204 | 424,204 | |||
512,195 | 990,784 | 17,423,352 | - | 3,908,540 | 4,295,372 | 5,469,551 | 32,599,794 | |||
- | - | - | - | - | - | 11,666,685 | 11,666,685 | |||
- | - | - | - | - | - | 1,242,564 | 1,242,564 | |||
- | - | - | - | - | - | 10,424,121 | 10,424,121 | |||
- | - | - | - | (6,748,221) | - | - | (6,748,221) | |||
512,195 | 990,784 | 17,423,352 | - | (2,839,681) | 4,295,372 | 17,136,236 | 37,518,258 | |||
512,195 | 990,784 | 17,423,352 | - | (2,839,681) | 4,295,372 | 17,136,236 | 37,518,258 | |||
- | - | - | - | - | - | (9,300,144) | (9,300,144) | |||
- | - | - | - | 4,849,166 | - | - | 4,849,166 | |||
- | - | - | 71,363,533 | - | - | - | 71,363,533 | |||
512,195 | 990,784 | 17,423,352 | 71,363,533 | 2,009,485 | 4,295,372 | 7,836,092 | 104,430,813 |
Equity
Share capital
Share premium
Revaluation reserve
Non-distributable reserve
Fair value reserve for financial assets
at FVOCI
Equity component of shareholders loans
Retained earnings
104,430,813
512,195
990,784
71,363,533
17,423,352
2,009,485
4,295,372
7,836,092
37,518,258
512,195
990,784
-
17,423,352
(2,839,681)
4,295,372
17,136,236
32,599,794
512,195
990,784
-
17,423,351
3,908,540
4,295,372
5,469,552
102,321,767
1,065
2,060
108,903,948
46,356
6,541,206
8,931
(13,181,799)
6,310,987
1,065
2,060
-
46,356
247,693
8,931
6,004,882
2,345,137
1,065
2,060
-
46,356
476,994
8,931
1,809,731
REVIEWED ABRIDGED | Reviewed | Audited |
CONSOLIDATED STATEMENT OF | June 2023 | Dec 2022 |
CASH FLOWS | ||
for the Half Year ended 30 June 2023 | Ination Adj | Ination Adj |
ZWL 000 | ZWL 000 |
Period / Month | Factor |
June 2021 | 14.3015 |
December 2021 | 10.7382 |
June 2022 | 4.9051 |
December 2022 | 3.1237 |
Non current liabilities
Loans and borrowings
Lease liability
Deferred tax liabilities
79,762,091
38,413,971
1,176,597
40,171,523
15,818,876
11,502,977
2,858,867
1,457,032
1,668,000
-
649,264
1,018,736
73,071,894
38,413,971
1,176,597
33,481,326
4,626,028
3,682,428
915,204
28,396
179,941
-
154,020
25,921
Net utilised from operating activities
Cash utilised from operations
Interest paid
Taxation paid
Net cash utilised in investing activities
(19,143,825)
(19,037,780)
-
(106,045)
(56,505,465)
(17,581,444)
(15,630,620)
(1,940,256)
(10,568)
(1,889,125)
June 2023 | 1.0000 |
Accounting policies
Except for the change in the accounting policy relating to the subsequent recognition of vehicles, furniture and equipment from a cost model to a revaluation model in accordance to IAS 16: "Property, Plant and Equipment", and the policy related to the subsequent recognition of investment properties from a
cost model to a fair value model in accordance to IAS 40: "Investment Properties", the accounting policies used in preparing the abridged financial statement for the period ended 30 June 2023 are consistent with those used in preparing
Current liabilities | 85,094,596 | 13,273,976 | 291,328 | 85,046,911 | 4,199,442 | 291,328 | |||||
Trade and other payables | 7,331,858 | 5,552,447 | 240,459 | 7,331,858 | 1,777,495 | 240,459 | |||||
Income tax payable | 49,933 | 155,978 | - | 2,248 | - | - |
Purchase of vehicles and equipment to increase operations
Proceeds from sale of property, vehicles and equipment
(58,645,728)
2,140,263
(4,171,185)
2,243,354
the group financial statements of the year ended 31 December 2022 and are in
accordance with International Financial Reporting Standards (IFRF) as issued by the International Accounting Standards Board (IASB).
Lease liability | 934,290 | 165,336 | 7,013 | 934,290 | 52,929 | 7,013 |
Loans and borrowings | 76,778,515 | 7,400,215 | 43,856 | 76,778,515 | 2,369,018 | 43,856 |
TOTAL EQUITY AND LIABILITIES | 269,287,500 | 66,611,110 | 34,559,122 | 260,440,572 | 15,136,457 | 2,816,406 | |
Reviewed | Reviewed | Reviewed | Reviewed | ||||
REVIEWED ABRIDGED CONSOLIDATED | June 2023 | June 2022 | June 2023 | June 2022 | |||
STATEMENT OF PROFIT OR LOSS AND OTHER | *Restated | *Restated |
Dividend received
Net cash generated from financing
activities
Proceeds from borrowings
Principal payment of lease liabilities
Repayments of borrowings
-
93,800,332
100,760,432
(348,698)
(6,611,402)
38,706
19,280,089
21,522,968
(107,229)
(2,135,650)
Trade and other receivables
Current
Trade receivables
Receiveables due from related parties Less: provision for impairment Trade receivables - net
June 2023 | Dec 2022 |
ZWL 000ZWL 000
33,862,738 6,844,791
42,024-
(1,346,527)(797,718)
32,558,235 6,047,073
COMPREHENSIVE INCOME | Ination Adj | Ination Adj | Historic | Historic |
for the Half Year ended 30 June 2023 | ||||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | |
Revenue | 55,663,427 | 22,174,594 | 31,498,560 | 3,114,737 |
Operating costs | (39,827,219) | (20,823,289) | (22,136,812) | (2,771,490) |
Other operating income | 33,576,688 | 2,530,426 | 41,885,895 | 2,224,282 |
Earnings before interest, tax, depreciation and amortisation | 49,412,896 | 3,881,731 | 51,247,643 | 2,567,529 |
(EBITDA) | ||||
Finance costs | (46,070,142) | (562,197) | (59,548,039) | (78,689) |
Depreciation | (2,418,266) | (1,395,675) | (782,890) | (27,358) |
Monetary gain | 5,082,240 | 6,668,639 | - | - |
Increase /(decrease) in cash and cash | 18,151,042 | (190,480) | |
equivalents | |||
Cash and cash equivalents at beginning of | 642,855 | 265,650 | |
the period | |||
Net foreign exchange dierences | 2,019,171 | 49,187 | |
Eects of ination | (16,236,212) | 518,498 | |
Cash and cash equivalents as at | |||
4,576,856 | 642,855 | ||
period end | |||
Prepayments
Sta debtors
Other debtors
Total trade and other receivables
Trade and other payables
Current
455 19,039,432
5,38928,798
1,416,236 1,027,938
33,980,315 26,143,241
June 2023 | Dec 2022 |
ZWL 000ZWL 000
Profit before taxation | 6,006,728 | 8,592,498 | (9,083,286) | 2,461,482 | |
Income tax expense | (15,306,872) | (805,600) | (10,103,394) | (80,490) | |
(Loss)/profit for the period | (9,300,144) | 7,786,898 | (19,186,680) | 2,380,992 | |
Other comprehensive income | |||||
Other comprehensive income to be reclassified to profit or loss in | |||||
subsequent periods: | |||||
Net gain/(loss) on equity instruments designated at fair value through | 4,849,166 | (5,076,907) | 6,082,974 | (90,752) | |
other comprehensive income | |||||
Revaluation gain | 94,797,467 | - | 132,337,882 | - | |
Deferred tax through other comprehensive income | (23,433,934) | - | (23,433,934) | - | |
Other comprehensive income /(loss) for the period, net of tax | 76,212,699 | (5,076,907) | 114,986,922 | (90,752) | |
Total comprehensive income for the period, net of tax | 66,912,555 | 2,709,991 | 95,800,242 | 2,290,240 | |
Earnings per share | |||||
Basic earnings for the year attributable to ordinary equity holders of the | 60,315 | 2,545 | 89,976 | 2,151 | |
parent (cents) | |||||
Diluted earnings for the year attributable to ordinary equity holders of | 60,315 | 2,545 | 89,976 | 2,151 | |
the parent (cents) | |||||
Headline earnings /(loss) for the year attributable to ordinary equity | 1,702 | (4,511) | 4,631.8 | (78) | |
holders of the parent (cents) | |||||
NOTES TO THE ABRIDGED REVIEWED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2023
General Information
Unifreight Africa Limited (formerly Pioneer Corporation Africa Limited) was incorporated in Zimbabwe in 1970. It is the holding company of a Group of companies primarily involved in the road transport industry whose main activities include intercity freight consolidations, the distribution of general goods, and a courier service.
Other entities in the Group are incorporated in Botswana. The company is listed on the Zimbabwe Stock Exchange. These abridged consolidated financial statements are
presented in Zimbabwe Dollars and were authorised for issue by the Board of Directors on 15 September 2023.
Basis of preparation
The abridged nancial statements of the Group have been prepared in accordance with IAS34 - interim financial reporting as issued by the international Accounting Standards Board
(IASB). In the current reporting period, management decided to change the accounting policy relating to the subsequent recognition of vehicles, furniture and equipment from a cost model to a revaluation model in accordance to IAS 16: "Property, Plant and Equipment", and the policy related to the subsequent recognition of investment properties from a cost model to a fair value model in accordance to IAS 40: "Investment Properties". Both these changes in policies were done in accordance to IAS 8 : "changes
in accounting policies, accounting for changes in estimates and errors". Prior year figures were restated in accordance with IAS 40. All other accounting policies are applied consistently throughout the Group. The abridged financial statements are
presented in Zimbabwe dollars (ZWL) and all values are rounded to the nearest 1 000 dollars except where otherwise stated.
The abridged financial statements are initially prepared under the historical cost convention and restated for the changes in the general purchasing power of the
functional currency for the purposes of fair presentation in accordance with IAS 29
(Financial Reporting in Hyperinflationary Economies). This historical cost information has been restated for changes in the general purchasing power of the Zimbabwe
dollar and as a result are stated in terms of the measuring unit current at the end of the reporting period. Accordingly, the inflation adjusted abridged financial statements represent the primary financial statements of the Group, the Historical Consolidated Statement of profit or Loss and other comprehensive income and Consolidated Statement of financial position has been included only as supplementary information.
Inflation adjustment
The Public Accountants and Auditors Board (PAAB) in their circular 01/19 communicated that the factors and characteristics to apply IAS 29, Financial Reporting in Hyper-
Inflationary Economies had been met in Zimbabwe. The pronouncement require that entities reporting in Zimbabwe apply the requirements of IAS 29 with effect from 1 July
2019.
IAS 29 requires that the financial statements prepared in the currency of a hyperinflationary economy be stated in terms of the measuring unit current at the balance sheet date and the corresponding figures for the previous period be stated in
the same terms. The restatement has been calculated by means of conversion factors derived from the consumer price index. The Group used the inflation adjustment
factors derived from the Total Consumption Poverty Line (TCTL) as published by the Zimbabwe National Statistics Agency (ZIMSTATS). The following factors were applied:
Trade payables | 2,761,803 | 3,581,955 |
Trade payables due to related parties | 18,981 | 592,447 |
Accrued expenses | 525,547 | 795,091 |
Social security and other statutory | 4,025,527 | 582,954 |
liabilities | ||
7,331,858 | 5,552,447 |
Borrowings
Borrowings represent facilities for capital expenditure and working capital. The interest rates for USD accounts attract an interest is between 12.15% to 13% and for ZWL Loans the interest rates are from 89%.
Jun 2023 | Dec 2022 | |
ZWL 000 | ZWL 000 | |
Shareholder loans | 4,295,372 | 4,295,372 |
Equity component of shareholders | (4,295,372) | (4,295,372) |
loans | ||
Loans and borrowings | 115,192,486 | 18,903,192 |
115,192,486 | 18,903,192 | |
Finance cost | ||
Finance cost comprises the following: | ||
Jun 2023 | Jun 2022 | |
ZWL 000 | ZWL 000 | |
Bank borrowings | 1,641,424 | - |
Foreign exchange losses from revaluation of | 44,167,170 | - |
foreign denominated loans | ||
Leases liabilities | 261,548 | 63,388 |
46,070,142 | 63,388 | |
Capital expenditure | ||
Jun 2023 | Dec 2022 | |
ZWL 000 | ZWL 000 | |
Acquisition of vehicles and equipment | 58,645,728 | 4,171,185 |
Contingent liabilities
The group is a defendant in various labour disputes with former employees.
The cases are at various stages. The total being claimed in all these cases is ZWL 25 billion.
Subsequent events
There are no adjusting or non-adjusting events after the reporting date which have an eect on the nancial position of the group as at the reporting date nor require disclosure in the nancial statements.
Directors: P.J. Annesley (Chairman); B.N. Ndebele; H. Crabbe; M. Kalweit;
*R. Clarke (Chief Executive Officer); *J.N. Fambawaputa (Chief Financial Officer) * Executive
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Unifreight Africa Ltd. published this content on 25 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 September 2023 07:12:08 UTC.