ZCCM Invs.Hldgs PLC
28 September 2007
DIRECTORS' HALF YEARLY SUMMARY
FOR THE PERIOD ENDED 30 JUNE 2007
Please find attached herewith the Directors' Half Yearly Summary for the
period ended 30 June 2007.
ZCCM INVESTMENTS HOLDINGS PLC
Directors' Half Yearly Summary
for Period Ended 30 June 2007
DIRECTORS
Mr A J Lungu (Non-Executive)
Chairman of the Board
Mr C Evans Chibiliti
Director
Mr L Nkhata
Director
Dr B Nsemukila
Director
Dr D H Kalyalya
Director
Mrs L I Ng'andwe
Director
Mr 0 B Munyenyembe
Director
Management Committee
Chief Executive Officer Chairman
Mr J M Chikolwa
Company Secretary
Mr W S Musama
Technical Manager
Mr J M D Patterson
Legal Investments Manager
Mr J K Kaite
Environmental Manager
Mr J Makumba
Acting Finance Manager
Mr P Mapani
Acting Investments Manager
Mr K K Mulaisho
Technical Officer
Mr W K Katoto
Corporate Officer
Mr C Chabala Committee Secretary
ZCCM INVESTMENTS HOLDINGS Plc
And its subsidiary companies
DIRECTORS' HALF YEARLY SUMMARY
The accompanying unaudited consolidated interim financial statements are for the
six months to 30 June 2007.
ZCCM - IH Group (Group) turnover during the six months to 30 June 2007 was more
than double that of the six month period to 30 June 2006. The recorded
operational expenditure was K66,748 million for the half year ended 30 June 2007
compared to K48,372 million for the corresponding period to 30 June 2006.
The results for the period are further analysed as follows:-
The increase in Group turnover to K100,143 million for the period to 30 June
2007 from K41,637 million for the corresponding period in the previous financial
year, was mainly as a result of dividend receivable of K18,707 million (K2,998
million for the six months to June 2006), metal price participation income of
K18,695 million (K2,318 million for the six months to 30 June 2006). The
turnover of Ndola Lime Company Limited (NLC) increased substantially from
K36,559 million for the period to 30 June 2006 to K59,745 million for the period
to 30 June 2007. The increase was mainly due to an increase in the selling price
of lime.
The dividends declared to the Group for the period to 30 June 2007 were
significantly higher than the corresponding period to 30 June 2006. In some
cases, the Group received a dividend from investments that had not previously
declared a dividend. Similarly, a higher price participation income was received
largely due to the increase in the copper price and production levels achieved
by the associate companies in which the Group is invested.
The above activities led to the Group recording an operating profit of K33,395
million for period under review compared to a loss of K6,735 million for the
period to June 2007.
A retained profit of K126,081 million was recorded by the Group during the
period under review, against a loss of K57,191 million for the period to 30 June
2006. This profit was mainly on account of translation gains on foreign
denominated liabilities.
The Group expended considerable amount of resources towards the legacy
environmental obligations such as the resettlement programme in Kitwe, the
dredging of the Luanshya river and a water reticulation project for the Kabwe
residents.
During the period Mr G K Chibuye, Chairman of the Board, retired on 20 April
2007 and Mr A J Lungu was appointed in his stead.
The Group intends to significantly improve its investment portfolio. The
principle aim will be to maximise the return to the shareholders as well as
mitigate its exposure in the copper industry
By Order of the Board
W S Musama
Company Secretary
Lusaka
26 September 2007
ZCCM INVESTMENTS HOLDINGS PLC
GROUP PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 30 JUNE 2007
SIX MONTHS ENDED SIX MONTHS ENDED
30 June 2007 30 June 2006
Consolidated Consolidated
notes K' million K'million
Turnover 1 100,143 41,637
Cost of turnover 2 (66,458) (48,372)
Operating profit/(loss) 33,685 (6,735)
Exchange gain/loss 108,711 (42,157)
Environmental expenses (8,625) (6,907)
Interest charge (1,911) (1,811)
Interest Income 1,478 2,691
Royalty on Minerals (1,189) (735)
Profit (loss) before taxation 132,149 (55,654)
Income tax (6,068) (1,537)
Retained profit/loss 126,081 (57,191)
Notes:
1 & 2 Represents Revenue/Sales and administrative costs/cost of sales
for the Company and its subsidiary
3 The exchange rates applied are:
30 June 2007 US$ = K3,779
30 June 2005 US$ = K3,582
30 December 2006 US$ = K4,415
30 December 2005 US$ = K3,538
ZCCM INVESTMENTS HOLDINGS PLC
GROUP BALANCE SHEET As at 30 June 2007 As at 30 June 2006
K'million K'million
Current assets
Bank & cash 43,813 83,287
Inventories 33,428 34,552
Other debtors 357,260 305,132
Total current assets 434,501 422,971
Current liabilities
Creditors (52,808) (48,158)
Provisions (246,913) (309,931)
Taxation (2,586) (2,529)
Bank overdraft (3,252) (4,426)
Total current liabilities (305,559) (365,044)
Net Current Assets 128,942 57,927
Long term receivables 0 16,430
Investments 511,153 472,416
Fixed assets 15,918 13,246
Long term borrowings (1,132,027) (977,658)
Subordinated loan (865,445) (865,445)
Total Net Liabilities (1,341,459) (1,283,082)
Financed by:
Share capital 893 893
Grant reserves 11,975 3,038
Reserves (1,354,327) (1,287,013)
Total shareholders' funds (1,341,459) (1,283,082)
ZCCM INVESTMENTS HOLDINGS PLC
GROUP CASH FLOW STATEMENT
SIX MONTHS ENDED SIX MONTHS ENDED
30 June 2007 30 June 2006
K'million K'million
Operating activities
Cash received from customers 50,634 24,472
Net cash generated from operating activities (24,210) (12,649)
26,424 11,823
Interest received and other operating income 1,478 5,009
Interest paid (1,911) (785)
Taxation paid (3,968) (1,829)
Net cashflow from operating activities 22,023 14,218
Investing activities
Purchase of Investments and fixed assets (12,959) (54,716)
Proceeds from sale of fixed assets 0 256
Proceeds from sale of operating units 10 446
(12,949) (54,014)
Financing activities
Long term borrowings received 4,103 4,512
Long term borrowings paid (507) (547)
Short term borrowings received 0 48,000
Short term borrowings paid (64,675) (973)
Grants 1,895 924
Net cashflow from Investing activities (59,184) 51,916
Dividend received 17,051 484
(42,133) 52,380
Net cash inflow/(outflow) for period (33,059) 12,584
Cash balances at start of period
Cash and bank balances 74,636 66,278
Bank Overdrafts (1,016) -
73,620 66,278
Cash balances at end of period
Cash and bank balances 43,813 83,287
Bank Overdrafts (3,252) (4,426)
40,561 78,861
CORPORATE LOCATIONS
Registered Office UK Registrars
Mukuba Pension House CAPITA IRG Plc
First Floor Bourne House
5309 Dedan Kimathi Road 34 Beckenham Road
P0 Box 30048 Beckenham
LUSAKA Kent BR3 4TU
Lusaka, 10101, Zambia England
Tel Numbers 260(01)221023 Tel No 020 8639 2000
220351 Fax No 020 8658 3430
220654
223833 Depository for American Shares
Fax Numbers 260(01)221057 JP Morgan Chase & Co
220449 60 Wall Street
220727 New York NY 10260-0060
United States of America
E-mail:corporate@zccm-ih.com.zm Tel No 001212 648 3207
Kitwe Office Fax No 001212 648 5104/5
Investments House
Kantanta Street
PO Box 20172
Kitwe
Tel Numbers 260 (02) 245018
245054
245142
245126
245320
Fax Numbers 260 (02) 222638
222639
222640
E-mail:corporate@zccm-ih.com.zm
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