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ZIMPLOW LIMITED The Directors of Zimplow Limited are pleased to announce the Company’s audited results for the financial year ended 31 December 2010 Statement of Cash Flows

Statement of Comprehensive Income

CASH FLOWS FROM OPERATING ACTIVITIES Net operating income before dividend, interest and taxation

Year Ended Year Ended 31 Dec 2010 31 Dec 2009 US$ US$

TURNOVER

12 298 300

9 061 718

Domestic

8 635 365

5 631 169

Export

3 662 935

3 430 549

PROFIT BEFORE INTEREST AND TAXATION

2 776 062

2 791 066

Finance income

161 049

57 362

Finance costs

(14 858)

(29 175)

Net finance Income

146 191

28 187

PROFIT BEFORE TAXATION

2 922 253

2 819 253

Income tax expense

(580 252)

(597 300)

PROFIT AFTER TAXATION FOR THE YEAR

2 342 001

2 221 953

Year Ended Year Ended 31 Dec 2010 31 Dec 2009 US$ US$

2 776 062

2 791 066

Non cash items: Depreciation of property, plant and equipment

271 230

224 352

(Profit)/Loss on disposal of property,plant and equipment

(40 594)

2 173

-

167

Impairment loss Operating cash flow before working capital changes

- 3 006 698

4 435 3 022 193

Working capital changes Cash generated from operations

(468 961) 2 537 737

(1 118 547) 1 903 646

Taxation paid

(463 349)

(342 455)

146 191

28 187

(Profit)/Loss on disposal of shares

OTHER COMPREHENSIVE INCOME

Net finance income

Net fair value gain on available for sale financial assets

Notes to the Consolidated Financial Statements

For the year ended 31 December 2010

For the year ended 31 December 2010

124

119 526

Net cash generated from operating activities

2 220 579

1 589 378

comprehensive income for the year

(19)

(17 929)

Other comprehensive income for the year

105

101 597

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment Proceeds on diposal of property,plant and equipment

(282 984) 56 042

(343 072) 23 538

2 342 106

2 323 550

0.01

0.01

Income tax relating to components of other

TOTAL COMPREHENSIVE INCOME FOR THE YEAR Basic and Diluted earnings per share (US$)

Proceeds on disposal of shares

Year Ended Year Ended 31 Dec 2010 31 Dec 2009 US$ US$ 2 667 362

2 668 756

177 728

177 604

2 845 090

2 846 360

Current assets Inventories

5 372 463

5 829 151

Trade and other receivables

2 242 511

1 163 878

Available for sale financial assets

(226 942)

(318 560)

-

(392 486)

Increase in cash & cash equivalents

1 993 637

878 332

CASH AND CASH EQUIVALENTS AT 1/01/09

1 039 951

161 619

CASH AND CASH EQUIVALENTS AT 31/12/10

3 033 588

1 039 951

0.01

0.01

CASH FLOWS FROM FINANCING ACTIVITIES Dividend paid to equity shareholders

As at 31 December 2010

Non current assets Property, plant and equipment

974

Net cash invested

Consolidated Statement of Financial Position

-

Operating cash flow per share

Supplementary Information SHARE DATA

Other current assets

-

91 412

3 033 588

1 039 951

10 648 562

8 124 392

TOTAL ASSETS

13 493 652

10 970 752

Cash and bank balances

Shares in issue

327 071 924 327 071 924

Basic earnings per share(US$) The calculation of basic earnings per share is based on earnings of: And weighted average number of shares of:

0.01

0.01

2 342 001

2 221 953

327 071 924 327 071 924

EQUITY AND LIABILITIES Shareholders’ funds 11 342 051 8 997 645

COMMITMENTS FOR CAPITAL EXPENDITURE Authorised and contracted for

52 200

109 881

Non current liabilities Deferred tax

599 833

618 860

Current liabilities Trade and other payables Provisions

Authorised and not yet contracted for

808 499 860 699

965 718 1 075 599

804 488 378 421

980 708 140 627

TAXATION Normal Tax

599 297

571 398

Current tax liabilities

368 859

232 912

1 551 768

1 354 247

13 493 652

10 970 752

Deferred income tax axation charge for the period T Revaluation of available for sale financial assets

(19 045) 580 252 19

25 902 597 300 17 929

580 271

615 229

TOTAL EQUITY AND LIABILITIES

Statement of Changes in Equity for the year ended 31 December 2010 Share Capital

Capital reserves US$

Available for Sale reserve US$

Retained earnings US$

Total

7 066 581

US$

BALANCE AT 1 JANUARY 2009

Payment of dividend

(392 486)

(392 486)

Profit for the year

2 221 953

2 221 953

Other Comprehensive income for the year

101 597

101 597

BALANCE AT 31 DECEMBER 2009

7 066 581

Financial Highlights

7 066 581

101 597

1 829 467

8 997 645

32 707

(32 707)

Adjustment

2 300

2 300

Profit for the year

2 342 001

2 342 001

Other Comprehensive income for the year

105

105

32 707

7 036 174

101 702

4 171 468

11 342 051

Redenomination of Share Capital

BALANCE AT 31 DECEMBER 2010

Turnover

$12 298 300

PBT PBT to Turnover

$2 922 253 24%

Sales Mix Domestic

70%

Export

30%

Mealie Brand Sales Volume up by

16%

Export volumes up by

18%

Net asset value per share $0.04 Operating cashflow per share Current ratio

$0.01 7:1

For the year ended 31 December 2010

1. Presentation And Statement Of Compliance 1.1 Basis of Preparation The financial statements have been presented on the historical cost basis except for property, plant, equipment and financial instruments that are measured at revalued amounts or fair values. Historical cost is generally based on the fair value of the consideration given in exchange for assets. 1.3 Statement of Compliance The financial statements have been prepared in accordance with International Reporting Standards. 2. Accounting Policies Accounting policies have been applied consistently, in all material respects, with those applied by the company in the past. 3. Re-Denomination Of Share Capital At an extra ordinary general meeting held on 21 April 2010 shareholders by special resolution approved the re-denomination of share capital from 500 000 000 ordinary shares of Z$0.00005 nominal value each to 500 000 000 ordinary shares of US$0.0001 each. US$32 707 was transfered from capital reserves of the company to the issued share capital to fund the re-denomination.

Operational Commentary and Analysis Chairman’s Review Introduction It is with both satisfaction and relief that I am able to review the company’s performance for the year just ended. Satisfaction that the after-tax profit is not that far removed from last year’s exceptional performance and relief that the business managed to overcome the much anticipated downturn expected in 2010. Admittedly, substantial price increases in steel and coal coupled with the depreciation of the United States Dollar and increase in labour costs have mitigated against the ability of the company to maintain the margins achieved in 2009. As reported in our interim results, margins are aligning themselves to international levels. The company managed to compensate decreasing margins with stronger volumes. Operations Mealie Brand implement volumes were up 16% over last year, an achievement that is commendable considering that it is starting from a higher base achieved in 2009. Local volumes were up 14% and exports increased by 18%. The proportion of implements exported was 50.3%. Volume throughput increased by 16% to 3 263 tonnes this year. C.T. Bolts key volumes increased by 108% from prior year. Tassburg volumes were 128% higher than last year. Financial Review Company revenue of USD12.3 million is 36% ahead of last year. Domestic revenue increased by 53% while exports increased by 6,8% from prior year figures. All divisions recorded increases in revenue. C.T. Bolts and Mealie Brand recorded improved profitability while Tassburg recorded a loss mainly attributable to stock write downs of US$91 489. It is pleasing to note that all operating

divisions generated positive cash from operations. Total net cash increase for the year was US$1.9 million. Prospects While the 2010 results reflected costs and margins realignment, there remains room to improve profitability within the Company. We expect growth in revenue in 2011 at the back of improved market share for both the fastener and agricultural divisions. It would appear that the region will experience normal to above normal rainfall and this should provide the company with good export volumes. The Company’s financial position is supportive of strategic acquisitions and these will be pursued by the board in 2011. Acknowledgments I would like to thank my codirectors who have continued to offer sound advice and direction to the Company’s affairs, their contribution is much appreciated. Credit is also extended to all levels of management and employees for their united role in achieving these results.

Z L Rusike Chairman 23 February 2011 Dividend In line with the company’s dividend policy, a final dividend number 67 of 0,0021 cents per share (2009 0,0012 cents per share) was declared by directors on the 23rd of February 2011. The dividend is payable on the 16th of March 2011 and the share register will be closed on the 10th of March to the 11th of March 2011, both days inclusive. By order of the Board D Mkonto Company Secretary

DIRECTORS: Z.L Rusike (Chairman), P Devenish , T. Moyo, Z Kumwenda*, D Mkonto*, B Mitchell* , N Nhira , A. Kurauone, E. Mlambo (* Executive)


Zimplow Abridged Report 2010