Page 1

ZIMPLOW LIMITED

Financial results

for the half year ended 30 June 2011 1


Introduction I t d ti The team today comprises of:‐ y p Z. Kumwenda (CEO) F. Rwakonda    (CFO) G. Westland (GM Tassburg). The key executives not present are: M  D Mk Mrs. D Mkonto (Comp Sec & CD)  (C  S  & CD) Mr. B Mitchell(MD Fasteners)

2


MISSION AND VISION MISSION

“To avail quality affordable and reliable steel products on time every time to the mining, construction and manufacturing sectors”

farming,

Vision:   “To be a market leader in the Design, Sourcing and Distribution of at least one of our products in 18 countries south of the Sahara by 2020” 3


ZIMPLOW VALUES 1. Integrity  Integrity ‐ Being absolutely truthful and  2. 3. 4. 55.

accepting responsibility for our actions Quality – Q y Excellence in everything we do. y g Teamwork – Leverage on each other’s strength Dependability ‐ Our stakeholders, must be  Dependability  able to count on us. Fun‐ Enjoy every moment. j y y 4


GENERAL BACKGROUND The group comprises of 3 divisions: Mealie Brand, CT Bolts and Tassburg 1.

2.

3. 4.

Mealie Brand is the largest of the 3 divisions and is involved in the  supply of animal drawn implements and hoes. The factory is based  i  B l in Bulawayo. CT Bolts is a distributor of mild steel bolts and nuts, nails and a  wide range of other fasteners. The division also manufactures  specialised fasteners at its Bulawayo factory. i li d f t   t it  B l  f t Tassburg is a supplier of Wood screws, Veranda Bolts and High  tensile bolts. The factory is based in Harare. The 3 divisions employ 420 employees. h d l l 5


MEALIE�BRAND OPERATIONS y Total Implements sales in units up by 27% from y y y

y

June last year, year driven by the local Market. Market Local implements sales in units up by 81%, at the back of better than expected cotton prices. Exports decreased by 35% from prior year. Drought in East Africa, delayed seasonal take-off and cheap competing products from the far east were major factors affecting exports. Spares were down by 16% while production through the factory is also down by 15% due to a decline in exports and spare sales. 6


MEALIE‐BRAND OPERATIONS CONTINUED June 2011

% Change

June 2010

June 2009

% Change

Local(units)

18 183

81%

10 027

7 018

43%

Export(units)

5 731

-35%

8 789

7 171

23%

Sub-Total

23 914

27%

18 816

14 189

33%

Total Spares

138 317

-16%

165 466

100 864

64%

Production(kgs)

1 411 072 -15%

SALES AND PRODUCTION Implements

1 655 394 1 043 513

59% 7


CT BOLTS OPERATIONS y Mild St Steell b bolts lt and d nails il iin K Kgs, up b by 85% y Other Fasteners in units up by 49%. y Deliberately reduced prices by an effective 6%.

AUP(Average unit Price) for Mild Steel fasteners per kg moved from USD3.95 down to USD3.73 per kg to drive volumes and market share. y Soon the fastener divisions will be merged.

8


CT BOLTS OPERATIONS CONTINUED June 2011

June 2010

% Change

Mild ild Steell Bolts l (Kgs) ( )

5 975 58 75

31 015 5

90%

Nails (Kgs)

14 074

8 521

65%

Total (Kgs)

73 049

39 536

85%

Mild Steel (Units)

2 321 428

1 225 701

89%

HT Bolts

1 571 142

479 291

228%

Screws

8 869 334

6 637 419

34%

Miscellaneous

579 755

426 324

36%

F Factory S Stock k

220 669

324 315

-32% 32%

Total (Units)

13 562 328

9 093 050

49% 9


TASSBURG OPERATIONS y Sales volumes up 38% from prior year  to 51 tonnes l l %f y Production was affected by delays in Steel deliveries from 

RSA due to a breakdown  at  Mittal Steel in RSA RSA due to a breakdown  at  Mittal Steel in RSA. y Capacity utilisation has averaged 20% . y The division is  regaining market share from imports. g g p y Employee numbers are 30 compared to 29 last year.

10


TASSBURG OPERATIONS CONTINUED June 2011

June 2010 % Change

Rivets(kgs)

1 043

965

8%

Screws(kgs)

41 659

29 828

40%

Verandah Bolts(kgs)

8 664

6 362

36%

Total KGs

51 366

37 155

38%

11


MAJOR COST MOVERS y Steel prices increased by an average of 20%. Heavy snow y y y y y

storm in the US and Europe caused shortages of scrap, scrap Floods in October�November impacted the coal prices leading g to a spike p in the steel p prices. We expect the steel prices to settle as and when the coal or iron ore prices correct themselves. E l Employment costs driven di mainly i l by b a 5% % increase i f the for h first quarter but unions are pushing for a further 15%. RSA strikes causing more uncertainty. Fuel prices up 17% from January 2011 and so are haulage 12 costs.


ZIMPLOW LIMITED

FINANCIAL RESULTS 13


STATEMENT OF COMPREHENSIVE INCOME 30 June 2011 Revenue 4 969 514 4 9 95 4 Domestic 4 139 539 Export 829 975 PBIT 677 095 Net Interest income 141 890 PBT 8 8  8 818 985 Taxation (191 091) Attributable Income 627 984

30 June 2010 33 477 902 477 9 2 628 998 848 904 369 216 54 233 423 449   (110 985) 312 464

Change 43% 43 57% ‐2% 83% 162% 93% % 72% 101% 14


3 J STATEMENT OF FINANCIAL  POSITION  AS AT 30 JUNE 2011 30 JUNE 2011

31 DECEMBER 2010

NON CURRENT ASSETS

2 815 362

2 845 090

CURRENT ASSETS

10 525 498

10 648 562

TOTAL ASSETS

13 340 860

13 493 652

SHAREHOLDERS’ FUNDS

11 286 811

11 342 051

600 550

599 833

CURRENT LIABILITIES

1 453 499

1 551 768

TOTAL EQUITY AND LIABILITIES

13 340 860

13 493 652

NON CURRENT LIABILITIES

15


STATEMENT OF CASH FLOWS 30 JUNE 2011

30 JUNE 2010

OPERATING INCOME BEFORE WORKING CAPITAL CHANGES

823 246

487 946

WORKING CAPITAL MOVEMENT

(887 813)

(617 424)

NET CASH FLOW FROM OPERATING ACTIVITIES

(406 867)

(358 159)

FINANCING AND INVESTING ACTIVITIES

(798 900)

(110 914)

NET CASH FLOWS

1 827 821

662 290 16


Looking Ahead Looking Ahead Business environment y Export demand expected to improve. July exports are 

already up by 56% over last year. y Increased production to meet higher demand  y Negative impact of high wage demands

Earnings y We expect growth which will be ahead of our initial   

f forecast of 10%. t  f  % 17


ZIMPLOW LIMITED

THANK YOU AND GOD BLESS Zimplow Limited 39 Steelworks Rd Steeldale Bulawayo Zimbabwe www.zimplow.co.zw i l

18


yQUESTIONS?

19

Zimplow Analyst Brief Half Year End June 2011  

Financial results for the half year ended 30 June 2011

Read more
Read more
Similar to
Popular now
Just for you