Cambria Africa PLC (AIM: CMB) ('Cambria' or the 'Company') announces its audited results for FY 2020.
Audited Financial Statements are available on the Company's website (www.cambriaafrica.com) and will be sent to shareholders tomorrow.
As a result of the publication of the Audited Financial Statements the Company's ordinary shares will be restored to trading on AIM at 7.30 a.m. on 17 June 2021.
A Loss Attributable to Cambria Shareholders of $408,000 (0.07 US cents per share) was recorded for FY 2020. The Company's subsidiaries in Zimbabwe continued to operate above breakeven in both EBITDA and accounting profit despite the significant shrinkage in its revenue footprint by 74% from US $4.99 million in 2019 to US $1.32 million 2020. The Company's subsidiaries are expected to continue reporting at breakeven levels in FY 2021. The bulk of the Company's FY 2020 consolidated losses stem from Central Costs of USD $224,000 (4% above 2019 levels), the impact of foreign currency translation losses on monetary assets, and a drop in the value of marketable securities.
Net Equity (NAV) fell by 13% from US $7.39 million in FY 2019 to $6.4 million FY 2020 (1.18 US cents per share). The bulk of this loss was attributable to foreign currency translation losses of $511,000, and impairment to the carrying value of Radar Holdings Limited and Old Mutual Limited shares.
Group Highlights
Net Equity (NAV) decreased by 13% from US $7.39 million (1.36 US cents per share) to US $6.4 million (1.18 US cents per share).
Group Finance costs rose by 17.6% to $60,000 in FY 2020 from $51,000 in FY 2019 after falling 80% from $252,000 in FY 2018. Finance costs are expected to decrease significantly in FY 2021 following the reduction of loans outstanding by over $400,000 after the end of the reporting period.
Revenues declined by 74% to $1.32 million while operating costs declined by 61% to $845,000. As a result of careful cost management, the Company has managed to avoid significant losses from the shrinkage of its revenue as a consequence of COVID and its inability to regain traction for its bulk payment and clearing software for banks.
Cambria's Attributable PAT (Profit After Tax) turned negative at $408,000 (0.07 cents per share) as operations edged towards breakeven and Central Costs associated with its listing and interest expense rose marginally by 4% from $216,000 to $224,000. The balance of the loss was associated with hyperinflationary adjustments, and foreign currency translation, the loss of value in marketable securities (Old Mutual Limited) and a fair value adjustment to our investment in Radar Holdings Limited.
Consolidated EBITDA before fair value adjustments to investments and marketable securities remained in positive territory at $160,000 but declined by 92% from $2.05 million in FY 2019.
Cambria's central costs increased by $8,000 to $224,000 in FY 2020. Cambria's CEO and Directors rendered services to Cambria without compensation during FY 2020.
The Statement of Comprehensive Income includes a foreign currency translation adjustment (loss) of $511,000 attributable to Cambria.
Divisional Highlights
Payserv Africa's subsidiary, Paynet Zimbabwe, attempted to recover from its dispute with Zimbabwe banks by providing services to EcoCash. Paynet withdrew its services to EcoCash when it became apparent that transaction charges had diminished to an uneconomic level. Subsequent and unrelated to Paynet's withdrawal, EcoCash and other mobile payment operators were barred by the authorities from participation in bulk payments.
Tradanet (Pvt) Ltd, Paynet Zimbabwe's 51% held subsidiary, continued to provide loan management services to CABS, the country's largest building society. Due to the devaluation of the country's currency from ZWL10.71/USD on 31 August 2019 to ZWL 83.4/USD on 31 August 2020, the salary-based loans and the income from loans, revenues and profits while above breakeven, fell to negligible values in US dollar terms.
Autopay, Paynet Zimbabwe's payroll processing division, while mending fences with one of its primary suppliers Paywell South Africa, and maintaining profitability, saw a significant shrinkage in its revenue base during the COVID pandemic and lost customers to former employees who had been granted Paywell licensing rights. Subsequent to the end of the Fiscal Year, Autopay has hired a new management team with extensive payroll experience and established an independent contract relationship with payroll managers on a pure profit share basis.
Millchem exited the industrial chemical sector and focused on the sanitizer sector. While its anticipated penetration in this market through a joint venture with Merken was not as lucrative as hoped, the new focus remains marginally profitable.
Net Equity (Net Asset Value)
Given the lag between the publication of these results as a result of the impact of COVID and the continued and significant shrinkage of the Company's subsidiary operations, the balance of the RNS will focus on discussing prospects for its subsidiaries in FY 2021 and changes in the Company's NAV since FY 2019 and the expected impact on NAV into FY 2021.
Contact:
Samir Shasha
Tel: +44 (0)20 3287 8814
Web: www.cambriaafrica.com
CAMBRIA AFRICA PLC 
