SUMMARY AUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
MPICO PLC REG. NO 1495
SUMMARY CONSOLIDATED AND SEPARATE STATEMENTS OF PROFIT OR LOSS | SUMMARY CONSOLIDATED AND SEPARATE STATEMENTS OF CHANGES IN EQUITY | |||||||||||
AND OTHER COMPREHENSIVE INCOME | FOR THE YEAR ENDED 31 DECEMBER 2022 | |||||||||||
GROUP | COMPANY | GROUP | COMPANY | |||||||||
31-Dec-22 | 31-Dec-21 | 31-Dec-22 | 31-Dec-21 | 31-Dec-22 | 31-Dec-21 | 31-Dec-22 | 31-Dec-21 | |||||
K'000 | K'000 | K'000 | K'000 | K'000 | K'000 | K'000 | K'000 | |||||
Rental income | 6,841,041 | 6,613,794 | 2,468,693 | 2,392,500 | At the beginning of the year | 68,805,249 | 63,514,134 | 33,772,602 | 32,497,894 | |||
Increase in fair value of investment properties | 6,690,900 | 5,425,600 | 2,428,500 | 1,737,000 | ||||||||
Other income | 1,027,878 | 1,155,745 | 1,183,365 | 1,999,034 | Distributable profit for the year | 1,467,262 | 1,345,355 | 1,600,247 | 870,033 | |||
Dividend income from subsidiaries | - | - | 1,716,000 | - | Non-distributable profit for the year | 6,670,206 | 5,077,233 | 1,868,090 | 1,323,898 | |||
Total income | 14,559,819 | 13,195,139 | 7,796,558 | 6,128,534 | Dividend declared - Final 2021 | (436,631) | (855,706) | (436,631) | (643,456) | |||
Dividend declared - Interim 2022 | (905,728) | (275,767) | (321,728) | (275,767) | ||||||||
Total operating expenses and finance costs | (5,554,560) | (5,505,991) | (3,543,388) | (2,973,065) | 75,600,358 | 68,805,249 | 36,482,580 | 33,772,602 | ||||
Profit before tax | 9,005,259 | 7,689,148 | 4,253,170 | 3,155,469 | SUMMARY CONSOLIDATED AND SEPARATE STATEMENT OF CASH FLOWS | |||||||
Income tax | (867,783) | (1,266,558) | (784,832) | (961,538) | ||||||||
Profit for the year | 8,137,476 | 6,422,590 | 3,468,338 | 2,193,931 | GROUP | COMPANY | ||||||
Distributable profits | 1,089,817 | 1,140,863 | 1,600,247 | 870,033 | 31-Dec-22 | 31-Dec-21 | 31-Dec-22 | 31-Dec-21 | ||||
K'000 | K'000 | K'000 | K'000 | |||||||||
Non-distributable profits | 4,636,627 | 3,564,801 | 1,868,091 | 1,323,898 | Cash flows from operating activities | |||||||
Amount attributable to members of the parent | 5,726,444 | 4,705,664 | 3,468,338 | 2,193,931 | 4,103,207 | |||||||
Net cash generated by/(used in) operations | 3,519,871 | 1,244,935 | 1,314,853 | |||||||||
Amount attributable to non-controlling interests | 2,411,032 | 1,716,926 | - | - | ||||||||
Returns on investment and servicing of finance | ||||||||||||
8,137,476 | 6,422,590 | 3,468,338 | 2,193,931 | - | ||||||||
Dividend received | - | 1,716,000 | 557,750 | |||||||||
Issued shares | 2,298,047,460 | 2,298,047,460 | Interest received | 900,847 | 1,036,240 | 284,096 | 279,786 | |||||
Interest paid | (720,909) | (737,444) | (167,126) | (175,921) | ||||||||
Basic earnings per share (K) | 2.49 | 2.05 | ||||||||||
- Distributable (K) | 0.47 | 0.50 | Dividend paid | (758,359) | (919,223) | (758,359) | (919,223) | |||||
Dividend paid to non-controlling shareholders | (584,000) | (212,250) | - | - | ||||||||
- Unrealised (K) | 2.02 | 1.55 | ||||||||||
Net cash flow generated from returns on | 2,940,786 | |||||||||||
investment and servicing of finance | 2,687,194 | 2,319,546 | 1,057,245 | |||||||||
SUMMARY CONSOLIDATED AND SEPARATE STATEMENTS OF FINANCIAL POSITION | ||||||||||||
Taxation paid | (1,443,688) | (1,840,436) | (1,209,198) | (781,137) | ||||||||
AS AT 31 DECEMBER 2022 | ||||||||||||
Net cash generated from operating activities | 1,497,098 | 846,758 | 1,110,348 | 276,108 | ||||||||
GROUP | COMPANY | Additions to plant and equipment | (30,628) | (63,385) | (23,442) | (39,519) | ||||||
31-Dec-22 | 31-Dec-21 | 31-Dec-22 | 31-Dec-21 | |||||||||
Proceeds on disposal of equipment | 2,223 | 68,377 | 2,223 | 68,371 | ||||||||
K'000 | K'000 | K'000 | K'000 | |||||||||
Additions in capital work in progress | - | (12,651) | - | - | ||||||||
EQUITY AND LIABILITIES | ||||||||||||
Staff long-term loan granted | 13,324 | (35,252) | 13,324 | (35,248) | ||||||||
SHAREHOLDERS' EQUITY | 114,902 | Net cash used in investing activities | (15,081) | (42,911) | (7,895) | (6,396) | ||||||
Ordinary share capital | 114,902 | 114,902 | 114,902 | |||||||||
Distributable reserves | 5,906,364 | 5,574,906 | 9,699,948 | 8,858,060 | Cash flow from financing activities | |||||||
Unrealised reserves | 37,643,559 | 33,006,932 | 18,040,792 | 16,172,702 | ||||||||
Repayment of borrowings | (437,095) | (284,439) | - | - | ||||||||
Share premium | 8,626,938 | 8,626,938 | 8,626,938 | 8,626,938 | Net cash used in financing activities | (437,095) | (284,439) | - | - | |||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF | ||||||||||||
PARENT COMPANY | 52,291,763 | 47,323,678 | 36,482,580 | 33,772,602 | Net increase in cash and cash equivalents | 1,044,922 | 519,408 | 1,102,453 | 269,712 | |||
Non-controlling interests | 23,308,595 | 21,481,571 | - | - | Cash and cash equivalents at the beginning | |||||||
of the year | (665,268) | (1,184,676) | (1,027,129) | (1,296,841) | ||||||||
TOTAL EQUITY | 75,600,358 | 68,805,249 | 36,482,580 | 33,772,602 | Cash and cash equivalents at the end of the year | 379,654 | (665,268) | 75,324 | (1,027,129) | |||
LIABILITIES | BASIS OF PREPARATION | |||||||||||
Non-current liabilities | 11,159,743 | 13,801,893 | 5,751,748 | 5,238,579 | The summary consolidated and separate financial statements are prepared in order to meet the Malawi | |||||||
Current liabilities | 5,729,067 | 1,823,706 | 1,433,427 | 730,393 | ||||||||
Bank overdraft | - | 1,092,570 | - | 1,092,570 | Stock Exchange Listing Requirements for summarised financial statements. The directors have considered | |||||||
the requirements of the Malawi Stock Exchange and believe that the summary statements of financial | ||||||||||||
TOTAL LIABILITIES | 16,888,810 | 16,718,169 | 7,185,175 | 7,061,542 | position, summary statements of comprehensive income, summary statements of changes in equity | |||||||
and summary statements of cash flows are sufficient to meet the requirements of the users of the | ||||||||||||
TOTAL EQUITY AND LIABILITIES | 92,489,168 | 85,523,418 | 43,667,755 | 40,834,144 | summary consolidated and separate financial statements. The amounts in the summary consolidated | |||||||
and separate financial statements are prepared in accordance with the framework concepts and the | ||||||||||||
ASSETS | measurement and recognition requirements of International Financial Reporting Standards. The | |||||||||||
summary consolidated and separate financial statements have been derived from the Annual Consolidated | ||||||||||||
NON-CURRENT ASSETS | and Separate Financial Statements which were approved by the Board of Directors on 14 March 2023 | |||||||||||
77,786,747 | 71,095,847 | and is available on the company's website, www.mpicomw.com. | ||||||||||
Investment properties | 23,928,707 | 21,500,207 | 2022 FINANCIAL YEAR RESULTS PUBLICATION COMMENTARY | |||||||||
Other assets | 3,415,988 | 2,609,980 | 14,943,309 | 15,011,669 | ||||||||
Total non-current assets | 81,202,735 | 73,705,827 | 38,872,016 | 36,511,876 | Review of the results | |||||||
CURRENT ASSETS | The MPICO plc Board is pleased to announce the results of the Group for the year ended 31 December | |||||||||||
2022. Rental income increased by 3% to MK6.8 billion in 2022 from MK6.6 billion in 2021. The increase is | ||||||||||||
Trade and other receivables | 10,906,779 | 8,321,307 | 4,720,415 | 3,496,577 | ||||||||
mainly due to rent reviews and improved occupancy levels. Total operating expenditure for the year | ||||||||||||
Promissory notes receivable | - | 3,068,982 | - | 760,250 | marginally increased by 1% to K4.85 billion from MK4.79 billion in 2021. | |||||||
Assets held for sale | - | - | - | - | ||||||||
Cash and cash equivalents | 379,654 | 427,302 | 75,324 | 65,441 | Profit after tax increased to MK8.1 billion in 2022 from MK6.4 billion in 2021, representing a year-on-year | |||||||
Total current assets | 11,286,433 | 11,817,591 | 4,795,739 | 4,322,268 | increase of 27% due to improved total income. | |||||||
Government debt increased to MK6.0 billion as at 31 December 2022 (2021: MK4.8 billion) and continued | ||||||||||||
TOTAL ASSETS | 92,489,168 | 85,523,418 | 43,667,755 | 40,834,144 | to negatively impact on Group's operations. After the reporting date, further engagements with Government | |||||||
did yield positive results. Promissory notes amounting to MK2.9 billion were collected on 05 April 2023. | ||||||||||||
Government is processing promissory notes amounting to MK2.6 billion and has committed to release them by 31 May 2023.
Outlook*
The economy is projected to grow by 2.5% in 2023 in real terms according to the International Monetary Fund (IMF), compared to an estimated real GDP growth of 0.9% in 2022. Weather shocks such as the Tropical Cyclone Freddy combined with electricity outages and foreign currency challenges, may result in lower than projected economic growth and pressure on inflation.
The Board will continue to monitor the economic developments and take appropriate actions to preserve value for all stakeholders.
Dividend
The Company paid an interim dividend of MK321.7 million in December 2022 (2021: MK275.8 million). The
Directors are recommending a final dividend amounting to MK505.6 million (2021: MK436.6 million) making
a total dividend of MK827.3 million (2021: MK712.3 million) in respect of 2022 profits representing 36 tambala
per share (2021: 31 tambala per share). The Dividend will be paid after approval by the AGM to be held in June 2023.
By order of the Board
Edmund Hami | Edith Jiya |
DIRECTOR | CHAIRPERSON |
* Unaudited
INDEPENDENT AUDITOR'S REPORT ON THE SUMMARY CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS TO THE SHAREHOLDERS OF MPICO PLC
Opinion
The summary consolidated and separate financial statements, which comprise the summary consolidated and separate statements of financial position as at 31 December 2022, and the summary consolidated and separate statements of comprehensive income, summary consolidated and separate statements of changes in equity, and summary consolidated and separate statements of cash flows for the year then ended, and the related notes, are derived from the audited consolidated and separate financial statements of MPICO plc for the year ended 31 December 2022.
In our opinion, the accompanying summary consolidated and separate financial statements are a fair summary of the audited consolidated and separate financial statements of MPICO plc, according to the basis described on the basis of preparation paragraph.
Summary consolidated and separate financial statements
The summary consolidated and separate financial statements do not contain all the disclosures required by the International Financial Reporting Standards. Reading the summary consolidated and separate financial statements and the auditor's report thereon, therefore, is not a substitute for reading the audited consolidated and separate financial statements and the auditor's report thereon. The summary consolidated and separate financial statements and the audited consolidated and separate financial statements do not reflect the effects of events that occurred subsequent to the date of our report on the audited consolidated and separate financial statements.
The audited consolidated and separate financial statements and our report thereon
We expressed an unmodified audit opinion on the audited consolidated and separate financial statements in our report dated 5 May 2023. That report also includes the communication of key audit matters (KAM). Key audit matters are those matters that in our professional judgement, were of most significance in our audit of the consolidated and separate financial statements for the current year.
Directors Responsibility for the Summary Consolidated and Separate Financial Statements
Directors are responsible for the preparation of the summary consolidated and separate financial statements in accordance with the "basis of preparation paragraph".
Auditor's Responsibility
Our responsibility is to express an opinion on whether the summary consolidated and separate financial statements are a fair summary of the audited consolidated and separate financial statements based on our procedures, which were conducted in accordance with International Standards on Auditing (ISA)810 (Revised), Engagements to Report on Summary Financial Statements.
Chartered Accountants
Vilengo Beza
Partner
26 May 2023
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MPICO plc published this content on 29 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 May 2023 07:40:07 UTC.