Unifreight Africa : HY Results & Audit Opinion

	REVIEWED ABRIDGED
	FINANCIAL RESULTS
AFRICA LTD	for the Half Year ended 30 June 2023

www.unifreight.co.zw

Chairman's Statement: for the Half Year ended 30 June 2023.

Dear Shareholder,

Overview

The first half of 2023 has been excellent for Unifreight with overall volumes up 38% year on year. Significant contributions have come from tobacco, where we are now transporting over 40,000 tons/annum which is 91% up from last year. With the new fleet we have also been able to dedicate vehicles to blue chip customers such as Delta, Triangle, Unilever, Nestle, Cairns who all require nationwide distribution.

The Zimbabwe Dollar continued to depreciate during HY23 which, combined with the bank policy lending rate at 80%, has resulted in the banking sector loan to deposit ratio remaining low thus restricts business's ability to borrow and finance short term liquidity issues. The result of this is the retractive cash flow environment where many businesses stretch credit terms instead of utilizing overdraft facilities.

Financial Performance Summary

The Group's financial results and the commentary have been prepared on an inflation-adjusted basis as required by IAS 29 "Financial Reporting in Hyperinflationary Economies". Financial statements prepared under the historical cost convention have only been presented as supplementary information. The Directors would like to advise users to exercise caution on their use of these audited abridged consolidated financial statements, due

to the material and pervasive impact of the technical difficulties of reporting under International Accounting Standard (IAS) 29.

We are pleased to present inflation adjusted Group Revenues of ZWL 55 billion which are 115% above prior year restated Revenues of ZWL 22 billion. The Group continues to monitor costs under the current volatile environment. Tonnage grew by 50% from prior year (though 18% below budget), largely driven by tobacco volumes and increased FTL volumes from new vehicle assets.

The Group recorded a net profit before tax of ZWL $6 billion which is 30% below prior year due to increase in finance costs. Finance costs were driven by revaluation of foreign denominated loans obtained to finance new vehicles amounting to ZWL 44 billion.

Total Group Inflation Adjusted Earnings were ZWL 66 billion (Historical earnings ZWL 95 billion), largely driven by the Revaluation of assets following a change in accounting policy from cost model to revaluation model.

Our balance sheet grew from ZWL 66 billion to ZWL 269 billion due to a combination of recapitalisation of our fleet and revaluation of assets.

Dividend declaration

Given the Group's focus on improving working capital cycles as well as the need to reduce exposures to borrowings and foreign liabilities, the board has decided not to declare an interim dividend.

Outlook

The Group remains optimistic about the future and looks forward to being able to utilize our increased capacities during the traditional festive period ramp up in retail spend between October and December. We are also hopeful there will be interventions from government to curtail informal imports that have been competing with domestically produced goods so as to support local industry, and promote job creation.

Appreciation

On behalf of the Board, I wish to express my sincere gratitude and appreciation to our customers, business partners, and our valued shareholders for their confidence in us, which will be deservedly rewarded over time. I would also like to extend my gratitude to the Unifreight Board of Directors, Employees, Management, and Executive team for their passion, commitment, and dedication to achieving a high-performance culture and ensuring Unifreight continues to grow.

For and on behalf of the Board

Peter Annesley

Board Chairman

21 September 2023

Auditor's Statement

These Interim Abridged Consolidated Inflation Adjusted

Financial results for the six months ended 30 June 2023 have been reviewed by Messrs Grant Thornton Chartered Accountants (Zimbabwe) and a qualified review conclusion was issued thereon.

This review conclusion is modified with respect to non- compliance with International Accounting Standard (IAS) 21 - "The Effects of Changes in Foreign Exchange Rates".

The review conclusion has been made available to management and those charged with governance. The Independent Review Report on the Interim Abridged Consolidated Inflation Adjusted Financial Information is available for inspection at the Company's registered office.

The engagement partner on the review engagement resulting in this independent review conclusion is Farai Chibisa (PAAB Number 0547).

UNIFREIGHT AFRICA LIMITED REVIEWED ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 June 2023

ASSETS

Reviewed	Audited
June 2023	December	December
2022	2021
	*Restated	*Restated
Ination Adj	Ination Adj	Ination Adj
ZWL 000	ZWL 000	ZWL 000

Reviewed
June 2023	December	December
2022	2021
	*Restated	*Restated
Historic	Historic	Historic
ZWL 000	ZWL 000	ZWL 000

	Attributable to equity shareholders of the parent
REVIEWED ABRIDGED			Non-		Fairvalue	Equityportionof
		distributable		reserveof
CONSOLIDATED STATEMENT
				financial
OF CHANGES IN EQUITY	Share	Share		Revaluation	Shareholders	Retained
Reserves	assetsat	Total Equity
as at 30 June 2023	Capital	Premium	reserve	loans	earnings
	FVOCI
	InflationAdj	InflationAdj	InflationAdj	InflationAdj	InflationAdj	InflationAdj	InflationAdj	InflationAdj
	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000

Non current assets

Vehicles and equipment

Investment properties

Investment in equity instruments

Right of use of asset

Intangible assets

Current assets

Inventories

Income tax asset

Trade and other receivables

Cash and cash equivalents

TOTAL ASSETS

EQUITY AND LIABILITIES

226,589,018	37,647,399	32,287,681
164,212,447		11,872,620		14,525,421
45,738,500		16,304,622		12,423,180
6,663,932		1,814,766		3,415,604
9,252,737		6,933,990		1,640,278
721,402		721,401		283,198
42,698,482	28,963,711	2,271,441
4,141,311		2,177,615		816,407
-		-		1,264
33,980,315		26,143,241		1,349,484
4,576,856		642,855		104,286
269,287,500	66,611,110	34,559,122

218,696,956	8,220,539	2,287,570
164,212,447		1,481,311		168,349
45,738,500		5,219,570		1,156,915
6,663,932		580,958		810,258
2,080,577		937,200		150,548
1,500		1,500		1,500
41,743,616	6,915,918	528,836
3,186,445		500,303		183,669
-		2,697		300
33,980,315		6,207,122		320,128
4,576,856		205,796		24,739
260,440,572	15,136,457	2,816,406

Balance as at 1 January 2022

Change in accounting policy

Restated opening balance

Restated Profit for the period

Change in accounting policy

Prot for the year

Net loss on equity instruments designated at fair value through other comprehensive income

Balance as at 31 December 2022

Balance as at 1 January 2023

Loss for the period

Net gain on equity instruments designated at fair value through other comprehensive income

Other comprehensive income for the period

Balance as at 30 June 2023

512,195	990,784		17,423,352	-		3,908,540	4,295,372		5,045,347	32,175,590
-	-		-	-		-	-		424,204	424,204
512,195	990,784		17,423,352	-		3,908,540	4,295,372		5,469,551	32,599,794
-	-		-	-		-	-		11,666,685	11,666,685
-	-		-	-		-	-		1,242,564	1,242,564
-	-		-	-		-	-		10,424,121	10,424,121
-	-		-	-		(6,748,221)	-		-	(6,748,221)
512,195	990,784		17,423,352	-		(2,839,681)	4,295,372		17,136,236	37,518,258
512,195	990,784		17,423,352	-		(2,839,681)	4,295,372		17,136,236	37,518,258
-	-		-	-		-	-		(9,300,144)	(9,300,144)
-	-		-	-		4,849,166	-		-	4,849,166
-	-		-	71,363,533		-	-		-	71,363,533
512,195	990,784		17,423,352	71,363,533		2,009,485	4,295,372		7,836,092	104,430,813

Equity

Share capital

Share premium

Revaluation reserve

Non-distributable reserve

Fair value reserve for financial assets

at FVOCI

Equity component of shareholders loans

Retained earnings

104,430,813

512,195

990,784

71,363,533

17,423,352

2,009,485

4,295,372

7,836,092

37,518,258

512,195

990,784

-

17,423,352

(2,839,681)

4,295,372

17,136,236

32,599,794

512,195

990,784

-

17,423,351

3,908,540

4,295,372

5,469,552

102,321,767

1,065

2,060

108,903,948

46,356

6,541,206

8,931

(13,181,799)

6,310,987

1,065

2,060

-

46,356

247,693

8,931

6,004,882

2,345,137

1,065

2,060

-

46,356

476,994

8,931

1,809,731

REVIEWED ABRIDGED	Reviewed	Audited
CONSOLIDATED STATEMENT OF	June 2023	Dec 2022
CASH FLOWS
for the Half Year ended 30 June 2023	Ination Adj	Ination Adj
	ZWL 000	ZWL 000

Period / Month	Factor
June 2021	14.3015
December 2021	10.7382
June 2022	4.9051
December 2022	3.1237

Non current liabilities

Loans and borrowings

Lease liability

Deferred tax liabilities

79,762,091

38,413,971

1,176,597

40,171,523

15,818,876

11,502,977

2,858,867

1,457,032

1,668,000

-

649,264

1,018,736

73,071,894

38,413,971

1,176,597

33,481,326

4,626,028

3,682,428

915,204

28,396

179,941

-

154,020

25,921

Net utilised from operating activities

Cash utilised from operations

Interest paid

Taxation paid

Net cash utilised in investing activities

(19,143,825)

(19,037,780)

-

(106,045)

(56,505,465)

(17,581,444)

(15,630,620)

(1,940,256)

(10,568)

(1,889,125)

June 2023

1.0000

Accounting policies

Except for the change in the accounting policy relating to the subsequent recognition of vehicles, furniture and equipment from a cost model to a revaluation model in accordance to IAS 16: "Property, Plant and Equipment", and the policy related to the subsequent recognition of investment properties from a

cost model to a fair value model in accordance to IAS 40: "Investment Properties", the accounting policies used in preparing the abridged financial statement for the period ended 30 June 2023 are consistent with those used in preparing

Current liabilities	85,094,596		13,273,976		291,328		85,046,911		4,199,442		291,328
Trade and other payables	7,331,858	5,552,447	240,459	7,331,858	1,777,495	240,459
Income tax payable	49,933	155,978	-	2,248	-	-

Purchase of vehicles and equipment to increase operations

Proceeds from sale of property, vehicles and equipment

(58,645,728)

2,140,263

(4,171,185)

2,243,354

the group financial statements of the year ended 31 December 2022 and are in

accordance with International Financial Reporting Standards (IFRF) as issued by the International Accounting Standards Board (IASB).

Lease liability	934,290	165,336	7,013	934,290	52,929	7,013
Loans and borrowings	76,778,515	7,400,215	43,856	76,778,515	2,369,018	43,856

TOTAL EQUITY AND LIABILITIES	269,287,500	66,611,110	34,559,122	260,440,572	15,136,457	2,816,406
				Reviewed	Reviewed	Reviewed	Reviewed
REVIEWED ABRIDGED CONSOLIDATED			June 2023	June 2022	June 2023	June 2022
STATEMENT OF PROFIT OR LOSS AND OTHER				*Restated		*Restated

Dividend received

Net cash generated from financing

activities

Proceeds from borrowings

Principal payment of lease liabilities

Repayments of borrowings

-

93,800,332

100,760,432

(348,698)

(6,611,402)

38,706

19,280,089

21,522,968

(107,229)

(2,135,650)

Trade and other receivables

Current

Trade receivables

Receiveables due from related parties Less: provision for impairment Trade receivables - net

June 2023

Dec 2022

ZWL 000ZWL 000

33,862,738 6,844,791

42,024-

(1,346,527)(797,718)

32,558,235 6,047,073

COMPREHENSIVE INCOME	Ination Adj	Ination Adj	Historic	Historic
for the Half Year ended 30 June 2023
	ZWL 000	ZWL 000	ZWL 000	ZWL 000
Revenue	55,663,427	22,174,594	31,498,560	3,114,737
Operating costs	(39,827,219)	(20,823,289)	(22,136,812)	(2,771,490)
Other operating income	33,576,688	2,530,426	41,885,895	2,224,282
Earnings before interest, tax, depreciation and amortisation	49,412,896	3,881,731	51,247,643	2,567,529
(EBITDA)
Finance costs	(46,070,142)	(562,197)	(59,548,039)	(78,689)
Depreciation	(2,418,266)	(1,395,675)	(782,890)	(27,358)
Monetary gain	5,082,240	6,668,639	-	-

Increase /(decrease) in cash and cash	18,151,042		(190,480)
equivalents
Cash and cash equivalents at beginning of	642,855		265,650
the period
Net foreign exchange dierences	2,019,171		49,187
Eects of ination	(16,236,212)		518,498
Cash and cash equivalents as at
4,576,856		642,855
period end

Prepayments

Sta debtors

Other debtors

Total trade and other receivables

Trade and other payables

Current

455 19,039,432

5,38928,798

1,416,236 1,027,938

33,980,315 26,143,241

June 2023

Dec 2022

ZWL 000ZWL 000

Profit before taxation	6,006,728	8,592,498	(9,083,286)		2,461,482
Income tax expense	(15,306,872)	(805,600)	(10,103,394)		(80,490)
(Loss)/profit for the period	(9,300,144)	7,786,898	(19,186,680)		2,380,992
Other comprehensive income
Other comprehensive income to be reclassified to profit or loss in
subsequent periods:
Net gain/(loss) on equity instruments designated at fair value through	4,849,166	(5,076,907)	6,082,974		(90,752)
other comprehensive income
Revaluation gain	94,797,467	-	132,337,882		-
Deferred tax through other comprehensive income	(23,433,934)	-	(23,433,934)		-
Other comprehensive income /(loss) for the period, net of tax	76,212,699	(5,076,907)	114,986,922		(90,752)
Total comprehensive income for the period, net of tax	66,912,555	2,709,991	95,800,242		2,290,240
Earnings per share
Basic earnings for the year attributable to ordinary equity holders of the	60,315	2,545	89,976		2,151
parent (cents)
Diluted earnings for the year attributable to ordinary equity holders of	60,315	2,545	89,976		2,151
the parent (cents)
Headline earnings /(loss) for the year attributable to ordinary equity	1,702	(4,511)	4,631.8		(78)
holders of the parent (cents)

NOTES TO THE ABRIDGED REVIEWED CONSOLIDATED FINANCIAL STATEMENTS

for the period ended 30 June 2023

General Information

Unifreight Africa Limited (formerly Pioneer Corporation Africa Limited) was incorporated in Zimbabwe in 1970. It is the holding company of a Group of companies primarily involved in the road transport industry whose main activities include intercity freight consolidations, the distribution of general goods, and a courier service.

Other entities in the Group are incorporated in Botswana. The company is listed on the Zimbabwe Stock Exchange. These abridged consolidated financial statements are

presented in Zimbabwe Dollars and were authorised for issue by the Board of Directors on 15 September 2023.

Basis of preparation

The abridged nancial statements of the Group have been prepared in accordance with IAS34 - interim financial reporting as issued by the international Accounting Standards Board

(IASB). In the current reporting period, management decided to change the accounting policy relating to the subsequent recognition of vehicles, furniture and equipment from a cost model to a revaluation model in accordance to IAS 16: "Property, Plant and Equipment", and the policy related to the subsequent recognition of investment properties from a cost model to a fair value model in accordance to IAS 40: "Investment Properties". Both these changes in policies were done in accordance to IAS 8 : "changes

in accounting policies, accounting for changes in estimates and errors". Prior year figures were restated in accordance with IAS 40. All other accounting policies are applied consistently throughout the Group. The abridged financial statements are

presented in Zimbabwe dollars (ZWL) and all values are rounded to the nearest 1 000 dollars except where otherwise stated.

The abridged financial statements are initially prepared under the historical cost convention and restated for the changes in the general purchasing power of the

functional currency for the purposes of fair presentation in accordance with IAS 29

(Financial Reporting in Hyperinflationary Economies). This historical cost information has been restated for changes in the general purchasing power of the Zimbabwe

dollar and as a result are stated in terms of the measuring unit current at the end of the reporting period. Accordingly, the inflation adjusted abridged financial statements represent the primary financial statements of the Group, the Historical Consolidated Statement of profit or Loss and other comprehensive income and Consolidated Statement of financial position has been included only as supplementary information.

Inflation adjustment

The Public Accountants and Auditors Board (PAAB) in their circular 01/19 communicated that the factors and characteristics to apply IAS 29, Financial Reporting in Hyper-

Inflationary Economies had been met in Zimbabwe. The pronouncement require that entities reporting in Zimbabwe apply the requirements of IAS 29 with effect from 1 July

2019.

IAS 29 requires that the financial statements prepared in the currency of a hyperinflationary economy be stated in terms of the measuring unit current at the balance sheet date and the corresponding figures for the previous period be stated in

the same terms. The restatement has been calculated by means of conversion factors derived from the consumer price index. The Group used the inflation adjustment

factors derived from the Total Consumption Poverty Line (TCTL) as published by the Zimbabwe National Statistics Agency (ZIMSTATS). The following factors were applied:

Trade payables	2,761,803	3,581,955
Trade payables due to related parties	18,981	592,447
Accrued expenses	525,547	795,091
Social security and other statutory	4,025,527	582,954
liabilities
	7,331,858	5,552,447

Borrowings

Borrowings represent facilities for capital expenditure and working capital. The interest rates for USD accounts attract an interest is between 12.15% to 13% and for ZWL Loans the interest rates are from 89%.

	Jun 2023	Dec 2022
	ZWL 000	ZWL 000
Shareholder loans	4,295,372	4,295,372
Equity component of shareholders	(4,295,372)	(4,295,372)
loans
Loans and borrowings	115,192,486	18,903,192
	115,192,486	18,903,192
Finance cost
Finance cost comprises the following:
	Jun 2023	Jun 2022
	ZWL 000	ZWL 000
Bank borrowings	1,641,424	-
Foreign exchange losses from revaluation of	44,167,170	-
foreign denominated loans
Leases liabilities	261,548	63,388
	46,070,142	63,388
Capital expenditure
	Jun 2023	Dec 2022
	ZWL 000	ZWL 000
Acquisition of vehicles and equipment	58,645,728	4,171,185

Contingent liabilities

The group is a defendant in various labour disputes with former employees.

The cases are at various stages. The total being claimed in all these cases is ZWL 25 billion.

Subsequent events

There are no adjusting or non-adjusting events after the reporting date which have an eect on the nancial position of the group as at the reporting date nor require disclosure in the nancial statements.

Directors: P.J. Annesley (Chairman); B.N. Ndebele; H. Crabbe; M. Kalweit;

*R. Clarke (Chief Executive Officer); *J.N. Fambawaputa (Chief Financial Officer) * Executive