Reviewed Abridged
Consolidated
Financial Results
for the half year ended 30 June 2022
Total Transport & Logistics Solutions
Corner Orme and Willow Road, New Adbernnie Harare P.O. Box 772 Harare, Zimbabwe, Tel: +263 8677000777, Website: www.unifreight.co.zw
Chairman's Statement
Overview
The company has had a positive start to the year, with half year volumes 19% ahead of last year and 5% ahead of Budget. The fundamentals are sound and the business is on a solid footing.
Financial performance
We are very pleased to be able to report an inflation adjusted earnings before interest tax and depreciation of ZWL396 million which is 76% above prior ZW$225 million. The Group has been monitoring costs as margins continued to be eroded and this has resulted in this healthy increase from prior year.
Cumulative Q2 Sales in real terms were on a par with last year but 10% behind budget indicating that we are losing ground on yield, however we have been able to contain costs within budget and maintain a healthy bottom line.
Our cumulative net profit as a percentage of revenue is sitting at 10.9% which is above industry average, but unfortunately below expectations.
Outlook
The Board is happy with progress achieved during the period under review, particularly the acquisition of new revenue earning equipment, and the growth in the balance sheet in real terms. We are also optimistic with regard to the positive changes in the monetary policy, with the view that if implemented correctly, it is in the favour of formal business flourishing, while the playing field is leveled to include the informal market in the economy. We are rigorously pursuing new revenue streams, whilst maintaining and strictly monitoring costs and are confident that we will end 2022 with a favourable set of results.
Dividend
The Directors did not declare an interim dividend for the half year.
Appreciation
On behalf of the Board, I would like to extend my sincere appreciation to our valued stakeholders. I am grateful to my fellow board members, management and staff for their continued commitment and dedication.
Peter Annesley
Chairman
28 September 2022
REVIEWED ABRIDGED STATEMENT OF FINANCIAL POSITION as at 30 June 2022
Reviewed | Audited | Unaudited | ||||||
June | Dec | June | Dec | |||||
2022 | 2021 | 2022 | 2021 | |||||
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | |||||
Inflation Adj | Inflation Adj | Historical | Historical | |||||
ASSETS | ||||||||
Non current assets | 5,760,766 | 7,199,798 | 1,447,995 | 1,148,848 | ||||
Property, vehicles | ||||||||
and equipment | 2,259,823 | 2,823,077 | 201,918 | 168,349 | ||||
Investment property | 1,577,140 | 1,604,022 | 18,100 | 18,193 | ||||
Investment in equity instrument | 717,654 | 1,773,797 | 717,654 | 810,258 | ||||
Right of use of asset | 1,059,081 | 851,831 | 508,823 | 150,548 | ||||
Intangible assets | 147,068 | 147,071 | 1,500 | 1,500 | ||||
Current assets | 1,527,437 | 1,179,607 | 1,514,102 | 528,836 | ||||
Inventories | 280,996 | 423,977 | 267,661 | 183,669 | ||||
Trade and other receivables | 1,216,027 | 700,816 | 1,216,027 | 320,128 | ||||
Income tax asset | - | 657 | - | 300 | ||||
Cash and cash equivalents | 30,414 | 54,157 | 30,414 | 24,739 | ||||
TOTAL ASSETS | 7,288,203 | 8,379,405 | 2,962,097 | 1,677,684 | ||||
EQUITY AND LIABILITIES | ||||||||
Equity | 5,220,685 | 6,875,413 | 1,545,817 | 1,206,415 | ||||
Share capital | 104,424 | 104,424 | 1,065 | 1,065 | ||||
Share premium | 201,984 | 201,984 | 2,060 | 2,060 | ||||
Non distributable reserve | 3,552,064 | 3,552,064 | 46,356 | 46,356 | ||||
Fair value reserve for | ||||||||
financial assets at FVOCI | (238,193) | 796,826 | 386,242 | 476,994 | ||||
Shareholders loans | 875,690 | 875,690 | 8,931 | 8,931 | ||||
Retained Earnings | 724,716 | 1,344,425 | 1,020,673 | 671,009 | ||||
Non current liabilities | 952,978 | 866,226 | 387,218 | 179,941 | ||||
Lease liability | 359,892 | 337,176 | 359,891 | 154,020 | ||||
Deferred tax liabilities | 593,086 | 529,050 | 27,327 | 25,921 | ||||
Current liabilities | 1,114,540 | 637,766 | 1,109,552 | 291,328 | ||||
Trade and other payables | 638,919 | 526,406 | 638,919 | 240,459 | ||||
Income tax payable | 77,683 | - | 72,693 | - | ||||
Lease liability | 18,645 | 15,352 | 18,647 | 7,013 | ||||
Loans and borrowings | 379,293 | 96,008 | 379,293 | 43,856 | ||||
TOTAL EQUITY AND | ||||||||
LIABILITIES | 7,288,203 | 8,379,405 | 2,962,097 | 1,677,684 | ||||
REVIEWED ABRIDGED CONSOLIDATED STATEMENT
OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME for the half year ended 30 June 2022
Reviewed | Unaudited | ||||||||
June | June | June | Dec | ||||||
2022 | 2021 | 2022 | 2021 | ||||||
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | ||||||
Inflation Adj | Inflation Adj | Historical | Historical | ||||||
Revenue | 4,520,691 | 3,484,112 | 3,114,737 | 1,120,273 | |||||
Operating costs | (4,245,203) | (3,287,954) | (2,771,490) | (1,004,388) | |||||
Movement in expected | |||||||||
credit losses | - | (150,828) | - | (51,731) | |||||
Other operating income | 120,222 | 179,714 | 192,954 | 35,619 | |||||
Earnings before interest, | |||||||||
tax, depreciation and | |||||||||
amortisation (EBITDA) | 395,710 | 225,044 | 536,201 | 99,773 | |||||
Finance costs | (114,614) | (9,194) | (78,689) | (9,553) | |||||
Depreciation | (311,874) | (416,404) | (27,358) | (8,584) | |||||
Loss on net monetary position | (424,695) | (1,354,751) | - | - | |||||
(Loss)/profit before taxation | (455,473) | (1,555,305) | 430,154 | 81,636 | |||||
Income tax (expense)/credit | (164,236) | 1,014,755 | (80,490) | (22,859) | |||||
(Loss)/profit for the period | (619,709) | (540,550) | 349,664 | 58,777 | |||||
Other comprehensive | |||||||||
income not to be | |||||||||
reclassified to profit | |||||||||
or loss in subsequent | |||||||||
periods: | |||||||||
Net loss on equity instruments | |||||||||
designated at fair value | |||||||||
through other comprehensive | |||||||||
income | (1,035,019) | - | (90,752) | - | |||||
Other comprehensive | |||||||||
loss for the period, net | |||||||||
of tax | (1,035,019) | - | (90,752) | - | |||||
Total comprehensive | |||||||||
loss for the period, net | |||||||||
of tax | (1,654,728) | (540,550) | 258,912 | 58,777 | |||||
Earnings per share | |||||||||
-Basic earnings for the period | |||||||||
attributable to ordinary equity | |||||||||
holders of the parent (cents) | (1,554.11) | (507.68) | 243.17 | 55.20 | |||||
-Diluted earnings for the period | |||||||||
attributable to ordinary equity | |||||||||
holders of the parent (cents) | (1,554.11) | (507.68) | 243.17 | 55.20 | |||||
REVIEWED ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the half year ended 30 June 2022
Inflation Adjusted | ||||||||||||||||||||||||||||||||||||
Share | Share | Non-distributable | Fairvalue reserve | Equity portion of | Retained | Total | ||||||||||||||||||||||||||||||
capital | premium | reserves | of financial | Shareholders loans | Earnings | Equity | ||||||||||||||||||||||||||||||
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | ||||||||||||||||||||||||||||||
Balance as at 1 January 2021 | 104,424 | 201,984 | 3,552,064 | - | 875,690 | 121,176 | 4,855,339 | |||||||||||||||||||||||||||||
Loss | for the period | - | - | - | - | - | (540,550) | (540,550) | ||||||||||||||||||||||||||||
Balance as at 30 June 2021 | 104,424 | 201,984 | 3,552,064 | - | 875,690 | (419,374) | 4,314,789 | |||||||||||||||||||||||||||||
Balance as at 1 January 2022 | 104,424 | 201,984 | 3,552,064 | 796,826 | 875,690 | 1,344,425 | 6,875,413 | |||||||||||||||||||||||||||||
Loss | for the period | - | - | - | - | - | (619,709) | (619,709) | ||||||||||||||||||||||||||||
Net loss on equity instruments designated at fair value | ||||||||||||||||||||||||||||||||||||
through other comprehensive income | - | - | - | (1,035,019) | - | - | (1,035,019) | |||||||||||||||||||||||||||||
Balance as at 30 June 2022 | 104,424 | 201,984 | 3,552,064 | (238,193) | 875,690 | 724,716 | 5,220,685 | |||||||||||||||||||||||||||||
Accounting policies | ||||||||||||||||||||||||||||||||||||
REVIEWED ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS | The consolidated financial statements have been prepared in accordance with International Financial Reporting | |||||||||||||||||||||||||||||||||||
for the half year ended 30 June 2022 | Standards (IFRS) as issued by the International Accounting Standards Board. | |||||||||||||||||||||||||||||||||||
Reviewed | The policies applied are consistent with those applied in previous years. | |||||||||||||||||||||||||||||||||||
June | June | |||||||||||||||||||||||||||||||||||
2022 | 2021 | Trade and other receivables | Trade and other payables | |||||||||||||||||||||||||||||||||
ZW$ 000 | ZW$ 000 | June | June | June | June | |||||||||||||||||||||||||||||||
Inflation Adj | Inflation Adj | 2022 | 2021 | 2022 | 2022 | |||||||||||||||||||||||||||||||
ZW$ '000 | ZW$ '000 | ZW$ '000 | ZW$ '000 | |||||||||||||||||||||||||||||||||
Inflation Adj | Inflation Adj | |||||||||||||||||||||||||||||||||||
Net cash generated from operating activities | 285,992 | 1,218,715 | Current | Current | ||||||||||||||||||||||||||||||||
Cash generated from operations | 400,606 | 1,327,236 | Trade receivables | 1,053,855 | 549,091 | Trade payables | 152,359 | 304,208 | ||||||||||||||||||||||||||||
Receivables due from | Trade payables due | |||||||||||||||||||||||||||||||||||
Interest paid | (114,614) | (9,194) | related parties | 72,601 | 17,487 | to related parties | 65,044 | 80,458 | ||||||||||||||||||||||||||||
Taxation paid | - | (99,327) | Less: provision for impairment | (87,626) | (140,074) | Accrued expenses | 259,097 | 72,707 | ||||||||||||||||||||||||||||
Trade receivables - net | 1,038,830 | 426,504 | Social security and other | |||||||||||||||||||||||||||||||||
statutory liabilities | 162,419 | 69,033 | ||||||||||||||||||||||||||||||||||
Net cash generated from investing activities | 96,885 | 42,967 | Prepayments | 19,638 | 45,583 | 638,919 | 526,406 | |||||||||||||||||||||||||||||
Purchase of property, vehicles and equipment to | Staff debtors | 5,338 | 409 | |||||||||||||||||||||||||||||||||
VAT receivable | 106 | 1,582 | ||||||||||||||||||||||||||||||||||
increase operations | (111,415) | (11,622) | ||||||||||||||||||||||||||||||||||
Other debtors | 152,115 | 226,738 | ||||||||||||||||||||||||||||||||||
Proceeds from sale of property, vehicles and equipment | 208,300 | 54,589 | 1,216,027 | 700,816 | ||||||||||||||||||||||||||||||||
Net cash generated/ (utilised) in financing activities | 429,030 | (2,826) | Borrowings | |||||||||||||||||||||||||||||||||
Proceeds from borrowings | 544,084 | 37,903 | Borrowings represent facilities for capital expenditure and working capital. The interest rates is 65%. | |||||||||||||||||||||||||||||||||
Payment of deferred consideration | - | (44) | ||||||||||||||||||||||||||||||||||
Principal payment of lease liabilities | (9,133) | (2,659) | June | Dec | ||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||
Repayments of borrowings | (105,921) | (38,026) | ||||||||||||||||||||||||||||||||||
ZW$ '000 | ZW$ '000 | |||||||||||||||||||||||||||||||||||
Inflation Adj | Inflation Adj | |||||||||||||||||||||||||||||||||||
Increase in cash and cash equivalents | 811,907 | 1,258,856 | Shareholder loans | 875,690 | 875,690 | |||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 54,157 | 178,153 | Equity component of shareholders loans | (875,690) | (875,690) | |||||||||||||||||||||||||||||||
Net foreign exchange differences | 2,436 | 10,272 | - | - | ||||||||||||||||||||||||||||||||
Loans and Borrowings | 379,293 | 96,008 | ||||||||||||||||||||||||||||||||||
Effects of inflation on cash and cash equivalents | (838,086) | (1,008,504) | ||||||||||||||||||||||||||||||||||
379,293 | 96,008 | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | 30,414 | 438,777 | Capital expenditure | |||||||||||||||||||||||||||||||||
Capital expenditure comprises the following: | ||||||||||||||||||||||||||||||||||||
June | June | |||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||
NOTES TO THE REVIEWED ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS | ZW$ '000 | ZW$ '000 | ||||||||||||||||||||||||||||||||||
Inflation Adj | Inflation Adj | |||||||||||||||||||||||||||||||||||
for the half year ended 30 June 2022 | ||||||||||||||||||||||||||||||||||||
Capital expenditure | ||||||||||||||||||||||||||||||||||||
General Information | Acquisition of property, | |||||||||||||||||||||||||||||||||||
vehicles and equipment | 111,415 | 11,622 | ||||||||||||||||||||||||||||||||||
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 | Approved capital commitments | |||||||||||||||||||||||||||||||||||
main activities include inter-city freight consolidations, the distribution of general goods, and a courier service. | ||||||||||||||||||||||||||||||||||||
at the date of approval | ||||||||||||||||||||||||||||||||||||
The Company is incorporated in Zimbabwe. Other entities in the Group are incorporated in Botswana. The | of financial results | - | - | |||||||||||||||||||||||||||||||||
company is listed on the Zimbabwe Stock Exchange | Contingent liabilities | |||||||||||||||||||||||||||||||||||
These Group consolidated financial statements are presented in Zimbabwean Dollars and were authorised | 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 ZW$ 895,800. | ||||||||||||||||||||||||||||||||||||
for issue by the Board of Directors on 29 September 2022. | ||||||||||||||||||||||||||||||||||||
Basis of preparation | Subsequent events | |||||||||||||||||||||||||||||||||||
There are no adjusting or non-adjusting events after the reporting date which have an effect on the financial | ||||||||||||||||||||||||||||||||||||
The consolidated financial statements of the Group have been prepared in accordance with International | ||||||||||||||||||||||||||||||||||||
position of the group as at the reporting date nor require disclosure in the financial statements. | ||||||||||||||||||||||||||||||||||||
Financial Reporting Standards (IFRS) as issued by the international Accounting Standards Board (IASB). | ||||||||||||||||||||||||||||||||||||
The accounting policies are applied consistently throughout the Group. The consolidated financial statements | ||||||||||||||||||||||||||||||||||||
are presented in Zimbabwean dollars (ZW$) and all values are rounded to the nearest 1 000 dollars except | ||||||||||||||||||||||||||||||||||||
where otherwise stated. | Auditor's Statement | |||||||||||||||||||||||||||||||||||
The consolidated financial statements are initially prepared under the historical cost convention as 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 | These Abridged Consolidated Financial Statements have been reviewed by Grant Thornton Chartered | |||||||||||||||||||||||||||||||||||
has been restated for changes in the general purchasing power of the Zimbabwe dollar and as a result are | ||||||||||||||||||||||||||||||||||||
Accountants (Zimbabwe). | ||||||||||||||||||||||||||||||||||||
stated in terms of the measuring unit current at the end of the reporting period. Accordingly, the inflation | ||||||||||||||||||||||||||||||||||||
adjusted consolidated financial statements represent the primary financial statements of the Group. | The auditors have issued a qualified review conclusion regarding non-compliance with the requirements of | |||||||||||||||||||||||||||||||||||
Inflation adjustment | the following: | |||||||||||||||||||||||||||||||||||
The Public Accountants and Auditors Board (PAAB) in their circular 01/19 communicated that the factors and | • International Accounting Standard (IAS) 2 - "Inventories", | |||||||||||||||||||||||||||||||||||
characteristics to apply IAS 29, Financial Reporting in Hyper-Inflationary Economies had been met in | • International Financial Reporting Standard (IFRS 11) - "Joint Arrangements", and | |||||||||||||||||||||||||||||||||||
Zimbabwe. The pronouncement require that entities reporting in Zimbabwe apply the requirements of IAS | • International Accounting Standard (IAS 28) - "Investments in Associates and Joint Ventures." | |||||||||||||||||||||||||||||||||||
29 with effect from 1 July 2019. | ||||||||||||||||||||||||||||||||||||
IAS 29 requires that the financial statements prepared in the currency of a hyperinflationary economy be | The review conclusion on the Abridged Consolidated Financial Statements is available for inspection at the | |||||||||||||||||||||||||||||||||||
company's registered office. | ||||||||||||||||||||||||||||||||||||
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 engagement partner on the review engagement resulting in this independent review conclusion is Farai | |||||||||||||||||||||||||||||||||||
the monthly Consumer Price Indices as published by the Reserve Bank of Zimbabwe. The following factors | Chibisa (PAAB Number 0547). | |||||||||||||||||||||||||||||||||||
were applied: | ||||||||||||||||||||||||||||||||||||
Period / Month | Factor | Period / Month | Factor | |||||||||||||||||||||||||||||||||
Jun-21 | 2.9156 | Mar-22 | 1.8269 | |||||||||||||||||||||||||||||||||
Dec-21 | 2.1892 | Apr-22 | 1.5811 | |||||||||||||||||||||||||||||||||
Jan-22 | 2.0781 | May-22 | 1.3070 | |||||||||||||||||||||||||||||||||
Feb-22 | 1.9423 | Jun-22 | 1.0000 | |||||||||||||||||||||||||||||||||
Directors: P.J. Annesley (Chairman); R.E. Kuipers * (Chief Executive Officer); B.N. Ndebele; H. Crabbe; M. Kalweit *Executive
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Disclaimer
Unifreight Africa Ltd. published this content on 30 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 October 2022 15:52:54 UTC.