Abridged Statement of profit or loss and other comprehensive income for the year ended 31 December 2016
2016
2015
$
$
Revenue
61,004,062
60,978,116
Operating loss before other income, finance costs and tax
(2,171,955)
(2,001,392)
Other income
6,639,498
324,523
Profit/ (loss) before finance costs and tax
4,467,543
(1,676,869)
Finance costs
(250,391)
(700,487)
Profit/ (loss) before tax
4,217,152
(2,377,356)
(1,089,972)
412,059
Profit/ (loss) for the year
3,127,180
(1,965,297)
Other comprehensive income, net of tax
1,843,598
-
Total comprehensive income/ (loss) for the year
4,970,778
(1,965,297)
0.039
(0.025)
2016
2015
$
$
44,090,762
37,533,722
33,594,787
27,379,310
3,607,831
198,827
Income tax (expense)/ credit
Basic/ diluted earnings/ (loss) per share based on 80,000,000
shares in issue ($ per share)
Abridged statement of financial position as at 31 December 2016
ASSETS
Non-current assets
Property, plant and equipment, intangibles and other non-current
receivables
Current assets
Current assets other than cash and cash equivalents
Cash and cash equivalents
Assets held for sale
616,000
-
Total current assets
37,818,618
27,578,137
Total assets
81,909,380
65,111,859
EQUITY AND LIABILTIES
Capital and reserves
Issued capital
800,000
800,000
12,508,225
10,664,627
-
23,893
Retained earnings
27,270,755
24,119,681
Total equity
40,578,980
35,608,201
5,389,961
5,332,034
990,291
808,263
6,380,252
6,140,297
Revaluation reserve
Share based payment reserve
Non-current liabilities
Deferred tax
Provision for quarry rehabilitation
Total non-current liabilities
Current liabilities
Trade and other payables
11,234,848
8,244,785
Related party payables
21,014,458
12,155,277
650,451
-
Bank Overdraft
Current tax payable
-
645,205
2,050,391
2,318,094
Total current liabilities
34,950,148
23,363,361
Total equity and liabilities
81,909,380
65,111,859
Provisions
Supplementary information for the year ended 31 December 2016
Abridged statement of changes in equity for year ended 31 December 2016
Issued
capital
Revaluation
reserve
Share-based
payment reserve
Retained
earnings
Total
$
$
$
$
$
800,000
10,664,627
47,785
26,061,086
37,573,498
Loss for the year
-
-
-
(1,965,297)
(1,965,297)
Transfer from share-based
payments to retained earnings
-
-
(23,892)
23,892
-
Balance as 31 December 2015
800,000
10,664,627
23,893
24,119,681
35,608,201
-
-
-
3,127,180
3,127,180
Balance at 1 January 2015
Statement of Compliance
The underlying financial statements to these results have been prepared in accordance with the International Financial
Reporting Standards and in the manner required by the Companies Act (Chapter 24.03) and the Zimbabwe Stock Exchange
Listing Requirements.
Accounting policies and reporting currency
There have been no material changes in the Company’s accounting policies since the date of the last financial statements.
The financial results are presented in United States dollars which is the functional currency of the Company and rounded
to the nearest dollar (US$) unless otherwise indicated.
Contingent liabilites
The Company had a tax assessment from Zimbabwe Revenue Authority for $7.9 million dollars which is under litigation.
Borrowings
The Company had no borrowings in the year under review with the exception of an unsecured overdraft.
Related party payables
Profit for the year
Amounts payable to fellow group subsidiaries on non-trade related
transactions
Amounts payable to fellow group subsidiaries on trade related
transactions
Other comprehensive income for
the year, net of income tax
-
1,843,598
-
-
1,843,598
Total comprehensive income for
the year
-
1,843,598
-
3,127,180
4,970,778
Transfer from share-based payments to retained earnings
-
-
(23,893)
23,893
-
800,000
12,508,225
-
Balance at 31 December 2016
Related party payables comprise broadly of the following:
27,270,755
40,578,980
Abridged statement of cash flows for the year ended 31 December 2016
2016
2015
$
$
Profit/ (Loss) for the year
3,127,180
(1,965,297)
Net cash generated from operations before working capital
changes
7,733,376
1,849,470
Cash generated from operations
15,948,126
7,214,744
Net cash generated from operating activities
11,587,189
6,129,866
Net cash used in investing activities
(8,828,636)
(2,985,260)
650,451
(4,839,030)
3,409,004
(1,694,424)
198,827
1,893,251
3,607,831
198,827
Net cash generated from/ (used in) financing activities
Net increase/ (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Supplementary information for the year ended 31 December 2016
Profit before tax
Profit before tax is shown after charging the following items of significance:
2016
2015
$
$
Auditors’ remuneration
46,685
84,900
Amortisation of intangible assets
24,561
29,763
Directors' fees
60,370
96,672
Technical fees
1,639,642
2,461,975
11,509,821
13,211,360
8,833,834
3,028,324
-
14,628
8,833,834
3,042,952
3,057,081
3,636,660
516,922
514,588
3,574,003
4,151,248
2,683,075
2,727,168
Employee benefits expense
Capital expenditure:
Property, plant and equipment
Capitalised quarry stripping costs
Depreciation and amortisation:
Depreciation expense
Amortised quarry stripping costs
Approved capital commitments at the date of approval of the financial results
12,840,172
11,457,746
8,174,286
697,531
The amounts due or payable are unsecured and will be settled in cash. No guarantees have been given or received.
Approval and events after the reporting period
The underlying financial statements to the results were approved by the Board on 30 March 2017.Subsequent to the
reporting period date there were no material adjusting or non-adjusting events warranting disclosure in this press statement.
Auditors’ Statement
These financial results should be read in conjunction with the complete set of financial statements for the year ended
31 December 2016, which have been audited by Ernst & Young Chartered Accountants (Zimbabwe) who have issued an
unmodified opinion. The key audit matters identified were recoverability of trade receivables, valuation of inventory in stock
piles and revaluation of land and buildings. The auditor’s report on the financial statements (from which these results were
extracted) is available for inspection at the Company’s registered office.