TIDMAMBR
RNS Number : 1676S
Ambrian PLC
29 September 2017
LONDON, 29 September 2017
AMBRIAN PLC
Interim Results for the six months to 30 June 2017
Ambrian plc ("Ambrian" or the "Company" and, together with its
subsidiaries, the "Group") today announces its unaudited
consolidated results for the six months ended 30 June 2017.
Highlights
-- Group turnover of US $0.23 billion (1H2016: US $0.57
billion), a 60% reduction due to the run-down of the Company's
trading and logistics business during the period
-- Group EBITDA loss of US $0.30 million (1H2016: US $1.40 million loss)
-- Turnover of cement business of US $6.18 million (1H2016: US $5.44 million)
-- EBITDA of cement business US $0.22 million (1H 2016: US $0.04 million)
-- EBITDA of trading and logistics business of US $0.17 million
(1H 2016: EBITDA loss US $0.91 million)
-- Group loss before tax of US $3.68 million (1H 2016: Loss of
US $17.29 million after impairment charge of US 13.70 million)
-- Trading and logistics business has been run-down with a reduction in exposures to the Group
-- Net asset value attributable to owners of the Company as at
30 June 2017 of US $22.58 million (31 December 2016: US $25.73
million) equivalent to US 9.16 cents per share (31 December 2016:
US 10.44 cents per share)
-- Cimentos da Beira, the Company's operating subsidiary in
Mozambique, is in advanced negotiations with its term loan lender,
the Industrial Development Corporation of South Africa Ltd ("IDC")
to restructure the terms and conditions of its loans
Commenting on the results, Martin Abbott, non-executive
Chairman, stated:
"We continue to examine strategic options for the business
against the backdrop of improving performance of our cement
business in Mozambique. We are heartened by the commercial
performance of our cement plant in the first six months of this
year and we continue to believe in the long term GDP growth in
Mozambique and the likely significant increase in per capita cement
consumption driven by the current housing deficit and ambitious
infrastructure plans."
Enquiries
Ambrian plc
Roger Clegg + 44 (0)20 7634 4785
Cenkos Securities plc
Neil McDonald + 44 (0)20 7397 8900
Nick Tulloch
Notes to Editors
Ambrian is active is the cement business in Mozambique. We
pursue selective strategic acquisitions and ventures which can
demonstrate a compelling industrial, commercial and financial
justification.
Ambrian is quoted on the Alternative Investment Market of the
London Stock Exchange under the ticker symbol AMBR. Further
information on the Group is available on the Company's website:
www.ambrian.com or the website of Cimentos da Beira Lda:
www.cdb.co.mz.
Chairman's Statement
Gross profit for the Group for the six months ended 30 June 2017
was US $2.64 million on a turnover of US $0.23 billion (1H 2016: US
$1.80 million on a turnover of US $0.57 billion).
For the period under review EBITDA was a loss of US $0.30
million (1H2016: US $1.40 million loss), a function of positive
trading and cement sales.
The operating loss for the six months ended 30 June 2017
amounted to US $0.94 million (1H 2016: operating loss of US $16.42
million) and the loss before tax amounted to US $3.68 million (1H
2016: loss before tax US $17.29 million).
Within the overall loss before tax, the cement business reported
a loss before tax of US $2.78 million for the period (1H 2016: loss
before tax of US $16.01 million). Trading and logistics, in the
run-up to its closure in June 2017, reported a profit before tax of
US $0.11 million for the period (1H 2016: loss before tax of US
$0.95 million).
Cement
The first quarter of the year is typically the latter part of
the "wet season", however Q1 2017 experienced higher than average
rainfall. In February, Beira had the month's average rainfall in
two days, a pattern repeated through March. The unpredictable
rainfall patterns led to wide spread flooding which curtailed
construction projects and caused logistics difficulties. This down
turn in demand together with competitors' strong wholesale
discounting tactics led to sales volumes for the first quarter
being adversely affected. Despite the continuing rain into
February, the latter part of that month saw some record deliveries
of bagged cement from the plant. As the weather improved in the
second quarter of the year, sales volumes did improve.
Ready mix cement has not performed as well as expectations due
to the adverse weather and the unavailability of mixer-trucks over
the first half of the year.
The cement market is influenced by the general economy of the
country which is still struggling with the impacts of the debt
crisis and suspension of IMF and Donor funding. This has resulted
in the postponement or cancellation of a number of public
infrastructure projects. In addition, the residential and
commercial markets have been negatively affected by a lack of
available income, high interest rates and low borrowing capacity.
Whilst the downturn in cement sales is national, the impact has
been more pronounced in the south of the country and less so in the
central region where the plant is located, and also in the northern
region.
Despite the downturn, the Company continues to develop its sales
strategy and we have expanded our distribution network by
establishing depots in Chimoio which we believe will achieve
increased penetration rates in the area, and in Massinga, where a
large proportion of the population has above average purchasing
power. Building these centres now will allow us to establish our
brand locally and then benefit more quickly from an improving
economy.
Our brand is increasingly recognised as a premium product and
efforts are continuing by the sales team to promote the products'
advantages to block makers, concrete product manufacturers and
construction companies, comprising a large section of our customer
base.
Realised prices have improved over the period, helped by the
strengthening of the local currency against the US dollar. The
market has begun to stabilize after the reduction of aggressive
discounts being offered in the market as industry participants
sought to maintain market share in Central Mozambique.
Raw material unit costs and usage factors have been stable over
the period. However, power costs are above the industry average and
so we are actively negotiating with the power utility to align the
costs with those of our competitors.
Cimentos da Beira Lda ("CDB"), a subsidiary of the Company, has
been provided with a US $13.5 million and a US $5.5 million term
loan facility from the Industrial Development Corporation of South
Africa Ltd ("IDC") to assist in the construction of its cement
plant in Mozambique. As at 30 June 2017, both term loans had been
fully drawn down. These loans were originally repayable in 60 equal
monthly instalments from April 2016 onwards. Given the delay in
start-up of the operations and the lower than forecast sales
volumes, the Company and the IDC entered into negotiations in June
2016 to amend the terms of the facilities, although, at that time,
the IDC did also notify CDB that it was in default under the
existing term loan agreements.
Negotiations have been ongoing between CDB and the IDC over the
past year regarding the deferral of the repayment of the term
loans. CDB and IDC have agreed to a tentative restructuring of the
term loans with the first quarterly repayments under the term loans
starting in March 2018. Repayments will be in equal quarterly
payments and the maturity date of both term loans will be in 2023.
The tentative restructuring of the term loans is subject to certain
approvals, final documentation and conditions precedent customary
for a transaction of this nature.
The challenges that the country faces are not unique for an
emerging economy. We remain confident of the long-term growth
prospects in Central Mozambique and more particularly of the Beira
corridor which is a natural gateway for the hinterland and
landlocked countries such as Zambia, Malawi and Zimbabwe.
Trading & Logistics
Following the announcement by the Company on 14 October 2016 of
its intention to withdraw from metals trading and logistics, the
activity has been in a winding down phase since then. This has
resulted in the execution of contractual obligations with respect
to the purchase and sale of metal, the sale of any non-allocated
inventory and a reduction in staff. The withdrawal from the
business has been made in an orderly manner with the assistance of
our financing banks who have supported the business to the end. As
at 30 June 2017, there were three transactions outstanding which
have been subsequently completed. All capital that had been
allocated to this activity has been released and there are no staff
involved in the business. Overseas offices related to the activity
are in the course of closure.
Board Changes
On 25 August 2017, the executive contract of Mr Conrad, the
Chief Executive Officer, was terminated. This was due to the lack
of confidence on the part of the majority of the Board in Mr
Conrad's ability to lead the Company. Mr Conrad is contesting the
validity of his removal. His responsibilities have been reallocated
to other Directors and executives.
A General Meeting of the Company will be held on 3 October 2017
with a resolution to remove Mr Conrad as a Director of the Company.
The General Meeting has been requisitioned by certain
shareholders.
Current Trading and Future Prospects
Cement
CDB's sales volumes of cement have been at record levels in July
and August of this year which is encouraging for the remainder of
the year. Sales prices have stabilized and discounting has been
less aggressive.
The exchange rate of the Mozambiqan Meticals against the US
Dollar has moved from approximately 71 in December 2016 to
approximately 61 at the current time which has been beneficial to
the business as it purchases its raw materials in US Dollars and
sells it product in Mozambiqan Meticals.
We expect unit costs to further reduce over the remainder of the
year as a result of a falling raw material costs, feed optimisation
and a ramp up in production volumes.
Transport costs are a significant part of the variable costs of
the business so we are constantly reviewing our transport options
to improve our cement distribution capabilities and refine our
pricing strategy. We are also focused on securing transport and
pumping capacity for our concrete products.
Strategy
As announced on 31 July 2017, the Company engaged Verdant
Capital, an African corporate finance specialist, to assess
strategic options for the Company's cement operations.
Martin Abbott
Chairman
Financial Review
Overview
Gross profit for the Group was US $2.64 million on turnover of
US $0.23 billion for the six months ended 30 June 2017 (1H 2016: US
$1.80 million gross profit on turnover of US $0.57 billion).
After administrative expenses and finance income and costs, loss
before tax for the six months ended 30 June 2017 was US $3.68
million (1H 2016: US $17.29 million which included an impairment
charge of US $13.70 million (1H 2017: nil)).
Cement
Turnover of US $6.18 million for the period under review
compares favourably with turnover of US $5.44 million for the six
months ended 30 June 2016 and is indicative of the ramping up of
production and the stabilisation of cement prices.
The business reported a gross margin of US $1.79 million which
resulted in an EBITDA of US $0.22 million after administrative
expenses of US $1.56 million. The comparative figures for the six
months ended 30 June 2016 were a gross margin of US $0.64 million,
administrative expenses of US $0.60 million and an EBITDA of US
$0.04 million. The loss before tax for the cement business for the
six months ended 30 June 2017 was US $2.78 million (1H 2016: loss
before tax US $16.01 million which included an impairment charge of
US $13.70 million (no impairment charge in 1H 2017).
Trading and Logistics
This activity was in a run-off phase during the period under
review which was reflected in its lower turnover of US $0.22
billion compared to US $0.56 billion for the period to 30 June
2016. EBITDA for the period was US $0.17 million (1H 2016: EBITDA
loss US $0.91 million). The profit before tax for trading and
logistics for the six months ended 30 June 2017 was US $0.11
million (1H 2017: Loss before tax US $0.95 million).
Expenses
Group administrative expenses were US $2.94 million for the six
months to 30 June 2017 (1H 2016: US $3.20 million), of which US
$0.70 million (1H 2016: US $0.53 million) was represented by Group
corporate overheads. Total headcount at 30 June 2017 was 107, a
reduction of 17 since 31 December 2016 due to the run-off of the
trading and logistics business.
Balance Sheet
Total assets were US $70.18 million at 30 June 2017 compared
with US $282 million at 31 December 2016. The majority of the
decrease is due to the withdrawal from the trading and logistics
business in the first six months of 2017.
As already reported in the Chairman's Statement, there are
ongoing negotiations between CDB and the IDC regarding the
restructuring of the term loans. Although the negotiations have
progressed well, at the date of publication of the Group's
condensed consolidated interim financial statements as at 30 June
2017, approvals, final documentation and conditions precedent were
still outstanding. The Group is therefore required to categorise
all liabilities with the IDC as Current Liabilities, which would
normally be reported as Non-Current Liabilities.
These conditions indicate the existence of a material
uncertainty which may cast doubt about the Group's ability to
continue as a going concern. The Directors are confident that the
revised terms regarding the commencement of the loan repayments to
March 2018 will be formally approved by the IDC.
Total equity before non-controlling interests was US $22.58
million at 30 June 2017 compared with US $25.73 million at 31
December 2016. Net asset value per share which is equity
attributable to the owners of the parent was US 9.16 cents per
share (31 December 2016: US 10.44 cents). Net asset value per share
is based on 246,457,301 ordinary shares outstanding at 30 June
2017, excluding treasury shares, non-treasury shares and shares
held by the Ambrian Employee Benefit Trust (31 December 2016:
246,457,301 ordinary shares outstanding). The reduction in net
asset per share is attributable to the losses incurred by the Group
in the six months to 30 June 2017.
Ambrian plc
Condensed Consolidated Statement of Comprehensive Income
(unaudited) (unaudited) (audited)
Six Six
months months Year
to 30 to 30 to 31
June June December
2017 2016 2016
US $000's US $000's US $000's
Turnover 224,505 567,689 1,047,187
Cost of Sales (221,869) (565,889) (1,045,970)
------------ ------------ ------------
Total income 2,636 1,800 1,217
Administrative expenses (2,937) (3,198) (7,256)
Depreciation (634) (1,315) (2,204)
Impairment charge - (13,703) (21,286)
Total administrative expenses (3,571) (18,216) (30,746)
Operating loss (935) (16,416) (29,529)
Finance income - 530 1,479
Finance costs (2,743) (1,400) (3,094)
Loss before tax (3,678) (17,286) (31,144)
Taxation - 5,384 6,740
Loss after tax (3,678) (11,902) (24,404)
------------ ------------ ------------
Other comprehensive income
Items that may be subsequently
reclassified to
profit/(loss)
Exchange profit arising
from translation of
foreign operations - - -
------------ ------------ ------------
Total other comprehensive
profit - - -
------------ ------------ ------------
Total comprehensive loss (3,678) (11,902) (24,404)
============ ============ ============
(Loss)/profit attributable
to:
Owners of parent (3,150) (9,723) (20,709)
Non-controlling interest (528) (2,179) (3,695)
(3,678) (11,902) (24,404)
------------ ------------ ------------
Total comprehensive (loss)/profit
attributable to:
Owners of parent (3,150) (9,723) (20,709)
Non-controlling interest (528) (2,179) (3,695)
(3,678) (11,902) (24,404)
------------ ------------ ------------
Loss per share in USD cents:
Basic and diluted earnings
per share (1.28) (4.11) (8.57)
Ambrian plc
Condensed Consolidated Statement of Financial Position
(unaudited) (unaudited) (audited)
As at As at As at
30 June 30 June 31 December
2017 2016 2016
US $000's US $000's US $000's
ASSETS
Non-current assets
Property, plant and equipment 53,473 62,064 54,217
Deferred tax asset 2,184 3,305 2,184
------------ ------------ -------------
55,657 65,369 56,401
Current assets
Financial assets at fair
value through profit or
loss 158 162 150
Inventory 3,354 163,404 156,215
Trade and other receivables 9,593 49,132 64,107
Current tax receivable - 44 -
Cash and cash equivalents 1,415 3,962 6,693
------------ ------------ -------------
14,520 216,704 227,165
Total assets 70,177 282,073 283,566
LIABILITIES
Non-current liabilities
Long-term borrowings (1,151) (844) (915)
Deferred tax liability (558) (3,001) (558)
------------ ------------ -------------
(1,709) (3,845) (1,473)
Current liabilities
Financial liabilities at
fair value through profit
or loss (844) (5,340) (6,074)
Short-term borrowings (31,878) (161,624) (171,448)
Short-term liabilities under
sale and repurchase agreements - (23,312) (2,667)
Trade and other payables (10,204) (46,427) (72,342)
Provisions - - (323)
Current tax payable - - (19)
------------ ------------ -------------
(42,926) (236,703) (252,873)
Total liabilities (44,635) (240,548) (254,346)
Total net assets 25,542 41,525 29,220
============ ============ =============
Capital and reserves
Share capital 4,063 4,222 4,063
Share premium 19,578 18,044 19,578
Capital redemption reserve 15,898 15,898 15,898
Merger relief reserve 24,770 24,770 24,770
Shares to be issued - 1,477 -
Treasury shares (1,986) (1,986) (1,986)
Other reserve (4,688) (4,980) (4,688)
Retained losses (30,681) (16,545) (27,531)
Employee benefit trust (10,863) (10,870) (10,863)
Share based payment reserve 8,052 8,052 8,052
Exchange reserve (1,567) (1,567) (1,567)
------------ ------------ -------------
Total equity attributable
to the owner of the parent 22,576 36,515 25,726
Non-controlling interest 2,966 5,010 3,494
Total equity 25,542 41,525 29,220
============ ============ =============
Ambrian plc
Condensed Consolidated Statement of Changes in Equity
Total
equity
attributable
Shares Share to the
Share Capital Merger to based Employee owner
Share premium redemption relief be Treasury Other Retained payments benefit Exchange of the Non-controlling Total
capital account reserve reserve issued shares reserve losses reserve trust reserve parent interest equity
US US US US US US US US US $000's US US US $000's US $000's US
$000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's
Balance at 31
December 2015 4,222 18,044 15,898 24,770 1,477 (1,986) (4,980) (6,822) 8,052 (10,870) (1,567) 46,238 7,189 53,427
-------- -------- ----------- -------- -------- --------- -------- --------- ---------- --------- --------- ------------- ----------------- ---------
Comprehensive
income
Loss for the
period - - - - - - - (9,723) - - - (9,723) (2,179) (11,902)
-------- -------- ----------- -------- -------- --------- -------- --------- ---------- --------- --------- ------------- ----------------- ---------
Total
comprehensive
loss for the
period - - - - - - - (9,723) - - - (9,723) (2,179) (11,902)
-------- -------- ----------- -------- -------- --------- -------- --------- ---------- --------- --------- ------------- ----------------- ---------
Balance at 30
June 2016
(unaudited) 4,222 18,044 15,898 24,770 1,477 (1,986) (4,980) (16,545) 8,052 (10,870) (1,567) 36,515 5,010 41,525
======== ======== =========== ======== ======== ========= ======== ========= ========== ========= ========= ============= ================= =========
Comprehensive
loss
Loss for the
period - - - - - - - (10,986) - - - (10,986) (1,516) (12,502)
-------- -------- ----------- -------- -------- --------- -------- --------- ---------- --------- --------- ------------- ----------------- ---------
Total
comprehensive
loss for the
period - - - - - - - (10,986) - - - (10,986) (1,516) (12,502)
Issuance of
shares 144 1,534 - - (1,477) - (201) - - - - - - -
Share
cancellation (303) - - - - - 303 - - - - - - -
Shares awarded
to employees - - - - - - 190 - - - - 190 - 190
Exercise of
options - - - - - - - - 7 - 7 - 7
-------- -------- ----------- -------- -------- --------- -------- --------- ---------- --------- --------- ------------- ----------------- ---------
Balance at 31
December 2016 4,063 19,578 15,898 24,770 - (1,986) (4,688) (27,531) 8,052 (10,863) (1,567) 25,726 3,494 29,220
======== ======== =========== ======== ======== ========= ======== ========= ========== ========= ========= ============= ================= =========
Comprehensive
income
Loss for the
period - - - - - - - (3,150) - - - (3,150) (528) (3,678)
-------- -------- ----------- -------- -------- --------- -------- --------- ---------- --------- --------- ------------- ----------------- ---------
Total
comprehensive
loss for the
period - - - - - - - (3,150) - - - (3,150) (528) (3,678)
Balance at 30
June 2017
(unaudited) 4,063 19,578 15,898 24,770 - (1,986) (4,688) (30,681) 8,052 (10,863) (1,567) 22,576 2,966 25,542
======== ======== =========== ======== ======== ========= ======== ========= ========== ========= ========= ============= ================= =========
Ambrian plc
Condensed Consolidated Statement of Cashflows
(unaudited) (unaudited) (audited)
Six months Six
to 30 months Year to
June to 30 31 December
2017 June 2016
2016
US $ US $ US $ 000's
000's 000's
Loss for the period (3,678) (11,902) (24,404)
Adjustments for:
Depreciation of property, plant
and equipment 634 1,315 2,204
Loss on disposal of property,
plant and equipment 90 - -
Impairment of property, plant
and equipment - 13,703 21,286
Finance costs 2,743 1,400 3,094
Share-based payment expense - - 190
Foreign exchange losses - 328 72
Taxation - (5,384) (6,740)
Decrease in inventories 152,861 99,137 106,326
Decrease/(increase) in trade
and other receivables 54,514 9,840 (4,024)
Unrealised gains/(losses) on
financial liabilities at fair
value (5,230) 2,665 3,399
Unrealised gains on financial
assets at fair value (8) 7,333 7,345
Increase/(decrease) in trade
and other payables (62,480) (17,430) 7,974
------------ ------------ --------------
Cash generated in operations 139,446 101,005 116,722
Taxation received - 191 288
Net cash flow generated in operating
activities 139,446 101,196 117,010
------------ ------------ --------------
Investing activities
Purchase of property, plant and
equipment - (1,046) (1,671)
Proceeds from disposal of property,
plant and equipment 20 - -
Net cash used in investing activities 20 (1,046) (1,671)
------------ ------------ --------------
Financing activities
Interest paid (2,507) (1,400) (2,851)
(Decrease) in short term liabilities
under sale and repurchase agreements (2,667) (20,433) (41,078)
(Repayment) of short term borrowings (139,570) (84,192) (74,475)
Increase in long term borrowings - 65 -
Net cash used in financing activities (144,744) (105,960) (118,404)
------------ ------------ --------------
Net (decrease)/increase in cash
and cash equivalents (5,278) (5,810) (3,065)
Cash and cash equivalents at
the beginning of the year 6,693 9,823 9,823
Effect of foreign exchange rate
differences on cash and cash
equivalents - (51) (65)
Cash and cash equivalents at
the end of the year 1,415 3,962 6,693
============ ============ ==============
Notes to the Condensed Consolidated Interim Financial
Statements
1. Basis of preparation
The condensed interim financial statements are for the six
months ended 30 June 2017. The financial information set out in
these condensed interim financial statements does not constitute
statutory accounts as defined in Section 434(3) of the Companies
Act 2006. The comparative financial information for the year ended
31 December 2016 in this interim report does not constitute
statutory financial statements for that year. The statutory
financial statements for 31 December 2016 have been delivered to
the Registrar of Companies. The auditor's report on those financial
statements was unqualified, did not draw attention to any matters
by way of emphasis, and did not contain a statement under s.498(2)
or s.498(3) of the Companies Act 2006.
The accounts for the period have been prepared in accordance
with International Accounting Standard 34 "Interim Financial
Reporting" ("IAS 34") and the accounting policies are consistent
with those of the annual financial statements for the year ended 31
December 2016, unless otherwise stated, and those envisaged for the
financial statements for the year ended 31 December 2017.
Cimentos da Beira Lda ("CDB"), a subsidiary of the Company, has
been provided with a US $13.5 million and a US $5.5 million term
loan from the Industrial Development Corporation of South Africa
Ltd ("IDC") to assist in the financing of its cement plant in
Mozambique. At the reporting date both term loans had been fully
drawn down. These loans are repayable in 60 equal monthly
instalments from April 2016 onwards. No repayments of the loans had
been made by the CDB as at the date of publication of the Group's
condensed consolidated interim financial statements as at 30 June
2017. As a result, at the reporting date, CDB was in default under
the existing term loan agreements with the IDC.
Negotiations have been ongoing between CDB and the IDC over the
past year as to the deferral of the repayment of the term loans.
CDB and IDC have agreed to a tentative restructuring of the term
loans with the first quarterly repayment under the term loans
starting in March 2018. Repayments will be in equal quarterly
payments over a five year period until the maturity date of both
term loans in 2023. The tentative restructuring of the term loans
is subject to certain approvals, final documentation and conditions
precedent customary for a transaction of this nature. At the date
of publication of the Group's condensed consolidated interim
financial statements as at 30 June 2017 approvals, final
documentation and conditions precedent were still outstanding. The
Group is therefore required to categorise all liabilities with the
IDC as Current Liabilities, which would normally be reported as
Non-Current Liabilities.
The IDC has also advanced a US $4m junior convertible loan to
CDB which is either repayable or convertible into an equity
interest in CDB within a six month period following the full
amortisation of both term loans.
These conditions indicate the existence of a material
uncertainty which may cast significant doubt about the Group's
ability to continue as a going concern. However, the Directors are
confident that the revised terms regarding the deferral of the loan
repayments to March 2018 will be formally approved by the IDC.
The Directors have a reasonable expectation that the Group has
adequate resources to continue its operational existence for the
foreseeable future. For this reason, they continue to adopt the
going concern basis in preparing the condensed consolidated interim
financial statements and the condensed consolidated interim
financial statements do not include the adjustments that would
result if the Group was unable to continue as a going concern.
The interim financial statements were approved by the Directors
on 28 September 2017 and copies are available to the public free of
charge from the Company at 41 Lothbury, London EC2R 7HG during
normal office hours, Saturdays, Sundays and Bank Holidays excepted,
for 14 days from today.
2. Segmental Analysis
The Group has three reportable segments attributable to its
continuing operations including Head office:
Trading & logistics: comprises Ambrian Metals Limited and
its subsidiary companies, a physical metals and minerals
merchant.
Cement operations: comprises Cimentos da Beira, a cement mill
located in Beira, Mozambique.
Head office: principally relates to overheads incurred in
operating the public limited company, providing support functions
to the operating businesses, and includes the remuneration of the
Directors of Ambrian plc.
Six months to
30 June 2017 Head office
(unaudited) Trading Cement costs Total
US $000's US $000's US $000's US $000's
Turnover 218,324 6,181 - 224,505
Cost of sales (217,476) (4,393) - (221,869)
---------- ---------- ------------ ----------
Gross margin 848 1,788 - 2,636
Administrative
expenses (677) (1,564) (696) (2,937)
----------
EBITDA 171 224 (696) (301)
========== ========== ============
Depreciation
and impairment
expense (634)
Finance income -
Finance cost (2,743)
Loss before
tax (3,678)
==========
Six months to
30 June 2016 Head office
(unaudited) Trading Cement costs Total
US $000's US $000's US $000's US $000's
Turnover 562,246 5,443 - 567,689
Cost of sales (561,084) (4,805) - (565,889)
---------- ---------- ------------ ----------
Gross margin 1,162 638 - 1,800
Administrative
expenses (2,067) (598) (533) (3,198)
----------
EBITDA (905) 40 (533) (1,398)
========== ========== ============
Depreciation
and impairment
expense (15,018)
Finance income 530
Finance cost (1,400)
Loss before
tax (17,286)
==========
Year to 31 December Head office
2016 (audited) Trading Cement costs Total
US $000's US $000's US $000's US $000's
Turnover 1,037,175 10,012 - 1,047,187
Cost of sales (1,036,773) (9,197) - (1,045,970)
------------ ---------- ------------ ------------
Gross margin 402 815 - 1,217
Administrative
expenses (4,083) (2,075) (1,098) (7,256)
------------
EBITDA (3,681) (1,260) (1,098) (6,039)
============ ========== ============
Depreciation
and impairment
expense (23,490)
Finance income 1,479
Finance cost (3,094)
Loss before
tax 31,144
============
(unaudited) (unaudited) (audited)
As at 30 As at 30 Year to
June 2017 June 2016 31 December
2016
US $000's US $000's US $000's
Loss before tax
Trading 110 (952) (3,977)
Cement operations (2,779) (16,011) (27,024)
Head office (1,009) (323) (143)
(3,678) (17,286) (31,144)
=========== ============ =============
(unaudited) (unaudited) (audited)
As at 30 As at 30 Year to
June 2017 June 2016 31 December
2016
US $000's US $000's US $000's
Total assets
Trading 6,112 212,202 219,869
Cement operations 63,682 69,420 63,237
Head office 383 451 460
70,177 282,073 283,566
=========== ============ =============
Total liabilities
Trading 4,987 203,118 217,034
Cement operations 37,527 34,382 35,437
Head office 2,121 3,048 1,875
44,635 240,548 254,346
=========== ============ =============
(unaudited) (unaudited) (audited)
Six months Six months Year to
to 30 June to 30 June 31 December
2017 2016 2016
Turnover US $000's US $ 000's US $000's
Eastern Asia - 284,344 535,923
Western Asia - 176,008 313,312
Other 224,505 107,337 197,952
(unaudited) (unaudited) (audited)
Six months Six months Year to
to 30 June to 30 June 31 December
2017 2016 2016
Customer Turnover US $000's US $000's US $000's
Customer A - 73,273 97,387
Customer B - 69,154 -
Other 224,505 425,262 949,800
3. Cash and cash equivalents
Within cash and cash equivalents there is no restricted cash at
30 June 2017. At 30 June 2016 there was restricted cash of US
$1,383,633 and at 31 December 2016 there was restricted cash of
$3,316,805.
4. Earnings per share
The calculation of the basic earnings per share is based on the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the year,
excluding shares held in the Employee Benefit Trust on 30 June 2017
of 6,259,046 (2016: 6,259,046), Treasury shares on 30 June 2017 of
4,500,058 (2016: 4,500,058) and Non-treasury shares on 30 June 2017
of 8,484,466 (30 June 2016: 28,812,192).
Reconciliations of the earnings and weighted average number of
shares used in the calculations are set out below. Diluted earnings
per share has not been calculated as the Group is loss making.
Six months Six months Year to
to 30 to 30 31 December
June 2017 June 2016 2016
US $000's US $000's US $000's
(unaudited) (unaudited) (audited)
Loss attributable to shareholders (3,150) (9,723) (20,709)
Diluted loss attributable
to shareholders (3,150) (9,723) (20,709)
Weighted average number
of shares 246,457,300 236,810,651 241,673,620
Dilutive effect of share
options 66,675,000 66,675,000 66,675,000
Basic earnings per share
US $ cents (1.28) (4.11) (8.57)
Diluted earnings per share
US $ cents (1.28) (4.11) (8.57)
5. Financial instruments
(unaudited) (unaudited)
As at 30 June 2017 As at 30 June 2016
Loans At fair Loans At fair
and Receivables value and Receivables value
at amortised through at amortised through
cost profit cost profit
or loss Total or loss Total
US $000's US $000's US $000's US $000's US $000's US $000's
Financial assets
Cash and cash
equivalents 1,415 - 1,415 3,962 - 3,962
Trade receivables
- current 7,495 - 7,495 44,790 - 44,790
Other receivables
- current - - - 4,342 - 4,342
Financial assets
at fair value
through profit
or loss - equities - 158 158 - 162 162
Total 8,910 158 9,068 53,094 162 53,256
================= ========== ========== ================= ========== ==========
(unaudited) (unaudited)
As at 30 June 2017 As at 30 June 2016
Trade and At fair Trade At fair
other payables value and other value
at amortised through payables through
cost profit at amortised profit
or loss Total cost or loss Total
US $000's US $000's US $000's US $000's US $000's US $000's
Financial
liabilities
Trade payables 9,207 - 9,207 17,958 - 17,958
Other payables
- current 740 - 740 65 - 65
Short term
borrowings 31,878 - 31,878 161,624 - 161,624
Accruals and
deferred income 257 - 257 525 27,878 28,403
Short term
liabilities
under sale
and repurchase
agreements - - - 23,312 - 23,312
Financial
liabilities
at fair value
through profit
or loss- derivatives - 844 844 - 5,340 5,340
Long term
borrowings 1,151 - 1,151 844 - 844
Total 43,233 844 44,077 204,328 33,218 237,546
================ ========== ========== ============== ========== ==========
Financial assets and financial liabilities are classified in
their entirety into only one of three levels.
The fair value hierarchy has the following levels:
-- Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities
-- Level 2 - inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from
prices)
-- Level 3 - inputs for the asset or liability that are not
based on observable market data (unobservable inputs).
Level 1 Level 2 Level 3
As at 30 2017 2016 2017 2016 2017 2016
June
(unaudited) US $000's US $000's US $000's US $000's US $000's US $000's
Financial
assets
Equity investments - - - - 158 162
Derivative - - - - - -
financial
assets
Total - - - - 158 162
============ ============ ============ ========= ========== ==========
US $000's US $000's US $000's US $000's US $000's US $000's
Financial
liabilities
Accruals - 27,878 - - - -
and deferred
income
Derivative
financial
liabilities 844 5,340 - - - -
Total 844 33,218 - - - -
========== ========== ========== ========== ========== ==========
6. Non-controlling interest
The non-controlling interest ("NCI") disclosed in the condensed
consolidated statement of comprehensive income and condensed
consolidated statement of financial position represents a 20%
economic interest in Cimentos da Beira ("CdB"), whose principal
asset is in Mozambique. This 20% interest is held by the Industrial
Development Corporation of South Africa Limited ("IDC") by means of
a convertible loan agreement whereby the IDC has an option to
subscribe for 20% of the issued share capital of CdB.
7. Share Capital and Share Premium
As at As at As at 31
30 June 30 June December
2017 2016 2016
Authorised Number Number Number
Ordinary shares at 1p
each 424,727,841 424,727,841 424,727,841
Deferred shares at 9p - 111,361,208 -
Called up, allotted Number US $000's
and fully paid
Ordinary shares at 1p each
At 1 January 2016 276,381,948 4,222
Shares issued 9,707,102 144
Shares cancelled (20,388,179) (303)
------------- ------------
At 31 December 2016 and 30 June
2017 (unaudited) 265,700,871 4,063
============= ============
Shares to be issued
Convertible Securities
At 1 January 2016 9,707,102 144
Shares issued (9,707,102) (144)
------------- ------------
At 31 December 2016 - -
and 30 June 2017 (unaudited)
============= ============
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BRGDCGSDBGRI
(END) Dow Jones Newswires
September 29, 2017 02:01 ET (06:01 GMT)
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