TIDMAMBR
RNS Number : 6054H
Ambrian PLC
09 June 2017
LONDON, 9 June 2017
AMBRIAN PLC
Preliminary Results for the year ended 31 December 2016
Ambrian plc ("Ambrian" or the "Company" and, together with its
subsidiaries, the "Group") today announces its audited consolidated
results for the twelve months ended 31 December 2016.
Highlights
-- First full year of production at the cement plant in Mozambique
-- Run-down of the metals trading business is nearing completion
-- Turnover of US$ 1.05 billion (2015: turnover of US$1.90 billion)
-- Gross profit of US$ 1.22 million (2015: gross loss of US$ 4.01 million)
-- Loss before interest, tax, depreciation and amortisation
("LBITDA") reduced to US$ 6.04 million (2015: LBITDA of US$
8.75)
-- Loss before tax, but before impairment charge, US$ 9.85
million (2015: loss before tax of US$ 9.36 million)
-- Loss before tax, including an impairment charge on the cement
operations of $21.29 million (2015: $nil), of US$ 31.14 million
(2015: loss before tax of US$ 9.36 million)
-- Tangible net asset value at 31 December 2016 of US$ 27.04
million (2015: US$ 50.97 million) equivalent to a tangible net
asset per share of USc 10.97 (2015: USc 20.67)
-- Total equity at 31 December 2016: US$ 29.22 million (2015: US$ 53.43 million)
Commenting on the results, Martin Abbott, non-executive
Chairman, stated:
"The metals business is being run down following the Company's
announcement in October 2016 to withdraw from the business. We
appreciate the support of all stakeholders over this period in
order to execute the contracts in an orderly way. We expect the
business to be closed by mid-year 2017 when the working capital in
the business will be converted to cash.
We are pleased with the technical performance of the cement
plant in 2016, despite the full benefits of this performance having
yet to materialise. The challenging conditions in Mozambique,
particularly as regards to adverse exchange rate movements,
punitive interest rates and sharp public spending cuts in
infrastructure, have deeply affected the construction sector.
However, we continue to believe in the long-term growth potential
of Mozambique. With an improving commodity outlook, Mozambique's
largest export sectors are now picking up. The challenge remains to
ensure that future wealth from these sectors is deployed
efficiently in other economic sectors and infrastructure projects
without corrupt practices undermining the country's efforts. We
expect improving the country's transport network and access to
power will become significant drivers of the construction sector
and hence spur demand for cement and concrete based products. "
Enquiries
Ambrian plc
+ 44 (0)20 7634
Roger Clegg 4700
Cenkos Securities
plc
+ 44 (0)20 7397
Neil McDonald 8900
Nick Tulloch
Notes to Editors
Ambrian is active is sourcing and marketing a range of
industrials metals, minerals and value added products to end users
worldwide. We pursue selective strategic acquisitions and ventures
which can demonstrate a compelling industrial, commercial and
financial justification and ultimately strengthen Ambrian's supply
chain and value added activities. Ambrian's services add the right
value at every stage of the supply chain; we plan procurement and
logistics to streamline and simplify transportation and deliver on
time commodities in the most cost efficient manner from remote
locations to wherever they are needed by our customers. Ambrian
also capitalizes on opportunities to improve margins and grow
shareholder value through diversifying into sourcing and
processing. This has enabled it to expand its business into the
manufacturing and distribution of branded cement products to the
residential and non-residential sectors in Central Mozambique.
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 and Chief Executive's statement
For the year ended 31 December 2016 the Group gross profit was
US$ 1.22 million on a turnover of US$ 1.05 billion (2015: gross
loss of US$ 4.01 million on a turnover of US$ 1.90 billion).
For the period under review EBITDA was a loss of US$ 6.04
million (2015: US$ 8.75 million loss), the loss being primarily a
function of administrative and employment costs.
Group loss before tax and impairment charge for 2016 amounted to
US$ 9.85 million (2015: loss before tax of US$ 9.36 million).
Within this, metal trading activities reported a loss before tax,
including provisions for closure, of US$ 3.97 million for the
period (2015: loss before tax of US$ 8.92 million). The cement
business reported a loss before tax and impairment charge of US$
5.73 million for the period (2015: profit before tax of US$ 0.67
million), largely attributable to interest expenses adversely
affected by punitive rates applied on local borrowings in
Mozambique. An impairment charge of US$ 21.29 million (2015: nil)
on the cement plant was incurred after an assessment by management,
considering such factors as future expected cashflows, exchange
rates, discount rates and the expected terminal value of the
plant.
Overview
2016 saw a recovery for commodities with the Bloomberg
Commodities Index (a broadly diversified commodity price index)
gaining over 10%, breaking a five-year streak of annual losses. The
recovery in industrial metals prices was supported by strong
Chinese demand and expectations of increased infrastructure spend
after the US elections. Realisation by market participants that the
fear of an oversupply in many markets was overdone was further
supported by declining inventory levels, increasing confidence that
strong demand could be sustainable. Underperforming base metals for
most of 2016, the copper market experienced a shift in sentiment
towards the end of the year.
Despite the recovery in commodity markets, the Board of
Directors concluded that the Company's capital base was not
sufficient, and its organization not adapted, to grow the metal
trading activities into a robust, diversified and scalable business
model. Accordingly, the Board of Directors decided that the
Company's metal trading activities would be wound down in an
orderly fashion and closed. Unlike capital engaged in the Company's
industrial assets, capital employed in the metal trading activities
can be released within a relatively short time span. As a result,
over the last quarter of 2016, most staff engaged in the Company's
trading and logistics operations were retrenched with a skeleton
staff retained temporarily to run down the existing contracts. All
trading activities will have been terminated and contracts closed
by mid-2017. Following the decision to close the metal trading
activities, the Company moved to smaller head office premises in
London and is closing down the offices in China, Taiwan and
Singapore.
Weak commodity prices and the anemic general trading environment
contributed to Mozambique's sharp slowdown in economic activity
over the period under review. This was further compounded by the
revelation of large undisclosed borrowings contracted by state
controlled entities, the sharp reduction in foreign direct
investments and the international community's decision to stop
supporting the country's budget deficits. Mozambique's real GDP
growth dropped to 3.3% from 6.6% in 2015 and the local currency
depreciated by up to some 40 percent against the US dollar during
2016, fuelling 25 percent inflation by the end of October 2016. The
sharp deterioration in economic conditions has had a significant
impact on households and a nascent small and medium sized business
sector. Reduced investments in real estate, construction and
financial services combined with the public sector's consolidation
and monetary tightening are also contributing to the slowdown in
growth. It is against this backdrop that our cement grinding
operations in Central Mozambique, Cimentos da Beira, completed its
first full year of operation.
The market for cement in Central Mozambique grew just under 5
percent in 2016 when compared to 2015 which is below historic
growth trends. Cement sales achieved by our subsidiary in 2016 were
lower than forecast as a result of increasing competitive pressure
combined with reduced disposable income and difficult credit
conditions affecting the local residential and nonresidential
sectors. Significantly weaker public spending on infrastructure and
delayed project execution also affected construction activities and
cement apparent consumption. Cimentos da Beira captured
approximately 18% of the Central Mozambique local cement market
estimated at around 700 thousand tonnes a year. Although below our
target market share, we refrained being drawn into aggressive
marketing tactics for the sake of increasing sales volumes.
Simultaneously to the local currency collapsing against the US
dollar, realised cement prices in US dollar equivalent were under
intense pressure throughout the year improving only marginally by
year-end having bottomed out from record lows during September
2016. More frequent and successive industry wide price increases in
local currency have yet to compensate fully for the sharp drop in
the local currency against the US dollar and allow the industry to
generate normalised cash margins which are customary in this
business.
The operating performance of the plant has not raised any
particular issues with efficiencies and usage factors improving
steadily since the plant's commissioning at the end of 2015. Our
staff in Beira are also working hard to obtain ISO 9001
accreditation for the plant which we expect to achieve before the
end of 2017. This accreditation and certification of its products
will allow Cimentos da Beira to supply cement to large public and
private projects for which accreditation is a prerequisite. Despite
constant efforts to reduce our cost base or milling at night so as
to benefit from the low tariff structure, unit costs will decrease
significantly only with the expected higher asset utilisation.
Board changes
Robert Adair who had served as Chairman and a member of the
board of directors since February 2015, resigned as a non-executive
Director of the Company. Robert decided that after steering the
company through the merger with Consolidated General Minerals plc
and the start-up of the cement plant in Mozambique it was an
opportune time to step down. We would like to thank Robert for his
valuable contribution to the Company over the last number of years
and in particular during the time running up to the merger, and
wish him well in the future. Martin Abbott was appointed as
non-executive Chairman. In December 2016, Oliver Benz was appointed
to the Board as a non-executive Director.
Outlook
It is anticipated that the metal trading business will have run
off all its positions and all staff will have been retrenched by
mid-2017. At that point, all metal trading working capital will
have been turned to cash.
The Sub-Saharan African economic outlook remains clouded despite
some encouraging news such as Mozambique's gas production prospects
that are shaping expectations for a growth recovery. With an
improving commodity outlook, Mozambique's largest exports such as
coal are beginning to show some colour. The challenge remains for
the country to ensure that future wealth from these sectors is
deployed efficiently to spur growth in the non "mega project"
sector without corrupt practices undermining such efforts. Over the
first quarter of 2017 cement demand in Central Mozambique
contracted by approximately 9% compared to the first quarter of
2016. Adverse weather conditions are only part of the explanation
as the sector continues to be affected by a high interest rate
environment, reduced liquidity and little public spending on
critical infrastructure. We remain cautiously optimistic as we
enter the second half of 2017. Demand for cement in emerging
economies customarily mirrors economic growth patterns and can be
greatly exceeded during an infrastructure expansion. We expect that
starting in 2018, projects to improve the country's derelict
transport network and access to power will become significant
drivers of the construction sector and hence spur demand for cement
and concrete based products.
Cimentos da Beira continues to consolidate its business model
and focus on improving distribution channels as well as operational
efficiencies, targeting a 30 percent market share in Central
Mozambique. Over the past year we have achieved a commercial
transformation which has resulted in our products and services
being differentiated and well received by end users despite the
competitive landscape. Combined with the strengthening of the local
currency by some 20% since the beginning of 2017, successive price
increases implemented by the industry are slowly bringing cement
price to levels customarily seen in neighboring countries. We
therefore expect that barring unforeseen circumstances, cash
margins for the industry should improve over the course of 2017.
This will be further entrenched as we attempt to source locally
approximately 30% of our raw material requirements instead of
relying on imports.
We constantly review our strategy and the necessity to protect
our capital base. This has proven to be difficult in the current
environment. Also, we are of the opinion that a one-asset publicly
quoted company is not a long term sustainable value proposition for
our stakeholders. Accordingly, we continue to assess a number of
strategies, investments and corporate transactions which we believe
could assist the Group in protecting its capital base and improve
its corporate profile.
Martin Abbott Jean-Pierre Conrad
Chairman Chief Executive
Ambrian plc
Consolidated statement of comprehensive income
for the year ended 31 December 2016
Year to 31 Year to 31
December December
2016 2015
US $ 000's US $ 000's
Turnover 1,047,187 1,897,528
Cost of Sales (1,045,970) (1,902,214)
------------ -----------------------
Net revenue 1,217 (4,686)
Investment portfolio gains - 676
------------ -----------------------
Total income 1,217 (4,010)
------------ -----------------------
Administrative expenses (7,256) (4,742)
Depreciation and impairment
expense (23,490) (435)
------------ -----------------------
Total administrative expenses (30,746) (5,177)
------------ -----------------------
Operating loss (29,529) (9,187)
Finance income 1,479 428
Finance costs (3,094) (601)
------------ -----------------------
Loss before tax (31,144) (9,360)
Taxation 6,740 2,339
------------ -----------------------
Loss after tax (24,404) (7,021)
============ =======================
Other comprehensive income
Items that may be subsequently
reclassified to profit or
(loss)
Exchange profit arising from
translation of foreign operations - 59
------------ -----------------------
Total other comprehensive
profit - 59
------------ -----------------------
Total comprehensive loss (24,404) (6,962)
============ =======================
(Loss) / profit attributable
to:
Owners of the parent (20,709) (7,324)
Non-controlling interest (3,695) 303
------------ -----------------------
(24,404) (7,021)
------------ -----------------------
Total comprehensive (loss)
/ profit attributable to:
Owners of the parent (20,709) (7,265)
Non-controlling interest (3,695) 303
------------ -----------------------
(24,404) (6,962)
------------ -----------------------
Earnings per share in USD
cents:
Basic earnings per share (8.57) (3.87)
Diluted earnings per share (8.57) (3.87)
Ambrian plc
Consolidated statement of changes in equity
for the year ended 31 December 2016
Total
equity
attributable
Shares Share to the
Share Capital Merger to Retained based Employee owner
Share premium Redemption relief be Treasury Other earnings/ 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 US US US $ US US
$ 000's 000's $ 000's $ 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
2014 17,665 18,044 - - - (1,986) - 502 8,052 (11,446) (1,626) 29,205 (58) 29,147
--------- -------- ----------- -------- -------- --------- -------- ---------- --------- --------- --------- ------------- ----------------- --------
Arising from
the business
combination
of
Consolidated
General
Minerals
(Schweiz)
AG 2,455 - - 26,066 1,477 - (5,066) - - - - 24,932 6,944 31,876
Shares issue
costs - - - (1,296) - - - - - - - (1,296) - (1,296)
Exercise
of options - - - - - - - - - 576 - 576 - 576
Redemption
of Deferred
9p shares (15,898) - 15,898 - - - - - - - - - - -
Share based
payment - - - - - - 86 - - - - 86 - 86
Comprehensive
income
Profit /
(Loss) for
the year - - - - - - - (7,324) - - - (7,324) 303 (7,021)
Foreign
currency
adjustments - - - - - - - - - - 59 59 - 59
--------- -------- ----------- -------- -------- --------- -------- ---------- --------- --------- --------- ------------- ----------------- --------
Total
comprehensive
income/(loss)
for the year - - - - - - - (7,324) - - 59 (7,265) 303 (6,962)
--------- -------- ----------- -------- -------- --------- -------- ---------- --------- --------- --------- ------------- ----------------- --------
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
--------- -------- ----------- -------- -------- --------- -------- ---------- --------- --------- --------- ------------- ----------------- --------
Ambrian plc
Consolidated statement of changes in equity
for the year ended 31 December 2016 (continued)
Total
equity
attributable
Shares Share to the
Share Capital Merger to Retained based Employee owner
Share premium Redemption relief be Treasury Other earnings/ 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 US US US $ US US
$ 000's 000's $ 000's $ 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
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
Comprehensive
loss
Loss for
the year - - - - - - - (20,709) - - - (20,709) (3,695) (24,404)
-------- -------- ----------- -------- -------- --------- -------- ---------- --------- --------- --------- ------------- ----------------- ---------
Total
comprehensive
loss for
the year - - - - - - - (20,709) - - - (20,709) (3,695) (24,404)
-------- -------- ----------- -------- -------- --------- -------- ---------- --------- --------- --------- ------------- ----------------- ---------
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
======== ======== =========== ======== ======== ========= ======== ========== ========= ========= ========= ============= ================= =========
Ambrian plc
Consolidated statement of financial position
at 31 December 2016
Year to 31 Year to 31
December 2016 December 2015
ASSETS US $ 000's US $ 000's
Non-current assets
Property, plant and equipment 54,217 76,036
Deferred tax asset 2,184 2,459
-------------------------- -----------------------------
56,401 78,495
Current assets
Financial assets at fair
value through profit or loss 150 7,495
Inventory 156,215 262,541
Trade and other receivables 64,107 60,083
Current tax receivable - 250
Cash and cash equivalents 6,693 9,823
-------------------------- -----------------------------
Total assets 283,566 418,687
LIABILITIES
Non-current liabilities
Long-term borrowings (915) (21,376)
Deferred tax liability (558) (7,554)
-------------------------- -----------------------------
(1,473) (28,930)
Current liabilities
Financial liabilities at
fair value through profit
or loss (6,074) (2,675)
Short-term borrowings (171,448) (225,219)
Short-term liabilities under
sale and repurchase agreements (2,667) (43,745)
Trade and other payables (72,342) (64,691)
Provisions (323) -
Current tax payable (19) -
-------------------------- -----------------------------
Total liabilities (254,346) (365,260)
Total net assets 29,220 53,427
========================== =============================
Ambrian plc
Consolidated statement of financial position
at 31 December 2016 (continued)
Year to 31 December 2016 Year to 31 December 2015
Capital and reserves
Share capital 4,063 4,222
Share premium 19,578 18,044
Capital Redemption reserve 15,898 15,898
Merger relief reserve 24,770 24,770
Shares to be issued - 1,477
Treasury shares (1,986) (1,986)
Other reserve (4,688) (4,980)
Retained (losses)/earnings (27,531) (6,822)
Employee benefit trust (10,863) (10,870)
Share-based payments reserve 8,052 8,052
Exchange reserve (1,567) (1,567)
Total equity attributable to the owner of the parent 25,726 46,238
Non-controlling interest 3,494 7,189
Total equity 29,220 53,427
========================= =========================
Ambrian plc
Consolidated statement of cashflows
for the year ended 31 December 2016
Year to Year
31 to 31
December December
2016 2015
US $ 000's US $
000's
Loss for the year (24,404) (7,021)
Adjustments for:
Depreciation of property, plant and equipment 2,204 435
Finance costs 3,094 601
Impairment of property, plant and equipment 21,286 -
Share-based payment expense 190 72
Foreign exchange losses/(gains) 72 (825)
Taxation expense (6,740) (2,339)
Realised gain on financial assets designated
at fair value - (676)
Decrease in inventories 106,326 67,004
(Increase)/decrease in trade and other
receivables (4,024) 22,377
Unrealised gains/(losses) on financial
liabilities at fair value 3,399 (428)
Unrealised gains on financial assets
at fair value 7,345 11,115
Increase in trade and other payables 7,974 12,545
----------- ----------
Cash generated in operations 116,722 102,860
Taxation received/(paid) 288 (362)
Net cash flow generated in operating
activities 117,010 102,498
----------- ----------
Investing activities
Net cash from acquisition of subsidiary
undertakings - 424
Purchase of property, plant and equipment (1,671) (8,955)
Net cash used in investing activities (1,671) (8,531)
----------- ----------
Financing activities
Share issue costs - (1,296)
Interest paid (2,851) (601)
Proceeds from issue of convertible loan
notes - 4,121
Proceeds received from the exercise of
options in Employee Benefit Trust - 576
Decrease in long-term borrowings - (4,793)
Decrease in short-term liabilities under
sale and repurchase agreements (41,078) (1,956)
Decrease in short-term borrowings (74,475) (89,846)
Net cash (used)/generated in financing
activities (118,404) (93,795)
----------- ----------
Net (decrease)/increase in cash and cash
equivalents (3,065) 172
Cash and cash equivalents at the beginning
of the year 9,823 9,661
Effect of foreign exchange rate differences
on cash and cash equivalents (65) (10)
Cash and cash equivalents at the end
of the year 6,693 9,823
=========== ==========
1. Basis of preparation
The financial information set out in this announcement does not
constitute the Group's statutory accounts for the year ended 31
December 2016 or 2015 but is derived from those accounts. Statutory
accounts for the 2015 have been delivered to the Registrar of the
Companies, and those for 2016 will be delivered in due course.
The auditors have reported on those accounts; their reports were
(i) unqualified, (ii) did not include a reference to any matters to
which the auditors drew attention by way of emphasis without
qualifying their report and (iii) did not contain statements under
section 498 (2) or (3) of the Companies Act 2006. The results for
the year ended 31 December 2016 were approved by the Board of
Directors on 8 June 2017 and are audited.
While the financial information included in this preliminary
announcement has been prepared in accordance with the recognition
and measurement criteria of international Financial Reporting
Standards (IFRS's) as endorsed for use in the European Union, this
announcement does not itself contain sufficient information to
comply with IFRS's. The accounting policies adopted in this
announcement have been consistently applied and are consistent with
the policies used in the preparation of the statutory accounts for
the period ending 31 December 2016.
The consolidated financial statements of the Group have been
prepared in accordance with the Companies Act 2006 and
International Financial Reporting Standards (IFRS) as developed and
published by the International Accounting Standards Board (IASB) as
adopted by the European Union (EU).
Presentational currency
The financial statements have been presented in US Dollars which
is the functional currency of the company.
2. Segmental analysis
The Group has three reportable segments attributable to its
continuing operations including Head office:
-- Physical metals and minerals trading
-- Cement operations
-- Head office costs relate to overheads incurred in connection
with operating the public limited company, providing support
functions to the Group.
The Investment portfolio segment has become insignificant during
the year but is shown for comparative purposes. The measurement of
the segmental revenue, profit before tax, capital expenditure,
depreciation, total assets, total liabilities and net assets have
been prepared using consistent accounting policies across the
segments.
Factors that management used to identify the Group's reportable
segments
The Group's reportable segments are strategic business units
that offer different products and services. They are managed
separately because each business requires different strategies.
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker.
The chief operating decision-maker has been identified as the
management team including the Chief Executive, Chief Operating
Officer and the Finance Director.
Cement Investment
Trading Operations Portfolio Head office costs Total
2016 2016 2016 2016 2016
US $ 000's 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 (1,628) (1,063) - (30) (2,721)
Employment costs (2,455) (1,012) - (1,068) (4,535)
------------ ------------ ----------- ------------------
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)
============
2015 2015 2015 2015 2015
US $ 000's US $ 000's US $ 000's US $ 000's US $ 000's
Turnover 1,895,451 2,077 - - 1,897,528
Cost of Sales (1,900,327) (1,887) - - (1,902,214)
Revenue - - 676 - 676
------------ ------------ ----------- ------------------ ------------
Gross margin (4,876) 190 676 - (4,010)
Administrative expenses (1,753) 1,406 - (1,087) (1,434)
Employment costs (2,196) (37) - (1,075) (3,308)
------------ ------------ ----------- ------------------
EBITDA (8,825) 1,559 676 (2,162) (8,752)
============ ============ =========== ==================
Depreciation and impairment
expense (435)
Finance income 428
Finance cost (601)
------------
Loss before tax (9,360)
============
Year to 31 December Year to 31 December
2016 2015
US $ 000's US $ 000's
Loss before tax
Trading (3,977) (8,917)
Cement operations (27,024) 669
Investment portfolio - 676
Head office costs (143) (1,788)
(31,144) (9,360)
==================== ====================
Geographical split of Total income for the Group where > 10% per region
Year to 31 December 2016 Year to 31 December 2015
US $ 000's US $ 000's
Turnover Turnover
Eastern Asia 535,923 1,035,593
Western Asia 313,312 533,706
Other 197,952 328,229
Major customers of the Group where individually >10% of Total income
Year to 31 December 2016 Year to 31 December 2015
US $ 000's US $ 000's
Customer Customer
Customer A (attributable to Trading segment) 97,387 302,002
Other 949,800 1,595,526
Year to 31 December 2016 Year to 31 December 2015
US $ 000's US $ 000's
Investment portfolio losses represents:
Unrealised gains on financial assets
designated at fair value - 676
- 676
==================================================================== =========================
Year to 31 December 2016 Year to 31 December 2015
US $ 000's US $ 000's
Depreciation and impairment expense:
Trading 294 93
Cement operations 23,196 342
Investment portfolio - -
Head office - -
23,490 435
========================= =========================
Year to 31 December 2016 Year to 31 December 2015
US $ 000's US $ 000's
Non-current assets by country:
Mozambique 56,285 76,161
United Kingdom 109 2,328
China 7 6
56,401 78,495
========================= =========================
As at 31 December 2016 As at 31 December 2015
US $ 000's US $ 000's
Total assets
Trading 219,869 336,194
Cement operations 63,237 82,170
Investment portfolio 150 179
Head office 310 144
----------------------- -----------------------
283,566 418,687
======================= =======================
Total liabilities
Trading 217,034 322,863
Cement operations 35,437 28,538
Investment portfolio - -
Head office 1,875 3,859
----------------------- -----------------------
254,346 365,260
======================= =======================
3. Earnings per ordinary 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 at 31 December
2016 of 6,259,046 (2015: 6,259,046), Treasury shares at 31 December
2016 of 4,500,058 (2015: 4,500,058) and Non-treasury shares at 31
December 2016 of 8,484,467 (2015: 28,812,192).
The calculation of diluted earnings per share is based on the
basic earnings per share adjusted to allow for the issue of shares
through the share option schemes on the assumed conversion of all
dilutive options.
Reconciliations of the earnings and weighted average number of
shares in the calculations are set out below. Diluted earnings per
share has not been calculated as the Company is loss making. The
loss attributable to the owners of the Company used in the
calculation below is that presented in the consolidated statement
of comprehensive income.
Year to 31 December 2016 Year to 31 December 2015
US $ 000's US $ 000's
Loss attributable to shareholders (20,709) (7,324)
Diluted loss attributable to shareholders (20,709) (7,324)
Weighted average number of shares 241,673,620 189,044,366
Dilutive effect of convertible loan notes and warrants 66,675,000 66,675,000
Basic earnings per share US $ cents (8.57) (3.87)
Diluted earnings per share US $ cents (8.57) (3.87)
4. Non-controlling interest
The non-controlling interest ("NCI") disclosed in the
consolidated statement of comprehensive income and consolidated
statement of financial position at 31 December 2016 is represented
by
Names of entity with NCI Cimentos da Beira Limitada
Principal place of business
of subsidiary Beira, Mozambique
2016 2015
Proportion of ownership held
by NCI 20% 20%
Proportion of voting rights
held by NCI 0% 0%
(Loss)/profit attributed to
NCI in US $ 000's (3,695) 252
Accumulated NCI value at in
US $ 000's 3,494 7,197
Dividends paid to NCI - -
US $ 000's US $ 000s
Non-current assets 55,518 75,394
Current assets 6,868 5,983
Non-current liabilities - (20,496)
Current liabilities (37,944) (21,068)
Turnover 10,012 2,077
(Loss)/profit for the year (18,474) 1,263
Total comprehensive income
for the year (18,474) 1,263
The 20% economic interest in Cimentos da Beira ("CdB"), 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 following the repayment of the IDC loans by CdB. The IDC has a
right to 20% of any dividends declared by CdB until such time that
it holds no financial interest in CdB.
There is a 20% minority interest in Ambrian Resources AG held by
shareholders other than Ambrian plc.
5. Metals Trading Business
In October 2016, the Group decided to close the metals trading
business with a gradual run-down of all open contracts. The segment
was not technically a discontinued operation or classified as
held-of-sale at 31 December 2016 and therefore no reclassifications
have been made in the financial statements. The disclosure below
shows the statement of comprehensive income of the metals trading
business included in the consolidated statement of comprehensive
income.
Year to 31 December Year to 31 December
2016 2015
US $ 000's US $ 000's
Turnover 1,037,175 1,895,451
Cost of Sales (1,036,773) (1,900,327)
------------ --------------------
Net revenue 402 (4,876)
Administrative expenses (4,378) (4,041)
------------ --------------------
Operating loss (3,976) (8,917)
Finance income - -
Finance costs - -
------------ --------------------
Loss before tax (3,976) (8,917)
Taxation (1,964) 1,843
------------ --------------------
Loss for the year (5,940) (7,074)
============ ====================
The loss from the metals trading business of $5,940,000
(2015: $7,074,000) is attributable entirely to the
owners of the Company. Once the metals trading business
has been run-down, the financial position of the
Group should be as follows: As at 31 December
2016
ASSETS US $ 000's
Non-current assets
Property, plant and equipment 54,102
Deferred tax asset 2,184
------------------
56,286
Current assets
Inventory 2,997
Trade and other receivables 3,513
Cash and cash equivalents 3,692
------------------
Total assets 66,488
LIABILITIES
Non-current liabilities
Long-term borrowings (915)
Deferred tax liability (558)
------------------
(1,473)
Current liabilities
Financial liabilities at fair value
through profit or loss (801)
Short-term borrowings (29,053)
Trade and other payables (5,920)
Current tax payable (21)
------------------
Total liabilities (37,268)
Total net assets 29,220
==================
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FPMMTMBIMTMR
(END) Dow Jones Newswires
June 09, 2017 02:00 ET (06:00 GMT)
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