Z IMPLOW HOLDINGS LI MIT ED C ONDENS ED A UDIT ED RES ULT S FOR T HE YEAR E NDED 31 DEC EMBE R 20 13 DIRECTORS : Z .L R usike (Chairman), Z. Kumwenda* (CEO), P. S t L . Devenish, T .M Johnson, A. Kurauone, G.TManhambara, S. Mngomezulu, E. Mlambo, T. Moyo, N. Nhira, F. Rwakonda* (*Executive) Condensed Statement of Prot or Loss and Other Comprehensive Income for the year ended Notes Group Company 31 DEC 2013 31 DEC 2012 31 DEC 2013 31 DEC 2012 CONTINUING OPERATIONS US$ US$ US$ US$ Revenue 39,873,980 29,708,820 10,294,087 12,129,592 Operating prot 348,806 2,364,484 405,443 1,427,058 Other Adminstrative expenses - - (396,373) - Restructuring expenses (572,668) (1,941,388) (170,024) (1,045,644) Gain / (loss) on disposal of subsidiaries 2.3 1,394,548 - (419,451) - Fair value gain / (loss)on investmen t property 1,239,136 (90,000) - - Share of loss rom joint venture (82,672) (11,023) - - Prot / (loss) before interest and tax 2,327,150 322,073 (580,405) 381,414 Finance income 345,255 277,551 655,441 105,488 Finance costs (956,508) (680,284) (73,357) (297,851) Prot / (loss) before tax 1,715,897 (80,660) 1,679 189,051 Taxation (82,392) (265,481) (18,811) (277,499) Prot / (loss ) after tax from continuing operations 1, 633, 505 (346, 14 1) (1 7,132) ( 8 8, 44 8) Discontinued operations Loss after tax for the year from discontinued operations (801,070) (659,035) (173,722) ( 47,113) Prot / (loss) for the year 832,435 (1,005,176) (190,854) (135,561) Other comprehensive income Items that will be reclassied to prot or loss Gain on avalaible for sale nancial assets (AFS) 63,318 2,475 63,318 2,475 Exhange differences on translating foreign operations (165,961) (69,873) - - Income tax relating to ite ms that will be reclassied subsequently (9,429) (371) (9,429) (371) Items that will not be reclassied to prot or loss Gain on revaluation of properties - 2,615,176 - 1,953,954 Income tax relating to items that will not be reclassied to prot or loss - (631,412) - (498,031) Other comprehensive (loss) / income for the year, net of tax (112,072) 1,915,995 53,889 1,458,027 Total comprehensive income / (loss) for the period 720,363 910,819 (136,965) 1,322,466 Prot / (loss) attributable to: Owners of the parent entity 497,900 (812,754) (190,854) (135,561) Non controlling interests 334,535 (192,422) - - 832,435 (1,005,176) (190,854) (135,561) Total comprehensive income / (loss) attributable to: Owners of the parent entity 466,703 705,972 (136,965) 1,322,466 Non controlling interests 253,660 204,847 - - 720,363 910,819 ( 136,965) 1,322,466 Earning / (loss) per share From continuing and discontinued operations Basic (cents) 0,001 (0,002) (0,003) (0,0003) Diluted (cents) (0,001) (0,002) (0,003) (0,0003) Condensed Statement Of Cashows for the year ended Group Company 31 DEC 2013 31 DEC 2012 31 DEC 2013 31 DEC 2012 US$ US$ US$ US$ CASH FLOWS FROM OPERATING ACTIVITIES Operating prot / (loss) before tax from continuing operations 2,327,150 (126,960) (580,405) 354,551 Op er at ing loss fr om di sc on t in u ed ope ra t ions (1,037, 71 1) (905,783) ( 17 3,722) (47 ,1 13) 1,289,439 (1,032,743) (754,127) 307,438 Non cash items (1,005,538) 1,121,589 953,644 120,598 Working capital changes 265,341 (1,258,496) (7,890,447) (950,759) Cash inow / (out ow) fr om op e ra ti ng acti vi ti es 5 49 , 242 ( 1, 169,650) (7,690,930) ( 52 2, 71 3) Taxation paid (924,988) (683,334) (277,298) (463,420) Net nance (costs) / income (611,253) (730,649) 582,084 (192,248) Net cas h outow from oper ating act ivities (986 ,999) (2,583, 633) (7,386, 144) (1,178,3 81) CASH FLOWS FROM INVESTING ACTIVITIES Acqusition of plant and equipment (557,483) (351,074) (309,719) (137,555) Increase in long term advances - (926) - - Pr ocee ds fr om di spos al of pl an t an d eq ui pmen t 35,458 5 1, 92 9 22,767 40 0 Net cash outow on acquisition of subsid iary - (9,2 89,198) - (9,737,967) Acqisition of additional interest in subsidiary - - (3,374,495) - Net cash ino w / (out o w) on di spos al of su b si diary 422 ,5 23 - ( 77 ,4 77) - Net cash invested (99,502) (9,589,269) (3,738,924) (9,875,122) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of equity instruments of the company - 11 ,2 09 ,2 54 - 11,20 9, 25 4 Proceeds from borrowings 8,018,569 621,831 8,000,000 - Repayment of borrowings (5,723,803) - (110,190) - Acquisit ion of non-c ontrolling interests (3,374,495) - - - Share issue costs - (346,320) - (346,321) Dividend paid to owners of the com pany - (907,950) - (907,950) Net cas h ( out ow) / ino w f rom nan cing acti vit ies (1, 079, 729 ) 10,576,815 7,889,810 9,954,983 (Decrease) in cash and cash equivalents (2,166,230) (1,596,087) (3,235,258) (1,098,520) Ca sh and cash e qu i va len ts at the begi n ni ng of th e y ea r 2 ,2 85, 715 3, 947, 912 2, 339, 481 3, 438 ,0 01 Effects of exchange rate changes on the balance of cash held in foreign operations (21,225) (66,110) - - Cash and cash equi valents at the end of the year 98, 260 2 ,2 85 , 715 (895,77 7) 2,3 39,48 1 Operating cashow per share 0.002 (0.01) (0.0014) (0.01) Condensed Statement Of Financial Position as at Group Company 31 DEC 2013 31 DEC 2012 31 DEC 2013 31 DEC 2012 US$ US$ US$ US$ ASSETS Non current assets 19,419,946 21,670,306 21,759,098 15,034,050 Property, plant and equipment 13,469,288 14,952,286 4,319,979 4,593,130 Investment property 2,975,000 4,500,000 - - Investment in subsidiaries - - 16,910,950 10,290,469 Investment in joint venture 81,806 164,478 - - Other non current assets 2,893,852 2,053,542 528,169 150,451 Current assets 27,151,205 31,231,653 19,930,974 12,058,500 Assets classied as held for sale 3,500,000 - - - TOTAL ASSETS 50,071,151 52,901,959 41,690,072 27,092,550 EQUITY AND LIABILITIES Equity attributable to owners of the parent 27,429,365 24,316,977 27,884,791 24,775,610 Non-controlling interest 3,508,276 9,522,812 - - Total Equity 30,937,641 33,839,789 27,884,791 24,775,610 Non current liabilities 4,237,979 3,402,276 2,046,325 1,122,931 Deferred tax 3,121,494 3,384,251 966,434 1,122,931 Long term borrowings 1,116,485 18,025 1,079,891 - Current liabilities 14,895,531 15,659,894 11,758,956 1,194,009 Short term borrowings 6,849,060 5,671,323 6,809,919 - Bank overdraft 3,770,548 - 3,755,176 - Other current liabilities 4,275,923 9,988,571 1,193,861 1,194,009 TOTAL EQUITY AND LIABILITIES 50,071,151 52,901,959 41,690,072 27,092,550 Supplementary Information Group 31 DEC 2013 31 DEC 2012 SHARE DATA Shares in issue 622,717,525 560,462,713 Weighted average number of ordinary shares in issue: For the purpose of basic earnings per share 622,717,525 336,277,628 Add dilutive impact of shares - - For the purposes of diluted earnings / (loss) per share 622,717,525 336,277,628 Earnings for the purpose of basic and diluted earnings per share from continuing operations 1,633,505 (346,141) Earnings for the purpose of basic and diluted earnings per share from discontinued operations (801,070) (659,035) Tot al earnin gs attri butab le to ordin ary equity holde rs of the parent 832,435 (1,005 ,176) Earnings / (loss) per share from continuing and discontinued operations Basic earnings / (loss) per share(US$) 0.001 (0.003) Diluted earnings / (loss) per share(US$) 0.001 (0.003) COMMITMENTS FOR CAPITAL EXPENDITURE Authorised and contracted for 1,632,833 942,055 Authorised and not yet contracted for - - 1,632,833 942,055 DEPRECIATION 842,520 626,302 TAXATION CHARGE Current 707,011 401,483 Deferred income tax (624,619) (136,362) 82,392 265,481 Fair value gain on available for sale nancial assets (9,429) (371) 72,963 265,110
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8122019 ZIMW Audited Results for FY Ended 31 Dec 13
httpslidepdfcomreaderfullzimw-audited-results-for-fy-ended-31-dec-13 13
ZIMPLOW HOLDINGS LIMITED
CONDENSED AUDITED RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2013
DIRECTORS ZL Rusike (Chairman) Z Kumwenda (CEO) P St L Devenish TM Johnson A Kurauone GTManhambara S Mngomezulu E Mlambo T Moyo N Nhira F Rwakonda (Executive)
Condensed Statement of Pro1047297t or Loss and
Other Comprehensive Income for the yearended
Notes Group Company
31 DEC 2013 31 DEC 2012 31 DEC 2013 31 DEC 2012
CONTINUING OPERATIONS US$ US$ US$ US$
Revenue 39873980 29708820 10294087 12129592
Operating pro1047297t 348806 2364484 405443 1427058
Other Adminstrative expenses - - (396373) -
Restructuring expenses (572668) (1941388) (170024) (1045644)
Gain (loss) on disposal of subsidiaries 23 1394548 - (419451) -
Fair value gain (loss)on investment property 1239136 (90000) - -
Share of loss rom joint venture (82672) (11023) - -
Pro1047297t (loss) before interest and tax 2327150 322073 (580405) 381414
Finance income 345255 277551 655441 105488
Finance costs (956508) (680284) (73357) (297851)
Pro1047297t (loss) before tax 1715897 (80660) 1679 189051
Taxation (82392) (265481) (18811) (277499)
Pro1047297t (loss ) after tax from continuingoperations
1 6 33 5 05 ( 34 6 14 1) (1 7 13 2) (8 8 44 8)
Discontinued operations
Loss after tax for the year from discontinuedoperations (801070) (659035) (173722) (47113)
Pro1047297t (loss) for the year 832435 (1005176) (190854) (135561)
Other comprehensive income
Items that will be reclassi1047297ed to pro1047297t or loss
Gain on avalaible for sale 1047297nancial assets(AFS) 63318 2475 63318 2475
Exhange differences on translating foreignoperations (165961) (69873) - -
Income tax relating to items that will bereclassi1047297ed subsequently (9429) (371) (9429) (371)
Items that will not be reclassi1047297ed to pro1047297t or
loss
Gain on revaluation of properties - 2615176 - 1953954
Income tax relating to items that will not bereclassi1047297ed to pro1047297t or loss
- (631412) - (498031)
Other comprehensive (loss) income for theyear net of tax (112072) 1915995 53889 1458027
Total comprehensive income (loss) forthe period 720363 910819 (136965) 1322466
Pro1047297t (loss) attributable to
Owners of the parent entity 497900 (812754) (190854) (135561)
Non controlling interests 334535 (192422) - -
832435 (1005176) (190854) (135561)
Total comprehensive income (loss)
attributable to
Owners of the parent entity 466703 705972 (136965) 1322466
Non controlling interests 253660 204847 - -720363 910819 (136965) 1322466
Earning (loss) per share
From continuing and discontinuedoperations
Basic (cents) 0001 (0002) (0003) (00003)
Diluted (cents) (0001) (0002) (0003) (00003)
Condensed Statement Of Cash1047298ows for the year
ended
Group Company
31 DEC 2013 31 DEC 2012 31 DEC 2013 31 DEC 2012
US$ US$ US$ US$
CASH FLOWS FROM OPERATING ACTIVITIES
Operating pro1047297t (loss) before tax from continuingoperations 2327150 (126960) (580405) 354551
Operating loss from discontinued operations (1037711) (905783) (173722) (47113)
1289439 (1032743) (754127) 307438
Non cash items (1005538) 1121589 953644 120598
Working capital changes 265341 (1258496) (7890447) (950759)
C as h i n1047298 ow ( ou t1047298 ow ) f ro m o pe ra ti ng a ct iv it ie s 5 49 2 42 ( 1 16 9 65 0) ( 7 69 0 93 0) ( 52 2 71 3)
Taxation paid (924988) (683334) (277298) (463420)
Net 1047297nance (costs) income (611253) (730649) 582084 (192248)
Net ca sh out1047298ow from ope rating ac tivities (986 999) (2583 633) (7386 144) (11783 81)
CASH FLOWS FROM INVESTING ACTIVITIES
Acqusition of plant and equipment (557483) (351074) (309719) (137555)
Increase in long term advances - (926) - -
P ro ce ed s f ro m d is po sa l o f p la nt a nd e qu ip me nt 3 545 8 5 192 9 2 276 7 4 00
Net cash out1047298ow on acquisition of subsi diary - (9 289198) - (9737967)
Acqisition of additional interest in subsidiary - - (3374495) -
Net cash in1047298ow (out1047298ow) on disposal of subsidiary 422523 - (77477) -
Net cash invested (99502) (9589269) (3738924) (9875122)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of equity instruments of thecompany
- 1 1 20 9 254 - 11 2 09 2 54
Proceeds from borrowings 8018569 621831 8000000 -
Repayment of borrowings (5723803) - (110190) -
Acquisi tion of non- controlling interests (3374495) - - -
Share issue costs - (346320) - (346321)
Dividend paid to owners of the com pany - (907950) - (907950)
Net cash (out1047298ow) in1047298ow from 1047297nancing activities (1079729) 10576815 7889810 9954983
(Decrease) in cash and cash equivalents (2166230) (1596087) (3235258) (1098520)
Cash and cash equivalents at the beginning of the year 2285715 3947912 2339481 3438001
Effects of exchange rate changes on the balance of cashheld in foreign operations (21225) (66110) - -
Cash and cash equivalents at the end of the year 98260 2285715 (895777) 2339481
Operating cash1047298ow per share 0002 (001) (00014) (001)
Condensed Statement Of Financial Position as at Group Company
31 DEC 2013 31 DEC 2012 31 DEC 2013 31 DEC 2012
US$ US$ US$ US$
ASSETS
Non current assets 19419946 21670306 21759098 15034050
Property plant and equipment 13469288 14952286 4319979 4593130
Investment property 2975000 4500000 - -
Investment in subsidiaries - - 16910950 10290469
Investment in joint venture 81806 164478 - -
Other non current assets 2893852 2053542 528169 150451
Current assets 27151205 31231653 19930974 12058500
Assets classi1047297ed as held for sale 3500000 - - -
TOTAL ASSETS 50071151 52901959 41690072 27092550
EQUITY AND LIABILITIES
Equity attributable to owners of the parent 27429365 24316977 27884791 24775610
Non-controlling interest 3508276 9522812 - -
Total Equity 30937641 33839789 27884791 24775610
Non current liabilities 4237979 3402276 2046325 1122931
Deferred tax 3121494 3384251 966434 1122931
Long term borrowings 1116485 18025 1079891 -
Current liabilities 14895531 15659894 11758956 1194009
Short term borrowings 6849060 5671323 6809919 -
Bank overdraft 3770548 - 3755176 -
Other current liabilities 4275923 9988571 1193861 1194009
TOTAL EQUITY AND LIABILITIES 50071151 52901959 41690072 27092550
Supplementary Information Group
31 DEC 2013 31 DEC 2012
SHARE DATA
Shares in issue 622717525 560462713
Weighted average number of ordinary shares in issue
For the purpose of basic earnings per share 622717525 336277628
Add dilutive impact of shares - -
For the purposes of diluted earnings (loss) pershare
622717525 336277628
Earnings for the purpose of basic and dilutedearnings per share from continuing operations 1633505 (346141)
Earnings for the purpose of basic and dilutedearnings per share from discontinued operations (801070) (659035)
Total earnings attributable to ordinary equity holders of the parent 832435 (1005176)
Earnings (loss) per share from continuing and discontinued operations
Basic earnings (loss) per share(US$) 0001 (0003)
Diluted earnings (loss) per share(US$) 0001 (0003)
COMMITMENTS FOR CAPITAL EXPENDITURE
Authorised and contracted for 1632833 942055
Authorised and not yet contracted for - -
1632833 942055
DEPRECIATION 842520 626302
TAXATION CHARGE
Current 707011 401483
Deferred income tax (624619) (136362)
82392 265481
Fair value gain on available for sale 1047297nancial assets (9429) (371)
72963 265110
8122019 ZIMW Audited Results for FY Ended 31 Dec 13
httpslidepdfcomreaderfullzimw-audited-results-for-fy-ended-31-dec-13 23
ZIMPLOW HOLDINGS LIMITED
CONDENSED AUDITED RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2013
DIRECTORS ZL Rusike (Chairman) Z Kumwenda (CEO) P St L Devenish TM Johnson A Kurauone GTManhambara S Mngomezulu E Mlambo T Moyo N Nhira F Rwakonda (Executive)
Group Statement Of Changes In EquityFor the year ended 31 December 2013
Company Statement Of Changes In EquityFor the year ended 31 December 2013
Share CapitalCapitalReserve
SharePremium
RevaluationReserve
Available ForSale Reserve
Change inOwnership
Reserve
ForeignCurrency
TranslationReserve
RetainedEarnings
Share BasedPayment
AttributableTo Owners Of
The Parent
Noncontrolling
interestsTotal
US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$
B al ance at 1 J an ua ry 2 01 2 32 7 16 7 0 36 1 74 5 52 3 33 - 76 4 96 - (6 9 06 5) 6 16 1 94 5 (6 5 40 0) 1 3 72 5 19 9 5 12 63 3 14 2 37 8 32
Loss for the year - - - - - - (812754) - (812754) (192422) (1005176)
Other comprehensive income - - - 1744747 2104 - (35703) - - 1711148 204847 1915995
Payment of dividend - - - - - - - (907950) - (907950) - (907950)
Share based payment transaction - - - - - - - - (261600) (261600) - (261600)
Issue of ordinary shares 23330 - 11185924 - - - - - - 11209254 - 11209254
Non controlling interest from acquisitionof TPH - - - - - - -
- - - 8997754 8997754
Share issue costs - - (346320) - - - - - - (346320) - (346320)
Balance on 31 D ecember 2012 56046 7036174 11391937 1744747 78600 - ( 104768) 4441241 ( 327000) 24316977 9522812 33839789
Prior period restatement - - - - - - 12308 - - 12308 - 12308
Pro1047297t for the year - - - - - - 497900 - 497900 334535 832435
Other comprehensive income (loss) - - - - 53889 - (85086) - - ( 31197) ( 80875) (112072)
Issue of ordinary shares 6225 - 3239921 - - - - - - 3246146 - 3246146
Acquisition of additional interest insubsidiary
- - - - - (102336) - - - (102336) (6268196) (6370532)
Equity related to amalgamation of groupassets
- (1777983) - 187692 - - - 1079858 - (510433) - (510433)
B al ance at 3 1 D ece mb er 2 01 3 62 2 71 5 2 58 1 91 1 4 63 1 85 7 1 93 2 43 9 13 2 48 9 ( 10 2 33 6) (1 77 54 6) 6 01 8 99 9 (3 27 00 0) 2 7 42 9 36 5 3 50 8 27 6 30 9 37 6 41
INTRODUCTION
On both the economic and business fronts a number of signi1047297cant events occurred in 2013 Demand was severely constrained
due to a ldquowait and seerdquo attitude prevailing in the few months leading up to the elections Liquidity constraints added to business
woes along with reduction in demand as businesses and individ uals struggled to meet debt repayment targets Capaci ty utilisation
declined unit costs of produc tion have risen and de1047298ation has become a serious threat to business The absence of any meaningful
direct foreign investment has exacerbated the problems facing the economy
Despite these distractions which have demanded inordinate amounts of management time I am pleased to report that your Board
has managed to fully restructure the Group into areas that were originally and strategical ly intended In the process hard decisions
that resulted in some units being disposed had to be undertaken Although this was a painful exerci se as re1047298ected in the 1047297nancials
it was a necessary step to ensure that the remaining units wil l be sustainable and pro1047297tab le for the longer term We took these
challenges and dealt with them in a decisive manner in line with the extreme volatility that existed in the market place
OPERATIONAL REVIEW
Agriculture
Implements volumes sold by the animal traction business units had a total decline of 15 from prior year with the main reduction
being recorded on export volumes Local volumes had shown a strong recovery during October but tailed off quite dramatically
during the latter parts of November and the whole of December 2013 Low liquidity levels and reduced donor activities were the
main causes of the decline Regional sales decreased but the reduction was tempered by a 43 volume increase in the South African
subsidiary
Spares recorded a 39 increase in the local market but had an overall decrease of 5 from last year in volumes due to a sharp decline
in the export of parts Clearly the competition from the Far East on these businesses was strong and based purely on price
Tractor Sales were lower than last year due to a deliberate change in the business model from a credit to cash or near cash model
Management took this position to arrest the growing debt and non-performing debtors in these units This move resulted in a
signi1047297cant reduction in the debtors book of these units by the end of December
Activity in the workshops was very low recording a 41 decline Tight liquidity positions experienced by many f armers reduced their
ability to have their equipment serviced A reasonable performance in parts sales conversely was experienced
Mining Construction and Power
Whole goods equipment sales at Barzem were up by 38 compared to prior year mainly attributed to good generator set sales
Most of the sales occurred in the 1047297rst half of the year and when it became apparent that the liquidity position was worsening in the
country management changed the model to cash and that reduced activity thereafter
Workshop activity was also very low recording a decline of 43 from prior year A decline in the traditional exported labour to
Mozambique and the DRC contributed to this decreaseParts turnover was down by 12 compared to prior year due to stricter credit control measures
Fasteners
The business unit recorded a decline of 16 in total volumes f rom prior year The shrinking economy has created arbitrage
opportunities for small traders with very low overheads to enter the market where barriers to entry are weak especially with porous
borders allowing imports to pass through without the additional cost of duty Management is taking steps to respond to the
changing market conditions
FINANCIAL REVIEW
The Group recorded revenue of USD 39873980 against USD 29708820 in prior year an increase of 34 albeit from a lower base
as Tractive Power Holdings was effectivel y acquired on 1 July 2012 The Group ended with a pro1047297t before tax of USD 17158 97
resulting princi pally from the net gain on the disposals of Puzey and Payne and Tassburg of USD 1394548 A further non-recurring
charge of USD 572668 was incurred during the year to 1047297nalise the restructuring of the group
Operating pro1047297t was weighed down by continued pressure on margins in our exports liquidity and cash1047298ow constraints affecting
our customers resulting in signi1047297cant provisions for doubtful debts
Cash from operating activities improved from an out1047298ow of USD 1169650 in 2012 to an in1047298ow of USD 549242 in the current year
Borrowings of USD 5723803 were repaid during the year
PROSPECTS
The Group is focussing on a range of initiatives to enable it to move ahead Management is targeting improved operational
effectiveness cost reductions customer focus prudent working capital management smart procurement and active market
presence The implementation of these initiatives has already started since the beginning of 2014
The 20132014 rainy season has been encouraging and this bodes well for the agricultural units in the 2014 1047297nancial year The
envisaged rehabilitation of roads and other infrastructural projects did not fully take shape in 2013 It is hoped that liquidity issues
prevailin g in the economy will ease to allow meaningful infrastructural and road rehabilitati on programs to commence Overall the
Group remains positive and optimistic about the business model that it is pursuing and has always taken a long term view of the
investment The energy and determination in the new management of business units has infused enthusiasm and is set to improve
the performance of the Group
MANAGEMENT CHANGES
The merging of the two businesses resulted in inevitable changes at both senior and junior management levels across the Group I
would like to extend my gratitude to those that departed for their service over the years The new team is already demonstrating its
ability to tackle the operational challenges that these business units are facing
DIVIDEND
No dividened has been proposed for the current year
APPRECIATION
I would like to express my gratitude to our valued customers employees and management for their hard work and commitment to
the Group I would like to give credit to fellow Board members for the wise counsel and supp ort
ZL Rusike
06 March 2014
Sh ar e Ca pit al Cap it al Res er ve Sha re Pr em iu mRevaluation
ReserveAvailable For Sale
ReserveRetained Earnings
Share BasedPayment
Attributable ToOwners Of The
Parent
US$ US$ US$ US$ US$ US$ US$ US$
Balance at 1 January 2012 32716 7036174 552333 - 76496 6127442 (65400) 13759761
Loss for the year - - - - - (135561) - (135561)
Other comprehensive income net of tax - - - 1455923 2104 - 1458027
Payment of dividend - - - - - (907950) - (907950)
Share based payment transaction - - - - - - (261600) (261600)
Issue of ordinary shares 23330 - 11185924 - - - - 11209254
Share issue costs - - (346321) - - - - (346321)
Balance at 31 December 2012 56046 7036174 11391936 1455923 78600 5083931 (327000) 24775610
Loss for the year - - - - - (190854) - (190854)
Other comprehensive income net of tax - - - - 53889 - - 53889
Issue of ordinary shares 6225 - 3239921 - - - - 3246146
Balance at 31 December 2013 62271 7036174 14631857 1455923 132489 4893077 (327000) 27884791
CHAIRMANrsquoS REVIEW
8122019 ZIMW Audited Results for FY Ended 31 Dec 13
httpslidepdfcomreaderfullzimw-audited-results-for-fy-ended-31-dec-13 33
ZIMPLOW HOLDINGS LIMITED
CONDENSED AUDITED RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2013
DIRECTORS ZL Rusike (Chairman) Z Kumwenda (CEO) P St L Devenish TM Johnson A Kurauone GTManhambara S Mngomezulu E Mlambo T Moyo N Nhira F Rwakonda (Executive)
31 December 2012Mining and
InfrastructureFarming Property Adjustments Total
US$ US$ US$ US$ US$
Revenue 11750633 17902614 153574 (98001) 29708820
Intersegment revenue 442995 62578 - (505573) -
Total revenue 12193628 17965192 153574 (603574) 29708820
Segment operating pro1047297t (loss) 1348075 1167100 25371 (176062) 2364484
Unallocated items
Acquisition and restructuringexpenses
- - - (1941388) (1941388)
Fair value loss on investmentproperty
- - (90000) - (90000)
Finance income 75675 123750 - 78126 277551
Finance costs (1000) (494944) - (184340) (680284)
Share of loss of a Joint Venture - - - (11023) (11023)
Income taxes (292250) (203517) - 230286 (265481)
Loss after tax (346141)
Loss from discontinued operations (659035)
GROUP LOSS AFTER TAX (1005176)
Segment assets 15580834 38972530 4782832 (6434237) 52901959
Segment liabilities (4824638) (12173425) (978784) 1085323 19062170
Other segment information
Depreciation and amortisation 98469 429456 - - 626302
Additions to non current assets 155752 168338 - - 351074
1 Presentation and statement of compliance
11 Basis of preparation
The Consolidated and Company 1047297nancial statements have been prepared on the historical cost basis except for property plant
equipment investment property and 1047297nancial instruments that are measured at revalued amounts or fair values Historical cost is
generally based on the fair value of the consideration given in exchange for assets12 Financial Reporting and Compliance
The Directors are responsible for the maintenance of adequate accounting records as well as the preparation and integrity of the
1047297nancial statements in a manner that fairly presents the state of affairs and the results of the Grouprsquos operations These consolidated
1047297nancial statements have been prepared in accordance with International Financial Reporting Standards and presented in United
States dollars (US dollars) which is the Grouprsquos functional currency
13 Auditors Statement
These condensed 1047297nancial results must be read in conjunction with the complete set of 1047297nancial statements for the year ended
31December 2013 which have been audited by Ernst amp Young and an unmodi1047297ed audit opinion issued thereon The Auditors report
on these 1047297nancial results is avai lable for inspec tion at the Companyrsquos registered offi ce
2 Discontinued operations
21 Disposal of motoring unit
On 1 June 2013 the Group entered into a sale agreement to dispose of Puzey and Payne Limited a car dealership and service
provider for Mazda PeugeotToyota and Mitsubishi vehicles The proceeds of sale substantially exceeded the carrying amount of
the related net assets and accordingly no impairment losses were recognised at the date of disposal The disposal of the motor
division is consistent with the Grouprsquos long term strategy to focus its activities in agriculture mining and infrastructure sectors The
disposal was completed on 1 June 2013 on which date control of the motoring unit passed to the acquirer Directors obtained an
independent opinion from advisors that the terms of the transaction were ldquofair and reasonablerdquo for the company shareholders
Below are the details of the assets and liabilities disposed of and the calculation of the pro1047297t or loss on disposal
US$
Total consideration received 1567000
Analysis of assets and liabilities over which control was lost is as follows
Non Current Assets 239166
Current Assets 1801500
Total Assets 2040666
Non current liabilities (58765)
Current liabilities (2228900)
Net assets disposed of (246999)
Consideration 1567000
Gain on disposal of subsidiary 1813999
The pro1047297t on disposal is included in the pro1047297t for the year from continuing operations
22 Disposal of fasteners unit
On 1 November 2013 the Group entered into a sale agreement to dispose of Bulawayo Steel Products (Private) Limited ta
Tassburg a bolts nuts and fastener manufacturer and distributor The unit was disposed at fair value hence no impairment losses
were recognised on remeasurement of the disposal group to fair val ue less costs to sell The proceeds of the sale did not exceed
the carrying amount of the related assets Accordingly an impairment loss was recognized on the date of disposal The disposal
was completed on 1 November 2013 on which date control of the fasteners unit passed to the acquirer Directors obtained anindependent opinion from advisors that the terms of the transaction are lsquolsquofair and reasonablersquorsquo for the companyrsquos shareholders
Below are the details of the assets and liabilities disposed of and the calculation of the pro1047297t or loss on disposal
The loss on disposal is included in the pro1047297t for the year from continuing operations
23 Net gain (loss) on disposal of subsidiaries
3 Acquisition of TPHL Non controlling interests
On the 15th of January 2013 the shareholders approved the acquisition of the balance of the issued share capital of Tractive Power
Holdings Limited (TPHL) being 66 206 418 Tractive Power Holdings Limited ordinary shares through the issue of 19178 Zimplow
Ltd shares for every 100 TPHL ordinary shares held or a cash consideration of US $ 010 for every TPHL ordinary share held Zimplow
Ltd now owns 100 of the issued share capital of TPHL
Tractive Power Holdings Limited was subsequently delisted from the Zimbabwe Stock Exchange on the 14th of March 2013
Notes to the condensed 1047297nancial statements
US$
Total consideration received 423000
Analysis of assets and Liabilities over which control was lost is as follows
Non Current Assets 110991
Current Assets 805011
Total Assets 916002
Non current liabilities -
Current liabilities (73551)
Net assets disposed of 842451
Consideration 423000
Loss on disposal of subsidiary (419451)
US$
Gain on disposal of Puzey amp Payne Limited 1813999
Loss on disposal of Bulawayo Steel Products (Pvt) Limited ta Tassburg (419451)
Non controlling interests -
Net gain on disposal of subsidiaries 1394548
31 December 2013Mining and
InfrastructureFarming Property Adjustments Total
US$ US$ US$ US$
Revenue 20823427 18691781 330421 28351 39873980
Intersegment revenue 375292 121951 6023 (503266) -
Total revenue 21198719 18813732 336444 (474915) 39873980
Segment operating pro1047297t (loss) 352974 1184103 335944 (1801859) 71162
Unallocated items
Acquisition and restructuringexpenses
- (170024) - (125000) (295024)
Gain on disposal of Puzey and Payne - - - 1813999 1813999
Loss on disposal of Tassburg - - - (419451) (419451)
Share of loss in Joint Venture - - - (82672) (82672)
Fair gains on investment property - - 1120000 119136 1239136
Finance income 268658 661151 903 (585457) 345255
Finance costs (5592) (516835) - (434082) (956509)
Income taxes (436450) 299743 (75479) 129794 (82392)Pro1047297t after tax 1633505
Loss from discontinued operations - - - - (801070)
GROUP PROFIT AFTER TAX 832435
Segment assets 12269280 49600442 5986853 (17785424) 50071151
Segment liabilities (16997581) (2319436) (24591) 207868 (19133740)
Other segment information
Depreciation and amortisation 214939 512617 - 114964 842520
Additions to non current assets 193572 291230 - 72681 557483
4 Name Change
The Company successfully changed its name from Zimplow Limited to Zimplow Holdings Limited on the 28th of April 2013
5 Segment information
The following is an analysis of the Grouprsquos revenue and results from continuing operations by reportable segment
8122019 ZIMW Audited Results for FY Ended 31 Dec 13
httpslidepdfcomreaderfullzimw-audited-results-for-fy-ended-31-dec-13 23
ZIMPLOW HOLDINGS LIMITED
CONDENSED AUDITED RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2013
DIRECTORS ZL Rusike (Chairman) Z Kumwenda (CEO) P St L Devenish TM Johnson A Kurauone GTManhambara S Mngomezulu E Mlambo T Moyo N Nhira F Rwakonda (Executive)
Group Statement Of Changes In EquityFor the year ended 31 December 2013
Company Statement Of Changes In EquityFor the year ended 31 December 2013
Share CapitalCapitalReserve
SharePremium
RevaluationReserve
Available ForSale Reserve
Change inOwnership
Reserve
ForeignCurrency
TranslationReserve
RetainedEarnings
Share BasedPayment
AttributableTo Owners Of
The Parent
Noncontrolling
interestsTotal
US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$
B al ance at 1 J an ua ry 2 01 2 32 7 16 7 0 36 1 74 5 52 3 33 - 76 4 96 - (6 9 06 5) 6 16 1 94 5 (6 5 40 0) 1 3 72 5 19 9 5 12 63 3 14 2 37 8 32
Loss for the year - - - - - - (812754) - (812754) (192422) (1005176)
Other comprehensive income - - - 1744747 2104 - (35703) - - 1711148 204847 1915995
Payment of dividend - - - - - - - (907950) - (907950) - (907950)
Share based payment transaction - - - - - - - - (261600) (261600) - (261600)
Issue of ordinary shares 23330 - 11185924 - - - - - - 11209254 - 11209254
Non controlling interest from acquisitionof TPH - - - - - - -
- - - 8997754 8997754
Share issue costs - - (346320) - - - - - - (346320) - (346320)
Balance on 31 D ecember 2012 56046 7036174 11391937 1744747 78600 - ( 104768) 4441241 ( 327000) 24316977 9522812 33839789
Prior period restatement - - - - - - 12308 - - 12308 - 12308
Pro1047297t for the year - - - - - - 497900 - 497900 334535 832435
Other comprehensive income (loss) - - - - 53889 - (85086) - - ( 31197) ( 80875) (112072)
Issue of ordinary shares 6225 - 3239921 - - - - - - 3246146 - 3246146
Acquisition of additional interest insubsidiary
- - - - - (102336) - - - (102336) (6268196) (6370532)
Equity related to amalgamation of groupassets
- (1777983) - 187692 - - - 1079858 - (510433) - (510433)
B al ance at 3 1 D ece mb er 2 01 3 62 2 71 5 2 58 1 91 1 4 63 1 85 7 1 93 2 43 9 13 2 48 9 ( 10 2 33 6) (1 77 54 6) 6 01 8 99 9 (3 27 00 0) 2 7 42 9 36 5 3 50 8 27 6 30 9 37 6 41
INTRODUCTION
On both the economic and business fronts a number of signi1047297cant events occurred in 2013 Demand was severely constrained
due to a ldquowait and seerdquo attitude prevailing in the few months leading up to the elections Liquidity constraints added to business
woes along with reduction in demand as businesses and individ uals struggled to meet debt repayment targets Capaci ty utilisation
declined unit costs of produc tion have risen and de1047298ation has become a serious threat to business The absence of any meaningful
direct foreign investment has exacerbated the problems facing the economy
Despite these distractions which have demanded inordinate amounts of management time I am pleased to report that your Board
has managed to fully restructure the Group into areas that were originally and strategical ly intended In the process hard decisions
that resulted in some units being disposed had to be undertaken Although this was a painful exerci se as re1047298ected in the 1047297nancials
it was a necessary step to ensure that the remaining units wil l be sustainable and pro1047297tab le for the longer term We took these
challenges and dealt with them in a decisive manner in line with the extreme volatility that existed in the market place
OPERATIONAL REVIEW
Agriculture
Implements volumes sold by the animal traction business units had a total decline of 15 from prior year with the main reduction
being recorded on export volumes Local volumes had shown a strong recovery during October but tailed off quite dramatically
during the latter parts of November and the whole of December 2013 Low liquidity levels and reduced donor activities were the
main causes of the decline Regional sales decreased but the reduction was tempered by a 43 volume increase in the South African
subsidiary
Spares recorded a 39 increase in the local market but had an overall decrease of 5 from last year in volumes due to a sharp decline
in the export of parts Clearly the competition from the Far East on these businesses was strong and based purely on price
Tractor Sales were lower than last year due to a deliberate change in the business model from a credit to cash or near cash model
Management took this position to arrest the growing debt and non-performing debtors in these units This move resulted in a
signi1047297cant reduction in the debtors book of these units by the end of December
Activity in the workshops was very low recording a 41 decline Tight liquidity positions experienced by many f armers reduced their
ability to have their equipment serviced A reasonable performance in parts sales conversely was experienced
Mining Construction and Power
Whole goods equipment sales at Barzem were up by 38 compared to prior year mainly attributed to good generator set sales
Most of the sales occurred in the 1047297rst half of the year and when it became apparent that the liquidity position was worsening in the
country management changed the model to cash and that reduced activity thereafter
Workshop activity was also very low recording a decline of 43 from prior year A decline in the traditional exported labour to
Mozambique and the DRC contributed to this decreaseParts turnover was down by 12 compared to prior year due to stricter credit control measures
Fasteners
The business unit recorded a decline of 16 in total volumes f rom prior year The shrinking economy has created arbitrage
opportunities for small traders with very low overheads to enter the market where barriers to entry are weak especially with porous
borders allowing imports to pass through without the additional cost of duty Management is taking steps to respond to the
changing market conditions
FINANCIAL REVIEW
The Group recorded revenue of USD 39873980 against USD 29708820 in prior year an increase of 34 albeit from a lower base
as Tractive Power Holdings was effectivel y acquired on 1 July 2012 The Group ended with a pro1047297t before tax of USD 17158 97
resulting princi pally from the net gain on the disposals of Puzey and Payne and Tassburg of USD 1394548 A further non-recurring
charge of USD 572668 was incurred during the year to 1047297nalise the restructuring of the group
Operating pro1047297t was weighed down by continued pressure on margins in our exports liquidity and cash1047298ow constraints affecting
our customers resulting in signi1047297cant provisions for doubtful debts
Cash from operating activities improved from an out1047298ow of USD 1169650 in 2012 to an in1047298ow of USD 549242 in the current year
Borrowings of USD 5723803 were repaid during the year
PROSPECTS
The Group is focussing on a range of initiatives to enable it to move ahead Management is targeting improved operational
effectiveness cost reductions customer focus prudent working capital management smart procurement and active market
presence The implementation of these initiatives has already started since the beginning of 2014
The 20132014 rainy season has been encouraging and this bodes well for the agricultural units in the 2014 1047297nancial year The
envisaged rehabilitation of roads and other infrastructural projects did not fully take shape in 2013 It is hoped that liquidity issues
prevailin g in the economy will ease to allow meaningful infrastructural and road rehabilitati on programs to commence Overall the
Group remains positive and optimistic about the business model that it is pursuing and has always taken a long term view of the
investment The energy and determination in the new management of business units has infused enthusiasm and is set to improve
the performance of the Group
MANAGEMENT CHANGES
The merging of the two businesses resulted in inevitable changes at both senior and junior management levels across the Group I
would like to extend my gratitude to those that departed for their service over the years The new team is already demonstrating its
ability to tackle the operational challenges that these business units are facing
DIVIDEND
No dividened has been proposed for the current year
APPRECIATION
I would like to express my gratitude to our valued customers employees and management for their hard work and commitment to
the Group I would like to give credit to fellow Board members for the wise counsel and supp ort
ZL Rusike
06 March 2014
Sh ar e Ca pit al Cap it al Res er ve Sha re Pr em iu mRevaluation
ReserveAvailable For Sale
ReserveRetained Earnings
Share BasedPayment
Attributable ToOwners Of The
Parent
US$ US$ US$ US$ US$ US$ US$ US$
Balance at 1 January 2012 32716 7036174 552333 - 76496 6127442 (65400) 13759761
Loss for the year - - - - - (135561) - (135561)
Other comprehensive income net of tax - - - 1455923 2104 - 1458027
Payment of dividend - - - - - (907950) - (907950)
Share based payment transaction - - - - - - (261600) (261600)
Issue of ordinary shares 23330 - 11185924 - - - - 11209254
Share issue costs - - (346321) - - - - (346321)
Balance at 31 December 2012 56046 7036174 11391936 1455923 78600 5083931 (327000) 24775610
Loss for the year - - - - - (190854) - (190854)
Other comprehensive income net of tax - - - - 53889 - - 53889
Issue of ordinary shares 6225 - 3239921 - - - - 3246146
Balance at 31 December 2013 62271 7036174 14631857 1455923 132489 4893077 (327000) 27884791
CHAIRMANrsquoS REVIEW
8122019 ZIMW Audited Results for FY Ended 31 Dec 13
httpslidepdfcomreaderfullzimw-audited-results-for-fy-ended-31-dec-13 33
ZIMPLOW HOLDINGS LIMITED
CONDENSED AUDITED RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2013
DIRECTORS ZL Rusike (Chairman) Z Kumwenda (CEO) P St L Devenish TM Johnson A Kurauone GTManhambara S Mngomezulu E Mlambo T Moyo N Nhira F Rwakonda (Executive)
31 December 2012Mining and
InfrastructureFarming Property Adjustments Total
US$ US$ US$ US$ US$
Revenue 11750633 17902614 153574 (98001) 29708820
Intersegment revenue 442995 62578 - (505573) -
Total revenue 12193628 17965192 153574 (603574) 29708820
Segment operating pro1047297t (loss) 1348075 1167100 25371 (176062) 2364484
Unallocated items
Acquisition and restructuringexpenses
- - - (1941388) (1941388)
Fair value loss on investmentproperty
- - (90000) - (90000)
Finance income 75675 123750 - 78126 277551
Finance costs (1000) (494944) - (184340) (680284)
Share of loss of a Joint Venture - - - (11023) (11023)
Income taxes (292250) (203517) - 230286 (265481)
Loss after tax (346141)
Loss from discontinued operations (659035)
GROUP LOSS AFTER TAX (1005176)
Segment assets 15580834 38972530 4782832 (6434237) 52901959
Segment liabilities (4824638) (12173425) (978784) 1085323 19062170
Other segment information
Depreciation and amortisation 98469 429456 - - 626302
Additions to non current assets 155752 168338 - - 351074
1 Presentation and statement of compliance
11 Basis of preparation
The Consolidated and Company 1047297nancial statements have been prepared on the historical cost basis except for property plant
equipment investment property and 1047297nancial instruments that are measured at revalued amounts or fair values Historical cost is
generally based on the fair value of the consideration given in exchange for assets12 Financial Reporting and Compliance
The Directors are responsible for the maintenance of adequate accounting records as well as the preparation and integrity of the
1047297nancial statements in a manner that fairly presents the state of affairs and the results of the Grouprsquos operations These consolidated
1047297nancial statements have been prepared in accordance with International Financial Reporting Standards and presented in United
States dollars (US dollars) which is the Grouprsquos functional currency
13 Auditors Statement
These condensed 1047297nancial results must be read in conjunction with the complete set of 1047297nancial statements for the year ended
31December 2013 which have been audited by Ernst amp Young and an unmodi1047297ed audit opinion issued thereon The Auditors report
on these 1047297nancial results is avai lable for inspec tion at the Companyrsquos registered offi ce
2 Discontinued operations
21 Disposal of motoring unit
On 1 June 2013 the Group entered into a sale agreement to dispose of Puzey and Payne Limited a car dealership and service
provider for Mazda PeugeotToyota and Mitsubishi vehicles The proceeds of sale substantially exceeded the carrying amount of
the related net assets and accordingly no impairment losses were recognised at the date of disposal The disposal of the motor
division is consistent with the Grouprsquos long term strategy to focus its activities in agriculture mining and infrastructure sectors The
disposal was completed on 1 June 2013 on which date control of the motoring unit passed to the acquirer Directors obtained an
independent opinion from advisors that the terms of the transaction were ldquofair and reasonablerdquo for the company shareholders
Below are the details of the assets and liabilities disposed of and the calculation of the pro1047297t or loss on disposal
US$
Total consideration received 1567000
Analysis of assets and liabilities over which control was lost is as follows
Non Current Assets 239166
Current Assets 1801500
Total Assets 2040666
Non current liabilities (58765)
Current liabilities (2228900)
Net assets disposed of (246999)
Consideration 1567000
Gain on disposal of subsidiary 1813999
The pro1047297t on disposal is included in the pro1047297t for the year from continuing operations
22 Disposal of fasteners unit
On 1 November 2013 the Group entered into a sale agreement to dispose of Bulawayo Steel Products (Private) Limited ta
Tassburg a bolts nuts and fastener manufacturer and distributor The unit was disposed at fair value hence no impairment losses
were recognised on remeasurement of the disposal group to fair val ue less costs to sell The proceeds of the sale did not exceed
the carrying amount of the related assets Accordingly an impairment loss was recognized on the date of disposal The disposal
was completed on 1 November 2013 on which date control of the fasteners unit passed to the acquirer Directors obtained anindependent opinion from advisors that the terms of the transaction are lsquolsquofair and reasonablersquorsquo for the companyrsquos shareholders
Below are the details of the assets and liabilities disposed of and the calculation of the pro1047297t or loss on disposal
The loss on disposal is included in the pro1047297t for the year from continuing operations
23 Net gain (loss) on disposal of subsidiaries
3 Acquisition of TPHL Non controlling interests
On the 15th of January 2013 the shareholders approved the acquisition of the balance of the issued share capital of Tractive Power
Holdings Limited (TPHL) being 66 206 418 Tractive Power Holdings Limited ordinary shares through the issue of 19178 Zimplow
Ltd shares for every 100 TPHL ordinary shares held or a cash consideration of US $ 010 for every TPHL ordinary share held Zimplow
Ltd now owns 100 of the issued share capital of TPHL
Tractive Power Holdings Limited was subsequently delisted from the Zimbabwe Stock Exchange on the 14th of March 2013
Notes to the condensed 1047297nancial statements
US$
Total consideration received 423000
Analysis of assets and Liabilities over which control was lost is as follows
Non Current Assets 110991
Current Assets 805011
Total Assets 916002
Non current liabilities -
Current liabilities (73551)
Net assets disposed of 842451
Consideration 423000
Loss on disposal of subsidiary (419451)
US$
Gain on disposal of Puzey amp Payne Limited 1813999
Loss on disposal of Bulawayo Steel Products (Pvt) Limited ta Tassburg (419451)
Non controlling interests -
Net gain on disposal of subsidiaries 1394548
31 December 2013Mining and
InfrastructureFarming Property Adjustments Total
US$ US$ US$ US$
Revenue 20823427 18691781 330421 28351 39873980
Intersegment revenue 375292 121951 6023 (503266) -
Total revenue 21198719 18813732 336444 (474915) 39873980
Segment operating pro1047297t (loss) 352974 1184103 335944 (1801859) 71162
Unallocated items
Acquisition and restructuringexpenses
- (170024) - (125000) (295024)
Gain on disposal of Puzey and Payne - - - 1813999 1813999
Loss on disposal of Tassburg - - - (419451) (419451)
Share of loss in Joint Venture - - - (82672) (82672)
Fair gains on investment property - - 1120000 119136 1239136
Finance income 268658 661151 903 (585457) 345255
Finance costs (5592) (516835) - (434082) (956509)
Income taxes (436450) 299743 (75479) 129794 (82392)Pro1047297t after tax 1633505
Loss from discontinued operations - - - - (801070)
GROUP PROFIT AFTER TAX 832435
Segment assets 12269280 49600442 5986853 (17785424) 50071151
Segment liabilities (16997581) (2319436) (24591) 207868 (19133740)
Other segment information
Depreciation and amortisation 214939 512617 - 114964 842520
Additions to non current assets 193572 291230 - 72681 557483
4 Name Change
The Company successfully changed its name from Zimplow Limited to Zimplow Holdings Limited on the 28th of April 2013
5 Segment information
The following is an analysis of the Grouprsquos revenue and results from continuing operations by reportable segment
8122019 ZIMW Audited Results for FY Ended 31 Dec 13
httpslidepdfcomreaderfullzimw-audited-results-for-fy-ended-31-dec-13 33
ZIMPLOW HOLDINGS LIMITED
CONDENSED AUDITED RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2013
DIRECTORS ZL Rusike (Chairman) Z Kumwenda (CEO) P St L Devenish TM Johnson A Kurauone GTManhambara S Mngomezulu E Mlambo T Moyo N Nhira F Rwakonda (Executive)
31 December 2012Mining and
InfrastructureFarming Property Adjustments Total
US$ US$ US$ US$ US$
Revenue 11750633 17902614 153574 (98001) 29708820
Intersegment revenue 442995 62578 - (505573) -
Total revenue 12193628 17965192 153574 (603574) 29708820
Segment operating pro1047297t (loss) 1348075 1167100 25371 (176062) 2364484
Unallocated items
Acquisition and restructuringexpenses
- - - (1941388) (1941388)
Fair value loss on investmentproperty
- - (90000) - (90000)
Finance income 75675 123750 - 78126 277551
Finance costs (1000) (494944) - (184340) (680284)
Share of loss of a Joint Venture - - - (11023) (11023)
Income taxes (292250) (203517) - 230286 (265481)
Loss after tax (346141)
Loss from discontinued operations (659035)
GROUP LOSS AFTER TAX (1005176)
Segment assets 15580834 38972530 4782832 (6434237) 52901959
Segment liabilities (4824638) (12173425) (978784) 1085323 19062170
Other segment information
Depreciation and amortisation 98469 429456 - - 626302
Additions to non current assets 155752 168338 - - 351074
1 Presentation and statement of compliance
11 Basis of preparation
The Consolidated and Company 1047297nancial statements have been prepared on the historical cost basis except for property plant
equipment investment property and 1047297nancial instruments that are measured at revalued amounts or fair values Historical cost is
generally based on the fair value of the consideration given in exchange for assets12 Financial Reporting and Compliance
The Directors are responsible for the maintenance of adequate accounting records as well as the preparation and integrity of the
1047297nancial statements in a manner that fairly presents the state of affairs and the results of the Grouprsquos operations These consolidated
1047297nancial statements have been prepared in accordance with International Financial Reporting Standards and presented in United
States dollars (US dollars) which is the Grouprsquos functional currency
13 Auditors Statement
These condensed 1047297nancial results must be read in conjunction with the complete set of 1047297nancial statements for the year ended
31December 2013 which have been audited by Ernst amp Young and an unmodi1047297ed audit opinion issued thereon The Auditors report
on these 1047297nancial results is avai lable for inspec tion at the Companyrsquos registered offi ce
2 Discontinued operations
21 Disposal of motoring unit
On 1 June 2013 the Group entered into a sale agreement to dispose of Puzey and Payne Limited a car dealership and service
provider for Mazda PeugeotToyota and Mitsubishi vehicles The proceeds of sale substantially exceeded the carrying amount of
the related net assets and accordingly no impairment losses were recognised at the date of disposal The disposal of the motor
division is consistent with the Grouprsquos long term strategy to focus its activities in agriculture mining and infrastructure sectors The
disposal was completed on 1 June 2013 on which date control of the motoring unit passed to the acquirer Directors obtained an
independent opinion from advisors that the terms of the transaction were ldquofair and reasonablerdquo for the company shareholders
Below are the details of the assets and liabilities disposed of and the calculation of the pro1047297t or loss on disposal
US$
Total consideration received 1567000
Analysis of assets and liabilities over which control was lost is as follows
Non Current Assets 239166
Current Assets 1801500
Total Assets 2040666
Non current liabilities (58765)
Current liabilities (2228900)
Net assets disposed of (246999)
Consideration 1567000
Gain on disposal of subsidiary 1813999
The pro1047297t on disposal is included in the pro1047297t for the year from continuing operations
22 Disposal of fasteners unit
On 1 November 2013 the Group entered into a sale agreement to dispose of Bulawayo Steel Products (Private) Limited ta
Tassburg a bolts nuts and fastener manufacturer and distributor The unit was disposed at fair value hence no impairment losses
were recognised on remeasurement of the disposal group to fair val ue less costs to sell The proceeds of the sale did not exceed
the carrying amount of the related assets Accordingly an impairment loss was recognized on the date of disposal The disposal
was completed on 1 November 2013 on which date control of the fasteners unit passed to the acquirer Directors obtained anindependent opinion from advisors that the terms of the transaction are lsquolsquofair and reasonablersquorsquo for the companyrsquos shareholders
Below are the details of the assets and liabilities disposed of and the calculation of the pro1047297t or loss on disposal
The loss on disposal is included in the pro1047297t for the year from continuing operations
23 Net gain (loss) on disposal of subsidiaries
3 Acquisition of TPHL Non controlling interests
On the 15th of January 2013 the shareholders approved the acquisition of the balance of the issued share capital of Tractive Power
Holdings Limited (TPHL) being 66 206 418 Tractive Power Holdings Limited ordinary shares through the issue of 19178 Zimplow
Ltd shares for every 100 TPHL ordinary shares held or a cash consideration of US $ 010 for every TPHL ordinary share held Zimplow
Ltd now owns 100 of the issued share capital of TPHL
Tractive Power Holdings Limited was subsequently delisted from the Zimbabwe Stock Exchange on the 14th of March 2013
Notes to the condensed 1047297nancial statements
US$
Total consideration received 423000
Analysis of assets and Liabilities over which control was lost is as follows
Non Current Assets 110991
Current Assets 805011
Total Assets 916002
Non current liabilities -
Current liabilities (73551)
Net assets disposed of 842451
Consideration 423000
Loss on disposal of subsidiary (419451)
US$
Gain on disposal of Puzey amp Payne Limited 1813999
Loss on disposal of Bulawayo Steel Products (Pvt) Limited ta Tassburg (419451)
Non controlling interests -
Net gain on disposal of subsidiaries 1394548
31 December 2013Mining and
InfrastructureFarming Property Adjustments Total
US$ US$ US$ US$
Revenue 20823427 18691781 330421 28351 39873980
Intersegment revenue 375292 121951 6023 (503266) -
Total revenue 21198719 18813732 336444 (474915) 39873980
Segment operating pro1047297t (loss) 352974 1184103 335944 (1801859) 71162
Unallocated items
Acquisition and restructuringexpenses
- (170024) - (125000) (295024)
Gain on disposal of Puzey and Payne - - - 1813999 1813999
Loss on disposal of Tassburg - - - (419451) (419451)
Share of loss in Joint Venture - - - (82672) (82672)
Fair gains on investment property - - 1120000 119136 1239136
Finance income 268658 661151 903 (585457) 345255
Finance costs (5592) (516835) - (434082) (956509)
Income taxes (436450) 299743 (75479) 129794 (82392)Pro1047297t after tax 1633505
Loss from discontinued operations - - - - (801070)
GROUP PROFIT AFTER TAX 832435
Segment assets 12269280 49600442 5986853 (17785424) 50071151
Segment liabilities (16997581) (2319436) (24591) 207868 (19133740)
Other segment information
Depreciation and amortisation 214939 512617 - 114964 842520
Additions to non current assets 193572 291230 - 72681 557483
4 Name Change
The Company successfully changed its name from Zimplow Limited to Zimplow Holdings Limited on the 28th of April 2013
5 Segment information
The following is an analysis of the Grouprsquos revenue and results from continuing operations by reportable segment
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