Cambria is pleased to announce preliminary unaudited management results for its two core subsidiaries and the deployment of $1.6 million in cash to purchase a 7.83% beneficial interest in Radar Holdings Limited (Radar) by Paynet Zimbabwe (Pvt) Ltd (Paynet), a wholly owned subsidiary of Payserv Africa Limited (Payserv).
For the FY ending 31 August 2018 Payserv achieved a PBT before minorities and restructuring costs of $3.3 million, a 49% increase from FY 2017. After minorities and restructuring costs, Payserv remained with $2.6 million in PBT, up 37%.
Millchem Zimbabwe recorded its first full year profit in 4 years reporting a $406,000 turnaround in EBITDA to $209,000 from a loss of $197,000 in FY 2017.
Preliminary unaudited financial information for the year ended 31 August 2018 is presented below. The financial information has been extracted from the unaudited management accounts and could be subject to possible change following the completion of the Company’s year-end audit process.
Paynet concluded the acquisition of an effective 7.83% interest in Radar for a purchase consideration of $1.6 million effective 31 August 2018 (Radar Acquisition).
The Radar Acquisition was facilitated through the subscription by Paynet of 62.84% of the ordinary shares in AF Phillips (Pvt) Ltd (AF Phillips). AF Phillips holds a 15.6% interest in Hinshaw (Pvt) Ltd which, through its wholly owned subsidiaries, holds a 79.65% interest in Radar. Paynet will be entitled to nominate a Director to both the Radar Board and the Hinshaw Board. The Radar Acquisition was settled utilising Paynet’s existing cash resources in Zimbabwe.
Radar is a public unlisted company incorporated in Zimbabwe with a track record dating back to 1978. It holds 100% of Radar Properties (Pvt) Ltd (Radar Properties) and 100% of Radar Investments (Pvt) Ltd trading as Macdonald Bricks. Radar Properties owns 2,166ha in prime development land in Zimbabwe and 8 residential properties. Macdonald Bricks is a brick manufacturer with the capacity to produce 91 million bricks per year. It has a dominant market position in the Matabeleland region in Zimbabwe.
Radar’s most recent published consolidated results for the 6 month period ended 31 December 2017 reflected Net Asset Value of $31.5 million, Revenues of $3.3 million and Profit After Tax of $391,000.
The Cambria Board is of the opinion that Radar will be a direct beneficiary of any uptick in the Zimbabwe economy through its regional monopoly in brick manufacturing and its significant development land holdings. In addition, the Radar Acquisition creates the possibility to increase Cambria’s investment in Radar should more shares become available in future.
The Company will give an overall trading update in due course once it has completed its consolidated results for the year ended 31 August 2018.
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