Cambria Africa has published results for the year ended 31 August 2014 and interims or the six months ended 28 February 2015 and consequently has successfully applied for a restoration of trading in its shares. Key events for the 2014 financial year were:
On 8 May 2014, the Company disposed of the Southerton property, which was previously occupied by the Group’s previously owned printing business, Celsys Limited, for a total consideration of US$0.7 million (before costs and related taxes). The Southerton property had a carrying value of US$1 million as at the previous reporting period;
On 21 October 2014, in the post balance sheet period, the Group disposed of its 100% interest in Lonzim Hotel Holdings Limited (“the Leopard Rock Hotel Group”), the owner of the Leopard Rock Hotel and related entities, for a total consideration of US$2.5 million. Accordingly, the net asset value of the Leopard Rock Hotel Group has been impaired by US$8.9 million at 31 August 2014 to reflect this investment’s net realisable value of US$2.5 million;
Following the above disposals, the Company’s only remaining assets are Payserv Africa (“Payserv”) and Millchem Holdings (“Millchem”). The Board say they are focused on:
- Rationalising and simplifying the head office function including head office roles, responsibilities and reporting lines. An aggressive reduction in overheads has been accelerated following the investment by VAL in April 2015;
- Restoring the momentum lost in Millchem by re-establishing key supplier and customer relationships and performing a critical financial and operational analysis of the underlying subsidiaries including Millchem Zambia;
- Accelerating the development of Payserv Zambia to achieve breakeven and profitability; and
- Further enhancing the value of Payserv by replicating its successful technology platforms, products and services in the rest of Sub-Saharan Africa.
During the year ended 31 August 2014, Payserv and Millchem combined, grew revenues and gross profit by 11% and 10% year-on-year, respectively. The Payserv results were impacted by a significant once-off loss US$0.7 million on the failed proposed acquisition of CelPay Zambia. Cambria’s central costs were reduced by 22.5% when compared to the equivalent period last year. As noted above, a further cost reduction has been implemented after the financial year-end. Cambria’s EBITDA loss from continuing operations for the year ended 31 August 2014 was US$3.75 million (2013: US$3.58 million). The Group recorded a loss from continuing operations of US$5.7 million for the year ended 31 August 2014. The loss from discontinued operations, including the loss on disposal of the Southerton property and the write down of the Company’s investment in the Leopard Rock Hotel Group, totalled US$10.2 million.
Looking at the following six months, Payserv and Millchem combined, grew revenues and gross profit by 33% and 26% year-on-year, respectively. Cambria’s central costs were 4% higher than the equivalent period last year mainly as a result of US$0.6 million legal fees incurred, US$0.5million of which related to the Lonzim Air litigation. Cambria’s EBITDA loss from continuing operations for the period was US$1.1 million (2014: US$1.2 million). The Group recorded a loss from continuing operations of US$1.8 million for the period (2014: US$2.2 million). The loss from discontinued operations totalled US$0.5 million, reflecting legal costs incurred on the Lonzim Air litigation.
CMB : Cambria Africa publishes results, trading restored