The Directors of TSL Limited are pleased to announce the Group's unaudited results for the six months ended 30th April 2009
6 months ended
30 April 2009
Profit from Operations 751,870
Interest receivable 3,840
Interest paid (11,618)
Share of profit of associated companies 253,523
Profit before taxation 997,615
Net Profit from ordinary activities 623,534
Attributable to equity holders of parent 520,660
Minority Interest 102,874
Number of shares in issue 343,076,865
Weighted Average number of shares in issue 343,076,865
Earnings per share-excluding minorities-US cents 0.15
Basic earnings per share-US cents 0.18
Headline earnings per share-US cents 0.18
BALANCE SHEET AS AT 30 APRIL 2009
Property, Plant and Equipment 71,979,939
Short term deposits 2,187
Accounts receivable 3,024,882
Bank and cash 888,554
Total Assets 81,060,920
EQUITY AND LIABILITIES
Capital and reserves
Issued Share Capital and Premium 0
Change in Functional Currency Reserve 58,221,589
Retained earnings 520,660
Minority interest 5,317,082
Deferred Taxation 13,015,920
Short term liabilities 2,736
Bank Overdraft 685,213
Accounts payable 2,989,836
Total Equity and liabilities 81,060,920
Depreciation charge for the period 237,788
Capital commitments-Authorised but not contracted for 1,327,431
CASH FLOW STATEMENT
For the six months ended 30 April 2009
CASH FLOW FROM OPERATING ACTIVITIES
Cash generated from operations 1,057,750
Net movement in working capital (926,261)
Operating cash flow 131,489
Net interest expense (7,778)
Taxation paid (66,197)
Cash flows from operations 57,514
Dividends received 0
Dividends paid including to minorities 0
Net cash from operating activities 57,514
CASH FLOWS FROM INVESTMENT ACTIVITIES
Purchase of property, plant and equipment (204,420)
Purchase of investments 0
Proceeds on disposal of property , plant and equipment 8,210
(Increase)/Decrease in investments and loans (102,422)
Net cash effects of investing activities (298,632)
CASH EFFECTS OF FINANCING ACTIVITIES
Proceeds from issue of share capital 0
Movement in short term liabilities 2,738
Movement in non current liabilities 0
Movement in holding company loans 0
Net cash effects of financing activities 2,738
Net movement in cash and
cash equivalents (238,380)
Cash and cash equivalents at beginning of the year 441,721
Cash and cash equivalents at end of the period 203,341
Made up as follows:
Bank and cash 888,554
Bank Overdraft (685,213)
STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 APRIL 2009.
Share Functional Non
Capital & Currency Distributable
Premium Reserve Reserve
Balance at 31 October 2008 0 0 54,699,089
Net adjustment arising from change in
functional currency 0 3,522,500
Net Profit for the period
Balance at 30 April 2009 0 3,522,500 54,699,089
The Group adopted the United States dollar as its reporting and functional currency in February 2009. The interim financial
statements are therefore presented in United States dollars and are based on the accounting records that are maintained
under the historical cost convention as modified by the revaluation of immovable property. Although the company traded
in Zimbabwe dollars in the first quarter, the figures from that period are insignificant, in United States dollar terms. The Direc
intend to adopt the fair value of fixed assets as their deemed cost.
In adopting the new functional currency, the Group could not comply entirely with the provisions of IAS 21, "The Effects
of Changes in Foreign Exchange Rates".In terms of the standard, at conversion, transactions in a hyperinflationary economy
are supposed to be hyperinflated to the date of switch of the functional currency in terms of IAS 29.This could not be done
as a result of the absence of inflation indices for the relevant period.
The Group could also not comply with the provisions of IAS 1 "Presentation of Financial Statements" as regards comparative
Prior year comparatives have not been included as these may be misleading in light of the current trading enviroment
and the multiplicity of rates available during the comparative period.
Group turnover and Profit Before Tax for the half year amounted to $7,5million and US$997 611 respectively, reflecting
the new environment which was characterised by an acute shortage of foreign currency.
Paper and Packaging
Coal unavailability coupled with an extended shutdown period at Corrugated as a result of boiler maintainence
resulted in a 24% decline in volumes compared to last year. Although volumes picked up in the second quarter,
stiffer competition led to a decline in margins over the period.
Retail and Agricultural Services
As a result of a decrease in agricultural activities, Harvesters discontinued operations in the first quarter of the financial year.
Volumes for the retail outlets remained depressed in the period under review due to limited credit and liquidity.
Volumes remained depressed throughout the first quarter and only picked up in the second quarter of the
financial year.The half year volumes fell 57% below the same period last year. Performance will depend on
credit availability to farmers.
Avis Car Rental
The fleet size increased by 24% and the introduction of 4x4 vehicles created a new market segment and revenue streams.
The limited ability of the country to transact in international credit cards is adversely affecting foreign business volumes.
Volumes from domestic clients decreased in the first half of the year compared to prior year.However earnings from
foreign organisations ensured a satisfactory performance for the first half of the year.
The tobacco auction floors only commenced operations on the 7th of May 2009. Tobacco Sales Floor expects
to significantly increase its market share from that achieved in 2008 as a result of improved relationship management with
Processed Tobacco Exporting
Sales volumes increased by 12% compared to the previous year .Sales to the domestic market were done on a test basis
and will be expanded in accordance with Export Processing Zone regulations.
Production for the first half of the financial year fell 10% compared to the same period last year mainly due to the timing of
a replanting exercise. As a result of the global recession, prices fell 12% below last year in Euro terms.
Traditionally business in the second half of the financial year is better than the first half and this trend is expected to continue
The Board would like to acknowlwdge the contribution of Mr J H Anagnostopoulos who was a board member for 11 years and
at the company's Annual General Meeting on 4th March 2009. We welcome Mr E Mlambo who joined the Board on 6th May
Due to the need to conserve cash to fund working capital requirements the Board has resolved not to declare a dividend
for the half year.
Directors: C Nyereyegona (Chairman), A Mandiwanza (Deputy Chairman) R Musvaire (Managing Director)
J S Brown, V L Macray, E Mlambo, P Mujaya, J S Mutizwa, B Ndebele, Z L Rusike.
For any queries, please contact Mr P Mujaya on -754666 (Land)
s ended 30th April 2009.
Distributable Minority Total
Reserve Total Interest Equity
0 54,699,089 0 54,699,089
3,522,500 5,214,208 8,736,708
520,660 520,660 102,874 623,534
520,660 58,742,249 5,317,082 64,059,331
The interim financial
that are maintained
the company traded
dollar terms. The Directors
AS 21, "The Effects
his could not be done
as regards comparative figures.
er of the financial year.
nd revenue streams.
r earnings from
hip management with
one on a test basis
y due to the timing of
is expected to continue.
member for 11 years and retired
d the Board on 6th May 2009.
declare a dividend