VFEX Listing: Innscor

AGM Notices: Nampak & Border Timbers

Trading Updates: Hippo; StarAfrica & Meikles

VFEX LISTING: INNSCOR

Innscor Africa Limited held an Extraordinary General Meeting on the 15^th of February, 2023, with the main agenda tabled being a vote on the company’s migration to the Victoria Falls Stock Exchange (VFEX) as well as the appointment of Auditors for the company.

Innscor raised a number of reasons for moving to VFEX, and this initiative follows the recent migration of other Innscor’s associate companies to VFEX which include National Foods Limited and Simbisa Brands Limited. Some of the reasons raised by Innscor include access to US$ capital as there are stronger chances of obtaining equity financing in foreign currencies to fund capital expenditures, working capital, and regional expansion on VFEX; easiness in the movement of money in and out of VFEX for foreign shareholders, including the ability to repatriate dividends freely in foreign currency and settle proceeds from selling shares outside the country; more attractive incentives for foreign investors on the VFEX-Tax incentives for foreign investors on VFEX, include a 5% withholding tax on dividends and no capital gains tax; improved regional profile and commercial standing for Innscor, creating pathways to the company’s local and regional prospects; and reduced valuation volatility caused by currency translation through USD valuation on VFEX, allowing shareholders to realize the true value of their investments and get a more accurate benchmark of the stock’s performance.

A total of four resolutions were all passed at the EGM, and these were the delisting of Innscor Africa Limited from the Zimbabwe Stock Exchange; authorised but unissued shares be placed under the control of the directors; directors authorised to give effect to resolutions; and the appointment of BDO Zimbabwe Chartered Accountants as Auditors of the company. While the shareholders voted to delist the company from the ZSE, the written resolution is not clear on whether it included the subsequent listing of the company on VFEX following the delisting. However, on the 16^th of February a notice was issued that Innscor will halt trading on ZSE on the 23^rd of February before subsequently listing on the VFEX on the 24^th of February, 2023.

AGM NOTICES: NAMPAK & BORDER TIMBERS

Nampak Zimbabwe Limited announced that it will hold its 72^nd Annual General Meeting on the 8^th of March, 2023, at 09.00 Hours. The meeting will be held in the boardroom at 68 Birmingham Road, Southerton, Harare. However, shareholders are invited to attend the meeting virtually, with virtual details to be shared by transfer secretaries through email. The AGM is set to discuss details around, but not limited to, the receipt, consideration and adoption of the Financial Statements for the year ended 30 September 2022 together with the Report of the Auditors; the approval of Directors’ remuneration; the election of the following Directors: Mr. A H Howie and Mr. Q Swart retire by rotation but being eligible offer themselves for re-election, Mr. S H Murray was appointed as an Independent Non - Executive Director on 01 July 2022, Mr. M Matafeni was appointed as an Executive Director on 1 November 2022; the approval of the composition of the Board Committees and to elect the Chairman of the Board of Directors; and to appoint Deloitte and Touche, as external auditors of the Company until the conclusion of the Annual General Meeting and to approve the remuneration for the past financial year.

Border Timbers also announced that the Annual General Meetings of the members of Border Timbers Limited for each of the years 2018, 2019, 2020, 2021 and 2022 will be held individually, in consecutive order, starting at 0930 hours on Wednesday, 8th March, 2023, in the Board Room at the Registered Office of the company, 4-12 Paisley Road, Southerton, Harare (Northern Tobacco complex). The meeting is set to discuss resolutions that include, but not limited to, financial statements consideration and adoption; election of Directors; Directors’ remuneration; and independent Auditor's fees and appointment.

TRADING UPDATES: HIPPO; STARAFRICA & MEIKLES

In a Trading Update for the third quarter ended 31 December, 2022, Hippo said revenue realisations on the local market, in both local and foreign currency, remained firm as most customers continued to support local brands against the imports that were available in the local market from May to December 2022 owing to cheaper local goods due to a weak local currency. The company reported a 13% growth in cane deliveries from the company’s plantations to 1,017,408 tonnes. The growth was buttressed by a 6% improvement in yields owing to improved control of yellow sugarcane aphid infestations through aerial spraying, as well as an increased area of cane harvested compared to the prior year. On the other hand, cane deliveries from private farmers declined by a mild -2% against prior corresponding period level as one of the Company’s two production lines suffered a breakdown that resulted in early closure of the affected production line for the balance of the season and thus some cane had to be carried over to the next season. The company said the prolonged wetness arising from rains received at the onset of the season led to lower cane quality which resulted in a marginal decrease in the sugar produced by the milling operations.

Peer company, Star Africa, also recently issued a Trading Update for the quarter ended 31 December, 2022, in which it alluded that currency volatility has resulted in increased operational costs for businesses and reduced consumer spending. The company recorded a -0.4% decline in production volumes in the quarter, owing to power and steam constraints which negatively weighed on plant uptime. The reduced production, and partially, the reduced consumer-spend, led to a -0.2% decline in sales volumes for the company comparative to corresponding period in the prior year. As a corrective measure, Star Africa installed an 11kVA dedicated electricity line, procured a 1,000kVA generator (for controlled plant stoppages, following power cuts) and electrical cables to mitigate power supply challenges. Post the reporting period, Star Africa temporarily closed operations at its GoldStar Harare Refinery following a significant increment in raw sugar prices from its sole supplier, and the plant remains closed.

Meanwhile, Meikles Limited also issued a Trading Update for its third quarter ended 31 December, 2022, in which a staggering -16.5% decline in sales volumes was reported for the supermarkets segment. This was mainly due to reduced consumer-spend during the period under review following the effects of the contractionary monetary policy introduced in the second quarter of the year and aimed at curtailing money supply to mitigate inflation. On the upside, the sales volumes posted a 2.5% surge in the 9-months to 31 December owing to a positive performance in the first and second quarter of the company’s fiscal year. Meikles’ hospitality segment reported an increase of 9.85 percentage points in occupancy level in the third quarter while revenue per available room rose by a whopping 94% in US$ terms. In inflation adjusted terms, the Group’s overall revenue notched by 40% comparative to corresponding quarter in the prior year as all operating subsidiaries generated positive cash flows in the period under review. Meanwhile, the Group said its supermarkets segment completed and opened two new stores, Pick n Pay Simon Mazorodze and Pick n Pay Madokero during the quarter under review.