• Notice to Shareholders and the Public: OMU Top 10 ETF; RioZim; FCA; Truworths
  • Trading Update: FBCH; ZBFH; FMP; Masimba; Bridgefort Capital Ltd
  • FY Financial Results: AFDIS; Delta

Harare - Notice to Shareholders and the Public: OMU Top 10 ETF; RioZim; FCA; Truworths

Old Mutual Investment Group Zimbabwe (Ltd), the Fund manager for the Old Mutual ZSE Top Ten Exchange Traded Fund, declared a dividend of USc0.008436 per unit on the 28th of April 2023, and is payable on or about the 31st of May 2023 to unit holders in the register at the close of business on the 26th of May 2023.

The miner, RioZim, announced the appointment of Mr. Rajgopal Swami as the Chief Executive Office with effect from the 28th of April, 2023, along with the appointment of Mr. Atish Mangal as the Chief Finance Officer at the same date. This follows the resignation of Mr. Manit M. Shah as the Chief Executive Office.

The banking stock, First Capital Bank, issued a notice to the public about the halt in trading of shares on ZSE in First Capital Bank on the 15th of May, 2023, as the company sets to migrate to the US$ denominated Victoria Falls Stock Exchange. The stock will be delisted from the ZSE on Wednesday, 17 May 2023 and subsequently listed on the VFEX on Friday, 19 May 2023.

Truworths issued a Cautionary Statement on Friday, advising the investing public that the company is engaged in discussions that involve a potential transaction that may have a material impact on the value of the Company’s shares. The transaction involves raising capital for the Company’s working capital requirements and expansion initiatives through the issuance of shares by way of a rights offer, and shareholders are therefore advised to exercise caution when trading in the Company’s shares.

Trading Update: FBCH; ZBFH; FMP; Masimba; Bridgefort Capital Ltd

In a Trading Update for the 1st quarter ended 31 March, 2023, FBCH reported a total income of ZWL49 billion. Due to cost containment efforts, the Group achieved a cost to income ratio of 41%, and resultantly, a profit after tax of ZWL25.4 billion. The Group’s total assets were recorded at ZWL495.4 billion with underlying shareholder funds of ZWL90.5 billion and a return on equity of 28%

Peer banking stock, ZBFH, also published a Trading Update for the 1st quarter ended 31 March, 2023, in which financials were only prepared on a historical basis as the company alluded that compliance with IAS29: Financial Reporting in Hyperinflationary Economies was not practical. This follows the announcement of SI17 of 2023 which operationalized blended inflation rate and dropped publication of ZWL inflation rates. Consequently, the Group reported a 655% increase in total income to ZWL34.414 billion. The growth was attributed to increments in net income from lending activities as borrowing costs were lowered while money supply increased, thereby encouraging speculative borrowing. Foreign currency revenue contribution to aggregate revenue was 29%, up from 15% in prior corresponding period. On the downside, cost to income ratio rose to 54% from 44% in prior comparative period, due to exchange rate pressures.

In a Trading Update, FMP reported a 554.26% growth in revenue in historical terms for the quarter, and this was driven by rent reviews and improved pure US$ business. However, occupancy levels dwindled from 89.99% in 2022 to 84.55% in the period under review while collections fell from 68% to 57%. Net property income increased by 485.39% during the period due to improved levels of rental income while a total of ZWL 51,598,333 million was applied to property maintenance during the quarter. Investment properties at 31 March 2023 were valued at ZWL 137.007 billion, a 25.31% fair value gain from the 31 December 2022 value of ZWL 109.334 billion, with the growth being driven by rental income growth.

Masimba recorded an 18% surge in sales volumes in the 3-months to March, 2023, driven by a strong and firm order book in the Roads & Earthworks, Mining and Energy sectors. Capital expenditure incurred in the period under review amounted to USD2,783,773, down by almost a million from prior year levels.

Bridgefort Capital Limited issued a Trading Update for the 1st quarter ended 31 March, 2023, in which it reported a -31% decline in sales volumes for the period despite a significant change in product mix. In US$ equivalent value terms, as used for internal reporting, sales increased by 7.7% for the quarter to USD1.07 million as compared to Q1 2022, although this was however a decline from USD1.42 million in sales for Q4 2022. The company said its operations are significantly exposed to the devaluation of the Zimbabwe dollar due to ZWL being held for auction bidding purposes, where allocations are typically a lot less than the foreign currency applied for. Bridgefort Capital also alluded that it holds 50.1% ownership of a stand registered in the name of MedTech Distribution, and the Board is exploring opportunities to develop this property and to include it in a REIT to be listed later this year.

FY Financial Results: AFDIS; Delta

In the full year to 31 March 2023, AFDIS recorded an 18% growth in sales volumes, mainly driven by Ready-to-drink segment which grew by 23% while Wines and Spirits volumes grew by 16% and 14% respectively. Overall volumes growth was due to improved product availability, increased market penetration and promotional activity. In inflation adjusted terms, revenue increased by 56% to ZW$41 billion whilst operating income increased by 15% to ZW$5.4 billion. In order to give context to the financial results, the Board estimates that, in United States dollars terms, revenue increased by 15% to US$49.4 million and operating income was at US$8.5 million.

Beverages giant, Delta, also registered a 60% increase in revenue to ZWL537 billion for the full year to 31 March, 2023. This was due to volumes growth across business units and the replacement cost-based pricing. In order to provide users with a better insight into the underlying performance, the board estimates Group revenue at US$712million, up 19% over the prior year, whilst EBIT is indicated at US$140.6 million. Lager Beer volumes rose by 17%, while Sorghum Beer and Sparkling Beverages volumes went up by 9% and 10% respectively. Volumes at Schweppes and at Nampak were steady for the period under review.

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