·         Dividend Notice: Mashhold

·         Notice to Shareholders: WestProp

·         Financial Results: Padenga; Proplastics; FMP; PPC

Harare - Dividend Notice: Mashhold

The Board of Directors of Mashonaland Holdings Limited declared an interim dividend of USL128 414, amounting to 0.00761 US cents per share, and ZW$258 980 496, amounting to ZWL0.1535 per share in respect of half year ended 30 June 2023 payable to shareholders registered in the books of the company at the close of business on 6 October 2023.

Notice to Shareholders: WestProp

WestProp Holdings Limited announced that following the Supreme Court Appel Case Number SC271/23 filed by Augur Investments against the High Court Judgement HH 282/23 in respect to Stand 654 Pomona Township, the Supreme Court determined the appeal in favor of Augur Investments and Doorex Properties. The judgement puts to rest and vindicates WestProp’s position that Augur Investments had discharged its debt to Fairclot Investments (Pvt) Limited in full and as such neither Augur Investments, Doorex Properties (Pvt) Ltd nor WestProp Holdings owe any money to Fairclot Investments (Pvt) Limited.

Financial Results: Padenga; Proplastics; FMP; PPC

In the 6-months to 30 June 2023, Padenga Holdings Limited recorded a 31% growth in total revenue from US$56,865,837 in the prior year to US$74,420,384. The Dallaglio division contributed 84% to aggregate revenue while Nile Crocodiles contributed 16%. On the downside, EBITDA was subdued by increasing operating costs, closing at US$10.99 million from US$17.24 million in the prior corresponding period. A restructuring of borrowings, on the other hand, led to a 15% decline on net interest expense to US$3,668,641. Dallaglio business unit reported a 21% surge in turnover to US$62,659,854 in the period under review after registering gold sales of 1,080kgs from 933kgs in the prior year. The Nile Crocodiles recorded a 128% increase in revenue owing to 10,000 skins sold from harvests carried over from prior year and a 16% improvement in average realization per skin. The division recorded a 90% growth in skin harvest volumes in the 6-months under review.

In the half-year to 30 June 2023, Proplastics Limited reported a 23% increase in turnover to US$10.5 million, from US$8.5 million in the comparative period last year. The growth was driven by a 19% surge in sales volumes, with exports contributing 15% to total sales. However, due to power outages in the period, alternative sources pushed up cost of sales by 23%, among other minor drivers, and consequently gross profit margins remained static. Due to the growth in turnover, Proplastics registered a gross profit of US$3.3 million, from US$2.7 million in the prior year. On the upside, overheads declined by 13% from prior period on the back of cost containment strategies and pro­fit before tax of US$1 million was recorded compared to US$0.1 million recorded in similar period last year. The Group closed the period with cash and cash equivalents amounting to US$282,000.

First Mutual Properties (FMP) registered a 10% growth in inflation adjusted Net Property Income to ZWL1.333 billion in the half-year ended 30 June 2023, from ZWL1.213 billion in the prior corresponding period. Inflation adjusted revenue surged by a whopping 119% to ZWL8,026 billion in the 6-months under review, with rental income remaining the main source of revenue at 98% of the aggregate revenue, while property services income contributed 2%. The growth in revenue was buttressed by timeous rental reviews in the face of exchange rate volatility, along with a stable occupancy level at an average of 88.1% for the period under review. The Group recorded an improvement in the collection rate from 86% in the same period last year to 87% in the period under review. FMP alluded that an independent property valuation conducted by Knight Frank Zimbabwe as at 30 June 2023 valued the property portfolio at ZWL853.85 billion, 679% up from ZWL 109.37 billion in 2022. The growth in property values was attributed to relative growth in rentals, consistent with the inflationary environment. The Board of Directors declared a second interim dividend of ZWL375.1 million being ZWL30,34 cents per share and US$130,250 being US$0.011 cents per share. The dividend will be payable on or about 27 October 2023 to all shareholders of the Group registered at close of business on 6 October 2023. The Group has a range of projects running at varying stages of execution, with the Arundel Office Park extension, which entails the construction of a double storey office building with a basement and a lettable area of 2,616.50 square metres closing at a 60% completion level as at the reporting date. In Chinhoyi, construction of a four-storey student accommodation building is also reportedly advancing well with most of the structures now at second floor level. Notably, this project, which has a prescribed asset status is being implemented in partnership with institutional investors. FMP also said it is a co-investor in the development of mixed-use duplex clusters, three to four storey flats and student hostels in Zvishavane with the contractor having already commenced work on site with Phase A comprising the Six Duplex Flats while other 20 blocks of Double and Triple Storey Flats are at trenching and brick footing levels.

PPC issued an operating update for the 5-months ended 31 August 2023, in which it reported that aggregated revenue for South Africa and Botswana (excluding Zimbabwe and Rwanda) rose by 5% due to an increase in the average selling prices which countered the weaker cement sales volumes. Aggregated revenues from Zimbabwe and Rwanda, on the other hand, were materially stronger than the comparable period increasing by 58% (US$ parallel rate) and 19% (in ZAR) respectively. Meanwhile, the Group cement sales volumes (including Zimbabwe and Rwanda) went up by 3% on the back of a strong performance in Zimbabwe and Rwanda. PPC said while the materials business continued to register a decline in volumes, the cost reduction actions and price increases implemented resulted in EBITDA turning from negative in the comparable period to neutral in the five months ended August 2023 as EBITDA margins for SA and Botswana cement were flat against the comparable period at 11%. Cement sales volumes in South Africa and Botswana decreased by 6% period-on-period for the five months ended August 2023. In Zimbabwe, cement sales volumes increased 42% period-on-period mainly attributed to both residential construction and government funded infrastructure projects. In Rwanda, cement sales volumes firmed by 13% in the period under review as demand from infrastructure projects remained robust.

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