In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of Madison Financial Services PLC (“MFS” or “the Company”) hereby advises the Shareholders of the Company that the Earnings per Share and Headline Earnings per Share for the financial year ended 31st December 2019 are expected to be approximately 2,256% lower than for the financial year ended 31st December 2018.
The movement in EPS is primarily attributed to the loss attributable to the shareholders of K188.5 million for the year compared to a loss of K7.9 million in the year 2018. The loss was mainly attributed to an extraordinary loss amounting to ZMW90.2 million (US$6.5 million) which crystallised in the form of an insurance claim and reversed substantial gains. The claim related to a financial guarantee issued to Chakaka Village Country House Limited a related party, in connection to a hotel development project. The risk had been carried as a contingent liability in prior years. The loss was further compounded by the increase in the finance costs driven by the increase in interest costs and the weakening of the local currency resulting in exchange losses on foreign currency denominated loans.
Shareholders are advised that the information contained in this Trading Statement has not been reviewed nor reported on by the external auditors of the Company.
The Company expects its results for the financial year ended 31st December 2019 to be released on SENS and published in the local press on or about 26th April 2023. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities until the publication of the results.