When the ZCCM IH board meets with shareholders next month, they will be presenting a K0.33 per share dividend to shareholders which will bring the 2019 declared dividend for class A and B shareholders to approximately K53 million.
Board Chairperson, Eric Silwamba and his CEO Mabvuto Chipata face shareholders in the new year (January 16, 2020) on a back of busy year that saw the duo provide strategic leadership with the commencement of their 2018 to 2023 strategic plan which the group of companies believes will create a sustainable business model that is not solely dependent on investee company dividends.
Earlier in December 2019, ZCCM IH had advised Shareholders of the Company that the Earnings Per Share (“EPS”) for the Group and Company financial year ended 31 March 2019 is expected to be approximately 47% and 125% respectively, lower than the financial year ended 31 March 2018. The final audited results showed the group suffered a haircut in EPS from K5.25 to K2.79, on a year on year basis.
At company level, ZCCM IH suffered a loss for the year of K108 (2018: Profit K433 million), mainly due to a reduction in other income, impairment losses and fair value loss amounting to a total of K1.069 billion, according to the SENS announcement published on their website.
However, the duo will be proud of the performance of Kansanshi Mining Plc and Maamba Collieries Limited whose combined share of profit accounted for 84% of the recorded amount for the year. “There was an increase in share of profit from equity accounted investee companies to K689 million from K973 million”.
Financial Insight believes that focus of the next AGM will center on CEO Mabvuto Chipata preaching the strategic plan gospel to shareholders as he leads them towards sustainable growth away from and reducing on the dependence on dividend income streams which historically have been unstable and inconsistent.