Lafarge Africa Plc Unaudited Condensed Financial Statements 30 … · 2020. 7. 24. · Lafarge...
Transcript of Lafarge Africa Plc Unaudited Condensed Financial Statements 30 … · 2020. 7. 24. · Lafarge...
Lafarge Africa Plc
Unaudited Condensed Financial Statements
30 June 2020
Lafarge Africa Plc
Contents
Directors' and Other Corporate Information 3
Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income 4
Consolidated and Separate Statements of Financial Position 5
Consolidated and Separate Statements of Changes in Equity 6
Consolidated and Separate Statements of Cash Flows 8
Notes to the Consolidated and Separate Financial Statements 9
Lafarge Africa Plc
Directors' and Other Corporate Information
Company registration number
RC 1858
Directors
Mr. Adebode Adefioye (appointed w.e.f. 4th June 2020) Chairman
Mr. Mobolaji Balogun (resigned w.e.f 3rd June 2020) Non-Executive Director
Mr. Khaled Abdel Aziz El Dokani Group Managing Director/CEO
Mr. Lolu Alade-Akinyemi (appointed w.e.f. 8th April 2020) Executive Director/CFO
Mrs. Elenda Giwa-Amu Non-Executive Director
Mrs. Adenike Ogunlesi Independent Non-Executive Director
Mr. Christof Hassig (resigned w.e.f. 7th April 2020) Non-Executive Director
Mr. Grant Earnshaw Non-Executive Director
Mr. Rossen Papazov (resigned w.e.f. 7th April 2020) Non-Executive Director
Mrs. Karine Uzan Mercie Non-Executive Director
Mr. Marco Licata Non-Executive Director
Mr. Gbenga Oyebode, MFR (appointed w.e.f. 8th April 2020) Independent Non-Executive Director
Mr. Olivier Guitton (appointed w.e.f. 8th April 2020) Non-Executive Director
Mrs. Oyinkan Adewale (appointed w.e.f 4th June 2020) Independent Non-Executive Director
Company Secretary
Mrs. Adewunmi Alode
Company Registered Office
Lafarge Africa Plc
27B, Gerrard Road,
Ikoyi,
Lagos
Registrar
Cardinal Stone (Registrars) Limited
[formerly City Securities (Registrars) Limited]
No 358, Herbert Macaulay Road,
Yaba,
Lagos
Independent Auditors
KPMG Professional Services
KPMG Tower,
Bishop Aboyade Cole Street,
Victoria Island,
Lagos
Principal Bankers
Access Bank Plc
Citibank Nigeria Limited
Diamond Bank Plc
Ecobank Nigeria Limited
First Bank of Nigeria Limited
Guaranty Trust Bank Plc
Standard Chartered Bank Plc
Stanbic IBTC Bank Limited
United Bank for Africa Plc
Wema Bank Plc
Zenith Bank Plc
Union Bank of Nigeria Plc
3
Lafarge Africa Plc
3months ended
30/06/2020
3months
ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
Notes N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000
Continuing operations:
Revenue 3 56,844,579 59,868,997 120,540,345 117,885,243 49,427,576 52,079,768 105,532,362 101,579,653
Cost of sales 4 (32,762,022) (38,001,369) (78,830,845) (78,424,672) (26,915,688) (31,058,824) (66,364,081) (63,685,832)
Gross profit 24,082,557 21,867,628 41,709,500 39,460,571 22,511,888 21,020,944 39,168,281 37,893,821
Selling and marketing expenses 5 (711,163) (804,648) (1,549,556) (1,720,476) (711,163) (766,566) (1,549,373) (1,656,509)
Administrative expenses 6 (3,237,568) (6,040,244) (7,829,659) (11,289,234) (3,500,374) (5,718,054) (7,789,588) (10,856,449)
Other income 7 1,082,527 1,303,213 554,035 1,337,848 997,341 9,172,470 554,035 9,207,107
Impairment reversal/(loss) on trade receivables 8 7,730 347 (19,315) 59,425 3,280 7,320 (20,908) 57,322
Other operating expenses 8 (55,853) - (55,853) - - - - -
Operating profit 21,168,230 16,326,296 32,809,152 27,848,134 19,300,972 23,716,114 30,362,447 34,645,292
Finance income 9 (a) 155,905 748,189 377,049 934,284 244,867 545,018 350,141 712,086
Finance costs 9 (b) (1,949,238) (6,208,802) (4,429,025) (13,329,207) (1,998,027) (6,320,632) (4,723,243) (13,554,903)
Impairment loss on investments in subsidiaries - - - - - (3,163) - (1,094,361)
Profit before tax from continuing operations 19,374,897 10,865,683 28,757,176 15,453,211 17,547,812 17,937,337 25,989,345 20,708,114
Income tax (expense) / credit 10.1 (4,112,529) (1,328,103) (5,427,919) 386,026 (3,431,574) (536,046) (4,461,692) 1,137,585
Profit after tax from continuing operations 15,262,368 9,537,580 23,329,257 15,839,237 14,116,238 17,401,291 21,527,653 21,845,699
Discontinued operation:
Loss after tax from discontinued operation 13.2 - (3,673,417) - (6,830,350) - - - -
Profit after tax for the period 15,262,368 5,864,163 23,329,257 9,008,887 14,116,238 17,401,291 21,527,653 21,845,699
Other comprehensive income:
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations - (5,115) - (589,094) - - - -
Other comprehensive (loss)/income for the year, net of tax - (5,115) - (589,094) - - - -
Total comprehensive income for the year from continuing operations 15,262,368 9,537,580 23,329,257 15,839,237 14,116,238 17,401,291 21,527,653 21,845,699
Total comprehensive income for the period 15,262,368 5,859,047 23,329,257 8,419,793 14,116,238 17,401,291 21,527,653 21,845,699
Profit/(loss) attributable to :
- Owners 15,262,368 5,864,163 23,329,257 9,008,887 14,116,238 17,401,291 21,527,653 21,845,699
- Non-controlling interests - - - - - - - -
15,262,368 5,864,163 23,329,257 9,008,887 14,116,238 17,401,291 21,527,653 21,845,699
Total comprehensive income for the period is attributable to:
- Owners 15,262,368 5,859,047 23,329,257 8,419,793 14,116,238 17,401,291 21,527,653 21,845,699
- Non-controlling interests - - - - - - - -
15,262,368 5,859,047 23,329,257 8,419,793 14,116,238 17,401,291 21,527,653 21,845,699
Earnings per share attributable to the ordinary equity holders of the Company:
Continuing operations & discontinued operation
Basic earnings/(loss) per share (Kobo) 21 95 36 145 56 88 108 134 136
Continuing operations
Basic earnings per share (Kobo) 21 95 59 145 98 88 108 134 136
The accompanying notes and significant accounting policies on pages 9 to 22 form an integral part of these financial statements.
Consolidated and Separate Statement of Profit or Loss and Other Comprehensive Income for the period ended 30 June, 2020
***Subsequent to the merger of the Company with Lafarge Readymix Nig Ltd during 2019, the 2020 Company numbers include the merged entity's financial result. The comparative numbers are those of the Company prior to the merger .
** Comparative information for the group's profit or loss and the related notes has been re-presented to separately disclose the profit/loss from discontinued operation.
Group Company
4
Lafarge Africa Plc
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
Notes N'000 N'000 N'000 N'000
ASSETS
Non-current assets
Property, plant and equipment 12 358,084,630 369,797,229 295,894,390 308,650,770
Intangible assets 12 2,657,761 3,202,068 2,030,595 2,506,810
Investments in subsidiaries 13.1 - - 63,906,867 63,906,867
Other financial assets 14 3,739,788 767,253 3,739,788 767,253
Other assets 16 21,700,097 20,345,783 20,450,756 18,772,032
Deferred tax assets 24,349,733 27,994,154 24,349,733 27,994,154
Total non-current assets 410,532,009 422,106,487 410,372,129 422,597,886
Current assets
Inventories 17 31,723,675 32,440,770 24,024,963 25,679,521
Trade and other receivables 18 7,298,449 8,193,050 24,770,456 20,452,686
Other assets 16 5,098,092 6,302,759 3,437,656 4,958,939
Other financial assets 14 1,259,182 1,005,200 1,966,926 1,001,586
Cash and cash equivalents 19 39,879,258 27,103,942 35,758,074 25,391,035
Total current assets 85,258,656 75,045,721 89,958,075 77,483,767
Total assets 495,790,665 497,152,208 500,330,204 500,081,653
LIABILITIES
Non-current liabilities
Loans and borrowings 22 9,921,455 52,664,863 7,611,211 45,899,963
Employee benefit obligations 25 2,242,149 1,876,124 1,993,392 1,651,651
Deferred income 24 1,868,608 2,307,466 1,289,673 1,345,039
Provisions 23 775,341 1,011,285 452,412 547,403
Deferred tax liabilities 9,773,930 9,966,699 - -
Total non-current liabilities 24,581,483 67,826,437 11,346,688 49,444,056
Current liabilities
Loans and borrowings 22 45,030,586 11,520,252 48,510,183 14,666,562
Deferred income 24 406,606 539,263 110,732 110,732
Bank overdrafts 19.2 - 27,552 - 27,552
Trade and other payables 26 70,617,232 69,717,897 71,928,168 72,577,646
Provisions 23 768,727 677,349 711,351 604,451
Current tax liabilities 2,250,570 1,929,457 881,666 1,229,095
Total current liabilities 119,073,721 84,411,770 122,142,100 89,216,038
Total liabilities 143,655,204 152,238,207 133,488,788 138,660,094
EQUITY
Share capital 20.1 8,053,899 8,053,899 8,053,899 8,053,899
Share premium 20.2 435,148,730 435,148,731 435,148,731 435,148,731
Retained earnings 163,022,786 155,801,325 117,277,662 111,857,805
Foreign currency translation reserve 39,103 39,103 39,103 39,103
Other reserves arising on business combination and re-
organisations(254,129,057) (254,129,057) (193,677,979) (193,677,979)
Total equity 352,135,461 344,914,001 366,841,416 361,421,559
Total equity and liabilities 495,790,665 497,152,208 500,330,204 500,081,653
Adebode Adefioye Khaled Abdel Aziz El Dokani Lolu Alade-Akinyemi
Chairman Group Managing Director Chief Financial Officer
FRC/2017/IODN/00000016512 FRC/2020/003/00000020762 FRC/2020/001/00000020157
These financial statements were approved and authorised for issue by the board of directors on 23rd July 2020 and were signed on its behalf by:
Consolidated and Separate Statement of Financial Position as at 30 June, 2020
Group Company
The accompanying notes and significant accounting policies on pages 9 to 22 form an integral part of these financial statements.
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Lafarge Africa Plc
Consolidated and Separate Statement of Changes in Equity for the period ended 30 June 2020
Group
Share
capital
Share
premium
Retained
earnings
Foreign currency
translation
reserve
Other reserves
arising on business
combination and re-
organisations Total
Non-controlling
interests Total equity
Notes N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000
Balance at 1 January 2019 4,336,714 350,945,747 138,272,355 9,364,261 (368,683,312) 134,235,765 305,322 134,541,088
Profit for the period to 30 June 2019 - - 9,008,887 - - 9,008,887 - 9,008,887
Other comprehensive income/(loss) (Net of tax) - - - (589,094) - (589,094) - (589,094)
Total comprehensive income for the period - - 9,008,887 (589,094) - 8,419,793 - 8,419,793
Transactions with owners:
Issue of shares 20 3,717,185 85,495,223 - - - 89,212,408 - 89,212,408
Right issue costs - (1,292,240) - - - (1,292,240) - (1,292,240)
Total transaction with owners 3,717,185 84,202,983 - - - 87,920,168 - 87,920,168
Balance at 30 June 2019 8,053,899 435,148,730 147,281,242 8,775,167 (368,683,312) 230,575,726 305,322 230,881,048
Adjustment on initial application of IFRS 16, net of tax - - (3,102,320) - - (3,102,320) - (3,102,320)
Adjusted balance at 30 June 2019 8,053,899 435,148,730 144,178,922 8,775,167 (368,683,312) 227,473,406 305,322 227,778,728
Profit for the period (July 1 to Dec 31 2019) - - 106,095,465 - 106,095,465 - 106,095,465
Other comprehensive income/(loss) (Net of tax) - - (65,148) - - (65,148) - (65,148)
Total comprehensive income for the period - - 106,030,317 - - 106,030,317 - 106,030,317
Adjustment on initial application of IFRS 16, net of tax - - 163,434 - - 163,434 - 163,434
Transaction with owners:
Reserves released upon disposal of subsidiary company - (94,571,348) - 114,554,255 19,982,907 - 19,982,907
Elimination of foreign currency translation reserve on loss of control of subsidiary - - (8,736,064) - (8,736,064) - (8,736,064)
Elimination of non controlling interest on loss of control of subsidiary - - - - - - (305,322) (305,322)
Total transaction with owners 3,717,185 84,202,983 (94,571,348) (8,736,064) 114,554,255 99,167,010 (305,322) 98,861,688
Balance at 31 December 2019 8,053,899 435,148,730 155,801,325 39,103 (254,129,057) 344,914,001 - 344,914,001
Balance at 1 January 2020 8,053,899 435,148,730 155,801,325 39,103 (254,129,057) 344,914,001 - 344,914,001
Profit for the period - - 23,329,257 - - 23,329,257 - 23,329,257
Total comprehensive income for the year - - 23,329,257 - - 23,329,257 - 23,329,257
-
- -
Transaction with owners:
Dividends declared - - (16,107,796) - (16,107,796) - (16,107,796)
Total transaction with owners - - (16,107,796) - - (16,107,796) - (16,107,796)
Balance at 30 June 2020 8,053,899 435,148,730 163,022,786 39,103 (254,129,057) 352,135,462 - 352,135,462
Attributable to equity holders of the parent
The accompanying notes and significant accounting policies on pages 9 to 22 form an integral part of these financial statements.
6
Lafarge Africa Plc
Consolidated and Separate Statement of Changes in Equity for the period ended 30 June 2020
Company
Share
capital
Share
premium
Retained
earnings
Foreign currency
translation
reserve
Other reserves arising on
business combination and
re-organisations Total equity
Notes N'000 N'000 N'000 N'000 N'000 N'000
Balance at 1 January 2019 4,336,714 350,945,748 92,140,223 39,103 (191,718,064) 255,743,724
Profit for the period to 30 June 2019 - - 21,845,699 - - 21,845,699
Total comprehensive income for the period - - 21,845,699 - - 21,845,699
Transaction with owners:
Issue of shares 20 3,717,185 85,495,223 - - - 89,212,407
Right issue costs - (1,292,240) - - - (1,292,240)
Total transaction with owners 3,717,185 84,202,983 - - - 87,920,167
Balance at 30 June 2019 8,053,899 435,148,731 113,985,922 39,103 (191,718,064) 365,509,590
Adjustment on initial application of IFRS 16, net of tax (3,092,330) (3,092,330)
Adjusted balance at 30 June 2019 8,053,899 435,148,731 110,893,592 39,103 (191,718,064) 362,417,260
Profit for the period (July 1 to Dec 31 2019) - - 875,917 - - 875,917
Other comprehensive income (Net of tax) - - (65,148) - - (65,148)
Total comprehensive income for the period - - 810,770 - - 810,770
Adjustment on initial application of IFRS 16, net of tax 153,444 153,444
-
Transaction with owners:
Movement in reserves arising from business combination (1,959,915) (1,959,915)
- - - - (1,959,915) (1,959,915)
At 31 December 2019 8,053,899 435,148,731 111,857,805 39,103 (193,677,979) 361,421,559
At 1 January 2020 8,053,899 435,148,731 111,857,805 39,103 (193,677,979) 361,421,559
Profit for the year - - 21,527,653 - - 21,527,653
Total comprehensive income for the period - - 21,527,653 - - 21,527,653
Transaction with owners:
Dividends declared - - (16,107,796) - - (16,107,796)
Total transaction with owners - - (16,107,796) - - (16,107,796)
Balance at 30 June 2020 8,053,899 435,148,731 117,277,662 39,103 (193,677,979) 366,841,416
Attributable to equity holders of the parent
The accompanying notes and significant accounting policies on pages 9 to 22 form an integral part of these financial statements.
7
Lafarge Africa Plc
30 Jun
2020
30 Jun
2019**
30 Jun
2020
30 Jun
2019*
Notes N'000 N'000 N'000 N'000
Cash flows from operating activities:
Profit after tax 23,329,257 9,008,887 21,527,653 21,845,699
Adjustments to reconcile Profit for the year to net cash
flows:Depreciation 11.2 13,527,112 15,558,127 12,612,238 12,407,305
Amortization of intangible asset 12 544,307 227,320 476,215 3,500
Impairment of investments in subsidiaries - - - 1,094,361
Other non-cash items 27.3 (556,039) (702,796) (223,316) 86,316
Net unrealized foreign exchange loss 580,773 (3,348,711) 506,485 (1,483,741)
Finance costs 9(b) 4,225,228 15,169,270 4,598,840 14,629,121
Finance income 9(a) (377,049) (989,652) (350,141) (767,454)
Dividend income 7.3 - - - (7,934,773)
Share of loss from joint venture - 45,148 - -
Income tax expense/(credit) 10.1 5,427,919 265,163 4,461,692 (1,137,585)
Provisions and net movement on employee benefits 27 346,610 373,017 352,483 196,174
Change in net working capital 27.1 (12,991,324) 1,478,525 (19,605,283) (5,126,522)
Cash flow generated from operations 34,056,794 37,084,298 24,356,866 33,812,401
Income taxes paid (1,590,290) (594,594) (1,134,042) -
Net cash flow generated from operating activities 32,466,504 36,489,704 23,222,824 33,812,401
Cash flows from investing activities
Acquisition of property, plant and equipment 11.1 (5,175,037) (7,892,051) (2,898,012) (3,785,104)
Acquisition of intangible assets 12 - (243,727) - -
Interest received 83,027 370,728 56,119 156,166
Dividend received 7.3 - - - 7,934,773.00
Net cash flow used in investing activities (5,092,010) (7,765,050) (2,841,893) 4,305,835
Cash flows from financing activities
Interest paid (3,999,666) (8,596,302) (3,805,467) (7,815,254)
Dividend paid to equity holders of the company 26.1 (2,607,385) - (2,607,385) -
Transaction cost on rights issue - (589,856) - (589,856)
Net proceed from rights issues - 89,212,407 - 89,212,407
Proceeds from loans and borrowings 22.1 982,017 5,358,703 982,017 2,500,000
Repayment of lease liabilities 22.1 (3,421,257) (4,385,970) (3,421,257) (4,385,970)
Repayment of loans and borrowings 22.1 (5,427,666) (89,487,324) (1,071,354) (98,187,688)
Net cash inflow used in financing activities (14,473,957) (8,488,342) (9,923,446) (19,266,361)
Net increase/ (decrease) in cash and cash equivalents
from continuing operation
12,900,537 20,236,311 10,457,485 18,851,874
Cash and cash equivalents at the beginning of the year 19.2 25,700,557 (23,808,042) 23,987,650 (7,762,363)
Effects of exchange rate changes on cash and cash
equivalents
(97,670) (628,545) (62,894) 1,144
Cash and cash equivalents at the end of the period 19.2 38,503,424 (4,200,276) 34,382,240 11,090,655
The accompanying notes and significant accounting policies on pages 9 to 22 form an integral part of these financial statements.
Group Company
Consolidated and Separate Statement of Cash Flows for the period ended 30
June 2020
** 2018 group cashflow was represented for the purpose of fair presentation of comparatives splitting continuing operation from discontinued
*Subsequent to the merger of the Company with Lafarge Readymix Nig Ltd during 2019, the 2020 Company numbers include the merged entity's
financial result. The comparative numbers are those of the Company prior to the merger .
** Following the disposal of Lafarge South Africa Holdings (Pty) Limited (LSAH) effective 31 July 2019, comparative information in 2019 for the
statement of cashflows has not been re-presented.
8
Lafarge Africa Plc
1 Business description
30th June 2020 31st Dec 2019 30th June 2019
AshakaCem Limited AshakaCem Limited AshakaCem Limited
Wapsila Nigeria Limited Wapsila Nigeria Limited Lafarge Ready Mix Nigeria Limited
Lafarge South Africa Holdings
(PTY) Limited
Wapsila Nigeria Limited
1.1 Securities Trading Policy
2
2.1 Basis of preparation
i) Compliance with IFRS
ii) Basis of measurement
- defined benefit pension plans - plan assets measured at fair value
- inventory - lower of cost and net realisable value
- lease liabilities- measured at present value of future lease payments
In compliance with Rule 17.15 Disclosure of Dealings in Issuers’ Shares, Rulebook of the Exchange 2015 (Issuers Rule) Lafarge Africa Plc
maintains a Security Trading Policy which guides Directors, Audit Committee members, employees and all individuals categorized as insiders
as to their dealing in the Company’s shares. The Policy undergoes periodic reviews by the Board and is updated accordingly. The Company
has made specific inquiries of all its directors and other insiders and is not aware of any infringement of the policy during the period under
review.
These consolidated and separate financial statements cover the financial period from 1 January 2020 to 30 June 2020 with 2019 as
comparative.
Notes to the Consolidated and Separate Financial Statements for the period ended
30 June 2020
Lafarge Africa PLC (Lafarge Africa) was incorporated in Nigeria on 26 February, 1959 and commenced business on 10 January 1961. The
Company formerly known as Lafarge Cement WAPCO Nigeria Plc changed its name after a special resolution was passed by the
shareholders at an Annual General Meeting held on Wednesday 9 July 2014. The change of name became effective with the acquisition of
shares in Lafarge South Africa Holdings (Proprietary) Limited (LSAH) which was disposed in 2019, United Cement Company of Nigeria Limited
(UNICEM), AshakaCem Ltd (AshakaCem) and Atlas Cement Company Limited (Atlas). The Company’s corporate head office is situated at
27B Gerrard Road, Ikoyi, Lagos which is same as the registered office.
Lafarge Africa is in the business of manufacturing and marketing of cement and other cementitious products such as Ready-Mix Concrete,
Aggregates, Fly-Ash etc. On July 15, 2016, Lafarge S.A. France and Holcim Limited, Switzerland two large global players merged to form
LafargeHolcim Group based in Zurich, Switzerland. Consequently Lafarge Africa is now a subsidiary company of Lafarge Holcim.
The Group's subsidiaries are as stated below;
- non-derivative financial instruments – initially at fair value and subsequently at amortized cost using effective interest rate
- derivative financial instruments – measured at fair value
The historical financial information is presented in Naira and all values are rounded to the nearest thousand (N'000), except where otherwise
indicated. The accounting policies are applicable to both the Company and Group.
Summary of significant accounting policies
The Group financial statements of Lafarge Africa Plc for the period ended 30 June 2020 have been prepared in accordance with International
Financial Reporting Standards ("IFRS") and interpretations issued by the IFRS Interpretations Committee (IFRIC) applicable to companies
reporting under IFRS and the requirements of the Companies and Allied Matters Act CAP C.20 Laws of the Federation of Nigeria, 2004 and
the Financial Reporting Council of Nigeria Act, 2011.
Lafarge Africa Plc Group has consistently applied the same accounting policies and methods of computation in its interim condensed
consolidated and separate financial statements as in its 2019 annual financial statements. There were no new standards, interpretations and
ammendments , effective for the first time from 1st January 2020, which had a material effect on the financial statements.
These interim condensed consolidated and separate financial statements of Lafarge Africa Plc Group have been prepared in accordance with
IAS 34 Interim Financial Reporting. They do not include all disclosures that would otherwise required in a complete set of financial statements
and should be read in conjuction with 2019 annual report. The financial statements were prepared on a going concern basis.
The financial statements comprise the consolidated and separate statement of profit or loss and other comprehensive income, the
consolidated and separate statement of financial position, the consolidated and separate of statement of changes in equity, the consolidated
and separate statement of cash flows and the notes to the financial statements.
The financial statements have been prepared in accordance with the going concern assumption under the historical cost concept except for
the following:
9
Lafarge Africa Plc
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000
3 Revenue
Sale of goods 56,844,579 59,868,997 120,540,345 117,885,243 49,427,576 52,079,768 105,532,362 101,579,653
The following is an analysis of revenue by product:
Cement 56,325,278 58,425,073 118,583,704 114,612,331 48,908,275 52,079,768 103,575,721 101,579,653
Aggregate and concrete 519,301 1,443,924 1,956,641 3,272,912 519,301 - 1,956,641 -
Admixtures and other products - - - - - - - -
56,844,579 59,868,997 120,540,345 117,885,243 49,427,576 52,079,768 105,532,362 101,579,653
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000
4 Cost of sales by nature
Variable costs (Note 4.1) 21,144,887 23,273,103 52,512,240 49,323,790 18,133,969 18,955,294 45,554,644 39,974,128
Production costs (Note 4.2) 3,654,374 6,611,004 9,198,982 11,191,422 1,679,410 4,562,884 5,365,422 7,517,202
Maintenance costs 1,651,953 840,587 3,570,271 2,643,778 1,404,593 938,695 3,111,319 2,415,160
Distribution costs 126,915 873,599 525,329 1,942,447 (50,149) 752,721 211,721 1,668,616
Depreciation (Note 11.2) 6,183,893 6,393,524 13,024,023 13,304,130 5,747,865 5,845,730 12,120,975 12,107,226
Amortisation and impairment of intangible assets - 9,552 - 19,105 - - - -
Prepaid medical - - - - - 3,500 - 3,500
32,762,022 38,001,369 78,830,845 78,424,672 26,915,688 31,058,824 66,364,081 63,685,832
4.1 Variable costs
Distribution variable cost 10,909,797 9,754,409 22,625,731 19,293,157 9,723,370 8,513,787 20,074,953 16,582,323
Fuel & power 7,722,278 8,371,894 18,321,659 15,343,710 5,323,288 5,944,416 13,505,302 11,184,993
Raw materials and consumables 2,512,812 5,146,800 11,564,850 14,686,923 3,087,311 4,497,091 11,974,389 12,206,812
21,144,887 23,273,103 52,512,240 49,323,790 18,133,969 18,955,294 45,554,644 39,974,128
4.2 Production costs
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
N'000 N'000 N'000 N'000
5 Selling and marketing expenses
Advertising expenses 102,692 - 182,473 - 102,692 - 182,473 -
Campaign and innovation expenses - - 44,913 - - - 44,913 -
608,471 804,648 1,322,170 1,720,476 608,471 766,566 1,321,987 1,656,509
711,163 804,648 1,549,556 1,720,476 711,163 766,566 1,549,373 1,656,509
Notes to the Consolidated and Separate Financial Statements for the period ended 30 June 2020
Included in the production costs are personnel expenses, by-products costs and electrical energy expenses.
Marketing staff salaries and other related costs
Group Company
Company Group
Group Company
10
Lafarge Africa Plc
Notes to the Consolidated and Separate Financial Statements for the period ended 30 June 2020
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
N'000 N'000 N'000 N'000
6 Administrative expenses by nature
Salaries and other staff related costs 1,779,485 1,719,599 3,879,336 3,777,081 1,779,485 1,670,733 3,877,597 3,662,297
Advance payment of taxes and levies - 249,229 - 738,709 - 249,229 - 738,709
Office and general expenses 544,113 3,716,976 1,373,584 4,745,771 705,274 3,498,014 1,415,166 4,609,566
Depreciation (Note 11.2) 191,715 354,440 503,085 784,186 227,975 300,078 491,263 675,436
Amortisation of intangible assets 229,945 - 544,307 - 164,220 - 476,215 -
Technical service fees 492,310 - 1,529,347 1,243,487 623,420 - 1,529,347 1,170,441
3,237,568 6,040,244 7,829,659 11,289,234 3,500,374 5,718,054 7,789,588 10,856,449
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
N'000 N'000 N'000 N'000
7 Other income
Gain on disposal of property, plant and equipment 83,084 - 83,084 - 83,084 - 83,084 -
Government grants 27,682 27,685 55,366 55,368 27,683 27,683 55,367 55,368
Scrapped and other miscellaneous income 88,759 32,041 14,202 38,993 3,572 39,573 14,201 46,525
Write back of provisions no longer required 883,002 1,243,487 401,383 1,243,487 883,002 1,170,441 401,383 1,170,441
Investment income - - - - - 7,934,773 - 7,934,773
1,082,527 1,303,213 554,035 1,337,848 997,341 9,172,470 554,035 9,207,107
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'0008 Other operating expenses
Write off of assets 55,853 - 55,853 - - - - -
- - - - - - 55,853 - 55,853 - - -
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
N'000 N'000 N'000 N'000
8 Impairment loss on trade receivables
- Impairment (reversal)/loss on trade and other receivables (7,730) 347 19,315 (59,425) (3,280) (7,320) 20,908 (57,322)
(7,730) 347 19,315 (59,425) (3,280) (7,320) 20,908 (57,322)
Group Company
Company Group
Company Group
Group Company
11
Lafarge Africa Plc
Notes to the Consolidated and Separate Financial Statements for the period ended 30 June 2020
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
N'000 N'000 N'000 N'000
9 Finance income and costs
a)
Interest income on current accounts 89,864 644,161 262,142 763,832 178,826 468,675 235,234 541,642
Other finance income 27,691 24 40,302 46 27,691 22 40,302 38
Interest on loan receivable 38,350 104,004 74,605 170,406 38,350 76,321 74,605 170,406
155,905 748,189 377,049 934,284 244,867 545,018 350,141 712,086
b) Finance costs:
Interest on bank overdraft - - - - - - -
Interest on borrowings (Note 22.1) (1,798,746) (5,691,495) (3,905,110) (13,568,595) (2,010,999) (5,828,374) (4,323,006) (14,016,115)
Unwinding of discount on provisions (Note 23.1) (33,318) - (66,636) - (33,318) - (66,636) -
Interest cost on employee's long service award (40,722) (50,815) (82,275) (85,178) (34,323) (32,846) (67,641) (65,692)
Interest cost on staff gratuities (14,258) (14,258) (28,516) (28,517) (14,258) (14,258) (28,516) (28,517)
Bank charges (62,194) (165,187) (142,691) (551,055) (54,828) (215,857) (113,041) (518,797)
Finance costs per statement of cash flows (1,949,238) (5,921,755) (4,225,228) (14,233,345) (2,147,726) (6,091,335) (4,598,840) (14,629,121)
Foreign exchange loss (net) - (287,047) (203,797) 904,138 149,699 (229,297) (124,403) 1,074,218
Finance costs (1,949,238) (6,208,802) (4,429,025) (13,329,207) (1,998,027) (6,320,632) (4,723,243) (13,554,903)
Net finance costs recognised in the profit or loss (1,793,333) (5,460,613) (4,051,976) (12,394,923) (1,753,160) (5,775,614) (4,373,102) (12,842,817)
10 Income tax (credit)/ expense
10.1 Income tax (credit)/ expense recognised in profit or loss
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
3months ended
30/06/2020
3months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
N'000 N'000 N'000 N'000
Current taxation
Company income tax 994,830 661,308 1,427,256 901,161 389,731 20,361 389,731 20,361
Education tax 305,747 - 484,147 249,544 257,345 - 396,882 231,126
Total current tax expense 1,300,577 661,308 1,911,403 1,150,705 647,076 20,361 786,613 251,487
Deferred taxation
Deferred income tax expense/(credit) to profit or loss 2,811,952 666,795 3,516,516 (1,536,731) 2,784,498 515,685 3,675,079 (1,389,072)
Income tax expense/(credit) 4,112,529 1,328,103 5,427,919 (386,026) 3,431,574 536,046 4,461,692 (1,137,585)
Income tax expense/(credit) 4,112,529 1,328,103 5,427,919 (386,026) 3,431,574 536,046 4,461,692 (1,137,585)
10.2 Effective tax rate
6months ended
30/06/2020
6months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
Effective tax rate 18% 2% 16% 0%
Company
The effective tax rate is as follows:
Group Company
Company Group
Bank charges represent Letter of credit charges and other bank account operational charges
Interest income under the effective interest method and other finance income:
Group
12
Lafarge Africa Plc
11 Property, plant and equipment
Group Leasehold Land Buildings Production Plant Capitalised
Spares
Furniture Motor Vehicles Computer
Equipment
Exploration and
evaluation assets
Construction
Work in Progress
**Right of use
assets
Total
N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000
Cost:
As at 1 January 2020 14,866,389 113,852,454 319,958,721 3,340,504 1,303,956 4,060,169 1,721,317 1,959,013 51,204,885 30,244,156 542,511,564
Capital expenditure - - - - - - - - 3,622,553 - 3,622,553
Construction expenditure capitalised - 542,838 3,077,495 61,677 172 438,454 94,318 - (4,214,954) - -
Addition to right of use assets - - - - - - - - - 2,401,412 2,401,412
Disposals - - - - - (142,103) - - - - (142,103)
Write-offs - - (86,254) - - - - - - - (86,254)
Modification of right of use assets - - - - - - - - - (4,060,771) (4,060,771)
- As at 30 June 2020 14,866,389 114,395,292 322,949,962 3,402,181 1,304,128 4,356,520 1,815,635 1,959,013 50,612,484 28,584,797 544,246,401
Accumulated depreciation and impairment losses:
As at 1 January 2020 4,678,264 28,540,844 105,832,601 1,213,112 999,487 3,049,917 1,389,067 145,343 16,144,134 10,721,565 172,714,335
Charge for the year 271,730 1,731,270 7,128,618 - 53,184 193,900 53,956 - - 4,094,454 13,527,112
On disposals - - - - - (49,275) - - - - (49,275)
Write-offs - - (30,401) - - - - - - - (30,401)
As at 30 June 2020 4,949,995 30,272,114 112,930,818 1,213,112 1,052,671 3,194,543 1,443,022 145,343 16,144,134 14,816,019 186,161,771
Carrying amount
As at 30 June 2020 9,916,394 84,123,178 210,019,144 2,189,069 251,457 1,161,977 372,613 1,813,670 34,468,350 13,768,778 358,084,630
At 31 December 2019 10,188,125 85,311,610 214,126,120 2,127,392 304,469 1,010,252 332,250 1,813,670 35,060,751 19,522,591 369,797,229
Company Leasehold Land Buildings Production Plant Capitalised
Spares
Furniture Motor Vehicles Computer
Equipment
Construction
Expenditure
**Right of use
assets
Total
N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000
Cost:
As at 1 January 2020 7,719,084 95,216,480 287,350,011 2,432,409 753,578 3,477,446 1,327,213 30,302,611 30,227,132 458,805,966
Capital expenditure - - - - - - - 1,729,625 - 1,729,625
Construction expenditure capitalised - 462,838 2,419,672 - 173 233,367 94,318 (3,210,368) - -
Addition to right of use assets - - - - - - - - 2,335,686 2,335,686
Disposal - - - - - (142,103) - - - (142,103)
Write-offs - - - - - - - - - -
Modification of right of use assets - - (86,254) - - - - - (4,060,771) (4,147,025)
-
As at 30 June 2020 7,719,084 95,679,318 289,683,429 2,432,409 753,751 3,568,710 1,421,531 28,821,868 28,502,047 458,582,148
Accumulated depreciation and impairment losses:
As at 1 January 2020 4,662,265 23,061,446 93,981,623 1,093,927 634,656 2,571,022 1,049,660 12,394,270 10,706,327 150,155,196
-
Charge for the year 252,218 1,395,406 6,701,365 - 10,380 171,239 53,956 - 4,027,674 12,612,238
Write-offs - - (30,401) - - - - - - (30,401)
As at 30 June 2020 4,914,483 24,456,852 100,652,587 1,093,927 645,036 2,692,986 1,103,616 12,394,270 14,734,001 162,687,758
Carrying amount
As at 30 June 2020 2,804,601 71,222,466 189,030,842 1,338,482 108,715 875,724 317,915 16,427,598 13,768,046 295,894,390
At 31 December 2019 3,056,819 72,155,034 193,368,388 1,338,482 118,922 906,424 277,553 17,908,341 19,520,805 308,650,770
Notes to the Consolidated and Separate Financial Statements for the period ended 30 June 2020
**See note 11.3 for details on right of use assets
**See note 11.3 for details on right of use assets.
13
Lafarge Africa Plc
11.1 Reconciliation of acquisition of property. plant and equipment in the statements of cash flows:
30 June
2020
30 June
2019
30 June
2020
30 June
2019
N'000 N'000 N'000 N'000
Acquisition of property, plant and equipment 3,622,553 10,886,520 1,729,625 5,627,602
Property, plant and equipment accrual 1,552,484 (2,994,469) 1,168,387 (1,842,498)
Property, plant and equipment paid in the
statement of cash flows 5,175,037 7,892,051 2,898,012 3,785,104
11.2 Depreciation
30 June
2020
30 June
2019
30 June
2020
30 June
2019
N'000 N'000 N'000 N'000
Cost of sales (Note 4) 13,024,027 9,746,985 12,120,975 7,349,704
503,085 567,018 491,263 300,078
13,527,112 10,314,003 12,612,238 7,649,782
11.3 Right of Use Assets
Group Leasehold Land Buildings Production Plant Motor Vehicles Total
N'000 N'000 N'000 N'000 N'000
Cost:
As at 1 January 2020 112,441 1,413,218 1,330,227 27,388,270 30,244,156
Additions - 132,119 608,677 1,660,615 2,401,412
Modification of leases - - - (4,060,771) (4,060,771)
As at 30 June 2020 112,441 1,545,337 1,938,904 24,988,115 28,584,797
Accumulated depreciation:
As at 1 January 2020 23,223 740,413 1,274,247 8,683,682 10,721,565
Depreciation charge for the period 11,182 275,736 558,626 3,248,911 4,094,454
As at 30 June 2020 34,405 1,016,149 1,832,873 11,932,593 14,816,019
Carrying amount
As at 30 June 2020 78,036 529,189 106,031 13,055,522 13,768,778
As at 31 December 2019 89,218 672,805 55,980 18,704,588 19,522,591
Company Leasehold Land Buildings Production Plant Motor Vehicles Total
N'000 N'000 N'000 N'000 N'000
Cost:
As at 1 January 2020 112,441 1,396,194 1,330,227 27,388,270 30,227,132
Additions - 66,393 608,677 1,660,615 2,335,686
Modification of leases - - - (4,060,772) (4,060,772)
As at 30 June 2020 112,441 1,462,587 1,938,904 24,988,114 28,502,046
Accumulated depreciation:
As at 1 January 2020 23,223 725,175 1,274,247 8,683,682 10,706,327
Depreciation charge for the period 11,182 274,682 558,626 3,183,185 4,027,674
As at 30 June 2020 34,405 999,857 1,832,873 11,866,867 14,734,001
Carrying amount
As at 30 June 2020 78,036 462,731 106,031 13,121,247 13,768,045
As at 31 December 2019 89,218 671,019 55,980 18,704,588 19,520,805
Notes to the Consolidated and Separate Financial Statements for the period ended
30 June 2020
The Group and Company leases several assets including cement depots, residential apartments, and trucks. The average lease term of the
contracts is 5years.
Depreciation for the year including those charged on Right of Use Asset has been charged as follows:
Group Company
Administrative expenses (Note 6)
CompanyGroup
14
Lafarge Africa Plc
12 Intangible assets
Intangible Assets Work in progress Total
N'000 N'000 N'000
Cost
Balance at 1 January 2019 5,895,065 3,114,037 9,009,102
Arising from deconsolidation of discontinued operation (5,091,287) - (5,091,287)
Reclassification from property,plant and equipments 374,662 374,662
Software expenditure capitalised 3,114,037 (3,114,037) -
Additions 531,386 - 531,386
Balance at 31 December 2019 4,823,863 - 4,823,863
Balance at 1 January 2020 4,823,863 - 4,823,863
Additions - -
Balance at 30 June 2020 4,823,863 - 4,823,863
Accumulated Amortisation
Balance at 1 January 2019 2,814,584 - 2,814,584
Arising from deconsolidation of discontinued operation (2,144,807) (2,144,807)
Reclassification from property,plant and equipments 279,758 279,758
Charge for the year 672,260 - 672,260
Balance at 31 December 2019 1,621,795 - 1,621,795
Balance at 1 January 2020 1,621,795 - 1,621,795
Charge for the period 544,307 544,307
Balance at 31 December 2019 2,166,102 - 2,166,102
Carrying amount
At 30 June 2020 2,657,761 - 2,657,761
At 31 December 2019 3,202,068 - 3,202,068
Cost Intangible Assets Work in progress Total
N'000 N'000 N'000
Balance at 1 January 2019 92,748 3,114,037 3,206,785
Arising on business re-organisation 23,601 - 23,601
Additions 531,386 - 531,386
Reclassification 374,662 374,662
Construction expenditure capitalised 3,114,037 (3,114,037) -
Intercompany transfer (812,534) (812,534)
Balance at 31 December 2019 3,323,900 - 3,323,900
Balance at 1 January 2020 3,323,900 - 3,323,900
Additions - -
Balance at 30 June 2020 3,323,900 - 3,323,900
Accumulated Amortisation
Balance at 1 January 2019 2,280 - 2,280
Arising on business re-organisation 17,016 - 17,016
Reclassification from property,plant and equipments 279,758 279,758
Charge for the year 518,036 - 518,036
Balance at 31 December 2019 817,090 - 817,090
Balance at 1 January 2020 817,090 - 817,090
Charge for the period 476,215 476,215
Balance at 30 June 2020 1,293,305 - 1,293,305
Carrying amount
At 30 June 2020 2,030,595 - 2,030,595
At 31 December 2019 2,506,810 - 2,506,810
Notes to the Consolidated and Separate Financial Statements for the period ended 30
June 2020
Group
Company
Intangible assets represents mineral rights and computer software in the Group's operations.
15
Lafarge Africa Plc
Notes to the Consolidated and Separate Financial Statements for the period ended 30
June 2020
13 Interests in other entities
13.1 Investments in subsidiaries
30 June 2020
Name of entity Principal
activities
Place of
Incorporation
Proportion Cost
% N'000
Ashaka Cement Limited Cement Nigeria 100 63,896,867
Wapsila Nigeria Limited Power Generation
and Sale Nigeria 100 10,000
63,906,867
31 December 2019
Name of entity Principal
Activities
Place of
Incorporation
Proportion Cost
% N'000
Ashaka Cement Limited Cement Nigeria 100 63,896,867
Wapsila Nigeria Limited Power Generation
and Sale Nigeria 100 10,000
63,906,867
13.2 Discontinued operation
Statement of Profit or Loss
3 months ended
'30 June
2019
6 months ended
'30 June
2019
Lafarge South Africa Holdings (PTY) Limited N'000 N'000
Revenue 21,915,538 42,411,025
Cost of sales (21,221,888) (41,126,141)
Gross Profit 693,650 1,284,884
Selling and marketing expenses (198,952) (737,045)
Administrative expenses (2,790,439) (5,891,984)
Other operating expenses (40,484) (61,513)
Operating loss (2,336,226) (5,405,658)
Net finance income/ (costs) 645,714 (728,355)
Share of loss from associates (23,942) (45,148)
Loss before tax (1,714,454) (6,179,161)
Taxation (1,958,964) (651,189)
Results from operating activities, net of tax (3,673,417) (6,830,350)
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
14 Other financial assets N'000 N'000 N'000 N'000
Non-current:
Other financial assets (Note 14.1) 3,739,788 767,253 3,739,788 767,253
3,739,788 767,253 3,739,788 767,253
Current:
Other financial assets (Note 14.2) 1,259,182 1,005,200 1,966,926 1,001,586
4,998,970 1,772,453 5,706,714 1,768,839
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
14.1 Other financial assets - Non current N'000 N'000 N'000 N'000
Loan to CBI Ghana 1,086,961 767,253 1,086,961 767,253
Receivable from third parties 2,652,827 - 2,652,827 -
3,739,788 767,253 3,739,788 767,253
The Group’s principal subsidiaries at 30 June 2020 are set out below. Unless otherwise stated, they have share capital consisting solely of
ordinary shares that are held directly by the Group, and the proportion of ownership interests held equals the voting rights held by the Group. The
place of incorporation is also their principal place of business.
Company Group
Group Company
On the 31st of July 2019, the company completed the sale of its investment, subsequent to the shareholders approval at the annual general
meeting. The investment was sold at US$317,000,000 which was utilized to settle the entire principal (US$ 293,000,000) and accrued interest to
31st July, 2019 (US$23,289,060.55). The subsidiary financial results is represented as a discontinued operation in 2019 . Financial information
relating to the discontinued operation for the 6 months ended June 2019 is set out below:
16
Lafarge Africa Plc
Notes to the Consolidated and Separate Financial Statements for the period ended 30
June 2020
14.2 Other financial assets - Current
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Short term receivables 151,555 9,946 859,299 6,332
Loan to CBI Ghana 1,107,627 995,254 1,107,627 995,254
1,259,182 1,005,200 1,966,926 1,001,586
16 Other assets
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Non current 21,700,097 20,345,783 20,450,756 18,772,032
Current 5,098,092 6,302,759 3,437,656 4,958,939
26,798,189 26,648,542 23,888,412 23,730,971
Advance payment to suppliers 3,429,071 2,519,214 1,815,425 1,283,647
Prepayment for Gas 19,317,784 17,639,060 19,317,784 17,639,060
Prepaid rent 129,407 63,198 119,407 43,198
Prepaid insurance 280,735 1,162,469 243,946 1,074,217
Advance payment to transporters - 1,963,345 - 1,963,345
Advance payment of taxes and levies 1,567,825 936,677 1,567,825 936,677
Letters of credit 1,249,342 1,573,752 - -
Deposit for imports 824,025 790,827 824,025 790,827
26,798,189 26,648,542 23,888,412 23,730,971
17 Inventories
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Raw materials 1,656,181 2,714,880 1,554,707 2,388,786
Semi finished & finished goods 10,507,084 10,617,865 7,327,129 7,819,983
Spare parts 14,179,690 14,062,246 12,100,361 11,715,257
Other supplies (Note 17.1) 5,380,720 5,045,779 3,042,766 3,755,495
31,723,675 32,440,770 24,024,963 25,679,521
17.1 Other supplies
18 Trade and other receivables
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Trade receivables:
Third party sales 2,631,373 2,494,787 2,450,660 2,373,676
Related party sales - - 1,854,646 642,597
2,631,373 2,494,787 4,305,306 3,016,273
Impairment on trade receivables (294,808) (275,494) (285,191) (264,284)
Net trade receivables 2,336,565 2,219,293 4,020,115 2,751,989
Other receivables (Note 18.1) 4,752,897 5,752,292 4,457,846 5,690,738
Due from related parties 208,987 221,465 16,292,495 12,009,959
4,961,884 5,973,757 20,750,341 17,700,697
Net other receivables 4,961,884 5,973,757 20,750,341 17,700,697
Total trade and other receivables 7,298,449 8,193,050 24,770,456 20,452,686
18.1 Analysis of other receivables
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Other current receivables 4,702,729 5,717,708 4,407,678 5,656,154
Staff advances 50,168 34,584 50,168 34,584
4,752,897 5,752,292 4,457,846 5,690,738
Group Company
Group Company
Other supplies consists of safety equipment, packaging materials, traditional fuel and production materials.
Group Company
Group Company
Company Group
17
Lafarge Africa Plc
Notes to the Consolidated and Separate Financial Statements for the period ended 30
June 2020
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
19 Cash and cash equivalents
Restricted cash (Note 19.1) 1,375,834 1,375,834 1,375,834 1,375,834
Cash in hand and at bank (Note 19.2) 38,503,424 25,728,108 34,382,240 24,015,201
Cash and cash equivalents in the statement of financial
position39,879,258 27,103,942 35,758,074 25,391,035
19.1 Restricted cash
19.2 Cash and cash equivalents in the statement of cash flows
For the purpose of cash flow statement, cash and cash equivalents comprises:
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Cash in hand and at bank 38,503,424 25,728,108 34,382,240 24,015,201
Less: bank overdrafts - (27,552) - (27,552)
Cash and cash equivalents in the statement of cash 38,503,424 25,700,556 34,382,240 23,987,649
20 Share capital and Share premium
20.1 Share capital
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Authorised:
20,000,000,000 ordinary shares of 50k each 10,000,000 10,000,000 10,000,000 10,000,000
Issued and fully paid
Ordinary shares of 50k each
No of shares Share capital
'000 N'000
At 1 January 2020 16,107,796 8,053,899
Issued during the period - -
At 30 June 2020 16,107,796 8,053,899
At 1 January 2019 8,673,429 4,336,715
Issued during the year 7,434,367 3,717,184
At 31 December 2019 16,107,796 8,053,899
20.2 Share premium
No of shares Share premium
N'000
At 1 January 2020 16,107,796 435,148,731
Issued during the year - -
At 30 June 2020 16,107,796 435,148,731
At 1 January 2019 8,673,429 350,945,748
Issued during the year 7,434,367 85,495,223
Right issue costs - (1,292,240)
At 31 December 2019 16,107,796 435,148,731
Group Company
Group
Company
As at period end, cash and cash equivalents comprised of restricted cash which represents unclaimed dividend.
Company
Group
18
Lafarge Africa Plc
Notes to the Consolidated and Separate Financial Statements for the period ended 30
June 2020
21 Earnings per share
6months ended
30/06/2020
6months ended
30/06/2019
6months ended
30/06/2020
6months ended
30/06/2019
N'000 N'000 N'000 N'000
Profit attributable to equity holders of the Company from
continuing & discontinued operation
23,329,257 9,008,887 21,527,653 21,845,699
Profit attributable to equity holders of the Company from
continuing operation
23,329,257 15,839,237 21,527,653 21,845,699
Weighted average number of ordinary shares in issue
(Basic)
16,107,796 16,107,796 16,107,796 16,107,796
Continuing operations & discontinued operation:
Basic earnings per share (Kobo) 145 56 134 136
Continuing operations:
Basic earnings per share (Kobo) 145 98 134 136
22 Loans and borrowings
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Non-current 9,921,455 52,664,863 7,611,211 45,899,963
Current 45,030,586 11,520,252 48,510,183 14,666,562
Total loans and borrowings 54,952,041 64,185,115 56,121,394 60,566,525
Split into:
Power fund 6,540,186 12,373,343 3,302,439 4,181,322
Bond 33,982,574 33,849,197 33,982,574 33,849,198
Bank Loans 2,017,786 604,026 1,440,222 604,025
Related party loan - - 4,993,700 4,582,413
Lease liabilities 12,411,495 17,358,549 12,402,459 17,349,567
Total loans and borrowings 54,952,041 64,185,115 56,121,394 60,566,525
22.1 Movement in loans and borrowings
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
At 1 January 64,185,115 266,207,059 60,566,525 250,077,462
Arising from deconsolidation of discontinued operation - (24,124,904) - -
Lease liabilities at January 1, 2019 - 22,629,674 - 22,614,117
Additions:
Finance lease 2,228,112 4,164,695 2,228,112 4,164,695
Loan received 982,017 5,358,703 982,017 2,500,000
67,395,244 274,235,227 63,776,654 279,356,274
Interest expensed 3,841,212 18,125,050 4,434,266 18,981,016
Interest paid on borrowings (2,747,724) (9,104,955) (2,583,175) (9,104,955)
Interest paid on leases (1,109,251) (3,242,545) (1,109,251) (3,242,545)
Interest paid- non cash - (8,399,478) - (8,399,478)
Principal repaid (5,427,666) (92,301,404) (1,071,354) (101,903,582)
Repayment of lease liabilities (3,421,257) (9,435,820) (3,421,257) (9,429,245)
Principal repaid-non cash - (105,690,960) - (105,690,960)
Impact of reassessment and modification of leases (3,904,489) - (3,904,489) -
Impact of restructuring (Note 24) 325,972 - - -
At Closing 54,952,041 64,185,115 56,121,394 60,566,525
Earnings per share is calculated by dividing the profit/(loss) attributable to equity holders of the Company by the weighted average number of
ordinary shares outstanding at the end of the reporting period.
Group
Group Company
Company
Group Company
19
Lafarge Africa Plc
23 Provisions
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Non current (Note 23.1) 775,341 1,011,285 452,412 547,403
Current (Note 23.2) 768,727 677,349 711,351 604,451
1,544,068 1,688,634 1,163,763 1,151,854
23.1 Non current
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
Site restoration cost N'000 N'000 N'000 N'000
At 1 January 1,011,285 3,645,751 547,403 618,970
Arising on business re-organisation - - - 57,061
Arising from deconsolidation of discontinued operation - (2,588,713)
Provision made - 576,103 - 296,368
Utilised (302,580) (769,940) (161,627) (513,481)
Unwinding of discount (Note9(b)) 66,636 148,084 66,636 88,485
At closing 775,341 1,011,285 452,412 547,403
23.2 Current
Group Productivity
bonus
Total
N'000 N'000
At 1 January 2019 1,281,247 1,281,247
Arising from deconsolidation of discontinued operation (97,267) (97,267)
Reclassification (130,673) (130,673)
Provision made during the year 915,835 915,835
Payment in the year (1,291,793) (1,291,793)
At 31 December 2019 677,349 677,349
At 1 January 2020 677,349 677,349
Provision made during the period 1,049,261 1,049,261
Payment in the period (957,883) (957,883)
At closing 768,727 768,727
Company Productivity
bonus
Total
N'000 N'000
At January 2019 845,328 845,328
Arising on business re-organisation 104,361 104,361
Provision made during the year 819,688 819,688
Payment in the year (1,164,926) (1,164,926)
At 31 December 2019 604,451 604,451
At 1 January 2020 604,451 604,451
Provision made during the period 918,315 918,315
Payment in the period (811,415) (811,415)
At closing 711,351 711,351
24 Deferred income 30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Non-current 1,868,608 2,307,466 1,289,673 1,345,039
Current 406,606 539,263 110,732 110,732
2,275,214 2,846,729 1,400,405 1,455,771
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Opening balance 2,846,729 2,913,054 1,455,771 1,566,502
Addition - 187,633 - -
Impact of restructuring (Note 22.1) (325,972) - - -
Grant released (245,543) (253,958) (55,366) (110,731)
Closing balance 2,275,214 2,846,729 1,400,405 1,455,771
25 Employee benefit obligations
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
Non current N'000 N'000 N'000 N'000
Employee long service award scheme 1,751,075 1,309,568 1,502,318 1,085,095
Staff gratuities 491,074 566,556 491,074 566,556
2,242,149 1,876,124 1,993,392 1,651,651
Group Company
Company
The deferred revenue is as a result of the benefit received from a below-market-interest rate government loan (CBN/BOI Intervention Fund loans). The revenue is
recognised in profit or loss over the useful life of the asset financed with the loan.
Notes to the Consolidated and Separate Financial Statements for the period ended 30 June 2020
Company
Group
Group
Group
Group Company
Company
20
Lafarge Africa Plc
Notes to the Consolidated and Separate Financial Statements for the period ended 30 June 2020
25.1 Employee long service award scheme
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Opening balance 1,309,568 1,412,777 1,085,095 1,137,419
Arising on business re-organisation - - - 40,213
Service cost 359,231 175,450 349,582 156,330
Interest cost (Note9b)) 82,276 201,016 67,641 168,076
Total amount recognised in profit or loss 441,507 376,466 417,223 324,406
Remeasurements:
Plan amendment - (196,560) - (177,738)
Loss from change in assumptions - (68,671) - (44,954)
Experience adjustment gains - (75,265) - (81,190)
Total amount recognised in profit or loss - (340,496) - (303,882)
Benefits paid - (139,179) - (113,061)
Closing balance 1,751,075 1,309,568 1,502,318 1,085,095
26 Trade and other payables
Trade payables
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Trade payables 19,560,225 18,941,999 15,051,508 15,577,803
Related party - technical service fee 5,933,021 5,691,389 5,644,976 5,428,974
25,493,246 24,633,388 20,696,484 21,006,777
Other payables:
Customers' deposits 8,015,929 19,770,478 7,559,943 18,477,116
Related companies 2,449,886 2,587,574 14,431,365 14,314,010
Withholding tax payable 11,739 1,829,293 11,739 1,829,293
Value added tax payable 1,675,318 1,409,042 1,447,237 1,320,052
Employee provisions and other liabilities 213,018 309,137 1,483 238,211
Accruals 7,724,839 8,144,599 6,812,637 8,021,708
Other payables 11,532,846 11,034,386 7,466,869 7,370,479
Dividend payable (note 26.1) 13,500,411 - 13,500,411 -
45,123,986 45,084,509 51,231,684 51,570,869
70,617,232 69,717,897 71,928,168 72,577,646
26.1 Dividend paid to equity holders of the company
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
At 1 January - 4,220,596 - 4,220,596
Dividend declared 16,107,796 - 16,107,796 -
Payment to the equity holders of the parent (2,607,385) (4,220,596) (2,607,385) (4,220,596)
At 31 December 13,500,411 - 13,500,411 -
26.2 Dividend paid
30 June
2020
31 Dec
2019
30 June
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Local equity holders 2,607,385 11,845,272 2,607,385 11,845,272
Total 2,607,385 11,845,272 2,607,385 11,845,272
Dividend paid in current period was paid to local equity holders relating to 2019 dividend.
27 Additional cash flow information
6 months ended
30 June
2020
6 months ended
30 June
2019
6 months ended
30 June
2020
6 months ended
30 June
2019
N'000 N'000 N'000 N'000
27.1 Working capital with adjustments after adjustment for non-cash movements:
Increase in inventories 717,095 1,221,280 1,654,558 1,226,295
(Decrease)/increase in trade and other receivables 875,286 (4,409,279) (4,338,678) (12,697,805)
(Decrease)/increase in other assets (149,647) (7,625,613) (157,441) (6,932,558)
Increase/decrease in other financial assets (3,226,517) (229,066) (3,937,875) (207,968)
Increase/ (decrease) in trade and other payables (11,207,541) 12,521,203 (12,825,848) 13,485,514
(12,991,324) 1,478,525 (19,605,283) (5,126,522)
Group Company
Group Company
The amount arising from the Group and Company’s obligations in respect of its employee long service award schemes
Group Company
Group Company
The following dividend were paid during the year:
The balance on dividend payable is due to Caricement B.V. and Associated International Cement Ltd for the year 2019
Group Company
21
Lafarge Africa Plc
Notes to the Consolidated and Separate Financial Statements for the period ended 30 June 2020
27.2 Provisions and net movement on employee benefit
6 months ended
30 June
2020
6 months ended
30 June
2019
6 months ended
30 June
2020
6 months ended
30 June
2019
N'000 N'000 N'000 N'000
Retirement benefit obligations - service cost - 314,021 - -
Employee Long Service Award - service cost 359,231 73,573 349,582 59,364
Productivity bonus payment (957,883) (1,167,403) (811,415) (845,327)
Provision for productivity bonus for the year 1,049,261 1,152,826 918,315 982,137
346,610 373,017 352,483 196,174
27.3 Other non cash items
6 months ended
30 June
2020
6 months ended
30 June
2019
6 months ended
30 June
2020
6 months ended
30 June
2019
N'000 N'000 N'000 N'000
Gain on sale of property plant and equipment (Note 38.2) (83,084) - (83,084) -
Impairment allowance on trade receivables 19,315 61,513 20,908 -
Movement in site restoration cost (302,580) (651,937) (161,627) 141,681
Government grants (Note 24) (245,543) (112,372) (55,366) (55,365)
(556,039) (702,796) (223,316) 86,316
Group Company
Group Company
22