MIRA
INFORM REPORT
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Report Date : |
10th
February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
ZAMBIA
SUGAR PLC |
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Registered Office : |
Lobombo Road, Nakambala Estate, P.O. Box: 670240, Mazabuka, Zambia |
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Country : |
Zambia |
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Date of Incorporation : |
13.09.1959 |
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Com. Reg. No.: |
2880 |
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Legal Form : |
Limited
Liability Company |
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Line of Business : |
Owners and operators of a sugar plantation and refinery & produces
sugar, molasses, jams and syrup. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
KWACHA
8,000,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COmpany NAME
ZAMBIA
SUGAR PLC
ADDRESS
Street : Lobombo Road
Area : Nakambala Estate
P.O.
Box : 670240
Town : Mazabuka
Country : Zambia
Telephone :
(260 32) 30666 / 30144 / 31111 / 31109
Fax : (260 32) 30110
Shortform
Name : Zambia Sugar (ZS)
SENIOR COMPANY PERSONNEL
Name Position
1.
Paul Derolillard Managing Director
2.
Jeff Blumberg Financial Director
3.
Rabecca Katowa Marketing Director
4.
Doreen Kabunda Human Recources Manager
5.
Lovemore Sievu Corporate Affairs Manager
Total
Employees : 4,000-6,000 (number fluctuates according to the work in hand)
PAYMENTS
No
complaints have been heard regarding payments from local suppliers or banks.
Subject
is the largest sugar producer in Zambia.
We
consider it is acceptable to deal with subject for LARGE amounts, although it
is normal acceptable practice for international suppliers to deal on secured
terms with Zambian importers.
Opinion
on maximum credit : KWACHA
8,000,000,000
Trade
risk assessment : Normal
Opinion
on the credit figure of RANDS 30,000,000 :
The
above figure is than normally seen in one amount, however could prove
admissible in a short series of transactions provided the total indebtedness is
strictly monitored.
TRADE REFERENCES
NAME :
PYRAMID HOLDINGS (PTY) LTD
P.O.
Box : 40381
Town :
Gaborone
Country :
Botswana
NAME :
CAMECO INDUSTRIAL INC
P.O.
Box : 968
Town :
Thibodaux
State :
LA 70301
Country :
USA
NAME :
EWART CHAIN LTD
Street :
Colombo Strett
Town :
Derby DE3 8LX
Country :
UK
NAME :
TATE & LYLE PROCESS TECH
Town :
21 Delligburn, Greenock PA 15 4TP
Country :
Scotland, UK
NAME :
JOHN THOMPSON LTD
Town :
Cape Town
Country :
South Africa
PRINCIPAL BANKERS
NAME :
BARCLAYS BANK OF ZAMBIA LTD
Branch :
Cairo Road
P.O.
Box : 31936
Town :
Lusaka
Telephone : (260 1) 228858
AUDITORS
Deloutte
& Touch
Lusaka
FINANCIAL INFORMATION
Abridged
Balance sheet as at 31 March 2005 showed :
ASSETS
Property,
plant and
equipment : KWACHA 98,131,000,000
- 2004 - exact
: KWACHA 101,921,000,000 - 2005 - exact
Cane
roots : KWACHA
40,413,000,000 - 2004 - exact
: KWACHA
52,900,000,000 - 2005 - exact
Current
assets : KWACHA 178,365,000,000 - 2004 - exact
: KWACHA 224,401,000,000 - 2005 - exact
Net
cash : KWACHA 48.412,000,000 - 2004 - exact
: KWACHA
49,765,000,000 - 2005 - exact
Total
assets : KWACHA 365,321,000,000 - 2004 - exact
: KWACHA 428,987,000,000 - 2005 - exact
EQUITY AND LIABILITIES
Capital
and reserves : KWACHA 237,203,000,000 - 2004 - exact
: KWACHA 260,927,000,000 - 2005 - exact
Deferred
taxation : KWACHA 39,766,000,000
- 2004 - exact
: KWACHA
43,343,000,000 - 2005 - exact
Deferred
employee
liabilities :
KWACHA 3,778,000,000 - 2004 - exact
: KWACHA 2,887,000,000 - 2005 - exact
Current
liabilities : KWACHA
84,574,000,000 - 2004 - exact
: KWACHA 121,830,000,000 - 2005 - exact
Total
equity and
liabilities :
KWACHA 365,321,000,000 - 2004 - exact
: KWACHA 428,987,000,000 - 2005 - exact
PROFIT AND LOSS ACCOUNT
Revenue : KWACHA
51,300,000 - 1986 - exact
: KWACHA 262,300,000 - 1987 - exact
: KWACHA 297,400,000 - 1988 - exact
: KWACHA 400,400,000 - 1989 - exact
: KWACHA 1,045,500,000 - 1990 - exact
: KWACHA 1,881,600,000 - 1991 - exact
: KWACHA 4,081,300,000 - 1992 - exact
: KWACHA
13,539,100,000 - 1993 - exact
: KWACHA
29,242,083,000 - 1994 - exact
: KWACHA
43,361,473,000 - 1995 - exact
: KWACHA
63,598,000,000 - 1996 - exact
: KWACHA 101,983,592,000 - 1997 - exact
: KWACHA 114,160,919,000 - 1998 - exact
: KWACHA
68,163,043,000 - 1998 - exact
: KWACHA 158,007,614,000 - 1999 - exact
: KWACHA 165,304,323,000 - 2000 - exact
: KWACHA 127,237,444,000 - 2001 - exact*
: KWACHA 224,041,000,000 - 2001 - exact
: KWACHA 283,244,000,000 - 2002 - exact
: KWACHA 215,936,000,000 - 2003 - exact
: KWACHA 432,357,000,000 - 2004 - exact
: KWACHA 486,083,000,000 - 2005 - exact
: KWACHA 501,833,000,000 - 2006 - exact
Profit
from operations : KWACHA 123,394,000,000 - 2004 - exact
: KWACHA 118,856,000,000 - 2005 - exact
Net
financing costs : KWACHA
(4,171,000,000)- 2004 - exact
: KWACHA (843,000,000)- 2005 - exact
Dividends
received : KWACHA 1,275,000,000 -
2004 - exact
: KWACHA 1,275,000,000 - 2005 - exact
Net
Profit : KWACHA 22,700,000 -
1986 - exact
: KWACHA 12,800,000 - 1987 - exact
Net
Loss : KWACHA (16,780,000) - 1988 - exact
Net
Profit : KWACHA 17,350,000 - 1989 - exact
: KWACHA 224,100,000 - 1990 - exact
: KWACHA 96,100,000 - 1991 - exact
: KWACHA 761,200,000 - 1992 - exact
: KWACHA 4,388,600,000 - 1993 - exact
: KWACHA 8,985,609,000 - 1994 - exact
: KWACHA
12,008,262,000 - 1995 - exact
: KWACHA
15,137,000,000 - 1996 - exact
: KWACHA
20,977,330,000 - 1997 - exact
: KWACHA
11,349,721,000 - 1998 - exact
: KWACHA
20,878,673,000 - 1999 - exact
: KWACHA 2,613,653,000 - 2000 - exact
: KWACHA 9,995,343,000 - 2001 - exact*
: KWACHA
33,490,000,000 - 2001 - exact
: KWACHA
40,641,000,000 - 2002 - exact
: KWACHA
44,136,000,000 - 2003 - exact
: KWACHA 120,498,000,000 - 2004 - exact
: KWACHA 119,288,000,000 - 2005 - exact
: not given - 2006
Financial
year ends 31 March.
*
for six months period (1 October 2000 - 31 March 2001)
Previously
subject's financial year ended 31 March. In 1998 the company changed its
financial year to 30 September. In 2001 and 2002 the company returned to 31
March accounting period and in 2003 changed its financial year to 30 September
and in 2004 subject changed ts financial year to 31 March.
LEGAL STATUS AND HISTORY
Date
Started : 13 September 1959
History
: Originally known as Ndola Sugar Company Limited, the company began operations
as a sugar refinery in 1959 in the Ndola area, refining sugar produced at
Chirundu, in Zimbabwe. At independence in 1964, the company changed its name to
Zambia Sugar Company Limited. The government acquired a 51 % stake in the
Zambia Sugar Company Limited in March 1972 through Indeco, a subsidiary of
Zimco. In 1975 Indeco increased its ownership to 78 %. Tate & Lyle
Technical Services Limited began to provide technical and managerial services
via a technical services agreement with the Zambia Sugar Company Limited in
1973. Booker Tate Limited a joint venture of which 50 % is owned by Booker Plc
and 50 % by Tate & Lyle Plc, assumed the function in 1988. Also during the
1980's, the Zambia Sugar Company Limited's management decided to transfer its
sugar refining operations to Nakambala. The Ndola factory was eventually closed
in 1990. On 18 July 1995 the company changed its name to Zambia Sugar Plc, in
order to comply with the 1994 companies Act, which requires that corporations
with more than fifty shareholders use the designation of Public Limited
Company. On 1 August 1995, as part of the Government's privatisation programme,
Zimco sold a 40% interest in ZSPlc to Tale & Lyle Plc. ZSPlc is now a
subsidiary of Tate & Lyle Plc, which holds approximately 50.9% of the
company's ordinary shares. At the same time, CDC acquired 31 % of the shares in
ZSPlc and the balance of Zimco's shares not sold to Tate & Lyle Plc and CDC
were transferred to the ZPTF (approximately 11%). On 1 April 2001 Tate &
Lyle sold their shares to Illovo Sugar (50.86%).
C.R.
No. : 2880
Authorised
Capital : KWACHA 2,767,500,000
Paid
up Capital : KWACHA
2,713,469,000
Limited
Liability Company with the following shareholders :
Percentage
1.
Illovo Sugar Ireland
89.7%
Ultimate
parent company :
Illovo
Sugar South Africa
2.
Institutional investors and members of
general
public 10.3%
ACTIVITIES
The
Company is involved in the following activities :
Owners
and operators of a sugar plantation and refinery. Subject produces sugar,
molasses, jams and syrup.
Brand
Name : "White Spoon"
Production
Capacity
175,000
tonnes - 1997 - exact
190,000
tonnes - 1998 - exact
191,559
tonnes - 1999 - exact
250,000
tonnes - 2000 - exact
200,000
tonnes - 2001 - exact
200,000
tonnes - 2002 - exact
232,000
tonnes - 2003 - exact
231,000
tonnes - 2004 - exact
247,000
tonnes - 2005 - exact
Imports
from USA, UK, Germany, South Africa, Zimbabwe and Botswana.
Exports
to Democratic Republic of Congo, Malawi, Rwanda, Angola, South Africa, Tanzania
and EU.
Principal
overseas suppliers :
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John Thompson Ltd, South Africa
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Douglas Roberts Company, South Africa
FACILITIES
The
Company has the following facilities :
Leased* 17,000 hectares sugar plantation and a
refinery in Nakambola Estate, Mazabuka as well as two offices elsewhere.
*
99 years
BRANCH OFFICES
1.
Malambo Road 1646, Endola
PO
Box : 30489
Lusaka
Telephone :
(260 26) 246137 / 241028 / 245714 / 245572
Fax :
(260 26) 245009
2.
Nakambala Road
PO
Box : 230032
Ndola
Telephone :
(260 26) 650541/3
Fax : (260 26) 650671
SPECIAL NOTE
Please
note Malambo Road 1646 is Subject's branch office.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution
needed for credit transaction. It has above average (strong) capability for
payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory
capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry
similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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