MIRA
INFORM REPORT
|
Report Date : |
20.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
COPPERBELT
ENERGY CORPORATION PLC |
|
|
|
|
Registered Office : |
23rd Avenue, Nkana East, P.o Box 20819,
Kitwe |
|
|
|
|
Country : |
Zambia |
|
|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
21.11.1997 |
|
|
|
|
Com. Reg. No.: |
39070 Zambia |
|
|
|
|
Legal Form : |
Joint Stock Company, Limited by Shares |
|
|
|
|
Line of Business : |
Retailers of Transmission and Distribution of Power etc |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 500,000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
COMPANY REPORTED
COPPERBELT
ENERGY CORPORATION PLC
Other Name CEC
Principal Address
23rd Avenue, Nkana East, P.o Box 20819, Kitwe, Zambia
Telephone: +260-2244556/
2244000
Fax: +260-2244040
Email: info@cec.com.zm
Internet: www.copperbeltenergy.com
summary
Established: 21 November
1997
Registration: 39070 Zambia
Legal Form: joint stock company,
Limited by shares
Stock Listing: Listed on Lusaka
Stock Exchange
Workforce
2007
400
Office & Factories
Head offices Plot No. 3614, 23rd Avenue, Nkana East,
Kitwe, Zambia
Branches Lusaka
Company Profile
Paid in Capital $ 100,001
Subscribed Capital $ 100,001
Shareholders
Name Position Amount
Ratio
Mr. Neil Croucher CEO
Mr. Humphrey
Mulela M. Director
Mr. Hanson Sindowe Chairman
Mr. Joseph Mwansa
Chikolwa Director
Mr. Jean Madzongwe Director
Mr. John Kakungu
Kaite Director
National Grid
Transco, UK Shareholder 3,850,000 38.50%
Cinergy Zambia BV Shareholder 3,850,000 38.50%
ZCCM Investments
Holdings Plc Shareholder 2,000,000 20.00%
Local Technical
Team of Power Division Shareholder 300,000 3.00%
Zambian Government Shareholder 1 0.00%
Total 100.00%
Credit Opinion
Our proposed
credit amount of USD 500,000 is recommendable
Affiliated Companies
Company (1) Zambian fibre optic telecommunications network
Company (2) POWER SPORTS LIMITED
Management/ Directors
|
President/
CEO (1) |
|
|
Name |
Mr. Neil Croucher |
|
Date of Birth |
1954 |
|
Education |
Graduated from UOSA, Cape Town (Major : Electrical Engineering) |
|
Work Experience |
28 years in this line of business |
|
Major Experience (Last Position) |
(1996 – 1999) Cape Town Electricity
Company (President
& CEO) |
|
Remarks |
Top Decision Maker |
|
President/
CEO (2) |
|
|
Name |
Mr. Hanson Sindowe |
|
Date of Birth |
1965 |
|
Education |
Graduated from University of Zambia (Major : Electrical Engineering) |
|
Work Experience |
28 years in this line of business |
̃ Top decision maker is the person who has the
ultimate authority or power to make important managerial decisions. He/She may
or may not be officially registered as a president or an executive director.
Business Activities
Retailers of
transmission and distribution of power etc
Terms of payment
Buying terms 30% in cash, 70% on credit
Selling terms 80% in cash, 20% on credit
Suppliers
Various companies
Customers
Public in General
Recent Sales
US $. 131,746,000 (2007)
Exports
None
Export Ratio
20.0%
Import Ratio
0.0%
Domestic Market Share
52.0%
Banking relationship
Main Banks
Citibank Zambia
Limited
Stanbic Bank
Zambia
Auditors
KPMG
Credit Check of Subject,
President & CEO (as of report date)
Payment Morale: In the documents at our disposal
nothing adverse has been shown so far.
CREDIT RATING: Financial situation is very
good.
COMMENTS
Maximum credit we recommend is USD 500,000 outstanding at any one time.
BALANCE SHEET
|
|
(In
000 US $.) |
||
|
As at 31 December |
2007 |
2006 |
|
|
Assets |
|
|
|
|
Property, plant and equipment |
115,591 |
114,055 |
|
|
Investment |
3 |
3 |
|
|
Total non-current assets |
115,594 |
114,058 |
|
|
Current Assets |
|
|
|
|
Inventories |
1,307 |
1,136 |
|
|
Trade and other receivables |
16,372 |
14,633 |
|
|
Cash and cash equivalents |
23,208 |
1,626 |
|
|
Total current assets |
40,887 |
17,395 |
|
|
Total assets |
156,481 |
131,453 |
|
|
Equity |
|
|
|
|
Issued capital |
100 |
100 |
|
|
Share premium |
148 |
148 |
|
|
Retained earnings |
45,382 |
65,432 |
|
|
Total equity |
45,630 |
65,680 |
|
|
Interest-bearing loan |
32,597 |
5,300 |
|
|
Long Term Creditor |
4,690 |
- |
|
|
Provisions |
7,000 |
500 |
|
|
Deferred Employee Benefits |
2,093 |
2,338 |
|
|
Deferred tax liability |
32,586 |
33,303 |
|
|
Total noncurrent liabilities |
78,966 |
41,441 |
|
|
Current Liabilities |
|
|
|
|
Current portion of interest-bearing loan |
2,703 |
1,300 |
|
|
Trade and other payables |
20,868 |
19,391 |
|
|
Bank overdraft |
5,736 |
1,562 |
|
|
Tax payable |
2,584 |
2,079 |
|
|
Total current Liabilities |
31,891 |
24,332 |
|
|
Total Liabilities |
108,995 |
65,773 |
|
|
Total equity and liabilities |
156,481 |
131,453 |
|
INCOME STATEMENTS
|
for the year ended 31 December, |
2007 |
2006 |
|
|
US $’000 |
US $’000 |
|
Revenue |
131,746 |
127,280 |
|
Cost of sales |
(93,000) |
(89,897) |
|
Gross profit |
38,746 |
37,383 |
|
Other operating income |
2,645 |
2,541 |
|
Operating expenses |
(28,085) |
(27,179) |
|
Results from operating activities |
13,306 |
12,745 |
|
Finance income |
319 |
264 |
|
Finance expense |
(2,225) |
(991) |
|
Net finance cost |
(1,906) |
(727) |
|
Profit before tax |
11,400 |
12,018 |
|
Income tax expense |
(4,149) |
(4,103) |
|
Profit for the year |
7,251 |
7,915 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.46.32 |
|
UK Pound |
1 |
Rs.83.57 |
|
Euro |
1 |
Rs.65.90 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to
assess SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment
record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)