Cambria Africa sees further improvement

Cambria Africa has announced a further improvement in operating results for the year ended 31 August.

Final audited results are expected to be released in early 2017.

Cambria said Payserv achieved $5.4 million in revenues, an increase of 7.8% from $5.01 million in 2015.

Payserv's consolidated EBITDA for the year increased by 44.7% to $1.78 million from $1.23 million in 2015 while profit before tax increased by 85.7% to $1.43 million from $770,000 in 2015.

Excluding minority interests, EBITDA increased by 70.7% to $1.4 million from $820,000 in 2015, while profit before tax increased by 197% to $1.1 million (0.5 cents per share) from $370,000 (0.2 cents per share) in 2015.

Cambria said Millchem reported positive cash flow from operations following a significant improvement in inventory and trade receivables management.

Millchem's EBITDA loss improved by 74% to a loss of $250,000 from an EBITDA loss of $950,000 in 2015, while its loss before tax improved by 72.5% to a loss of $280,000 (0.1 cents per share) from a loss of $1.02 million (0.5 cents per share) in 2015.

The reduction in losses is also attributable to discontinuing of unprofitable operations in Malawi and Zambia. As a result of these closures, revenue decreased by 39.7% to $3.19 million from $5.29 million in 2015.

Cambria's central costs excluding non-recurring legal costs, decreased by 85.5% to $290,000 from $2 million, underscoring the successful turnaround implemented under the Company's new management.

Interest cost savings - as a result of the repayment of the Nurture and Consilium loans the Company will achieve an estimated annual interest cost saving of $435,000 in the ensuing financial year from lower debt levels.

Cambria said the overall improvement in results is further demonstrated by the settlement of approximately $1 million in debt using cash flow from operations. This, together with the continued financial support from Ventures Africa Limited, allowed the group to settle the Consilium and Nurture loans resulting in a significantly improved financial position.

Cambria said that further to the announcement dated 2 August relating to the settlement in full of the loan due to Cerulean (Mauritius) PPC (Nurture), Payserv Africa Ltd's wholly owned subsidiary, Paynet Zimbabwe Pvt Limited, has successfully concluded a $1.2 million loan facility agreement with Central Africa Building Society ("CABS Loan").

The CABS Loan bears interest at 11% per annum, an annual renewal fee of 1%, and is subject to an establishment fee of 2%. The loan is repayable over 24 months. As security, a mortgage will be registered in favour of CABS over one of two properties owned by Le Har (Pvt) Ltd, a wholly owned subsidiary of the Company. The remaining property remains unencumbered.

The facility will be used by Paynet to repay in part its license fee and loan obligations to Payserv Africa. Payserv Africa will in turn use the funds to settle the remaining portion of the $1.45 million Bridging Facility provided by VAL plus interest.

The interest rate payable on the VAL Bridging Facility will mirror the CABS loan as set out in the announcement of 2 August. The company also announced its registered office has changed to Burleigh Manor, Peel Road, Douglas, Isle of Man IM1 5EP.

At 3:32pm: (LON:CMB) Cambria Africa share price was +0.28p at 0.9p