20
Lafarge Africa Plc Unaudited Condensed Financial Statements 31 March 2020
Lafarge Africa Plc
Unaudited Condensed Financial Statements
31 March 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. Mobolaji Balogun Chairman
Mr. Khaled Abdel Aziz El Dokani Group Managing Director/CEO
Mr. Lolu Alade-Akinyemi (appointed w.e.f. 8th April 2020) Executive Director
Mrs. Elenda Giwa-Amu Non-Executive Director
Mrs. Adenike Ogunlesi Non-Executive Director
Mr. Adebode Adefioye 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
Ms. Karine Uzan Mercie Non-Executive Director
Mr. Marco Licata Non-Executive Director
Mr. Gbenga Oyebode, MFR (appointed w.e.f. 8th April 2020) Non-Executive Director
Mr. Olivier Guitton (appointed w.e.f. 8th April 2020) 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
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019**
3 months ended
31 Mar
2020***
3 months ended
31 Mar
2019
Notes N'000 N'000 N'000 N'000
Continuing operations:
Revenue 3 63,695,766 58,016,247 56,104,786 49,499,885
Cost of sales 4 (46,068,823) (40,423,303) (39,448,393) (32,627,008)
Gross profit 17,626,943 17,592,944 16,656,393 16,872,877
Selling and marketing expenses 5 (838,393) (916,523) (838,210) (889,943)
Administrative expenses 6 (5,073,710) (5,248,989) (4,777,977) (5,138,395)
Other income 7 151,897 34,635 45,457 34,635
Impairment reversal/(loss) on trade receivables 8 (27,045) 59,772 (24,188) 50,002
Operating profit 11,839,692 11,521,839 11,061,475 10,929,176
Finance income 9 (a) 114,705 1,377,280 105,274 1,470,585
Finance costs 9 (b) (2,572,118) (8,311,590) (2,725,216) (8,537,786)
Impairment loss on investments in subsidiaries - - - (1,091,198)
Profit before tax from continuing operations 9,382,279 4,587,529 8,441,533 2,770,777
Income tax (expense) / credit 10.1 (1,315,390) 1,714,129 (1,030,118) 1,673,631
Profit after tax from continuing operations 8,066,889 6,301,658 7,411,415 4,444,408
Discontinued operation:
Loss after tax from discontinued operation 13.2 - (3,156,933) - -
Profit after tax for the period 8,066,889 3,144,725 7,411,415 4,444,408
Other comprehensive income:
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations - (583,979) - -
Other comprehensive (loss)/income for the year, net of tax - (583,979) - -
Total comprehensive income for the year from continuing
operations 8,066,889 5,717,679 7,411,415 4,444,408
Total comprehensive income for the period 8,066,889 2,560,746 7,411,415 4,444,408
Profit/(loss) attributable to :
- Owners 8,066,889 3,144,725 7,411,415 4,444,408
- Non-controlling interests - - - -
8,066,889 3,144,725 7,411,415 4,444,408
Total comprehensive income for the period is attributable to:
- Owners 8,066,889 2,560,746 7,411,415 4,444,408
- Non-controlling interests - - - -
8,066,889 2,560,746 7,411,415 4,444,408
Earnings per share attributable to the ordinary equity holders of
the Company:
Continuing operations & discontinued operation
Basic earnings/(loss) per share (Naira) 21 50 20 46 28
Continuing operations
Basic earnings per share (Naira) 2150 39 46 28
The accompanying notes and significant accounting policies on pages 9 to 20 form an integral part of these financial statements.
Group Company
Consolidated and Separate Statements of Profit or Loss and Other Comprehensive
Income for the period ended 31 March, 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.
4
Lafarge Africa Plc
31 Mar
2020
31 Dec
2019
31 Mar
2020
31 Dec
2019
Notes N'000 N'000 N'000 N'000
ASSETS
Non-current assets
Property, plant and equipment 12 366,666,132 369,797,229 304,235,678 308,650,770
Intangible assets 12 2,887,706 3,202,068 2,194,815 2,506,810
Investments in subsidiaries 13.1 - - 63,906,867 63,906,867
Other financial assets 14 3,673,755 767,253 3,673,755 767,253
Other assets 16 20,518,228 20,345,783 19,275,733 18,772,032
Deferred tax assets 27,103,572 27,994,154 27,103,572 27,994,154
Total non-current assets 420,849,393 422,106,487 420,390,420 422,597,886
Current assets
Inventories 17 35,562,452 32,440,770 28,027,903 25,679,521
Trade and other receivables 18 7,863,083 8,193,050 25,705,715 20,452,686
Other assets 16 5,564,337 6,302,759 3,885,745 4,958,939
Other financial assets 14 1,085,228 1,005,200 1,072,218 1,001,586
Cash and cash equivalents 19 20,889,277 27,103,942 18,633,346 25,391,035
Total current assets 70,964,377 75,045,721 77,324,927 77,483,767
Total assets 491,813,770 497,152,208 497,715,347 500,081,653
LIABILITIES
Non-current liabilities
Loans and borrowings 22 47,207,916 52,664,863 44,438,627 45,899,963
Employee benefit obligations 25 1,973,782 1,876,124 1,736,293 1,651,651
Deferred income 24 1,488,999 2,307,466 1,317,356 1,345,039
Provisions 23 977,238 1,011,285 545,270 547,403
Deferred tax liabilities 9,780,682 9,966,699 - -
Total non-current liabilities 61,428,617 67,826,437 48,037,546 49,444,056
Current liabilities
Loans and borrowings 22 12,856,583 11,520,252 16,105,743 14,666,562
Deferred income 24 429,216 539,263 110,732 110,732
Bank overdrafts 19.2 - 27,552 - 27,552
Trade and other payables 26 61,043,209 69,717,897 62,762,985 72,577,646
Provisions 23 534,972 677,349 496,735 604,451
Current tax liabilities 2,540,283 1,929,457 1,368,632 1,229,095
Total current liabilities 77,404,263 84,411,770 80,844,827 89,216,038
Total liabilities 138,832,880 152,238,207 128,882,373 138,660,094
EQUITY
Share capital 20.1 8,053,899 8,053,899 8,053,899 8,053,899
Share premium 20.2 435,148,731 435,148,731 435,148,731 435,148,731
Retained earnings 163,868,214 155,801,325 119,269,220 111,857,805
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 352,980,890 344,914,001 368,832,974 361,421,559
Total equity and liabilities 491,813,770 497,152,208 497,715,347 500,081,653
Mobolaji Balogun Khaled Abdel Aziz El Dokani Lolu Alade-Akinyemi
Chairman Group Managing Director Chief Financial Officer
FRC/2013/CISN/00000004945 FRC/2020/003/00000020762 FRC/2020/001/00000020157
These financial statements were approved and authorised for issue by the board of directors on 23rd April 2020 and were signed on its behalf by:
Consolidated and Separate Statements of Financial Position as at 31 March, 2020
Group Company
The accompanying notes and significant accounting policies on pages 9 to 20 form an integral part of these financial statements.
5
Lafarge Africa Plc
Consolidated and Separate Statements of Changes in Equity for the period ended 31 March 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 31 March 2019 - - 3,144,725 - - 3,144,725 - 3,144,725
Other comprehensive income (Net of tax) - - - (583,979) - (583,979) - (583,979)
Total comprehensive income for the period - - 3,144,725 (583,979) - 2,560,746 - 2,560,746
Transactions with owners:
Issue of shares 20 3,717,185 85,495,224 - - - 89,212,408 - 89,212,408
Right issue costs - (1,275,336) - - - (1,275,336) - (1,275,336)
Total transaction with owners 3,717,185 84,219,888 - - - 87,937,072 - 87,937,072
Balance at 31 March 2019 8,053,899 435,165,635 141,417,080 8,780,282 (368,683,312) 224,733,583 305,322 225,038,906
Adjustment on initial application of IFRS 16, net of tax - - (2,938,886) - - (2,938,886) - (2,938,886)
Adjusted balance at 31 March 2019 8,053,899 435,165,635 138,478,194 8,780,282 (368,683,312) 221,794,697 305,322 222,100,020
Profit for the period (April 1 to Dec 31 2019) - - 111,959,627 583,979 - 112,543,606 - 112,543,606
Other comprehensive income (Net of tax) - - (65,148) - - (65,148) - (65,148)
Total comprehensive income for the year - - 111,894,479 583,979 - 112,478,458 - 112,478,458
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
- - - (9,325,158) - (9,325,158) - (9,325,158)
Elimination of non controlling interest on loss of control of subsidiary - - - - - - (305,322) (305,322)
Right issue costs - (16,904) - - (16,904) - (16,904)
Total transaction with owners 3,717,185 84,202,984 (94,571,348) (9,325,158) 114,554,255 98,577,917 (305,322) 98,272,595
Balance at 31 December 2019 8,053,899 435,148,731 155,801,325 39,103 (254,129,057) 344,914,000 - 344,914,001
Balance at 1 January 2020 8,053,899 435,148,731 155,801,325 39,103 (254,129,057) 344,914,000 - 344,914,001
Profit for the year - - 8,066,889 - - 8,066,889 - 8,066,889
Other comprehensive income (Net of tax) - - - - - - - -
Total comprehensive income for the year - - 8,066,889 - - 8,066,889 - 8,066,889
-
Quasi-equity loan taken over by Parent
13.3 - - - -
- - - - Total transaction with owners - - - - - - - -
Balance at 31 March 2020 8,053,899 435,148,731 163,868,214 39,103 (254,129,057) 352,980,889 - 352,980,890
Attributable to equity holders of the parent
The accompanying notes and significant accounting policies on pages 9 to 20 form an integral part of these financial statements.
6
Lafarge Africa Plc
Consolidated and Separate Statements of Changes in Equity for the period ended 31 March 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 2018 4,336,714 350,945,749 92,140,223 39,103 (191,718,064) 255,743,724
Profit for the period to 31 March 2019 - - 4,444,408 - - 4,444,408
Other comprehensive income (Net of tax) - - - - - -
Total comprehensive income for the period - - 4,444,408 - - 4,444,408
Transaction with owners:
Issue of shares 20 3,717,185 85,495,223 - - - 89,212,407
Right issue costs - (1,275,336) - - - (1,275,336)
Total transaction with owners 3,717,185 84,219,887 - - - 87,937,071
Balance at 31 March 2019 8,053,899 435,165,635 96,584,631 39,103 (191,718,064) 348,125,203
Adjustment on initial application of IFRS 16, net of tax (2,938,886) (2,938,886)
Adjusted balance at 31 March 2019 8,053,899 435,165,635 93,645,745 39,103 (191,718,064) 345,186,317
Profit for the period (April 1 to Dec 31 2019) - - 18,277,208 - - 18,277,208
Other comprehensive income (Net of tax) - - (65,148) - - (65,148)
Total comprehensive income for the period - - 18,212,061 - - 18,212,061
Transaction with owners:
Right issue costs - (16,904) - - - (16,904)
Movement in reserves arising from business combination (1,959,915) (1,959,915)
- (16,904) - - (1,959,915) (1,976,819)
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 - - 7,411,415 - - 7,411,415
Other comprehensive income (Net of tax) - - - - - -
Total comprehensive income for the period - - 7,411,415 - - 7,411,415
Total transaction with owners - - - - - -
Balance at 31 March 2020 8,053,899 435,148,731 119,269,220 39,103 (193,677,979) 368,832,974
Attributable to equity holders of the parent
The accompanying notes and significant accounting policies on pages 9 to 20 form an integral part of these financial statements.
7
Lafarge Africa Plc
31 Mar
2020
31 Mar
2019**
31 Mar
2020
31 Mar
2019*
Notes N'000 N'000 N'000 N'000
Cash flows from operating activities:
Profit after tax 8,066,889 3,144,725 7,411,415 4,444,408
Adjustments to reconcile Profit for the year to net cash
flows:
Depreciation 11.2 7,151,497 8,284,098 6,636,395 6,636,853
Amortization of intangible asset 12 314,362 26,431 311,995 1,750
Impairment of investments in subsidiaries - - - 1,091,198
Other non-cash items 27.3 (174,442) (906,869) (38,946) (30,775)
Net unrealized foreign exchange loss (93,310) (762,082) (93,364) (811,531)
Finance costs 9(b) 2,275,990 9,576,238 2,451,114 8,537,786
Finance income 9(a) (114,705) (1,295,543) (105,274) (1,498,268)
Share of loss from joint venture - 21,206 - -
Income tax expense/(credit) 10.1 1,315,390 (3,021,903) 1,030,118 (1,673,631)
Provisions and net movement on employee benefits27
(100,531) 210,009 (70,650) 5,011
Change in net working capital 27.1 (13,914,001) 11,660,353 (19,847,901) 7,099,100
Cash flow generated from operations 4,727,139 26,936,663 (2,315,098) 23,801,901
Income taxes paid - (30,765) - -
Net cash flow generated from operating activities 4,727,139 26,905,898 (2,315,098) 23,801,901
Cash flows from investing activities
Acquisition of property, plant and equipment 11.1 (2,886,543) (1,921,601) (1,087,447) (1,275,268)
Interest received 80,697 812,271 71,266 1,019,318
Net cash flow used in investing activities (2,805,846) (1,109,330) (1,016,181) (255,950)
Cash flows from financing activities
Interest paid (653,754) (5,261,226) (631,470) (3,205,956)
Transaction cost on rights issue - (572,952) - (572,952)
Net proceed from rights issues - 89,212,407 - 89,212,407
Proceeds from loans and borrowings 22.1 - 5,358,703 - 2,500,000
Repayment of lease liabilities 22.1 (2,174,095) - (2,174,095) -
Repayment of loans and borrowings 22.1 (5,280,557) (65,501,769) (593,293) (74,401,870)
Net cash inflow used in financing activities (8,108,406) 23,235,163 (3,398,858) 13,531,629
Net increase/ (decrease) in cash and cash equivalents
from continuing operation
(6,187,113) 49,031,731 (6,730,137) 37,077,580
Cash and cash equivalents at the beginning of the year 19.2 25,700,556 (23,808,042) 23,987,649 (7,762,363)
Effects of exchange rate changes on cash and cash
equivalents
- 214,813 - 59,771
Cash and cash equivalents at the end of the year 19.2 19,513,443 25,438,502 17,257,512 29,374,988
The accompanying notes and significant accounting policies on pages 9 to 20 form an integral part of these financial statements.
Group Company
Consolidated and Separate Statement of Cash Flows for the period ended 31
March 2020
** 2018 group cashflow was represented for the purpose of fair presentation of comparatives splitting continuing operation from discontinued operation
*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, the financial position of LSAH has been
deconsolidated and is therefore not included in the Group statement of financial position as at 31 March 2020. Comparative information in 2019 for
the statement of cashflows has not been re-presented.
8
Lafarge Africa Plc
1 Business description
31st Mar 2020 31st Dec 2019 31st Mar 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
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
- 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 31 March 2019 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:
These consolidated and separate financial statements cover the financial period from 1 January 2020 to 31 March 2020 with 2019 as comparative.
Notes to the Consolidated and Separate Financial Statements for the period ended
31 March 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;
9
Lafarge Africa Plc
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
3 months ended
31 Mar
2020
3 months
ended 31 Mar
2019
N'000 N'000 N'000 N'000
3 Revenue
Sale of goods 63,695,766 58,016,247 56,104,786 49,499,885
The following is an analysis of revenue by product:
Cement 62,258,426 56,187,258 54,667,446 49,499,885
Aggregate and concrete 1,437,340 1,828,988 1,437,340 -
63,695,766 58,016,246 56,104,786 49,499,885
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
3 months ended
31 Mar
2020
3 months
ended 31 Mar
2019
N'000 N'000 N'000 N'000
4 Cost of sales by nature
Variable costs (Note 4.1) 31,367,353 26,050,687 27,420,675 21,018,834
Production costs (Note 4.2) 5,544,608 4,580,418 3,686,012 2,954,318
Maintenance costs 1,918,318 1,803,191 1,706,726 1,474,715
Distribution costs 398,414 1,068,848 261,870 915,895
Depreciation (Note 11.2) 6,840,130 6,910,606 6,373,110 6,261,496
Amortisation and impairment of intangible assets - 9,553 - 1,750
46,068,823 40,423,303 39,448,393 32,627,008
4.1 Variable costs
Distribution variable cost 11,715,934 9,538,748 10,351,583 8,068,536
Fuel and power 10,599,381 6,971,816 8,182,014 5,240,577
Raw materials and consumables 9,052,038 9,540,123 8,887,078 7,709,721
31,367,353 26,050,687 27,420,675 21,018,834
4.2 Production costs
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
3 months ended
31 Mar
2020
3 months
ended 31 Mar
2019
N'000 N'000 N'000 N'000
5 Selling and marketing expenses
Advertising expenses 79,781 - 79,781 -
Campaign and innovation expenses 44,913 - 44,913 -
713,699 916,523 713,516 889,943
838,393 916,523 838,210 889,943
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
3 months ended
31 Mar
2020
3 months
ended 31 Mar
2019
N'000 N'000 N'000 N'000
6 Administrative expenses by nature
Salaries and other staff related costs 2,099,851 2,057,482 2,098,112 1,991,563
Advance payment of taxes and levies 481,619 489,480 481,619 489,480
Office and general expenses 829,471 1,028,794 717,036 1,111,553
Depreciation (Note 11.2) 311,370 429,746 263,288 375,358
Amortisation of intangible assets 314,362 - 311,995 -
Technical service fees 1,037,037 1,243,487 905,927 1,170,441
5,073,710 5,248,989 4,777,977 5,138,395
Notes to the Consolidated and Separate Financial Statements for the period ended 31 March
2020
Group Company
Group Company
Group Company
Included in the production costs are personnel expenses, by-products costs and electrical energy expenses.
Company Group
Marketing staff salaries and othe related costs
10
Lafarge Africa Plc
Notes to the Consolidated and Separate Financial Statements for the period ended 31 March
2020
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
3 months ended
31 Mar
2020
3 months
ended 31 Mar
2019
N'000 N'000 N'000 N'000
7 Other income
Government grants 134,123 27,683 27,684 27,683
Scrapped and other miscellaneous income 17,774 6,952 17,773 6,952
151,897 34,635 45,457 34,635
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
3 months ended
31 Mar
2020
3 months
ended 31 Mar
2019
N'000 N'000 N'000 N'000
8 Impairment loss on trade receivables
Impairment (reversal)/loss on trade and other receivables 27,045 (59,772) 24,188 (50,002)
27,045 (59,772) 24,188 (50,002)
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
3 months ended
31 Mar
2020
3 months
ended 31 Mar
2019
N'000 N'000 N'000 N'000
9 Finance income and costs
a)
Interest income on current accounts 65,839 119,671 56,408 100,652
Other finance income 12,611 22 12,611 16
Interest on loan receivable 36,255 66,402 36,255 66,402
Foreign exchange gain (net) - 1,191,185 - 1,303,515
114,705 1,377,280 105,274 1,470,585
b) Finance costs:
Interest on borrowings (Note 22.1) (2,106,364) (7,877,100) (2,312,007) (8,187,741)
Unwinding of discount on provisions (Note 23.1) (33,318) - (33,318) -
Interest cost on employee's long service award (41,553) (34,363) (33,318) (32,846)
Interest cost on staff gratuities (14,258) (14,259) (14,258) (14,259)
Bank charges (80,497) (385,868) (58,213) (302,940)
Finance costs per statement of cash flows (2,275,990) (8,311,590) (2,451,114) (8,537,786)
Foreign exchange loss (net) (296,128) - (274,102) -
Finance costs (2,572,118) (8,311,590) (2,725,216) (8,537,786)
Net finance costs recognised in the profit or loss (2,457,413) (6,934,310) (2,619,942) (7,067,201)
10 Income tax (credit)/ expense
10.1 Income tax (credit)/ expense recognised in profit or loss
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
3 months ended
31 Mar
2020
3 months
ended 31 Mar
2019
N'000 N'000 N'000 N'000
Current taxation
Company income tax 432,426 239,853 - -
Education tax 178,400 249,544 139,537 231,126
Total current tax expense 610,826 489,397 139,537 231,126
Deferred taxation
Deferred income tax expense/(credit) to profit or loss 704,564 (2,203,526) 890,581 (1,904,757)
Income tax expense/(credit) 1,315,390 (1,714,129) 1,030,118 (1,673,631)
Income tax expense/(credit) 1,315,390 (1,714,129) 1,030,118 (1,673,631)
10.2 Effective tax rate
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
3 months ended
31 Mar
2020
3 months
ended 31 Mar
2019
N'000 N'000 N'000 N'000
Effective tax rate 16% 0% 14% 0%
The effective tax rate is as follows:
Group
Company
Company
Group
Group Company
Bank charges represent Letter of credit charges and other bank account operational charges
Interest income under the effective interest method and other finance
income:
Company
Company Group
Group
11
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 - - - - - - - - 2,886,543 - 2,886,543
Construction expenditure capitalised - 80,000 385,157 120,630 - 148,743 - (734,530) - - -
Addition to right of use assets - - - - - - - - - 1,133,857 1,133,857
- As at 31 March 2020 14,866,389 113,932,454 320,343,878 3,461,134 1,303,956 4,208,912 1,721,317 1,224,483 54,091,428 31,378,013 546,531,964
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 142,347 854,061 3,419,999 - 24,539 94,674 25,225 - - 2,590,651 7,151,497
As at 31 March 2020 4,820,611 29,394,906 109,252,600 1,213,112 1,024,026 3,144,592 1,414,292 145,343 16,144,134 13,312,216 179,865,832
Carrying amount
As at 31 March 2020 10,045,778 84,537,548 211,091,278 2,248,022 279,930 1,064,320 307,025 1,079,140 37,947,294 18,065,797 366,666,132
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 - - - - - - - 1,087,447 - 1,087,447
Construction expenditure capitalised - - - - - - - - - -
Addition to right of use assets - - - - - - - - 1,133,857 1,133,857
As at 31 March 2020 7,719,084 95,216,480 287,350,011 2,432,409 753,578 3,477,446 1,327,213 31,390,058 31,360,989 461,027,270
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 132,590 686,130 3,116,164 - 5,187 81,077 25,225 - 2,590,022 6,636,395
As at 31 March 2020 4,794,855 23,747,576 97,097,787 1,093,927 639,843 2,652,099 1,074,885 12,394,270 13,296,349 156,791,591
Carrying amount
As at 31 March 2020 2,924,229 71,468,904 190,252,224 1,338,482 113,735 825,347 252,328 18,995,788 18,064,640 304,235,678
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 31 March 2020
**See note 11.3 for details on right of use assets
**See note 11.3 for details on right of use assets.
12
Lafarge Africa Plc
11.1 Reconciliation of acquisition of property. plant and equipment in the statements of cash flows:
31 Mar
2020
31 Mar
2019
31 Mar
2020
31 Mar
2019
N'000 N'000 N'000 N'000
Acquisition of property, plant and equipment 2,886,543 1,921,601 1,087,447 1,275,268
Property, plant and equipment paid in the statement of cash flows 2,886,543 1,921,601 1,087,447 1,275,268
11.2 Depreciation
31 Mar
2020
31 Mar
2019
31 Mar
2020
31 Mar
2019
N'000 N'000 N'000 N'000
Cost of sales (Note 4) 6,840,127 6,910,606 6,373,107 6,261,496
311,370 429,746 263,288 375,358
7,151,497 7,340,352 6,636,395 6,636,854
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 - 122,237 608,677 402,943 1,133,857
As at 31 March 2020 112,441 1,535,455 1,938,904 27,791,213 31,378,013
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 5,767 133,708 321,483 2,129,693 2,590,651
As at 31 March 2020 28,990 874,121 1,595,730 10,813,375 13,312,216
Carrying amount
As at 31 March 2020 83,451 661,334 343,174 16,977,838 18,065,797
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 - 122,237 608,677 402,943 1,133,857
As at 31 March 2020 112,441 1,518,431 1,938,904 27,791,213 31,360,989
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 5,767 133,079 321,483 2,129,693 2,590,022
As at 31 March 2020 28,990 858,254 1,595,730 10,813,375 13,296,349
Carrying amount
As at 31 March 2020 83,451 660,177 343,174 16,977,838 18,064,640
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
31 March 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
13
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 31 March 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 314,362 314,362
Balance at 31 December 2019 1,936,157 - 1,936,157
Carrying amount
At 31 March 2020 2,887,706 - 2,887,706
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 31 March 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 PPE 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 311,995 311,995
Balance at 31 March 2020 1,129,085 - 1,129,085
Carrying amount
At 31 March 2020 2,194,815 - 2,194,815
At 31 December 2019 2,506,810 - 2,506,810
Intangible assets represents mineral rights and computer software in the Group's operations.
Group
Company
Notes to the Consolidated and Separate Financial Statements for the period ended 31
March 2020
14
Lafarge Africa Plc
Notes to the Consolidated and Separate Financial Statements for the period ended 31
March 2020
13 Interests in other entities
13.1 Investments in subsidiaries
31 March 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
Nigeria100 10,000
63,906,867
13.2 Discontinued operation
Statements of Profit or Loss
3 months ended
'31 March
2019
Lafarge South Africa Holdings (PTY) Limited N'000
Revenue 20,495,487
Cost of sales (19,904,253)
Gross Profit 591,234
Selling and marketing expenses (538,093)
Administrative expenses (3,101,545)
Other operating expenses (21,029)
Operating loss (3,069,432)
Finance income -
Finance costs (1,374,069)
Share of loss from associates (21,206)
Loss before tax (4,464,707)
Taxation 1,307,775
Results from operating activities, net of tax (3,156,933)
31 Mar
2020
31 Dec
2019
31 Mar
2020
31 Dec
2019
14 Other financial assets N'000 N'000 N'000 N'000
Non-current:
Other financial assets (Note 14.1) 3,673,755 767,253 3,673,755 767,253
3,673,755 767,253 3,673,755 767,253
Current:
Other financial assets (Note 14.2) 1,085,228 1,005,200 1,072,218 1,001,586
4,758,983 1,772,453 4,745,973 1,768,839
31 Mar
2020
31 Dec
2019
31 Mar
2020
31 Dec
2019
14.1 Other financial assets - Non current N'000 N'000 N'000 N'000
Loan to CBI Ghana 848,105 767,253 848,105 767,253
Receivable from third parties 2,825,650 - 2,825,650 -
3,673,755 767,253 3,673,755 767,253
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 3 months ended March 2019 is set out below:
Company
Company Group
Group
The Group’s principal subsidiaries at 31 March 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.
15
Lafarge Africa Plc
Notes to the Consolidated and Separate Financial Statements for the period ended 31
March 2020
14.2 Other financial assets - Current
31 Mar
2020
31 Dec
2019
31 Mar
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Short term receivables 53,719 9,946 40,709 6,332
Loan to CBI Ghana 1,031,509 995,254 1,031,509 995,254
1,085,228 1,005,200 1,072,218 1,001,586
16 Other assets
31 Mar
2020
31 Dec
2019
31 Mar
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Non current 20,518,228 20,345,783 19,275,733 18,772,032
Current 5,564,337 6,302,759 3,885,745 4,958,939
26,082,565 26,648,542 23,161,478 23,730,971
Advance payment to suppliers 3,751,106 2,519,214 2,298,734 1,283,647
Prepayment for Gas 18,142,761 17,639,060 18,142,761 17,639,060
Prepaid rent 1,352,971 63,198 1,190,979 43,198
Prepaid insurance 1,068,387 1,162,469 1,004,160 1,074,217
Advance payment to transporters - 1,963,345 - 1,963,345
Advance payment of taxes and levies 236,676 936,677 236,676 936,677
Letters of credit 1,242,495 1,573,752 - -
Deposit for imports 288,169 790,827 288,169 790,827
26,082,565 26,648,542 23,161,478 23,730,971
17 Inventories
31 Mar
2020
31 Dec
2019
31 Mar
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Raw materials 1,686,345 2,714,880 1,491,195 2,388,786
Semi finished & finished goods 13,819,431 10,617,865 10,789,784 7,819,983
Spare parts 14,341,253 14,062,246 12,038,472 11,715,257
Other supplies (Note 17.1) 5,715,423 5,045,779 3,708,452 3,755,495
35,562,452 32,440,770 28,027,903 25,679,521
17.1 Other supplies
18 Trade and other receivables
31 Mar
2020
31 Dec
2019
31 Mar
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Trade receivables:
Third party sales 3,394,119 2,494,787 2,899,465 2,373,676
Related party sales - - 1,492,952 642,597
3,394,119 2,494,787 4,392,417 3,016,273
Impairment on trade receivables (302,537) (275,494) (288,471) (264,284)
Net trade receivables 3,091,582 2,219,293 4,103,946 2,751,989
Other receivables (Note 18.1) 4,540,223 5,752,292 4,410,388 5,690,738
Due from related parties 231,278 221,465 17,191,381 12,009,959
4,771,501 5,973,757 21,601,769 17,700,697
Net other receivables 4,771,501 5,973,757 21,601,769 17,700,697
Total trade and other receivables 7,863,083 8,193,050 25,705,715 20,452,686
18.1 Analysis of other receivables
31 Mar
2020
31 Dec
2019
31 Mar
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Other current receivables 4,502,806 5,717,708 4,372,971 5,656,154
Staff advances 37,417 34,584 37,417 34,584
4,540,223 5,752,292 4,410,388 5,690,738
Company Group
Group Company
Other supplies consists of safety equipment, packaging materials, traiditional fuel and production materials.
The Group and Company's exposure to credit and foreign exchange risks related to trade and other receivables are disclosed in Note 4.
Group Company
Group Company
Group Company
16
Lafarge Africa Plc
Notes to the Consolidated and Separate Financial Statements for the period ended 31
March 2020
31 Mar
2020
31 Dec
2019
31 Mar
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) 19,513,443 25,728,108 17,257,512 24,015,201
Cash and cash equivalents in the statement of financial
position20,889,277 27,103,942 18,633,346 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:
31 Mar
2020
31 Dec
2019
31 Mar
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Cash in hand and at bank 19,513,443 25,728,108 17,257,512 24,015,201
Less: bank overdrafts - (27,552) - (27,552)
Cash and cash equivalents in the statement of cash 19,513,443 25,700,556 17,257,512 23,987,649
20 Share capital and Share premium
20.1 Share capital
31 Mar
2020
31 Dec
2019
31 Mar
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 31 March 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 31 March 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
Group
Company
As at period end, cash and cash equivalents comprised of restricted cash which represents unclaimed dividend.
Company
CompanyGroup
17
Lafarge Africa Plc
Notes to the Consolidated and Separate Financial Statements for the period ended 31
March 2020
21 Earnings per share
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
N'000 N'000 N'000 N'000
Profit attributable to equity holders of the Company from
continuing & discontinued operation
8,066,889 3,144,725 7,411,415 4,444,408
Profit attributable to equity holders of the Company from
continuing operation
8,066,889 6,301,658 7,411,415 4,444,408
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) 50 20 46 28
Continuing operations:
Basic earnings per share (Kobo) 50 39 46 28
22 Loans and borrowings
31 Mar
2020
31 Dec
2019
31 Mar
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Non-current 47,207,916 52,664,863 44,438,627 45,899,963
Current 12,856,583 11,520,252 16,105,743 14,666,562
Total loans and borrowings 60,064,499 64,185,115 60,544,370 60,566,525
Split into:
Power fund 7,681,318 12,373,343 3,737,909 4,181,322
Bond 35,133,053 33,849,197 35,133,053 33,849,198
Bank Loans 488,419 604,026 458,204 604,025
Related party loan - - 4,788,056 4,582,413
Lease liabilities 16,436,184 17,358,549 16,427,148 17,349,567
Total loans and borrowings 59,738,974 64,185,115 60,544,370 60,566,525
22.1 Movement in loans and borrowings
31 Mar
2020
31 Dec
2019
31 Mar
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 1,006,538 4,164,695 1,006,483 4,164,695
Loan received - 5,358,703 - 2,500,000
65,191,653 274,235,227 61,573,008 279,356,274
Interest expensed 1,780,840 18,125,050 2,312,007 18,981,016
Interest paid (78,218) (9,104,955) (78,218) (9,104,955)
Interest paid on leases (495,039) (3,242,545) (495,039) (3,242,545)
Interest paid- non cash - (8,399,478) - (8,399,478)
Principal repaid (5,280,557) (92,301,404) (593,293) (101,903,582)
Repayment of lease liabilities (2,174,095) (9,435,820) (2,174,095) (9,429,245)
Principal repaid-non cash - (105,690,960) - (105,690,960)
Impact of restructuring (Note 24) 794,391 - - -
At 31 December 59,738,975 64,185,115 60,544,370 60,566,525
Group Company
Company
Group Company
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
18
Lafarge Africa Plc
23 Provisions
31 Mar
2020
31 Dec
2019
31 Mar
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Non current (Note 23.1) 977,238 1,011,285 545,270 547,403
Current (Note 23.2) 534,972 677,349 496,735 604,451
1,512,210 1,688,634 1,042,005 1,151,854
23.1 Non current
31 Mar
2020
31 Dec
2019
31 Mar
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 (67,364) (769,940) (35,451) (513,481)
Unwinding of discount (Note9(b)) 33,318 148,084 33,318 88,485
At closing 977,239 1,011,285 545,270 547,403
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 629,983 629,983
Payment in the period (772,360) (772,360)
At closing 534,972 534,972
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 549,656 549,656
Payment in the period (657,372) (657,372)
At closing 496,735 496,735
24 Deferred income 31 Mar
2020
31 Dec
2019
31 Mar
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Non-current 1,488,999 2,307,466 1,317,356 1,345,039
Current 429,216 539,263 110,732 110,732
1,918,215 2,846,729 1,428,088 1,455,771
31 Mar
2020
31 Dec
2019
31 Mar
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) (794,391) - - -
Grant released to profit or loss (134,123) (253,958) (27,683) (110,731)
Closing balance 1,918,215 2,846,729 1,428,088 1,455,771
25 Employee benefit obligations
31 Mar
2020
31 Dec
2019
31 Mar
2020
31 Dec
2019
Non current N'000 N'000 N'000 N'000
Employee long service award scheme 1,392,968 1,309,568 1,155,479 1,085,095
Staff gratuities 580,814 566,556 580,814 566,556
1,973,782 1,876,124 1,736,293 1,651,651
Company
Notes to the Consolidated and Separate Financial Statements for the period ended 31
March 2020
Company
Group
Group
Group
Group Company
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.
19
Lafarge Africa Plc
Notes to the Consolidated and Separate Financial Statements for the period ended 31
March 2020
25.1 Employee long service award scheme
31 Mar
2020
31 Dec
2019
31 Mar
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 41,846 175,450 37,066 156,330
Interest cost (Note9b)) 41,554 201,016 33,318 168,076
Total amount recognised in profit or loss 83,400 376,466 70,384 324,406
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 1,392,968 1,309,568 1,155,479 1,085,095
26 Trade and other payables
Trade payables
31 Mar
2020
31 Dec
2019
31 Mar
2020
31 Dec
2019
N'000 N'000 N'000 N'000
Trade payables 18,305,236 18,941,999 14,855,580 15,577,803
Related party - technical service fee 4,780,526 5,691,389 4,390,479 5,428,974
23,085,762 24,633,388 19,246,059 21,006,777
Other payables:
Customers' deposits 4,933,794 19,770,478 4,749,531 18,477,116
Related companies 3,169,215 2,587,574 14,843,750 14,314,010
Withholding tax payable 1,300,968 1,829,293 1,300,968 1,829,293
Value added tax payable 1,744,613 1,409,042 1,503,217 1,320,052
Employee provisions and other liabilities 95,195 309,137 (44,466) 238,211
Accruals 15,495,056 8,144,599 14,469,880 8,021,708
Other payables 11,218,606 11,034,386 6,694,046 7,370,479
Dividend payable - - - -
37,957,447 45,084,509 43,516,926 51,570,869
61,043,209 69,717,897 62,762,985 72,577,646
27 Additional cash flow information
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
N'000 N'000 N'000 N'000
27.1 Working capital with adjustments after adjustment for non-cash movements:
Increase in inventories (3,121,682) 3,825,738 (2,348,382) 3,220,924
(Decrease)/increase in trade and other receivables 302,922 (2,511,795) (5,277,217) (10,271,890)
(Decrease)/increase in other assets 565,977 (818,480) 569,493 (695,365)
Increase/decrease in other financial assets (2,986,530) 295,340 (2,977,134) (229,965)
Increase/ (decrease) in trade and other payables (8,674,688) 10,869,550 (9,814,661) 15,075,396
(13,914,001) 11,660,353 (19,847,901) 7,099,100
27.2 Provisions and net movement on employee benefit
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
N'000 N'000 N'000 N'000
Retirement benefit obligations - service cost - 161,803 - -
Employee Long Service Award - service cost 41,846 32,010 37,066 29,682
Productivity bonus payment (772,360) (886,737) (657,372) (747,888)
Provision for productivity bonus for the year 629,983 902,933 549,656 723,217
(100,531) 210,009 (70,650) 5,011
27.3 Other non cash items
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
3 months ended
31 Mar
2020
3 months ended
31 Mar
2019
N'000 N'000 N'000 N'000
Impairment provision on trade receivables 27,045 15,529 24,188 -
Movement in site restoration cost (67,364) (894,715) (35,451) (3,092)
Government grants (Note 24) (134,123) (27,683) (27,683) (27,683)
(174,442) (906,869) (38,946) (30,775)
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
Group Company
Group Company
20
