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


5

adealode

Stamp

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

-

- -


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


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


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

-


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


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


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


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


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


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


**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


Arising from deconsolidation of discontinued operation (2,144,807) (2,144,807)


Charge for the year 672,260 - 672,260



Charge for the period 544,307 544,307


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)



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


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


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


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


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


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.


Company

Group

Group

Group

Group Company

Company

20

Lafarge Africa Plc


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


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

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Lafarge Africa Plc Unaudited Condensed Financial Statements 30 … · 2020. 7. 24. · Lafarge...

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