Wrap Text
Audited Abridged Financial Results for the full year ended 30 September 2025
Cafca Limited
Incorporated in terms of laws of Zimbabwe(Zimbabwe Registration number:40/1945)
Share Code: CAC
ISIN Code: ZW0009011942
("CAFCA" or "the Company")
Notice To Shareholders
Audited Abridged Financial Results for the full year ended 30 September 2025
All figures are in United States Dollars (USD)
Chairman's Statement
For the abridged financial statements for the financial year ended 30 September 2025
I am pleased to present CAFCA's performance for the financial year ended 30 September 2025.
Despite navigating a challenging trading landscape, our strategic responses have ensured a solid foundation for better performance in the future.
While profitability declined, our balance sheet remains strong. We adapted to new import competition and liquidity constraints by implementing
significant operational efficiencies, which included the reduction of headcount and improvement of conversion efficiencies.
Operating Environment
The operating environment was relatively stable during most of the year, supported by consistent monetary policy measures. The USD has become the
currency of choice for most local transactions. Month-on-month inflation further stabilized, measuring at -0.2% in September 2025, and the country
has also observed stability in the USD: ZWG exchange rate since the beginning of the financial year.
The 2024/25 agricultural season spurred significant economic activity, with a strong rainy season leading to a record tobacco harvest surpassing
345 million kilograms. As the Zimbabwean economy is largely agrarian, this momentum carried into the manufacturing and mining sectors. The fiscal
review acknowledged the manufacturing sector's robust performance, noting its 15.3% contribution to GDP in the half year fiscal review, driven by
investments in new equipment and warehousing. A recovery in commodity prices for metals and alloys also boosted the mining sector. This overall
growth filtered into the construction sector, increasing road infrastructure projects, new housing, and commercial property development, further
bolstered by an 8.4% rise in diaspora remittances in the six months to June 2025.
However, the year began with a notable shift in government policy following the introduction of Statutory Instrument (SI) 157 of 2024. This relaxed
restrictions on cable imports, leading to a flood of cheaper, substandard alternatives into the market. This created a period of anxiety and
uncertainty as customers initially experimented with these alternatives, which were mostly of inferior quality compared to CAFCA's cables.
Performance and Strategic Response
The introduction of SI 157 of 2024, combined with a period of tight liquidity, significantly slowed our volume performance in the first half of
the year. While volumes recovered in the second half, they ultimately landed 8% short of the prior year. Although reported revenue grew 56%, this
was primarily due to exchange rate and inflation distortions. In real terms, our revenue tracked volume performance with a 3% drop. Earnings Before
Tax, Interest, and Amortization (EBITA) declined by 50% from prior year. This was largely a result of strategic business model adjustments to
better recognise our value chain partners and protect market share, which prevented us from passing on all increases in raw material costs to
customers.
To counter these pressures, we took proactive measures:
• Operational Streamlining: We invested in key technologies and business processes, resulting in a reduction in headcount and improvement of
conversion efficiencies.
• Working Capital Management: We implemented changes to manage working capital more effectively, including liquidating non-performing stock held
as consignment stock held by export distributors. Whilst bad debt provisions on export debtors increased, the company ceased uncovered term-
based sales transactions.
As a result of the decline in volumes ,and impact on margins emanating from adjustment to (SI) 157, profit after tax declined to US$1.9 million
from US$5.8million. The company has continued to maintain a strong and healthy balance sheet.
Sustainability, People & Governance
Our commitment to safety, wellness, skills development, and compliance remained a priority. The board continued to oversee CAFCA's sustainability
and governance initiatives, adapting the strategic direction by tracking risks and opportunities. From a sustainability perspective, several
initiatives were executed during the year.
• Talent Development: We enrolled 8 operational managers in a management development program, saw 3 employees complete the operator learnership
program, and enrolled 3 engineering professionals in our graduate development program. We continue to invest in staff training to build a
strong pipeline of talent.
• Employee Wellness: Our human resources department, supported by medical service providers, conducted two wellness programs focusing on both
mental and physical health.
• Safety Performance: Hazard identification and risk assessments, performed by senior management, helped reduce our total recordable incidents
rate (TRIR) from an average of 0.9 in the prior year to 0.3 in the current year.
CAFCA is unwavering in its commitment to quality and governance. We have continued to strengthen our internal control systems to maintain the
highest standards of execution and competitive advantage. Our certifications from the Standard Association of Zimbabwe (SAZ) and the South African
Bureau of Standards (SABS) remain current for Quality (ISO9001:2015), Environmental (ISO14001:2015), Occupational, Health & Safety (ISO45001:2018),
and Energy Management (ISO50001:2018).
Dividend
The board declared a final dividend of US2.80 cents per share for the current year, a decrease from the US4.9 cents per share declared in the prior
year.
Outlook
Barring any significant changes, we project a relatively stable trading environment ahead, supported by tight monetary measures, the projected
normal-to-above-normal rainfall for the 2025/26 season, and firming commodity prices. Geopolitical tensions are expected to continue influencing
the prices of key commodities, including copper and aluminium. The board is confident that CAFCA has generated the necessary momentum to take
advantage of opportunities ahead and regain market share.
Conclusion
I would like to extend my sincere gratitude to all our stakeholders—our customers, suppliers, service providers, shareholders, fellow board members,
management, and staff—for their invaluable support throughout the year.
Honour P. Mkushi
Board Chairman
Chief Executive Officer's Statement
This past year has presented CAFCA with its most demanding test since 2017. The introduction of S.I. 157 of 2024 significantly altered our
competitive landscape. While this regulatory shift brought new challenges and a flood of imported products, it also forced us to sharpen our focus,
adapt quickly, and reaffirm our commitment to quality and efficiency. We exit the year a more resilient organization, positioned to defend and
regain market share.
Strategic Overview
Our core strategy this year centred on adaptation to the new market reality. When customers were given the opportunity to experiment with other,
often substandard, cable products, CAFCA doubled down on our commitment to superior quality and competitiveness.
We strategically invested in three key areas:
• Supply Chain Competitiveness: Optimising our raw material sourcing and blend of copper cathode and recycled material.
• Efficiency in Capacity Utilisation: Improving equipment use, implementing predictive maintenance, and moving to a 2-shift system.
• Channel Partner Re-engagement: Working closely with our distributors, contractors, and electricians to underscore the value of CAFCA products—
emphasizing quality assurance, aftersales support, and trade terms.
Operational Review
a. Sales & Marketing
Sales volume declined by 8% during the year. This was primarily driven by a 32% drop in export sales, an 8% reduction in utilities uptake, and the
slowdown in retail, distribution, and commercial segments in the first half of the year due to import competition.
In response to the market structure changes, CAFCA initiated a proactive re-engagement strategy with channel partners. This included conducting
factory tours to highlight our rigorous quality assurance processes and accommodating distributors with more favourable trade terms. While the
business saw a positive recovery in the second half, retail and distribution channel volumes remained 5% behind the prior year.
The construction, industry, agriculture, and mining sectors have shown encouraging activity since the start of the tobacco selling season. This
economic buoyancy helped volumes recover in H2, though full-year volumes still lagged 4% behind the prior year. Our focus remains on enhancing
customer experience and leveraging our channel partnerships to educate the market on the value of quality products.
CAFCA continues with the long-standing engagement with key utilities like ZESA and the Rural Electrification Fund. However, their tight liquidity
has constrained uptake, leading to an 8% decline in this segment.
A significant strategic decision was made in the export markets to shift away from consignment stock deliveries. This move, while initially
impacting uptake among distributors accustomed to the old model, unlocked crucial cash flow, built business model resilience, and better positioned
us to take advantage of supply chain opportunities. This cash-based approach is already yielding positive results in our export rejuvenation efforts
and significantly reduces our exposure to non-performing foreign debtors and currency remittance challenges.
b. Operations
Production went down by 4% from the prior year, aligning with sales volume performance.
Key operational improvements include:
• Raw Material Optimisation: Our initiative to reclaim redundant copper from customers (offsetting the cost with new cables) continues to bear
significant value. All materials undergo rigorous inspection and certification. Our focus remains on achieving a 6-week copper and aluminium
raw material buffer.
• Power Supply: The power supply situation improved by 2% compared to the prior year. We are currently installing a 1.18MW grid-tied rooftop
solar plant to augment our supply with cheaper daytime power.
• Efficiency & Reliability: We improved equipment utilisation from 70% to 80% through predictive maintenance and operator-led process control.
On-time delivery saw a significant jump from 83% to over 100%. First pass yield in quality assurance grew from an average of 70% in Q1 to over
90%.
• Safety First: Our Total Recordable Incidents Rate (TRIR) decreased significantly from 0.9 to 0.3, well below our benchmark of 2.8. A
comprehensive hazard identification and risk assessment yielded a 40% improvement in our safety record. Safety is CAFCA's number one priority.
Interventions implemented in the current year are expected to significantly lower our conversion costs sustainably, driven by investments in new
equipment technologies, improved labour recovery after switching to a 2-shift system, and reduced power costs per kWh.
c. Financial Performance
Aligning our business model to the operating environment was imperative. In real terms, revenue was 3% behind the prior year, reflecting the 8%
volume decline. Operating margins were 50% behind the prior year as we absorbed some raw material costs to defend market share.
To ameliorate the impact of declining margins, we implemented a number of interventions including a reduction in headcount and an investment in
cutting-edge technologies as well as upgrades of key equipment. Our working capital position is improving with a focus on optimising the quality
of inventories and debtors.
Future Performance
The strategic initiatives adopted this year have positioned CAFCA to capitalise on future growth opportunities through manufacturing excellence.
Our current focus is on embedding a business model resilient enough to withstand future volume fluctuations and external shocks.
Acknowledgements
I extend my sincere gratitude to the board, management, and staff for their dedication and follow-through on our strategic initiatives to deliver
value to all our stakeholders.
Vimbayi Nyakudya
Chief Executive Officer
30 Sept 2025 30 Sept 2024
Abridged Statement of Profit or Loss and other Audited Restated
Comprehensive Income for the year ended USD USD
30 September 2025
Revenue 39,487,717 25,325,312
Operating profit 2,667,753 7,900,131
Finance income 43 13
Finance cost (93,532) (222,645)
Monetary gain/(loss) - (1,997,197)
Profit before income tax 2,574,264 5,680,302
Income tax (expense)/credit (706,718) (137,153)
Profit for the year 1,867,546 5,817,455
Other comprehensive(loss)/ income (2,489,575) 15,893,338
Total comprehensive (loss)/income for the year (622,029) 21,710,793
Weighted average number of ordinary shares in issue 33,949,000 33,949,000
Basic Earnings per share (USD cents) 5.50 17.14
Diluted Earnings per share (USD cents) 5.50 17.14
Headline Earnings per share(USD cents) 6.18 17.04
*Comparative figures have been restated to effect the change in functional currency effective 1 October 2024(Note 3).
Abridged statement of Financial Position
As at 30 September 2025
30 SEPT 2025 30 SEPT 2024
Audited Restated
USD USD
ASSETS
Non-Current Assets
Property, plant and equipment 16,707,466 20,866,651
Current assets
Inventories 13,865,371 13,419,671
Trade and other trade receivables 4,665,772 3,595,085
Cash and cash equivalents 1,498,542 577,222
20,029,685 17,591,978
Total Assets 36,737,151 38,458,629
EQUITY AND LIABILITIES
EQUITY
Equity attributable to owners of the parent
Share Capital 339 37
Share premium 319,976 319,976
Retained earnings 15,341,906 14,424,932
Revaluation reserve 13,403,763 15,893,338
Total Equity 29,065,984 30,638,283
LIABILITIES
Non-current liabilities
Deferred income tax liabilities 3,081,505 4,162,480
Borrowings 124,761 -
Total non-current liabilities 3,206,266 4,162,480
Current liabilities
Trade and other payables 1,770,650 1,169,901
Provisions for other liabilities and charges 666,877 637,483
Current tax payable 293,491 61,569
Dividend payable 1,105,583 1,788,913
Bank overdrafts 235,434 -
Borrowings 392,866 -
Total current liabilities 4,464,901 3,657,866
Total equity and liabilities 36,737,151 38,458,629
* Comparative figures have been restated to effect the change in functional currency effective 1 October 2024(Note 3).
Abridged Statement of Cash Flows For the year Ended 30 September 2025
30 Sept 2025 30 Sept 2025
Audited Restated
USD USD
Profit before income tax 2,574,264 5,680,302
Adjustments for:
Depreciation 1,638,772 14,181
Monetary loss - 1,997,197
Allowance for impairment 314,032 388,449
Foreign exchange loss/(gain) 188,889 (1,471,385)
Profit on sale of motor vehicles (3,800) (33,343)
Non-cash employee benefit-share based payment charge - 172
Finance cost 93,532 222,645
Finance income (43) (13)
Working capital changes:
Increase in inventories (445,700) (2,198,215)
Increase in trade and other receivables (1,064,195) (57,252)
Increase in trade and other payables 600,749 415,024
Increase in provision for other liabilities 29,394 77,915
Net cash generated from operations 3,925,894 5,035,677
Finance cost (93,532) (222,645)
Finance income 43 13
Income tax paid (897,521) (792,448)
Net cash generated from operating activities 2,934,884 4,020,597
CASHFLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment (627,412) (245,329)
Proceeds from sale of motor vehicles 3,800 32,470
Net cash utilised in investing activities (623,612) (212,859)
CASHFLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 517,627 -
Proceeds from overdraft 235,434 -
Proceeds from issuance of shares-share options - 1,072
Dividend paid (1,633,902) (2,127,437)
Increase in cash and cash equivalents 1,430,431 1,681,373
Cash and cash equivalents at the beginning of the year 577,222 (190,959)
Impact of change in functional currency (302) -
Effects of exchange rates on cash and cash equivalents (508,809) -
Effects of inflation on cash and cash equivalents - (913,192)
Cash and cash equivalents at the end of year 1,498,542 577,222
Abridged Statement of Changes in Equity
For the full year ended 31 September 2025
Share Share Share Option Revaluation Retained Total
Capital Premium Reserve Reserve Earnings Earnings
USD USD USD USD USD USD
Balance on 1 October 2023 37 113,921 209,261 - 10,270,978 10,594,197
Total comprehensive income
for the year - - - 15,893,338 5,817,455 21,710,793
Profit for the year - - - - 5,817,455 5,817,455
Other comprehensive income
for the year - - - 15,893,338 - 15,893,338
Transaction with owners in
their capacity as owners
Share options exercised - 1,072 - - - 1,072
Transfer between reserves - 204,983 (204,983) - - -
Share option expense - - (4,278) - - (4,278)
Dividend declared - - - - (1,663,501) (1,663,501)
Balance at 30 September 2024 37 319,976 - 15,893,338 14,424,932 30,638,283
Balance at 1 October 2024 37 319,976 - 15,893,338 14,424,932 30,638,283
Impact of change in
functional currency 302 - - - - 302
Total comprehensive income
for the year - - - (2,489,575) 1,867,546 (622,029)
Proft for the year - - - - 1,867,546 1,867,546
Other comprehensive income
for the year - - - (2,489,575) - (2,489,575)
Transaction with owners in
their capacity as owners
Dividend declared - - - - (950,572) (950,572)
Balance at 30 September 2025 339 319,976 - 13,403,763 15,341,906 29,065,984
NOTES TO THE ABRIDGED FINANCIAL STATEMENTS
For the year ended 30 September 2025
1 General information
CAFCA Limited (the "Company") manufactures and supplies cables for transmission and distribution of energy. CAFCA is primary listed on the
Zimbabwe Stock Exchange and secondary listed on the Johannesburg Stock Exchange.
2 Basis of preparation
The Company's annual abridged financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") and
in the manner required by the Companies and Other Business Entities Act (Chapter 24.31).
3 Change in functional and presentation currency from Zimbabwe Gold (ZWG) to United States Dollars (USD).
The Directors reassessed the functional currency of the Company and determined that the USD continued to be used to be the currency that best
reflects underlying transactions and events and conditions relevant to the company in accordance with requirements of IAS 21. Following the
reassessment, the Company changed its functional currency from ZWG to USD with effect from 1 October 2024.
The change was influenced by several factors, including the increased level in USD transactions following the promulgation of Statutory
Instrument 218 of 2023 gazetted on 23 October 2023 which extended the multi-currency regime 2030. USD became the primary currency used in
settling transactions related to raw material purchases selling and distribution expenses and administration expenses, accounting for over 70% of
the Company's total revenue as of 30 September 2024. The Company experienced a rise in USD expenditures for materials, labour and other costs
associated with providing goods, driven by increased USD receipts and demand from suppliers.
Management also considered the following: -
a. The currency that mainly influences the sales prices for the goods and services
b. The currency of the country whose competitive forces and regulations mainly determine the sales and prices of its goods and services; and
c. The currency that mainly influences labour, material and other costs of providing goods or services
4.Going Concern
Management has assessed that the Company will continue operating as going concern, citing the following: -
a. The company has stock cover of 2 months in finished goods.
b. The company has adequate working capital and facilities from local banks.
c. Demand for cable remains strong.
5.Independent external Auditor's statement
These abridged financial statements derived from the audited financial statements ofCAFCA Limited for the financial year ended 30 September 2025,
should be read together with the complete set of audited financial statements of the Company, for the year ended 30 September 2025, which have
been audited by Grant Thornton Chartered Accountants(Zimbabwe) and the auditor's report signed by Edmore Chimhowa, Registered Public Auditor
0470.
An unmodified opinion has been issued on the financial statements for the year ended. There is an emphasis of matter paragraph regarding the
restatement of property, plant and equipment opening balances following the change in functional currency from ZWG to USD on 1 October 2024
including the effects thereof.
The auditor's report includes a section on key audit matters that in the auditor's professional judgment, were of most significance in the audit
of the financial statements. The key audit matter was with the respect to revenue from contracts with customers. The auditor's report on the
financial statements and the full set of the audited financial statements, are available for inspection at the Company's registered office and
the auditor's report has been lodged with the Zimbabwe Stock Exchange.
6.Related party transactions
30 September 2025 30 September 2024
Audited Restated
USD USD
Purchases of goods
CBI Electric African Cables- A Division of ATC (Proprietary) Limited 2,168,180 132,971
Metal Fabricators of Zambia Plc (Zamefa) 3,626,082 2,930,434
5,794,262 3,063,405
Key management remuneration:
Key management includes directors (executive and non-executive)
and executive managers (members of the executive committee)
Salaries and short-term benefits 1,268,728 933,222
Share options credit - (4,278)
Directors' emoluments: -Fees 94,150 61,523
1,362,878 990,467
* Comparative figures have been restated to effect the change in functional currency effective 1 October 2024(Note 3).
7.Segment reporting
Company has one product line and operates in one industry sector.
Revenue is primarily from customers who are domiciled in Zimbabwe and revenue from external customers pertains mainly to customers domiciled in
Malawi, Rwanda and Mozambique.
Revenue is analysed as follows:
30 September 2025 30 September 2024
Audited Restated
USD USD
Revenue from customers domiciled in Zimbabwe 36,782,665 23,041,884
Revenue from external customers 2,705,052 2,283,428
39,487,717 25,325,312
The segment information provided to the executive team for the product reportable segments for the year ended 30 September are as follows:
30 September 2025 30 September 2024
Audited Restated
USD USD
Revenue from customers 39,487,717 25,325,312
Profit before interest and taxation 2,574,264 5,680,302
Finance income 43 13
Finance cost 93,532 222,645
Income tax (expense)/credit (706,718) 137,153
Total assets 36,737,151 38,779,666
Liabilities 6,770,879 7,820,346
* Comparative figures have been restated to effect the change in functional currency effective 1 October 2024(Note 3).
8.Capital commitments
The company has USD1 million capital commitment to build a Solar Plant authorised by the directors at the reporting period (2024: USD nil)
9.Property plant and equipment
Capital expenditure 627,412 245,329
Depreciation charge 1,638,772 14,181
Results Announcement
This results announcement is the responsibility of the Board and is only a summary of information contained in the full set of audited financial
statement for the year ended 30 September 2025 ("AFS") which is available on the JSE cloundlink at:
https://senspdf.jse.co.za/documents/2025/jse/isse/cac/CAF25.pdf and on the company's website at : https://www.cafca.co.zw
Any investment decisions made by investors and/or shareholders should be based on a consideration of the AFS.
By order of Board
C Kangara
Company Secretary
21 November 2025
JSE SPONSOR
Merchantec Capital
Directors
H.P Mkushi (Chairman) E.T.Z Chidzonga T.Chigumbu L.Corte S.E Mangwengwende S.Maparura J.Tapambgwa V.Nyakudya( Chief Executive Officer)
Date: 21-11-2025 10:41:00
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