The group changed its year-end from August to December. The results therefore relate to a four-month trading period ended 31 December 2019 and there are no comparatives. Revenue was R955.4 million, gross loss came to R212.4 million, loss for the year attributable to equity shareholders came to R282 million. Headline loss per share was recorded at 72 cents per share.
The group’s policy is for the board of directors to consider a dividend on an annual basis after reviewing the annual results. No dividend is recommended.
With the group’s financing restructure near completion, the board will focus its attention on CIG’s portfolio of businesses. Each business will be critically
evaluated for value-enhancing opportunities to ensure the most optimal strategy is pursued in current market conditions.
Although the group’s turnaround will take some time, a solid platform for growth has been established this year, which management believes has placed CIG on the right track for recovery. The debt restructure was concluded on favourable terms for the group, the executive team and board reconstituted, and there is a renewed focus on active cash flow and liquidity management.
The group’s key objectives for 2020 include:
- Finalising agreements with lenders
- Rightsizing the CONCO business
- Implementing a strategy to ensure the refocused engineering, procurement and construction (EPC) businesses will extract opportunities in the South African EPC market and build a sustainable platform to meet power requirements across Africa
- Capitalising on increasing renewable energy opportunities
- Diversification of the Conlog business across geographies
- Successfully resolving the licensing of AES and other matters in Angola
Availability of integrated annual report and notice of annual general meeting
An annual integrated report, containing the summarised audited annual financial statements for the 12 months ended 31 August 2019 and the four months ended 31 December 2019, has been published and distributed to shareholders on 28 February 2020 and is available on the company’s website at www.ciglimited.com/annual-reports. The audited annual financial statements for the four months ended 31 December 2019 on which the auditors expressed an unmodified opinion, with a material uncertainty related to going concern, has been published on the company website at www.ciglimited.com/annual-results. The key audit matter of most significance in forming the opinion include estimation uncertainty involved in accounting for construction contracts.
The notice of annual general meeting was also distributed on 28 February 2020 and the annual general meeting will be held at 14:00 on Monday, 23 March 2020 at the registered offices of the company, First Floor, 30 Melrose Boulevard, Melrose Arch, 2196. The last day to trade in order to be eligible to participate in and vote at the annual general meeting is Tuesday, 10 March 2020 and the record date for voting purposes is Friday, 13 March 2020.
Change to the board of directors
Kevin Kariuki will be retiring at the upcoming annual general meeting and will not seek re-election due to a recent executive appointment that could result in a potential conflict.