LONDON (ShareCast) - (Sharecast News) - Cambria Africa announced a 50% improvement in its profit after tax in its interim results on Friday, rising to $1.66m.
The AIM-traded firm said its earnings per share totalled 0.27 US cents for the six months ended 28 February, which were on par with the same period last year, despite a 54% increase in weighted average shares in issue to 544.6 million.

Consolidated EBITDA rose 23% to a record $2.06m, while Cambria's central costs increased by $42,000 to $98,000.

Cambria's chief executive officer and directors rendered services to the company without compensation during the period, the board noted.

Group interest costs fell 83% to $24,000, after the partial conversion of Venture Africa's loans implemented in July 2018, while consolidated debt decreased to $0.43m from $3.05m year-on-year.

Net Equity increased by $5.29m to $7.13m, with net equity excluding investments rising by $4.1m to $6m.

The board said the firm's statement of comprehensive income included a foreign currency translation profit of $107,000, attributable to Cambria.

Looking ahead, Cambria Africa did note that, despite achieving record profits in the first half, it expected its earnings in the second half to be impacted as a result of "rapid devaluation" in the Zimbabwe exchange rate.

Cambria said it had actively ameliorated that impact by reducing expenses, hedging its assets and cash flow, and minimising and hedging its cost of capital.

"Despite the challenging macro-economic environment in Zimbabwe, we continue to see the glass as half-full," said chief executive officer Samir Shasha.

"We aim to continue our strategy of accumulating shares in Radar, an unlisted public company in Zimbabwe, with a dominant position in the brick market in the nation's second largest city and significant real estate holdings.

"By investing most of our available cash held in Zimbabwe in this attractive investment, we have hedged against the deterioration of purchasing power of cash equivalents in Zimbabwe."

In addition to its strategy of increasing our shareholding in Radar, Shasha said the company had started discussions with "leading" international technology providers to formalise strategic partnerships and implement fintech innovations.

"Cambria is excited about the potential this strategy will open up for the group.

"Our fintech subsidiary, Payserv, already holds a leading position in the electronic payments market with a proven track record and ubiquitous presence in all financial institutions and MNO's.

"We aim to be in the frontline of the FinTech disruption in Zimbabwe - which for all practical purposes has become one of the few cashless economies in the world."

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