Answer to Question #106805 in Accounting for George Mwila Chola

Question

You have been requested by the shareholders to prepare a detailed report analysing the financial performance and financial position of COPPERBELT ENERGY CORPORATION PLC for the year ended 31st December 2018. The Annual Report and Accounts for Copperbelt Energy Corporation Plc are on the website(https://cecinvestor.com/cec-2018-annual-report-erratum/).

REQUIRED: Prepare a REPORT to the shareholders providing a detailed analysis of the Financial performance and Financial Position of CEC company based on the ratios calculated and any other relevant information from the Annual Report:

Answer 1

The Company posted positive results, ensuring shareholders continue to earn a return through dividend and sustained share price growth.

Revenue increased by 8% in USD terms mainly on account of increased energy

consumption in Zambia, consistent power supply to the DRC market and depreciation of the Kwacha against the Dollar.

The Company has recorded a profit after tax of ZMW584 million compared to ZMW459 million in 2017. This represented an increase of 27.2% in ZMW and 15.5% in USD.