Equity Research - Cambria Africa · ANALYSTS Ritesh Anand [email protected] Simbiso Musa...

ANALYSTS

Ritesh Anand [email protected]

Simbiso Musa [email protected]

Equity Research

Diversified

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Contents

Market Data

Index Market: UK-AIM

Stock Code Reuters: CMBC.L

Sector : Equity Investments Instruments

Country of operation: Zimbabwe

Market Capitalisation: US$13.6 million

Shares outstanding: 59.1 million

52 week range: $0.40/$0.18

Average daily traded volume: 100 762

NAVPS: $0.42

EPS: (12.4)

Target price: $0.49

Current price: $0.26

Exchange rate [GBP/USD] 1.54:1

Equity Research

Cambria Africa Limited

Diversified growth play in Zimbabwe July 2012

Zimbabwe Stock Exchange

PRIME Draft Copy Only: Not for external distribution or to Sales.

P

Convertibles

PLEASE SEE THE IMPORTANT DISCLAIMER, COMPANY DISCLOSURES AND ANALYST CERTIFICATION ON THE LAST PAGE OF THIS REPORT

Cambria Africa (formerly known as LonZim) is an AIM listed investment company

with primary focus on Zimbabwe. Cambria Africa listed on the AIM market in 2007

through an IPO that raised £29.2m (US$46.5m). Cambria Africa recently

announced its intention to list on the Zimbabwe Stock Exchange through a reverse

listing of one of its listed subsidiary’s Celsys. Upon listing Cambria would be

amongst the top 25 companies in terms of market capitalisation and net assets.

Cambria has achieved compliance with Indigenisation and Economic

Empowerment Act (2007), and is well positioned to benefit from the recovery in

Zimbabwe.

Cambria has appointed an almost entirely new board and now operates wholly

independent from one of its major shareholders Lonrho Plc. The new board and

management are focussed solely on creating shareholder value through growth,

restructuring and cost cutting. Much of this has been achieved over the last 24

months and we believe that Cambria is well positioned to benefit from the strong

recovery in Zimbabwe’s economy.

The company currently has direct exposures in the tourism sector (Leopard Rock

Hotel) Manufacturing and Distribution sector (Millchem), Printing (Celsys), and

indirect exposure in the financial services sector (Payserv). The company’s

investment objective is to provide shareholders with long term capital appreciation

through the investment of its capital primarily in Zimbabwe. While the company will

not be sector specific, it will seek to identify individual companies in sectors best

positioned to benefit from the anticipated radical improvements in the economy.

Cambria will seek to improve on management expertise, growth capital, and

international network.

Zimbabwe’s economy continues to recover. GDP grew by 9.3% in 2011 and is

projected to grow by circa 5-6% in 2012. Since 2009 GDP growth has averaged

8% making it one of the fastest growing economies in the region. Zimbabwe

currently enjoys the lowest rate of inflation in the region and the rate is expected to

remain contained in the single digit zone below 8% up to 2015. The downside on

Zimbabwe remains the uncertain political environment, restricted fiscal space,

limited financial instruments and unsustainable debt levels. Cambria is well

positioned to benefit from a strong recovery in the Zimbabwean economy.

The strong management team at Cambria continues to facilitate an

instrumental role in cutting costs, transforming key business and

disposing of non-core entities. Cambria is expected to achieve

profitability by end of FY13 and is well positioned to benefit from a

recovery in the Zimbabwean economy. Cambria offers the investor a

solid, diversified growth investment in Zimbabwe and has well-

diversified investments across growing sectors of the economy. We

recommend investors to BUY.

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Contents

Cambria: Investment Thesis ............................................................. 3

Zimbabwe: Strong Economic Growth .................................................. 3

Strong Management Team .................................................................... 3

Underlying business a lot more focussed… ....................................... 3

Successful turnaround over last two years beginning to bear fruit… 4

Attractive valuations and excellent corporate profitability recovery . 5

Zimbabwe: Economic Outlook ......................................................... 6

Zimbabwe to outperform Sub-Sahara and World growth ................... 6

Cambria: Business Overview ............................................................ 8

Cambria`s Investment strategy ............................................................ 8

Rationalisation of Investment Portfolio ............................................... 8

Payserve: Spearheading Zimbabwe`s digital revolution .................... 9

Millchem: Strong growth prospects ................................................... 12

Leopard Rock: Unique tourist destination ........................................ 13

Celsys: Building a leading position ................................................... 15

C.E.S.: Bridging the gap between IT and Business ......................... 16

Forget Me Not Africa (FMNA) .............................................................. 16

Discontinued Operations ................................................................. 17

Aldeamento Turistico de Macuti SARL (Mozambique) ..................... 17

Aviation ................................................................................................ 17

Financials ............................................................................................. 18

Summary Financial Performance ....................................................... 18

Key valuation ...................................................................................... 19

Risks .................................................................................................... 20

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Cambria: Investment Thesis

Zimbabwe: Strong Economic Growth

Since the formation of the government of national unity (GNU) and adoption of the multi-

currency regime in Feb 2009, Zimbabwe’s economy has grown at an average rate of 8%,

making it one of the fastest growing economies in the region. “Dollarisation” of the economy

destroyed hyperinflation and led to price stability. Real GDP growth accelerated from 6% to

9% in 2011. Zimbabwe’s economic recovery is underpinned by the following:

One of the most diversified economies in Africa (agriculture, manufacturing, natural

resources, and tourism).

Second largest reserves in platinum after South Africa

Significant untapped mineral reserves (coal methane gas, gold, copper and nickel)

Highly educated population, high literacy rates

Good basic infrastructure; roads, rail, water, electricity.

Strong Management Team

Cambria has a strong management team led by CEO, Edzo Wisman. Edzo was appointed

CEO in January 2010 and has been instrumental in restructuring the business, cutting costs

and driving the performance of it’s underlying investments. Cambria recently appointed

Tania Sanders as Chief Financial Officer. Since January 2010, gross profit has organically

increased 2.3x to Feb 2012. Management teams in the underlying companies have been

strengthened; Roy Meiring – CEO, Hotels Division; David Kuwana-MD, Payserve, Ewald

Rienks – MD, Millchem. The team comprises of an effective mix of successful

entrepreneurs, industry specialists, investors, wealth managers, investment and corporate

bankers. Management is supported by an active, “hands on” board. Management have

focussed on restructuring and cost cutting while relentlessly growing gross profit.

Underlying business a lot more focused…

Over the last two years Cambria has adopted a more focused approach and has disposed of

a number of non-core businesses. Cambria’s portfolio comprises of 5 core business;

Payserve, Celsys, Millchem, Leopard Rock, and CES. Cambria will continue to dispose of

other non-core assets which include certain properties, airlines, Forget Me Not Africa

(FMNA), and Automated Teller Machines (ATM’s).

Payserve is a leading provider of Electronic Data Interchange (EDI) switching, “payslip

processing” and payroll based microfinance loan processer. Paynet is the leading business

process outsourcing service provider and contributes approximately 50% to group gross

profit. Operations include Paynet which is the leading payment switching provider, Autopay

the country’s largest commercial salary bureau and Tradanet, Zimbabwe’s only outsourced

loan processing service.

Leopard Rock which was acquired for $8.5m in 2009 is a historic, iconic, luxury hotel and

resort in the eastern Highlands of Zimbabwe. Leopard Rock boasts a championship golf

course, casino, and fine dining restaurants. The resort has a prestigious 6,164 metre golf

course and a 450 hectare private game park. A total of approximately US$ 3.0m has been

used to refurbish the hotel. Occupancy levels have improved to average 60% and Average

Daily Revenues (ADR) are approximately $130. The leisure segment contributes

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approximately 40% of occupancies while the balance is conferencing. The casino also

brings additional revenues of approximately US$ 0.4m p.a. The group acquired The Castle

at Leopard Rock in March 2012 for a total consideration of approximately US$ 0.7m. “The

Castle” operates as a guesthouse with six rooms.

Millchem is a leading chemicals distributor in Zimbabwe, with dominant market positions in

solvents and metal treatment. Millchem is well positioned to benefit from the strong recovery

in the mining sector. Millchem has installed capacity of 150,000 litres in underground storage

facilities and 100,000 litres above the ground and the unit commands a market share of

approximately 60% in the solvents and 90% in the metal treatment industries. Margins are

generally low at c20% and EBITDA of approximately 7%.

Celsys is a leading provider of commercial and security print services in Zimbabwe. Celsys

is arguably the best equipped printer in Zimbabwe has leading market positions. Business is

likely to expand as the economy recovers and demand for print services increases. The

main business is commercial printing then security printing. Approximately US$ 0.8m

was invested to retool the operations. The unit contributes approximately 10% to group

gross profits. Gross profit margins are approximately 39%.

CES (Complete Enterprise Solutions) is an IT services company in Zimbabwe. Most

companies in Zimbabwe have not upgraded their systems since 2000. IT spend is likely to

increase as the economy recovers given the significant backlog in IT spending in recent

years. Margins range from 5-10% on global customer sales and 40%-60% on service

offering.

Successful turnaround over last two years beginning to bear fruit…

Over the last two years Cambria has focused on businesses with dominant market positions

in growing industries, strong management teams, and strong underpinning cash-flows. In

companies where management has been weak, Cambria has replaced management

including the CEO. Cambria has focused on restructuring underlying businesses both

operationally and financially through a rigorous process and has disposed of businesses that

no longer make commercial sense.

Over the last two years revenues have grown circa 3 fold while gross profit has increased

2.3x, with the difference resulting from a change of ‘sales mix’, rather than margin erosion.

Over the last 12 months gross profit has increased 1.6x reflecting the positive impact new

management has brought. Management will continue to focus on driving growth while

rationalising costs. Cambria`s intention to list on the ZSE through Celsys is an effort to

broaden its investor base and encourage local participation.

Over the next 12-24 months Cambria`s management will continue to focus on cost cutting at

Leopard Rock, resolve governance issues, and renovate the recently acquired “castle”. Over

the next 24-36 months Cambria will seek to acquire a second hotel. Cambria expects to

turn profitable by year-end (FY13) and results for the first half of the year was in line

with expectations.

Over the last two years revenues have organically

grown circa 3 fold while gross profit has increased 2.3x. Over the last 12 months gross profit

has increased 1.6x reflecting the positive impact new

management has brought.

Based on a Net Assets Value Cambria`s share is trading at a

huge discount (60%) on the London`s AIM, the valuation gap

is expected to be closed by, among others, listing on the Zimbabwe Stock Exchange

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Attractive valuations and excellent corporate profitability recovery

Cambria`s stock price is hugely undervalued despite the fact that a considerable amount of

money has been put into recapitalising the business and the subsidiaries are making a

turnaround, with profitability now ‘in sight’. Based on a Net Asset Value, Cambria`s share is

trading at a huge discount (60%) on the London`s AIM, the valuation gap is expected to be

closed by, among others, listing on the Zimbabwe Stock Exchange. Based on a combined

multiples valuation, DCF method and Sum of The Parts valuation we arrive at a target price

of 32.7p representing an upside potential of 92%. Cambria used its free cash flows to invest

in their businesses thus resulting in earnings growth, which we believe will ultimately be

reflected in the stock price and again benefit shareholders in the long run.

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Overview of the World Economic Outlook Projections

World Emerging and developing countries Sub-Sahara Zimbabwe

Zimbabwe: Economic Outlook

Zimbabwe to outperform Sub-Sahara and World growth

After a decade of economic downturn in which more than 40% of GDP was lost, Zimbabwe has

turned a corner, and has been transformed into a growth economy anticipated to outpace sub-

Saharan growth over the next five years. Growth in Zimbabwe looks set to remain attractive

versus the rest of sub- Saharan Africa, while official estimates are as high as 9.4%. We forecast

lower GDP growth of circa 5-6% in 2012, due to political headwinds and regulatory uncertainty.

Growth will be driven primarily by the agriculture, mining, tourism, financial services sector, and

improving capacity utilisation in the manufacturing sector.

F FIG: 1 Zimbabwe to outperform Sub-Sahara and World Growth

Source: IMF, Invictus Estimates

Commodities Sectors to propel growth

The economic potential of Zimbabwe is vast. After a period of hyperinflation and collapse of

the banking sector in 2008, stability has since been restored through a coalition government

and dollarisation of economy in 2009. The economy is widely expected to remain on a

growth path. GDP has been on the rise, growing 8.4% in 2010 to an estimated 9.3% in 2011

and is projected to grow c5-6% in 2012. Major drivers of economic growth have been the

mining and agricultural sectors, and are likely to remain so, with mining in particular

benefitting from high global commodity prices and private capital injections.

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2008 2009 2010 2011 2012

Growth in Subsectors of the economy

Mining Tourism Manufacturing Financial Services

The manufacturing sector is expected to grow by 6% in 2012 albeit from a very low base,

with growth driven mainly by food (6%), wood and furniture (8%), metals and metal products

(11%), and non-metal products (25%). The manufacturing sector capacity utilisation has

picked up in some subsets including the consumer goods sector. For example foodstuffs

capacity utilisation is expected to reach 57% in 2012 from 38% recorded in 2010, whilst for

drinks, tobacco & beverages it is expected to reach a high of 95% in 2012. In some

subsectors such as clothing, textiles and printing it has however remained low, averaging

around 25% while the textile and ginning industry capacity utilisation is expected to decline

further to 19.0% from about 23.0% achieved in 2010.

Tourism appears to be the most promising sector, with the drive coming from major hotel

chains and airlines that are planning to expand their presence on the continent. Tourism is

at the heart of economic re-launch and the type of sustainable development that can create

permanent jobs. Central to both quantitative and qualitative growth in tourism will be

marketing initiatives to penetrate new markets and develop new tourism products, against

the background of increased competition, given challenges related to overall global

economic slow-down. Significant is Zimbabwe securing the opportunity to co-host the 20th

session of the United Nations World Tourism Organisation (UNTWO) in 2013.

Microfinance has also emerged as one of the best performers in the financial services

sector. Microfinance has been able to boost consumer spending of individuals with modest

incomes. However, as microfinance grows, so does the need to regulate this sub sector by

way of a credit bureau. The sector offers huge opportunities in the informal and the

unbanked in general. Payserve is set to benefit immensely from this robust growth with

Tradanet having the infrastructure to support it.

Fig:3 Growth in Zimbabwe`s Subsectors

Source: Ministry of Finance

Manufacturing sector is expected to benefit from the spillover effect and grow by 6% for 2012

Tourism: the most promising sector with the drive coming from major hotel chains and airlines expanding their presence

in Zimbabwe.

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Cambria: Business Overview

Cambria`s Investment strategy

Cambria`s key objective is building a portfolio of companies that are well-positioned to

benefit from Zimbabwe’s economic growth and from formalization and modernization of

Zimbabwe’s economy. Moreover, Cambria seeks investments that have current sector

leadership in Zimbabwe, or, in Cambria’s view, are able to achieve this. Cambria generally

seeks control as it prefers to become actively involved in the companies it acquires. For

example, assisting in setting focused strategic objectives, building “first class” management

teams, creating globally focused companies and efficiently deploying the necessary funds to

build on, or achieve leading market positions and therewith by associated higher margins.

Cambria’s approach is a fusion between a conglomerate and a publicly traded private equity

firm. Cambria takes a longer term perspective of a ‘going concern’ and seeks the value

enhancing, efficiencies of an investment company. Even though within Cambria

investments are referred to as ‘subsidiaries’ and Cambria seeks synergies between its

subsidiaries, Cambria has the discipline to enter and exit investments when appropriate for

maximizing shareholder returns. These companies are in several sectors and selected

according to their ability to be amongst the first to benefit as Zimbabwe continues on a

growth recovery path. Cambria offers a unique position as a European based company with

listing investment in Zimbabwe, allowing bridge role in terms of knowledge, relationships and

ability to manoeuvre in global financial centers and raise capital.

Cambria benefits from the presence of two very active, well-respected shareholders in the

form of Concilium and Jutland (jointly holding 39%) as well as another less-active but also

well-respected shareholder in the form of Contrarian (another 8%). This type of institutional

ownership for a Company the size of Cambria should provide potential shareholders

comfort.

Rationalisation of Investment Portfolio

Since the appointment of Edzo Wisman in 2010, Cambria has adopted a more focussed

strategy and has disposed of non-core businesses. Costs have been contained and a

number of businesses have returned to profitability. The portfolio is now substantially

streamlined, consolidated and focussed on a group of 5 core subsidiaries. The remaining

non-core businesses will be disposed of (see chart below).

Cambria seeks control as it prefers to become actively involved in the companies it acquires.

Cambria offers a unique position as a European

based company with listing investment in

Zimbabwe, allowing bridge role in terms of

knowledge, relationships and ability to manoeuvre in global financial centres

and raise capital.

Cambria`s subsidiaries will benefit directly and indirectly for the growth

of Zimbabwe`s subsectors

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The group will be concentrating on five major subsidiaries as the non- core businesses are

being disposed of. Payserv which is one of the fastest growing subsidiaries in the portfolio is

set to benefit from the growth of the financial services sector, the banking sector and the

microfinance sector. The chemical distribution department division will benefit immensely

from the growth of the mining sector. Celsys is fully equipped to be amongst the top printing

companies in Zimbabwe and a significant market share has been acquired post

recapitalisation. Leopard rock has been refurbished to become a four star hotel and is

expected to benefit from the growth in the tourism sector.

Cambria continues to own two aircraft through its subsidiary LonZim Air (B.V.I.) Limited: a

Fokker F27-500 Cargo (F27) and an ATR 42-320 (ATR). The F27 was leased to 540

(Uganda) Limited in September 2008 and the ATR was leased to Five Forty Aviation Limited

in July 2009. Both entities are subsidiaries of Lonrho. A third aircraft leased by 540 was

destroyed in an accident in January 2011.

FMNA’s messaging technology has now been deployed at 9 networks across Africa,

reaching over 60 million subscribers continent wide, of which 1.2 million subscribers have

registered to date with FMNA. Despite successful deployment of the technology, revenues

generated by FMNA have been deeply disappointing and significant operating losses

continue month-on-month. As a result Cambria can no longer be confident that any of its

investment will be recovered and the Board has hence decided to write off Cambria’s

FMNA’s shareholder loans, as well any goodwill associated with Cambria’s shareholding in

FMNA.

Source: Company data

Despite successful deployment of the

technology, revenues generated by FMNA have been deeply disappointing and significant operating

losses continue month-on-month.

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0

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Growth in Transaction volumes for Paynet

Transaction volumes (000)

Payserv: Spearheading Zimbabwe`s digital revolution

Payserv Group is Zimbabwe’s leading Business Process Outsourcing service provider, with

a particularly strong presence in the financial services sector. Current offerings include

Zimbabwe’s leading payment switching provider (Paynet), the country’s largest commercial

salary bureau (Autopay), and Zimbabwe’s only outsourced loan processing service

(Tradanet). Adoption of electronic settlement of transactions represents an opportunity for

SMEs in Zimbabwe to compensate for their inherent weaknesses in areas such as access to

new markets, gathering and disseminating information on a world wide scale.

Paynet

Paynet is the leading electronic data interchange company in Zimbabwe. It was acquired for

US$ 3.2 million in October 2008 and now it’s worth almost $10 million. Through its Electronic

Data Interchange (EDI) system Paynet provides EDI switch services to all 25 banks and

over 1 000 corporate and institutional clients nationwide. The company is the flagship of the

Payserv group as it is growing even faster than the financial services sector itself. Indeed its

threshold lies in the banking sector as it seeks to automate almost all transactions whilst

eliminating inefficiencies in banking transactions. The sector can best be described as a high

cost environment, with high lending rates and lack of a functional money market caused by

liquidity problems. The business is to a greater extent volumes based and it has thrived on

the increase in volumes in RTGS payments since 2009. Paynet plans on extending the EDI

product into the insurance sector, pension funds and healthcare sector. Although still at the

preliminary marketing stages the product is likely to be well received in all the three sectors.

Over the past years Paynet has been marketed through the banks, this time around it has

adopted a different approach which involves marketing directly to the end user and thus

tapping into the unbanked sector. This strategy has proved to be successful as evidenced

by the increase in volumes illustrated below

Facilitating settlement of transactions with plastic money is going to be the greatest

innovation to calm the liquidity crisis currently prevailing. From Paynet`s point of view new

bank roll out and existing bank customer roll outs is a sign that the sector is starting to stand

on its feet and greater opportunities await. The micro finance sector presents great

opportunities for the company as well Opportunities also lie in countries like Zambia where

they are technologically behind, it is estimated that if Paynet plays its cards well its Zambian

operations will turn profitable in the next three years. Opportunities also lie in Tanzania and

Kenya.

Autopay

EDI Transactions include

Salary processing

(transfers, supplier

trade payments, direct

debits, stop orders and

payment schedules)

Banking operations

services

Other competencies

(connectivity wit all

banks)

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0

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Growth of loan book under management (US$ million)

Autopay is Zimbabwe’s largest private sector outsourced salary bureau; it processes

salaries for approximately 160 customers, producing over 25,000 pay slips per month. It

provides a complete end-to-end payroll related management service. This includes:

printing pay slips;

depositing salaries;

settling third party payments including pension and medical aid;

generating required management and statutory reports in hard and soft format;

ensuring policy and regulatory compliance;

As well as, managing payroll related statutory relationships on behalf of the company,

including audits.

Autopay is also the sole agent for the Paywell payroll system, licensed out of South Africa. It

has sold and supported the Paywell payroll software at over 100 of the largest companies in

Zimbabwe. The company identifies its sources of growth as focused marketing, overall

economic growth, and strategic relationships. Autopay accounts for close to 15% market

share, with no competitor of even remotely the same size, and the client book continues to

grow as more and more companies are opening up.

Tradanet

Cambria owns 51% of Tradanet . Tradanet is Zimbabwe’s only outsourced processor of high

volume, low value loans. On behalf of financial institutions, Tradanet facilitates loan

origination at the employer’s site, and manages repayments from salary deduction and

subsequently monitors portfolio performance. For employers, Tradanet automates the

administration of internal staff loans.

The business has seen strong growth during the year as workers become more confident in

the employment environment and, as a result, are seeking credit facilities. Defaults on this

type of loan remain very low and the business is seeing the average size and number of

loans increase. The loan book arranged through a local financial institution in Zimbabwe and

administrated by Tradanet has grown to over US$70 million as the banking sector continues

to recover.

Source: Company data/ Invictus estimates

Source of growth

focused

marketing

economic growth

strategic

relationship

moving up the

value chain in the

HR department

current market

share

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SWOT ANALYSIS FOR PAYSERV

Strengths

strong networking skills and existing

long term relationships with banks

Dominant market share

Skilled workforce

Reasonable technological innovations

Weaknesses

Limited marketing brands presence

partially in Zimbabwe and outside

Zimbabwe

Strong reliance on the banking

sector

Opportunities

Untapped markets in Zambia

Lagging technical knowledge in most

enterprises

Horizontal and vertical expansion for

existing customer base into new

markets

Increasing awareness into outsourcing

services

Threats

Lack of confidence in the banking

sector since the 2008 banking crisis.

Lack of lender of last resort

Millchem: Strong growth prospects

With Cambria’s assistance, Millchem has become, one of Zimbabwe’s leading distributors of

industrial solvents and metal treatment products. The company was established in 1986 as

Millpal and rebranded Millchem in 2011. Building on 35 years of supply and delivery to

Zimbabwe’s industrial companies in the paints, inks and coatings, plastics, textile,

automotive, and household products sectors, and now mining, Millchem has established

itself as the preferred value-added chemicals distributor in Zimbabwe.

The company consistently maintains high standards of quality, environmental and safety

performance and has recently become the only African member of the National Association

of Chemical Distributors (NACD.) in the United States, an organisation promoting the

Responsible Distribution code worldwide. This membership provides Millchem customers

with a verified guarantee of global best practices in terms of industrial processes, quality

assurance, as well as health, safety and environmental care. It is expected that NACD

membership will in the long-term be almost a pre-requisite for obtaining key distributorships

from large global chemical producers.

Millchem has one of the largest bulk solvent holding facilities in the country. The company

has in-house blending and formulation capabilities and also provides high level technical

support. Furthermore, the company offers market leading commercial terms that are

responsive to customers’ opportunities and challenges. The company is currently operating

at 70% capacity utilisation

Millchem’s main focus areas are expending its leading role in supplying paints and coatings

companies (including adding new products for this sector) as well as supplying chemicals to

small scale gold producers with initial focus being caustic soda, sodium cyanide and

hydrogen peroxide – small scale gold producers were estimated to be approximately 5,000

in 2010 and having approx. 20% of the market – between Jan’11 to Dec’11 small scale gold

producers increased their share of production from 17% to 32% – the Chamber of Mines

Millchem is one of Zimbabwe`s leading

distributors of industrial solvents and

metal treatment products

Millchem is operating at 70% capacity

utilisation

Small scale gold producers were estimated to be

approximately 5000 in 2010 and having

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predicts that an increase of 445% in gold mining output by 2015 – Nov-11 was the first

record for Millchem’s mining chemical sales and the impact on revenue was a 2.8x increase

on prior month. At 70% capacity utilisation growth in chemical distribution has been way

ahead of GDP growth since dollarisation. The trend is most likely to continue backed by the

robust economic growth expected in Zimbabwe.

Leopard Rock: Unique tourist destination

The Leopard Rock Hotel is a four star, 58-room hotel, resort and casino set in the Vumba

Mountains in the Eastern Highlands of Zimbabwe. It is an iconic destination within Southern

Africa with a rich history. Since acquisition in 2009 by Cambria, the hotel has undergone

significant refurbishment, as well as staff upgrades, and it is now restored to its former glory

and is well up to par with current international standards. Completion of the refurbishment

has led to superior occupancy and improved room rates. In 2011 the hotel was awarded

‘Best Resort in Zimbabwe’ by the Association of Zimbabwe Travel Agents and ‘Best Resort

Hotel’, First Runner-Up by Zimbabwe Tourism Authority.

Leopard Rock constitutes about 30% of Cambria`s portfolio value in terms of gross profit.

The hotel was originally acquired by Cambria for US$8.5 million in April 2009 but as of

August 2011 the hotel was sitting at a value of $US18.5 million. Since its acquisition the

group has invested more than US$2 million for refurbishments as well as working capital to

consolidate operations. Average occupancy rates at Leopard Rock increased from 26% in

2009 to 35% in 2010 and 55% in 2011. Leopard Rock hotel does not have strong regional

competitors; in addition to that no other local hotel has the institutional backing that matches

Leopard Rock Hotel. This makes it easy for the hotel to benefit from a surge in tourist

arrivals in the Vumba area.

The renovation programme has brought the hotel back to the highest international

standards. Complementing the renovation, the hotel is planning to develop a world class

Spa. An additional plan includes the development of an additional 100 rooms at the property

ensuring that the accommodation capacity is sufficient needed to attract major golf

tournaments. Despite turbulent times the Leopard Rock Hotel now operates again as a

profitable enterprise.

The hospitality industry is expected to be one of the sectors of the economy that will recover

the fastest and the market for the Leopard Rock Hotel is demonstrably beginning to recover.

At year end the Leopard Rock Hotel was independently valued at US$18.50 million (£11.32

million) up from 2010 US$15.25 million (£9.83 million).Zimbabwe continues to register

positive growth with the highest increase in arrivals being from Malawi, Tanzania and

Angola. Despite the negative impact of the events in Japan and the global recession on

Zimbabwe tourism. Positive growth is expected from China, Korea, USA, Germany and

France. The opening up of international air access is also expected to boost 2012 arrivals

going forward.

Fig: 7 in International Arrivals in Zimbabwe Fig: 7rnational Arrivals in Zimbabwe

The hotel was originally acquired by Cambria for US$8.5 million in April

2009, as of August 2011 the hotel was

independently valued at US$18.5 million.

The renovation programme has brought

the hotel back to the highest international

standards.

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Tourist Arivals` 000`

Source: Zimbabwe Tourism Authority/ Company data

Fig: 7 Growth in International Arrivals in Zimbabwe

Source: UNWTO

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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Revenue per Average Room

Leopard Rock RevPar (us$)

Average Regional RevPar in Zimbabwe( us$)

15 | P a g e


Celsys: Building a leading position

Celsys Limited, listed on the Zimbabwe Stock Exchange, has been transformed by Cambria

from being unfocused conglomerate into arguably the country’s best equipped security and

commercial printers, both in terms of capacity and diversity. As such, it has within a short

time frame become one of the leaders in the Zimbabwe commercial printing arena.

Cambria has facilitated huge capital injection in state of the art machinery resulting in Celsys

being one of the best Print companies in Zimbabwe. Celsys was an ‘also ran’ within the

commercial printing arena and is by now working towards a clear first position, while it is

setting the standard in terms of pricing, quality and turn-around times. The company

invested in a full range of pre-press, press and finishing equipment and has sufficient staff

and ‘rolling power’ to operate fully meet demand during peak periods. The initial

capitalisation project has been completed with a total of $2 million injected into the company.

Recapitalisation will be an ongoing process upon bi-annual reviews by the parent company

in a bid to replace obsolete machinery, expand capacity to take market share and add

additional printing capabilities.

Celsys also provides ATM’s and POS devices on a transaction based leasing model to the

financial sector. Although the business is not core to the company transaction volumes have

been on the rise with the increase in the usage of ATMs. Celsys attained ISO 9001:2008

quality standards and was certified in February 2009. Celsys is projected to return to

profitability in FY13 and breakeven point by half year FY12.

SWOT ANALYSIS FOR CELSYS

Strengths

Existing and growing customer base

Infrastructure and upgraded machines

Ongoing need for print

Brand recognition

Strong backup generators to curb

power cuts.

Weaknesses

Power outages still a problem

hence generators expensive to run

for extended periods.

Opportunities

Increasing marketing budgets

New production technology to drive

down costs

Threats

New entrants from Zambia or South

Africa before enough scale has

been achieved / enough market

share has been gained

Celsys boasts about being the “only printing company investing in large sums of

money”.

16 | P a g e


C.E.S.: Bridging the gap between IT and Business

CES Zimbabwe develops and delivers IT outsourcing for small, medium and large enterprise

companies looking to optimize their IT investment whilst simultaneously, reducing costs and

allowing management to focus on their core business.

Outsourced solutions offered include design and implementation of a company’s IT

infrastructure, day-to-day on-line monitoring and management of their networks and

establishment of robust data storage and disaster recovery solutions.

Infrastructure sourcing and support from internationally recognized providers

Highly trained consultants with experience across multiple sectors

Innovative, reliable, secure and cost effective solutions as bespoke or managed

business.

As a Dell Certified Partner, a Microsoft Gold Certified Partner, an HP Preferred Partner and

an authorised partner for CISCO networking systems, Avaya VoIP solutions, Riverbed WAN

optimization products and APC/ MGE UPS Systems, CES is the premium supplier of IT

equipment with Zimbabwe. CES Zimbabwe is a joint endeavour between Cambria and CES

Bytes & Pieces, a leading IT services provider in Zambia and Mozambique. CES is still a

very small part of Cambria, having been launched only 12 months ago.

Forget Me Not Africa (FMNA)

FMNA provides ‘message optimiser’ applications for mobile phones, turning basic GSM

phones into ‘smart phones’, providing access to e-mail, Facebook and instant messaging

services via even the most basic cellphone handset, which is an important facility for Africa.

During the year, LonZim purchased the exclusive rights for the FMNA product platform in

Africa for US$1 million (£0.61 million).FMNA’s major success has been with Econet

Zimbabwe which is now producing monthly revenues. Other networks where FMNA has

been deployed include Safaricom Kenya, Econet Lesotho, Globacom Nigeria, Warid Congo

and Yu and Essar in Kenya. FMNA now has access to over 45 million cellphone subscribers

in 6 countries and plans to expand throughout Africa as the product range is developed and

its services are synchronised to interact with individual networks.

FMNA generated US$ 776k (2011: US$ 470k) in operating losses for the half year ended 29

February 2012, an increase of 65% from the prior comparable period. This has resulted in

management writing off Cambria’s FMNA’s shareholder loans, as well any goodwill

associated with Cambria’s shareholding in FMNA.

Cambria considers FMNA non-core and anticipates that this investment will

eventually be sold.

Cambria considers FMNA

non-core and anticipates

that this investment will

eventually be sold.

17 | P a g e


Discontinued Operations

Aldeamento Turistico de Macuti SARL (Mozambique)

On 4 October 2011, Cambria announced that it had completed an agreement with Lonrho

Hotels (Holdings) Limited to dispose of its 80% holding in Aldeamento Turistico de Macuti

SARL for US$5.1 million (£3.1 million), a company with a long lease on a prospective

coastal development site in Beira, Mozambique, as part of Cambria’s growing focus on the

economic opportunities within Zimbabwe.

Aviation

As of the 31st of August Cambria held assets to the value of £2,111,000 for sale. This was

made up of 2 aircraft which are still being actively marketed and the Company would hope to

find buyers within the FY12. The Group used to lease two aircraft to 540 (Uganda) Limited, a

Lonrho Plc subsidiary, for US$52k (£34k) per month. One of the leases was cancelled at the

end of February 2011. The total lease income for the year to 31 August 2011 amounted to

US$485k (£296k). As at 31 August 2011, US$518k (£317k) was due from 540 (Uganda)

Limited to the Company. Fly 540 Aviation, a Lonrho Plc subsidiary, is acting as an agent in

the recovery of the insurance money relating to the LonZim Air (BVI) Limited aircraft written

off. As at 31 August 2011, US$100k (£61k) is payable from LonZim Air to Fly 540.

18 | P a g e


Financials

Summary Financial Performance

Since its incorporation in 2007 Cambria has made significant recapitalisations and capital

injections to support and grow its subsidiaries. For example, this is evidenced by the

refurbishment of the Leopard Rock Hotel to an international standard venue that is now

attracting conferences and guests from around the world, and the purchase of world class

printing machines for Celsys, to fully equip it.

Cambria’s subsidiaries are coming to the end of their redevelopment phase with a strong

indicator being the positive EBIT achieved by Payserv, Millchem, Celsys and CES between

them over the six months ending Feb-2012 . Moreover, each business has achieved market

leadership in their respective (sub) segments within their markets.

To date the company has invested a total of $9.6 million throughout the subsidiaries.

Recapitalisation of Cambria`s subsidiaries

Celsys $4.5 million

Payserve $0.5 million

Leopard Rock $3.0 million

Millchem $1.5 million

CES $0.15 million

Total $9.65 million

For the six months ended 29 February 2012 revenues and gross profit of Cambria grew to

US$ 6.4 million (2011 US $4.8 million) and US$ 3.6 million (2011 US $ 2.5 million)

respectively, representing corresponding growth of 32% and 42% to the equivalent prior

period. Combined gross profit of Cambria’s five core companies was US$ 3.5 million during

the period under review, compared to US$ 2.1 million last year, representing an increase of

64%. Operating loss, prior to accelerated write-offs of intangibles and goodwill for the period

under review was US$ 4.2 million. Adjusted for costs associated with (i) Forget Me Not

Africa (US$ 776K); (ii) the Lonrho Management Agreement; Non-Compete Agreement and

various related charges (US$ 1.8 million); (iii) ZSE Listing Preparation Fees (US$ 350K);

and, (iv) ‘one-off’ charges associated with the transition away from Lonrho (US$ 439K); as

well as, (v) a one off gain on divestment (US$ 575K), this operating loss becomes US$ 1.4

million. As at February 29th, 2012, the Company had net assets of US$ 36.2 million (2011

US$ 52.1 million) and a market capitalization of US$ 16.4 million. Cambria’s assets,

following the various write-offs undertaken during the period under review, are almost

entirely tangible (US$ 40.3 million or 94%). On 16 September 2011 the Company raised

US$ 1.4 million gross by way of a placing with institutions of 3,988,439 new ordinary shares

of £0.0001 each at 23p per share.

To date Cambria has

invested a total of $9.6

million throughout its

subsidiaries.

Cambria’s assets, following the various write-offs undertaken

during the period under review, are almost

entirely tangible (US$ 40.3 million or 94%)

19 | P a g e


Historical and forecast financial performance

Our estimates show group revenues rising by 98% to £11.7m [approx. US$ 16m] this year,

then a further 50% to £17m in FY13.Costs are estimated to increase in the FY12 as a result

of maintaining discontinued operations and accelerated write offs but however in anticipation

that the operations up for disposal will be rid of in FY12 as well going forward costs will

decline gradually. Interest receivable is expected to reduce as cash is used to support

growing operations. The majority of the increase in cost-base occurred during FY10, and the

company is already through with its investment phase, going ahead all of its initiatives would

augment overall improvement in the quality of its earnings and profitability.

CAMBRIA HISTORICAL AND FORECAST FINANCIAL PERFOMANCE

In March 2012, Cambria acquired a total of US$ 3.0m in secured debt at a cost of 15% p.a.

of which US$ 1.0m will mature after one year and US$ 2.0m will mature in two years. The

lenders have the option to convert all or a portion of amounts due and owing into convertible

debt on terms similar to any convertible debt which may or may not be raised by the

company from third parties. In the event of default, the lenders have the option to convert all,

or any portion of the outstanding indebtedness into shares in Cambria at a 15% discount to

the share price at the date of the agreement. We expect the group to continue posting

negative earnings until FY13. We anticipate improved profitability from FY 14 with EBITDA

margins reaching 19%. The strong profitability should be supported by solid performances

from Paynet, Tradanet, Leopard Rock and Millchem. Furthermore we believe that the

disposal of loss making investments and the recent restructuring provides a platform for

stronger earnings performance in future years.

31 Aug(£ ‘000’)

2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F

Income Statement

Turnover 188 2607 4900 5926 11727 17236 20906 24 599 28465

Gross Profit 122 1035 2166 3366 6932 10188 12355 14540 16826

EBITDA -1935 -924 -3738 -3960 -7607 2290 3170 4896 6699

PBT -1090 1087 6611 -6611 -9790 376 2030 3674 5388

Attributable income -1232 913 -5134 -6569 -9207 667 1471 2663 3906

Balance Sheet

ASSETS

Total Non Current Assets 14 030 30 549 29 052 28 973 27435 27614 28694 29828 31019

Total Current Assets 21 793 6 835 7 210 6 094 10765 15097 19879 23717 27659

Total Assets 35 823 37 384 36 262 35 067 38199 42710 48573 53545 58679

LIABILITIES

Total Current Liabilities 1 221 2 516 2791 2 746 4686 7437 11712 14623 17493

Total non-current liabilities 866 1 394 1561 1443 1883 2548 3506 4677 6202

EQUITY

Issued share capital 4 3 4 5 5 5 5 5 5

Total Equity 32 832 32 579 31 670 31 171 30555 30869 31161 31535 32026

Minority Interests 904 895 240 (293) (217) (40) 274 736 736

Total Equity and Liabilities 35 823 37 384 36 262 35 067 38199 42710 48573 53545 58679

20 | P a g e


Key Valuation

In our opinion a Sum of The Parts (SoTP) valuation and a Discounted Cash flow (DCF)

valuation are the most comprehensive and proper measures to value Cambria given the

conglomerate nature of the company. The early-stage situation, as well as the current

repositioning and transformation of Cambria`s various operations, makes it less meaningful

to use PE and EV/EBITDA multiples for the valuation. The majority of Cambria`s operating

companies are expected to become cash flow positive by the end of calendar year 2012.

Dividend pay-outs are still zero.

We assigned equal weighting to the two valuation methods, the Discounted Cash flow

method yielded a fair price of 29.52p, the Sum of the Parts valuation yielded a fair price of

35.98p to give a weighted average price of 32.75p, converted to USD it represents 49.12

cents and 92.64% upside potential

The upside in our view is the real option value in, and central view of the Cambria`s

equity story. The valuation is not necessarily a realisable break-up value of the

company considering how depressed the local market for Zimbabwean assets is.

Cambria comes to list on the Zimbabwean Stock Exchange at a time that investors are being

urged to pick stocks that are successfully working towards recapitalisation, as well as

businesses with strong management teams, solid cash flows and healthy levels of debt.

Cambria possesses the three golden attributes as they are very essential for survival and

generation of profits going forward. Cambria`s subsidiaries have synergistic qualities to

position the company at a better stage, due to the dominant market shares in their

respective business units. We recommend investors to BUY the stock based on the

attractive valuation [TP, $0.50]

Cambria comes to list on the Zimbabwean Stock Exchange at a time that investors are being

urged to pick stocks that are successfully working towards recapitalisation, as well as

businesses with strong management teams, solid cash flows and healthy levels of debt.

Cambria possesses all three golden attributes which are very essential for survival and

generation of profits going forward. Cambria`s subsidiaries have synergistic qualities to

position the company at a better stage, due to the dominant market shares in their

respective business units.

Methodology Weight Assigned

Fair Price Weighted average fair

price

DCF 50% 29.52 14.76 Sum of Parts 50% 35.98 17.99 Weighted Average Fair Price (GBP) 32.75 GBP/USD 1.54 Weighted Average Fair Price (USD) 50.4

Current Price (USD) $0.26 Upside/(Downside) % from current price 93%

Cambria is listing on the Zimbabwean Stock Exchange at a time that investors are being urged to pick stocks that are successfully working towards

recapitalisation, as well as businesses with strong

management teams

21 | P a g e


Cambria Plc DCF Valuation

*The hotel was valued by independent valuers

Valuation Inputs

Terminal Growth Rate[*LT stable growth for Zimbabwe] 5.0%

Cost of Capital Calculation

Risk Free Rate [*SSA average proxy [Nigeria, Kenya, Zambia]] 9.0%

Risk Premium 16.2%

Beta 1.12

Cost of Equity 27.1%

Average cost of borrowed funds 12.0%

Marginal Tax Rate 30.0%

Post Tax Cost of Funds Borrowed 8.4%

Market Value of Equity (GBP '000) 9 308

Market Value of Debt 4 000

WACC 21.51%

CAMBRIA PLC SUM OF THE PARTS VALUATION

GBP '000 2012 E 2013 E 2014 E 2015 E 2016 E NOPLAT (9 790) 376 2 030 3 674 5 388 Add: Depreciation & Amortization

2 310 1 460 641 673 707

Less: Changes in working capital

2 731 1 581 508 927 1 072

Less: Capex 980 1 029 1 080 1 134 1 191 Free Cash Flow to Firm (FCFF)

(11 190) (774) 1 083 2 285 3 832

Year Fraction 0.31 1.31 2.31 3.31 4.31 PV of FCFE (10 914) (696) 899 1 750 2 706 Terminal Cash Flow 24 369 PV of Terminal Cash Flow 24 369 DCF Valuation PV of future cash flows (6 256) PV of terminal value 24 369 Enterprise Value 18 114 Less: Net debt 670 Equity Value 17 444 Outstanding Shares (Million)

59.1

Fair Value per share (GBP) 29.52

Division Valuation Synopsis Estimated Valuation

USD Celsys ZSE Market capitalisation 1.10m Millchem 20% Discount to regional peer

EV/EBITDA of 15x 1.65m

Leopard Rock *Valuation of property, game reserve, conference facility and recently acquired castle.

18.50m

Paynet and Tradanet Business valuation based on revenue guidance, highly cash generative business.

18.60m

Total 39.85m Others @ 10% of divisions 3.90m Total 43.80m Net Debt 1.00m 20% Holding company discount 10.90m Equity holders value 31 .90m Shares in issue 59 .1m Intrinsic value per share (USD) 0.5397 GBP pence 0.3598

22 | P a g e


All of Cambria`s subsidiaries are now operating at above 70% capacity utilization with

Celsys being exceptional at 100% capacity utilization. Celsys is well positioned to meet

demand with the recent acquisition of state of the art machinery. Millchem has been rated as

one of the most consistent suppliers in the country and it sees even bigger opportunities in

the Zambian markets where it can take advantage of economies of scale. Payserve is well

positioned to be operating efficiently and has the capacity to be exploiting more markets like

the Zambian and the Tanzanian market. Leopard Rock is now at par with international

standards and thereby able to attract more clientele

Key risks to our valuation

Slower than projected rate of economic recovery

Cambria`s success is underpinned by the rapid economic recovery of Zimbabwe, however

as noted earlier that there is considerable divergence of opinion regarding future economic

growth rates. The uncertainty arises from the current political environment which is not very

clear in terms of when elections will be held. Zimbabwe`s current prospects are largely

underpinned by political developments and key reforms which might later result in partial

debt forgiveness and a general improvement of the business climate. The IMF notes that

economic growth in Zimbabwe is dependent on the implementation of policies which are

supportive of foreign investment in order to prevent a decline in inwards investment. Clearly

these policies are also directly supportive of Cambria which also needs to be able to secure

its investment in Zimbabwean assets and to repatriate proceeds from investments so it can

pay dividends at an appropriate point.

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Directors and Senior Management

The Board of Cambria currently consists of seven (7) Directors of whom, two (2) are

Executive Directors. The full names, addresses and occupations and brief profiles of the

Company’s current directors are shown below.

Ian Perkins, Non Executive Director and Chairman

Ian Perkins has over 40 years' London City experience. Until 1991 he was at James Capel &

Co. where he was a Director and Head of Fixed Income. Between 1991 and 1996, Ian was

Director and later Chief Executive Officer (CEO) of listed bank King & Shaxson Holdings plc.

When Gerrard Group acquired King & Shaxson in 1996, Ian became a Director of Gerrard

Group plc and Chairman of the Gerrard & King bank. Following Gerrard Group’s takeover by

the Old Mutual Group in 2000, he became a Director of Old Mutual Financial Services plc,

and the CEO and later Chairman of GNI Limited until 2003. Thereafter until 2010, Ian was

Chairman of fixed income and inter-dealer broking firm King & Shaxson Limited.

Paul Turner, Non Executive Director, Vice Chairman

Paul Turner is a Past President of the Institute of Chartered Accountants of Zimbabwe. He is

a highly respected and knowledgeable member of the Zimbabwean business community.

Paul was previously a Senior Partner at Ernst & Young in Harare, Zimbabwe for over thirty

years and brings an unparalleled level of experience in the structure and operation of

businesses in Zimbabwe. Paul is a qualified Chartered Accountant, registered both in

Zimbabwe and South Africa.

Edzo Wisman, Director and Chief Executive Officer

Prior to joining Cambria in 2010, Edzo Wisman was Managing Director of Stuart Lammert &

Co., a Toronto and New York based corporate advisory firm that he founded in 2003. Prior,

Edzo was a Vice President; Investment Banking with Toronto based CCFL Advisory

Services. Previously, he was with Wilshire Associates; first with the consultancy practice in

Amsterdam, servicing some of Europe's largest institutional investors; and then with the

Private Markets Group at Wilshire’s Santa Monica, California headquarters, seeking

opportunities in the leveraged buyout markets. Prior he was with the investment department

of KLM Royal Dutch Airline. Edzo holds a Doctorandus degree in Finance from the

University of Groningen.

Tania Sanders, Director and Chief Financial Officer

Tania Sanders previously held increasingly senior roles within finance and IT with Anheuser-

Busch Europe Ltd., culminating in her role as European IS Manager. Previously, Tania was

a Senior Audit Manager with Deloitte (South Africa) in Cape Town, focusing on large

multinational listed clients in the automotive, maritime, mining and leisure sectors. Tania is a

Chartered Accountant and holds a Bachelor of Commerce (Accounting) from University of

Cape Town and a Post Graduate Diploma in Accounting from the University of South Africa.

Paul Heber, Non Executive Director

Paul Heber is an investment manager and stockbroker with more than 20 years’ experience

in global stock markets, following 3 years in the oil industry. Formerly with SGHambros,

NatWest and WI Carr, he is now with bespoke boutique Savoy Investment Management.

Savoy has in excess of GBP 1.2 billion of private and institutional funds under management

and is regulated by both the FSA in London and the FSB in Johannesburg.

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Fred Jones, Non Executive Director

Fred Jones is the Chairman of Jutland Group; a private Hong Kong based investment

management and commodity firm which he founded in 2006 to manage portfolios of foreign

exchange, precious metals and international debt. Fred also founded Jaramcor International,

a commodity supply-chain manager and supplier of pulp/paper, chemicals and agricultural

products. He was previously Vice President, Private Client Services, at Bear Stearns Global

Wealth Management. Fred was also with the International Private Client Group of Merrill

Lynch. He holds a BSc in Accountancy and an MBA in Finance from Florida A&M University.

Itai Mazaiwana, Non Executive Director

Itai Mazaiwana started his career in research and education at the Institute of Mining

Research at the University of Zimbabwe as an Analytical Geochemist. Itai holds a BSc in

Chemistry and Geology and an MSc in Analytical Chemistry, both from the University of

Zimbabwe. He has published a number of papers on low level detection of gold.

Roy Meiring, Chief Executive Officer (Hotel Division)

Roy Meiring has over 35 years of experience in the hotel industry in Zimbabwe and the

region. He undertook his initial hotel management training program at The Carlton Hotel in

Johannesburg with Western International. In 1977, Roy joined Meikles Southern Sun Hotels

and was General Manager of Troutbeck Inn. After five years with Meikles Southern Sun

Hotels, he joined T.A. Holdings as Group Managing Director, managing Cresta Hotels and

Safaris, with a presence in Zimbabwe, Botswana and the Region. Between 1992 and 2011,

Roy was Chief Executive Officer of the Meikles Hotel Division (Meikles Ltd), which included

The Meikles Hotel in Harare (Zimbabwe), Cape Grace in Cape Town (South Africa) and The

Victoria Falls Hotel Partnership. The three hotels are members of the Leading Hotels of this

World Group. Roy is a Fellow of the Hotel Catering and Institutional Management U.K.

(“FHCIMA”).

Nyaradzo Mudzamiri, Strategy and Corporate Development

Prior to joining Cambria, Nyaradzo Mudzamiri was with KPMG Corporate Finance in

Johannesburg (South Africa) and Harare (Zimbabwe), focusing on Mergers & Acquisitions,

Valuations and Restructuring. She has gained valuable experience across multiple sectors,

working for local and international clients with operations in Zimbabwe, Zambia, Namibia,

Malawi and South Africa. Nyaradzo holds a Bachelor of Science Honours degree in

Economics from the University of Zimbabwe and a banking diploma awarded by the Institute

of Bankers (Zimbabwe).

Shareholding Structure: Top 5 shareholders

Lonrho Plc 23%

Consolium Emerging market Absolute Return Master Fund 22%

Jutland Capital 17%

Contrarion Capital Management 8%

Barclays Wealth 3%

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Contact information

Research

Ritesh Anand [email protected]

Simbiso Musa [email protected]

Trading Langton Nyatsanza

[email protected]

Tinashe Magodora [email protected]

© 2012 Invictus. All rights reserved.

The analysts of the Invictus Securities Research Department hereby certify that the opinions expressed in this

research report reflect their personal views and that no part of their compensation was, is, or will be related to the

views or recommendations contained in this report in any way. The research professionals principally responsible for

the preparation of this research report have received or will receive compensation based upon various factors,

including quality of research, investor client feedback, and investment banking revenues.

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Equity Research - Cambria Africa · ANALYSTS Ritesh Anand [email protected] Simbiso Musa...

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