Cambria Africa Plc

("Cambria" or the "Company")

Trading Update FY 2021

Unaudited EPS of 0.03 US cents and NAV of 1.16 US cents

Cambria Africa PLC (AIM: CMB) ("Cambria" or the "Company") announces its unaudited FY 2021 accounts for the 12 months ended 31 August 2021. Audited results and annual report was delayed due to the impact of the Omicron Virus on our resources and will become available by end March 2021. A copy of this announcement is available on the Company's website (www.cambriaafrica.com).

Cambria earned 0.03 US cents per share during FY 2021 compared to a loss of 0.07 cents share in FY 2020.  Despite the turnaround in earnings, NAV declined by US $79,000 from 1.18 US cents to 1.16 US cents per share. The decline despite the earnings contribution was due to a market valuation drop of $200,000 for the Company's business property from US $2.3 million to US $2.1 million (valuation by Hollands conducted on the 27^th of January 2022).  As at 28 February 2022, total cash on hand is $1.556(0.29 US cents)  million including $1.330 million in Cambria's accounts outside Zimbabwe (85% of cash resources). Cash balances were down 6% from the Fiscal Year end 2021 mainly related fees for maintaining the listing. NAV is estimated to be at 1.15 cents per share as of 28 February 2022.  The Company continues to rationalise its operations by reducing staff costs and overheads - and maximizing the value to shareholders from the remaining hard assets, intellectual property, and cash.

Tradanet, a 51% owned subsidiary of Paynet Zimbabwe, which processes microloans for CABS (Zimbabwe's largest building society), is the Company's most profitable operation.  The turnaround is attributable to loan values and salaries catching up with inflation. 

Autopay - the Company's Payroll operation saw its revenues decline as Paywell granted non-exclusive licenses to multiple competitors including former employees. During the Fiscal Year 2021, the company reached a management agreement with Propay (Pvt) Ltd and established former account executives as independent contractors. This has resulted in significant cost containment and aligning the incentives of Payroll executives with that of Autopay.

Millchem's remaining business, the production of sanitisers and disinfectants, traded marginally positive. The sector has been characterised by significant competition and ease of entry by multiple small players in the chemicals industry. With the lower disposable income of the general population, high quality sanitizers have lost market share. Our joint venture with Merken (Pvt) Ltd. remains cash flow positive, but will likely wind down by the end of this Fiscal Year if demand does not improve.

Officially, the value of the Zimbabwe dollar (ZWL) to the US dollar fell by 2% since the prior trading year however these figures belie the true depreciation in the market value and purchasing power of the Zimbabwe dollar from FY ended 31 August  2020 to 31 August 2022.  The fall in the purchasing power of the local currency has continued in the six months since the end of the Company's fiscal year. As elections near, uncertainty increases, while economic policies remain fluid and unpredictable.

The strategic goals of the Company in FY 2021 have been, and continue to be, as follows:

-      Conserving of cash resources of US$1.65 million

-      Achieving value for US $1.35 million held by the Reserve Bank of Zimbabwe (RBZ) as "Legacy Debts" or "Blocked Funds".  This asset has been deprecated in our accounts to the official value until such time as the RBZ honours this commitment.

-      Achieving value for US $175,000 of Old Mutual shares at the current JSE market value through repatriation of these shares to the Johannesburg register where they were transferred from to the Zimbabwe Stock Exchange (ZSE). This transfer was in reliance on fungibility of dual listed shares. Fungibility of multi-listed shares has been withdrawn by action of the Zimbabwe government and acquiescence of Old Mutual plc. The shares continue to be suspended on the ZSE

-      Achieving and maximizing full international value for the equivalent holding of  $4.98 million in equivalent shares of Radar Holdings plc  at 35 US cents per share or US $1.743 million.

-      Maximizing value for the Company's intellectual property both in current and future operations.

We remain cautiously optimistic about achieving full value for the Company's assets even beyond its NAV. At this point in time, we feel it is still possible to increase shareholder wealth through appreciation of the Company's share price to reflect at the very least, its net equity, which is for all intents and purposes is debt free.  This should bring the market valuation as of 28 February 2022 of 0.3752 US cents per share closer to the Company's current NAV of 1.15 US cents per share a three-fold difference.

Cambria remains poised to take advantage of a turnaround in the economy through the stabilization of market-driven policies, which may yet take hold in Zimbabwe.  Until such time, we will pursue the above mentioned strategies to maintain and improve shareholder value.

Extension of Reporting Deadline

Due to the effect of COVID-19 pandemic, the Company will not be able to post its annual audited report and accounts for the financial year ended 31 August 2021 (the "Annual Report") to shareholders by 28 February 2022. The Company has applied, pursuant to the guidance provided in "Inside AIM" on 27 January 2021, for an additional period to publish the Annual Report. The Company has been granted the extension and therefore the Company will publish the Annual Report by no later than 31 March 2022.