[2008-04-30]   UCL to Pay Sh500m in Dividend
UGANDA Clays (UCL) is to pay sh500m or sh100 per share in a final dividend for the five million ordinary shares.

This is after the building materials leading manufacturer recorded an increase in net profits to sh2.1b last year from sh1.3b the previous year
This has been attributed to the regional construction boom.

The announcement boosted UCL's share price to a high of sh10,495 from sh7,030 at the close of trading on Tuesday.

UCL realised a 38% increase in production to 50,088 tonnes last year from 36,361 tonnes in 2005.

This follows the installation of a new sh1b construction line at the Kajjansi factory.

The company recorded an increase in turnover to sh11.6b in 2007 from sh9.9b the pervious year.

Charles Rubaijaniza, the company secretary, however, explained that following the rights issue, the dividend payable would be sh56 per share of the nine million ordinary shares.

"The dividend will be paid from September 18 after the annual general meeting on August 29," Rubaijaniza said.

He said the company had launched an expansion drive with a new factory set to be opened in Kamonkoli, near Mbale town in the eastern region.

The factory construction expected to cost sh26.3b was financed by bank loans, Rubaijaniza said.

"The funds raised from the rights issue will be used to offset sh9.6b of the loans that had been advances as short-term bridge finance and will be reflected under current liabilities in the balance sheet," he said.

UCL offered four million new shares to shareholders at a discount of sh2,650.

The company raised sh10.6b to partially fund the new factory.

This is expected to enable it extend its footprint into Kenya and South Sudan.



Source: COPYRIGHT@ALLAFRICA