[2007-10-17]  Uganda Clays Profits Surge
SHAREHODLERS of Uganda Clays Ltd will again earn Shs40 per share, despite a huge increase in the company's net profits.

The listed company posted a profit before tax of Shs1.6 billion in the first six months as at June 30 up from its Shs932 million in 2006, reflecting a 82 per cent increase, according to the company's financial report released on Monday.


But despite registering an extra Shs764 million in profit, the company's board of directors has decided that shareholders will not earn any additional dividends on their investments.

"This is because of the many financial obligations arising out of the company's expansion programmes," said a statement from the Company Secretary, Mr Charles Rubaijaniza on Monday.

According to the company, the programmes include the establishment of a second brick and tile factory in Budaka District estimated to cost Shs20 billion, acquisition of a 500 KVA generator as well as installation of a new and more efficient power supply line.

Publicity about the funding of the new factory through a rights issue on the Uganda Stock Exchange last month boosted the company's share price from Shs3,230, to more than Shs3,400 and currently stands above Shs5,000.

According to Mr John Wafula, the chief executive officer, the process is due to be completed in December.

The company's sales also grew from Shs4.4 billion in 2006 to Shs5.9 billion due to adjustments in the price of bricks, increased construction in the economy and a surge in demand for tiles and bricks from external markets such as Southern Sudan.

The company plans to pay up to Shs200 million in interim dividends to its shareholders on November 30.





Source: Copyright © 2007 The Monitor.