Uganda Clays shares gain by 21%
Apr 18, 2007
Uganda Clays (UCL) shares jumped by 21% to close Tuesday’s trading at sh3,010 following announcement of strong profit gains.
By Peter Kaujju
Uganda Clays (UCL) shares jumped by 21% to close Tuesday’s trading at sh3,010 following announcement of strong profit gains.
The company announced a 38% growth in net profits to sh1.3b in 2006 from sh953m in 2005.
The UCL counter opened trading at sh3,005 a share and closed at sh3,010 from sh2,480 last week where it had stabilised for months. In two deals, 4,566 shares were traded.
UCL warned that it would halve its dividend to sh40 from sh80 per share in 2005 as it channels resources towards construction of a new factory in eastern Uganda.
The firm’s shares had gained over sh20,000 last year. A share split was done, putting them at about sh2,200.
“UCL had a record turnover and it would have been a record dividend if they had decided to pay a final one. The decision to retain part of the profits was worthwhile. Not many companies in Uganda have done this. It is good for the shareholders because they are building a better dividend for tomorrow,†Davis Gathaara, the head of sales and trading at Mbea Brokerage Services, said.
Uganda Clays (UCL) shares jumped by 21% to close Tuesday’s trading at sh3,010 following announcement of strong profit gains.
The company announced a 38% growth in net profits to sh1.3b in 2006 from sh953m in 2005.
The UCL counter opened trading at sh3,005 a share and closed at sh3,010 from sh2,480 last week where it had stabilised for months. In two deals, 4,566 shares were traded.
UCL warned that it would halve its dividend to sh40 from sh80 per share in 2005 as it channels resources towards construction of a new factory in eastern Uganda.
The firm’s shares had gained over sh20,000 last year. A share split was done, putting them at about sh2,200.
“UCL had a record turnover and it would have been a record dividend if they had decided to pay a final one. The decision to retain part of the profits was worthwhile. Not many companies in Uganda have done this. It is good for the shareholders because they are building a better dividend for tomorrow,†Davis Gathaara, the head of sales and trading at Mbea Brokerage Services, said.