New Vision profits grow by 40% to sh4.7b

Sep 25, 2008

THE New Vision Printing and Publishing Company has posted a 40% rise in net profits to sh4.7b in the year ending June 2008, up from sh3.7b, the company’s audited accounts have shown. The company’s profitability was boosted by Intensive cost control measures and rise in turnover.

By Sylvia Juuko

THE New Vision Printing and Publishing Company has posted a 40% rise in net profits to sh4.7b in the year ending June 2008, up from sh3.7b, the company’s audited accounts have shown.

The company said in a statement on Wednesday that turnover also grew by 19.7 % to sh39b, up from sh32b.

“This was mainly because of higher sale volumes from all the revenue centres.

Advertising volumes increased and new product improvement initiatives contributed to increased circulation sales and commercial printing revenue was also positive,” the statement explained.

Intensive cost control measures and rise in turnover boosted the company’s profitability, the statement added.
The statement shows that basic and diluted earnings per share rose to sh93 from sh66 the previous year.

Shareholders will receive a final dividend of sh22 per share (inclusive of the rights issue), which will be paid on January 15, 2009.

The company recently concluded a successful rights issue where sh29.1b was raised over and above the required sh28b.

“We have concluded successfully the process of raising funds for investment through a rights issue and we have embarked on the implementation phase for the expansion programme,” the statement said.

The funds will finance major expansion plans that include the purchase of a modern printing press, construction of a bigger capacity factory and an office block. The company has also expanded and consolidated its investment in electronic media.

The group has kicked off investment in the electronic media. Two new radio stations; Vision Voice and Bukedde FM, have been started.

The group has also through acquisition bought Radio West covering the western, southern and a big part of central region.

The annual general meeting is scheduled for October 30 at the Imperial Royale Hotel, Kampala. New Vision’s share was trading at sh1,940 at the close of trading on the bourse on Tuesday.

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