Vision profits down to sh3b
Sep 17, 2009
THE New Vision Printing and Publishing Company’s pre-tax profits dropped to sh3.5b, down from sh6.7b for the year ended June 2009, the firm’s audited results have showed.
By Sylvia Juuko
THE New Vision Printing and Publishing Company’s pre-tax profits dropped to sh3.5b, down from sh6.7b for the year ended June 2009, the firm’s audited results have showed.
Rising costs and a sharp depreciation of the shilling were some of the factors that affected the firm’s performance, a statement signed by Gervase Ndyanabo, the company secretary, said.
It added that a combination of costs of running radio stations, local imported inflation and increases in fuel prices, hiked operational costs.
“Operating profit and profit before tax, were lower than the same period last year due to an increase in cost of imported raw materials and depreciation of the exchange rate,†said the September 16 statement.
However, the company recorded a 10% rise in turnover to sh43.2b from sh39b registered during the previous period.
“The growth came mainly from the new revenue streams like radio advertisement and a 16% growth in the website advertising.â€
Despite a fall in profits the directors have recommended a final dividend of sh15 per ordinary share totaling sh1.1b.
This is lower than the sh22 per shared issued in 2008.
The dividend will be paid January 14th 2010 to shareholders on the share register at the close of business on November 19 2009.
It said that new printing machinery has arrived in the country and the construction of the company was nearing completion.
“Despite the challenging economic climate, we remain in a solid financial state, well capitalized and have a firm grip of risk management and cost control,†the company said.
Going forward, the company adds that the coming year is that of consolidation of the new investments with positive prospects for growth.
“Growth is projected to come from in all revenue streams after the integration and the company will be in a solid and better position for growth.â€
THE New Vision Printing and Publishing Company’s pre-tax profits dropped to sh3.5b, down from sh6.7b for the year ended June 2009, the firm’s audited results have showed.
Rising costs and a sharp depreciation of the shilling were some of the factors that affected the firm’s performance, a statement signed by Gervase Ndyanabo, the company secretary, said.
It added that a combination of costs of running radio stations, local imported inflation and increases in fuel prices, hiked operational costs.
“Operating profit and profit before tax, were lower than the same period last year due to an increase in cost of imported raw materials and depreciation of the exchange rate,†said the September 16 statement.
However, the company recorded a 10% rise in turnover to sh43.2b from sh39b registered during the previous period.
“The growth came mainly from the new revenue streams like radio advertisement and a 16% growth in the website advertising.â€
Despite a fall in profits the directors have recommended a final dividend of sh15 per ordinary share totaling sh1.1b.
This is lower than the sh22 per shared issued in 2008.
The dividend will be paid January 14th 2010 to shareholders on the share register at the close of business on November 19 2009.
It said that new printing machinery has arrived in the country and the construction of the company was nearing completion.
“Despite the challenging economic climate, we remain in a solid financial state, well capitalized and have a firm grip of risk management and cost control,†the company said.
Going forward, the company adds that the coming year is that of consolidation of the new investments with positive prospects for growth.
“Growth is projected to come from in all revenue streams after the integration and the company will be in a solid and better position for growth.â€