There have been highs and lows for Uganda Clays, at one point, the brick manufacturer came close to being buried by the weight of debt, however, the company seems to be headed on the right path.
The published Uganda Clays Limited (UCL) unaudited financial results for the first six months of 2016 show a profit of sh1.3b up from a sh1.3b loss in June 2015.
Revenues rose marginally by 8.9% to sh12.4b from sh11.4b in June 2015 previously according a Crested Capital report.
Management attributed this to tight liquidity in the economy for the first half of this year along with political instability in South Sudan.
Cost of sales were reduced by 0.7% to sh7.96b from sh8.02b in the first six months of 2015 showing maintained focus on controlling the high costs of production.
"Assets improved slightly from sh62.7b to sh63.7b while liabilities were down 2.9% to sh36.1b. Shareholders' equity appreciated by 8.3% to sh27.6b up from sh25.5b in the first half of last year. Retained earnings advanced to sh6.6b from sh3.1b at the beginning of this year," Crested Capital said in a report.
The company increased its cash and cash equivalents by sh2.1b owing to an improvement in net cash flows from investing activities which stood at sh3.1b in the six months to June 2016.
The company's board of directors did not recommend payment of an interim dividend.
Earnings per share improved to sh1.41 ($0.0004) reflecting the company's profitability in the first half of this year. Return on equity and return on assets were at 4.61% and 2% respectively.