Find visitors' favorite businesstravel Hotels And.... Book your best!

Uganda Clays makes sh3b loss

Uganda Clays

Uganda Clays

Monday, 9th May, 2011


UGANDA Clays recorded a sh3.8b loss last year due to a rise in the cost of production and financing, the company’s 2010 audited financial results indicate.

The report attributes the rise in losses to the high cost of commercial bank loans used to fund the firm’s expansion at Kamonkoli in Mbale.

The delay in realising income to counter the costs put a strain on the company’s cash flow needed to meet the financiers’ obligations, resulting into higher financing costs.

The losses after tax rose by 82% to sh3.8b, from sh707m in 2009 despite a 6% rise in turnover to sh17.8b, from sh16.7b in 2009.

To counter the losses, the company management has secured a long-term loan from the National Social Security Fund (NSSF), its biggest shareholders partly to re-finance the relatively high-cost loans from commercial banks.

New Vision reported in August last year, that the clay moulder was seeking a sh11b loan from NSSF at 13-15% annual interest.

The report revealed that part of the loan was used to purchase machinery for increasing kiln output at Kamonkoli, and purchase spares for the Kajjansi factory.

“The required overhaul of the clay preparation line at Kajjansi factory was not carried out due to the aforementioned strain on working capital, negatively affecting product output,” the report explains.

Earlier this year, Charles Rubaijaniza, the chief executive officer, announced plans to lay off some 189 “unproductive staff” to save the company some sh1b per annum. He said 89 workers had already been laid off.

By Samuel Sanya: The New Vision Newspaper

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Africa Uganda Business Travel News .



Haven't yet found what you Want...?

If you haven't yet found what you were looking for or you need detailed information about the subject matter on this page

then...

feel free to ask our business travel consultants.





Book a Prisons & Correctional
Charity Tour


Farmland for Sale
Prime Commercial Property
Entebbe Rd Land 4 Sale
Over 20 Farmland Parcels
Property & Plots of Land

Uganda Online SuperMarket
africaug.com
Online SuperMarket

Uganda Coffee Safari
Book My Coffee Tour

Uganda Honey
Uganda HoneyComb

Subscribe to our Business Travel Newsletter


Enter Your E-mail Address
Enter Your First Name (optional)
Then

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Africa Uganda Business Travel News Digest.

Hotel Booking

Car RentalCar Hire

Africa Uganda Shipping & Handling ServicesShipping & Handling Services


Our Sponsorship Policy


Apple Guavas available
Africa Uganda Plants GuideAfrica Plants Guide

Charity Investment Guide
Changing Lives

Africa Uganda SMS Guide
Africa Bulk SMS

Poultry Investment Guide
Poultry Business Guide

Related Pages



Uganda Hotels Directory

Uganda Hotels Booking Guide


Houses U can buy Uganda Real Estate Guide Industrial/Farmland Deals

Uganda Real Estates Guide


The Mountain Gorilla

Uganda Safari Guide

Uganda Weather Today





Book My Hotel

Please note that all fields followed by an asterisk must be filled in.
YES
NO
YES
NO

Please enter the word that you see below.

  



Uganda Currency

Ex-guide