Uganda Clays has failed to post profits consistently for the last 10 years
Uganda Clays Limited (UCL) has issued a cautionary statement informing its shareholders that the Company is likely to post losses in the fiest5 six months of 2020.
“Uganda Clays Limited (the Company) wishes to inform its shareholders and the general public that the Company’s unaudited financial statements for the six-month period January–June 2020, which are due to be published soon, are likely to return a loss position,” Eng. Martin Kasekende, the UCL Chairman board of directors said in a statement.
He added: “Accordingly, the shareholders are advised to exercise caution when dealing in the Company’s securities.”
It is worth noting that UCL, one of the leading manufacturers of quality baked clay building products in Uganda, operating plants in Kajjansi and Kamonkoli, recorded Shs88million loss for the year 2019 as opposed to the net profit of Shs1.9bn in 2018. The Company is listed on Uganda Securities Exchange (USE).
According to the company’s financial statements, total revenue for the period was Shs30.7 billion and was largely the same as the prior year 2018 which was Shs30.0 billion.
Officials said there was a reduction in the gross margin of 4% compared to the prior year (2019: 31%, 2018: 35%).
The Company said the reduction in the growth margin was a result of machine down time at the Kamonkoli plant during the annual maintenance shutdown, in addition to a reduction in the firing capacity occasioned by scarcity of coffee husks which are the main fuel source.
