UGANDA CLAYS LIMITED UGANDA CLAYS LIMITED
EXTRACT OF THE UNAUDITED FINANCIAL STATEMENT FOR THE SIX MONTHS ENDED 30TH JUNE 2023.
1. STATEMENT OF PROFIT OR LOSS
2023 (Ushs 'M) | |
Revenue | 13,299 |
Cost of sales | (9,644) |
Gross profit | 3,655 |
Other Income | 599 |
Overhead costs | (5,233) |
Profit before income tax | (979) |
Income tax credit/(expense) | 293 |
Profit after tax for the period | (686) |
Basic earnings per share | (0.76) |
2. STATEMENT OF FINANCIAL POSTION
2022 (Ushs 'M)
18,032
(10,142)
7,890
562
(6,645)
1,807
(542)
1,265
1.41
4. STATEMENT OF CASHFLOWS | ||
2023 (Ushs 'M) | 2022 (Ushs 'M) | |
Operating activities | ||
Cash from operations | 2,412 | 4,203 |
Taxes paid | (716) | (894) |
Net cash generated from operating activities | 1,696 | 3,309 |
Investing activities | ||
Cash paid for purchase of property, plant and equipment | (3,226) | (10,060) |
Procceds from bonds | 257 | 2,300 |
Net cash used in investing activities | (2,970) | (7,760) |
Financing activities | ||
Short term loan | 1,000 | - |
Net cash used in financing activities | 1,000 | - |
Movement in cash and cash equivalents | ||
At start of the year | 1,371 | 5,952 |
2023 (Ushs 'M) | |
Non - Current Assets | 53,689 |
Current assets | 23,923 |
Total assets | 77,612 |
Equity | 41,062 |
Non - Current Liabilities | 24,799 |
Current Liabilities | 11,751 |
Total Equity and liability | 77,612 |
3.STATEMENT OF CHANGES IN EQUITY
2022 (Ushs 'M)
49,594
27,515
77,109
41,921
25,145
10,043
77,109
Increase/(decrease) in cash and cash equivalent | (274) | (4,451) |
At end of year | 1,098 | 1,501 |
Overview
The Board of Directors of Uganda Clays Ltd is pleased to release the interim condensed financial statements (un-audited) for the six months ended June 30th, 2023. The first half of the year has been challenging due to unfavorable macroeconomic conditions,
characterized by high inflation and the depreciation of the Ugandan shilling against the Euro, which impacts the company's equipment purchases. Though there are signs of cost inflation cooling down, it remains a concern that will persist throughout the year. The company's revenue has declined, primarily due to frequent machinery breakdowns. Despite the current market slowdown, the company is committed to investing in its capacity expansion project, which is expected to boost growth prospects once the volumes increase. The company is dedicated to implementing measures to protect the environment and ensure the health, safety, and well-being of its employees.
Performance Highlights
Revenue from sales was UGX 13 billion, 26% lower than UGX 18 billion in June 2022 due to low sales volumes caused by frequent machinery breakdown. Gross profit decreased by 54% to UGX 3.7 billion compared to UGX 7.8 billion in June 2022, driven by low production volumes resulting in lower revenues being generated.
Ordinary share | share premium | Revaluation | Retained earnings | Proposed | Total | |
capital (UShs 'M) | (UShs 'M) | reserve (UShs | (UShs 'M) | dividends | (UShs | |
'M) | (UShs 'M) | 'M) | ||||
At start of the year | 900 | 9,766 | 852 | 29,780 | 450 | 41,748 |
Transfer of excess depreciation | - | - | - | - | - | - |
Deferred tax on excess transfer of | - | - | - | - | - | - |
excess depreciation | ||||||
Dividends paid | - | - | - | - | - | - |
Proposed dividends | - | - | - | - | - | - |
Profit for the year | - | - | - | (686) | - | (686) |
At end of year | 900 | 9,766 | 852 | 29,094 | 450 | 41,062 |
Overhead costs decreased by 21% to UGX 5.2 billion from UGX 6.6 billion in June 2022 driven by management cost management initiatives. As a result, the company made a loss before tax for the period of 686 million compared to the profit before tax of UGX 1.3 billion in June 2022.
Balance sheet - The total assets increased by 1% to UGX 77.6 billion from UGX 77.1 billion in June 2022, attributed to continued capital investment in the capacity enhancement project.
Cash-flows- The total cash and cash equivalents reduced by 27% to UGX 1.1 billion from UGX 1.5 billion in June 2022. This is largely due to the decrease in sales revenue for the period in addition to the capital investment for the capacity expansion project.
Current trading and outlook
Inflation has been consistently dropping, and this trend is expected to lower production costs. As the company continues to invest more in repairing existing machinery, we anticipate a steady increase in the company's revenue during the second half of the year.
Message from the Directors
The interim condensed statements have been prepared in accordance with IAS 34 (Interim Financial Reporting) and the accounting policies used are consistent with those used in annual financial statements for the year ended December 31st, 2022. The statements should be read in conjunction with the company`s audited financial statements for the year ended December 31st, 2022.
The audited financial statements for the year ended December 31st, 2022 are available on the company's website www.ugandaclays.co.ug.
The financial statements were approved for issue by the Board of Directors on 29th August 2023, and signed on their behalf by:
Eng. Martin Kasekende | Reuben Tumwebaze |
CHAIRMAN OF THE BOARD | MANAGING DIRECTOR |
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Disclaimer
Uganda Clays Ltd. published this content on 07 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 September 2023 13:38:07 UTC.
