By Silvia Nyambura
Uganda Clays (UCL) has recorded higher revenues and lower costs in the first half of 2015. Observers however believe the company still has a long way to go to recovery. UCL’s net loss reduced to Ushs 1.31 billion from a loss of Ushs 2.39 billion in the first half of 2014. This was attributed to a rise in revenues coupled with reduced operating expenses as management’s cost cutting measures started to take effect.
According to a statement released by the company, total assets plummeted to Ushs 62.7 billion while shareholder’s equity plunged to Ushs 25.47 billion. The company’s liabilities were also down 0.69% to Ushs 37.22 billion in the first half of 2015 from Ushs 37.48 million in the first six months of 2014.
The Board of directors of UCL did not recommend payment of an interim dividend.
“UCL management’s focus in the second half of 2015 will be on rehabilitating equipment at the older factory and completing the proposed debt to equity conversion from its majority shareholder, NSSF Uganda, worth Ushs 11.05 billion to reduce the pressure from this large debt on operating expenses,
