By Our Reporter
Uganda Clays (UCL) has released its audited financial results for 2015 in which it recorded a reduction of net loss to Ushs 1.2 billion from Ushs 5.2 billion in 2014. This performance was attributed to income that came in from land compensation by the Uganda National Roads Authority (UNRA) for the Entebbe Express Highway as well higher revenues. The company’s gross profit margin recorded an upsurge to 32.1% in the same period compared to 19.1% previously.
Cost of sales fell by 8.5% year on year to Ushs 16.4 billion compared to Ushs 17.9 billion previously due to the change to a more affordable firing fuel at the large Kamonkoli factory. Finance costs were marginally lower to Ushs 4.2 billion from Ushs 4.5 billion in 2014 mirroring the full payment of the commercial bank loans in December 2015.
UCL revealed to its shareholders at last year’s Annual General Meeting that the company was in discussions with NSSF Uganda on a possible conversion of this debt into equity. The results of these discussions are yet to materialize publicly. However, the company Chairman Martin Aliker in an interview with The CEO Magazine last month said UCL was out of the woods and that the equity bail out arrangement with NSSF may no longer be necessary.
“NSSF bought our debts from the banks we owed and took over the arrears. We are working very hard to pay them off what we owe to avoid the equity swap. The figure is around Ushs 20 billion,
