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No dividends for TOL shareholders despite impressive performance
2007-08-11 10:45:43
By Njonanje Samwel
Despite impressive financial records, shareholders of the Tanzania Oxygen Limited (TOL) have to wait for another one year to get their dividends.
Distribution of dividends to the prospective shareholders would start effectively next year, TOL shareholders’ annual meeting resolved.
Shareholders had to tighten their belts and use the money set aside as dividends to rescue the company from possible threat of collapse.
However, TOL Managing Director Arnold Kilewo said: `Now the company has started recording profit. We expect to start paying dividends to the shareholders next year.
The company financial performance records show that sales turnover grew by 28 per cent from 3.373bn/- in 2005 to 4.319bn/- last year, beating up annual revenue collection target by almost 100 per cent.
`During the period under review, TOL had managed to collect a profit of 102m/, a sharp rise from 47.412m/- collected in 2005.` said Kilewo.
It was revealed during the meeting that TOL gross profit also grew by 284.1% from 324.02mil/- in 2005 to 1244.6mil/- in 2006 while profit per share increased by 315% from 1,482/- in 2005 to 3,197/- last year.
However, during the 2005/6 financial year, the company recorded losses, as operational expenses increased by 14.88 per cent from 941.258m/ in 2005 to 1,081.351m/- in 2006.
During an emergence meeting early this year, TOL shareholders approved about 2bn/- to boost up the firm`s performance.
Among other sources, 1bn/- had to be sourced from the sale of shares and 1bn/- was a bank loan.
According to the agreement, each shareholder would be entitled to one share for six shares he or she held.
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