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PCL hopes for better results
By
Aubrey Mchulu - 27-03-2003 |
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Press Corporation Limited (PCL) chairman Dean Lungu said on Wednesday the conglomerate anticipates better dividend and profit margin in 2003 because it has “cleaned up” all poor performing subsidiaries.
Lungu, speaking in an interview after the PCL shareholders annual general meeting held at National Bank Training College in Blantyre, said PCL is hoping for better results because besides the cleanup, it is investing in the telecommunications and tourism sectors which, he said promise to yield very positive results.
During the meeting, PCL declared a dividend of K1.19 per share for the year 2002 compared to K1.33 per share declared in 2001.
Lungu said “the year 2002 was somewhat difficult for Press Corporation Limited” when, among other things, earnings per share declined by 4.5 percent from K4.41 in 2001 to K4.40.
But the shareholders present at the AGM queried why PCL raised directors’ fees by 20 percent when dividend paid to shareholders remained almost the same.
To this, Lungu said the “sick-babies” like Hardware and General Dealers Limited and Press Bakeries, which PCL dropped in the cleanup, were eating up the profits.
“There is no finality in the cleanup but we are confident we covered most of the very dirty hence we have assured the shareholders to look forward to better results this year,” he said.
In the annual report presented to the shareholders, PCL said it intends to increase its holdings in H&P; Steel to 50 percent parity with the other shareholder, MacSteel. The report says H&P; Steel’s earnings were higher than in 2001 apparently due to continuing high demand for steel products by the construction industry.
Lungu also said PCL has renewed its interest in acquiring “a substantial stake” in Malawi Telecommunications Limited (MTL) after its previous technical partner, Econet Wireless of South Africa, pulled out without consulting PCL.
“We responded favourably to this request [to express interest in MTL] and have since confirmed our renewed interest in acquiring a substantial stake in MTL,” reads the report in part.
PCL also says a trial to grow chambo in cages, initiated following the sharp decline in catch volumes for chambo by its subsidiary Maldeco Fisheries, was conducted successfully early 2002 and a financial feasibility study is under-way to determine the commercial viability of the venture.
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