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| Business |
| Sunbird declares first dividend |
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by
Aubrey Mchulu, 15 September 2004
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19:12:56
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Local hotel chain Sunbird Tourism Limited has declared its first dividend to shareholders since listing on the Malawi Stock Exchange (MSE) in 2002.
Sunbird board chairman Leonard Mandala and director Makwemba Malonje said in the company’s results for the half-year ended June 30 that an interim dividend of K20 million translating to seven tambala per share has been declared following good results.
“This is the first time a dividend will be paid since the company was listed in 2002, following a major turn-around of the financial performance,” said the board in results published Tuesday.
The company said it has made a pre-tax profit of K59 million compared to K10 million during the same period last year while earnings per share have also increased to 22 tambala from three tambala over the same six months period.
Mandala and Malonje said operating profits rose from K50 million to K121 million and includes K23 million part-payment for Lingadzi Inn sold at K75 million in May this year.
The company has also reported that its gross turn-over amounted to K628 million compared to K532 million over the same six months period last year, representing an 18 percent increase.
Looking ahead, Sunbird said it is refurbishing its city hotels to counter increased competition on the market.
The company said the refurbishment will include minor expansions to the properties to accommodate casinos and modern conference facilities, among others.
Last year, Sunbird Tourism made a profit of K44 million but did not declare a dividend because it was covering previous losses and servicing loans used to renovate Mount Soche Hotel during the Sadc heads of state summit.
MSE operations manager John Kamanga said last week that the future is bright for hotel industry firms on the stock market because the listed companies—Sunbird and Blantyre Hotels Limited—had drastically reduced financing costs of their loans.
Earlier this year, Sunbird shares on the bourse registered price gains following the sale of 42 million of its issued 261 million shares in January.
MSE, however, cancelled the deal in April after the buyer failed to pay within the stipulated seven days.
Currently, Sunbird shares are selling at K2.05 from K1.85 each in January.
The hotel chain operates eight hotels: Mount Soche in Blantyre, Capital and Lilongwe in the Central Region, Mzuzu Hotel in the North, Nkopola Lodge in Mangochi, Ku Chawe Inn in Zomba and Livingstonia Beach Hotel in Salima.
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