UGANDA CLAYS LIMITED
ANNUAL REPORT
AND
AUDITED FINANCIAL STATEMENTS
31 DECEMBER 2023
UGANDA CLAYS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CONTENTS
PAGE | |
Company information | 1 - 2 |
Report of the directors | 3 - 4 |
Statement of directors' responsibilities | 5 |
Report of the independent auditor | 6 - 10 |
Financial statements: | |
Statement of profit or loss and other comprehensive income | 11 |
Statement of financial position | 12 |
Statement of changes in equity | 13 |
Statement of cash flows | 14 |
Notes to the financial statements | 15 - 54 |
UGANDA CLAYS LIMITED
COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023
BOARD OF DIRECTORS | : | Eng. Martin Kasekende | Chairman |
Mr. Richard Byarugaba(term ended | |||
: | 30th June 2023) | Member | |
: | Mr. Bayo Folayan | Member | |
: | Mrs. Marion Adengo Muyobo | Member | |
: | Mr. Joseph Tukuratiire | Member | |
Mrs. Florence Namatta Mawejje | |||
: | (term ended 30th June 2023) | Member | |
: | Mrs. Peninnah Tukamwesiga | Member | |
: | Mr. Henry Ngabirano | Member | |
: | Dr. Tom Mutyabule | Member | |
: | Mr. Reuben Tumwebaze | Managing Director | |
REGISTERED OFFICE | : | 14km Entebbe Road | |
: | Kajjansi | ||
: P. O. Box 3188 | |||
: | Kampala, Uganda | ||
INDEPENDENT AUDITOR | : | Ernst & Young | |
: Certified Public Accountants of Uganda | |||
: Ernst & Young House | |||
Plot 18, Clement Hill Road | |||
Shimoni Office Village | |||
P. O.Box 7215,Kampala | |||
: | Kampala, Uganda | ||
COMPANY SECRETARY | : Lex Uganda Advocates & Solicitors | ||
: 8th Floor, Communication House | |||
: Plot 01, Colville Street | |||
: P. O. Box 22490 | |||
: | Kampala, Uganda | ||
COMPANY REGISTRAR | : | SCDD Registrars | |
: Block A, 4th Floor | |||
: UAP Nakawa Business Park | |||
: Plot 3-5 New Port Bell Road | |||
P. O. Box 7111 | |||
: | Kampala, Uganda | ||
PRINCIPAL BANKERS | : | Standard Chartered Bank (U) Limited | |
: | Speke Road | ||
: P. O. Box 7111 | |||
: | Kampala, Uganda | ||
: Stanbic Bank (Uganda) Limited | |||
: Plot 17 Hannington Road | |||
: P. O. Box 7131 | |||
: | Kampala, Uganda | ||
: Equity Bank Uganda Limited | |||
: | Kajjansi | ||
: P. O. Box 10184 | |||
: | Kampala, Uganda |
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UGANDA CLAYS LIMITED
COMPANY INFORMATION (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
PRINCIPAL BANKERS (CONTINUED)
- Housing Finance Bank Limited
- Plot 25 Kampala Road
- P. O. Box 1539
- Kampala, Uganda
- Centenary Rural Development Bank Uganda Limited
- Plot 44 - 46 Kampala Road
- P. O. Box 1892
- Kampala, Uganda
- KCB Bank Uganda Limited
- P. O. Box 7399
- Kampala, Uganda
- KCB Bank South Sudan Limited
- Buluk Plaza
- P. O. Box 47
- Juba, South Sudan
- Absa Bank (U) Limited
- Plot 2/4 Hannington Road
- P. O. Box 7101
- Kampala, Uganda
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UGANDA CLAYS LIMITED
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors submit their report and the audited financial statements for the year ended 31 December 2023 which disclose the state of affairs of the Company.
PRINCIPAL ACTIVITIES
The principal activities of the Company are those of production and sale of wide range of baked clay building products.
BUSINESS REVIEW | 2023 | 2022 |
Shs'000 | Shs'000 | |
(Loss)/profit before tax | (4,341,239) | 2,909,610 |
Income tax credit/(charge) | 1,489,989 | (467,860) |
Profit for the year | (2,851,250) | 2,441,750 |
During the year 2023, the total turnover of the Company reduced from Shs 36.6 billion to Shs 30.4 billion. This was mainly attributed to increased machinery breakdowns that caused stock outs of major products in the second and third quarter of the year. The Company incurred a loss before tax of Shs.4.3 billion from the profit before tax of Shs 2.9 billion in 2022 reflecting the effects of a higher reduction in revenue compared to the direct and indirect costs. The Company purchased critical spare parts in the third quarter of the year which saw the Company production volumes increase in the last quarter. It has also continued to invest in the capacity expansion project in which it is to install a new plant. This will increase the efficiency levels resulting from higher volumes and better quality of products.
As at 31 December 2023, the net asset position of the Company increased to Shs 43.24 billion compared to Shs 41.75 billion as at 31 December 2022.
Key performance indicators | 2023 | 2022 | |||
Shs'000 | Shs'000 | ||||
Turnover | 30,449,841 | 36,616,096 | |||
Gross profit | 8,684,383 | 14,750,216 | |||
Gross profit margin | 29% | 40% | |||
(Loss)/profit for the year | (2,851,250) | 2,441,750 | |||
Net profit margin | (10)% | 7% | |||
Net assets | 43,236,618 | 41,748,138 | |||
Return on capital employed | (7)% | 4% | |||
PRINCIPAL RISKS AND UNCERTAINTIES |
The overall business environment continues to remain challenging and this has a resultant effect on overall demand of the company's products and services. The company's strategic focus is to enhance sales growth whilst maintaining profit margins, the success of which remains dependent on overall market conditions.
In addition to the business risks discussed above, the company's activities expose it to a number of financial risks which are described in detail in Note 34 to the financial statements.
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Uganda Clays Ltd. published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 10:43:14 UTC.