The outgoing Chief Executive Officer (CEO) of the New Vision Printing and Publishing Company Limited Robert Kabushenga has revealed that the company will register losses in 2020/21 half year earnings.
The company has for the past two years been making losses. The shortfalls have always been to alluded to an increase in expenses at the government printing company.
In 2019, the Company registered a turnover of Shs90.2 billion in 2019 compared to Shs90.6 billion in 2018 and Advertising revenue grew by 2.8 per cent. The Company recorded a gross profit of Shs21.8 billion in 2019 compared to Shs22.8 billion in 2018 while profit before taxation was Shs3.9 billion in 2019 compared to Shs4.6 billion in 2018.
Kabushenga pegs 2020 half year poor performance to the increase in the bad debts provision for business in prior years and required to be provided for in the current period under the international financial reporting standard 9 (IFRS9) expected credit loss model.
“The board of directors of New Vision Printing and Publishing Company limited wishes to announce to stakeholders, potential investors and the general public that based on the preliminary assessment of the company’s performance , the results of the company’s earnings of the half year will be a loss position,” he said.
The company according to Wall Street Market is expected to register a loss of Shs2.33 billion in Capital Expenditures, and Shs4.58 billion in Free Cash Flow.
The company has Shs12.25 billion Cash and Short-Term Investment, Shs5.72 billion Total Debt, Shs29.83 billion Total Liabilities, Shs73.36 billion Total shareholder’s Equity and 958.91 Book Value per Share.
“The board management is committed to ensuring improved financial performance of the company. This statement is issued pursuant to rule 40 (1) of use listing rules 2003,” he said.