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The Financial Express

Yeakin cuts 75pc production for 2 months

Layout set up begins to install new machinery


FE Report | Published: December 27, 2017 10:55:03 | Updated: December 27, 2017 15:57:16


Yeakin cuts 75pc production for 2 months

Yeakin Polymer has reduced 75 per cent production capacity as the company will change the total factory machinery layout plan for installation of the new capital machinery.

"The company needs to change the total factory machinery layout plan for installation of the new capital machinery in line with newly- constructed shed and established electricity connectivity," according to a disclosure posted on the Dhaka bourse's website Tuesday.

Locally, layout set up started from Tuesday and foreign expert will start their work from January, 2018. It will take two months to complete the whole process, the disclosure said.

"So, the company's major production process remained halted from Tuesday to February 25, 2018. During this period company will be able to produce 25 per cent of its capacity," the disclosure said.

The Khulna-based polypropylene (PP) woven bag manufacturer raised Tk 200 million through initial public offering (IPO) last year for purchasing machinery and construct a factory and administrative building.

Meanwhile, the company was downgraded to 'B' category from 'A' category as the board of directors approved only 5.0 per cent stock dividend for the year ended on June 30, 2017.

The stock brokers and merchant bankers are requested to abstain from providing loan facilities to their clients against trading of the shares of Yeakin up to 30 trading days from December 24 as per securities regulator's directive in this regard.

The company has also reported earnings per share (EPS) of Tk 0.58, net asset value (NAV) per share of Tk 13.00 and net operating cash flow per share (NOCFPS) of Tk 0.05 for the year ended on June 30, 2017 as against Tk 0.66 (restated), Tk 15.62 and Tk 0.80 (restated) respectively for the same period of the previous year.

In 2016, the company disbursed 10 per cent stock dividend.

Each share of the company, which was listed on the Dhaka bourse in 2016, closed at Tk 21.20 Tuesday on DSE, losing 4.07 per cent over the previous session.

The company's paid-up capital is Tk 649 million and authorised capital is Tk 1.0 billion while the total number of securities is 64.90 million.

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