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The Financial Express
Swasti Lankabangla Swasti Lankabangla

Apex Tannery to sign contract with three companies to sell finished leather

The board of directors recommends 12pc cash dividend


| Updated: September 29, 2020 18:08:20


Apex Tannery to sign contract with three companies to sell finished leather

The board of directors of Apex Tannery Limited has decided to enter into a contract with three companies to sell its finished leather.

The board has taken the decision to enter into a contract to sell its finished leather with FB Footwear Ltd., Footbed Footwear Ltd. and Nuovo Shoes (BD) Ltd. an exporter of footwear, as some directors of the company are also directors of the above three companies, according to a disclosure posted on the Dhaka Stock Exchange on Tuesday.

The contract is for sale of finished leather by the company in its usual course of business at prices of various grades and quality as mentioned in the contract, according to the disclosure.

It is estimated that the annual sale to FB Footwear Ltd., Footbed Footwear Ltd. and Nuovo Shoes (BD) Ltd. by the Company will be more or less Tk 16,50,00,000, Tk 3,25,00,000 and Tk 1,25,50,000 (it may be below the contracted amount depending on the market demand) respectively.

Meanwhile, the board of directors of the Apex Tannery has recommended a 12 per cent cash dividend for the year ended on June 30, 2020.

The final approval will come during the annual general meeting scheduled to be held on November 25 at 11:00am through Digital Platform, according to an official disclosure on Tuesday.

The record date is on October 21.

The country’s leading tannery company has also reported earnings per share (EPS) without fair valuation surplus of minus Tk 1.19, net asset value (NAV) per share of Tk 63.89 and net operating cash flow per share (NOCFPS) of minus Tk 3.34 for the year ended on June 30, 2020 as against Tk. 1.41, Tk. 69.21 and minus Tk. 8.65 respectively for the same period of the previous year.

The company has also informed that NOCFPS stood to minus Tk 3.34 during the year which was due mainly to increase in inventories as well as cash generating cycle hampered for Covid-19 resulting in a negative impact on the net operating cash flows.

Providing reliable and more relevant information about the effects of transactions, other events or conditions on the entity's they have rearrange some information in the statement of cash flows of this financial statements.

Net profit as well as earnings per share (EPS) decreased mainly due to collapse in export demand for leather and Q4 sales decreased by 80 per cent compared to same period last year due to the global Covid-19 pandemic, said the company.

This crash in sales revenue was much higher than could be overcome by an offset in cost reduction and resulted in negative PAT and EPS, the disclosure added.

Each share of the company, which was listed on the Dhaka Stock Exchange, in 1985, closed at Tk 108.40 on Tuesday.

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