Uganda Clays searching for investors

Uganda Clays is looking for a strategic investor to help the company realise its production capacity and increase profitability.

National Social Security Fund (NSSF), which is the largest shareholder in Uganda Clays, will combine efforts with the tiles manufacturer to search for a partner who will increase the company’s capital base with a view of acquiring new production technology to position the company as a major competitor.

Speaking during the company’s annual general meeting in Kampala, Mr George Inholo, the Uganda Clays managing director said: “We have appointed the transaction advisor on the issue of NSSF debt and getting a strategic investor to partner with us in the clay business.”

Uganda Clays, Mr Inholo said, in 2017 widened it’s distribution network and segmented the company into territories with key partners in new sales, creating 13 outlets across the country.

In 2014, Uganda Clays turned a Shs17b NSSF debt into shares after the company, which had borrowed money in 2011, struggled to pay back following a streak of losses.

However, the company has in the last two years returned to probability
In 2017, Uganda Clays registered a profit after tax of Shs2.39b and grew its revenues by 4.5 per cent to Shs27.20b up from Shs26b in 2016.

During 2017, the company also reduced its liabilities by Shs2.3b to Shs34.92b.
However, expenses rose 21.48 per cent representing Shs7.83b driven by increases in administrative and distribution expenses.

HARD TIMES
Uganda clays has been going through some hard times cutting its staff from 590 to 323 people due to the closure of operation in South Sudan. The company has also had some challenged with its Kamonkoli plant in eastern Uganda which continue to operate below capacity.