Accra,(Greater Accra Region) 15 Oct. Despite the increase in Paterson Zochonis (PZ) Ghana Limited's turnover, no dividends will be declared this year. According to the company's audited results for the year ended May 31, 1997 released to the GNA today, lack of local response to last year's Rights Issue, the construction cost of a new soap factory, financed from an overdraft at a high cost, have contributed to this situation. Overdraft charges this year were pegged at 1.3 billion cedis against the 603,132 million cedis for 1996. According to the results, sales were in line with expectations, but the high cost of borrowing and the resultant effect on cash flow had adversely affected profits. PZ's turnover, which rose to 19.8 billion cedis from 14 billion cedis, was 42 per cent over the same period last year. Profit after tax declined for the same reasons from 914.8 million cedis to 506 million cedis; a steep decline of over 80 per cent. Share earnings dropped to 18 cedis this year compared to last year's 32.67 cedis.
Accra,(Greater Accra Region) 15 Oct. Despite the increase in Paterson Zochonis (PZ) Ghana Limited's turnover, no dividends will be declared this year. According to the company's audited results for the year ended May 31, 1997 released to the GNA today, lack of local response to last year's Rights Issue, the construction cost of a new soap factory, financed from an overdraft at a high cost, have contributed to this situation. Overdraft charges this year were pegged at 1.3 billion cedis against the 603,132 million cedis for 1996. According to the results, sales were in line with expectations, but the high cost of borrowing and the resultant effect on cash flow had adversely affected profits. PZ's turnover, which rose to 19.8 billion cedis from 14 billion cedis, was 42 per cent over the same period last year. Profit after tax declined for the same reasons from 914.8 million cedis to 506 million cedis; a steep decline of over 80 per cent. Share earnings dropped to 18 cedis this year compared to last year's 32.67 cedis.
