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The Board of Directors of Umeme Limited have issued a profit warning, informing the shareholders of the Company, prospective investors, and the general public that based on the assessment of the Company’s performance for the year ending 31st December 2020, it is expected that the Company’s net profit will decline by more than 60% compared to the year ended 31st December 2019.
In a statement issued today March 22, 2021 by the Company Secretary, Uganda’s leading power distributor attributes the reduction in profitability to the effects of the Covid-19 pandemic, regulatory lag, and suspension of the Government’s free connections policy.
“Further details of the Company’s annual financial performance will be disclosed in the audited financial statements to be published and circulated to shareholders,” the Company said.
Against the above background, Umeme has advised Shareholders and potential investors to exercise caution while trading in the Company’s shares.
“The Company is optimistic that the recovery in the business environment as Government’s respond to the pandemic will support stronger operational and financial performance in the year ahead,” the statement reads in part.
This announcement was made under Rules 38 and 40 of the Uganda Securities Exchange Listing Rules. This announcement means that the shareholders of the Company will either not receive dividends or it will be much lower than that of 2019.
Umeme’s in net profit increased slightly to Shs139bn in 2019 from Shs132bn recorded in 2018.
Overall, revenue increased by 19% to Shs1.7 trillion in 2019 compared to Shs1.4trillion in 2018 with underlying growth in electricity sales of 6%.
Check also;
- Uganda Loses Sh 1trillion In Leather Sector Annually
- Uganda Loses Hosting Rights To International Aids Conference Due To Unstable Political Climate
- Local Government Minister To Close Schools Without Pit Latrines
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![[dropcap]A[/dropcap] section of women in Bugongo parish and Nawangaiza parish in Nawandala Sub County, Iganga District have decried the near-impossible terms set for them to access GROW funds. They have now petitioned their woman member of parliament for Iganga Hon. Kauma Sauda Alibaawo to ask the government for revised terms and conditions. This is to enable them to benefit from the program. The disgruntled women accuse the implementers of the program of charging the money. They are also asking for their land titles and land agreements. They said that such properties are governed by their husbands. These, therefore want the government through their woman MP to intervene and revise the requirements for one to benefit. The women were on Wednesday at Namabwere primary school in Nawandala Sub County. They had gathered in their respective groups to receive over 300 chickens from Hon Alibaawo in her campaign to improve the livelihood of women in Iganga district. Each group was given 50 chicken as start-up capital in their journey to prosperity. Read what some leaders said; Ms Naigambi Lydia from Nawandala Trading Centre says, “They solicited money from us through opening bank accounts and depositing Shs80,000. They also asked for land titles and land agreements from us yet we don’t have such things. I was informed that I needed to have a business with a capital of Shs4m yet my capital was very small.” The chairperson Kisoboka Saving Group in Nawandala Ms. Nakagolo Faith said they were not able to join the program. This is given the many conditions attached. She also asked their woman MP to raise their concerns to the relevant offices. The MP condemned the mode of implementation of the program. She cited that it has turned to benefit the well-off class of women other than the intended group. She further asked the government to intervene saying the current strings attached to the programme are very tight to accommodate a common woman. GROW project is a Government of Uganda initiative that arose out of the need to respond to the needs of women entrepreneurs. This is especially those who want to grow their businesses, sustain their self-employment and create more jobs. Check Also; Iganga District NRM Leaders Urge Museveni To Fulfill Election Promises Of 2021 International Women's Day: Celebrating Progress Towards Equality](https://i0.wp.com/newslexpoint.com/wp-content/uploads/2024/11/Iganga-women-decry-tough-terms-to-access-GROW-funds-e1731738339732.jpg?resize=300%2C160&ssl=1)
