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Business News of Friday, 22 February 2008

Source: GNA

SPPC post income surplus

Tema, Feb. 22, GNA - The Supper Paper Products Company recorded an income surplus of GHc 73,810 between January and September last year. Mr Probal Kumar Das, Managing Director of the Company who announced this at an emergency general meeting of directors and shareholders in Tema on Wednesday said this feat was achieved through a "Strategic plan" to turn the company around.

He said the average monthly production in 2007 increased by 25 per cent over the previous year and that average sales also increased by 16 per cent over 2006.

Mr Das announced that new investors and shareholders had joined the Board of the Company, which was enjoying harmonious industrial relations, adding that a new Collective Bargaining Agreement had been concluded with the Union in a record time. He said continuous training of staff and waste reduction were being accorded top priority and the company was witnessing higher levels of operation.

The Directors proposed a Rights Issue of 13 million shares to fund purchase of equipment to modernize operations. Shareholders voted overwhelmingly in favour of the Rights Issue. As per unaudited financial report of 2007, SPPC posted an income surplus of GHc 62,661 after many years of negative results. Total sales turnover was GHc 3,096,382.

Mr Das said that, though the company achieved positive results in 2007, the last quarter saw significant rise in operating cost due to steep hike in electricity cost by 81 per cent, water by 38 per cent and RFO (boiler fuel) by about 40 per cent.

He said however that, price of toilet roll (Rose brand) remained unchanged due to competition and the company was compelled to absorb these additional costs, which impacted on its last quarter performance. Mr Das further stated that in view of the high operating costs, 2008 is a challenging year.

The Managing Director announced that Mr Francis Andoh, Investment and Financial Consultant has been appointed Chief Financial Officer and has been tasked to oversee the Right Issues and re-organize the company's financial structure, while Mr Elkin Pianim, Director of SPPC is now the Executive Vice-Chairman of the company.