KARACHI, Oct 12 Sapphire Textile Mills proposes to invest Danish Krone (DKK) 980,000 in the equity of Beirholms Sapphire A/S, a company incorporated in Denmark.
The fresh flow would double Sapphire's investment to 49 per cent of its equity. Directors told the shareholders that it was a strategic investment, which would result in increased sales of home textiles in Europe for Sapphire Textile Mills.
“Beirholms Sapphire A/S is the marketing company for home textile which will procure orders and part of it will be for Sapphire Textile resulting in increase in exports for the company,” directors said.
The special resolution would be moved at the company's annual general meeting (AGM) to be held on Oct 31. The board of directors of Sapphire Textile announced financial results for the year ended June 30, posting profit-after-tax (PAT) amounting to Rs180 million, translating into earnings per share (EPS) of Rs8.59.
The earnings retreated from PAT of Rs618 million and EPS at Rs30.76 a year ago. The company announced cash dividend at Rs1.50 (15 per cent) for the year.
Revenue from sales and services recorded growth of 19 per cent to Rs11.7 billion for the year under review, from Rs9.8 billion last year. But almost all of the benefit in both the years was lost to rising expenses.
The redeeming feature last year was the 'other operating income' amounting to Rs858 million, which stood down to Rs151 million in the year under review and so left its impact on the bottom line.
Further information in respect of Beirholms Sapphire A/S - the investee company related to its share capital, which stood at DKK 2 million and was to be raised to DKK 4 million “to meet its operating requirements”. Sapphire would purchase additional shares at DKK 1,000 per share, which carried the breakup value of DKK 542 per share. The Danish firm was in its first year of operation.
Sapphire Textile said it would purchase shares from company's own sources.
Other group company results Sapphire Fibre announced profit-after-tax (PAT) at Rs387 million and earnings per share (EPS) at Rs22.12 for the year ended June 30, 2009, down from Rs1.2 billion and EPS at Rs69.28 the year ago.
Directors declared bonus shares at 12.50 per cent (12.50 shares for every 100 shares held).
Sales were almost a billion more at Rs7.5 billion, from Rs6.5 billion last year and though costs also rose, the company had to swallow the bitter pill of a huge plunge in 'other operating income', which amounted to Rs224 million compared to Rs1 billion the previous year.
Sapphire Reliance Cotton Spinning Mills recorded profit for the year at Rs144 million, which was twice the earnings of Rs72 million the year before.
Directors announced final cash dividend at Rs1.50 per share (15 per cent) for the year ended June 30, 2009.
