Corporate News

Bildco announces Dh34.75m profit.

Gulf News July 28, 2004

 Abu Dhabi: The Abu Dhabi Company for Building Materials (Bildco) yesterday reported a net profit of Dh34.75 million for first half this year after sales more than doubled compared with the corresponding period last year.

Net profit also climbed on the back of higher income from investments.

Earnings per share went up to Dh14.48 ending June this year against Dh2.10 a year ago.

Bildco, listed on the Abu Dhabi Securities Market (ADSM), earned a net profit of Dh5.02 million during the first half of last year.

Analysts said the company's net profit zoomed due to higher sales this year but data available did not show if revenues were due to turnover or high prices of building materials this year.

"The cost of sales to actual sales revenues is still high which is about 84 per cent and this ratio is a bit risky because the company is left with only 16 per cent to cover other expenses," said an Abu Dhabi-based financial analyst.

"But the other income, such as income from securities and others, supports the 16 per cent," he added.

Revenues from sales during first half this year reached Dh230.92 million against Dh87.22 million same period last year.

Income from securities during the period was Dh7.65 million. The company's total expenses were put at Dh7.19 million.

Bildco's total assets grew to Dh291.92 million ending June this year from Dh219.06 million last December. While accounts receivables stood at Dh127.73 million in June last year, inventories totalled Dh62 million. Investment in securities was put at Dh22.68 million.

Shareholder's equity advanced to Dh103.26 million ending June last year from Dh72.73 million in December. The company has a paid-up capital of Dh24 million.

"With the liquidity position not quite satisfactory, we could see the company going in for a cash-cum-bonus share dividend for shareholders next year," said the analyst.

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