Graphic to pay GHȻ600,000 dividend to govt for 2012
Graphic Communications Group Limited (GCGL) is to pay a dividend of GHȻ600,000 to government for the 2012 fiscal year.
The amount, which represents a 20 percent increase over the 2011 figure of GHȻ500,000 was recommended by the Board of Directors at the 10th Annual General Meeting of the company held in Accra on Thursday.
Delivering the financial results, the Board Chairman, Dr Doris Yaa Dartey said the company’s net profit after tax increased from GHȻ2.4million in 2011 to GHȻ7.1million in 2012.
This represented an increase of 195.8 per cent.
Similarly, the company’s turnover increased from GHȻ30.2million in 2011 to GHȻ41.8million in 2012 representing a 38.4 percent increase.
Shareholder funds also increased from GHȻ20.1million in 2011 to GHȻ26.6million in 2012, an increase of 32.3percent.
Dr Dartey maintained that keen competition in the media industry required that the company adopt strategies that would respond to the peculiar needs of the market.
She said the company did well during the period and maintained its competitiveness in the advertising market with a 70percent share of the newspaper advertising market.
”Broadly we are focusing on operational efficiency and new product development to maintain the lead in the media industry”.
Outlook for 2013
To maintain the strength and competitive edge, the company intends to set up a new design centre within its marketing department to assist clients with artwork and designs for their advertisements, the board chairman announced.
The Managing Director, Mr Kenneth Ashigbey on his part said priority would be placed on product innovation and improvement through research and aggressive marketing and improvement in delivery times to the market.
He said the company would implement the Balance Scorecard framework to ensure flawless execution of strategy.
G-Pak Limited
Touching on the company’s subsidiary, G-Pak, the managing director said it made sales revenue of GHȻ1.90million in 2012, which showed an increase of 36.7percent on the 2011 revenue of GHȻ1.39million.
Similarly, it registered a net profit of GHȻ44.390 in 2012 compared with a net loss of GHȻ184,157 in 2011.
“As I look back on 2012, I see a year of significant achievement for the company, despite the implications of the energy crisis and the increase in crude oil prices on the economy”, he said.
The MD said as a newspaper company, it extended the coverage of the campaigning, voting and the aftermath of the general elections by not only providing news but also ensured immediacy and currency of the news as it happened via www.graphic.com.gh.
On corporate social responsibility, Mr Ashigbey said in collaboration with newsprint suppliers of the company, Elof Hansson and Esswell of Sweden, free copies of the Junior Graphic are supplied to 200 least developed schools throughout the country every week.
This, he said was apart from the subsidy that the business offers on each copy of Junior Graphic as part of the promotion of reading, improving teaching and learning in the deprived areas.
Use dividend for media development
The Chairman of the National Media Commission (NMC), Mr Kabral Blay Amehere reiterated a suggestion for the use of the annual dividend paid to government by the GCCL for the development of the media in the country.
He said some of the dividends Graphic pays could be re-invested in such a project, a project the major stakeholders in Graphic cannot disapprove.
“In my view the discussion must begin on how the state-owned media could invest some of its profits in capacity building that will ensure its independence and effectiveness”.
The NMC chair maintained that the Broadcasting Bill which is still-born, captures this consideration when it proposes a Broadcasting Fund that will be funded by contribution and levies from the electronic media to assist in the development of the industry.
“The question being asked here is how much of the dividends Graphic pays every year goes to strengthen Graphic and the other media. I challenge the Board of Directors of Graphic to give full consideration to the matter in consultation with all stakeholders”.
Mr Blay-Amihere said whilst Graphic was fulfilling its obligations to government, “it may interest you to know that government or many departments under the government owe Graphic about the same amount it is paying as dividend. In fact the indebtedness of government departments to Graphic is far above the dividend declared for 2012”.
The NMC chairman said it was important that companies in which the state has a stake work on sound financial basis in order to become self-sufficient and even reach a position where they can pay dividends; but in the case of the state-owned media their relevance and functionality cannot be determined solely by how much profit they make or dividend they pay.
Ultimately they shall be assessed by how effective and faithful they are in fulfilling their constitutional duties. In this regard serious consideration must be given to the application of their profits and dividends towards their empowerment and capacity, Mr Blay-Amihere said.
Story: Enoch Darfah Frimpong / Graphic.com.gh / Ghana
Writer’s email: enoch.frimpong@graphic.com.gh