Financials

• CHAIRMAN'S STATEMENT 2017.

  Dear Shareholders,
  
  2017 was one of the most challenging years marked by suppressed demand for Company products coupled with sharp demand for regulatory compliance. Nevertheless I am pleased to report that our Company delivered a good set of financial results for 2017taking into account the low demand and stiff competition from within the country as well as outside the country.
  
  We remain focused in delivering our strategy investing for reliability, responsiveness and disciplined approach to cost management. These capabilities continue to anchor the Company as a regional player positioned well to capitalize on regional opportunities from SADC markets of Zambia, Malawi, Mozambique and Zimbabwe, EAC as well as local Tanzanian market.
  
  Revenue decreased by 7% to Tshs 15.0Billion in financial year 2017 from Tshs 16.1Billion achieved in 2016. Profit before tax declined by 30% from Tshs 3.1 Billion in 2016 to Tshs 2.2Billion whereas Profit after tax declined by 21% from Tshs 2.7Billion to Tshs 2.2Billion. These results clearly show that our strategy is resilient and capable of delivering returns to shareholders even in difficult circumstances.
  
  After very careful consideration, weighing up all the priorities, threats as well as opportunities facing our Company, The Board of Directors does not recommend dividend payment. In the last two years statutory compliance has risen high on the list of legal, political and economic risks that Companies operating in the region must address to ensure continued existence. Our Company has paid legacy tax claims of over Tsh 2.6 Billion from June 2017 to June 2018. Further audit by the relevant authorities are ongoing and it is expected that further statutory 11 payments may be required. The Board therefore recommends that priority should be given to settling any statutory dues that may emerge from the ongoing audit by the authorities and this way clear the path for the Company to pay dividends further on.
  
  Looking forward, our Company was poised to establish a branch in Zimbabwe having obtained the necessary permits. However a slump in demand from the existing markets coupled with some regulatory uncertainties has led the Board of Directors into halting temporally the entry into Zimbabwe. This project is therefore no longer a priority until such other time when fresh reassessment will be made.
  
  Vote of thanks
  I would like to take this opportunity to thank our staff members for their hardwork and loyalty to our Company. Similarly, I would like to thank the Board of Directors, Management, our valued customers and all stakeholders for their support and valued contribution during the year. We look forward to an improved performance in financial year 2018.
  
  Thank you all and God bless you
  Eng. Harold Temu
  BOARD CHAIRMAN