Al Shaheer Corporation, which sells meat products under ‘Meat One’ and ‘Khaas’ brands, has announced that the board of directors has decided to expand the existing business to enhance the profitability and the shareholders’ wealth.
According to a notification issued to the PSX, the ordinary paid-up share capital of the company will be increased from Rs. 1.42 billion to Rs. 1.999 billion by the issuance of 57 million ordinary shares of the company worth Rs. 10 each.
The company has decided to issue 40.7 right shares for every 100 shares held i.e. 40.7% at par which will be Rs. 10 per share.
The funds from the rights issue will be utilized in the working capital, in order to increase business volumes. Capital expenditure will also be incurred for opening new business sites and the development of new markets.
This will result in an overall increase in the company’s revenue and corresponding profitability of the company.
From Losses to Profits
2018-2019 was the most difficult year in Al Shaheer Co’s history. The company had posted losses during the year because of an unfavorable external business environment.
The company has been restructured alongside extensive efficiency-building and cost-saving programs. The company has also made improvements by managing its expenses.
Aided by an export-favorable exchange rate, these efforts have yielded positive results, allowing Al Shaheer to close the year with healthy profits. For the year ending on June 30th, 2019, the company turned its losses into profits posting gains of Rs. 190 million as compared to a loss of Rs. 43.98 million in the same period last year.
The company continued to perform well in the first quarter of 2019-20 as it posted a profit of Rs 22.11 million, up by 13% compared with Rs. 9.19 million last year.
The company is engaged in trading in different kinds of halal meat including goat, cow, chicken, and fish, both for the export market and local sales through its chain of retail stores.
ASC’s shares at the bourse were closed at Rs. 13.98, down by Rs. 0.93 or 6.50% with a turnover of 431,500 shares on Monday.