SIMBA
COUTIONARY NOTECE TO MEMBERS
TANGA CEMENT PUBLIC LIMITED COMPANY (DSE: TCPLC)
(Incorporated in the United Republic of Tanzania) (“Tanga Cement PLC”)
In accordance with the rule number 53/6] of the Dar es Salaam Stock Exchange Rules, companies are required to publish a cautionary notice as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported upon next will differ by at least 255: from the financial results for the previous corresponding period,
Accordingly, shareholders are advised that Tanga Cement PLC expects that the Operating Loss before Interest and Tax for the six months ended 30 June 2021 to be between 200% and 225% lower than that achieved in the comparative period ended 30 June 2020.
Tanga Cement PLC also expects that its Loss per Share for the period ended 30 June 2021 will be between TZS 120 per share and TZ 127 per share, being between 45% and 55%: lower than its Loss per Share of T2S 82 per share for the six months ended 30 June 2020.
The breakdown and subsequent repair of our major clinker production unit in February 2021 is the mam driver for the decrease in financial performance. To sustain the cement production and supply to our customers in the country the company had to purchase 117,259.19 tons of clinker, which substantially increased the cost of production. This contributed to an increase in cost of sales by 28%, to TZS 89.2bn from TZS 69.9bn reported in the comparative period to 30th June2020.
Following the significant maintenance and repair work completed, management 15 positive about the sustainable performance of its entire plant to yield the desired production for the future.
The company expects to publish ils unaudited financial results for the six months ended 30th June 2021 by no later than the 30 th of September 2021 in line with the Dar es Salaam Stock Exchange Rules.
Shareholders are accordingly advised to exercise caution when trading with the company’s securities.
The financial information on which this trading statement is based has not been reviewed or reported on by Tanga Cement PLC’s auditors
On behalf of the Board.
Lawrence Masha
Chairman of the Board
28 September 2021
