Graphic records nearly 200% net profit in 2012

newspapersGraphic Communications Group Limited (GCGL) on Thursday declared a dividend of GH¢600,000.00 for 2012, an increase of 20 per cent over that of 2011.

The company’s turnover increased from GH¢30.2 million in 2011 to GH¢41.8 million in 2012, representing 38.4 per cent increase, the highest growth in the past five years.

The net profit after tax grew by 195.8 per cent from GH¢2.4 million in 2011 to GH¢7.1 million in 2012.

Mr Kenneth Ashigbey, Managing Director of GCGL, said at the Company’s Annual General Meeting that the financial performance was ‘unprecedented’ in its recent history, saying it was a year that also saw growth of single copy sales of newspapers.

He said out of the 2012 turnover, advertising and newspaper sales contributed 52 per cent and 48 per cent respectively.

“Our flagship newspaper, the Daily Graphic, maintained its flagship position by contributing 82 per cent of our total newspaper sales in revenue,” he added.

He said the good results achieved in turnover and profitability was done on the back of increasing cost of production and foreign exchange losses.

Mr Ashigbey said the new KBA Comet Press was employed full scale to engage in production of newspapers for the entire year by doing 385 production runs converting over 7,400 tonnes of paper into products.

“Conversion was very efficient, with an overall yield of 98.2 per cent. Print quality was superb. Contract printing for other newspaper companies and other organisations improved capacity utilization to about 54 per cent,” he added.

He gave the assurance that the company would continue to explore possibilities to increase utilization of the press’ installed capacity.

“To this end, we are converting the press from a pure newspaper press to include book printing capacity enhancing the plant’s capacities by investing in a Quarterfold accessory. This will make the plant ready for book and magazine printing… by October 2013,” he said.

Dr Doris Yaa Dartey, Board Chairperson, emphasized the company’s commitment to strong corporate governance practices that allocated rights and responsibilities among the shareholder, the Board and the Executive Management to provide for effective oversight and management of the company in a manner that enhanced the stakeholder’s value.

“The Board of Directors ensured the proper maintenance of good internal procedures and systems, adherence to rules and regulations, and compliance with legal requirements through scheduled meetings of the Board and its committees,” she said.

Dr Dartey said a new design centre would soon be set up within the Marketing Department to assist clients with art work and designs for their advertisements.

She said all the measures were in response to meeting the challenges ahead and growing market demands in line with the company’s revised five-year strategic plan to become the biggest and the most influential media organization in West Africa.

“We will continue to uphold high standards in our re-designed newspaper brands and strengthen our on-line presence. We will also endeavour to work towards achieving our vision and living our mission,” she said.

Dr Dartey, therefore, expressed appreciation to the shareholder (government), customers, employees and the directors for their interest, loyalty, dedication and invaluable support.

Source: GNA

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