Miscellaneous: GRAYS OF CAMBRIDGE (PAKISTAN) LIMITED - Half Year Ended December 31 2003

The company was incorporated in Pakistan on June 02, 1964 as a private limited company by shares under the Companies Act, 1913 (Now Companies Ordinance 1984) and converted into public limited company on April 17, 1986.
Grays of Cambridge Pakistan shares are quoted on the Karachi and Lahore Stock Exchanges.
The company is engaged in the manufacture and export of quality sports goods. Both its registered office and factory are located in the Small Industries Estate Sialkot which is famous for its sports good and surgical equipment.
At present the share in the company is trading at a very high price of Rs 275 per share which is nearly 28 times of the par value of Rs 10-per share. During the last one year the price of the share appreciated from Rs 236 to Rs 398.25 per share.
According to the share statistics quoted in the Annual Report dated 30-6-2003 the Directors of the company their spouses had held 10.23% of the company's stock. Its associated undertaking Grays of Cambridge (International) Ltd England held 39.74% of its stock. Anwar Khawaja Industries (Pvt) Limited, the other associated company held 5% of its stock.
On the other hand the company has 40% stake in the equity of Grays Leasing Ltd.
During the half year ended 31st December 2003 (FHY 2003-04), the period under review, the company registered sales at Rs 42.03 million as against Rs 39.17 million posted in the preceding year.
This shares 7.3% growth over the same period last year (SPLY). Gross Profit shows 2.29% rise but Gross Margin declined showing continued pressure on cost.
Last year the company had established pilot project for composite hockey sticks. It had gone on trial production and placed the product in domestic and international market. According to the half yearly report under review, the directors anticipate further growth in the sale of products like composite and roller sticks, handles, cricket balls and accessories.
During the period under review the company's other income substantially increased from Rs 5.70 to Rs 10.57 million during the period under review.
The company has long term investment portfolio of Rs 69.34 million out of which Rs 68.4 million is in the equity of Grays Leasing Ltd the cost of the investment is Rs 72.20 million. During the period the company booked net profit at Rs 1.27 million (SPLY Rs 2.81 million).

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Performance Statistics                (Million Rupees)

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Balance Sheet                                  -As At-

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                              December 31      June 30

                                     2003         2003

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Share Capital-Paid-up:              16.33        16.33

Reserves & Profit:                 234.55       233.28

Shareholders Equity:               250.88       249.61

Current Liabilities:                10.63        42.32

Operating Fixed Assets:             20.52        19.37

L.T Investments:                    69.34       102.05

L.T Deposits:                        0.29         0.29

Current Assets:                    171.36       170.22

Total Assets:                      261.51       291.93

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Profit & Loss A/c For the

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Half Year Ended          December 31 2003         2002

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Sales:                              42.03        39.17

Gross Profit:                       15.16        14.82

Financial (Expenses):                0.35         0.13

Other Income:                       10.57         5.70

Profit Before Taxation:              2.77         5.00

Profit After Taxation:               1.27         2.81

Earnings Per Share (Rs):             0.78         1.72

Share Price (Rs) on 12-05-04:      275.00            -

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Financial Ratios:

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Price/Earning Ratio:                  352            -

Book Value of Share (Rs):          153.63       152.85

Debt/Equity Ratio:                  0:100        0:100

Current Ratio:                      16.12         4.02

Gross Profit Margin (%):            36.07        37.83

Net Profit Margin (%):               3.02         7.17

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