It is a public limited company listed on Karachi and Islamabad stock exchanges. Bannu Woollen Mills Limited was incorporated in NWFP in 1960 having its registered office located in Habibabad Kohat.
The company is primarily engaged in manufacture and sale of woollen yarn, cloth and blankets. On 20th September 2004, the price of the company's share closed at Rs 43.75 which is more than 4 times of the par value.
During the last one year the market value Bannu Woollen Mills shares ranged between Rs 36.10 and Rs 36.40 per share.
The company has excellent track record of regular and attractive dividend pay-outs. It has robust financial backbone as there is no long term debt and current assets by for exceeds its current liabilities.
Its modest paid up capital continues to be constant at Rs 60.70 million but shareholders equity is very close to 3 times of the capital.
The company made addition in the fixed assets to Rs 30.91 million during the first half of the financial year 2003-04. Mostly, the additions were in plant and machinery.
Sales of the company decreased by 7.95% to Rs 83.86 million for the first half months ended on March 31, 2004 as compared to Rs 91.11 million posted in the same period last year (SPLY).
The decline in sales was due to adverse market conditions since July 2003. Demand for woollen cloth reduced because of shorter winter and cheap imported of synthetic fabrics sold as pure wool or wool blend in every city of Pakistan.
Gross margin remained under pressure and eroded by 6.53% percentage points from 25.26 to 18.73% in the period under review.
The company piled up unsold finished stock worth Rs 30.10 million at cost. Naturally, the higher inventory exerted immense pressure on sale prices. Operating expenses were on the lower side and financial charges were slashed by a million rupees.
So pretax profit was down at Rs 5.56 million as compared to Rs 10.59 million posted in the same period last year. The management is optimistic about sales in the second half year.
The chairman of its Board, Raza Kuli Khan Khattak affirmed that management is committed to provide innovative solution.
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Performance Statistics (Million Rupees)
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Balance Sheet -As At-
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March 31 September 30
2004 2003
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Share Capital-Paid-Up: 60.70 60.70
Reserve & Surplus: 111.40 110.65
Shareholders Equity: 172.10 171.35
Surplus on Revaluation of
Fixed Assets: 198.25 198.27
Deferred Liabilities: 24.77 20.19
Current Liabilities: 151.20 182.70
Fixed Capital Expenditure: 332.72 314.56
L T Investment-at Cost: 6.58 6.58
L T Deposits: 0.29 0.34
Current Assets: 206.73 251.03
Total Assets: 546.32 572.51
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Profit & Loss A/C For
The Half Year Ended March 31 2004 2003
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Sales (Net): 83.86 91.11
Gross Profit: 15.71 23.02
Operating Profit: 6.64 12.56
Other Income: 1.78 2.36
Financial (Charges): 2.30 3.49
Profit Before Taxation: 5.56 10.59
Profit After Taxation: 0.74 7.64
Earning Per Share (Rs): 0.15 1.51
Share Price (Rs) 20-09-04: 43.75 -
Price/Earning Ratio: 291.66 -
Book Value of Share (Rs): 28.35 22.23
Debt/Equity Ratio: 0:100 0:100
Current Ratio: 1.36 1.37
Gross Profit Margin (%): 18.73 25.26
Net Profit Margin (%): 0.88 8.38
R.O.A: 0.14 1.33
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COMPANY INFORMATION: /Chairman: Raza Kuli Khan Khattak; Chief Executive: Muhammad Azhar Khan; Director: Lieutenant General Ali Kuli Khan Khattak.(Retd); Company Secretary Senior Manager Corp Affairs: Amin-ur-Rasheed B.Com (hons) FICS; Chief Financial Officer Finance Manager: A.R. Tahir; Registered Office: Habibabad Kohat-NWFP; Web Address: Not Reported; Factory: D.I Khan Road Bannu-NWFP
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