Traders at the Uganda Securities Exchange. Shares of New Vision Publishing Company closed more than 81 percent down on February 10. PHOTO | FILE | NMG New Vision and Uganda capital markets regulators have failed to provide answers for the plunge of the share price, which eroded investors’ wealth.
New Vision could report weaker-than-expected revenue growth in the next quarter, after taking a big hit from dwindling newspaper sales, overhead costs, and advertising revenues.
The company’s financial statement for the period ended June 30, 2021, shows that Vision Group posted a net loss after tax of Ush985 million ($280,000) in 2021 compared to a profit of Ush2.6 billion ($740,000) the previous year.
Shares of New Vision Publishing Company closed more than 81 percent down on February 10, causing panic among investors in Uganda’s securities.
But New Vision and Uganda capital markets regulators have failed to provide answers for the plunge of the share price, which eroded investors’ wealth.
Market capitalisation fell from $6.8 million to $5.5 million with National Social Security Fund (NSSF), the second largest shareholder after Uganda government, taking a big hit.
The stock dropped to $0.016 per share, the lowest it has traded in 18 years on Uganda bourse, from highs of $0.08 in the last week of November 2021.
“We are closely following what is happening to the stock,” said Richard Byarugaba, managing director NSSF, suggesting that management of New Vision look for fresh revenue sources and new measures to turn around the company.
“Uganda Clays is now profitable,” said Mr Byarugaba, partly after top management was changed, revenues leaks were plugged and new revenue sources were explored.
New Vision could report weaker-than-expected revenue growth in the next quarter, after taking a big hit from dwindling newspaper sales, overhead costs, and advertising revenues.
However, the company’s financial statement for the period ended June 30, 2021, shows that Vision Group posted a net loss after tax of Ush985 million ($280,000) in 2021 compared to a profit of Ush2.6 billion ($740,000) the previous year. The total asset base was Ush89.6 billion ($25 million) in 2020/21 down from Ush102.2 billion ($29 million) in 2019/20.On February 10, USE temporarily suspended trading of New Vision shares.