Accra, March 28, GNA - The modest profit made by Produce Buying Company Limited (PBC) for 2006/07 financial year prevented management from declaring dividend at the Annual General Meeting held in Accra on Friday.

The company made a net profit after tax of GH¢713,605 and managed to reduce its deficit from GH¢642,175 to GH¢191,833. Consequently, shareholders at the Seventh Annual General Meeting of the Company expressed misgiving about the inability of PBC to pay dividends on their shares in the last few years.

Nana Timothy Aye Kusi, Board Chairman of PBC, however, assured shareholders that every effort would be made to continue to clear the deficit, which hit the company two years ago, so as to pave the way for the payment of dividend in the very near future. Nana Kusi explained that despite the significant reduction of the company's turnover and its attendant reduction in gross profit, its net profit before tax increased by 156.6 per cent over previous year's figure of a loss of GH 1.261 million cedis.

He said the modest profit achieved after two continuous years of losses was an indication that the Company had "resurrected from its poor performance and ready to take off to higher heights in terms of growth and profitability".

The Chairman said PBC deepened the bonds with cocoa farmers during the year by hosting annual farmers' ceremonies in all cocoa growing regions where about 1,500 farmers were given various awards. He added that management planned to widen the Company's frontiers of assistance to farmers by undertaking other social and community responsibilities in the ensuing years.

Nana Kusi said PBC's cocoa production volume of purchases decreased by 23 per cent from 242,473 tonnes in 2005/06 to 186,051 tonnes representing 30.4 per cent of the market share during the year. He said the Company in a bid to diversify its revenue base, secured GH 8.5 million cedis medium term loan to acquire 100 cargo trucks and 30 articulated trucks, which would boost PBC's revenue through increased secondary cocoa evacuation.

On the outlook, Nana Kusi said PBC would continue to explore avenues to reduce operating cost and ensure quick recycling of Seed Fund, adding that the Company's leadership position in the internal cocoa market would be maintained and improved upon. Mr. Anthony Osei Boakye, Managing Director, PBC, said management had fashioned out a three-year medium term corporate plan with the objective of evolving strategies, programmes, systems and procedures to ensure prudent financial and operational management of the company to achieve its set target within the period.

"We plan to adopt an aggressive marketing posture by expanding our field operations in major cocoa growing areas to combat the intense competition in the internal cocoa market in the ensuring years," he added. Members approved the buy-back of some of the company's shares.