After five years of losses, C&A Textiles, a scam-hit publicly traded company, returned to profit in the fiscal year 2021-22, thanks to Alif Industries which had taken charge of the ailing company.
Following the financial wellbeing, the board of directors of the textile manufacturer on Sunday announced a cash dividend for its shareholders for FY22, the first cash dividend since its capital market listing.
Citing losses, the company’s board had not given any dividends for the previous five fiscal years—from FY17 to FY21.
Meanwhile, another listed firm – Alif Industries – has decided to amalgamate with Chattogram-based C&A Textiles, subject to court and regulatory approvals, as per a disclosure filed with the Dhaka bourse Sunday.
The board of directors of Alif Industries, as per the official disclosure, in its board meeting held on Thursday last, unanimously approved the decision to amalgamate the company with C&A Textiles.
Upon completion of the amalgamation, Alif Industries will be the surviving entity.
The approval is subject to the requisite approval of the scheme of amalgamation by the banks, other creditors and the company’s shareholders and other stakeholders, as well as sanction of the scheme of amalgamation by the High Court, according to the DSE disclosure.
Earlier, in October 2021, the Bangladesh Securities and Exchange Commission (BSEC) had allowed Alif Group of Companies to acquire C&A Textiles subject to complying with seven conditions, including the production resumption at the ailing company.
In a news conference in November 2021, the managing director of Alif Group said C&A Textiles would go into production in January 2022. However, the company failed to make any headway since the announcement.
The production of the scam-hit company had remained suspended for six years before Alif Group came in and took over the charge of the company.
Moreover, to bring the company back from the brink, the BSEC had restructured C&A Textiles’ board in March 2021.
Financial statements after six years:
C&A Textiles has declared a cash dividend of 0.4 per cent (Tk 0.04 per share) for each ordinary share only for the general shareholders other than sponsor directors for the fiscal year 2021–22. It is the first cash dividend by the company since its capital market listing in in 2015.
The textile firm’s net profit stood at Tk 2.37 crore in FY22, compared to Tk 121 crore of losses in the previous year.
“We received a waiver of ban interest of Tk 15 crore for the year ended on June 30, 2022,” C&A Textiles said on Sunday.
The declared dividend has been recommended from the sales of scrap and garments left over in the factory during the renovation process.
Its board of directors had not given any dividends from the fiscal year 2016–17 to 2020–21 due to big losses owing to the factory closure.
C&A Textiles has reported earnings per share (EPS) of Tk 0.10 for the year ended in June 2022, against Tk 5.07 negative for the previous year.
Its net asset value (NAV) per share was Tk 3.61 negative, and the net operating cash flow per share (NOCFPS) was Tk 0.04 negative for the year ended June 30, 2022, against Tk 0.00 negative for the year ended in June 2021.
The company had reported a per-share loss of Tk 2.27 for the year ended on June 30, 2017 against earnings per share of Tk 1.14 for the year ended on June 30, 2016.
The company had per-share loss of Tk 1.59, NAV per share of Tk 3.57 and NOCFPS of Tk 0.02 for the year ended June 30, 2018.
C&A Textiles reported a per share loss of Tk 1.28 for the year ended on June 30, 2019 against a per share loss Tk 1.59 for the year before.
It posted a per share loss of Tk 1.28 for the year ended in June 2020, against a loss per share of Tk 1.28 one year ago.
The textile firm has also reported a per-share loss of Tk 5.07 for the year ended June 30, 2021, against a per-share loss of Tk 1.28 for the year ended June 30, 2020.
The publicly traded company also published the first, second, and third quarterly reports of the current fiscal year.
It EPS was Tk 0.46 for the first nine months of FY23 against a per-share loss of Tk 0.33 for the same period last fiscal.
C&A Textiles shares closed at Tk 11.90 per share on Sunday on the Dhaka bourse.
