Despite this decline in sales revenue as well as increase in foreign exchange losses following the depreciation of the shilling against major currencies, the company still managed to maintain net profit above the 2008 level. This was achieve mainly through improvements in operating effeciencies as well as lower raw material and fuel costs.

The new cement mill and packing plant were successfully commissioned in the year adding 500,000 tons per annum to the installed cement grinding and packing capacity. This takes the total installed cement capacity to 1.25 million tons per year.

During the year, the Company's Quality Management System was audited and certified to be compliant with ISO 9001:2008 System. The Company was also graded by the NBAA as the overall winner of the best presented financial statements.

Dividends

A divident of 37.5% of net profit is proposed and consequently the board has approved a final dividend os Tzs 179 per share. This amounts to 11.4 billion.

Prospects

With the expectation of growth in the cement market in 2010, the Company is optimistic that with the addition cement mill in place, it will be able to increase sales volumes and market share. The impact of excess capacity in the market, imports of cement, power interrruptions and rail service delay interruptions will be amongst the major challenges the Company will face in the year 2009.

Closure of Share Register

The Register of Members will close on 22nd March, 2010. The last day of trading cum dividend will be 15th March 2010. The dividend will be paid on or about 30th May 2010.

Claude Naude
Chairperson