Profit after tax was flat for the six months ended 30th June 2011, not withstanding a 14% increase in the company’s sales volume compared to the same period last year.

The continued growth of the cement market, together with a more focused sales effort, resulted in the improved sales. The company incurred higher than normal production costs due to extensive utilisation of its own electrical generating capacity as the national supply remained inadequate.

Further pressure on profits resulted from unplanned but essential maintenance work and reliance on expensive road transport due to the poor performance of the railway system.

Dividends

An interim dividend of 25% of net profit after tax has been approved by the board. This amounts to Tzs 2.473 billion or Tzs 39 per share.

Prospects

We expect continued market growth during the remainder of the year, with Simba Cement’s sales volume growing in line with, or above, the market average. The full year results are expected to improve but will reflect the increased production and distribution costs as indicated above.

The company has made good progress with the feasibility study for a new kiln in Tanga.

Information to Members

The company secretary would like to inform members that dividends can be paid directly into their bank accounts.

Members can contact CAD Securities on 0779 303030 for information on how to have their dividends paid
directly into their bank accounts.

Closure of share register

The Register of Members will close on 19 September 2011. The last day of trading cum-dividend will be 12 September 2011. The dividend will be paid on or about 31 October 2011.

Mofasi Lekota
Chairperson