The highest dividend in Arab Cotton Gaining Company (ACGC ) history has been announced, EGP 0.95 per share. The sustainable cash inflow during the coming couple of years should enable ACGC to maintain high level of dividend payment. A noticeable increase in the net profit of ACGC consolidated statements registering EGP 204 million at the end of June 2010. ACGC chairman, Dr. Hany Olama, explained that the Board of Directors decided during its last meeting to pay the highest dividend in the company's history, which accounts to EGP 0.95 per share representing a dividend yield of almost 26% over the last 6 months. This decision will be presented to the next general assembly meeting. He also affirmed that the main strategy of ACGC is to maximize its market value for the sake of shareholders, whereby the company will realize and maintain a certain liquidity level over the coming years through its investment portfolio as well as realizing the value of its unutilized assets. This strategy will enable ACGC to pay high dividends over the coming years in parallel to realizing high returns from the main activities of ACGC in the textile field. Dr. Olama, also declared that the consolidated financial results of this year witnessed a significant improvement, whereby the revenue increased by 33% year-on-year. Meanwhile, the cost of sales increased but with a less percentage. In addition, the total expenses were cut by 16% during fiscal year 2009 / 2010 as a direct result of the cost-cutting policies implemented across ACGC. 1. Net profit of ACGC registered EGP 204.4 million at the end of June 2010 compared to EGP 28.8 million at the end of June 2009. 2. Operating profit rose by 51%, to register EGP 73.3 million at the end of June 2010 versus EGP 48.5 million at the end of June 2009. 3. Investment revenues witnessed a robust rise from EGP 26.7 million for the year to end June 2009, to reach EGP 176.3 million for the year to end June 2010. 4. Sales revenues increased by 33%, to register more that EGP 1 billion for the year to end June 2010 compared to EGP 775.7 million for the year to end June 2010. 5. The cost of sales rose by 30% from EGP 695 million at the end of June 2009 to reach EGP 905 million to the end of June 2010. 6. Total expenses were cut by 16%, from EGP 128.5 million at the end of June 2009 to reach EGP 108.3 million at the end of June 2010. 7. General and administrative expenses, decreased by 17% year on year, to reach EGP 46.5 million in June 2010, down from EGP 56.1 million for the year end to June 2009. 8. Financing costs rose by 7.8%, to register EGP 37.5 million for the year to end June 2010, compared to EGP 34.7 million for the year end June 2009.
