Aug 17 - 23, 1996

The LTV Modaraba announced a 20% cash dividend for the year ended June 30, 1996, after stocking up their retained earnings last year and not declaring any dividends. Since LTV's modaraba certificates were issued at a face value of Rs 5, and are trading at Rs 4.25, the dividend yield at 23.53% is attractive.

On the revenue side, they posted an operating income of Rs 123 million, an increase of over 17% year-on-year. The other major source of revenue was the gain on the sale of investments which was at Rs 57 million, up almost 19% from Rs 48 million last year.

Expenses were also generally higher; operating expenses jumped 164% to Rs 29 million and losses on the sale of investments amounted to Rs 59 million, up over 40% from last year. Financial expenses, however, dropped 19% to Rs 17 million from last year's Rs 21 million.

Pre-tax income for the year though fell slightly by some 3% from Rs 79 million to Rs 76.7 million in the current year, and after-tax income also fell just over 3% to Rs 76.4 million. Net profit for the year ended more than 16% higher though as they registered no reduction in the value of investments while this figure was as high as Rs 12.7 million in the previous year. After the deduction of a Modaraba company's management fee of Rs 500,000, and adding the accumulated profit of almost Rs 52 million the profit available for appropriation in the current year was over Rs 123 million up 92% from last year's Rs 64 million.