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OK okays trust shares

OK Zimbabwe shareholders voted at their annual general meeting to give an additional seven million
shares to an investment vehicle for the company’s non-managerial employees.

The shareholders authorised directors to all

ocate 6 765 274 ordinary shares to the OK Employee Share Participation Trust through an allotment of the company’s unissued shares held under the control of directors in terms of a 2001 shareholders’ resolution.

The Trust held 68 million ordinary shares, representing 2% of the issued share capital of OK Zimbabwe at the time the shares were donated to the Trust by the company upon its de-merger from Delta Corporation.

The effect of the additional shares would be to increase the Trust’s shareholding in the retail group from 68 million to 74 765 274 ordinary shares, said board chairman Eric Kahari.

This will enable the Trust to retain its 2% shareholding following the allocation of 175 136 020 ordinary shares for granting to management in terms of the executive share option scheme of 2005.

OK Zimbabwe made a profit during the year to March 31 despite incessant cost pressures that pushed overheads by 586% year-on-year to $1,1 trillion.

Profitability had been preserved by the improvement in gross margin which surged from 18,21% the previous year to 27,2% during the year under review.

The company achieved revenue of $7,4 trillion during the year, up 508% on $1,2 trillion achieved last year.

Net sales of $7 trillion were 504% higher than last year.

Operating income grew 1 270% over the prior year to $890 billion during the year to march 31, 2006, with investments income trailing in growth terms to $40 trillion, up 660% on the previous year.

Income before taxation, at $1,2 trillion, was 1 038% higher than that achieved in the previous year at $105 billion.

Attributable earnings increased to $913 billion, pushing headline earnings per share to $259, from
$24 the previous year. — Staff Writer.

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