MTDC earned MRF 63 per share in 2008

Thursday, 13 August 2009 15:53

Maldives Tourism Development Cooperation had said that the company had recorded a profit of Mrf 63 per share in 2008, however was unable to pay that amount as dividends because in 2007 dividends are far higher than 2007’s actual profits.

Speaking to press, CEO Mihad said that since Capital Market Development Authority would not allow paying as dividends more than the company’s actual profits, and hence Company has to scale-back the amount to be paid as dividends.

Mihad also said that the deadline to sell new shares of the company is 18 August. He said more than 2000 people had expressed interest to purchase shares of varying amounts. He also assessed that despite the financial crisis, current efforts to sell more shares had been very successful.

Mihad said that the ceiling of the amount of shares to be sold to public this year would only be decided depending on the amount of people requesting to buy shares and their amounts.

During 2008 MTDC had paid a dividend of MRF 90 per share value of MRF 100, registering a 90% return rate. During the current year, MTDC had paid a dividend of MRF 20 per share value of MRF 100, registering a 110% return rate in 2 years.

Speaking at the press conference Chairman Bandhu Ibrahim Saleem said that he anticipates a larger profit margin next year. He also said that one reason for the low returns this year is irregularities in the lease payments owing to the MTDC from its only resort, Herethere. He also said that once those lease payments are received by the MTDC, profit margins would significantly rise.

The government created MTDC and leased 15 islands at a low cost, in order to spread out the income being generated from the tourism sector to the general public.


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