Starwin Records Growth In Revenue

Starwin Products Limited recorded an impressive performance in its operations in 2009 as against 2008. The company recorded a revenue growth of 29 per cent and a gross profit of 23 per cent over that of 2008.

This was announced by the Chairman of the SPL, Rev. Dr Mensa Otabil, at the annual general meeting (AGM) of the company in Accra last Friday.

The AGM which was supposed to be held on August 10, 2010, was adjourned due to an objection raised by a shareholder of the company.

After putting its house in order, the company held its AGM successfully through a vote to abridge the notice period of 21 days in accordance with section 152 (4)a of the Companies Act, 1963 (Act 179) .

The SPL operating profit before finance cost amounted to GH¢ 198, 009 indicating an increase of 161 per cent over 2008's achievement of GH¢ 75, 858.

Addressing the shareholders, Rev. Dr Otabil said although the company made progress, the high interest rate and exchange losses continued to impact negatively on the profitability of the company.

He said the board of directors noted the concern and sought the approval of shareholders in the 2008 AGM to refinance the company's debt overhang with equity and raise extra capital through a renounceable rights issue.

Rev. Dr Otabil said transaction advisors had been appointed and had started work to help raise requisite capital to finance the company's operation and wean it from the banks.

He appealed to shareholders to get involved to make the company what it sought to be in the near future.

The SPL, has secured a licence to enable the company sell some of its products in Sierra Leone which would start by the third quarter of 2010.

The company, which entered into relationship with the Mampong Centre for Research into plant medicine in 2009, is said to be making progress as work was completed on development department.

Responding to questions from stakeholders on how best the company could progress, the Managing Director of SPL, Mr Kwasi Yirenkyi, said some of the company's product that had been turned into capsules, tablets and ointments would be launched by the end of 2010.

He assured the shareholders of a great transformation and commitment of the management to ensure that shareholders achieved the needed profit by the next AGM.

The company elected a new director, Mr Justice Awuku-Sao, the Executive Secretary of the Institute of Directors-Ghana, to replace Mrs Barbara Oteng-Gyasi.

A shareholder, Mr Kofi Asiedu Boohene of the Environs Solutions Limited (ESL), raised an objection that the AGM scheduled for August 10, 2010, failed to meet the legal procedures for convening the AGM and cited the Companies Act 1963 (Act 179) which stipulates that AGMs could only be convened after 21 days notice to all shareholders and not shorter than that.

He said the proposed day fell within the statutory limitation period for the dispatch of annual reports to members.

Mr Boohene noted that the length of notice for the AGM did not comply with the statutory limitation period, hence the need to adjourn the meeting.

Starwin Products limited is a pharmaceutical manufacturer based in Accra, which currently produces 10 brands of products.

It is the first pharmaceutical company to be listed on the Ghana Stock Exchange.