The General Manager of Starwin Products Limited, Mr William Sekyiamah has hinted that the company’s resolve to explore more avenues to raise capital to sustain the company’s operations.
The company’s net finance expenses, he explained had been crippling the company’s operations over the years, thus overturning their operating profits into losses.
Taking its turn on the ‘Facts Behind The Figures’ programme at the Ghana Stock Exchange, Mr Sekyiamah explained that as a result of these unstable finance expenses “there is the need therefore to source for cheap funds.”
Net finance expense of the company he said increased from GH¢243,146 in 2008 to GH¢405,915 in 2009. The figure, however, dipped in 2010 to GH¢403,116 and even dipped further to GH¢249,013 due to a reduction in its short term loans.
He said the company was therefore spearheading plans to revisit the Right Issues in a bid to raise the company’s stated capital from the current level of GH¢1,982,028 to GH¢6,000,000.
This, he explained, would help the company get additional funds to improve its working capital and to purchase high capacity machines for its operations.
Starwin he said was also in discussions with EDIF for export assistance since it has entered into the export arena of sending its products into foreign markets.
Presenting an overview of the company’s 2012 first quarter performance, Mr Sakyiamah said turnover and profit had been consistent with their company’s 2012 objectives adding that “operational level increased to 80 per cent by end of 1st quarter and hope to hit 90 per cent by end of the 2nd quarter.
Commenting on what spurred them to achieve this turnaround; he said the company’s strength in its popular products continued to impact positively on its operations saying “company’s key branded products namely Rapinol, Asmadrin, Painoff and SMOM are the preferred products within their class and contributes about 85 per cent to total sales.”
The company he said also introduced these new products, Paraking Syrup, Starcold, Expectolyn and Starprovite which have made strong entry onto the market flying on the goodwill of the existing branded products.
The October floods that hit Accra last year he however explained run down their operations by 20 per cent but through hard work was able to achieve operational efficiency by 60 per cent by the end of the year.
The company according to him is also making more inroads into the Mutual Health Scheme with its Paracetamol Blister and Paraking Syrup.
Projecting into 2012, Mr Sakyiamah said the company will introduce two new products this year in addition to the Over The Counter (OTC) products being used for the National Health Insurance Scheme (NHIS) which would strengthen their presence in the scheme.
He also added that “we will continue with our business in Sierra Leone even though we are all aware that such investments take a while to reap benefits.”
The company he also said will continue to control expenses, improve capacity, and maximize the use of its resources to ensure that growth translates positively into shareholders advantage.
Recounting some of the company’s challenges to the Graphic Business, Mr Sakyiamah said the fast depreciation of the Cedi against the Dollar, Euro and the Pound Sterling is increasing their costs of inputs.
According to him, 90 per cent of the inputs used in their operations are imported from other countries and as such the decreasing value of the local currency increases the cost they incur when importing.
The influx of cheaper products from eastern Asia and emerging economies which are gradually eating into the local market he said is worrying.
He said since these foreign countries export into the country at a lower rate they have a competitive advantage over the local companies which makes them price lower to the detriment of the local pharmaceutical companies and not Starwin alone.
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