Bangas to pay a 4% cash dividend; Tallu, Mithun won’t

Bangas Ltd has announced a 4% cash dividend for its shareholders for the fiscal 2023-24, while Tallu Spinning Mill and Mithun Knitting have decided not to pay any dividends.

The three companies belonging to the Bangas-Tallu Group disclosed their financial results for the last fiscal year yesterday, following decisions made in their board meetings the day before.

Bangas

According to the stock exchange disclosure, Bangas' earnings per share stood at Tk0.31, up from Tk0.29 in the previous fiscal year.

The manufacturer of various biscuit brands reported a profit after tax of Tk24 lakh, an increase from Tk22 lakh the previous year. Its net asset value per share rose to Tk21.01, compared to Tk20.96 in the prior fiscal year.

Tallu Spinning Mill

Tallu Spinning Mill was unable to recommend any dividends for its shareholders for the fiscal 2023-24.

The company reported a net loss of Tk23.41 crore, down from Tk25.91 crore in the previous fiscal year.

Its loss per share improved to Tk2.62, compared to Tk2.90 the year before. The net asset value per share stood at Tk16.21 at the end of June 2024.

Mithun Knitting

Mithun Knitting also did not recommend any dividends for its shareholders for the fiscal 2023-24. The company reported zero earnings per share and net operating cash flow per share due to the suspension of factory operations since September 2019.

The Bangladesh Securities and Exchange Commission (BSEC) has directed the new owner of Mithun Knitting and Dyeing Limited, now known as ToyoKnitex (CEPZ) Limited, to resume operations within three months and address any pending issues following the transfer of ownership.

In June this year, Destination Express International (DEX-I) Limited, a China-based courier service provider, received BSEC approval to take over Mithun Knitting. This approval was granted to protect investor interests and resume business operations, according to BSEC sources.

According to the approval, 5,449,058 shares held by the late Md Mozammel Haque, through his legal heirs and others, will be transferred to DEX-I according to the share purchase agreement. The takeover process was delayed due to instability following the fall of Sheikh Hasina's government.

DEX-I Limited is well-known for its courier services within China, particularly for the garment industry, and has a strategic partnership with a world-renowned logistics conglomerate.

Former BNP leader and member of Parliament Md Mozammel Haque founded Bangas and served as its managing director until his passing in 2017. His three sons currently serve on the company's board of directors.

A former company official, speaking on condition of anonymity, said, "Bangas was doing well until 2007. Bangas had a good market share at that time. After the fall of the BNP government, Mozammel Haque was unable to tend to the company."

The official added that no new investments had been made to ramp up production capacity. "In the last 10 years, many skilled workers have left the company," he noted. The company's condition further declined after the death of Mozammel Haque, as it recorded losses for two consecutive years.

Mozammel Haque invested in both the bakery and textile sectors. He founded Tallu Spinning Mill in 1985 and Mithun Knitting in 1991 at the Chattogram Export Processing Zone.

With these three companies, he established the Bangas-Tallu Group. Both textile companies are listed on the stock market but are currently not in production. The factory of Mithun Knitting has been confiscated by the Chattogram Economic Zone.