STO aiming for record MVR500 million profit this year

The State Trading Organization (STO) is aiming to reach a record MVR500 million (US$32.4 mllion) in profits this year, the company’s Managing Director Adam Azim said yesterday.

Speaking at a press conference at the company’s head office, Azim said its monthly profits have been increasing since his management took charge [in November 2013], adding that the company and its subsidiaries made MVR61 million (US$3.9 million) in profits in April

Explaining that it was the largest monthly profit since its inception, Azim said the figure was a MVR12 million (US$700,000) increase from that made in April 2013.

One of the reasons for the increasing profits is the management’s efforts to reduce spending, said Azim. Another reason for the increased profits, he explained, was because the company has now started receiving some of the approximately MVR1 billion owed by the government and other state-owned companies.

Noting hat the new management has made it a priority to ensure the prices of goods sold to the public are not increased, he said that there had been a substantial decrease in the prices of construction materials sold by the company.

STO is a public company with more than ninety two percent government shares, and was established as a state owned enterprise in 1979 .

The company’s annual general meeting for the year 2013 is set to be held tomorrow night at Traders Hotel where new board director representing shareholders will be appointed.