Apex Footwear takes Apex Tannery’s unit-2 on lease for another 20 years
A lease agreement with Apex Tannery was extended to facilitate Apex Footwear production
Highlights
- Apex Footwear has taken Apex Tannery's unit-2 on lease up to 2041
- Monthly rent
- Tk27.50 lakh for first ten years
- Tk30.25 lakh for the next 10 years
- The two companies had an agreement since 2010 which expired recently
- Apex Footwear Recommended a 35% cash, 5% stock dividend for FY21
Apex Footwear Limited – a manufacturer and retailer of footwear for domestic and international markets – has taken sister concern Apex Tannery's unit-2 factory on lease, for another twenty years.
The lease agreement will be effective from 1 October, 2021, to 30 September, 2041.
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On 5 October, both the listed companies signed the agreement, said a disclosure published on the stock exchanges on Tuesday.
Earlier, in October 2010, the companies signed a lease agreement that recently expired.
"To facilitate smooth production at the company, the lease agreement with Apex Tannery was extended for another twenty years," said Md Omar Faruque, company secretary of Apex Footwear.
As per the agreement, Apex Footwear will use on lease, Apex Tannery's factory premises with land, buildings, warehouse, machinery, equipment, fittings, and fixtures of Unit-II, in Shafipur, Gazipur.
For the first ten years, the monthly rent will be Tk27.50 lakh and for the next 10 years it will be Tk30.25 lakh.
Apex Footwear Limited was incorporated in 1990 and was listed on both the Dhaka and Chittagong stock exchanges in 1993.
According to the company website, Apex is the largest shoemaker in South Asia, responsible for approximately 15% of leather footwear exports from Bangladesh.
It manufactures footwear for major export markets in Europe, North America, and Japan, as well as for the domestic market in Bangladesh.
Despite sales being flat in the pandemic, Apex Footwear saw a 67% jump in net profits.
In FY21, its sales slightly increased by 0.48% to Tk1,187 crore, with a profit of Tk10.53 crore.
At the end of FY21, Apex's earnings per share stood at Tk9.36, which was Tk5.62 a year ago.
Its board of directors declared a 35% cash dividend and 5% stock dividend for shareholders for FY21.
In FY20, Apex paid a 25% cash dividend to shareholders.
In April this year, the company decided to buy a plot of land worth Tk13.50 crore in the Sirajganj Economic Zone, for future business expansion with product diversification.
