Category: Capital Market

By Taofik Salako, Deputy Group Business Editor

Trading has been suspended on the shares of Guaranty Trust Bank (GTBank) Plc as Nigeria’s largest financial institution prepares to transit into a holding company (holdco) structure from its commercial banking structure.

The Nigerian Exchange (NGX) Limited at the weekend suspended trading on the shares of GTBank, citing the impending transition of the bank. With the suspension, there will be no trading or share price movement throughout the period leading to the delisting of the GTBank and relisting of the holdco.

According to the NGX, the step it took was necessary to prevent trading in the shares of the bank in preparation for the eventual delisting of GTBank from the Daily Official List of the Nigerian Exchange Limited (NGX) and listing of the holding company, Guaranty Trust Holding Company Plc on NGX.

The bank will adopt one-for-one share exchange ratio that will not reduce or impact its shareholding structure of the bank.

Shareholders of GTBank had approved the restructuring of the bank to a holdco. The approval paved way for GTB to conclude transition from a standalone commercial bank to a group structure that allows it to invest in other areas of financial services or other businesses.

At the court-ordered meeting in Lagos, shareholders approved the transfer of issued and paid up capital of GTBank totalling 29.431 billion ordinary shares of 50 kobo each to a new company to be known as Guaranty Trust Holding Company Plc. The new company, Guaranty Trust Holding Company (GTHoldings) Plc, will simultaneously allot the same 29.431 billion ordinary shares of 50 kobo each to the former shareholders of GTBank in accordance with their shareholdings in the bank.

Managing Director, Guaranty Trust Bank (GTB) Plc, Mr. Segun Agbaje said the adoption of holdco was necessitated because of Central Bank of Nigeria’s (CBN) regulations, which require the separation of commercial banking business from other financial services businesses.

He explained that under the new structure, shareholders of GTBank would be migrated to Guaranty Trust Holdings through a share-for-share exchange between the shareholders of GTBank and GTHoldings.

According to him, the overall strategy was to create an operating model that would profitably grow the bank’s presence in the market for commercial banking and non-banking financial services in order to achieve the aspiration to be the dominant financial services group.

“I am delighted over the approval by shareholders for the holding company and I assure the investors of a more rewarding future. The bank will not embark on any share reconstruction as the same number of shares they have with the bank will be maintained,” Agbaje said.

Shareholders were excited about the transition to a holdco structure.

Founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu said the shareholders were excited because the arrangement the bank has put in place for the transition to holdco was devoid of complexities usually known as share reconstruction.

“We are excited about the development because we are going to get value as everything we have would be transferred to the holding company. There will be no manipulation as a result of reconstruction that usually leads to fractional shares,” Nwosu said.

President, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, said GTBank has over the years proven to be a force and leading initiator of revolutionary advancement and technology-based development in the nation’s banking industry.

He said shareholders would be looking forward to the growth and advancement the bank will bring into the new business areas it will be taking on with the holdco structure.

“The arrangement where all existing shares of the bank would be transferred entirely to the holdco in the name of the beneficial owners is good, while the same number of units and percentage would be held in the new entity, is commendable,” Okezie said.

 

 

By Taofik Salako, Deputy Group Business Editor

 

Nigerian equities closed weekend with average negative return of five per cent, implying a net capital depreciation of more than N1 trillion for investors in quoted shares.

The stock market capped its losing streak this month with a net loss of N35 billion last week, raising the average return so far in the month to 3.96 per cent.

Benchmark indices for the Nigerian equities market showed widespread depreciation across most sectors with investors in highly influential banking and industrial goods sectors recording the highest losses.

The All Share Index (ASI) – the value-based common index that tracks all share prices at the Nigerian Exchange (NGX) Limited, formerly Nigerian Stock Exchange (NSE) – opens the last trading session in the month today at 38,256.95 points,  five per cent below 2021’s opening index of 40,270.72 points.

Aggregate market value of  quoted equities has also dropped from the year’s opening value of N21.057 trillion to N19.940 trillion.

Sectoral price analysis showed widespread negative sentiment across the market with the exception of the insurance and oil and gas sectors.

The NGX Oil and Gas Index posted double-digit return of 36.69 per cent to play the lead contrarian in the market.The NGX Insurance Index, which tracks insurance stocks, recorded the second highest gain of 8.41 per cent.

On the negative side, the NGX Banking Index recorded the highest loss of 9.60 per cent.The NGX Industrial Goods Index trailed with a negative return of 9.41 per cent. The NGX 30 Index, which tracks the 30 largest stocks at the NGX, posted a negative return of -5.35 per cent while the NGX Consumer Goods Index depreciated by 1.79 per cent.

Most analysts remained cautious of the outlook for the Nigerian stocks, citing the tough macroeconomic outlook and socio-political risks.

“We still expect a choppy theme in the week ahead, with the bears dominating proceedings in the absence of positive triggers to spur a bullish performance,”Cordros Group stated.

Analysts at Afrinvest Securities, however, said investors might seek to take advantage of the recent price depreciation to accumulate shares.

“In the new week, we expect the domestic equities market to trade sideways as investors rebalance their portfolio in favor of high dividend paying stocks with good fundamentals,” Cowry Asset Management stated.

Analysts, however, were unanimous on their stock recommendations, urging investors to take positions in fundamentally justified stocks as the fragility of the macroeconomic environment remains a significant headwind for corporate earnings.

Meanwhile, total turnover last week stood at 1.037 billion shares worth N9.471 billion in 17,577 deals as against a total of 1.048 billion shares valued at N11.543 billion traded in 17,233 deals two weeks ago.

The financial services sector led the activity chart with 687.623 million shares valued at N5.659 billion traded in 9,506 deals; thus contributing 66.29 per cent and 59.75 per cent to the total equity turnover volume and value. The conglomerates sector followed with 106.138 million shares worth N545.020 million in 1,146 deals while the information and communication technology sector placed third with a turnover of 84.310 million shares worth N350.698 million in 604 deals.

Trading in the top three equities, namely Zenith Bank Plc, Guaranty Trust Bank Plc and Fidelity Bank Plc (measured by volume), accounted for 229.453 million shares worth N4.281 billion in 3,634 deals, contributing 22.12 per cent and 45.20 per cent to the total equity turnover volume and value.

Amid the COVID-19 pandemic and economic recession, Nigerian equities had played the full contrarian to close 2020 with net capital gain of N6.48 trillion. Benchmark indices at the NGX showed average full-year return of 50.03 per cent by the sound of the last closing gong for the 2020 business year.

This implied net capital gain of N6.483 trillion. The recent highest return was 42.3 per cent recorded in 2017. The ASI closed 2020 at 40,270.72 points, 50.03 per cent above 26,842.07 points recorded as opening index for the year.

Aggregate market value of all quoted equities at the NSE rose to N21.057 trillion by the end of 2020 as against N12.958 trillion recorded as opening value for the year, an increase of N8.1 trillion. The additional increase in value of market capitalisation, above the ASI percentage change, was due to additional or supplementary listing of shares during the year.

While a steep decline of 18.75 per cent in March 2020 had driven the first quarter to a negative return of -20.7 per cent or net loss of N2.68 trillion, the market recovered in the second quarter with positive average return of 14.12 per cent or net capital gains of N1.656 trillion. It continued its rally with average return of 9.61 per cent or net capital gains of N1.23 trillion in third quarter 2020.

The recovery since 2020 is, particularly, spectacular when viewed against the background of negative performance in recent years. After posting a world-ranking return of 42.3 per cent in 2017, the market had reversed to negative in 2018 with average full-year return of -17.81 per cent.  In 2019, investors suffered net loss of about N1.71 trillion with negative average return of -14.60 per cent. Prior to 2017, the stock market had been on a losing streak since 2014. Investors lost N1.75 trillion in 2014 and followed this with another loss of N1.63 trillion in 2015.

Against the general expectation that political transition and new government will quicken a rebound, equities closed 2016 with a net capital loss of N604 billion.

 

Ongoing restructuring exercise will bring back Ellah Lakes Plc into profitability and commencement of dividend payment to shareholders, the management of the company has said.

Its Managing Director, Mr. Chuka Mordi,  said the restructuring would make Ellah Lakes to attain profitability and further foster its vision of being the leading supplier of sustainable edible oil and starch to the consumer goods sector in Nigeria.

He noted that prior to 2019, Ellah Lakes was an insolvent entity but Telluria Limited completed a reverse acquisition of the company, recapitalising the balance sheet and repositioning the business for growth with a new board and management team.

“Today, we are undergoing a restructuring, which will return the business to profitability and reposition it as a leading agribusiness player across West Africa. From a corporate governance point of view, we hold ourselves to high standards of governance as expected by our shareholders and regulator, and as is befitting of our vision to become the leading supplier of sustainable edible oils and starch to the FMCG Industry in Nigeria, particularly, and West Africa, in general,” Mordi said

He assured that the resolution of the company’s free float deficiency remains a priority of the board, noting that the company is working together with its advisers and the Nigerian Exchange (NGX) on ensuring that the required free float percentage is achieved in the shortest possible time.

Chief Agronomist Ellah Lakes Plc, Mr. Jamie Rixton, presented the financials and future plans of the company, emphasising its intention to improve cash flow and ultimately start paying dividends to shareholders.

At the presentation of the underlying facts on the operations of the company, Divisional Head, Listings Business, NGX, Mr. Olumide Bolumole commended the board and management of Ellah Lakes for ongoing efforts to reposition the company.

He noted that given that the market is driven by timely, relevant, and accurate information, interactions with the market are vital for transparency, price discovery and overall performance of securities.

 

“Given the invaluable contributions of the agricultural sector to the Nigerian economy, Ellah Lakes continues to exploit the opportunities in the sector. The company’s recent agreement with the Ondo State Government for the joint development and management of 5,000 Hectares of land, for the cultivation of Oil Palm and Cassava highlights its drive and commitment towards creating value for shareholders,” Bolumole said.

He assured that the NGX would continue to implement policies aimed at strengthening the corporate governance of listed companies and providing products, services and platforms that are aligned to issuers’ and investors’ requirements in a fair and orderly market.

He pointed out that the fact-behind-the-figures presentation provides listed companies the opportunity to inform the market of their financial performance as well as other strategic and operational developments.

He added that since the activation of remote trading and working from home in March 2020, NGX has transitioned the forum  into a virtual session thereby opening up the platform to more participants across the capital market ecosystem.

 

 

 

The Securities and Exchange Commission (SEC) is seeking to collaborate with the Ministry of Mines and Steel Development to address some of the challenges faced by the solid minerals sector through the Commodities Exchanges.

The Director-General, SEC, Mr. Lamido Yuguda, stated this during a meeting with the Minister of State for Solid Mineral, Dr. Uchechukwu Ogah, in Abuja weekend.

Yuguda said the core function of a Commodity Exchange is to create markets by providing a setting where multiple buyers and sellers can trade commodity-linked contracts thereby reducing the costs associated with finding a buyer or seller to whom to transact.

Other benefits of a Commodity Exchange include improved quality, standardisation, traceability (tracking the source of every solid mineral), price discovery, price risk management, accepted dispute resolution procedures and facilitating provision of commodity financing.

He said in the last few years however, Nigeria has been confronted by significant threats which include, structural fiscal challenges underlined by heavy reliance on crude oil for revenue, youth unemployment and increasing insecurity.

This worrisome situation he said, has been exacerbated by the Covid-19 pandemic.

According to the SEC Boss, “In bid to address these challenges, the Federal Government is aggressively growing its agricultural and solid minerals sectors as a catalyst for economic growth and diversification. To complement government efforts and deepen the capital market, the Commission set up a market-wide technical committee to undertake a holistic assessment of the existing framework of the Nigeria Commodity Ecosystem.

“The Committee grouped its recommendations in phases: in the first phase, the objective is to ensure food sufficiency and security, price discovery and market development while in the second phase, focus would include developing strong trades in export commodities. The third phase should see the introduction of solid minerals, energy and derivatives while the last phase should be geared towards ensuring strong international presence in the local exchanges.

“In furtherance of this objective, the Commission is actively promoting the development of the commodities market especially in areas of Nigeria’s comparative advantage such as solid minerals and agriculture.

Yuguda stated that the Commission is currently implementing the 10 year Nigerian capital market master plan which was launched in 2015. It aims to: position the capital market to play a pivotal role in the emergence of Nigeria as a top 20 global economy; have a highly competitive market that engenders best practice, innovation and efficiency; and operate a capital market that combines all the elements needed to actualize Nigeria’s developmental aspirations.

In his remarks, the Minister of State in the Ministry, Dr. Uchechukwu Ogah, described solid minerals as a thing of the future and expressed the belief that in the near future it could assist greatly in the development of the economy of the country.

He said, “ We are moving away from oil because we believe that mineral is a thing of the future and the President has done a lot in initiating projects that are helping us to  explore some of the few minerals that are of high value in the country.

“Apart from that, the President has equally initiated what we call Presidential Artisanal Gold Mining initiative which led to the presentation of the first locally mined artisanal miner’s gold bar to Mr. President. The proposal is that we are looking at a good policy where these golds would be explored, produced and if possible refined in Nigeria so that we can use it to shore-up our reserve and to ensure that the depreciation on our Naira is controlled when we have a good number of raw resources to shore-up our reserve.

“So we believe that there is a lot we can do together that will be mutually beneficial to both parties and our country. I believe that both of us can work purposefully to grow the sector collectively for the interest of the nation”.

Ogah described the sector as a huge one that could help the country grow its, economy, as well as shore-up its external reserve and commended the SEC on the collaborative offer.

 

 

NASCON Allied Industries Plc has ended the 2020 financial year on a positive note with expectations that its new state-of-art salt refinery will boost revenue and returns to shareholders.

At the 2020 Annual General Meeting (AGM) at the Civic Centre, Lagos at the weekend, the company announced an improved turnover of N28.01 billion, representing a two per cent increase from N27.49 billion recorded in 2019.

In its 2020 annual report themed ‘Protecting our core’, the company, for the financial year ended December 31, 2020 also recorded N2.69 billion in profit after tax, a 46 per cent increase for the year, compared to N1.85 billion the previous year. Earnings per share also increased to N1.02 in 2020 compared to 70 kobo in 2019.

Shareholders approved dividend payment of 40 kobo per share, totalling N1.06 billion.

Chairperson, NASCON Allied Industries, Mrs. ‘Yemisi Ayeni, said last year, many manufacturing businesses faced numerous challenges from COVID-19 and the resulting downturn.

“While I strongly believe that these are short-to-medium term, we have taken decisive measures to ensure stakeholder expectations are continually satisfied. We are confident that our business model will enable us to successfully navigate global changes while seizing opportunities to continually create value for our stakeholders.’’

“2020 was a challenging year for our business and the world in general. Yet it was also a year that provided our business the opportunity to review service delivery processes, reposition the salt business based on our additional capacity, and focus on our distribution models. It is the long-standing trust and loyalty of our shareholders that has allowed us to implement our long-term vision and benefit from the resilience it brings”, Ayeni  said

Managing Director, NASCON Allied Industries Plc, Mr. Paul Farrer said the major challenge in the Nigerian business environment in 2020 was the outbreak of the COIVD-19 pandemic resulting in major job losses and reduced income, across the country and a looming global recession which experts say may be one of the worst global recessions in recent history.

“Despite the diverse challenges faced during these trying times, we continue to demonstrate our resilience and optimism into 2021. We are focused on maximising the gains from our capacity expansion, human capital development, operational efficiency and aggressive trade in all market segments.

“In terms of market expansion, we have heavily invested in our new salt refinery. This is a state-of-the-art refinery plant, using best practices to produce high quality products for our discerning customers. The future for NASCON looks very bright. We have installed our new salt refinery and as a result, established a strong platform for future growth.

“I want to specifically thank our trade partners, consumers, suppliers, team members and strategic stakeholders for contributing to our success story in 2020. We look forward to continuing these mutually beneficial relationships in the future,” Farrer said.

Also, the Executive Director, Commercial, NASCON Allied Industries, Fatima Aliko-Dangote, noted that the COVID-19 restrictions affected  route-to-market, but the company is constantly engaging customers to improve its productivity.

According to her, although the bulk of volume is consumed in the north, the investment in the new salt refinery will increase productivity and our coverage of the other regions.

One of the shareholders at the meeting, Sir Sunny Nwosu, acknowledged that the dividend for the year 2020 was more than that of last year. He also appreciated the corporate governance structure and the commitment of the management to the affairs of the company. He hailed the issue of reduced borrowing as a good sign, and called for a wider geographical spread of the revenue base, to the East and West of the country.

 

TrustBanc Holdings Limited, an investment management firm, has listed its maiden commercial paper issuance on the FMDQ Securities Exchange, further deepening the  commercial paper market.

FMDQ Securities Exchange approved the quotation of TrustBanc Holdings Limited’s N200 million Series 1 Commercial Paper (CP ). It was issued under TrustBanc’s N10billion CP issuance programme.

The quotation of the maiden CP series followed the successful registration of the CP programme last month.

The net proceeds from the CP would be used to fund TrustBanc’s short-term financing requirement.

FMDQ stated that the TrustBanc quotation further validated FMDQ Exchange as the choice platform for the registration, listing, quotation, trading and recording of financial securities in the Nigerian financial market.

FMDQ noted that the CP market has continued to provide corporate entities across the various sectors of the economy avenue to raise funds to meet shortfalls in their working capital as well as other short-term expenditures.

TrustBanc Holdings is a registered brand investment management firm that offers an array of financial services such as banking, brokerage, forex trading, and wealth management, through its subsidiaries – TrustBanc Asset Management Limited, TrustBanc Capital Limited, TrustBanc Microfinance Bank, TrustBanc Artur Limited and Primelink Bureau De Change.

 

FMDQ stated that TrustBanc’s CP, which was sponsored on the Exchange by UCML Capital Limited, a registration member of FMDQ Exchange, like all other securities, shall be made visible to investors and other market participants through the FMDQ Exchange’s website and systems, as well as FMDQ’s Daily Quotations List.

“Investors shall also benefit from the continuous information disclosure and transparency availed to this CP. FMDQ Exchange is committed to remaining innovative and providing timely and cost-efficient services to support its stakeholders, particularly issuers and investors, towards accessing capital, managing risks and invariably, improving their corporate profile,” FMDQ stated.

 

 

By Taofik Salako, Deputy Group Business Editor

 

Me Cure Industries Limited and CardinalStone Financing SPV Plc have listed their latest bond issuances worth N8 billion on the Nigerian Exchange (NGX) Limited, paving the way for bondholders to trade on their holdings.

Me Cure Industries listed its debut N3 billion five-Year 13 per cent Series 1 Fixed rate Senior Secured Bond 2026 issued by Mecure Industry Funding SPV Plc under its N20 billion debt issuance programme.

CardinalStone Financing SPV also listed its N5 billion Series 1, five-Year seven per cent Fixed Rate Bonds due 2025 under its N10 billion debt issuance programme.

Divisional Head, Listings Business, Nigerian Exchange (NGX) Limited, Mr. Olumide Bolumole said the NGX remains committed to driving sustainable products and responsible investment in the market.

According to him, the listing by Me Cure – a healthcare company serving millions of patients and leveraging technology to help people fight everyday illnesses – was memorable.

“Today’s listing represents a pivotal milestone in the growth journey of Mecure industries and I congratulate its board and management for this landmark achievement, as well as the commitment towards ensuring the sustained growth of the company. Looking ahead, we encourage Me Cure and other unlisted issuers to utilise the NGX platform to meet future capital needs across debt and equity to support business expansion in line with their overall corporate strategy,” Bolumole said.

Chairman, Me Cure Industries, Mr. Samir Udani said he was excited to have achieved the milestone of listing on the stock market.

“Entrepreneurs like me live for days like this and it is a matter of pride to be welcomed as a new member of the NGX family. The path to success is steep, but with the encouragement of NGX, we at Me Cure will contribute to building and shaping Nigeria’s healthcare industry any way we can,” Udani said.

According to him, COVID-19 has shown how countries can become vulnerable, making Healthcare investments must-have in the country.

“Therefore, we are focused on sustaining and growing our existing basket of over 100 products. Finally, we are pleased to say that our paths will once again cross as we have made the bold decision to list on the growth board of NGX in coming months,” Udani said.

Group Executive Director, Cordros Capital, Mr. Femi Ademola  commended capital market stakeholders and other professional parties to the transaction including Cordros Capital Limited, Vetiva Capital Management Limited and Greenwich Merchant Bank Limited.

“I must thank NGX for the opportunity to join Me Cure for this important occasion of listing. We appreciate the collaboration we enjoyed with NGX during this process and are confident this will continue into the future. We must also thank Me Cure for having faith in us to drive this process to a successful end. We believe the Healthcare sector is important in the economic growth of Nigeria because of its invaluable contribution to Human Capital Development, which should be prioritised at this time,” Ademola said.

At the listing of CardinalStone’s bond, Bolumole said the Exchange was excited about the successful listing of the CardinalStone Financing SPV’s N5 billion bond as it creates an avenue for price discovery and liquidity for existing and new investors.

“The full subscription of the listing recorded demonstrates investors’ confidence in CardinalStone which now better positions the company to sustain its impressive growth in the coming years,” Bolumole said.

Group Managing Director, CardinalStone Partners Limited, Mr. Michael Nzewi said the listing represented the attainment of the company’s aspiration to list some of the securities in its capital structure on the Exchange.

“We are thankful to NGX for giving us the opportunity to list on its platform; without their support, we would not be here today. We would like to assure NGX that we are committed to finding ways to leverage its products and services and drive participation in the capital market from other institutions. Of course, we appeal to our colleagues in the industry to take advantage of the opportunity to raise capital on NGX just like we have,” Nzewi said.

Managing Director, CardinalStone Asset Management. Mr. Mohammed Garuba commended the Exchange for facilitating seamless remote trading over the past year noting that the impact is clearly seen in capital raising activities on the bourse.

“While a lot of focus has been on equities in the past, listing a bond is another way to not only raise capital but also improve governance within an organisation, which was our experience. We have learnt from this process, and are willing to support counterparts and clients who wish to embark on this journey,” Garuba said.

Managing Director, ChapelHill Denham Advisory Limited, Mrs. Kemi Awodein, expressed appreciation to capital market operators noting that when the book for the issue was opened in 2020, it could not have been envisaged that it would have a book in excess of N6 billion.

She said the success of the issue showed the strength of acceptance of CardinalStone on the buy side.

 

 

VFD Group Plc, a Lagos-based proprietary investment group, grew its net profit by 170 per cent to N3.3 billion, enabling the board of the company to increase dividend payouts to shareholders by 158 per cent to N8.51 per share.

Key extracts of the audited report and accounts of VFD Group for the year ended December 31, 2020 showed significant growth and resilience despite lingering uncertainties during the year ravaged by COVID-19 pandemic.

The report showed a well-rounded performance with gross earnings rising by 96 per cent from N3.39 billion in 2019 to N6.65 billion in 2020. Trading and other non-interest income grew by 47 per cent to N.4.66 billion in 2020 as against N3.17 billion in 2019. Profit before tax rose by 176 per cent while net profit after tax grew by 170 per cent to N3.3 billion in 2020.

The report also indicated a 14 per cent decline in credit losses and impairment despite the well-documented impact of COVID-19 on the Nigerian economy, particularly, financial services sector. The group balance sheet expanded by 85 per cent with total assets of N81.67 billion in 2020 as against N44.23 billion in 2019.

Further analysis showed that the top-line performance was driven by significant growth in interest income which grew by 90 per cent while the bottom-line was supported by the group’s ability to keep cost growth lower than revenue growth as expenses only grew by 34 per cent.

Based on the impressive results, VFD Group has proposed a final dividend of N8.51 per share. Market analysts said the results and dividend recommendation validated the company’s investment strategy and leadership and reaffirmed its position as a unique industry-agnostic investment outfit.

Group Managing Director, VFD Group Plc, Nonso Okpala noted that while lst year was challenging for the global economy with the onset of a pandemic that questioned every known business principle, VFD Group weathered it and delivered its best financial performance so far.

According to him, the result was made possible through the dedication of staff and the support from shareholders and other key business stakeholders.

“It is quite rewarding to see the outcome of those uncertain 12 months,” Okpala said.

Okpala said the group remained focused on its strategic activities pointing out that the group’s leading digital banking application which was launched during the year had crossed the 250,000 milestone in unique customer acquired.

Other strategic highlight included investment in Abbey Mortgage Bank, Atiat Leasing Limited, revamping of its hospitality business, and investment in Atiat Insurance Brokers Limited.

“The company is well on course to achieve all outlined objectives in its 13-year strategic plan while it also shifts its short-term focus towards partnership and investment opportunities beyond Nigeria,” Okpala said.

Shareholders of 11 Plc have approved payment of N3.06 billion as cash dividend for the 2020 business year.

At the company’s 43rd Annual General Meeting (AGM) at Transcorp Hilton, Abuja, shareholders approved a final dividend of N8.50 per share.

The board of the company assured the shareholders of its commitment to continually improve returns on their investments.

Chairman, 11 Plc, Mr. Ramesh Kansagra, in his address to shareholders, said the business sustainability and diversification strategy being pursued by downstream major provided a solid base for the company to continue to grow and thrive amid challenging business environments.

He commended the company’s performance despite the negative impact of the pandemic on the global and national operating environment.

He added that the company was also able to complete acquisition of Lagos Continental Hotel, Lagos through its hospitality business subsidiary, 11 Hospitality Limited during the 2020 financial year.

Alhaji Abdulkadir Mamman, who chaired the meeting, said a breakdown of the company’s audited results showed profit after tax of N6.23 billion while turnover stood at N163.91 billion during the 2020 business year.

Managing Director, 11 Plc, Mr. Tunji Oyebanji, assured shareholders of management determination to improve the company’s fortune drawing from the company’s investment in Liquefied Natural Gas plant and the hospitality industry.

Company Secretary, 11 Plc, Mr. Chris-Olumayowa Meseko expressed optimism about the company’s growth despite its voluntary delisting from the Nigeria Exchange (NGX) Limited, pointing out that the experience of NIPCO Pl,  the parent company of 11 Plc, should serve as additional linchpin for growth.

According to him, the company shares are tradable on the platform of NASD Plc through stockbrokers registered with the Securities and Exchange Commission (SEC).

A non-executive director of the company, Chief Paul Obi, said the company will continue to give utmost priority to the welfare of its shareholders in its decision making.

According to him, the company has remains competitive despite the huge impact of the COVID-19 pandemic on its businesses.

One of the shareholders,  Alh. Sanni Yau, who spoke at the meeting hailed the board and management of 11 for helping to maintain a strong and healthy balance sheet amidst recession and inflation that had affected businesses and the Nigerian economy in general.

 

Berger Paints Nigeria (BPN) Plc yesterday assured shareholders of better returns as shareholders approved the payment of N116 million as cash dividends for the 2020 business year.

Shareholders approved distribution of a dividend per share of 40 kobo, an increase of 60 per cent above 25 kobo paid in 2019.

Addressing the shareholders at the company’s 61st virtual Annual General Meeting held, Chairman, Berger Paints Nigeria, Mr Abi Ayida, explained that despite the  headwinds such as impacts of COVID-19 pandemic on corporate activities and macroeconomic vagaries, revenue was up by 7.1 per cent from N3.58 billion in 2019 to N3.84 billion in 2020.

According to him, the proposed dividend of 40 kobo per share for the year demonstrates the company’s unflinching commitment to the promises to shareholders.

“Our revenue was driven by volume growth despite the shutdown In economic activities, disruptions and environmental unrest and the loss of sales for about seven weeks in the year. Free cash flow remained strong at N529 million, representing 34 per cent from the preceding year.

“However, a proposed dividend of 40 kobo per the year demonstrates the company’s unflinching commitment to the promises to shareholders. We are very conversant with the strategic threats being faced by manufacturers in Nigeria but we are equally positioned to take advantage of the opportunities,” Ayida said.

He explained that as an indication of corporate foresight, the board had invested in technology for optimum performance prior to the outbreak of the pandemic, which proved critical for business continuity as meetings were held seamlessly despite the crises.

He commended the directors that retired for their sterling contributions to company’s growth and urged the new board members to sustain the trajectory of innovative advice to enhance the company’s  global competitiveness.

Managing Director, Berger Paints Nigeria Plc, Mr Anjan Sircar said the company leveraged strategic focus on the sales of premium products and inclusion of new business partners to sustain its operations in the face of dwindling raw materials due to forex scarcity in the review period. He however assured the shareholders of better days ahead.

“While we have not fully overcome the impact of the pandemic. We are positive that the worst is behind us and we are positioned to maximise the opportunities for growth, not only in the market but other markets facilitated by the African Continental Free Trade Area ( AfCFTA).

“Our world is increasingly digital, and we see it opening new and exciting opportunities for empowering our people and making business easier. We enter 2021 well positioned to further maximize opportunities technology provides for our business. We remain resilient,” Sircar said.

Many shareholders also commended the dividend and assured the company of continued relationship.

National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare commended the board for declaring dividend of 40 kobo per share despite the inclement operating environment.

She noted that the company made comprehensive disclosure in its annual report as it will enable investors to make informed investment decision.