The Nation Newspaper

Category: Equities

  • Lotus Capital lists N1.49b fixed income fund on NSE

    Lotus Capital Halal Investments Limited has listed its N1.49 billion fixed income fund on the memorandum board of the Nigerian Stock Exchange (NSE), paving the way for the trading of the units on the Exchange.

    A total of 1.487 million units of Lotus Capital Fixed Income Fund of N1, 000 each were listed by way of introduction on the memorandum board of the Exchange on June 21. The NSE Quotation Committee had earlier approved the listing of the Lotus Capital Fixed Income Fund. The Lotus Capital Fixed Income Funds are approved by Lotus Capital’s Shari’ah Advisory Board as well as the Securities and Exchange Commission (SEC).

    The new listing has increased the mutual funds listed on the memorandum quotation of the Exchange to 47, including Lotus Capital Halal Investment Fund, another mutual fund under the management of Lotus Capital Halal Investments Limited.

    Lotus Capital Halal Investments Limited Managing Director, Mrs Hajara Adeola, reiterated the company’s commitment to providing investors with alternative investment opportunities in line with their beliefs and ethics.

    The Lotus Capital Fixed Income Fund is an open-ended collective investment scheme, which invests strictly in Shari’ah-compliant fixed income instruments and contracts such as sovereign and sub-sovereign sukuk, corporate sukuk, Shari’ah-compliant fixed term investments, murabaha or cost-plus financing contracts and ijarah or lease contracts.

    Based on the Shari’ah, this implies the Fund’s investments must be ethical and it must not invest in interest bearing instruments such as treasury bills, conventional bonds or conventional bank deposits.

    Also, the Fund will not invest in the stock market in order to avoid the associated volatility. The Fund intends to distribute 80 per cent of its returns to investors on a quarterly basis.

    According to the fund manager, the Lotus Capital Fixed Income Fund seeks to attract investors interested in low risk, liquidity, capital preservation, shari’ah-compliant investment, competitive returns,     portfolio diversification and a regular income stream

    The Lotus Capital Fixed Income Fund projects a return on investment of 15 per cent for 2018. However, the Fund’s returns will be determined by the performance of the underlying assets and therefore, may deviate significantly from the forecast.

     

  • Cordros outlines benefits of N1b target mutual funds

    Discerning investors, who subscribed to the ongoing offers for target-date mutual funds by Cordros Asset Management Limited will be able to use their investments to achieve their lifetime goals while securing their funds and earning above-average returns over the medium to long-term period.

    At an investors’ forum at the weekend in Lagos, Cordros Asset Management Limited outlined the benefits of its two target-date mutual funds. Cordros Asset Management last week opened application lists for two mutual funds aimed at raising N1 billion in long-term funds for investment in various financial assets.

    Cordros Asset Management-a subsidiary of Cordros Capital Limited, is offering 5.0 million units each in five-year Cordros Milestone Fund 2023 and 10-year Cordros Milestone Fund 2028 at N100 each. Application list opened for the two mutual funds on Monday June 18, 2018 and will close on July 27, 2018. The minimum initial investment for the offer is 25 units or N2,500 while additional investments shall be a minimum of 10 units thereafter.

    The two mutual funds are target-date mutual funds, which pursue a long-term investment strategy to manage their mix of asset classes, with a tendency to become more conservative as the target date approaches. Target date funds, also known as lifecycle funds, are usually designed to offer a convenient way to invest through a portfolio of assets.

    Cordros Capital Limited Group Managing Director, Mr. Wale Agbeyangi said the investment group is pioneering target-date funds in Nigeria to provide investors with opportunities to realise their goals while saving over the medium to the long-term.

    “It is also laudable that the Cordros Milestone Funds 2023 and 2028 are the first set of target-date mutual funds to be launched in Nigeria. This represents a significant achievement for not just Cordros but the entire capital market,” Agbeyangi said.

    According to him, the milestone funds are strategic products aimed at catering for the retail segment of the economy and are specially designed to provide for individuals and corporations saving towards a target.

    Cordros Asset Management Limited Chief Executive Officer, Mr. Leye Adekeye said the mutual funds would assist investors to hedge their savings from the eroding effects of inflation.

    He noted that at different stages in life, people usually make plans and take decisions about family, career, business, travel, education and others things that they care about and the milestone funds will help them to achieve these targets.

    “Choosing the right investments in achieving our milestone goals matter.  It can be difficult to decide which investment is right for your goal, when to start investing towards that goal can also be hard to determine. What about crafting the right goal-based plan and actually sticking to it. With target-date funds, the decision of how to invest for milestone goals is not difficult. You simply invest in the fund closest to the time when you want to utilise your funds,” Adekeye said.

    According to him, the Cordros Milestone Funds are a simple way to save and invest towards a goal as they a real inflation hedge advantage over typical savings instruments, have minimum investment requirements and they are embedded with a  goal-based financial plan and  professional management.

    According to the fund manager, the funds will give investors benefits of good capital appreciation, diversification across asset classes and automatic rebalancing of assets that help to preserve investors’ assets.

    Also, investors will benefit from automatic adjustment for changing risk profile and annual income and professional portfolio management.

  • Shareholders laud Dangote Flour Mills’ return to profitability

    Shareholders of Dangote Flour Mills (DFM) Plc at the weekend commended the board and management of the flour-milling company for the strategic initiatives that restored profitability and dividend payment to shareholders.

    Shareholders who spoke at the annual general meeting at the weekend in Lagos said the performance of DFM in recent period represents a new dawn, after many years of losses and no dividend to shareholders.

    President, Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare, commended the return to profit and dividend payment noting that shareholders invested with the hopes of making returns on their investments.

    A shareholders’ leader, Mr. Sotunde Shopeju, said the return to profitability and declaration of dividends would enhance the welfare and wellbeing of shareholders.

    According to him, with the declaration of dividends, shareholders’ hope and expectations have been met as they will now begin to gain from the proceeds of their investments.

    A shareholders’ right activist, Mr. Nonah Awoh noted that the management of DFM achieved cost reduction through prudent and efficient use of resources which positively reflected in its earnings, profitability and dividend payment.

    He urged the management to continue to work to optimise the company resources.

    Another shareholder, Adeleke Olajimeji also commended the management, urging the company to be more proactive in terms of marketing and branding of its products to increase its brand visibility across the nation.

     

  • Stock Exchange improves equities efficiency with new trading structure

    The Nigerian Stock Exchange (NSE) will next week launch a new market structure aimed at creating an optimal market design, which facilitates improved market depth, liquidity provision and price efficiency.

    The improved market structure, which will be launched on July 1, 2018, will create a level playing field for all market participants, and allow for the creation of new trading strategies. Under the new market structure, market makers and other dealing members will be able to participate across all trading sessions, which will further support competitive pricing, reduce spreads, and best execution.

    NSE Chief Executive Officer, Mr Oscar Onyema, said the equities market structure review  was carried out to support the Exchange’s hybrid market model, which offers the benefits of best execution and tighter spreads to investors.

    “Moreover, it provides potential for cheaper cost of capital to issuers in our market. This market structure is in line with our 2018 to 2021 corporate strategy aimed at boosting retail investor participation,” Onyema said.

    He reiterated the Exchange’s commitment to maintaining a platform that engenders a fair and efficient market in line with global standards.

    The NSE will also on July 1, 2018 review its NSE 30 index and all other six sectoral indices, including NSE Consumer Goods Index, NSE Banking Index, NSE Insurance Index, NSE Industrial Index, NSE Oil & Gas Index and NSE Lotus Islamic Index. The composition of the indices after the review will be effective on July 1, 2018. The review will witness the entry as well as exit of some major companies. The UAC of Nigeria is expected to be added to the NSE 30 Index- which tracks the 30 largest companies at the Exchange. Jaiz Bank will be added to the NSE Banking Index while Seplat Petroleum Development Company is expected to be added to the NSE Lotus Islamic Index, which brings the indigenous oil and gas into the basket of ethical stocks.

  • Dangote invests N121b on domestic sugar production

    •Pays N21b dividend to shareholders

    Dangote Sugar Refinery (DSR) Plc, a subsidiary of Dangote Industries Limited, has so far invested N121 billion on its ambitious Sugar for Nigeria Backward Integration Project Plan, which is aimed at developing domestic sugar production capacity through home-grown sugarcane.

    Addressing shareholders yesterday at the annual general meeting in Lagos, Chairman, Dangote Sugar Refinery (DSR) Plc, Alhaji Aliko Dangote, said the company has spent N121 billion on equipment, land acquisition, compensation to land owners, consultancy and related services.

    According to him, the company has continued to make commendable progress in the implementation of the backward integration project including the payment of N3.25 billion as full payment for land acquisition for the 60,000 hectares Tunga Sugar Project in Nasarawa State and mobilisation of necessary developmental work to site after signing of a Memorandum of Understanding (MoU) with the state government.

    He pointed out that despite major setbacks like flood, community relations issues and most recently clashes between host community  and Fulani herdsmen that hampered  progress, the group’s Savannah Sugar  Company remained  the only company producing  sugar from own-grown sugarcane in the country with more than N30 billion spent so far on purposeful investments in land rehabilitation, infrastructure, field expansion projects and equipment.

    He said the company has made further commitment with substantial investments in replanting existing fields and increase factory capacity from its current 3,000tcd to 6,000tcd and addition of a new 12,000tcd factory to cater for expected improvement in cane output and production.

    “Negotiations with the government and local communities in Kwara and Niger on land acquisition processes are ongoing, in line with the backward integration sites plan. Project   activities will resume in Taraba State when the rain assuages-after issues with the Government and local communities over the Lau/Tau project which has recently been resolved,” Dangote said.

    He noted that DSR has continued to outperform its records despite the uncertainties and various socio-economic challenges as it recorded strong growth in sales and profit in 2017.

    Key extracts of the audited report and accounts of DSR for the year ended December 31, 2017 showed group turnover of N204.42 billion, 20.4 per cent increase on N169.72 billion recorded in 2016. Profit before tax rose by 173 per cent to N53.6 billion in 2017 as against N19.61 billion recorded in 2016. After taxes, net profit jumped from N14.4 billion in 2016 to N39.8 billion in 2017. Earnings per share leapt from N1.20 to N3.31.

    Shareholders yesterday approved distribution of N15 billion as final cash dividend, in addition to an interim dividend of N6 billion earlier paid during the year, bringing the total dividend for the 2017 business year to N21 billion. Shareholders will receive final dividend per share of N1.25 in addition to an interim dividend per share of 50 kobo, representing a total dividend per share of N1.75.

    “The board remains focused on engaging more strategies for optimum delivery to all stakeholders,” Dangote said.

    In his remarks, Acting Managing Director, Dangote Sugar Refinery (DSR) Plc, Mr. Abdullahi Sule said the company would continue to pursue its target to achieve 1.08 metric tonnes of refined sugar annually in six years and eventually 1.5 million metric tonnes in 10 years.

    According to him, the focus of the company remains leveraging on its strengths to maximise every opportunity to generate sales, increase its market share and create sustainable value for all stakeholders.

    “Though the business terrain remains very challenging, we remain resilient in the face of the situation and are focused on increasing our market share and customer base as well as the creation of sustainable value for our stakeholders. Our priority in the current year is the achievement of our Sugar for Nigeria Project goals and sustenance of our leadership position by improving efficiency and growing our markets,” Sule said.

     

  • Total Nigeria’s shareholders get N5.77b dividend

    Shareholders of Total Nigeria Plc will today receive N4.75 billion in final cash dividend for the 2017 business year, after they voted unanimously yesterday at the annual general meeting in Lagos to approve the dividend recommendation by the board of the downstream oil company.

    Chairman, Total Nigeria Plc, Mr Stanislas Mittelman, said the final dividend of N4.75 billion will be paid to shareholders today in line with the corporate reputation of the petroleum-marketing company for early disbursement of shareholders’ dividends.

    Shareholders that had completed the electronic dividend (e-dividend) payment mandate will be automatically credited with the final dividend per share of N14, bringing the total dividend per share for the 2017 business year to N17. The company had earlier distributed N1.02 billion as interim cash dividend, representing interim dividend of N3 per share.

    Mittelman said Total Nigeria is poised to deliver better returns to shareholders by taking advantage of the expected growth in the Nigerian economy and improvement in macroeconomic environment to grow its business.

    According to him, a stable and conducive business environment in 2018 will provide Total Nigeria with opportunities for growth, investment and consolidation.

    “We intend to take advantage of the projected growth the Nigerian economy will offer and deliver value to you our shareholders and other stakeholders,” Mittelman said.

    He noted that while Total Nigeria recorded many milestones in 2017, the company’s overall performance was adversely affected by the economic recession and its consequent contraction of the downstream market as well as scarcity of Premium Motor Spirit (PMS) due to high landing cost compared to the template.

    He added that the performance in 2017 was also affected by foreign exchange scarcity that hindered importation and high financial costs due to increase in bank lending interest rates.

    He pointed out that the company’s lubricants business delivered strong performance in 2017 while the company continued to improve on its credit control management and fixed costs evolution.

    He noted that Total Nigeria reinforced its leadership in health, safety, environmental protection and quality (HSEQ) in 2017 by becoming the first petroleum-marketing company to  receive the ISO 9001: 2015 and ISO 14001:2015 certifications, adding that the company also recorded no accident during the period.

    Shareholders commended the steady performance of the company in spite of the challenges in the oil and gas sector.

    National President, Constance Shareholders Association of Nigeria, Mr. Shehu Mikail, said the performance of Total Nigeria when compared against other operators in the sector showed the resilience of the company.

    Former General Secretary, Independent Shareholders Association of Nigeria (ISAN), Mr. Adebayo Adeleke, urged the company to improve on its performance.

    Key extracts of the audited report and accounts of Total Nigeria for the year ended December 31, 2017 showed that turnover dropped marginally from N290.95 billion in 2016 to N288.06 billion in 2017. Profit before tax dropped by 42 per cent from N20.35 billion in 2016 to N11.8 billion in 2017 while profit after tax declined by 46 per cent from N14.8 billion to N8.02 billion. Earnings per share also declined by 46 per cent from N43.58 in 2016 to N23.62 in 2017. However, the company’s shareholders funds improved by 20 per cent from N23.57 billion to N28.23 billion.

     

  • UACN outlines strategic growth plan as shareholders get N1.9b dividend

    The board and management of UAC of Nigeria (UACN) Plc have outlined strategic initiatives aimed at addressing the root causes of the group’s historical declining performance and drive growth in the years ahead.

    Chairman, UAC of Nigeria (UACN) Plc, Mr. Dan Agbor, told shareholders yesterday at the annual general meeting in Lagos that the company would use the current business year as a transitional year to further implement initiatives that will stem decline and drive future profitable growth.

    According to him, specific area of focus will be on capital allocation and portfolio composition, human capital, operating company strategy and most importantly, reinforcing a group-wide culture of accountability and responsibility.

    He added that the group will also seek to better link employee compensation to the creation of long term shareholder value.

    “I am excited by the challenges as well as by the opportunities that lie ahead, and  I assure you that your board and the management of your company are well equipped to meet these challenges and take advantage of the opportunities in the Nigerian economy generally and in our existing businesses more specifically,” Agbor said.

    He said the group has decided to wind up the Warm Spring Waters Nigeria limited due to weak operational performance as earlier approved by shareholders, noting that the management is currently conducting a detailed review of its business strategy to enhance value creation.

    He commended the shareholders on the success of the company’s recent rights issue which was oversubscribed; pointing out that the 104.5 per cent subscription level reflected shareholders’ strong confidence in the company.

    He said the net proceeds of the rights issue are already being applied for the intended purposes and will ultimately improve shareholders value.

    Shareholders approved distribution of N1.86 billion as cash dividend for the 2017 business year, representing dividend per share of 64.58 kobo.

    UACN recorded a top line growth of eight per cent from N82.6 billion in 2016 to N89.1 billion in 2017. Profit after tax declined sharply from N5.6 billion to N963 million in 2017, reflecting the compression in the margins of operating subsidiaries.

  • Shareholders laud Dangote Cement over N179b dividend

    Shareholders of Dangote Cement Plc yesterday unanimously approved the payment of N178.9 billion as cash dividend for the 2017 business year amid commendations for the board and management over the performance of the company.

    At the annual general meeting yesterday in Lagos, shareholders said recent initiatives taken by the company has strengthened corporate governance and improved the operational performance of the group.

    Shareholders will receive a dividend per share of N10.50, representing an increase of 23.5 per cent on a dividend per share of N8.50 paid for the 2016 business year.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, commended impressive growth recorded in 2017 noting that improvements in sales and profit have demonstrated the strength of the group.

    He pointed out that the recent appointments unto the board of the company have further strengthened the corporate governance.

    Mr Adio Alex of Dynamic Shareholders Association said the group’s widespread operations across Africa and the strength of its balance sheet have put it in position to continue to grow.

    Another shareholder, Mr. Nonah Awoh commended the group’s increased disclosures and transparency noting that the inclusion of quarterly performance report in the annual report provides clearer view of the operations of the group over the course of the year.

    Key extracts of the audited report and accounts for the year ended December 31, 2017 showed that the group turnover grew by 31 per cent from N615.1 billion in 2016 to N805.6 billion in 2017. Profit before tax increased from N180.93 billion in 2016 to N289.59 billion in 2017. Profit after tax rose from N142.86 billion in 2016 to N204.25 billion in 2017. Earnings per share consequently improved to N11.65 in 2017 compared with N8.78 in 2016.

    The report indicated that while sales from the three plants in Nigeria contributed N552.36 billion to the group’s revenue, the balance of N258.44 billion was accounted for by plants in other African countries. Revenue attributable to Nigeria grew by 29.6 per cent while that from Pan-African operations rose by 32.5 per cent.

    Though group sales volumes were lower by seven percent due to depressed Nigerian market, Pan-African sales volumes went up by 8.4 per cent to 9.4 metric tonnes with strong volume increases in Senegal, Ethiopia and Cameroon and new capacities of 1.5 metric tonnes in Congo and 0.5 metric tonnes in Sierra Leone.

    Chairman, Dangote Cement Plc, Alhaji Aliko Dangote, said the 23.5 per cent increase in dividend was due to improved performance in 2017 and in line with the group’s policy to reward shareholders while retaining reasonable earnings for future growth.

    He noted that in the face of challenges in doing business in Africa, the group has benefited from diversity that it has created across its businesses and the local knowledge of doing business in neighbouring countries in Africa.

    “Our large capacity, financial strength, vertical integration and prudent management have enabled us to enter markets, gain share and withstand competitive and pricing pressures that have wrought more damage on the smaller, less well-funded manufacturers who initiated them,” Dangote said.

  • Stanbic IBTC Holdings optimistic on growth

    •Shareholders get N11.02b dividend

    The board of directors of Stanbic IBTC Holdings Plc yesterday assured shareholders that the holding company will sustain its growth and positive returns in the years ahead.

    At the annual general meeting yesterday in Lagos, the board of the holding company said the outlook remains positive and the company has been positioned to sustain the progress it has made.

    At the meeting, shareholders approved payment of N5.02 billion as final dividend for the 2017 business year, bringing total dividend for the year to N11.05 billion. Shareholders will receive a final dividend per share of 50 kobo, in addition to an interim dividend per share of 60 kobo, bringing total dividend per share for the year to N1.10.

    Key extracts of the audited report and accounts of Stanbic IBTC Holdings for the year ended December 31, 2017 showed that gross earnings rose by 36 per cent while profit after tax jumped by 70 per cent. The report marked out 2017 as the most profitable year since the inception of the bank. Gross earnings rose to N212.4 billion in 2017 as against N156.4 billion in 2016. Profit before tax increased from N37.2 billion to N61.2 billion while profit after tax rose to N48.4 billion as against N28.5 billion in 2016.

    Total assets increased to N1.386.4 trillion in 2017, a 32 per cent growth on N1.053 trillion recorded in 2016. The growth in the balance sheet size was driven mainly by customer deposits, which recorded a growth of 34 per cent to N753.6 billion in 2017 from N561.0 billion in 2016. Gross loans and advances grew by eight per cent to N403.9 billion compared to N375.3 billion recorded in 2016.

    Chairman, Stanbic IBTC Holdings Plc, Mr Basil Omiyi, said the group’s dedicated workforce, innovative products and services and high corporate governance standards would help to sustain growth in the years ahead.

    According to him, the company has been well positioned to continue to create value for its customers with innovative solutions while taking advantage of potential upsides in the economy to ensure sustainable returns to its shareholders.

    “We aim to continue to adopt global best practices that are applicable and relevant to our own business environment. At the same time, we will continue to make significant investments in our people through training across board, as we recognise that growing our people holds the key to our longer term competitiveness,” Omiyi said.

    He noted that the group made giant strides and recorded several feats on all fronts in 2017 as it grew assets under custody to a record high of N5.6 trillion, thus maintaining its leadership in the non-pension custodial business. The company’s share price also grew from N15 at the beginning of the year to a record high of N44.30 while closing the year at N41.50.

    Chief Executive Officer, Stanbic IBTC Holdings Plc, Mr. Yinka Sanni, attributed the performance in 2017 to the hard work and dedication of the staff as well as loyalty of the customers.

    He pointed out that a significant growth in profitability was recorded largely driven by very strong performances from the corporate and investment banking and wealth management businesses.

    He assured that despite the economic, regulatory and political headwinds in this pre-election year, the company will leverage on its competencies to execute flawlessly in a sustainable manner while creating value for the shareholders.

    Shareholders commended the company for the growths recorded across its operations. A shareholder, Patrick Ajudua, said that the positive performance of each subsidiary has shown that the group has carved a niche for itself in every area of its businesses.

    President, Pragmatic Shareholders Association of Nigeria (PSAN), Mrs Bisi Bakare commended the management of the company for running the company efficiently despite the tough economic environment.

    She however urged the company to ensure consistency in its dividend policy by continuously increasing shareholders’ value.

     

  • CAP’s shareholders approve N1.4b dividend

    Shareholders of Chemical and Allied Products (CAP) Plc yesterday approved distribution of N1.435 billion as cash dividend for the 2017 business year.

    At the annual general meeting at Golden Tulip, Festac, Lagos, shareholders unanimously approved the payment of a dividend per share of N2.05 to shareholders as return for the 2017 business year.

    Addressing the shareholders, Chairman, Chemical and Allied Products (CAP) Plc, Mr. Larry Ettah, said the company has continued to show resilience in spite of the challenges in the economy.

    According to him, the company ended the year with a respectable performance with a four per cent growth in turnover to N7.11 billion. However, operating profit declined by seven per cent to N1.98 billion.

    He noted the link between the overall economy and the performance of the real estate sector, expressing optimism that the recovery recorded in the Nigerian economy in 2017 is expected to be sustained in 2018 and will lead to better performance for the company.

    He said the company is closely following developments at all levels and is ready to take advantage of emerging opportunities from the various reforms.

    He added that the company will respond to the emerging trends in the paints market and different economic scenarios by growing its market share, increasing product and services offerings, expanding trade channels, implementing impactful and aggressive marketing initiatives and continuing to build people capacities.

    “We are equally poised to take advantage of other structural reforms of the Federal Government, which might impact the housing and real estate sector,” Ettah said.

    He pointed out that the successful commissioning of the company’s automated in-plant tinting factory was a major achievement in 2017 as the factory will ensure emulsion paints are promptly and readily available to customers.

    He noted that the company retained its high certifications on quality and environment management systems, assuring that the company will continue to offer high quality products and services to customers while complying with regulatory requirements by conducting its operations in a healthy and safe manner, with minimal impact on the environment.