The Nation Newspaper

Category: Equities

  • May & Baker Nigeria ready to raise new capital

    •Shareholders approve N3b new capital

    May & Baker Nigeria Plc is finalising arrangements to raise new capital through a rights issue as the company seeks to recapitalise its operations to drive a new vision of being the dominant healthcare brand in the Sub-Saharan Africa region.

    At the annual general meeting yesterday in Lagos, shareholders voted unanimously to increase the authorised share capital of the healthcare company from N1.9 billion of 3.8 billion ordinary shares of 50 kobo each to N3 billion of 6.0 billion ordinary shares of 50 kobo each. Shareholders also authorised the board of the company to sell or lease any one of the company’s two properties located at Sapara Street, Ikeja. Shareholders had in 2014 empowered the company to raise N3.2 billion new equity capital.

    Chairman, May & Baker Nigeria Plc, Lt. Gen Theophilus Danjuma (rtd), said directors of the company believe that the time is now right to raise the funds to enable the company harness new opportunities.

    “Therefore our rights issue will soon open and I hope shareholders will take up their rights to support our company in achieving its new vision. We shall all reap the rewards in the immediate future and beyond,” Danjuma said.

    He outlined that the company has envisioned a new vision that will see it dominating the Sub-Saharan Africa (SSA) markets in line with its new vision of being the leading healthcare brand in SSA.

    According to him, the new five-year strategic plan of the company entails focus and expansion along the company’s competitive advantage of healthcare and it will soon begin to establish footprints and seek dominance in this area in the SSA region.

    “Your company has turned the corner and is now solidly on the path of growth and strong profitability. Our plan in the next few years is to focus on driving our new vision, strategic goals and establishing our footprint as a leading healthcare brand in Sub-Saharan Africa. The company will strive to acquire required competencies in related business areas, expand its regional reach to explore new markets, improve capacity utilization at our WHO GMP pharmaceutical facility in Ota and continue to deliver value and returns on investments to our loyal shareholders,” Danjuma said.

    He pointed out that in line with its new vision and following shareholders’ approval given at the extra-ordinary general meeting in November 2017, the company had successfully completed the divestment from its noodles business in the first quarter of 2018, adding that the gain from the divestment will be recorded in the current year results.

    He said streamlining the company’s activities along its core area of healthcare will put it in a position to deliver stronger profits in the future.

    He noted the improved performance of the group’s businesses as operating subsidiary – Osworth Nigeria Limited grew its revenue by 29 per cent from N165 million in 2016 to N213 million in 2017 and grew profit after tax by 80 per cent from N7.6 million in 2016 to N13.7 million in 2017.

    “I am equally pleased to report more good news on the progress made with Biovaccines Nigeria Limited, our Joint Venture project with the Federal Government for the production of vaccines. The board of Biovaccines was inaugurated on January 19th 2018 and the company is gearing fast to commence business. I am optimistic that this investment will succeed not only to the benefit of investors but also for the good of the country,” Danjuma, who was represented by a non-executive director, Dr. Edugie Abebe said.

    Shareholders commended the board and management of the company for the increase in dividend payout to 20 kobo for the 2017 business year.

    Founder, Independent Shareholders Association of Nigeria (ISAN), Mr. Sunny Nwosu, said the continuing increase in dividend payout is a pleasant trend that reassures shareholders that the future of their investments is bright.

    He said shareholders will support the company in its quest to recapitalise urging the board to carry shareholders along in the process of determining the details of the offer.

    Managing Director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor, said the company decided to optimise its assets by selling the dormant property and reinvest the proceeds in development of its Abuja property and acquisition of another property around its Ota manufacturing complex.

    He said the company realised N775 million from the divestment of its noodles business noting that the company will start the construction of its vaccines factory by the third quarter of 2018.

     

     

     

    Audited report and accounts of May & Baker Nigeria for the year ended December 31, 2017 showed that turnover grew by 10 per cent from N8.5 billion in 2016 to N9.4 billion in 2017. Gross profit grew by an impressive 29 per cent from N2.5 billion in 2016 to N3.3 billion in 2017. Cost containment strategies saw cost of sales ratio declining to 64.91 per cent in 2017 from 70.0 per cent in 2016. Earnings margins followed the same growth pattern as the company earned 12 kobo in profit from every Naira it invested. Profit before tax grew by 75 per cent from N346 million in 2016 to N606 million in 2017 while profit after tax position jumped by 1002 per cent from a loss position of N41 million in 2016 to a profit after tax of N371 million in 2017.

     

     

  • NSE suspends trading on PCMN

    The Nigerian Stock Exchange (NSE) has suspended trading on the shares of Paints and Coatings Manufacturers Nigeria (PCMN) Plc as the company moves to finalise its voluntary delisting from the Exchange.

    Authorities at the Exchange said they decided to suspend trading on the shares of the paints company with effect from Wednesday May 30, 2018 in line with the effective date for determining the shareholders who will qualify to receive the scheme shares ahead of the implementation of the voluntary delisting of the company.

    Shareholders of PCMN had earlier this year approved sub-joined resolutions that will see the relapse of the company to a private limited liability company and the delisting of its shares from the NSE.

    A Federal High Court had directed the company to convene a court-ordered meeting on February 15, 2018 in Lagos during which shareholders deliberated and voted to approve a scheme of arrangement for the change in the status of the company and the delisting from the NSE. A new company-Paintcom Investment Nigeria Limited is proposed to emerge after the delisting.

    The Asset Management Corporation of Nigeria (AMCON) recently sold the fourth largest equity stake in PCMN to Bizfeat Ventures Limited, a relatively unknown firm. AMCON, the bad-debt resolution corporation floated by the government, transferred its 7.4 per cent equity stake in PCMN to Bizfeat Ventures through a negotiated cross deal at the NSE.

    The block divestment involved transfer of a total of 58.66 million ordinary shares of 50 kobo each held by AMCON to Bizfeat Ventures at a negotiated price of N1.05 per share.

     

  • SEC warns investors over banned investment firm

    Securities and Exchange Commission (SEC) has warned investors to shun a proposed restructuring plan by Partnership Investment Company and its subsidiaries.

    In a circular, SEC stated that its attention had been drawn to an electronic message being circulated to investors on behalf of Partnership Investment Company Plc and its subsidiaries, purporting to be undergoing restructuring.

    The electronic message titled “Re: Partnership Investment Company Plc Restructuring and Re-organization: A Plan to Pay All Creditors/Customers”, indicates a proposal to investors who lost monies to Partnership Investment Company Plc and its subsidiaries, especially Partnership Securities Limited to sign up to participate in a repayment plan with two options.

    The two options included three years’ repayment plan, which includes taking a cash payment or accepting equity in a company to be registered and listed on the Nigerian Stock Exchange (NSE) while the second option involves investors accepting payment of only 50 per cent of their investment payable within 12 months.

    SEC noted that following the hearing of the complaints against the Partnership Investment Company and its subsidiaries in June 2017, the Administrative Proceedings Committee (APC) of the Commission had cancelled the registration of the Partnership Investment Limited and Partnership Securities Limited and banned the principal officers and executives of the companies from participating in the capital market.

    “Please be further informed that the conduct of the Partnership Investment Company and its subsidiaries on restructuring is very suspicious and appears to be an attempt to scuttle the directives of the APC. In view of the above, the general public is hereby warned to be wary of the proposal and hereby direct Partnership Investment Company Plc and its subsidiaries to submit their repayment plan officially to the Commission for the protection of affected investors,” SEC stated.

     

     

  • NSE suspends trading on PCMN

    The Nigerian Stock Exchange (NSE) yesterday suspended trading on the shares of Paints and Coatings Manufacturers Nigeria (PCMN) Plc as the company moves to finalise its voluntary delisting from the Exchange.

    Authorities at the Exchange said they decided to suspend trading on the shares of the paints company in line with the effective date for determining the shareholders who will qualify to receive the scheme shares ahead of the implementation of the voluntary delisting of the company.

    Shareholders of PCMN had earlier this year approved sub-joined resolutions that will see the relapse of the company to a private limited liability company and the delisting of its shares from the NSE.

    A Federal High Court had directed the company to convene a court-ordered meeting on February 15, 2018 in Lagos during which shareholders deliberated and voted to approve a scheme of arrangement for the change in the status of the company and the delisting from the NSE. A new company-Paintcom Investment Nigeria Limited is proposed to emerge after the delisting.

    The Asset Management Corporation of Nigeria (AMCON) recently sold the fourth largest equity stake in PCMN to Bizfeat Ventures Limited, a relatively unknown firm. AMCON, the bad-debt resolution corporation floated by the government, transferred its 7.4 per cent equity stake in PCMN to Bizfeat Ventures through a negotiated cross deal at the NSE.

    The block divestment involved transfer of a total of 58.66 million ordinary shares of 50 kobo each held by AMCON to Bizfeat Ventures at a negotiated price of N1.05 per share.

    The NSE operates two delisting windows-voluntary and compulsory delisting. Under voluntary delisting, quoted companies can opt to delist their shares from the Exchange due to various reasons including mergers and acquisitions, restructuring and private interests subject to fulfilment of the delisting rules and requirements.

    Under the compulsory delisting window, the NSE may opt to delist companies that have failed repeatedly to meet extant rules and best practices in line with the Exchange’s commitment to protect investors and ensure that listed companies comply with global best practices.

  • High-cap stocks drag equities to N153b loss

    Nigerian equities showed improved sentiment yesterday but losses suffered by highly capitalised stocks overshadowed the overall market situation. With 23 gainers to 25 losers and increase in turnover of activities, trading pattern at the stock market indicated renewed bargain-hunting. Losses recorded by the trio of Dangote Cement, Nestle Nigeria and Nigerian Breweries coloured the overall market position.

    Benchmark indices at the Nigerian Stock Exchange (NSE) closed yesterday with average decline of 1.1 per cent, equivalent to net capital depreciation of N153 billion. With this, the average year-to-date return dropped further to 0.9 per cent.

    Aggregate market value of all quoted equities dropped from its opening value of N14.137 trillion to close at N13.984 trillion. The All Share Index (ASI)-the main index that tracks share prices at the NSE, also declined correspondingly from its opening index of 39,028.51 points to close at 38,606.41 points.

    The negative overall market position was driven largely by losses recorded by large cap-stocks. Nestle Nigeria-the second most capitalised quoted company, led the losers with a drop of N60 to close at N1,540. Nigerian Breweries-the fourth most capitalised quoted company followed with a drop of N5 to close at N110 while Dangote Cement-Nigeria’s most capitalised quoted company lost N2.50 to close at N242.50 per share.

    Expectedly, most sectoral indices also closed negative, underlining the influence of the large-cap stocks that led the losers. The NSE Industrial Goods Index declined by 2.7 per cent. The NSE Consumer Goods Index dropped by 2.6 per cent. The NSE Oil & Gas Index declined by 0.5 per cent while the NSE Banking Index dipped by 0.3 per cent. However, the NSE Insurance Index rose by 1.0 per cent.

    Other top losers included International Breweries, which dropped by N2.55 to close at N49.25; Lafarge Africa, which lost N1.90 to close at N36.60; GlaxoSmithKline Consumer Nigeria, which dropped by N1 to close at N19.20 while Zenith Bank lost 50 kobo to close at N25.60 per share.

    On the positive side, Flour Mills of Nigeria led the gainers with a gain of N1.50 to close at N31.60. Dangote Sugar Refinery followed with a gain of 45 kobo to close at N17. Dangote Flour Mills added 40 kobo to close at N8.95. FBN Holdings rose by 35 kobo to close at N9.60. Fidson Healthcare gathered 29 kobo to close at N6.24 while Eterna chalked up 22 kobo to close at N5.75 per share.

    Meanwhile, the momentum of activities improved considerably as investors sought to lock in value stocks across the sectors. Turnover volume and value rose by 53.9 per cent and 188.5 per cent respectively with the exchange of 342 million shares valued at N4.7 billion. Access Bank was the most active stock with a turnover of 68.33 million shares valued at N743.9 million. Transnational Corporation of Nigeria followed with 42.09 million shares worth N51.5 million while Zenith Bank placed third with 35.7 million shares worth N929.62 million.

    “We saw some bargain hunting in some small cap stocks despite the sell pressures in bellwethers. Thus, we anticipate a positive performance in subsequent session this week following the improvement in investor sentiment,” Afrinvest Securities stated.

  • SEC warns investors over banned investment firm

    Securities and Exchange Commission (SEC) has warned investors to shun a proposed restructuring plan by Partnership Investment Company and its subsidiaries.

    In a circular yesterday, SEC stated that its attention had been drawn to an electronic message being circulated to investors on behalf of Partnership Investment Company Plc and its subsidiaries, purporting to be undergoing restructuring.

    The electronic message titled “Re: Partnership Investment Company Plc Restructuring and Re-organization: A Plan to Pay All Creditors/Customers”, indicates a proposal to investors who lost monies to Partnership Investment Company Plc and its subsidiaries, especially Partnership Securities Limited to sign up to participate in a repayment plan with two options.

    The two options included three years’ repayment plan, which includes taking a cash payment or accepting equity in a company to be registered and listed on the Nigerian Stock Exchange (NSE) while the second option involves investors accepting payment of only 50 per cent of their investment payable within 12 months.

    SEC noted that following the hearing of the complaints against the Partnership Investment Company and its subsidiaries in June 2017, the Administrative Proceedings Committee (APC) of the Commission had cancelled the registration of the Partnership Investment Limited and Partnership Securities Limited and banned the principal officers and executives of the companies from participating in the capital market.

    “Please be further informed that the conduct of the Partnership Investment Company and its subsidiaries on restructuring is very suspicious and appears to be an attempt to scuttle the directives of the APC. In view of the above, the general public is hereby warned to be wary of the proposal and hereby direct Partnership Investment Company Plc and its subsidiaries to submit their repayment plan officially to the Commission for the protection of affected investors,” SEC stated.

  • Shareholders approve Forte Oil’s assets sales

    Shareholders of Forte Oil Plc have approved the company’s plan to restructure its operations by divesting from its upstream services and power generating businesses and the sale of its downstream business in Ghana. Forte Oil plans to streamline its operations and focus on its Nigerian downstream marketing business.

    At the Annual General Meeting (AGM) in Lagos, shareholders authorised the board of the company to sell its stakes in Forte Upstream Services Limited, Amperion Power Distribution Limited and AP Oil & Gas Ghana Limited.

    The meeting mandated the board of directors to invest the net proceeds from the divestments in the downstream marketing business.

    AP Oil & Gas Ghana Limited and Forte Upstream Services Limited are wholly owned subsidiaries while Forte Oil owns 57 per cent equity stake in Amperion Power Distribution Company Limited.

    Forte Oil Plc Chairman, Mr Femi Otedola said the restructuring was aimed at ensuring sustainable growth and returns to shareholders.

    “We concluded on focusing our resources on our core competence, and streams of uninterrupted dividends for our shareholders,” Otedola said.

    Key extracts of the audited report and accounts for the year ended December 31, 2017 showed that group turnover dropped from N148.61 billion in 2016 to N129.44 billion in 2017. Gross profit increased from N20.58 billion to N24.12 billion. Operating profit rose from N9.62 billion to N14.26 billion. Profit before tax doubled from N5.34 billion in 2016 to N10.63 billion while profit after tax jumped from N2.89 billion in 2016 to N12.23 billion in 2017.

    Underlining the rationales for the strategic business change, Forte Oil had said its decision to divest from upstream services and power generating businesses will boost its distributable earnings for the benefit of shareholders.

    According to the company, following the significant changes in the oil and gas industry in recent years, only downstream operators with huge investments in both storage and distribution infrastructures can remain competitive and operationally efficient in the long run.

    Forte Oil noted that that although the power business profitable,  it has  huge receivables due from the Nigeria Bulk Electricity Trading Plc (NBET) and a significant portion of its distributed earnings is also utilised in servicing the acquisition debt finance.

    The company said despite the significant resources deployed  the upstream services business has consistently contributed less than  seven  to the Group earnings in the last three financial years.

    Similarly, its downstream subsidiary in Ghana has consistently declared losses after tax in the last three years and   has substantial bad and uncollectable trade debts in the business as a result of negative economic conditions and currency devaluation in prior years.

    “This divestment a will reduce finance cost in the Group significantly and increase distributable earnings for the benefit of the shareholders. The finance cost attributable to the businesses to be divested stood at N2.7 billion and N2.2 billion for the year ended 31st December 2016 and the year ended 31st December 2017. The proceeds of the divestment initiative will also enable your company to compete more favourably and achieve the planned expansion of the business for increased market share,” Forte Oil said.

  • ISO certifies AXA Mansard Insurance

    The International Organisation for Standardisation (ISO) has awarded its ISO 9001:2015 certification to AXA Mansard Insurance Plc in recognition of the company’s quality management system and conformity with global best practices.

    The ISO 9001:2015 Quality Management Systems Certification is centered on strong customer focus. It provides a framework that ensures that organisations are able to meet customers and applicable requirements consistently.

    The certification consists of policies, processes and procedures required for planning and execution that guaranty continuous improvement and operational efficiency in the core business areas of an organisation.

    AXA Mansard Group Group Head, Strategy, Planning and Marketing, Mr. Kola Oni said the unwavering commitment of AXA Mansard towards ensuring that its processes meet customers’ needs made it to upgrade its quality management system.

    According to him, the quality of the company’s processes has been proven through its ability to consistently provide products and services that guarantee customer satisfaction.

    “We have benchmarked our activities with the leading global standards and we are delighted to have achieved this feat. This upgrade bolsters our already strong quality management system, so we can continue to deliver high-quality product and optimise customer experience,” Oni said.

     

  • FSD Africa assures Diamond Bank on financial inclusion

    The Financial Sector Development for Africa, (FSD Africa), an agency funded by the United Kingdom through UK Aid, has reiterated its commitment to provide more support for Diamond Bank Plc on its financial inclusion drive.

    At a dinner hosted by Diamond Bank in honour of visiting executives from FSD Africa, the agency noted that though it has partnerships with other banks and organisations across Africa, the partnership with Diamond Bank has been its longest and most successful.

    Director, Financial Services, FSD Africa, Paul Musoke said it had not only been providing funding but also working closely with the Diamond Bank team to improve financial inclusion.

    “We commend Diamond Bank for employing professionalism in all their dealings with us,” Musoke said.

    Diamond Bank Plc Managing Director, Mr Uzoma Dozie, said the bank has opened up many opportunities for small and medium enterprises and savers through innovative products that target each segment of the population.

    He said the bank has achieved more success in its financial inclusion projects by partnering donor agencies such as EFIna, Women’s World Banking (WWB) and FSD Africa.

     

  • Fidelity Bank assures of sustainable growth

    • Shareholders laud N3.2b dividend

    The board and management of Fidelity Bank Plc have assured shareholders that the bank is on a strong pedestal to sustain growth and make better returns to shareholders.

    This came as shareholders at the Annual General Meeting (AGM) in Lagos commended the bank for earmarking N3.2 billion as dividends for shareholders for the 2017 business year. Shareholders approved the dividend payout, representing a dividend per share of 11 kobo.

    Fidelity Bank Chairman, Mr Ernest Ebi, said the bank has been strategically positioned to navigate the business environment and make better returns to shareholders in the year.

    He said the performance of the bank in the previous year underlined the resilience of its growth strategy noting that expected improvement in the operating environment in 2018 should translate into improved performance for the bank.

    According to him, expected improvements in the global landscape would expectedly trickle down to the domestic economy to consolidate the comforting business climate witnessed towards the end of 2017.

    Managing Director, Fidelity Bank Plc, Mr Nnamdi Okonkwo, said the bank would continue to focus on enhancing its systems and processes to continuously improve service delivery and place itself in a better position to take advantage of emerging opportunities in the economy.

    He said the bank would deepen its cost optimisation initiatives to reduce operating expenses and cost-to-service ratios as part of efforts to retain greater values for shareholders.

    “Clearly, our success in 2017 financial year has set a strong pedestal for sustained growth in revenue. We are optimistic about a favourable operating environment and we look forward to delivering decent set of numbers at the end of 2018 financial year, “ Okonkwo said.

    Shareholders who spoke at the meeting commended the bank for what they described as impressive performance last year.

    Association for the Advancement of the Rights of Nigerian Shareholders (AARNS) President, Dr Farouk Umar noted that the payment of dividend by Fidelity Bank confirms the strength of the bank.

    According to him, shareholders had panicked when the Central Bank of Nigeria (CBN) announced that banks with low Capital Adequacy Ratio and high non-performing loan would not be allowed to pay dividend.

    “For Fidelity Bank to declare dividend showed that it is in the good books of the CBN,” Umar said.

    Another shareholder, Mr Moses Ogundeji, a member Independent Shareholders Association of Nigeria, also praised the management of the bank, urging them to turn in better returns in 2018.

    Key extracts of the audited report and accounts of Fidelity Bank for the year ended December 31, 2017 showed that profit after tax rose by 94 per cent to N18.9 billion in 2017 compared with N9.7 billion in 2016. Profit before tax had risen by 83.6 per cent to N20.3 billion in 2017 from N11.0 billion in 2016.

    Net interest income had increased by 15.4 per cent to N71.5 billion in 2017 while net operating income rose by 9.9 per cent from N86.0 billion in 2016 to N78.3 billion in 2017. Gross earnings grew by 18.3 per cent from N152.02 billion in 2016 to N179.9 billion in 2017. Total assets increased to N1.379 trillion in 2017 as against N1.298 trillion in 2016.