The Nation Newspaper

Category: Equities

  • Investors lose N554b as depression climbs to 6.88%

    Investors lose N554b as depression climbs to 6.88%

    Nigerian equities wriggled through April with a marginal negative month-on-month return of -0.68 per cent, building on the bearish trend that had characterized the stock market in the first quarter.

    The negative return in April further depressed the overall market performance so far this year, increasing the four-month average loss to 6.88 per cent. This implies that an average investor has lost 6.88 per cent of its portfolio so far this year.

    Aggregate market value of all quoted equities closed April at N12.672 trillion as against its opening value of N13.226 trillion for the year.

    The benchmark index at the Nigerian Stock Exchange (NSE), the All Share Index (ASI), closed April at 38,485.48 points as against its opening index of 38,748.01 points for the month. However, aggregate market capitalisation of all quoted equities showed an increase of N226 billion from N12.446 trillion to N12.672 trillion. The difference between the ASI and market capitalisation might not be unconnected with the listing of the first-ever upstream company-SEPLAT Production and Development Company, on the NSE during the month. The high-profile listing had led to review in the pricing rules of the Exchange.

    The performance of the stock market in April underlined the cautious investors’ appetite and showed the dragging effect of the first quarter decline. The performance of the Nigerian equities market was largely bearish during the first quarter of the year. In January, February and March, the market consistently recorded losses of 1.8 per cent, 2.5 per cent and 2.0 per cent respectively. This was in sharp contrast to the corresponding period of 2013 when the market returned about 17.7 per cent in the first three months. In terms of activities, the average daily volume of transactions of 380 million units for the first quarter of 2014 was also lower than 512 million units in the corresponding period of 2013.

    The ASI closed the first quarter of 2014 with a drop of 6.25 per cent to close at 38,748 points while market capitalization dropped by 5.89 per cent to close at N12.45 Trillion. Total market volume for the quarter also fell by 26 per cent at 22.83 billion while total market value rose marginally by 6.3 per cent to close at N269.4 billion.

    The performance so far in 2014 contrasted sharply with performance in the corresponding period of 2013, when Nigerian stock market had rallied whooping capital gains of N3.10 trillion within the first five months of 2013.

    The market had subsequently built on this momentum to close 2013 with a capital gain of more than N4.25 trillion. The 2013 business year set the stock market on a new high with average full-year return of 47.19 per cent, its best performance since 2007.

    Aggregate market capitalization of all quoted equities on the NSE closed 2013 at N13.226 trillion as against its opening value of N8.974 trillion for the year. This represented a whooping increase of N4.252 trillion. The ASI recorded full-year return of 47.19 per cent rising from its opening index for the year of 28,078.81 points to close the year at 41,329.19 points.

    The performance in 2013 significantly surpassed the much applauded return in 2012 when equities posted average return of 35.45 per cent, equivalent to capital gains of N2.44 trillion. The stock market had closed the first half of 2013 with average return of about 28.8 per cent, equivalent to N2.45 trillion in capital gains. Aggregate market value of all equities on the NSE had closed the first half at N11.426 trillion while the ASI had closed the first half at 36,164.31 points.

    Major investment firms and analysts believe Nigerian capital market will be characterized by restrained bargain-hunting amidst evident lull in investors’ appetite in the remaining months of second quarter of 2014 as the market oscillates between external pressures and domestic regulatory transition.

    Leading market pundits and analysts said they expected the market to be somehow tepid in the remaining months of the first half, although there could be some modest resurgence. With a negative first quarter return of -6.25 per cent, most opinions seemed to tilt towards a negative close for the market in the second quarter.

    Investment experts at BGL Plc, GTI Capital, FSDH Securities, Financial Derivatives Company (FDC) and CBO Capital said they did not expect an overtly bullish market in the second quarter, although there were several bargain stocks that could enliven the market.

    Group deputy managing director, BGL Plc, Mr. Chibundu Edozie said the capital market would remain cautious and undecided, although it may not witness a major decline.

    According to him, the outlook for the market is unclear as the market has so far failed to respond to a number of impressive corporate financial announcements of listed companies.

    “The cautious mode of the market is likely to be sustained through the first half of the year until the new CBN Governor resumes in June and monetary policy direction becomes clearer especially in relation to exchange rates. We however do not foresee a further precipitous decline given that the market currently presents significant bargain opportunities to investors,” Edozie said.

    He noted that the bearish run in the equities market was due largely to foreign investors selling down in response to the global investment risk reappraisal in the wake of US active tapering of its quantitative easing and hence rising interest rates abroad.

    Edozie pointed out the influence of foreign portfolios in Nigerian market noting that among peers and emerging markets, the Nigerian stock market was the second worst performer in the first quarter; behind Russia which declined by 8.8 per cent during the period.

  • Reckitt Benckiser confirms talks to buy Merck unit

    Reckitt Benckiser confirms talks to buy Merck unit

    Britain’s Reckitt Benckiser Group Plc has confirmed that it was in talks to buy Merck & Co’s consumer health business, the latest asset up for grabs in a wave of recent pharmaceutical deals.

    The consumer products group over the weekend emerged as a front runner in the auction for the unit, best known for Coppertone sunscreen and Claritin allergy medicine, sources told Reuters. Germany’s Bayer AG (BAYGn.DE) is also vying to buy the unit, which could fetch about $13.5 billion.

    “RB confirms that it is in discussions with Merck regarding an offer for its consumer health business,” the company said. “We understand that we are part of a competitive process.”

    Bayer Chief Executive Marijn Dekkers indicated that the company still aims to be the world leader in over-the-counter medicines. While acquiring Merck’s consumer health business would go a long way toward achieving that goal, he did not tip his hand on the Merck bidding process after Bayer announced its first-quarter results.

    Dekkers, on a conference call with analysts, said in order to become world number one in OTC the company needed not only significant organic growth but also “bolt-on acquisitions.”

  • UBA Capital doubles net profit to N1.8b

    UBA Capital Plc doubled its net profit by 106 per cent to N1.8 billion in 2013 as the company restated commitments to growing shareholders’ value in the years ahead.

    At the first annual general meeting in Lagos, chairman, UBA Capital Plc, Mr. Chika Mordi, said the company set out with an impressive performance in the first year of its operations noting that ongoing initiatives would lead to future growth.

    According to him, strategies adopted and the structures the board has put in place would ensure that the company not only sustains its 2013 performance, but it will surpass its previous records.

    He outlined that all the business activities of the company including investment banking, asset management, trusteeship and securities brokerage operated profitably and contributed to the overall positive results.

    Mordi said as a result of the diversification of the company’s business lines and expansion in each business line, gross earnings grew by 241 per cent from N1.3 billion to N4.6 billion.

    “Profit after tax from continuing operation grew by 106 per cent to N1.8 billion from N856 million. This is as a result of growth in our various business lines as well as a more diversified income stream and efficient cost management,” Mordi said.

    In her remarks, group chief executive officer, UBA Capital, Mrs. Oluwatoyin  Sanni said the company’s strong top-line performance was driven by fees and commission from execution of various investment banking mandates and generated from various funds under the management.

    He expressed optimism that in spite of the challenging start for the money and capital markets in 2014, the company is confident of  the ability of its leadership to optimise market conditions to deliver consistent results.

    “We are  convinced that our renewed marketing vigour, concerted efforts towards repositioning the company, strengthening of the workforce at all levels, service delivery and efficiency drivers such as group shared services initiative and robust new information technology infrastructure platform will support accelerated business growth, the improvement  of service delivery and appreciable cost improvements. All these are expected to enhance productivity, revenue generation and profitability,” Sanni said.

    Shareholders of the company approved a dividend per share of 25 kobo with a charge to the management to sustain what they described as a good start.

    Shareholders advised the management to develop policies and strategies that would boost the activities of the company.

    President, Independent Shareholders Association of Nigeria (ISAN), Mr. Sunny Nwosu said shareholders expect a better performance from the management.

    He urged the management to ensure that the company remains an investment banking institution to be reckoned with within and outside the country.

    “Our CEO must work tirelessly to increase our profitability and ensure that the bank returns increased performance in the coming years. This will translate to more dividends for the shareholders,” Nwosu said.

    The shareholders approved the appointment of Mrs. Oluwatoyin Sanni as the CEO of the company with effect from January, 2014.

  • Shareholders increase Sterling Bank’s share capital

    •Bank prepares for new fund raising

    Shareholders of Sterling Bank Plc yesterday increased the authorized share capital of the bank by 33.3 per cent from N12 billion to N16 billion, creating headroom for the bank to issue new shares in the event of any decision to raise new equity funds.

    At the annual general meeting of the bank at Eko Hotel & Suites, Victoria Island, Lagos, shareholders unanimously created new 8.0 billion ordinary shares of 50 kobo each to increase the authorized shares of the bank to from 24 billion ordinary shares of 50 kobo each to 32 billion ordinary shares of 50 kobo each.

    The decision strategically positioned Sterling Bank to respond to opportunities that may require issuance of shares. With 21.59 billion ordinary shares issued and outstanding on the stock market, Sterling Bank’s authorized share capital, prior to the increase, had unissued share capital of only 2.41 billion ordinary shares of 50 kobo each. The increase yesterday added 8.0 billion shares and raised the share issuance capacity to 10.41 billion ordinary shares of 50 kobo each.

    The increase came as the bank reaffirmed that it would realize other components of its $400 million three-tier capital raising exercise, which had been approved by the shareholders in 2013. After the approval in 2013, Sterling Bank had raised N12.9 billion through a rights issue. It has since launched a private placement and it has a tier 2 capital raising in view.

    Shareholders also yesterday urged the directors of the bank to consider further issuance of shares to existing shareholders in the event of any future share issuance. They said the bank has proven to be investors’ friendly, citing steady increase in dividends and above-average growths in key indices.

    National coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said shareholders have seen the positive results of their re-investment in Sterling Bank and would be willing to invest further in the bank.

    He noted that the increase in share capital would enable the bank to explore more opportunities to increase its capital base and enhance its market share in the banking industry.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, said shareholders would support future capital raising exercise as this will lead to better returns to shareholders.

    According to him, the size of shareholders’ fund is a major consideration in deciding large-ticket transactions as more funds will lead to expansion in the single-obligor limit of the bank.

    Shareholders commended the corporate governance standards at Sterling Bank. They approved the payment of a dividend per share of 25 kobo for the 2013 business year as against 20 kobo paid for the 2012 business year.

    Shareholders also bid the retiring chairman of the bank, Alhaji Sulaiman Adegunwa and two other directors-Mallam Bashir Borodo and Mr. Yemi Idowu, emotional farewell, with the hall filled with voices rendering “he’s a jolly good fellow”. All shareholders who spoke at the meeting noted the steady growth of the bank under Adegunwa.

    Under Adegunwa between 2006 and 2013, Sterling Bank’s shareholders’ fund increased from N26.32 billion in 2006 to N63.46 billion in 2013, balance sheet size expanded from N142.43 billion to N909.43 billion, gross earnings rose from N16.59 billion to N91.63 billion while profit before tax increased from N0.57 billion to N9.31 billion.

    Adegunwa said he was convinced the bank would sustain its growth trajectory noting that the board has been positioned to ensure competitive returns to shareholders on a sustained basis.

    “I assure you that my successor will continue to move Sterling Bank forward and further enhance its standing as a force to reckon with in the Nigerian banking industry,” Adegunwa said.

    Managing director, Sterling Bank Plc, Mr. Yemi Adeola, reassured shareholders that the bank would surpass its previous performance this year.

    According to him, the bank’s business model and execution capabilities are resilient enough to ensure sustained growth over the years irrespective of the operating environment.

    “We will pursue our capital raising programme with single-mindedness and prioritise risk management in order to strengthen the foundation for an enduring institution. We will also speed up investments to grow our retail funding base and emphasise service delivery across all channels to enhance our customers’ experiences,” Adeola said.

    Key extracts of the audited report and accounts of Sterling Bank for the year ended December 31, 2013 showed considerable growths in gross earnings and profitability while the bank’s balance sheet was stronger. The report indicated that gross earnings rose by 33.1 per cent while pre and post tax profits grew by 24.1 per cent and 19 per cent. Basic earnings per share rose by 18.2 per cent from 52 kobo t0 44 kobo.

    Gross earnings rode on the back of a 24 per cent and 31 per cent growth in non-interest income and interest income respectively to N91.6 billion in 2013 as against 68.86 billion in 2012. Non-interest income, which rose to N21.7 billion as against N15.3 billion in 2012 was largely due to a 139 per cent increase in trading income in addition to a 46 per cent increase in fees and commission; while Interest income rose to N70.0billion compared with N53.5 billion in 2012, driven by a 39 per cent increase in gross loans and advances to N328.7 billion.

    Profit before tax rose from N7.50 billion in 2012 to N9.31 billion in 2013 while profit after tax increased from N6.95 billion to N8.27 billion. As a demonstration of confidence in the bank, customer deposits rose 23 per cent to N570.5 billion as against N466.8 billion. This, according to the Bank, also reflects progress in the execution of its retail strategy

    Sterling Bank’s total assets including contingent liabilities increased by 28 per cent to N909.4 billion compared with N708.2 billion in 2012, while Shareholders’ funds grew by 36.1 per cent to N63.5 billion as against N46.6billion due to profit accretion and net proceeds of N12.1 billion from the rights Issue.

    The report also showed improvement in the asset quality of the bank as the proportion of gross loans to non-performing loan dropped to 2.1per cent in 2013 as against 3.8 per cent in 2012, notwithstanding a 40 per cent growth in loans and advances.

  • Lafarge Wapco records N8.6b profit in 3 months

    Lafarge Cement Wapco Nigeria Plc recorded significant growths in sales and profit in the first quarter of this year as the leading cement manufacturer hauled a profit before tax of N8.62 billion within three months.

    Interim report and accounts of Lafarge Wapco for the three-month ended March 31, 2014 showed that sales rose by 16 per cent while pre and post tax profits grew by 20 per cent and 34 per cent respectively. The report showed that turnover rose to N27.03 billion in first quarter of 2014 as against N23.24 billion recorded in comparable period of 2013. Profit before tax increased from N7.20 billion to N8.62 billion. Profit after tax also rose from N6.07 billion to N8.15 billion. Earnings per share grew by 34 per cent from N2.02 to N2.71.

    The company indicated that net finance cost reduced from N980 million to N760 million due to lower interest charges following the full repayment of the Naira syndicated bank loans. Investment income simultaneously grew by N160 million to N260 million.

    Managing director, Lafarge Cement Wapco Nigeria Plc, Joe Hudson, said the good performance in the first quarter was a reflection of the increasing demand for the company’s quality products and an outcome of the implementation of various volume and cost improvement strategies.

    “We are especially pleased that the new line in Ewekoro continues to gain momentum and remain very optimistic about the rest of the year despite the challenging operating environment,” Hudson said.

    Chief financial officer, Anders Kristiansson, noted that the company further strengthened its financial position during the quarter as it remains committed to delivering value to shareholders and other stakeholders in 2014.

    A subsidiary of France-based Lafarge SA, the world leader in building materials, Lafarge Wapco is the oldest and leading cement company in Nigeria. With its three plants in Ewekoro and Sagamu in Ogun State, Lafarge WAPCO is the manufacturer of Elephant Supaset, Lafarge PowerMax and Elephant Cement, a five decade old formidable brand that has consistently won the NIS Certificate for product quality by the Nigerian Standard Organisation for over two decades.

    It recently launched a concrete solution to cater for the needs of the Nigerian infrastructure market through her subsidiary, Lafarge ReadyMix Nigeria Limited.

  • Union Bank pays N11b restructuring costs

    Union Bank of Nigeria (UBN) Plc paid about N11 billion as restructuring costs in 2013, according to the audited report and accounts of the bank.

    The report underlined efforts to reposition the bank and key successes in the year. While the top-line recorded a modest increase of four per cent, the bank braced against decline in its core-banking interest income to increase pre and post tax profits by 31 per cent and 217 per cent respectively.

    Key extracts of the audited report and accounts for the year ended December 31, 2013 showed that group gross earnings closed 2013 at N121 billion as against N117 billion in 2012. Interest income however declined from N85 billion in 2012 to N81 billion in 2013. Net interest income also dropped from N63 billion in 2012 to N57 billion in 2013.

    Union Bank however reduced operating expenses by 18 per cent from N73 billion to N60 billion. With restructuring costs of N10.7 billion, the bank increased pre-tax profit to N3.8 billion in 2013 as against N2.9 billion in 2013. Profit after tax jumped from N1.2 billion to N3.8 billion.

    Group managing director, Union Bank of Nigeria (UBN) Plc, explained that the restructuring costs were due to a number of “critical internal and external restructuring initiatives” taken in 2013.

    According to him, the bank focused on two key priorities in 2013-immediately improving its operations by addressing critical challenges in service delivery to its clients; and developing a roadmap to establish the bank firmly as a leading player within the Nigerian banking industry.

     

  • Learn Africa restates commitment to shareholders’ value

    Learn Africa Plc is committed to ensuring responsible corporate governance standards that will safeguard shareholders’ value as it seeks to grow its business.

    Managing director, Learn Africa Plc, Mr Segun Oladipo, yesterday at a press briefing on recent development in the company in Lagos reiterated the commitment of the directors to responsible corporate growth.

    According to him, the management remained committed to ensuring a more judicious management of the company’s resources in order to enhance shareholders’ value.

    “We recognise that corporate governance standards and practices must be balanced to protect the interests of the shareholders and of the company. The board is mindful of its obligations under the Code of Corporate Governance issued by the Securities and Exchange Commission’s Code of Corporate Governance and the Post- Listing Rules of the Nigerian Stock Exchange,” Oladipo said.

    He outline that the company had successfully introduced new titles into the Nigerian market as replacements for some of the Pearson Education titles that were withdrawn from its list while the company has carried out a thorough revision of some of its publications to align them with the new curriculum requirements and sustain their market acceptance.

    “We have originated 96 new titles and produced over 20 million copies of our various publications. Without any doubt, we have been able to broaden the range of our product portfolio in order to meet the increasingly growing and dynamic needs of our customers,” Oladipo said.

    According to him, the company was able to achieve an exponential growth in open market sales from N800 million in 2011 to N1.4 billion in 2013 as its team of experienced and committed sales professionals succeeded in entrenching recent titles in the market.

    He noted that the company was able to deliver book supply contracts received from Universal Basic Education Commission through the indenting of its new titles worth over N2 billion in the last two years alone, thus making the its new series the fastest moving new titles in the Nigerian book market today.

    Oladipo said that following the decision to broaden the coverage area, the company expanded its sales team from 61 before Pearson’s divestment to 137 highly motivated sales persons within one year adding that the company has concluded the restructuring of the entire sales and marketing department for optimum utilisation and efficiency to enable it to meet the current challenges of contemporary book business.

    He pointed out that as part of continuous efforts to ensure that customers have easy access to its products; Learn Africa has established new depots across the country while the company has continued to improve its warehousing and distribution activities regularly with a view to ensuring that customers’ orders are serviced promptly.

    “This company recognises that management, professionals, and technical experts are its major assets, and investments in their future and development are given top priority. Our expanding skill base has been extended by a range of trainings provided to employees whose opportunities for career development within the company have thus been enhanced. Training is carried out through both in-house and external courses. Incentives and welfare schemes designed to meet the circumstances of each individual employee are implemented wherever applicable and some of these include performance bonuses,” Oladipo said.

    He commended shareholders, employees and other stakeholders of the company noting that it has been able to forge ahead in spite of the divestment of Pearson education due to the unflinching support of these stakeholders.

  • UBA assures on returns as shareholders laud N16.5b dividend

    United Bank for Africa (UBA) Plc at the weekend reassured its shareholders that it would improve on its performance and enhance returns in the years ahead as shareholders lauded the distribution of about N16.5 billion as cash dividends for the 2013 business year.

    At the annual general meeting in Lagos, chairman, United Bank for Africa (UBA) Plc, Ambassador Joe Keshi, told shareholders that the financial services group was poised to deliver better results in the current business year.

    According to him, the fundamentals of the bank have continued to improve with growths in incomes and underlying indices.

    “We believe the bank is poised to deliver better performance in 2014 as the underlying momentum of the group’s business continues to be robust,” Keshi said.

    He said the bank has been able to consistently deliver value to shareholders due to its resilient business model, in spite of unanticipated domestic and global headwinds faced by the industry.

    In his remarks, group managing director, United Bank for Africa (UBA) Plc, Mr. Phillips Oduoza said the bank’s African subsidiaries have continued to show greater contribution to the group’s performance noting that overall revenue of the African subsidiaries grew by 22 per cent in 2013 to N49.9 billion as against N41.5 billion in 2012.

    He outlined that the bank’s key strategic imperatives remain as defined in 2013 under the bank’s “Project Alpha” adding that the bank will leverage on the viable platform established in 2013 to further consolidate on the current growth momentum.

    According to him, as a proactive bank, UBA has adequately resourced and re- aligned its structures to optimise emerging opportunities arising across all the regional blocs, while also adopting appropriate risk management frameworks to mitigate likely exposures in its operations both within the local and global environment.

    “We will adopt a very aggressive approach to market and ensure focused implementation of our strategic priorities, to drive achievement of our corporate targets,” Oduoza added.

    Shareholders roundly commended the performance of the bank during the year ended December 31, 2013. They unanimously endorsed the audited financial statements and report as well as a gross dividend of N16.5 billion. Shareholders will receive a dividend per share of 50 kobo.

    They commended the board and management for sustaining the bank’s profitability, despite the challenging operating environment.

    National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu said directors of the bank deserve commendation for several initiatives taken to mitigate operating challenges.

    “The board and management should be commended for the way they handled last year’s operations of the bank, they have done well and we look forward to a better dividend next year,” Nwosu said.

  • Fed Govt, Stockbrokers mull new funding for power firms

    The Federal Government and stockbrokers at the weekend reached consensus on the need to collaborate on a viable mechanism to provide long-term capital to support recently privatized power companies.

    The Federal Government, through the Ministry of Power, and Chartered Institute of Stockbrokers (CIS), the self-regulatory body that regulates the stockbroking practice, at the 3rd annual national workshop of the CIS expressed willingness to work together to address the financial challenges of the power firms.

    The Federal Government had in 2013 sold the unbundled power companies from the defunct Power Holding Company of Nigeria (PHCN) to private investors. Ten electricity distribution companies (discos) and five generation companies (gencos) were privatized and sold to new core investors.

    However, funding has remained a lingering challenge as the new investors struggle to raise huge funds required to rehabilitate the power companies and stabilize power supply to the populace.

    Worried by the funding challenge, Minister of Power, Professor Chinedo Nebo, at the weekend said the ministry was ready to work with the CIS to provide amenable funding for the discos and gencos.

    According to him, government is willing to work with the stockbroking community and other stakeholders in the capital market to overcome the funding challenge facing the power companies.

    President, Chartered Institute of Stockbrokers (CIS), Mr. Ariyo Olushekun, said stockbrokers would work with the government to create innovative financial solutions for the power companies noting that the Nigerian capital market has the capacity to meet the financing needs of the power companies.

    Nebo, who spoke through his senior special adviser, Mr. Frank Edozien, reiterated that government was committed to the delivery of steady power supply to the nation in a not too distant future and was doing everything possible to realise that aspiration.

    “The ministry of power is determined to deliver on the power agenda and we are willing to collaborate with CIS and the entire capital market community in that regard,” Nebo said.

    Olushekun commended the efforts of the Minister aimed at ensuring that the country enjoys steady power supply pointing out that power is very vital for economic development of the country.

    He noted that stockbrokers decided to focus on power and other key sectors because of their importance to the revitalization of the economy.

    “We are determined to keep generating new ideas and strategies, which hopefully, our policy makers will consider and incorporate into the planning process,” Olushekun said.

     

  • Learn Africa restates commitment to shareholders’ value

    Learn Africa Plc is committed to ensuring responsible corporate governance standards that will safeguard shareholders’ value as it seeks to grow its business.

    Managing director, Learn Africa Plc, Mr Segun Oladipo, yesterday at a press briefing on recent development in the company in Lagos reiterated the commitment of the directors to responsible corporate growth.

    According to him, the management remained committed to ensuring a more judicious management of the company’s resources in order to enhance shareholders’ value.

    “We recognise that corporate governance standards and practices must be balanced to protect the interests of the shareholders and of the company. The board is mindful of its obligations under the Code of Corporate Governance issued by the Securities and Exchange Commission’s Code of Corporate Governance and the Post- Listing Rules of the Nigerian Stock Exchange,” Oladipo said.

    He outlined that the company had successfully introduced new titles into the Nigerian market as replacements for some of the Pearson Education titles that were withdrawn from its list while the company has carried out a thorough revision of some of its publications to align them with the new curriculum requirements and sustain their market acceptance.

    “We have originated 96 new titles and produced over 20 million copies of our various publications. Without any doubt, we have been able to broaden the range of our product portfolio in order to meet the increasingly growing and dynamic needs of our customers,” Oladipo said.

    According to him, the company was able to achieve an exponential growth in open market sales from N800 million in 2011 to N1.4 billion in 2013 as its team of experienced and committed sales professionals succeeded in entrenching recent titles in the market.

    He noted that the company was able to deliver book supply contracts received from Universal Basic Education Commission through the indenting of its new titles worth over N2 billion in the last two years alone, thus making the its new series the fastest moving new titles in the Nigerian book market today.

    Oladipo said that following the decision to broaden the coverage area, the company expanded its sales team from 61 before Pearson’s divestment to 137 highly motivated sales persons within one year adding that the company has concluded the restructuring of the entire sales and marketing department for optimum utilisation and efficiency to enable it to meet the current challenges of contemporary book business.

    He pointed out that as part of continuous efforts to ensure that customers have easy access to its products; Learn Africa has established new depots across the country while the company has continued to improve its warehousing and distribution activities regularly with a view to ensuring that customers’ orders are serviced promptly.

    “This company recognises that management, professionals, and technical experts are its major assets, and investments in their future and development are given top priority. Our expanding skill base has been extended by a range of trainings provided to employees whose opportunities for career development within the company have thus been enhanced. Training is carried out through both in-house and external courses. Incentives and welfare schemes designed to meet the circumstances of each individual employee are implemented wherever applicable and some of these include performance bonuses,” Oladipo said.

    He commended shareholders, employees and other stakeholders of the company noting that it has been able to forge ahead in spite of the divestment of Pearson education due to the unflinching support of these stakeholders.

    “We assure you that the company is sound and that we would continue to raise the bar in book publishing and marketing while generating appreciable returns on investment,” Oladipo assured.