The Nation Newspaper

Category: Equities

  • Equities open with N56b loss

    Equities open with N56b loss

    By Taofik Salako, Deputy Group Business Editor

    Nigerian equities reopened on Monday with considerable sell pressure on leading stocks in the main sectors of banking, oil and gas and telecommunications, pushing the overall market position to a net loss of N56 billion.

    Average return yesterday at the Nigerian Stock Exchange (NSE) stood at -0.44 per cent, largely due to losses suffered by large-cap stocks, such as Nigeria’s most capitalised stock, MTN Communications Nigeria; largest financial stock, Guaranty Trust Bank(GTBank); second largest financial institution, Zenith Bank and leading downstream oil and gas stock, 11 Plc, formerly Mobil Oil Nigeria.

    The All Share Index (ASI)- value-based index that tracks share prices at the Exchange, declined from its opening index of 24,306.36 points to close at 24,200.60 points. Aggregate market value of all quoted equities dropped from its opening value of N12.680 trillion to close at N12.624 trillion.

    Average year-to-date return depressed further to -9.8 per cent, with 1.1 per cent lost so far this month.

    With 11 decliners to 14 advancers, most sectoral indices also closed negative. The NSE Oil & Gas Index declined by 1.9 per cent. The NSE Banking Index dropped by 1.7 per cent while the NSE Insurance Index dipped by 0.4 per cent. Meanwhile, the NSE Industrial Goods appreciated by 0.3 per cent while the NSE Consumer Goods Index inched up by 0.1 per cent.

    The negative overall market position was driven largely by losses recorded by four leading stocks. 11 led the losers with a drop of N19.20 to close at N173.40. MTN Nigeria followed with a loss of N1.10 to close at N115. Zenith Bank lost 50 kobo to close at N16.20 while GTBank declined by 45 kobo to close at N22.

    Total turnover stood at 231.2 million shares worth N2.2 billion n respectively. Sterling Bank was the most active stock with a turnover of 77.55 million shares worth N96.77 million. FCMB Group followed with 33.28 million shares worth N63.21 million while Fidelity Bank placed third with N27.06 million valued at N48.18 million.

    “We expect bargain hunting activity to resurface this week given that the equities market remains fairly attractive,” Afrinvest Securities stated.

    Meanwhile, NASCON Allied Industries led the gainers with a gain of 50 kobo to close at N10. BUA Cement, Africa Prudential and C & I Leasing rallied 25 kobo each to close at N41.20, N4.25 and N4.20. Caverton Offshore Support Group rose by 14 kobo to close at N1.95 while Neimeth International Pharmaceuticals chalked up 13 kobo to close at N1.52 per share.

  • Unclaimed dividends rise to N158.4b

    Unclaimed dividends rise to N158.4b

    Unknown investors have amassed more than N100 billion in unclaimed dividends as capital market regulators search for investors that had used fictitious names or multiple forms of original names to buy shares in quoted companies.

    Data from the Securities and Exchange Commission (SEC) indicated that total unclaimed dividend stood at N158.44 billion by last December, with unknown investors accounting for more than N100 billion.

    The breakdown showed that unclaimed dividends with companies, 15 months and above, stood at N119.01 billion while those with registrars amounted to N14.64 billion. Unclaimed dividend less than 15 months old stood at N24.77 billion.

    The report highlighted the continuing problem of unknown investors, otherwise known as ‘ghost’ shareholders, who had used conjured or non-formal names and multiple accounts to buy shares during the fast-selling boom of 2005-2008.

    The 2005-2008 boom period of the capital market had witnessed significant increase in public offerings as several banks, insurance companies and other non-financial quoted and unquoted companies jostle to raise funds through the capital market.

    To increase chances of more allotments in the tight allotment process that was the hallmark of the large oversubscriptions during the period, several investors resorted to use of multiple applications, using shortened names, pseudonyms and other non-formal names. The inability to regularise these fictitious shareholdings has been the cause of growing unclaimed dividend.

    The Capital Market Committee (CMC) – a consultative assembly of stakeholders in the capital market had introduced the “Multiple Subscription Initiative”, aimed at regularisation of shares purchased with multiple identities, by investors-otherwise known as ghost shareholders that conjured up many identities to secure large allocation of shares, especially during public offerings. CMC had in November 2018 extended the deadline from December 31, 2018 to December 31, 2019.

    By last August, some 3.4 billion ordinary shares had been regularised under the “Multiple Subscription Initiative”.

    Head, Office of the Chief Economist, Securities and Exchange Commission (SEC), Mr Okey Umeano, said the increase in total unclaimed dividend was largely due to many unclaimed shares as more than N100 billion out of the unclaimed dividend figures were from those unclaimed shares.

    According to him, the quantum of unclaimed dividend would always be on the increase as long as there were unclaimed shares.

    “The main issue why unclaimed dividend is rising is because we have a large number of unclaimed shares,” Umeano said.

    He explained that many investors during the banking consolidation bought shares with different names as well as other people’s names which they were yet to rectify.

    He noted that as companies declare dividend, those accounts would equally be paid, leading to increase in unclaimed dividend figure.

    He pointed out that the commission introduced a forbearance window for multiple accounts to enable investors that bought shares with different names to regularise their accounts in order to reduce the quantum of unclaimed dividends.

    “SEC gave a window for people to come and rectify the multiple subscription thing. Many people have still not been able to claim their own because some of them have forgotten the names they used. Some have not been able to prove to their stockbrokers that they are the owners of the shares. So, we still have a large chunk of those shares, and anytime dividends are paid, those shares are not claimed and those people don’t get their dividends,” Umeano said.

    He said until the number of unclaimed shares comes down, the unclaimed dividend problem will continue.

    On the way forward, he said the Commission would continue to put pressure on all the people involved in order to curb the problem of unclaimed dividends.

  • Our five operating strategic pillars driving growth, says CWG

    Our five operating strategic pillars driving growth, says CWG

    By Taofik Salako, Deputy Group Business Editor

    CWG Plc, a leading publicly quoted system integration company, has said its five operating strategic pillars have been major drivers for its growth and resilient financial performance.

    Chief Executive Officer, CWG Plc, Mr. Adewale Adeyipo, said the five operating strategic pillars, which are growth, profits, liquidity, brand and dividend, have been essential guide on what CWG would be doing and how it would be done.

    According to him, the implementation and strict adherent to these pillars, which were initiated two years ago, have contributed to the growth of CWG in the last one year, leading to the re-introduction of some valuable information technology (IT) services and an increase in customised services businesses.

    For instance, the five pillars helped the CWG to record a transaction volume of over N12 billion on its BillsnPay presentment platform. This record is a major chunk of over 3000 per cent of what the company had in 2018, 2017 and 2016 combined.

    “We evaluate every decision and predetermine the contribution to all or any of these pillars. The pillars have created focus and clarity. They have helped us to know what business to take seriously and what we should cease doing. Not every opportunity is considered to be a ‘Must Have,  it mostly depends on its contribution to the pillars. I can tell you that the underlining principles that have kept us focused are these five pillars,” Adeyipo said.

    CWG had on June 25, 2020 presented its latest audited report to its shareholders at the annual general meeting held at CWG’ headquarters.

    Key extracts of the audited report and accounts of CWG for the year ended December 31, 2019 showed that the company’s gross revenue increased by 23.4 per cent to N9.6 billion in 2019 as against N7.8 billion in 2018. The company recorded a positive earnings before interest, tax, depreciation and armotisation (EBITDA) of N892 million. Profit before tax stood at N634 million while profit after tax closed at N73 million. The growth in revenue and profit was achieved with a reduction of 23 per cent in operating expenses. Meanwhile, net assets grew by 67.4 per cent to N192 million as against N115 million.

  • Cadbury Nigeria MD lauds Peterside for transformational growth

    Cadbury Nigeria MD lauds Peterside for transformational growth

    By Taofik Salako, Deputy Group Business Editor

    Cadbury Nigeria Plc has commended Mr. Atedo Peterside, its immediate past chairman, for his unwavering leadership through transformational change.

    Managing Director, Cadbury Nigeria Plc, Mrs. Oyeyimika Adeboye, said Peterside, who announced his resignation from the board of the company last week, contributed significantly to its growth.

    She said Peterside had been a great support to executive management, challenging and encouraging the team through the years.

    “Cadbury Nigeria has benefitted from Peterside’s wealth of experience. His inspiring leadership style and astute management skills have been of significant value to our company,” Mrs Adeboye said.

    She said the board, management and staff of Cadbury Nigeria appreciate the immense contributions of Peterside to the success of the company and wish him well in his future endeavours.

    Peterside has been a member of the Board of Directors of Cadbury Nigeria since August 5, 2009 and became chairman on April 21, 2010. He announced his resignation from the company on June 30, 2020, to move on to concentrate on other challenges.

    In a statement announcing his resignation, Peterside said Cadbury Nigeria has stabilised on a growth path, noting that the company had held its 55th Annual General Meeting (AGM) while its Managing Director has settled nicely and consolidated her position over  the last 15 months.

    “The company is on a profitability path that can be sustained if normal trading conditions are allowed to prevail. The board of Cadbury is well-endowed and my departure from the board also enables the company to inject a new independent director into the fold. The periodic injection of “new blood” is good for the system, especially when further diversity is achieved in the process viz geography, demography and the injection of new and varied skill sets,” Peterside stated.

     

  • Equity investors rake N1.66tr gains in Q2

    Equity investors rake N1.66tr gains in Q2

    By Taofik Salako, Deputy Group Business Editor

    Nigerian equities witnessed a major recovery in the second quarter with positive average return of 14.12 per cent within the three-month period, representing net capital gains of N1.656 trillion.

    The second quarter performance was, however, overshadowed by net loss of N2.68 trillion in the first quarter, leaving investors with net loss of N1.14 trillion for the six-month period.

    Benchmark indices at the Nigerian Stock Exchange (NSE), which are generally regarded as sovereign equity indices for Nigeria, showed that Nigerian stocks swiveled through steep decline in first quarter and a major recovery in early months of the second quarter.

    The All Share Index (ASI)- a common value-based index that tracks all share prices at the Exchange, closed first half at 24,479.22 points as against 26,842.07 points recorded as opening index for the year, indicating negative six-month average return of -8.80 per cent.

    The index had posted a double-digit negative return of 20.7 per cent in the first quarter, driven by a steep decline of 18.75 per cent in March. The six-month performance, though still negative, was moderated by the two-month successive rally in April and May, which saw equities recording a two-month average return of 19 per cent. The market relapsed in June with average decline of 3.12 per cent, a loss of about N410.8 billion.

    With net loss of about N2.68 trillion in first quarter 2020, the half-year return, though negative, indicated considerable recovery within the second quarter. Nigerian equities recorded positive average return of 14.12 per cent in the second quarter, equivalent to net capital gains of N1.656 trillion for the three-month period. The ASI had closed March 2020 at 21,300.47 points.

    “The markets may remain volatile in the near term. We advise investors to accumulate quality stocks at lower levels with a long-term investment horizon,” FSDH Group, a major investment banking group, stated in its outlook.

    Data provided by SCM Capital, an investment banking firm, indicated that average loss for foreign portfolio investors, who denominate in Dollars, could more than doubled average decline in Naira terms. Aggregate market value of quoted equities, which showed unadjusted decline of 1.46 per cent in Naira terms, declined by 16.20 per cent in Dollar terms.

    The market has continued to struggle with domestic macroeconomic uncertainties, global decline in crude oil price and trade wars and the ravaging COVID-19 pandemic.

    Chief Operating Officer, GTI Capital, Mr. Kehinde Hassan, said the stock market was impacted by the global market variables and domestic foreign exchange management, which negatively influenced foreign portfolio participation in the market.

    The Nation had exclusively reported that foreign portfolio investments (FPIs) in the Nigerian market dropped to a 29-month low in May 2020, the latest available figure. Total FPIs dropped to N35.24 billion in May 2020, its lowest month-on-month record in the past 29 months.

    Chairman, Association for Securities Dealing Houses of Nigeria (ASHON), Chief Onyenwechukwu Ezeagu, said FPI decline was due to a myriad of factors including uncertainty about the full impact of COVID-19 on the  economy, Naira depreciation, limited availability of foreign exchange, inconsistencies in monetary and fiscal policies and global oil glut.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, said the outlook for the second half at the Nigerian stock market would be mixed with the impact of COVID-19 weighing more heavily in the third quarter and a recovery in the fourth quarter.

  • NASD mulls new strategy to provide funding for small businesses

    NASD mulls new strategy to provide funding for small businesses

    By Taofik Salako, Deputy Group Business Editor

    NASD OTC Securities Exchange Plc is refocusing its enterprise portal as a fund sponsor to provide amenable capital to micro and small enterprises as part of efforts to open up the over-the-counter market to growing companies.

    At its Annual General Meeting (AGM) in Lagos, which was held through virtual proxy attendance due to COVID-19 restrictions, NASD said its enterprise portal, known as NASDeP, which was initially expected to match pre-initial public offering (IPO) companies with private equity investors, is now being refocused as a fund sponsor that will directly match pre-IPO companies with amenable funding.

    Pre-IPO companies include micro, small and medium enterprises and emerging growth companies, either as a private limited liability company or public limited liability company, that have not issued their maiden public share issuance, otherwise known as IPO.

    SEC had in April 2018 granted NASD a no-objection approval, paving the way for the OTC platform to operate a restricted primary market for pre-IPO companies and accredited investors.

    Chief Executive Officer, NASD OTC Securities Exchange Plc, Mr Bola Ajomale, said while the NASDeP was initially expected to match pre-IPO companies to private equity investors who would provide managerial capacity in addition to capital, it was discovered that funding requirements for such pre-IPO companies have been below the minimum investment thresholds of private equity firms.

    “We are therefore refocusing NASDeP as a fund sponsor to match these companies. Discussions started towards the end of 2019 to raise such a fund from multilateral companies. We shall continue to express courage and our entrepreneurial spirit in this venture,” Ajomale said.

    He said the NASD will continue to improve its operational efficiency by investing in existing structure, using scalable technology and driving innovation.

    According to him, the implementation of an asset class agnostic trading platform, which was approved by the board of directors of the Exchange in 2019, is expected to significantly improve trading volumes and speed at the market.

    Ajomale said the Exchange remains optimistic that its investments in technology and innovation would mitigate the adverse impact of the COVID-19 pandemic on the Exchange in 2020 and beyond.

    “NASD has since inception been committed to providing innovative solutions that are reliable, resilient and functional. We recognise the new opportunities that are rising out of this situation and intend to remain versatile and flexible to maintain market operations while providing capital raise services to enterprises that now have an even more pronounced need for the capital market,” Ajomale said.

    Chairman, NASD OTC Securities Exchange Plc, Mr. Olutola Mobolurin said the Exchange exposed some draft rules to the public in 2019 in furtherance of its efforts to ensure an orderly market and expand service offerings.

    According to him, the rules included rules for executing negotiated deals, admission of rights issues, admission of commercial papers and registration of sub brokers.

    “We expect these rules will further improve transparency and price discovery on the market,” Mobolurin said.

    He noted that NASD had fortuitously in 2019 reassessed its strategy and redefined its focus to facilitate its becoming the hub of first call for capital formation in West Africa as the Exchange continues to expand its product offerings and services to cater to the new business and capital raising environment.

    According to him, the NASD has embarked on a material technology overhaul that will improve its scope, efficiency and effectiveness as an over the counter market in line with its commitments to continue to deliver on its objectives to all stakeholders.

    With macroeconomic challenges, NASD generated transaction fees of N139 million while it recorded investment income of N65.5 million. It generated listing fees of N2.62 million. Total expenses amounted to N196.7 million in 2019 compared to N163 million in 2018. NASD recorded a profit after tax of N45.01 million.

    The report for the year ended December 31, 2019 showed that the volume of shares traded on NASD decreased by 85.82 per cent while the value traded declined by 65.61 per cent compared to 2018.

     

    The bond market on the other hand recorded trades valued at N4.01 billion during the year under review. Market capitalisation closed at N501.14 billion compared to the market value of N514.77 billion. As at December 31, 2019, the value of transactions executed on the market was N10.45 billion.

    Inaugurated in July 2013, NASD is registered by Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) as a Self-Regulatory Organisation (SRO). It provides the platform for trading of a broad range of instruments over-the-counter (OTC), including equities, bonds and other securities not listed on a formal general securities exchange.

     

     

     

     

     

     

     

  • SEC moves to protect investors from bogus offers

    SEC moves to protect investors from bogus offers

    By Taofik Salako, Deputy Group Business Editor

     

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has introduced a major amendment to disclosures and information to be included in a prospectus for any public offering as part of efforts to further safeguard the investing public from false claims and bogus offerings.

    With the new amendment, companies offering equities or debt issues to the general public will have to include SEC’s contact telephone number and email address conspicuously in the introductory part of the prospectus for interested members of the investing public to confirm the veracity of the offer.

    According to SEC, the introduction of the confirmation segment was part of efforts to enhance investor protection and promote transparency in the operations of the Nigerian capital market.

    SEC noted that issuers should display prominently in the introductory part of the prospectus that “investors may confirm the clearance of the prospectus and registration of the securities” with the Commission through provided email and telephone numbers. The new requirement took effect on June 18, 2020.

    “The investing public are encouraged to utilise the contact information provided in a prospectus to contact the Securities and Exchange Commission where they require information regarding the clearance of a prospectus or registration of securities,” SEC stated.

    The new requirement came on the heels of enforcement of a new investors’ identification regime also aimed at enhancing transparency in the capital market and forestall the recurring incidence of unclaimed dividend.

    The market had on April 1, 2020 started new identification regime under which no transactions shall be effected on any existing investor’s account without updated and validated information as required under the approved know-your-customer (KYC) format for the market. Any stockbroking firm that trades on any such incomplete account shall be sanctioned.

    SEC had directed stockbrokers to capture full information in respect of new clients and update information of their existing clients. The required information include bank account details, bank verification number (BVN), telephone number and email address.

    “Such information should be validated against the Nigerian Interbank Settlement Systems Limited (NIBSS) BVN validation portal. Brokers should update their Order Management System to enable the system flag off accounts with incomplete KYC information,” SEC stated.

    According to the Commission, the clearing house for the stock market, the Central Securities Clearing System (CSCS) should an editable format of lists clients with incomplete records to stockbrokers for them to update and return such to CSCS.

    The apex regulator mandated the CSCS to ensure transmission of full information to the registrars following transactions while registrars must ensure that new or updated shareholders information transmitted to them are properly captured in the relevant company’s register of members.

    “The relevant capital market operators are hereby advised to note that monitoring and enforcement of strict compliance with the foregoing will commence on April 1, 2020,” SEC stated.

    SEC noted that the new enforcement regime was in furtherance of its investor protection and market development mandate with a view to ensuring ensure accountability, transparency and stability in the capital market.

    The Commission stated that the new regime is aimed at forestalling, reducing and eventually eliminating the incidence of unclaimed dividend and to ensure that investors receive the benefits accruing to their investments immediately without any stress.

    SEC had in November 2015 launched the E-Dividend Mandate Management System (E-DMMS), in collaboration with the Central Bank of Nigeria, Nigerian Interbank Settlement System (NIBSS) and other stakeholders.

    The E-DMMS is an E-dividend payment portal that ensures the payment of dividends directly into a shareholder’s account.

    The Commission subsequently cancelled the issuance of physical dividend warrants, opting for full e-dividend payment for companies quoted on the  stock market.

     

  • Stockbrokers urge govt to use capital market for more infrastructural funding

    Stockbrokers urge govt to use capital market for more infrastructural funding

    By Taofik Salako, Deputy Group Business Editor

     

    Stockbrokers at the Nigerian Stock Exchange (NSE) have advocated more issuance of fixed income securities by the government to finance infrastructure deficit,  describing the recent over-subscription of Sukuk Ijarah issued by the Federal Government as a clear demonstration of the market’s absorptive capacity.

    Recently, the Federal Government floated a N150 billion Sukuk  Ijarah, a financial instrument for ethical investors that provides regular bi-annual tax-free payment with seven-year maturity. It was oversubscribed in excess of 400 per cent.

    Stockbrokers described the over- subscription of the N150 billion Sukuk Ijarah as a double-edged sword as the offer which snapped up over N600 billion from the market has largely contributed to the current bearish trend amid other perceived variables.

    Appraising the historic subscription of the instrument despite the inclement operating conditions, stockbrokers at the Exchange ascribed the success to factors such as investor confidence as the instrument is project-tied and assurance of ease of redemption being backed by full weight of the government.

    They urged the government to leverage such an instrument to mobilize fund to revive Nigeria’s ailing industrial base.

    “Federal Government should increase the pace of issuance of such an instrument as the market has demonstrated its absorptive capacity given the over 400% over subscription letter of the last Sukuk,” president, Chartered Institute of Stockbrokers, Mr Olatunde Amolegbe said.

    Managing Director, Global Asset Management, Mr Babatunde Sobamowo noted that Sukuk was becoming famous of its structure as an Investment vehicle being used by the Federal Government.

    According to him, the instrument can boost implementation of the government’s Economic Recovery and Growth Plan (ERGP).

    “Sukuk confers on the subscribers, ownership of the assets being financed which in most cases are for ethical purposes.

    In recent times, they are used to finance roads, railways and other infrastructure which are lacking in the country.

    They will serve as catalyst to the much needed development to boost our industrial and agricultural growth which will impact positively on our GDP as clearly spelt out in the Economic Recovery and Growth Plan (ERGP)

    “To ensure probity in the management of these underlying assets, it is advisable that Project Management Offices (PMOS) are opened in all the sites where these funds are being deployed.

    It will afford all stakeholders to have an on- the-spot assessment of the projects and the expected cash flows to be generated in paying the rental incomes due to the subscribers.

    Furthermore, regular facts behind the bonds should be done during its lifespan to avail all stakeholders to ask questions and profer solutions on projects that seem not to be meeting the set targets. This may open avenues and more awareness to the general public to participate in future,” Sobamowo said.

    Managing Director,  APT Securities and Fund Limited, Mallam Garba  Kurfi explained that the projects being executed with Sukuk proceeds were visible across the country and this enhanced  the instrument’s patronage by investors.

    “The FGN SUKUK 111 was oversubscribed by over 400 per cent which has not appeared in any public offer in Nigeria both in equity and bonds.

    This confirmed the confidence people have in Sukuk. It can be attributed to the underlying structure of Sukuk which is based on the existing projects and people can see across the country as shown on the road network.

    Therefore, the Investors are living testimonies of the projects, unlike a bond which cannot be directly attached to a project.

    Osun state started it but now FGN has taken the issues and this is third Sukuk despite lower rate compared with first and second which were 16.47 per cent and 15.74 per cent respectively.

    Although the rate has been crash to 11.20 per cent,  a reduction of 5.27 per cent or by 33 per cent , yet it was oversubscribed.

    It shows that FGN and state should employ this finance instrument means for infrastructure development as done in other jurisdictions,” Kurfi said.

     

  • CWG plans 50-year sustainable strategy

    CWG plans 50-year sustainable strategy

    By Taofik Salako, Deputy Group Business Editor

     

    CWG Plc is working on a major long-term growth and development plan that would see the system integration company continuing as a leading operator over the next five decades.

    At the Annual General Meeting held by virtual attendance through proxies, the company reviewed improvements in its operations and reassured shareholders on sustainability of its growth.

    Chairman, CWG Plc, Mr. Phillip Obioha, said the company has been positioned to continue to innovate and create cutting-edge technology and services that will be relevant now and in the future.

    According to him, CWG is well-positioned and equipped to redefine innovation that provides solutions to the technologically-based institution gaps that are seen in potentially viable and critical sectors of the Nigerian economy and Sub-Saharan Africa.

    “In 2019, revenue and total profit growth were as a result of the renewed partnership with our strategic partners. Operating expense was reduced by 23 per cent, 2019 over 2018, due to different optimisation exercises that were carried out in the year.

    We also closed 2019 with a positive earnings before interest, tax, depreciation and amortisation (EBITDA) of N892 million and profit before tax of N634 million.

    Right now, we are charting a course of a new organisation that would be around for the next 50 years,” Obioha said.

    Key extracts of the audited report and accounts of CWG for the year ended December 31, 2019 showed that the company’s gross revenue increased by 23.4 per cent to N9.6 billion in 2019 as against N7.8 billion in 2018.

    The company recorded a positive earnings before interest, tax, depreciation and armotisation (EBITDA) of N892 million. Profit before tax stood at N634 million while profit after tax closed at N73 million.

    The growth in revenue and profit was achieved with a reduction of 23 per cent in operating expenses. Meanwhile, net assets grew by 67.4 per cent to N192 million as against N115 million.

    Obioha pointed out that the value-added revenue and gross profit were due to the re-introduction of some valuable information and technology services and an increase in customised service businesses.

    Chief Executive Officer, CWG Plc, Mr. Adewale Adeyipo also attributed the performance in the 2019 financial year to the gains of the company’s ‘five pillars’ strategy, which was adopted two years ago. The five pillars included growth, profit, liquidity, brands and dividend.

    He disclosed that strict adherence to the five pillars has helped CWG to deliver on its mandate to enable the growth of its clients.

    “That is the level of focus we have delivered with the five pillars we created. If you also want to go to some certain deliverables; then we can begin to talk of our BillnPay platform presentment platform, which is an app of CWG 2.0.

    On BillnPay last year, we recorded a transaction volume of over N12 billion, which is a major chunk of over 3000 per cent of what we had in 2018, 2017 and 2016 combined.

    So, I can tell you that the underlining principles that have kept us focused are these five pillars,” Adeyipo said.

    He added that these pillars have created an essential guide on what CWG does and how to do it, explaining that CWG evaluates every decision and determine what will be the contribution of the decision on any of these pillars.

    “These pillars have enabled us to create some focus and clarity. It has given us insights on what we need to take seriously and what we need to stop doing. With these pillars, we measure the success or otherwise of our company,” Adeyipo said.

     

  • Nigerian Breweries pays N16.1b dividend

    Nigerian Breweries pays N16.1b dividend

     Taofik Salako, Deputy Group Business Editor

     

    SHAREHOLDERS of Nigerian Breweries (NB) Plc have approved a total dividend of N16.1billion for the 2019 business year, representing a dividend per share of N2.01.

    At the company’s 74th Annual General Meeting (AGM) held by virtual attendance and through proxies in Lagos, shareholders praised the board of the company for ensuring that investors continued to get returns on their investment.

    They urged the company not to relent in looking for innovative ways to improve on its performance thereby ensuring that it remains ahead of the pack.

    Speaking at the meeting, Chairman, Nigerian Breweries Plc, Chief Kola Jamodu said that the company had earlier paid an interim dividend of N3.99 billion or 50 kobo per share in December 2019, adding that the final dividend would therefore be N12.1 billion or N1.51 per share. The final dividend became payable yesterday, June 24, 2020.

    A breakdown of the company’s results for the period revealed that it recorded a net revenue of N323 billion as against N324.4 billion recorded in 2018.

    Jamodu explained that some of the factors that impacted on the company’s performance in 2019 were inflation at double-digit rate, increase in input cost and further rise in the Excise Duty rate which could not be passed to the consumer due to continued pressure on purchasing power.

    According to him, the business was nevertheless able to post a positive profit after tax of N16 billion for the year due to series of innovations and implementation of cost efficiencies.

    While thanking the shareholders for their commendation, suggestions and overall support, Jamodu assured them that the company remained focused on delivering long term sustainable value to its shareholders in line with its philosophy of ‘Winning with Nigeria’.