The Nation Newspaper

Category: Investors

  • Unity Bank reverses N14.9b loss with N1.3b profit

    Unity Bank Plc staged a major recovery in the immediate past business year as the commercial bank moved from a net loss of N14.92 billion in 2017 to a net profit of N1.27 billion.

    Key extracts of the audited report and accounts of the bank for the year ended December 31, 2018 showed pre-tax profit of N1.41 billion in 2018, as against pre-tax loss of N14.24 billion. Gross earnings however dropped from N89.93 billion in 2017 to N37.33 billion in 2018. Earnings per share recovered from net loss of 126.62 kobo in 2017 to 13.03 kobo in 2018.

    Directors of the bank stated that they have reached advanced stages in ongoing efforts to raise new equity and debt capital to bolster the balance sheet, which had been significantly impaired by a major non-performing loan resolution.

    Reassuring on the outlook for the bank, the board noted that additional equity and debt capital will improve the capital ratios of the bank as well as competiveness and its expansion plans.

    The bank stated that whilst the capital raising exercise has been diversified to engage several strategic investors, deliberate actions were taken to strictly extract commitment following the review of capacity, investment funding availability and strong poise and strategic alignment to the long-term vision and aspirations of the bank that form the basis to invest in it.

    “In the ongoing capital raising exercise, the bank has considered a variety of classes of investors, including local and foreign, internal and new investors, individual and institutional investors, amongst other options. However, all prospective investors are required to demonstrate financial and business capacity, impeccable reputation and potential to add strategic value towards achieving the bank’s strategic goals and vision,” the report stated.

    According to the bank, the strategic disposal of non-performing loans under a toxic asset resolution initiative in the ongoing capitalisation process resulted in the reported negative shareholders’ funds of N242.193 billion in 2017 and also impacted on the reported negative shareholders’ funds of N243.69 billion in 2018.

    “Management is committed to and highly optimistic of a successful conclusion of the capitalization activity,” the report stated.

    In a one-off total de-risking of its balance sheet, the bank had in 2017 wrote off a total of N16 billion that arose from goodwill from legacy merger issues, a decision that negatively impacted the bottom-line and led to a net loss of N14.2 billion in 2017.

    The courageous action taken by the bank towards cleaning up the observed issues thus resulted in a negative capital base but also gave birth to a leaner bank with a healthy balance sheet.

    “By this milestone, the bank now carries zero non-performing loan and is in full compliance with regulatory criteria. Furthermore, with a fully performing loan portfolio and improved risk processes, the financial risk on the bank from credit exposures have been extremely minimised,” the report stated.

    The bank had indicated that it had taken a number of strategic initiatives among which include; a revised market focus that has, and will continue to increase agriculture and agro-allied financing, youth and digital banking and women financing; enhanced retain banking drive and cost containment among others.

  • Greenwich floats N1b IPO for ETF mutual fund

    Greenwich Asset Management Limited has launched an initial public offering (IPO) for its Greenwich Alpha ETF Fund, an index-based mutual fund that tracks the 30 largest companies on the Nigerian Stock Exchange (NSE).

    Greenwich is offering 10 million units of Greenwich Alpha ETF Fund at N100 per unit with a view to raising N1 billion as start-up fund for the open-ended mutual fund. Minimum subscription is 1,000 units or N100,000 and thereafter in multiples of 500 units or N50,000.

    The opening of application list to the IPO followed approvals of the Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE). The fund will be listed on the NSE after the IPO.

    Greenwich Alpha is authorised and registered in Nigeria as a unit trust scheme and is an open-ended fund, which is designed to assist investors to obtain market exposure to the constituent companies comprising the NSE-30 Index.

    The fund manager indicated that the objective of the fund is to track as closely as possible the performance of the NSE-30 by investing only in securities of constituent companies in the NSE-30, which is made up of the top 30 companies in terms of market capitalisation and liquidity listed on the NSE.

    “The Fund’s assets will thereby be invested in equities of listed companies in the financial services, consumer goods, agricultural, industrial goods and oil and gas sectors,” the fund manager stated.

    Greenwich said investors in the fund will benefit from potential of higher investment yield, portfolio diversification, cost efficiency, replication of performance of the 30 most capitalised stocks on the Exchange, access to professional management, regulated structure and operations and ease of entry and exit from the fund.

  • Chams rebounds to profit

    Chams Plc has recovered from a loss of N1.27 billion in 2017 to a profit of N380 million in 2018, as the identity management and electronic payment company started to reap from a recent restructuring.

    Key extracts of the audited report and accounts of Chams for the year ended December 31, 2018 showed that the company’s total assets rose by 10 per cent to N5.25 billion in 2018 as against N4.77 billion in 2017. Total liabilities also reduced by 14 percent to N3.60 billion in 2018 compared with N4.20 billion in 2017. For the first time in several years, earnings per share turned positive at a modest 7.0 kobo.

    The company’s net profit margin increased on the back of 54 per cent growth in revenue while finance expenses declined by 34 per cent. Turnover grew by 54 per cent due to increased income from identity management services, sales, maintenance of Bank Verification Number (BVN) services, supply of cards, sales of the Access control as well as income from switching service. The report also showed significant increase in other operating income due to amount recovered from impaired receivables and rental income.

    Chams had in 2018 restructured its operations for global competitiveness, including a change in business model, placing premium on identity management and introduction of innovative products and services.

    Its Group Managing Director,  Femi, Williams said the results showed improvement in internal efficiency and the positive effects of the management’s determination to revamp the company’s operations for enhanced profitability in other performance indicators.

    According to him, the 2018 performance was a result of the group’s doggedness and the pragmatic approach it adopted in tackling the array of issues that plagued it and the industry for a long time now.

     

     

  • United Capital promises better returns as shareholders get N1.8b dividend

    The United Capital Plc Board of Directors has assured shareholders that it has put in place appropriate strategies to ensure that the company continues to make progress and deliver better returns, irrespective of the challenges in the operating environment.

    Addressing shareholders at the annual general meeting in Lagos, its Chairman, Chika Mordi, said things are definitely looking up for the company, a development he attributed to deliberate implementation of actionable strategies, that have paid off.

    Shareholders approved payment of N1.8 billion as cash dividend for the 2018 business year, representing a dividend per share of 30 kobo. “I am confident in our ability to deliver superior returns to you going forward,” Mordi assured.

    He said the company is cognisant of the challenges in the current operating environment and it will strive to maximise value creation for its shareholders.

    “Our staff remained resourceful, motivated and dedicated, and we continue to attract the best of talent to execute our short-medium and long-term strategic objectives,” Mordi said.

    United Capital drew on operating efficiency and steady growth in the top-line to grow its profit to N6.22 billion in 2018. Key extracts of the audited report and accounts of the company for the year ended December 31, 2018 showed that profit before tax rose by 12 per cent from N5.55 billion in 2017 to N6.22 billion in 2018.

    However with 58.8 per cent in taxes, profit after tax dipped marginally to N4.34 billion in 2018 as against N4.36 billion in 2017. Total turnover improved by four per cent to N9.26 billion compared with N8.92 billion in previous year. Operating income had grown from N7.0 billion in 2017 to N7.2 billion in 2018.

    With earnings per share of 72 Kobo, the company’s board of directors  recommended N1.8 billion payment as cash dividend for the 2018 business year, representing dividend per share of 30 kobo. The dividend payout represents a dividend yield of about 9.0 per cent, which most analysts considered attractive.

    The report also showed that the investment and finance group leveraged cost saving techniques to deliver a 10 per cent reduction in operating expenses.  Net trading income also grew by 43 per cent on the back of increased gains from the sales and purchases of financial instruments. Net interest margin quadrupled by 428 per cent from N143.52 million in 2017 to N757.48 million in 2018. Total assets rose to N148.70 billion in 2018 as against N136.60 billion in 2017.

    Group Chief Executive Officer, United Capital Plc, Mr. Peter Ashade said the result showed modest improvement in the performance of the company despite the challenges in the operating environment.

    He said the company’s continuous dedication to providing optimum satisfaction to its wide clientele base has necessitated the need for it to be creative and innovative in its operations, and this is evident in the reduction in its operating expenses.

    He noted that the investment and finance group implemented the new IFRS 9-Financial Instruments, which required the reclassification of most of its financial assets.

    According to him, the standard necessitated the impairment of some assets based on the expected credit loss model, leading to recognition of an impairment charge of about N3 billion, which significantly impacted the shareholders’ fund.

    United Capital is the first investment bank to be listed on the Nigerian Stock Exchange (NSE). The group include subsidiaries in trusteeship, securities and asset management business.

     

  • Fidson records N16.23b turnover

    Fidson Healthcare Plc has recorded 15 per cent growth in sales in 2018 as the company continues to grow its business.

    The company’s audited financial report showed that turnover rose from N14.06 billion in 2017 to N16.23 billion in 2018.

    Managing Director, Fidson Healthcare Plc, Fidelis Ayebae, said the increase in revenue was as a result of volume growth from expanded production at the company’s new World Health Organisation (WHO)-compliant factory.

    He said the plant, which was commissioned in 2016, is a key driver of the company’s growth strategy and local sourcing initiatives, noting that the new factory is one of the most sophisticated manufacturing facilities in Africa and is well positioned to meet the rising demand for medicines in Nigeria and the broader West-African region.

    He noted that the growth in revenue was achieved in spite of a challenging year for the pharmaceutical industry, which saw some therapeutic substances being banned by the government and costs increasing on key production inputs.

    According to him, these challenges made the company’s cost of sales to go up by over 40 per cent from N6.90 billion in 2017 to N9.91 billion in 2018. Other factors that affected its cost of sales include increased logistics cost for imported materials due to congestion at the seaports, which drove up the cost of transporting goods from the ports by 1000 per cent.

  • Experts seek reforms in capital market

    Financial and policy experts have called for concerted efforts to encourage Nigerians’ greater participation in the domestic capital market. They called for reforms to enhance the global competitiveness of the Nigerian market to attract more investors.

    The experts, who spoke at the 2019 Capital Market Summit, hosted by the Association of Securities Dealing Houses of Nigeria (ASHON) in Lagos, brainstormed challenges militating against the growth and development of Nigerian capital market and proffered workable solutions to re-position the market for the benefit of all stakeholders. ASHON also used the summit to announce its name change from Association of Stockbroking Houses of Nigeria to Association of Securities Dealing Houses of Nigeria.

    The keynote speaker, Chairman and Chief Executive Officer, Susman and Associates (S and A), Dr Shamsusdden Usman, in his paper titled: “Driving Financial Inclusion through the Capital Market “, explained that unlike other markets that had fully recovered from the global financial crises of 2007-2008, Nigeria’s capital market continue to suffer from investors’ apathy and other sundry issues.

    Usman, a two- term Minister of Finance and National Planning, advocated a complete review of the market in line with the current realities in the global financial market in order to re-address the issue of investors’ confidence and leverage the market for financial inclusion. He advocated a one-stop financial centre in line with some foreign markets.

    “In China, Interbank bond markets offer special financial bonds for the purpose of increasing size of loans to the SMEs. Capital Market Business Hubs (CMBH) are established in small cities to expand outreach of capital market institutions. In Mexico, the farmer mutual insurance funds provide insurance to their members by pooling together resources to pay for future indemnities and reinsures itself from major systemic risks that could hurt simultaneously all their members,” Usman said.

    He stated that he instituted a project called Voice and Voting Power(VPP) in which major stakeholders are involved with the aim of finding lasting solutions to the challenges facing the capital market.

    Usman identified some of VPP’s recommendations as development of the commodities exchange ecosystem, encouraging more trading through tax incentives, deepening of Islamic finance and other non-interest products,  development of bond market, reduction of the average costs of issuing equity and debt securities, relaxation of complex legal, regulatory and listing requirements and greater use of simple and innovative technology, among others.

    ASHON Chairman,  Chief Patrick Ezeagu said the association was committed to activities aimed at ensuring that every citizen participates in the financial industry and enjoys its benefits.

    “The Association has been engaging in various advocacy initiatives in line with our objectives. We recognise that the world is fast undergoing some evolution, especially in the way of doing things, which is being propelled by the fast pace of technological innovations. The recognition of the retail investor and expansion of the scope of our business to the hinterlands are key to stimulation and sustainable growth of the capital market. We believe that we should work in tandem with all regulatory institutions to promote financial inclusion,” Ezeagu said.

    According to him, ASHON decided to make a slight change in its nomenclature to Association of Securities Dealing Houses of Nigeria, with a new logo as brand identity, to reflect the expanded scope of the members’ operations.

    He also noted that some eminent Nigerians presented with awards were those recognised for outstanding contributions to the growth and development of the market.

    The panelists, who spoke on the perspective of the capital market on financial inclusion, underscored the need for financial literacy for all categories of investors, strong advocacy for the market in the government institutions, introduction of simple and affordable market products and deployment of simple technologies.

    They included Nigerian Stock Exchange’s (NSE) Chief Executive Officer, Mr Oscar Onyema; NASD Plc Chief Executive Officer, Mr Bola Ajomale; Director-General, Debt Management Office, Mrs Patience Oniha; Central Securities Clearing System (CSCS) Limited Managing Director and Chief Executive Officer, Mr Haruna Jalo-Waziri and former Chairman, Nigerian Economic Summit Group (NESG), Alhaji Bukar Kyari, while the Vice Chairman, Capital Bancorp Plc, Mr Tola Mobolurin was the Moderator.

     

  • UBA:Beyond the current value

    With a double-digit dividend yield, United Bank for Africa (UBA) Plc is one of the leading first-tier companies in terms of returns on investment. Steady growth in key performance indices over the years brings the bank under close scrutiny. Will it surpass the previous milestone? Capital Market Editor Taofik Salako reports that most analysts share the optimism of the bank’s board and management on its future

    United Bank for Africa (UBA) Plc has been one of the most active stocks at the stock market this earnings season. Last week, UBA was one of the three most active stocks, in terms of turnover volume. The release of the audited report and accounts and the final dividend of the bank for the year ended December 31, 2018 appeared to have quickened investors’ appetite for the leading first-generation bank. With a generally steady performance, the board of directors has recommended a final dividend per share of 65 kobo, bringing total dividend per share for the 2018 business year to 85 kobo. At current market price, this translates to a dividend yield of more than 11 per cent, an attractive return by analysts’ consensus. Locking in a double digit dividend yield and holding on for a build-on on the modest current positive capital gain appeared to be the impetus for investors’ activities in UBA. Many analysts, such as Afrinvest Securities which has placed a buy on the bank, agree with the strategy.

     

    Steady growth

    Key extracts of the audited report and accounts showed modest growths across key performance indicators, despite the industry-wide contraction noticeable in banks’ earnings so far. UBA Group’s gross earnings grew by 7.0 per cent to N494.0 billion in 2018 compared with N461.6 billion in 2017. The top-line performance was boosted by appreciable growth in interest income, which rose by 11.4 per cent to N362.9 billion in 2018. Profit before tax rose by 2.4 per cent from N104.2 billion to N106.8 billion. After taxes, net profit inched up by 1.4 per cent to N78.6 billion in 2018 compared with N77.5 billion in 2017. Due to lower foreign exchange trading income, operating expenses had grown by 4.1 per cent to N197.3 billion in 2018 as against N189.7 billion in 2017.

    The bank’s balance sheet was stronger with 19.7 per cent growth in total assets to a record N4.9 trillion in 2018.Reflecting the modest appetite of the bank in the year under review as well as impact of International Financial Reporting Standards 9 (IFRS 9) implementation, net loans rose marginally by 3.9 per cent growth to N1.72 trillion while customer deposits increased by 22.5 per cent to N3.3 trillion in 2018, as against N2.7 trillion recorded in 2017. With these, loan to deposit ratio dropped from 61 per cent to 51 per cent. Shareholders’ funds declined marginally by 4.8 per cent to N502.6 billion, reflecting the impact of IFRS 9 implementation.

    Underlying financial ratios showed improved risk management and stronger operational outlook. Non-performing loans ratio improved from 6.7 per cent in 2017 to 6.5 per cent in 2018. With lower impairment charges due to improving asset quality, the bank’s cost risk improved considerably to 0.3 per cent. Despite the impact of the IFRS 9 implementation, capital adequacy still improved by two percentage points from 22.0 per cent to 24.0 per cent. Liquidity ratio stood at 50 per cent in 2018 as against 40 per cent in 2017, remaining considerably above the regulatory threshold of 30.0 per cent.

     

    Facts behind the figures

    The bank said the 2018 results showed the increasing benefits of the group’s Pan-African footprints as it continued to grow its market share in key countries of operation across Africa. The contributions of other African subsidiaries, excluding its Nigerian home market, stood at 40 per cent during the period, again confirming the strong footing of the group as a Pan-African franchise. With new operations in Mali and London, United Kingdom, directors of the bank believe its spread-and-quality strategy is the much-needed base for sustained growth.

    Group Managing Director, United Bank for Africa (UBA) Plc, Mr. Kennedy Uzoka, said the bank gained further market share in many countries of operation as it seeks to leverage its Pan-African network with the opening of its 20th African operation. The start of wholesale banking operations in London is expected to complement the mix, with the group’s commercial banking franchise.

    “Our operations in the United Kingdom now offer end-to-end trade, treasury, structured finance, wholesale deposit taking and ancillary services. With this development, we are better positioned to fulfill our aspiration of deepening trade and capital flows between Europe and Africa. We are also pleased with the market acceptance of our new operation in Mali,” Uzoka said.

    According to him, the bank’s Nigerian business is benefiting from product and operational focus, gaining market share – most importantly, the increasing penetration of its retail offerings, a fundamental progress that aligns with its strategy of focusing on sustainable growth.

    Uzoka remained confident that the bank’s performance would be even stronger in the years ahead and shareholders would enjoy even greater dividends, as the group is well positioned to take advantage of imminent fiscal reforms across many economies in Africa, a positive outlook which should stimulate new opportunities in infrastructure, manufacturing, agriculture and resource sectors.

    He noted that the bank has instituted a number of enhanced risk management and control framework which have in no small measure contributed to its financial performances and overall balance sheet growth over the years.

    According to him, UBA’s well diversified asset book supported by stable funding structure, placed it in a premium position to perform remarkably despite the falling economic indices in its operating environment.

    Group Chief Financial Officer, United Bank for Africa (UBA) Plc, Ugo Nwaghodoh noted that the improving mix of the bank’s funding base and asset pricing reinforces a positive outlook on net interest margin and broader balance sheet efficiency.

    “Whilst considerable investment in people, digital transformation and channel enhancement masked cost efficiency gains within the year, with cost-to-income ratio at 64 percent, we are convinced that our diligent execution of new initiatives will ensure the reduction of cost to income ratio (CIR) towards our medium-term target. Our balance sheet is being positioned to take full advantage of market swings and our strong 25 per cent capital adequacy ratio provides headroom for growth, even under a BASEL III scenario,” Nwaghodoh said.

    According to Nwaghodoh, UBA has started 2019 on a good note and should sustain the momentum, as it works towards improving its Return on Average Equity (RoAE).

     

    Analysts’ perspectives

    With a positive year-to-date share appreciation of 1.30 per cent as against the negative average yield of -1.24 per cent indicated by the Nigerian Stock Exchange (NSE) at the close of the stock market on Monday, most analysts see UBA with stronger capital gain in the months ahead. Analysts believed the 2018 results showed a stronger base for future capital appreciation.

    “The group is well positioned to expand earnings by 12.8 per cent to N525.1 billion in 2019.  Loan growth is expected to expand by double-digit based on management’s guidance while investment securities would remain attractive. Non-interest income is expected to return to positive territory, as the group reaps gains from prior investment and efforts in fourth quarter 2018. We also expect improved cost efficiency as cost of risk is contained around 1.0 per cent and cost to income around 60.0 per cent,” Afrinvest Securities stated in its latest earnings analysis.

    With a blend of absolute valuation including Gordon’s growth Net Asset Value, Residual income and dividend discount models, analysts at Afrinvest Securities increased their target price for UBA from N12.90 to N13.09. “This translates to an upside potential of 67.8 per cent; hence we maintain our rating on UBA at “BUY”,” Afrinvest stated.

     

    Beyond the current value

    The board and management of the bank believed that its foray into key markets and economies remain a milestone that will catapult the institution in the coming years. “UBA is a unique pan-African franchise with diversified risk and earnings across fast growing African economies with sound governance, risk management and compliance culture which can be seen from our adherence to international best practice. Our robust digital banking platform through which we are leveraging technology to serve over 15 million customers is a cost efficient approach that has helped to deepen African banking penetration,” Uzoka told investors during an international investors’ call conference.

    According to him, the bank has the strong financial capacity backed by high capitalisation and strong liquidity, while it continues to work towards connecting Africa and the world through its presence in key African markets and major global financial centres such as New York, London and Paris.

    “With great optimism, we look forward to a more rewarding 2019 for our shareholders, as we further sweat our resources and optimize productivity towards delivering superior returns,” Uzoka said. Investors and market pundits appear to share this optimism.

     

  • Electronic offerings to use USSD, mobile devices

    The Securities and Exchange Commission (SEC) has released draft guidelines for transition to electronic offering of shares and other securities in the  capital market.

    Electronic offering (e-O) is the use of internet or other electronic means, including mobile or Unstructured Supplementary Service Data (USSD) platforms to provide access to prospectuses, offering memoranda, subscription forms and other documentation for the subscription to securities and related documentation as well as payment for such subscription.

    Electronic offering will be done on a platform purposely established by an eligible service provider registered with SEC.

    In a circular, SEC said the electronic offering platform will translate the current paper-based process of securities offerings into electronic form through electronic display of offer documents, subscription and payment through a combination of web portals, mobile applications, USSD and other electronic means.

    Under the electronic initial public offering (e-IPO) and other electronic public offers, investors will be able to get allotment and value for their subscriptions within few days as against the current cycle of nearly four months.

    The full automation of primary issuance will involve automation of the process, approval, documentation, subscription and allotment of all issues, especially IPOs and public offers. With this, investors will be able to subscribe and make payment for IPOs and public offers online with such orders being matched and allotted electronically and directly to the investment accounts of the investors at the Central Securities and Clearing System (CSCS) and any other designated clearing centre.

    The full automation will enable the primary market to operate within a designated transaction cycle, possibly within the T+3 four-day trading cycle being operated at the secondary market.

    According to the draft guideline, the e-Offering platform shall give subscribers access to general information regarding the offer, the application input screen, download, view and print the offer documents, provide for electronic online payment options, which shall be seamlessly integrated with the e-offering platform, allow integration with identity management systems such as Bank Verification Number (BVN) database for the purpose of Know Your Customer verification and integrate with the depositor to enable electronic crediting of approved allotments to subscribers’ depository accounts.

    The platform shall also permit subscribers to select a broker of their choice for the purpose of the electronic crediting of the approved allotment, while providing mandatory information fields for subscribers to supply surname and other names, full company name and registration number, BVN or any other SEC-approved biometric numbering system, bank name and account numbers of subscribers and mobile telephone number and email address.

    The platform is also expected to provide for the upload of provisional rights allocation for rights issues by the relevant registrar to the issue.

    In order to strengthen investors’ protection, the e-O platform must mandatorily require subscribers and end-users to confirm that the subscriber has been provided with sufficient opportunity to access the offer documents and the information disclosed therein and that the information provided by the subscriber is to the best of the applicant’s knowledge, true and accurate in all material respects before submitting the application.

    The e-O platform will also permit subscribers to print a copy of the relevant application screen or page containing the details of information submitted by the subscriber.

    The e-O platform is also expected to provide instructions and information for subscribers outlining the procedures and any requirements subscribers shall comply with in order to use the platform as well as the process and procedure a subscriber shall follow to make a valid application.

     

  • OK Foods unveils brand ambassador

    OK Foods Limited has named Mr Folarin ‘Falz’ Falana as the brand ambassador for its new menthol flavoured candy, Topmint.

    OK Foods Limited, a leading player in the confectionery and biscuits business in Nigeria for many years, recently launched the new menthol flavoured candy with “Topmint” as the brand name .

    Its Managing Director, Mr. Murali Krishnan, who spoke at the official signing ceremony at the Radisson Blu Hotel, Ikeja, Lagos, said Topmint candy is a winning product that has been tested amongst consumers and rated higher on parameters such as taste, size and mint strength when compared to other mint brands available in the Nigerian market.

    According to him, Topmint candy’s taste delivers on its promise of being a strong menthol candy. The product, when checked with consumers, has been attested to as superior, with unique packaging that makes it stand out on the shelves.

    He added that the company is very positive that the chosen brand ambassador will help drive brand awareness and association with core consumers.

    He said Falz’s personality and style resonates with what the Topmint brand is about – stay sharp – a campaign that the brand recently ran on social media, attracting attention from a large number of Falz’s followers and social media savvy community.

    Commenting on his appointment, Falana, popularly known as FalzTheBahdGuy, said he shares the same ideals of sharp, witty, smart and creativity with the brand essence of Topmint candy.

    “I love the idea of being sharp, witty, smart and creative. That’s what I always strive to be with everything that I do. I am excited about this and I am positive that the collaboration between Topmint candy and my brand will produce amazing results,” Falana said.

    OK Foods Limited is well known for some of its key brands such as OK POP and Chic Choc, among others.

  • SEC seeks amendment to capital market rules

    Securities and Exchange Commission (SEC) is considering  amendments to capital market rules and regulations’ that will empower it to suspend any public company that fails to submit its annual report within stipulated deadline.

    According to a draft amendment obtained by The Nation, the Commission is seeking to introduce a new rule, which will allow it to direct that trading on the shares of a company that fails to submit its annual report be suspended. The draft rule also empowers the Commission to “impose any other sanction as it deems fit”.

    “Suspension of trading may also apply where a company has been granted an extension, but fails to file at the expiration of the extension period,” according to the draft rule.

    The amendment further strengthens existing enforcement regime on submission of annual reports.  Under existing rules, any company that fails to file its annual report with the Commission is liable to a fine of N1 million and the sum of N25, 000 for every day the default continues.

    However, the draft rules allow any public company that fears it may not be able to meet the stipulated deadline to apply for extension of time to file its audited report, with such application for extension not later than 30 days before the due date. Such application for extension shall state the reasons for the inability to file within time and shall be supported with relevant documentary evidence.

    In granting the application for extension, the Commission may consider occurrence of an unforeseen circumstance, national emergency and intervention by a regulatory agency.

    According to the new draft, a public company whose application has been granted for extension of time to file its audited financial statements shall be required to publish a notification of its failure to file on the due date in a national newspaper and on the company’s website.

    The Commission noted that despite its zero-tolerance for late and non-filing of financial statements and annual reports by public companies, it is mindful that certain unforeseen circumstances may warrant the granting of time extension to a public company to file same.

    SEC, however, reiterated its commitment to take appropriate action by imposing sanctions that could include suspension of the trading of the shares of a public company whose financials are not released to the investing public as at when due.

    The draft amendments align SEC’s rules with existing rules at the Nigerian Stock Exchange (NSE), in furtherance to the ongoing efforts to standardise the rules across the markets.

    Under the existing rules, public limited liability companies are required to file their annual reports with the Commission not later than 90 days after the financial year end in line with the provisions of Companies and Allied Matters Act (CAMA).

    The annual report to be filed with the Commission shall in all material facts comply with the relevant accounting standard. It shall also make disclosures of its unclaimed dividend fund with respect to bank balance, investments and earned income by way of notes to the audited accounts and other periodic reports filed with the Commission.

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    The chief executive officer and chief financial officer or officers or persons performing similar functions in a public company, shall, in filing the annual account, attach a duly signed certification letter to the matters  while the external auditor to the public company shall be registered by the Commission.

    The auditor of a public company shall in his audit report to the company issue a statement as to the existence, adequacy and effectiveness or otherwise of the internal control system of the company, while the annual report shall state the level of compliance of the public company with the Code of Corporate Governance for public companies.