Caverton Offshore Support Group Plc has retained Mr. Aderemi Makanjuola as its Chairman.
The company’s shareholders took the decision at their 12th Annual General Meeting (AGM) in Lagos.
Two other directors – Bashiru Bakare and Mallam Bello Gwandu – also have their tenure renewed on the company’s board.
The shareholders named PriceWaterHouseCoopers as new external auditor to replace Ernst and Young (EY) which retired at the AGM.
Leaders of five shareholders’ groups that represented the shareholders praised the Caverton board and management for offering them a 10 kobo per share dividend for the last financial year.
They attributed the largesse to the company’s dividend policy.
One of the shareholders, Chief Sunny Nwosu, said the company has a future going by the magnitude of its investments at the airports.
“Shareholders appreciate what you are doing meanwhile we need more dividends,” he said.
Boniface Okezie, who spoke for the Progressives Shareholders Association, also lauded the company, noting: “This is not too bad a result and dividend considering the impact of COVID-19 on the industry in 2020.”
Makanjuola explained that the 10 kobo per 50k ordinary share offer was paid against internal auditors’ advice that five kobo be paid and retain the remaining cash to grow the company.
He said: “In view of our policy to grow shareholders’ value and returns, despite the impact of the COVD-19 pandemic on the Group’s overall performance, the Board of Directors of your company is pleased to recommend for your approval of a dividend of 10k per 50k ordinary share in respect of the 2020 financial year.”
Acknowledging the impact of the pandemic on the aviation industry and on Caverton’s financial performance, the chairman said: “Like other business operations in Nigeria, our Company had to battle with the lockdowns and travel restrictions due to the COVID-19 pandemic which resulted to exceptionally low business activities during the year thus, affected our operating bottom-line.”
During the period under review, the total assets of the Company grew from N65.8 billion in 2019 to N67.5 billion, representing an increase of 2.6 percent
Its revenue decreased by eight per cent from N34.98 billion in 2019 to N32.2billion in 2020 and the gross profit also dropped to N13.58 billion during the reriod under review by eight per cent from N14.7 billion in 2019.
The Profit Before Tax (PBT) dropped by 83 per cent from N7.24 billion in 2019 to N1.26 billion and Profit After Tax (PAT) dropped by 73 per cent to N1.18 billion from N4.38 billion in 2019.
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