The Nation Newspaper

Tag: Afromedia

  • Afromedia records N1.78b loss on N494.4m turnover

    Afromedia Plc recorded a net loss of N1.78 billion on a turnover of N494.4 million in 2017, continuing a losing streak that had marked the operations of the media and communications company.

    Key extracts of the audited report and accounts of Afromedia Plc for the year ended September 30, 2017 showed that the company recorded total income of N494.41 million in 2017 as against N407.25 million in 2016. However, loss before tax stood at N1.776 billion in 2017 compared with N2.745 billion in 2016. After taxes, net loss stood at N1.782 billion in 2017 as against N2.751 billion in 2016. With this, loss per share stood at 40 kobo in 2017 as against 62 kobo in 2016.

    The Nigerian Stock Exchange (NSE) had two weeks ago placed a full suspension on trading in the shares of Afromedia, a precautionary order usually place on companies on regulatory watch-list for further sanctions or possible delisting.

    In a circular obtained by The Nation, the Exchange indicated that it took the decision to suspend trading on Afromedia after the company failed to submit its corporate earnings reports as required by the listing requirements at the secondary market.

    Rule 3.1 of the Rulebook of the Exchange-Rules for Filing of Accounts and Treatment of Default Filing, states that if a company fails to file the relevant accounts by the expiration of the cure period, the Exchange will send a second filing deficiency notification to the company within two business days after the end of the cure period and immediately suspend trading in the company’s shares.

    “In accordance with the rules set forth above, the suspension of the afore-listed company will only be lifted upon the submission of the relevant accounts, provided the Exchange is satisfied that the accounts comply with all applicable rules of the Exchange,” the circular stated.

    Incorporated in 1959 and listed on the NSE in 2009, the Afromedia Group consists of five subsidiaries and associated companies. These include Afromedia Gambia Limited, Afromedia Africa Propriety Limited, Optmedia Limited, Outdoor Exchange West Africa Limited and Independent Poster Care Limited.

     

  • Afromedia records N1.78b loss on N494.4m turnover

    Afromedia Plc recorded a net loss of N1.78 billion on a turnover of N494.4 million in 2017, continuing a losing streak that had marked the operations of the media and communications company.

    Key extracts of the audited report and accounts of the company for the year ended September 30, 2017 showed that it recorded total income of N494.41 million in 2017 as against N407.25 million in 2016. However, loss before tax stood at N1.776 billion in 2017 compared with N2.745 billion in 2016. After taxes net loss stood at N1.782 billion in 2017 as against N2.751 billion in 2016. With this, loss per share stood at 40 kobo in 2017 as against 62 kobo in 2016.

    The Nigerian Stock Exchange (NSE) had last week placed a full suspension on trading in the shares of Afromedia, a precautionary order usually place on companies on regulatory watch-list for further sanctions or possible delisting.

    In a circular obtained by The Nation, the Exchange indicated that it took the decision to suspend trading on Afromedia after the company failed to submit its corporate earnings reports as required by the listing requirements at the secondary market.

    Rule 3.1 of the Rulebook of the Exchange-Rules for Filing of Accounts and Treatment of Default Filing, states that if a company fails to file the relevant accounts by the expiration of the cure period, the Exchange will send a second filing deficiency notification to the company within two business days after the end of the cure period and immediately suspend trading in the company’s shares.

    “In accordance with the rules set forth above, the suspension of the afore-listed company will only be lifted upon the submission of the relevant accounts, provided the Exchange is satisfied that the accounts comply with all applicable rules of the Exchange,” the circular stated.

    Incorporated in 1959 and listed on the NSE in 2009, the Afromedia Group consists of five subsidiaries and associated companies. These include Afromedia Gambia Limited, Afromedia Africa Propriety Limited, Optmedia Limited, Outdoor Exchange West Africa Limited and Independent Poster Care Limited.

     

  • Afromedia assures shareholders of bright future

    THE Board and management of Afromedia Plc, Nigeria’s leading supplier of out-of-home media services, have assured shareholders that the company was on the way to full recovery and profitability. It promised a revolutionary business approach, which included a return to the Airport and other new innovative products to be unveiled shortly.

    This was the highpoint of the company’s 48th Annual General Meeting (AGM) in Lagos at the weekend where a net loss before tax of N851 million was announced for the 2013 financial year which ended September 30, last year, a remarkable improvement of 81 per cent against the deficit of N4.47 billion in the previous financial year.

    According to its Chairman, Mr. Idowu Iluyomade, the company recorded a turnover of N742.9 million in the financial year that ended on September 30, 2013, as against N1.64 billion turnover in the corresponding period the previous year, a decline of 54.8 per cent.

    He explained that the turbulence that hit the company in 2012 as a result of the protracted remodelling of federal airports nationwide contributed largely to the poor fortunes. The consequence was that the company experienced continuous adverse disruptions of its operation at all its major and exclusive airport advertising concession sites as a result of the infrastructural upgrade by the Federal Airport Authority of Nigeria (FAAN).

    In the words of Mr Iluyomade, “’the company was virtually incapacitated by this adverse regulatory development as no business could be executed in any of the Federal airports pan-Nigeria in year 2013. This resulted in loss of over 75 per cent of the company’s installed revenue generating capacity.

    ‘’Although the Board and Management of the company explored all available options towards resolution of the impediments in this strategic transit business segment, the year passed without achieving the much-desired restoration of the advertising sites. This significant lost revenue generating capacity accounted principally for the low turnover in the year under review.”

    In addition to that drawback, the  chairman said the prevailing insurgency and insecurity in some parts of the northern region of the local economy, truncated business plans for generating revenue with available billboards of the company in the affected region.

    Iluyomade explained that the major game changer was the full adoption of International Financial Reporting Standards (IFRS) in the 2013 financial year.

    According to him, the impact was the mandatory adjustments and write-offs of balances permitted in the previous local standards but disallowed under the IFRS, “thereby contributing to the negative bottom line position in 2013 in compliance with the IFRS accounting system”.

    IFRS account system mandatorily required to write-off and provide for all the accumulated pre-structural investments made by the company over the years under the business expansion initiatives, but which were suspended until it becomes economically and technically feasible to activate them.

    Assuring shareholders that the company would soon return to the years of profitability, the Managing Director, Mr. Akinola Irewunmi Olopade said that Afromedia had not only returned to the airports but have a five-year contract with FAAN. As a result of Afromedia’s return to the airports, that all pre-existing clients have indicated interest in having their adverts exposed at the airports, he announced to cheering shareholders.

    The shareholders empathised with their company and commended the Board for charting a clear way out of the current challenge.

    Mr Alex Adio, a patron of Dynamic Shareholders Association, said the shareholders knew the genesis of the situation and were confident that the new Board was on a new pedestal. “With the new directors coming on board, we believe that things will change for the better,” Adio said.

    The shareholders ratified appointment of new directors – Mr Idowu Iluyomade (Chairman), Mr Victor Ogiemwonyi, Mr Ernest Chukwudi Ebi and Mallam Ibrahim Isiyaku – all non-executive directors.

    The firm of Ernst & Young was also re-appointed as External Auditors while Mr. Meshach Masade and Mrs Elizabeth Gbegbaje were re-elected into the Audit Committee.

  • Afromedia makes N742.9m turnover

    Afromedia Plc has recorded a turnover of N742.9 million in the financial year ended September 30, 2013, as against the N1.64 billion turnover in the corresponding period of 2012,  its Chairman, Idowu Iluyomade, has said. The figure represented a decline of 54.8 per cent over the corresponding period.

    Iluyomade, who spoke at the company’s 48th Annual General Meeting (AGM), said the firm recorded a net loss before tax of N851 million for the period under review, which is a remarkable improvement of 81 per cent against the deficit of N4.47 billion it recorded in the previous financial year.

    He said the turbulence that hit the company in 2012 as a result of the protracted remodelling of federal airports nationwide, contributed largely to the poor fortunes of the firm, adding that the consequence was that it experienced continuous adverse disruptions of its operation at all its major and exclusive airport advertising concession sites as a result of the infrastructural upgrade by the Federal Airport Authority of Nigeria (FAAN).

    “’The company was virtually incapacitated by this adverse regulatory development, as no business could be executed in any of the federal airports pan-Nigeria in year 2013. This resulted in loss of over 75 per cent of the company’s installed revenue generating capacity,” he said, adding that although its board and management “explored all available options towards the resolution of the impediments in this strategic transit business segment, the year passed without achieving the much-desired restoration of the advertising sites. This significant lost revenue generating capacity accounted principally for the low turnover in the year under review.”

     

    Iluyomade explained that the major game changer was the full adoption of International Financial Reporting Standards (IFRS) in the 2013 financial year, saying the impact was the mandatory adjustments and write-offs of balances permitted in the previous local standards, but disallowed under the IFRS, “thereby contributing to the negative bottom line position in 2013 in compliance with the IFRS accounting system.”

     

    IFRS account system mandatorily required to write-off and provide for all the accumulated pre-structural investments made by the company over the years under the business expansion initiatives, but which were suspended until it becomes economically and technically feasible to activate them.

     

    The Managing Director, Akinola Irewunmi Olopade, assured that Afromedia has not only returned to the airports, but that it has a five-year contract with FAAN, stating that all pre-existing clients have indicated interest in having their adverts exposed at the airports.