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Tag: Portland Paints

  • Portland Paints outlines growth plan

    Portland Paints and Products Nigeria (PPPN) Plc yesterday assured shareholders that it would consolidate its growth by implementing strategic initiatives that will boost performance in the new business year.

    At the annual general meeting in Lagos, Chairman, Portland Paints and Products Nigeria (PPPN) Plc, Mr. Larry Ettah, said the company proactively worked on cost reduction and optimization in all areas of its operations to ensure sustainable growth and value creation for stakeholders.

    He said the company will now focus on consolidation of all the initiatives that it launched in 2016 while implementing new strategic initiatives to drive growth in the new business year.

    “In 2017,  your company will focus on further consolidating on the initiatives we started in 2016, expand our distribution network and improve our brand visibility to ensure we deliver on our corporate objectives,” Ettah said.

    He pointed out that the company had recently concluded a new capital raising under which the company was able to raise two-thirds of the offer size.

    According to him, Portland Paints and Products Nigeria will continue to focus on its restructuring push to drive further growth and enable it deliver better value to all stakeholders.

    He noted that the company has started witnessing a turnaround as it reversed a loss of N232.98 million posted in 2015 with a modest profit after tax of N8.6 million in 2016. Turnover however dropped marginally by 9.0 per cent from N2.17 billion in 2015 to N1.97 billion in 2016.

    Portland Paints recently raised about N668.8 million in new equity funds from its recent shares issue. PPPN had in the first quarter of this year launched a rights issue to raise N1.02 billion from existing shareholders through a rights issue of 600 million ordinary shares of 50 kobo each at N1.70 per share. The provisional allotment for the rights issue was on the basis of three new ordinary shares for one ordinary share.

    Regulatory documents showed that a total of 393.42 million shares were validly accepted at N1.70 per share, totaling N668.8 million. The supplementary shares have been listed at the Nigerian Stock Exchange.

    The net proceeds from the rights issue would be used to restructure the company’s balance sheet and support its business expansion programme.

    In June 2013, UAC of Nigeria (UACN) Plc, Nigeria’s largest conglomerate, acquired the majority equity stake of 51 per cent in Portland Paints.

  • Portland Paints opens application for N1b rights issue

    Portland Paints and Products Nigeria (PPPN) Plc has opened application list for its N1 billion rights issue, paving the way for shareholders of the paints and chemical company to pick up their rights.
    PPPN is raising N1.02 billion through a rights issue of 600 million ordinary shares of 50 kobo each at N1.70 per share. The provisional allotment for the rights issue is on the basis of three new ordinary shares for one ordinary share.
    The application list will close on Wednesday, March 1, 2017.
    Chairman, Portland Paints and Products Nigeria (PPPN) Plc, Mr. Larry Ettah has said the new equity funds would be used to restructure the company’s balance sheet and support its business expansion programme.
    “We will apply the planned rights proceeds to minimise the debt exposure risks of our business as well as carry out targeted expansion in our operations. The business will focus on its growth brands as well as make the necessary investment in marketing to improve its brands’ awareness and visibility,” Ettah said.
    He said the company had embarked on intensive restructuring of its operations in order to strengthen it against challenges that had negatively impacted its operations.
    Ettah explained that PPPN embarked on restructuring as a result of the difficult and challenging economic and business environment.
    He however noted that despite the challenges and risks posed by the business environment, the company with its flagship brand Sandtex, will continue to consolidate on the restructuring while seeking growth opportunities to deliver returns to the shareholders.
    In June 2013, UAC of Nigeria (UACN) Plc, Nigeria’s largest conglomerate, acquired the majority equity stake of 51 per cent in Portland Paints. Following the acquisition, the board and management of the company were reconstituted. Mr. Larry Ettah, who leads the management at UACN, became the chairman.

  • Portland Paints to raise N1b fresh equity funds from shareholders

    Portland Paints and Products Nigeria (PPPN) PLC has secured the approval of the Nigerian Stock Exchange (NSE) to raise more than N1 billion in new equity funds in its bid to expand its business.

    A regulatory document at the Exchange obtained by The Nation indicated that the Quotation Committee of the Exchange, which oversees new and supplementary issuance and listing, has approved the application submitted by the board of directors of PPPN and its professional advisers.

    PPPN would be raising N1.02 billion through a rights issue of 600 million ordinary shares of 50 kobo each at N1.70 per share. The provisional allotment for the rights issue is on the basis of three new ordinary shares for one ordinary share.

    The rights issue price of N1.70 represents a discount of 5.5 per cent to the market value of N1.80 per share at the NSE.

    The Nation had earlier reported the move by the board of PPPN to raise new equity funds.

    Chairman, Portland Paints and Products Nigeria (PPPN) PLC, Mr. Larry Ettah had said the new equity funds would be used to restructure the company’s balance sheet and support its business expansion programme.

    “We will apply the planned rights proceeds to minimise the debt exposure risks of our business as well as carry out targeted expansion in our operations. The business will focus on its growth brands as well as make the necessary investment in marketing to improve its brands’ awareness and visibility,” Ettah said.

    He said the company had embarked on intensive restructuring of its operations in order to strengthen it against challenges that had negatively impacted its operations.

    Ettah explained that PPPN embarked on restructuring as a result of the difficult and challenging economic and business environment.

    He, however, noted that despite the challenges and risks posed by the business environment, the company with its flagship brand Sandtex, will continue to consolidate on the restructuring while seeking growth opportunities to deliver returns to the shareholders.

    Key extracts of the audited report and accounts of the company for the year ended December 31, 2015 showed that turnover dropped to N2.17 billion, 23 per cent lower when compared to the N2.8 billion in 2014. It recorded loss after tax of N233 million in 2015 as against N148.6 million recorded in 2014.

    PPPN- purveyor of the Sandtex brand of paints; was for several years a division of West African Portland Cement (Wapco) PLC, now Lafarge Africa PLC. With the division performing creditably well as a going concern, Wapco initiated the registration of the division as a limited liability company in 1985.

    Portland Paints became a publicly quoted company in July 2009. One of the most diversified paints manufacturing companies in Nigeria, Portland Paints manufactures and markets decorative, automotive, industrial and marine paints. It also holds sole agency for world-renowned sanitary brands, including Armitage Shank, Ideal Standard and Jaquar.

    In June 2013, UAC of Nigeria (UACN) PLC, Nigeria’s largest conglomerate, acquired the majority equity stake of 51 per cent in Portland Paints. Following the acquisition, the board and management of the company were reconstituted. Ettah, who leads the management at UACN, became the chairman.

  • UACN launches mandatory takeover for Portland Paints

    UAC of Nigeria (UACN) Plc is launching a mandatory takeover bid to acquire additional equity stake in Portland Paints and Products Nigeria (PPPN) Plc.

    In June 2013, UAC of Nigeria (UACN) PLC, Nigeria’s largest conglomerate, had acquired the majority equity stake of 51 per cent in Portland Paints. Following the acquisition, the board and management of the company were reconstituted. Mr. Larry Ettah, who leads the management at UACN, became the chairman.

    In a regulatory filing at the weekend, UACN indicated that it will be launching a mandatory takeover of up to two million ordinary shares of 50 Kobo each in PPPN at N4.47 Kobo per share. The takeover price represents a premium of 224 per cent on PPPN’s market price of N1.38 at the Nigerian Stock Exchange (NSE).

    The qualification date for the transaction is Wednesday November 16, 2016, the date qualifying shareholders of PPPN will be determined.

    According to the report, qualifying shareholders are the shareholders of PPPN other than UACN whose names appear in the register of members of PPPN as at the qualification date and who are eligible to receive the takeover bid document.

    Ettah recently indicated that PPPN plans to raise new equity funds from existing shareholders to restructure its balance sheet and support its business expansion programme.

    Addressing shareholders, Ettah said the company had embarked on intensive restructuring of its operations in order to strengthen it against challenges that negatively impacted its operations in 2015.

    Ettah explained that PPPN embarked on restructuring as a result of the difficult and challenging economic and business environment in 2015.

    According to him, during the year, the company commenced a process of restructuring the business focusing on internal efficiencies and reviewing its route to market model in a bid to ensure that it builds a sustainable future for the business.

    “We will apply the planned rights proceeds to minimize the debt exposure risks of our business as well as carry out targeted expansion in our operations. The business will focus on its growth brands as well as make the necessary investment in marketing to improve its brands’ awareness and visibility,” Ettah said.

    He however noted that despite the challenges and risks posed by the business environment, the company with its flagship brand Sandtex, will continue to consolidate on the restructuring while seeking growth opportunities to deliver returns to the shareholders.

    Key extracts of the audited report and accounts of the company for the year ended December 31, 2015 showed that turnover dropped to N2.17 billion, 23 per cent lower when compared to the N2.8 billion in 2014. It recorded loss after tax of N233 million in 2015 as against N148.6 million recorded in 2014.

    PPPN- purveyor of the Sandtex brand of paints; was for several years a division of West African Portland Cement (Wapco) PLC, now Lafarge Cement Wapco Nigeria. With the division performing creditably well as a going concern, Wapco initiated the registration of the division as a limited liability company in 1985. Portland Paints became a publicly quoted company in July 2009. One of the most diversified paints manufacturing companies in Nigeria, Portland Paints manufactures and markets decorative, automotive, industrial and marine paints. It also holds sole agency for world-renowned sanitary brands including Armitage Shank, Ideal Standard and Jaquar.

     

     

  • Portland Paints to raise N2b from shareholders

    Portland Paints and Products Nigeria (PPPN) Plc has launched a new capital issue process aimed at raising N1.98 billion new equity funds from existing shareholders.

    A regulatory filing at the NSE indicated that PPPN, a subsidiary of UAC of Nigeria (UACN) Plc, plans to issue 600 million ordinary shares of 50 kobo each to existing shareholders at N3.30 per share. The rights’ shares will be allotted on the basis of three new ordinary shares for every two ordinary shares held as at the close of business on February 9, 2016.

    Shareholders of the company had at the annual general meeting last year approved the rights issue as part of efforts to deleverage the company and enhance its production capacity.

    Chairman, Portland Paints and Products Nigeria (PPPN) Plc, Mr. Larry Ettah, said the net proceeds from the rights issue would be used to reduce existing loans from banks and also to improve plants and equipment of the company.

    According to him, as the company makes efforts to improve returns, there is need to address the high leverage position of the company in addition to implementation of other business expansion plans.

    “We want to improve the way we run this company. If plants and equipments are running well, the cost of sale will reduce and we will be able to pay dividend next year. We already borrowed about N700 million and we intend to raise money to reduce our burden,” Ettah said.

    He said that the company is being repositioned for improved performance noting that the company is currently realigning its portfolio and making strategic shifts where necessary while continuing to focus on innovation and seek opportunities to introduce new offerings into its portfolio of brands.

    Key extracts of the audited report and accounts for the year ended December 31, 2014 showed that profit after tax rose by 159 per cent from N57.3 million in 2013 to N148.6 million in 2014. Operational profit also grew from N174.3 million in 2013 to N304.5 million.

  • Portland Paints to raise N2b from shareholders

    Portland Paints and Products Nigeria (PPPN) Plc has launched a new capital issue process aimed at raising N1.98 billion new equity funds from existing shareholders.

    A regulatory filing at the weekend indicated that PPPN, a subsidiary of UAC of Nigeria (UACN) Plc, plans to issue 600 million ordinary shares of 50 kobo each to existing shareholders at N3.30 per share. The rights’ shares will be allotted on the basis of three new ordinary shares for every two ordinary shares held as at the close of business on February 9, 2016.

    Shareholders of the company had at the annual general meeting last year approved the rights issue as part of efforts to deleverage the company and enhance its production capacity.

    Chairman, Portland Paints and Products Nigeria (PPPN) Plc, Mr. Larry Ettah, said the net proceeds from the rights issue would be used to reduce existing loans from banks and also to improve plants and equipment of the company.

    According to him, as the company makes efforts to improve returns, there is need to address the high leverage position of the company in addition to implementation of other business expansion plans.

    “We want to improve the way we run this company. If plants and equipments are running well, the cost of sale will reduce and we will be able to pay dividend next year.

    We already borrowed about N700 million and we intend to raise money to reduce our burden,” Ettah said.

    He said that the company is being repositioned for improved performance noting that the company is currently realigning its portfolio and making strategic shifts where necessary while continuing to focus on innovation and seek opportunities to introduce new offerings into its portfolio of brands.

    Key extracts of the audited report and accounts for the year ended December 31, 2014 showed that profit after tax rose by 159 per cent from N57.3 million in 2013 to N148.6 million in 2014. Operational profit also grew from N174.3 million in 2013 to N304.5 million.

     

  • Portland Paints opens new centre in Lagos

    Portland Paints opens new centre in Lagos

    Portland Paints and Products Nigeria Plc which is a subsidiary of UAC and also a leading paint manufacturing company in Nigeria, has unveiled another Sandtex Experience Centre in Ifako – Gbagada, area of Lagos. The idea, according to Nnenna Azuka-Onwuka, the Marketing and Sales Manager of the outfit is to further connect with their customers and give them the opportunity to enjoy a bouquet of high quality paints both for personal and industrial use.

    During the unveiling of the centre last week, the Managing Director of Portland Paints, Femi Oguntade said “we are bringing the brand closer to the customer.  It is our responsibility to help them personalise their colours in order to truly reflect their style when making a decision to paint. Thus, to us, this is in line with one of the values of the company which invariably guarantees customer satisfaction.

    He stated further that they have in their collections about 15,000 different colours from which customers can easily make their choices. “With this variety of paints, you can always choose what you want.  We are about the only paint company and outlet that can give you a five year guarantee after painting your house.  This is so because we are too confident of our products.”

    According to Oguntade, the Portland Paints is now usually let out through different franchise arrangements so that its presence could permeate more areas and communities. The Ifako-Gbagada outlet which is owned by Nike Owolabi is meant to cater for the new developmental projects located within that axis.

  • African Paints vs Portland Paints: Red, green colours

    African Paints (Nigeria) Plc and Portland Paints & Products Nigeria Plc represent different generation – the old generation and new generation, of paint makers. African Paints was incorporated in 1974 and later listed on the Nigerian Stock Exchange (NSE) in 1996. Portland Paints on the other hand was incorporated in 1985. It became a publicly quoted company in 2009. Portland Paints is however the bigger of the two companies.
    Notwithstanding the generational gap, the two companies share several similarities including operations and products. Latest audited reports and accounts of the companies for the year ended December 31, 2011 showed dissimilarities in the operational results, even though they both engaged in manufacturing and sales of paints.
    While Portland Paints appeared to be consolidating its profitability, African Paints sank deeper into the red.
    Sales generation
    Both companies witnessed modest growth in sales during the period, with latest report indicating above-average growth for the peers. African Paints grew total sales by 12.5 per cent in 2011 as against an increase of 2.5 per cent in 2010. Average sales growth in the past two years thus stood at 7.5 per cent. Also, Portland Paints consolidated top-line performance with an increase of 8.6 per cent in 2011 compared with 4.9 per cent in 2010. Average sales growth stood at about 6.8 per cent.
    Profitability
    The two companies showed different profit outlook, with Portland Paints on the positive side and African Paints on the negative side. Portland Paints grew gross profit by about 20 per cent in 2011 just as gross profit margin increased from 38.9 per cent in 2010 to 43 per cent in 2011. Average profit per unit of sales improved marginally from 10.4 per cent to 10.6 per cent, which nudged actual pre-tax profit by 11.4 per cent as against a decline of 9.4 per cent in 2010. Net profit after tax recovered with an increase of 19 per cent compared with a decrease of 28 per cent in previous year.
    On the other hand, African Paints’ gross profit dropped by about 56 per cent as gross margin shrank from 18 per cent to 7.2 per cent. By the midline, the company made a worse pre-tax loss of N84.9 per N100 unit of sales in 2011 as against N26.8 in 2010.
    Actual returns
    African Paints’ underlying returns remained in the red. Return on total assets worsened from -4.0 per cent in 2010 to -14.5 per cent. Return on equity declined to -276 per cent in 2011 as against -21 per cent in 2010. Portland Paints increased returns generally to all stakeholders. Return on total assets nearly doubled from 8.5 per cent to 14.2 per cent. Return on equity rose above average to 15.6 per cent in 2011 as against 13.8 per cent in 2010.
    The bottom-line
    The paints and chemical industry thrives on the booms of public and private construction as well as industrial activities. Slowdown in the economy, especially in manufacturing, construction and real estate businesses, no doubt usually influences the performance of the sector. But the performance of each company would largely be determined by its sales strategy, cost management and balance sheet structure. Portland Paints appears to be in better stead than its peer.