Tag: Profit

  • Custodian and Allied records N5b profit

    Custodian and Allied Plc grew its bottom-line by 19 per cent in the immediate past business year, sustaining resilient performance that has made the insurance and investment company one of the most active insurance stocks on the stock market.

    The group’s total assets base rose to N48.9 billion while profit before tax and profit after tax were N5.15 billion and N4.09 billion, indicating a year on year growth of 19 per cent in profit before tax.

    The Board of Directors of the company has proposed the payment of an additional 12 kobo per share as final dividend thus making a total dividend of 18 kobo per share for the 2014 financial year. It had paid an interim dividend of 6.0 kobo per share in September, 2014.

    The management of the company stated that it has continued to maintain its leadership position in the other financial services sector while its subsidiaries lead in their respective subsectors.

    Custodian and Allied Insurance is a wholly-owned Nigerian investment holding company with significant investments in general and life insurance, pension fund administration, trusteeship and property holding businesses.

    The Custodian Group consists of Custodian and Allied Plc (the holding company), Custodian and Allied Insurance Limited, Custodian Life Assurance Limited, Custodian Trustees Limited and CrusaderSterling Pensions Limited.

    In a recent review, Chief finance officer, Custodian and Allied Plc, Ademola Ajuwon, noted that favourable underwriting income from the insurance subsidiaries and remarkable efficiency gains were factors that contributed to the improved result.

    According to him, the performance is a concise representation of Custodian and Allied Plc’s unrelenting commitment to its corporate ideal of exceeding customer and other stakeholders’ expectations at all times as demonstrated daily through customer focus, comprehensive systems, processes and operations integration.

    “Barring any unforeseen adverse developments, management is confident that the company’s well-articulated business plans and forecast will be achieved in the short, medium and long terms; ultimately benefiting all stakeholders,” Ajuwon said.

  • Chams grows profit by 145% as Aladekomo retires

    Chams grows profit by 145% as Aladekomo retires

    Chams Plc doubled its pre-tax profit in 2014 as the information and communication technology company continued to strengthen its income and profitability.

    Key performance indices of the company showed appreciable improvements in overall performance outlook during the year ended December 31, 2014.

    Turnover rose from N3.44 billion in 2013 to N4.12 billion in 2014. While gross profit slipped from N1.85 billion to N1.55 billion on the back of higher cost of sales, the company reduced operating expenses to boost the midline. Operating profit rose to N392.3 million in 2014 compared with N320.2 million in 2013.

    Profit before tax jumped by 144.9 per cent from N106.92 million to N261.81 million. Profit after taxes also rose by 48.8 per cent from N188.46 million to N280.43 million.  The positive earnings also strengthened the company’s balance sheet. Total assets improved from N10.72 billion in 2013 to N12.09 billion in 2014 while shareholders’ funds increased from N4.68 billion to N5.92 billion.

    The improved performance encouraged the board of the company to recommend distribution of N93.92 million as cash dividends, representing a dividend per share of 2.0 kobo.

    The latest reports appeared to underline increasing profitability of the company’s operations. Audited report and accounts of Chams for the year ended December 31, 2013 had shown that turnover rose by 21.3 per cent from N2.84 billion in 2012 to N3.44 billion in 2013. Profit after tax rose by 115.3 per cent to N188.5 million as against N87.5 million in the previous year. The company’s net bottom-line was boosted by tax gain of N81.54 million. Total assets grew by 22.9 per cent to N10.7 billion compared to N8.7 billion. Shareholders’ funds improved from N4.5 billion to N4.7 billion.

    In his recent review, Group Managing Director, Chams Plc, Demola Aladekomo, said the performance of the company confirmed that the various initiatives that had been put in place have started bearing fruit.

    “To consolidate on our performance in the last financial year and maintain our profitability is quite commendable and we are confident that things can only become better for us. More gratifying is the fact that we have sustained our topline growth trajectory, an indication that we have continued to increase our market share and remain competitive. We have entered into some partnership agreements that will have positive impact on our performance in the coming years,” Aladekomo said.

    According to him, the priorities of the company in 2014 included completion of the ongoing restructuring across the group and dedication of its energy towards delivering value to all stakeholders; upgrading of its card personalization bureau to EMV-certified standard and fostering strategic alliance with its partners based in South Africa and Israel.

    He added that the company would also strive to launch new card products and solutions into the market; sustain growth in its market share; achieve a profit growth of 300 per cent while continuing to engage the investment community and keep them abreast of developments in the company.

    In the 2014, Chams drove the implementation of the Bank Verification Number project initiated by the Central Bank of Nigeria (CBN) and the Bankers’ Committee. It implemented the one-year project in partnership with Dermalog Identification Systems, a leading global company in the field of bio-payment. Chams and its technical partner, Dermalog, will work for five years on the Bank Biometric Matching Solution Project, which is expected to create 1000 new jobs for young professionals.

    Apart from its benefits to the national economy, which is bridging the formal and informal economy, the Bankers Biometric Matching Solution project and the increasing uptake of identity management products and services by private and public enterprises are expected to usher Chams into a new era of strength, financial stability, improved cash flow and profitability beyond the 2014 financial year.

    This will be the last audited report to be presented by the founding managing director, Aladekomo, who retires in April. Aladekomo is retiring as recent strategic initiatives appeared to be impacting positively on the fundamentals of the company.

    Chams recently indicated the impending retirement of Aladekomo and new appointments that will see orderly leadership transition. Aladekomo, who founded Chams in 1985 and has served the company as managing director for almost 30 years, would be retiring from September 18, this year.

    The board of the company had approved the appointments of the Deputy Managing Director, Olufemi Williams as Managing Director and Luqman Balogun, who is the  the Managing Director of CardCentre Nigeria Limited, a subsidiary of Chams Plc, as deputy managing director.

    Aladekomo has expressed confidence in the ability of his successors to take the information and technology company to higher level.

    He said he was leaving with the conviction that the new management would move the company to greater achievements. Aladekomo had nursed Chams from a private limited liability company to a public limited liability company. Chams was quoted on the NSE in 2008.

    “After almost three decades with the company as CEO, it is time to move on and transfer execution to a new generation of leadership. I look forward to working with the chairman, board and management team during the seven-month transition period and to being available as an advisor to management after retiring as CEO. I am confident Chams has all its best days ahead,” Aladekomo said.

    Chairman, Chams Plc, Mr. Ayo Richards, praised Aladekomo’s leadership qualities noting that he had been able to manage the company through its various transitions and challenges.

    “The board is grateful for his innumerable contributions to the company and his distinguished tenure as CEO over the last 29 years,” Richards said.

    Aladekomo will proceed on leave in April 2015, handing over to Olufemi Williams as the group managing director and chief executive officer. Williams takes over from Aladekomo in alignment with the board of director’s ratified succession planning which emphasises promoting capable internal candidates to leadership positions.

    Until the announcement of Aladekomo’s retirement, Williams was the deputy managing director, and a Chams Plc veteran having joined the company in 1990 as a computer engineer. He rose to the position of general manager in January 2001, and held same until he joined SuperCard Limited as managing director in March 2004.

    Olufemi was appointed deputy managing director, Chams Plc in January 2012 after the merger of SuperCard Limited with Chams Plc.

    Prior to joining CardCentre in June 2013 as managing director, Lukman Balogun spent 22 years in banking in a career spanning retail and commercial banking, banking operations and information technology, credit and relationship management, cards and electronic banking, and project management.

  • Diamond Bank’s profit drops to N25b

    Diamond Bank’s profit drops to N25b

    Diamond Bank Plc has recommended payment of a dividend per share of 10 kobo to its shareholders following a contraction in the bottom-line of the bank.

    Key extracts of the audited report and accounts of Diamond Bank for the year ended December 31, 2014 showed that pre-tax profit dropped by 12.4 per cent from N32.08 billion in 2013 to N28.10 billion. Profit after tax also declined from N28.54 billion to N25.49 billion. Basic earnings per share thus dropped from N1.97 in 2013 to N1.66 in 2014.

    However, group recorded a growth of 27.3 per cent in total assets from N1.52 trillion to N1.93 trillion. The growth was driven by a 23.8 per cent growth in deposit liabilities year-on-year, demonstrating the bank’s strong ability to generate cheap deposits from the retail and middle market segments. Deposit from customers grew from N1.21 billion in 2013 to N1.49 billion as at December 31, 2014.

    Also, gross earnings increased by 15 per cent from N181.2 billion in 2013 to N208.4 billion in 2014, driven by efficient growth in the volume of business represented by increase in loan book, and investment securities following the impressive growth in customer deposits. Consequently, the group achieved an improvement of 9.6 per cent in net operating income from N116.3 billion in 2013 to N127.4 billion in 2014. Group loan to customers recorded a growth of 14.8 per cent from N689 billion to N791 billion.

    The group’s capitalisation improved significantly by 50.5 per cent during the year due to a combination of the impact of its highly successful rights issue concluded in the last quarter of 2014, as well as the capitalisation of profits for the year ended 2014. In effect, shareholders’ funds increased from N138.7 billion in 2013 to N208.8 billion in 2014.

    Consequent on the enhanced capitalization, return on average equity declined from 23.1 per cent in 2013 to 14.7 percent in 2014. Return on average asset followed the same trend from 2.1 per cent in 2013 to 1.5 per cent in 2014.

    Diamond Bank raised $200 million Eurobonds during the year to finance its long term foreign currency assets. It is one of the eight banks designated as systemically important banks by the Central Bank of Nigeria (CBN) in 2013.

    On the results, Group Managing Director, Diamond Bank Plc, Mr. Uzoma Dozie, said that the bank was pleased with the continued success in implementing its strategy across the group, noting that the asset base grew from N1.5 trillion to N1.9 trillion in 12 months.

    According to him, amidst regulatory headwinds that characterized the industry, and a dynamic macroeconomic environment, growth was recorded in operating income although profit before tax declined from 2013 levels on the back of higher operating expenses and loan impairment charges.

    “For continued growth and profitability in 2015, we will continue to vigorously drive the implementation of our alternative banking channels including digital banking; this will help to drive down operating costs as well as capture a significant share of new and existing bank account holders as well as a  large portion of the unbanked.

  • NIPCO posts N2.916b profit

    NIPCO Plc has declared a profit before tax of N2.916 billion for the financial year ended December 31, 2014, representing a three per cent increase over the N2, 827 billion declared in 2013.

    Its Chairman, Plc, Chief Bestman Anekwe shareholders at the company’s 11th Annual General Meeting (AGM) in Abuja, said the company’s profit after tax also rose by 11 per cent from N2,089 billion in 2013 to N2,314 billion in the year under review.

    In a statement by its Manager, Corporate Affairs, Lawal Taofeek, Chief Anekwe described the performance as good, considering the challenging operating environment in 2014, adding that the company is emerging stronger, bigger and more committed to excellent services.

    According to him, the company recorded a turnover of N145.174 billion in 2014 as against N137.851 billion in 2013, which represents an increase of N7.32 billion.

    He noted that in view of the performance, the Board recommended a dividend of 375kobo per share, totalling N703.756 million representing a seven per cent increase over the 350 kobo paid in 2013. The amount was unanimously approved by shareholders.

    The chairman explained that the impressive result is a fallout of the commitment, dedication, diligence and prudent management of resources and the numerous marketing strategies put in place by the company. He stated that the result is a reflection of the resolve of the board and the management to brace all odds in achieving a superior shareholders’ value in the industry.

    Reviewing the downstream sector last year, Anekwe said because domestic requirement of refined petroleum products could not be met locally due to poor state of the refineries, it made import regime unavoidable. “The above scenario coupled with the difficulties associated with the processing of subsidy claims impacted negatively on downstream operator’s margins resulting in low returns on investment,” he said.

    Its Managing Director, Mr Venkataraman Venkatapathy said the company was able to put in place initiatives, which improved its service delivery to stakeholders, stressing that the workforce played a key role in this direction. He said the company’s operations continued to be in tandem with international best practices, noting that the focus will propel the firm to exceptional performance this year.

    Venkatapathy stated that NIPCO’s passion for safety continued to pay off and earned it scores of recognitions, the most recent being Nigeria Ports Authority (NPA) Best HSE compliant terminal award for the fourth consecutive year. He assured shareholders that the company’s transformation agenda is on course and shall remain committed to meeting their needs in line with the corporate mission.

  • Unity Bank bounces back with N13.6b profit

    Unity Bank Plc made a remarkable turnaround in 2014 as the commercial bank returned to the green with a pre-tax profit of about N14 billion. Against the background of loss before tax of N33.64 billion in 2013, Unity Bank rode on the back of improved capital base, growing top-line and better cost efficiency to record a full-year profit before tax of N13.64 billion.

    Key extracts of the audited report and accounts of the bank for the year ended December 31, 2014 showed that gross earnings rose from N62.83 billion in 2013 to N77.07 billion in 2014. Interest income had grown from N52.2 billion in 2013 to N62.64 billion in 2014 while net interest income rose from N30.14 billion to N45.45 billion. Fee and commission income stood at N10.71 billion in 2014 as against N7.33 billion in 2013. Other incomes totaled N3.72 billion in 2014 compared with N3.30 billion in 2013.

    After taxes, net profit stood at N10.69 billion in 2014 compared with net loss after tax of N22.58 billion in 2013. Earnings per share thus turned positive with a modest 17.45 kobo in 2014 in contrast with loss per share of 58.74 kobo recorded in previous year.

    The balance sheet of the bank also firmed up substantially. Total assets rose to N413.31 billion in 2014 as against N403.63 billion in 2013. Total liabilities meanwhile dropped from N375.42 billion in 2013 to N337.04 billion in 2014. Shareholders’ funds closed 2014 at N76.26 billion as against N28.21 billion in 2013.

    Unity Bank had raised N39.22 billion new equity funds in 2014 through a combined rights issue of N19.22 billion and special placement of N20 billion.

    In a recent review, managing director, Unity Bank Plc, Mr. Henry Semenitari, said the bank’s growth was founded on the improving fundamentals and would not be impaired by any loss or impairments going forward.

    According to him, the bank’s current growth strategy is anchored on strict operational efficiency in line with its chosen business model and strategic intent of being the leading retail bank in Nigeria.

    “The growth is expected to continue in the foreseeable future, no loan loss, no impairment, no termite will eat into this profit because it’s cash income,” Semenitari assured.

    He said the bank has what it takes to achieve its vision of being the retail bank of choice by 2020 citing its vast nationwide branches, human resources, improved capital base and committed executive and non-executive directors.

    He outlined that Unity Bank is already one of Nigeria’s leading retail banks in the country with 240 business offices spread across the country and ranking as Nigeria’s 7th largest bank by business locations adding that the bank would increase its branch network in the nearest future.

    He pointed out that the bank has carved out a niche for itself as a leading bank in small and medium enterprises, agriculture and rural economy financing noting that the bank is leveraging on its historical

     

  • Access Bank grows profit by N52b

    Access Bank Plc sustained double-digit growths across key performance indicators as the top-tier bank at the weekend released its audited report and accounts for the year ended December 31, 2014.

    Key extracts of the report showed double-digit growths in the top-line, bottom-line, balance sheet size and shareholders’ funds, implying a considerable resilience for the bank against the industry-wide headwinds occasioned by policy changes and fiscal and monetary challenges.

    Gross earnings rode on the back of stronger growth in the bank’s core banking operations and improved cost management to close the year with a total growth of 18.5 per cent. Net interest income had grown by 21 per cent while net interest income closed higher with 29 per cent growth. Net interest margin, which underlines the cost efficiency of the banking operations, had improved from 53.2 per cent in 2013 to 56.5 per cent in 2014.

    Gross earnings stood at N245.22 billion in 2014 as against N206.89 billion in 2013. Interest income rose from N145.96 billion to N176.92 billion while net interest income closed 2014 at N100.02 billion as against N77.72 billion in previous year.

    The bottom-line also showed similar resilience with pre-tax profit rising by 20 per cent while profit after tax grew by 18 per cent. Profit before tax rose from N43.53 billion in 2013 to N52.02 billion in 2014. After taxes, net profit for the year stood at N42.98 billion as against N36.30 billion in previous year. Earnings per share thus rose from N1.57 in 2013 to N1.88 in 2014, representing an increase of 20 per cent.

    The board of the bank has recommended distribution of additional N8.01 billion as cash dividends for the 2014 business year, bringing total dividend for the year to N13.73 billion. Shareholders would receive a final dividend per share of 35 kobo in addition to interim dividend of 25 kobo paid earlier, totaling a dividend per share of 60 kobo. The company had paid the same rate for the 2013 business year.

    The cash dividend will become payable on May 7, the same day it is expected to be approved by the shareholders at the yearly general meeting. The final dividends will be paid to shareholders in the register of the bank by the close of business on April 24, 2015.

    The balance sheet of the bank also showed improved performance. Total assets rose by 15 per cent from N1.84 billion in 2013 to N2.10 billion in 2014. Net assets, otherwise known as shareholders’ funds, also increased by 13 per cent from N244.48 billion to N277.41 billion.

    Access Bank is currently raising new equity funds from existing shareholders. It is offering 7.63 billion ordinary shares of 50 kobo each to existing shareholders at N6.90 per share. The rights issue is closing this Wednesday

    Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe, urged shareholders to take advantage of this extension to fully exercise their rights, assuring them of quality return on their investments.

    “We are going to give good returns on investment as our target is to be among top three banks in 2017,” Wigwe said.

    He added that the bank was already talking to institutional investors, high net-worth investors and individuals, particularly investors who understand the value of long term investments.

    The net proceeds of the N53 billion offer would be used to upgrade the information and communication technology (ICT) systems of the bank to provide better services and build a more robust ICT platform as well as upgrade the branch network and facilities to serve the growing number of clients and further improve the working environment of staff.

    The bank would also use part of the proceeds to further develop its distribution channel infrastructure to provide better and more efficient services to clients while it would also augment its working capital to expand its loan book in its identified sectors of growth in line with its medium term strategic objectives.

    Access Bank would also use part of the proceeds to pursue opportunities for international expansion.

     

    Analysts at Afrinvest Securities Limited have said Access Bank has strong potential to generate high capital gains and above-average dividend yields to investors.

     

     

    In a stock recommendation, analysts indicated that the bank’s share price could rise to N11.80 per share over the next 12 months. The 12-month target price represents a capital gain of 71 per cent on the bank’s rights issue price of N6.90 per share.

     

     

    According to analysts, Access Bank could also deliver above-average returns to long-term investors with its dividend yield at 9.5 per cent. Analysts then placed the “buy” ticker on Access Bank, implying that investors are encouraged to take position in the bank as its 12-month return will definitely not be less than 25 per cent.

     

     

  • Weak profit margins dampen U.S. producer inflation

    United States producer prices fell in February for a fourth straight month, pointing to tame inflation that could argue against an anticipated June interest rate hike from the Federal Reserve.

    Other data showed a decline in consumer sentiment in early March, as harsh winter weather left households with high utility bills and disrupted shopping and general business activity.

    The Labour Department said its producer price index for final demand declined 0.5 percent as profit margins in the services sector, especially gasoline stations, were squeezed, and transportation and warehousing costs fell.

    The PPI had dropped 0.8 percent in January. In the 12 months through February, producer prices fell 0.6 percent, the first decline since the series was revamped in 2009.

    “The underlying message appears to be that pipeline inflationary pressures remain quite weak, even as energy prices have stabilised and gasoline prices have drifted modestly higher,” said Millan Mulraine, deputy chief economist at TD Securities in New York.

    Economists had forecast the PPI rising 0.3 percent last month and remaining unchanged from a year ago.

    In a separate report, the University of Michigan said its consumer sentiment index fell to 91.2 in early March from a reading of 95.4 in February. But with bad weather mostly blamed for the ebb in sentiment, a rebound is seen as likely.

    U.S. Treasury prices were mixed, while the dollar rose against a basket of currencies. U.S. stocks fell, putting the S&P 500 index on track for its third straight weekly decline.

    The inflation data came ahead of next week’s Fed meeting, where policymakers are widely expected to signal the U.S. central bank’s openness to a June rate hike by dropping a pledge to be “patient” in considering such a move.

    But with price pressures remaining muted and retail sales extending their decline in February, some economists believe the central bank could hold off on raising rates until at least September. Inflation is running well below the Fed’s 2 percent target.

    “The Fed will need to see some firming in core and pipeline inflation before achieving lift-off to assure that the 2 percent target on inflation is indeed within reach,” said Diane Swonk, chief economist at Mesirow Financial in Chicago.

    The Fed has kept its key short-term interest rate near zero since December 2008.

    Services accounted for 70 percent of the decline in the PPI last month. The volatile trade services component, which mostly reflects profit margins, fell a record 1.5 percent in February, after rising 0.5 percent in January.

  • Reps to probe NNPC for $14.9bn NLNG profit

    Reps to probe NNPC for $14.9bn NLNG profit

    •Corporation heads for court to stop lawmakers

    The House of Representatives is set to probe the whereabouts of $14.9 billion (about N3 trillion) profit the Nigeria Liquefied Natural Gas  (NLNG) Company paid to the Nigerian National Petroleum Corporation (NNPC).

    The amount represents dividends accruing from the sales of liquefied gas from 2004 to 2014 and which the NLNG Company said it paid into the corporation’s accounts.

    The Chairman of the House of Representatives Committee on Public Accounts, Solomon Olamilekan Adeola, who said this at the weekend, added that the committee would move a motion of urgent national importance at plenary tomorrow to compel the NNPC to bring relevant documents.

    But, the NNPC has moved to stop the House from getting the documents as its lawyer, Mike Ozekhome & Co Chambers, wrote the House Committee last Friday saying it has no right to request for the LNG accounts.

    Speaking at the weekend, Adeola said: “Just about a month ago, we invited the NLNG to appear before the committee on Public Accounts. They came and told us that Federal Government has 51 per cent holding in the LNG while 41 per cent is owned by Shell and others in the private sector.

    “Yes, if we have 51 per cent, how much of these funds have returned to the Federal Government as dividend? They said they have it. And between 2004 and 2014, they remitted to the NNPC coffers in form of dividends $14.9 billion.

    “We wrote to NNPC asking for an evidence for the sources of revenue, the bank statements, and if there is any expenditure for that account and any other item they can furnish us with.

    “We received a letter from their lawyer, Mike Ozekhome & Co, quoting Section 88 and other relevant sections of the constitution as to why they cannot and will not come before the committee with these particular documents.”

    The lawmaker said Ozekhome’s chamber was a private law firm and did not represent the law courts and that NNPC’s action showed  “that there is more to what we’re seeing.”

    He stated that the committee made a simple request on transactions that concern the generality of Nigerians, “and the next line of action is to go to your lawyer to start writing us and from there move to court to seek injunction preventing us from that document.

    “This tells you the extent to which they have used the judiciary to stall a lot of investigations we are carrying out as a House.

    “And on Tuesday (tomorrow), I want to come by a motion of urgent national importance so that the House can know what is in the offing as far as NLNG is concerned,” the committee chair said.

    He noted that a similar fate befell the investigation of the N10 billion allegedly used by the Petroleum Minister, Mrs. Diezani Allison- Madueke, for chartered flights for private travels.

    A court injunction truncated the probe by the same House Committee.

  • Making profit from beekeeping

    Making profit from beekeeping

    Beekeepers make profit producing more than just honey and beeswax. Money  comes from bee pollen, pedigree queen bees, propolis, royal jelly and more.This is the campaign Mr Bidemi Ojeleye, Chief Executive, Centre for Bee Research and Development, Igbeti, Oyo State, is mounting to get more Nigerians involved in the  money spinning  business. DANIEL ESSIET writes.

    If one doesn’t mind the occasional stings, beekeeping as a home business could become a pleasurable and profitable enterprise, Chief Executive, Centre for Bee Research and Development, Igbeti, Oyo State, Bidemi Ojeleye, has said.

    Beekeeping is a good way for someone to get some money out a hobby, said Ojeleye , who has already recouped his  investment in  bee keeping , including his  own honey extractor, by selling at local farmer’s markets.

    With a single hive and some equipment of  N20,000, a home beekeeper could harvest about 100 pounds of honey, or 36 quarts, every six months. At the going price of up to N1000 for litre  of honey in today’s market, that’s more than enough to recoup the initial investment.

    Ojeleye has over 4000 hives in different places in Igbeti. He owns commercial hives consisting of wooden boxes, each containing 10 wooden frames around a plastic sheet with hundreds of small hexagonal cells, similar to the wax cells in a natural hive. The cells become breeding chambers for the next generation of bees and to store honey for food.

    To make it, he said one  needs  some level of expertise and there’s a lot to learn. There are  opportunities for bee keepers to make money. This is because  honey isn’t the only commercial product from a commercial beehive.

    One can make money from extracting wax which bees create to cover the honey and brood cells, though it  is a laborious process.

    For example, bees wax is used in candle making, shoe polish, vehicle and floor polishes, varnish, gum, carbon paper, electrical appliances, fabric industry, cosmetics, wax crayons, metal casting and food processing and packaging. In beekeeping industry,he  said  it is used for the preparation of comb foundations.

    However, in addition to honey, production of bees wax,  propolis, pollen, royal jelly, pedigree queen bees, package bees, and renting out honey bee colonies for crop pollination are some of the potential areas of apicultural diversification, he said.

    He explained that the challenge however is that  government has not  supported the  production of   other bee products that  can provide the beekeepers with additional wealth and increase the productivity of the colonies.

    Ojeleye said everything produced by bees can be turned into cash. While most farmers harvest honey twice a year, he harvests four times a year, attributing his higher harvests ratio to proper maintenance.

    Using money from honey, the enterprising beekeeper  has built a house and  bought  a car. This has motivated him to encourage people to go into agriculture-related professions in rural areas, while  hosting a mega honey bee-keeping conference  in Igbeti for  farmers and researchers.

    For those who don’t have  enough  money, Ojeleye said they can  start with N15,000. They can start with two wooden hives, but with more,  they will make more money, he said. With his  experience, Ojeleye said beekeeping is a veritable means of livelihood.

    He  said school fees is  not  a problem for a thriving farmer, as income  generated from  a few number of hives situated within a good forest area,  can help him  send his  children to school and buy other basic necessities with money made from the sale of honey.

    Having  spent over 30 years  in  the  business  which  he  learnt  while  on a visit to  Kenya, Ojeleye  is  so versed  and well  equipped  to  teach everything_ from beekeeping to product development, to marketing  essential skills that help people earn money. He  trains farmers on  budgeting and costing issues.

    His success shows that when done the right way, bee farming can be better paying than many white collar jobs. The veteran beekeeper has no kind words for the current education system which prepares students for white collar jobs and portrays farming as a career for failures.

    Where other people see danger in the vicinity of a colony of bees, Ojeleye sees friends that provide huge dosages of elixir during his lean moments.

    Because of his love for bees, he has been able to study their ways such that he can easily understand them and ensure that there is no enmity. His love affair with his bees is not unique, as almost every other beekeeper in the area seems to have an affinity with their bees.

    He has a huge vision for his project as he wants to produce high quality, branded honey.

    Another beekeeper, Jimoh Hammed,  said   he has been in apiculture as a side business from  farming and trying to establish strong bond with his bees.

    Trained  by  Ojeleye, Hammed, believes beekeeping is a viable business and there is money to be made through it.

    He said a lot of suspicion and traditional myths surrounding the use of honey has seen people paying scant regard to its true value.

    One area people fear is the bee sting. Although it hurts, Hammed explained that the venom extracted from bees is used to heal bee bites.  Besides, he  is now  used to the bites and has developed that much resistance to their stings.

    He says if someone is bitten by a bee, a signal is sent to the other bees and they will come to attack the same person, but they have learnt to break the signal between the bees and their communication with the queen bee by rubbing the bitten spot with green leaves or shrubs.

     

     

  • Ultimate Microfinance Bank records N21million profit

    Ultimate Microfinance Bank, Ipaja, Lagos has recorded N21.17 million profit after tax in year 2013.

    The bank’s chairman, Mr Wale Odunayo, disclosed this at the 5th Annual General Meeting, in his review of the bank’s activities in the preceding year.

    In his opening remarks, Odunayo said the bank which was  known as Ipaja Community Bank Limited was incorporated on June 18, 1993 and commenced microfinance banking operation having been provisionally licensed on August 4, 2011.

    According to him, during the year under review, additional shares were allotted to the bank by CBN which rose from N50million to N100 million while the operating environment and cost of doing business in the country remain high.

    He disclosed further that the bank’s gross earnings for year 2013 was N52.5 million while that of the year 2012 was N37.2 million and N26.4 million for the year 2011, saying that in year 2013, the bank recorded a profit of N21.17 million.

    “In the past three years, the bank did not make profit thus no dividends were paid. The reason for lack of profit in the preceding year was clear because borrowers refused to pay back their loans and the CBN took all our profit for operating capital. During the year under review, the bank made a profit after tax of N19.9 million out of which the board approved the sum of N2.9 million as dividends at 10k per share,” he said.

    The bank’s chairman said it is hoped that with the increase in shareholders’ funds and increased operational activities of the bank in terms of loan and advances, the bank would make more profit next year while shareholders would enjoy more returns on their investment.

    He said despite the privatisation of electricity by the federal government, public electricity supply remains erratic and this has necessitated the continued use of generating set with its attendant cost of fuelling and maintenance.

    The chairman noted that despite the challenges, the bank has been performing its civic duties of tax payment and levies to relevant federal, state and local government tax agencies.

    “Salaries and allowances are being paid to the bank’s staff in addition to other incidental expenses. It is hoped that the completion of Ayobo/Ipaja road will impact positively on the operations of the bank by making it more accessible to more customers and would be customers of our great bank,” he said.

    The chairman said 50 per cent of the year 2013 profit has been added to shareholders fund adding that this in turn would boost the operating capital of the bank.

    “As part of the recommendation of the strategies committee being put in place, the bank has embraced group lending to various bodies, associations and cooperatives. In group lending, the risk was spread among members and it is easier to recover such loans than when the loans are given to individual borrowers,” he said.