The Nation Newspaper

Tag: Shareholders

  • Shareholders approve Africa Prudential Registrars’ N700m dividends

    Shareholders approve Africa Prudential Registrars’ N700m dividends

    Africa Prudential Registrars (APR) Plc would today distribute N700 million as cash dividends to shareholders following the approval of the dividend recommendation at the annual general meeting (AGM) of the company.

    APR, Nigeria’s first and only share registration company listed on the Nigerian Stock Exchange (NSE), would pay a dividend per share of 35 kobo to all shareholders. The payment of the dividend will be made tomorrow to all shareholders on the register of members of the company as at the qualifying date of March 17 this year.

    Addressing shareholders at the meeting, its chairman, Chief  Eniola Fadayomi said APR’s dividend policy is aimed at rewarding shareholders by increasing their wealth and consistency.

    She said though market performance in the first half of the year showed momentary positive runs, the second half was far less impressive, pointing out that in spite of the inclement operating environment, the company recorded significant gains when compared to the previous year.

    Its Managing Director, Mr. Peter Ashade, reassured that the company remains true to its goal of becoming the leading and dominant provider of share registration services in Africa.

    “As a result, our focus for the year will be to continue to profitably grow our businesses while providing our clients and stakeholders with appropriate alternative solutions. We will strive to manage our operating costs by optimising our processes while concurrently improving the level of service delivery to our clients,” Ashade said.

    Key extracts of the audited report and accounts of the company showed steady growths in all key performance indicators. Gross earnings rose from N1.85 billion in 2013 to N2.11 billion in 2014. Profit before tax also rose from N1.21 billion to N1.30 billion. After taxes, net profit stood at N1.22 billion in 2014 as against N914.46 million in 2013. Earnings per share showed corresponding increase from 46 kobo in 2013 to 61 kobo in 2014.

    The balance sheet of the company also showed appreciable improvement. Total assets closed 2014 at N18.91 billion compared with N16.42 billion in 2013. Total liabilities meanwhile rose from N12.09 billion to N14.38 billion. Shareholders’ funds increased marginally from N4.33 billion to N4.53 billion.

    It would be recalled that APR equally paid a dividend per share of 35 Kobo to shareholders for the 2013 financial year, its first year as a listed company on the NSE.

  • Fidson shareholders to get N225 million

    Shareholders of Fidson Healthcare Plc will receive a 50 per cent increase in cash dividend this year as the company’s earnings firmed up.
    The Board of Directors of Fidson Healthcare has recommended distribution of N225 million to shareholders as dividends for the immediate past business year ended December 31, 2014. Shareholders will receive a dividend per share of 15 kobo as against 10 kobo received in the previous year.
    The dividend increase was directly related to the improvements in the earnings of the healthcare company. Key extracts of the audited report and accounts of Fidson Healthcare for the 2014 business year showed significant growths in key fundamentals.
    The company’s profit before tax rose by 249 per cent from N249.6 million in 2013 to N870.8 million in 2014. Profit after tax jumped by 308 per cent to N631.8 million in 2014 as against N154.9 million recorded in 2013. Earnings per share thus increased from 10 kobo in 2013 to 42 kobo in 2014.
    Fidson had relied on impressive cost management and improving operating efficiency to drive the bottom-line. While its turnover rose by five per cent from N9.25 billion to N9.73 billion, it moderated cost of sales to four per cent growth and reduced operating expenses by nine per cent.
    The management of the company said its growth trend evidenced its ability to maintain its products’ market share in key therapeutic areas.
    “This is driven by innovative products, strategic marketing approaches, robust distribution channels as well as relentless efforts in ensuring quality and various anti-counterfeiting initiatives,” Fidson had stated.
    The management reassured that the company is also well positioned for huge growth opportunities, following the projection of a significant improvement in sales upon the completion of its ultra-modern WHO Good Manufacturing Practice (GMP) compliant plant. The plant is proposed to begin operation in 2015.
    The plant is expected to broaden the company’s products base, increase its capacity and consequently profitability and growth opportunities.
    Operations Director, Fidson Healthcare Plc, Mr. Biola Adebayo, said the new manufacturing plant, which will aggregate the manufacturing lines from other intravenous products, will be a game-changing investment that will further enhance Fidson’s leadership position in the healthcare industry and position it in good stead to compete for global healthcare funds and orders.
    According to him, the new plant would further enhance the local manufacturing capacity of the company with more than two-thirds of its products expected to be produced locally.
    He added that the new manufacturing plant, which is being built to WHO standards and certification, will enable Fidson to engage in contract or tall manufacturing for many global pharmaceutical companies, which want to manufacture their products in Nigeria but do not want to establish full-fledged manufacturing plants.
    Adebayo noted that the prospects for the company’s growth is huge pointing out that there are no more than three companies manufacturing its new line of intravenous products and the volume needed by the country is so huge.

     

     

  • Nahco to distribute N295.3m, 148m shares to shareholders

    Nahco to distribute N295.3m, 148m shares to shareholders

    Shareholders of Nigerian Aviation Handling Company (Nahco) Plc would receive about N295.3 million and 147.7 million ordinary shares as combined cash and scrip dividends for the immediate past business year.

    According to dividend recommendation by the board, shareholders would receive a dividend per share of 20 kobo in addition to a bonus share of one ordinary share for every 10 shares held as at the scloure date.

    Shareholders of the company are getting this double return on investment even as the company is set to benefit from its free trade zone subsidiary, NAHCO FTZ, which  commenced operations last quarter of 2014 and is expected to begin to reap profits soon after significant investments in its development the past two years.

    NAHCO ended 2014 with a marginal increase in revenues of N8.133 billion, and profit after tax of N568 million, compared with N8.09 billion and N817 million in 2013 respectively.

    The company’s bottom line was affected by the three months Ebola virus scare which reduced the movement of passengers and cargo flights across West African airports by major international carriers, Nahco’s core customers. Also, the company’s ratios withered the general high cost of operations, the slowdown in the economy major macroeconomic volatility preceding the 2015 elections.

    The 2014 group was most impacted by pre-operating expenses and sunk cost  made in its free trade zone subsidiary reducing  its overall profitability and performance relative to 2013 results.

    Managing Director, Nigerian Aviation Handling Company (Nahco) Plc, Mr Norbert Biedermann, noted in a statement that inspite of the unplanned difficulties and the several health and safety flight cancellations and limitations in travels and travel warning coupled with the warehouse closure, the company achieved marginal growth in a very difficult year.

    He expressed optimism that the Nahco Group is on course to deliver  its strategic medium term growth and profitability objectives for 2015 and beyond as activities have since stabilised.

    “We see improvements income streams from  subsidiaries and efficiency improvements in the core business and new routings demand for the second quarter that will gradually add up to group performance,” Biedermann said.

    He said that while investments in the FTZ will continue apace in 2015 to 2016, the company will begin to reap the fruits of such investments within this year in a sustainable manner.

    Nahcos bonus declaration plus a cash dividend is the first double corporate action by a listed company this year on the floor and reflects company’s continuing strategy for cash retention as development and diversification is deepened  in tight market conditions-

    Chairman, Nigerian Aviation Handling Company (Nahco) Plc,  Suleiman Yahyah, had told shareholders at the last general meeting that a 25-year master plan was being developed  for implementation by NAHCO FTZ which will triple its cargo handling capacity in the short term and create a long term pipeline for both its expansion of revenues and consolidate its diversification strategy while supporting Nigeria’s exports earnings and trans-shipments capabilities   across the west Africa sub region – The FTZ is projected to attract over $500million in new investments in next five years.

    “NAHCO FTZ will afford us the opportunity to import goods in a borderless environment. It will also improve Nigeria’s trade facilitation and competitivess and give us a unique platform to service our value-added aviation-clients and related business.

  • Shareholders praise Zenith Bank’s performance

    Shareholders of Zenith Bank have commended the board and management of the bank for the impressive performance of the bank and good dividend payment to shareholders.

    Shareholders, who spoke at the Annual General Meeting (AGM) in Lagos, said the bank has sustained its growth in spite of tough operating environment.

    Audited report and accounts of the bank for the year ended December 31, 2014 showed gross earnings of N403.34 billion in 2014, 14.8 per cent above N351.47 billion. Profit before tax rose by 8.3 per cent from N110.6 billion in 2013 to N119.8 billion in 2014. After taxes, net profit rose by 4.3 per cent to N99.46 billion in 2014 compared with N95.32 billion in 2013. Earnings per share thus stood at N3.16 in 2014 as against N3.01 in 2013.

    Zenith Bank continued to show impressive credit risk management and loan efficiency as the proportion of non-performing loans to gross loans and advances dropped from 3.0 per cent in 2013 to 1.8 per cent in 2104. Shareholders’ funds also increased by 8.5 per cent from N509.25 billion in 2013 to N552.64 billion in 2014.

    Shareholders approved the gross dividend of N54.94 billion recommended by the board of directors, implying that shareholders would receive a dividend per share of N1.75.

    President, Nigerian Shareholders Solidarity Association (NSSA), Chief Timothy Adesiyan lauded the management of the bank for the impressive performance and efficient running of the company in spite of the harsh economic environment.

    He noted that the bank put its cost and administrative expenses under control during the year under review while it has continued to operate in a transparent manner.

    “All indices kept growing; we appreciate their strategy, especially in the areas of training and developing the workforce. We appreciate the performance indicators and overall result of the bank,” Adesiyan said.

    National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, commended the bank’s management for abiding by strict corporate governance principles and sustaining its profitability.

    He pointed out that with the 11 per cent growth in customer deposit to N2.54 trillion and reduction in the non performing loan of the bank; the future of the bank is secured.

    He however advised the bank to look into its fines and penalties from the Financial Reporting Council of Nigeria (FRCN).

    “Shareholders money will not be used to pay fines and penalties; they should hold the board and directors responsible. Let them pay the money or the stock would be suspended from trading on the Exchange and the board will be careful in running the affairs of the bank,” Nwosu said.

    Meanwhile, analysts at Exotix have placed Zenith Bank on their buy recommendation, noting that the bank’s share price could rise to N29.

    According to analysts, impressive performance of the bank in 2014 has led to strong increase in their forecasts for the current financial year.

     

  • GTBank, Zenith to pay shareholders N106b dividends

    Nigeria’s two most capitalised banks-Guaranty Trust Bank (GTBank) Plc and Zenith Bank Plc have announced that they recorded pre-tax profit of N236 billion in 2014. The banks will distribute N106 billion as cash dividends to shareholders.

    The audited report and accounts for the year ended December 31, 2014 showed that the banks suppressed the headwinds with appreciable improvements in the top-line and the bottom-line. Both banks recorded double-digit growth in the top-line while pre-tax profit rose by around nine per cent. The two competitive banks are also paying the same dividend rate as GTBank increased cash payout per share by 2.9 per cent to match Zenith Bank’s payout.

    The board of directors of GTBank recommended total dividend of N1.75 per share for the 2014 business year as against N1.70 paid for the 2013 business year. The bank will be paying final dividend of N1.50 per share. It had paid interim dividend per share of 25 kobo. This brings total payout to N51.5 billion for the 2014 business year as against N50.03 billion in 2013.

    The board of Zenith Bank retained the dividend per share of N1.75, the same rate paid for the 2013 business year. Gross dividend thus stood at N54.94 billion.

    Key extracts of the audited report and accounts showed that GTBank grew its top-line by 15 per cent with gross earnings of N278.52 billion in 2014 compared with N242.67 billion in 2013. Profit before tax rose by nine per cent from N107.09 billion to N116.39 billion. Profit after tax grew by 10 per cent from N90.02 billion to N98.69 billion. Earnings per share consequently rose by 10 per cent to N3.47 in 2014 as against N3.17 in 2013.

    Balance sheet analysis showed that deposits base expanded by 14 per cent to N1.65 trillion in 2014 compared with N1.44 trillion in 2013. Shareholders’ funds also rose by 13 per cent from N332.35 billion to N374.33 billion. Total balance sheet size rose by 12.4 per cent from N2.10 trillion in 2013 to N2.36 trillion in 2014.

    GTBank also continued to maintain disciplined and prudent approach to loan growth as the proportion of non-performing loans to total loans dropped from 3.58 per cent in 2013 to 3.15 per cent in 2014.

    In the same vein, Zenith Bank recorded gross earnings of N403.34 billion in 2014, 14.8 per cent above N351.47 billion. Profit before tax rose by 8.3 per cent from N110.6 billion in 2013 to N119.8 billion in 2014. After taxes, net profit rose by 4.3 per cent to N99.46 billion in 2014 compared with N95.32 billion in 2013. Earnings per share thus stood at N3.16 in 2014 as against N3.01 in 2013.

    Zenith Bank continued to show impressive credit risk management and loan efficiency as the proportion of non-performing loans to gross loans and advances dropped from 3.0 per cent in 2013 to 1.8 per cent in 2104. Shareholders’ funds also increased by 8.5 per cent from N509.25 billion in 2013 to N552.64 billion in 2014.

    Managing Director, Guaranty Trust Bank Plc, Segun Agbaje, said the bank’s financial performance in 2014 attested to the inherent soundness of its strategy and resilience of its earnings.

    He attributed the performance to loyalty of customers and commitment and hard work of the staff.

    “We remain committed to maximising shareholder value and delivering superior and sustainable returns. Our objective is to remain a leading player in the financial services sector whilst expanding our franchise in select, high growth African markets where we believe we have competitive advantage,” Agbaje said.

  • Shareholders back demutualisation of Stock Exchange

    Nigerian shareholders have expressed supports for the demutualisation of the Nigerian Stock Exchange (NSE), describing the release of the draft rules for the demutualisation by the Securities and Exchange Commission (SEC) as a step in the right direction. NSE is Nigeria’s only regular securities exchange. Securities and Exchange Commission (SEC), two weeks ago, released the draft rules for demutualisation of securities exchange.

    Shareholders’ leaders who spoke to The Nation said the demutualisation of the Exchange would open up the marketplace for popular ownership and enable minority shareholders who have been part of the growth of the market to benefit from ownership of the market.

    Chairman, Ibadan Zone Shareholders Association (IBZA), Chief Sola Abodunrin, said demutualisation portends good omen for the Nigerian stock market as the NSE can now truly become a national institution in terms of ownership.

    National coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said the demutualisation of the Exchange will open up opportunity to minority retail shareholders to be part of the market they had contributed to.

    According to him, the demutualisation should be inclusive and should encourage participation by the generality of the people including shareholders that have been major stakeholders in the market.

    He said shareholders were in support of a provision in the draft rules for the demutualisation, which limits the maximum allowable equity stake for any individual or entity in the demutualised exchange to five per cent.

    “I think it is good for the shareholders, they should allow everybody to participate in the ownership, we are the growers of the market and we should be able to participate in the fortunes we have created. They should however ensure that nobody, no matter how big you are, should own more than five per cent in the Exchange,” Nwosu said.

    President, Constance Shareholders Association of Nigeria, Shehu Mikhail, described demutualisation as one of the best things to happen to the Exchange noting that it will create opportunities for the general investing public and also for the NSE itself.

    Demutualisation is the process of changing a member-owned stock exchange, otherwise known as mutual exchange, to a corporate entity owned by shareholders. In a mutual exchange, the three functions of ownership, management and trading are concentrated into a single group, hence the broker members of the exchange are both the owners and the traders on the exchange and they further manage the exchange as well.

    In a demutualised exchange, the three functions of ownership, management and trading are clearly separated. The draft rules by SEC simply defined demutualisation as “the separation of the ownership of the Securities Exchange from the right to trade on such Securities Exchange”.

    The NSE has been locked in intense grip of demutualisation with divergent views on the necessity, procedures and timing and other details of the exercise. The released of the draft culminated a four-year exercise to provide amenable template for the demutualisation.

    Established as Lagos Stock Exchange (LSE) in 1960, the stock exchange was conceptualized as a limited by guarantee not-for-profit organisation thriving on the goodwill, reputation and integrity of its members. While Nigeria’s doyen of accounting, Mr. Akintola William, is the only surviving initial signatory to the founding memorandum of the NSE, the membership list of the NSE has always included “the movers and shakers” of the Nigerian economy. Beside stockbroking firms and other capital market operators that are dealing members, members of the NSE currently included Alhaji Aliko Dangote, Chief Ernest Shonekan, Mr. Gamaliel Onosode, Mr. Oba Otudeko, Otunba Adekunle Ojora, Mr. Pascal Dozie, Chief Phillip Asiodu, Rear Admiral Allison Madueke (rtd.) and Senator Udo Udoma among others. Altogether, the NSE has some 360 individual and institutional members including some 255 active dealing members.

    Several State Investment Companies are also institutional members of the NSE, giving the States inputs into the operations of the NSE. These included Adamawa Securities Limited, Kaduna Investment Company, Kano State Investment and Properties Limited, Katsina State Investment and Property Development Company Limited, Kwara State Investment Corporation, New Nigerian Development Company Limited, Niger State Development Company Limited, Sokoto Investment Company Limited and Yobe Investment Company Limited among others.

    According to the draft of the demutualisation rules, obtained by The Nation, no single entity or person or related entities and persons should be permitted to own, directly or indirectly more than five per cent of the equity and or voting rights in the demutualised securities exchange.

    Besides, the rules stipulate that the aggregate equity interests of members of any specific stakeholder group such as stockbrokers and broker-dealer in the demutualised securities exchange should not exceed 40 per cent.

    The rules, made pursuant to section 313 of the Investments and Securities Act (ISA) 2007, stipulate that the securities exchange should initiate a process for determining the accurate list of members of the Exchange prior to the commencement of demutualization.

    The process of demutualization of the Securities Exchange should include an exchange of membership rights in the Securities Exchange for ownership of shares in the demutualised Securities Exchange.

    According to the rules, strategic investors should be given equity interest in the demutualised securities exchange subject to establishment of the facts that the strategic investor has technical expertise through previous experience in managing other Exchanges and the aggregate number of shares to be offered to the strategic investors shall not be more than 30 per cent of issued and fully paid up capital of the securities exchange. However, if the Exchange is in dire need of funds, it could issue a higher number of shares subject to approval of the Commission.

    The rules stipulate that the trading participants who are shareholders of the securities exchange shall with effect from the date of demutualization reduce their cumulative shareholdings in the demutualised securities exchange to not more than 10 per cent within five years.

    securities exchange and timelines for implementation of necessary structures to ensure the functional separation of commercial and regulatory functions, a detailed five year business development plan for the demutualized Securities Exchange together with the capital expenditure estimates and the sources of finance for the five year period, the manner in which the rights and liabilities of the existing members shall be treated in the demutualization, the procedure for the allocation of shares to the shareholders identified under subparagraphs (c) and (d) and a written declaration that demutualization shall not affect any rights and obligations of the Securities Exchange or render defective any legal proceedings by or against the Securities Exchange.

    Besides, the application must include the proposed timelines for the completion of operational manuals to guide the self-regulatory functions of the demutualized Securities exchange detailing the scope of regulatory functions to be performed by the demutualized Securities Exchange, the proposed rules of the demutualized Securities Exchange and the last audited financial statements of the Securities Exchange. However, the Commission may, in writing, require the Securities Exchange to provide any additional information which the Commission may require.

    The rules also stipulate the governance model, the resolution of the application and other details.

     

     

  • Lafarge Africa to pay N1.85b to Ashakacem’s minority shareholders

    Lafarge Africa to pay N1.85b to Ashakacem’s minority shareholders

    Lafarge Africa Plc has set aside about N1.9 billion as cash payments for the minority shareholders of Ashaka Cement Plc as Lafarge Africa wraps up a mandatory tender offer (MTO) that seeks to absorb minority shareholders of Ashaka Cement in a cash and equity deal.

    The extended application period for the MTO closed last Friday. Custodian and other agents are expected to submit all acceptances within this week. The MTO is expected to be completed in February with the listing of the additional shares.

    Following the consolidation of Lafarge’s businesses in Nigeria and South Africa into Lafarge Africa, Lafarge Africa had acquired 58.61 per cent majority equity stake in Ashaka Cement. The majority equity stake was previously held by Lafarge Nigeria (UK) Limited. The acquisition was done through a block trade at the Nigerian Stock Exchange (NSE).

    Now, Lafarge Africa is seeking to acquire the remaining 41.39 per cent equity stake held by other shareholders in Ashakacem in furtherance of the consolidation of Lafarge’s businesses.

    A tender document obtained by The Nation showed that Lafarge Africa would be offering 57 ordinary shares of 50 kobo each in exchange for 202 ordinary shares of 50 kobo each of Ashakacem. In addition, Lafarge Africa will pay N2 for every acquired Ashakacem’s share.

    Minority shareholders hold 927.009 million ordinary shares of 50 kobo each in Ashakacem, representing 41.39 per cent of the cement company’s total outstanding shares.

    With this, Lafarge is expected to issue 261.58 million ordinary shares and pay additional cash consideration of N1.85 billion as equity and cash consideration for the take-over of the 41.39 per cent equity stake held by minority shareholders in Ashakacem.

    Sources in the know said there were early indications that the MTO would be successful citing initial filing reports and recommendations by several analysts. Several analysts had recommended the MTO as attractive based on the valuation of Lafarge Africa and Ashakacem. Both companies are quoted on the NSE.

    The management of Lafarge Africa confirmed this in an email response to The Nation’s enquiry. According to Lafarge Africa, the process of the MTO went very well with very good response from both retail and institutional investors. “A high number of shares has been tendered”, the management said while still in the process of collating the acceptances.

    An investment banking source said the MTO would lead to 100 per cent holding of Ashakacem by Lafarge pointing out that Lafarge could exercise its right under Section 146(2) of the Investments and Securities Act (ISA) to compulsorily acquire remnant shares belonging to the minority shareholders once its total shareholding crosses the 90 per cent threshold. The same provision was used to complete the 100 per cent acquisition of Oasis Insurance by FBN Insurance Limited.

    In the event of some remnant minority shareholdings, Lafarge Africa would have to transfer the cash consideration and equities for the remaining shares to the custody of the registrar to the MTO, City Securities (Registrars) Limited.

    The MTO was triggered by the transfer of 58.61 per cent majority equity stake in Ashaka Cement previously held by Lafarge Nigeria (UK) Limited. Section 131 of the Investment and Securities Act (ISA) and Rule 445 of SEC make it mandatory for any institution or person that acquires at least 30 per cent of a company to make an MTO to other minority shareholders.

    Lafarge had on July 9, 2014 received shareholders’ approval to consolidate its cement businesses in Nigeria and combine these with South African operations to create a leading sub-Saharan building materials giant to be known as Lafarge Africa Plc. The consolidation was done by transferring Lafarge’s assets in South Africa and Nigeria to Lafarge Cement Wapco Nigeria Plc.

    Under the transaction, Lafarge Group transferred its direct and indirect shareholdings in Lafarge South Africa Holding Limited of 72.4 per cent and its equity stakes in three other cement companies in Nigeria-United Cement Company of Nigeria Limited, 35 per cent, Ashaka Cement Plc, 58.61 per cent and Atlas Cement Company Limited, 100 per cent to Lafarge Wapco for a cash consideration of $200 million and the issuance of some 1.4 billion Lafarge Africa shares to the Lafarge Group.

  • University Press seeks approval to raise new funds from shareholders

    University Press (UP) Plc may soon launch a supplementary equity offer as the printing and publishing company is seeking regulatory approval to raise new equity funds from existing shareholders.

    Investment banking sources said University Press plans to undertake a rights issue and has secured necessary endorsements from key stakeholders, especially the major individual and institutional shareholders.

    The planned offer has now entered the approval stage, after which the company will have its completion board meeting and open the application list for subscription by shareholders.

    Shareholders of University Press had in 2013 approved the new issue. In order to edge against uncertainties, shareholders in September 2014 approved a special resolution allowing an underwriter to underwrite the rights issue and a waiver of their preemptive rights to allow the underwriter to but unsubscribed shares.

    There are indications that the foreign majority shareholder, Oxford University Press, United Kingdom, which has recently increased its shareholding from 9.19 per cent to 10.61 per cent, may be interested in increasing its equity stake.

    According to sources, University Press will use the net proceeds of the rights issue to finance business enhancement programme aimed at boosting its operations. The company had spent some N115 million on capital expenditure in the immediate past business year.

    University Press currently has outstanding issued shares of about 431.41 million ordinary shares, largely held by widely disperse minority retail shareholders. The company is owned by more than 11,000 shareholders with three major investors holding 23.71 per cent. Oxford University Press holds 10.61 per cent equity stake. Cashcraft Asset Management Limited, a Nigerian investment firm, holds 7.71 per cent while Dr. Lalekan Are, who chairs the board of directors, holds the largest individual equity stake of 6.26 per cent.

    University Press is one of the oldest surviving companies in Nigeria. Incorporated in 1949, it converted to a public limited liability company and listed its shares in 1978. Fundamentally, it is the leading quoted printing and publishing company.

    The company recently distributed N150.99 million to shareholders as cash dividends for the immediate past year ended March 31, 2014. Similar dividend rate was distributed for 2013, 2012 and 2011 business years. Shareholders received a dividend per share of 35 kobo for the year ended March 31, 2014, the same amount received at least in 2013 and 2012.

    However, the company’s bottom-line contracted further as it struggled with sluggish sales and rising costs. Key extracts of the audited report and accounts of UP for the year ended March 31, 2014 showed that total sales rose marginally from N2.31 billion in 2013 to N2.44 billion in 2014. Gross profit however dropped marginally from N1.17 billion to N1.166 billion. The decline became more pronounced with pre-tax profit dropping from N393.3 million in 2013 to N348.12 million in 2014.

    After taxes, net profit slipped to N233.93 million in 2014 as against profit after tax of N260.70 million in 2013. This implied earnings per share of 54.22 kobo in 2014, lower than 60.43 kobo posted in 2013.

    However, total assets rose from N2.82 billion in 2013 to N2.97 billion in 2014. Shareholders’ funds also increased from N2.17 billion to N2.24 billion.

  • Shareholders’ group lauds insurance firm’s profitability

    Shareholders’ group lauds insurance firm’s profitability

    Shareholders under the aegis of Constance Shareholders’ Association of Nigeria, one of the frontline shareholders’ groups has passed a vote of confidence on Lasaco Assurance Plc, stressing that the latter has lived up to its pedigree.

    Shehu Mallam Mikail, National President, who gave this commendation on behalf of his group at the weekend shortly after its annual general meeting in Ilorin, Kwara state capital, said the insurance firm has proved through its impressive business fundamentals that it is one of the companies to beat in the sector.

    “This is one of the most transparent insurance firm its in Nigeria in giving accurate information to shareholders/stakeholders who believes in adherence to good corporate governance also taking bold steps to make sure that Nigerians show interest in having taking insurance policies and to believe in insurance companies and the company was able to make a profit after taxation of 271,405 in 2013 compare to 2012 which was 92,903 This is an encouraging development in an insurance industry.”

    Expatiating, Mikail said: “We would like to implore NAICOM to give adequate support to all insurance firms that abide to a good corporate governance so that Nigerians would be able to have confidence in Nigeria Insurance firms in order for people to be able to take one insurance policy or the others as we investors would be able to have confidence in investing in Nigeria insurance companies.”

    NAICOM, he further stressed, ” should build a better relationship with the insurance firms by giving prompt response to any required information by the companies and not wait until they are  penalised which does not necessarily required in other to build a room for the insurance industry in the country so that our economy would be able to have a sound understanding because most of Western World Insurance companies are the backbone of their economy which give adequate confidence to an investor to invest in their economy.”

  • Banks’ shareholders seek compensation

    Shareholders of defunct Afribank Plc,Bank PHB Plc and Springbank Plc have urged the Court of Appeal in Lagos to order their compensation following the revocation of the banks’ licences by the Central Bank of Nigeria (CBN) in 1999.

    They are praying the court to overrule a Federal High Court judgment by Justice Charles Archibong (as he then was) which dismissed their originating summons.

    According to them, the defunct banks’ assets can not be transferred free of charge to another entity without compensation to the shareholders.

    CBN, Nigeria Deposit Insurance Corporation (NDIC), Asset Management Corporation of Nigeria (AMCON), Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) are the respondents.

    Also joined in the appeal are Mainstreet Bank (formerly Afribank), Keystone Bank Limited (formerly Bank PHB) and Enterprise Bank Limited (formerly Spring Bank).

    The appellants, represented by Boniface Okezie, Adeyemi Kehinde and Adebowale Bolanle, said Justice Archibong was misconceived when he validated the respondents’ action.

    They said the respondents revoked the banks’ licences, transfered their assets free of charge to Mainstreet, Keystone and Enterprise banks, and de-listed their shares from the exchange.

    These acts, the shareholders said, were in breach of the law, motivated by malice and were based on inconsistent reasons not based on law.

    They are seeking damages, while urging the appeal court to uphold their appeal.

    “The court is respectfully urged to allow the appeal and grant the reliefs sought on the originating summons.

    “Damages should be assessed at the rate of the difference between the value of shares of the 9th (Afribank), 10th (PHB) and 11th (Spring) respondents on the stock exchange at the time of the intervention of the CBN governor in the banks in 2009 and their nominal value of N1 per share which is all that the respondents would have left to their shareholders by their unlawful and malicious action should the appeal succeed,” the appellants said.

    The shareholders said no compensation of any sort was paid to them following the banks’ takeover.

    According to them, SEC and the Exchange, which ought to protect their investments, succumbed to the CBN governor’s will and publicly approved the actions, going ahead to de-list the banks’ shares from the stock exchange without pursuing any form of compensation for their shareholders.

    However, CBN and SEC are urging  the appellate court to dismiss the appeal as lacking in merit and with substantial cost.

    They said the Appeal court cannot hear the originating summons because it was not heard at the lower court.

    Besides, Justice Archibong, they added, had dismissed the originating summons because it is “unsustainable” after the respondents filed preliminary objections against it.

    “We submit that, having regard to the fact of the case and in all the circumstances of this case, the Court of Appeal has no jurisdiction in the circumstances to consider the appeallants’ originating summons which has not been argued at all at the lower court as urged by the appellants and there being no appealable decision thereon,” CBN and SEC said.

    The appellants’ lawyer, Deacon Paul C. Ananaba (SAN), who led Mr Chuks Nwachukwu, said two of the banks are about to be sold while the appeal is pending.  “They’re proceeding to sell two of those banks,” he said.

    The presiding justice, Amina Augie, said, referring to AMCON: “Don’t sell anything.”

    AMCON is expected to respond to the amended notice of appeal.

    Justice Augie adjourned till January 21 next year for mention because other parties indicated that they would file cross-appeals.