The Nation Newspaper

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  • Firm suspends production over growing losses

    The board of directors of Greif Nigeria Plc has suspended its operations as the packaging company continues to wriggle in losses.

    At the board meeting at the Apapa, Lagos office of the company, directors of Greif Nigeria resolved that the company should stop receiving new orders from customers and also stop production for an indefinite period.

    The board stated that it took the decision because the company recorded a loss of more than N260 million in 2018 and the loss had also continued in the first quarter of the 2019 business year.

    According to the board, efforts made to win back key customers and also get price increase from the customers were yet to yield positive result.

    “It had, therefore, been resolved that the company stop receiving new orders from customers and also stop production for an indefinite period,” the company stated in a regulatory filing signed by its Managing Director, Mr David Onabajo.

    Greif Nigeria had suffered a major contraction in its business in 2018 as the packaging company struggled with significant decline in sales.

    Key extracts of the audited report and accounts of Greif Nigeria for the year ended October 31, 2018 showed that sales dropped by 62 per cent from N1.405 billion in 2017 to N534.611 million in 2018. As against modest profit of N77.55 million in 2017, the company posted pre-tax loss of N245.23 million in 2018. After taxes, net loss rose to N262.59 million in 2018 as against net profit of N49.42 million recorded in 2017. Earnings per share consequently declined from N1.16 in 2017 to a loss per share of N6.16 in 2018.

    Greif Nigeria had forewarned investors that the immediate past business year was a very challenging year for the company.

    Read also: Firms scale NCP’s hurdle for Afam power bid

    The company had stated that economic and competitive environment in the steel drum and packaging sector gave rise to a very tough situation for its business, which resulted in the closure of two of its branches during the 2018 financial year.

    Greif Nigeria could not meet the timeline for the filing of its 2018 audited financial statements for the year ended October 31, 2018 on the due date of January 29, 2019 because it had to carefully scrutinise the operations during the year.

    The company stated that the delay of its financial statements was due to the fact that the external auditors had to exercise due diligence on the financial statements during the audit exercise to ensure all tax related issues were resolved, and make certain that the results reflect the actual position of business operations for the year, as well as conform with all relevant statutory requirements.

  • Firms scale NCP’s hurdle for Afam power bid

    The National Council on Privatisation (NCP) has granted approval to Diamond Stripes Consortium, Transcorp Power Consortium and Unicorn Consortium to proceed to the financial bids opening stage for the acquisition of 100 per cent shares in the Afam Electricity Generation Company (Afam Power Plc & Afam Three Fast Power Limited).

    Rising from its first meeting at the Presidential Villa, Aso Rock, Abuja, the Council noted that the two consortia met the benchmark score of 750 points after evaluation in accordance with the criteria set out in the Requests for Proposal (RfPs).

    The BPE, in a  statement said other decisions taken by the Council include: approval for Quest Electric Nigeria Limited to proceed  to the financial bids opening stage for the re-privatisation of the Yola Electricity Distribution Company (YEDC); appointment of Lead Capital Consortium as Financial Adviser for the restructuring, recapitalisation and partial privatisation of the Bank of Agriculture (BoA); and delisting of Transcorp Hilton Hotel, Abuja from post Privatisation monitoring by the BPE.

    Others are privatisation of the Nigeria Communication Satellite Limited (NigComSat) through a strategic core investor sale and commencement of the process of listing it in the schedule of the Public Enterprises (Privatisation& Commercialisation) Act 1999; and the appointment of Vesta Healthcare Partners as consultant to carry out a diagnostic review of the Nigerian Health Sector.

    The privatisation of Afam Power Plc & Afam Three Fast Power Limited could not be concluded during the first round of the power privatisation in 2013 due to issues arising from gas supply to the plant.

    Following the termination of the Share Purchase Agreement (SPA) signed between Taleveras (the then Preferred  Bidder) and BPE in 2016, Council at its meeting of 2107  approved the privatisation of the enterprise based on a strategy to be recommended by the Transaction Advisers.

    For the YEDC, although it was successfully privatised and handed over to the core investor in 2013, a force majeure was declared in 2015 by the core investor citing insecurity in the Northeast region of the country. Following this, the company was duly repossessed by the Federal Government.

    It is expected that the successful bidders will be responsible for operating the generation and distribution companies, making the necessary investments to improve the generation and distribution networks and customer service in line with the objectives of the Federal Government of Nigeria set out in the National Electric Power Policy (NEPP).

     

  • Prestige Assurance’s net profit drops by 20%

    Prestige Assurance Plc suffered contraction in its profitability in 2018 despite considerable growth in the insurance company’s top-line. Net profit dropped by 20.3 per cent to N423.8 million in 2018 despite 37.7 per cent growth in gross premium to N4.66 billion.

    Key extracts of the audited report and accounts for the year ended December 31, 2018 showed that Prestige Assurance’s gross premium increased from N3.39 billion in 2017 to N4.66 billion. Profit before tax however decreased from N697.99 million in 2017 to N645.43 million in 2018. After taxes, net profit dropped from N531.84 million in 2017 to N423.8 million in 2018. With these, earnings per share declined from 9.90 kobo in 2017 to 7.89 kobo in 2018.

    Prestige Assurance had undergone a major capital restructuring in 2018. The insurance company had in June 2018 concluded share reconstruction exercise that resulted in cancellation of about 1.6 billion ordinary shares of 50 kobo each. The reconstruction was undertaken to remove bubble assets.

    Under the share reconstruction, Prestige Assurance had reduced its share capital from N2.685 billion or 5.370 billion ordinary shares of 50 kobo each to N1.909 billion or 3.817 billion ordinary shares of 50 kobo each in the issued and fully paid up ordinary shares of the company.

    This led to reduction of N776 million or 1.55 billion ordinary shares. “The share capital so reduced will be applied in writing off the capital of the company which is lost or unrepresented by available assets,” according to a regulatory filing on the reconstruction.

    Prestige Assurance had stated that the essence of the capital reconstruction was to enable it wipe out its accumulated retained losses of N776.511 million.

    The company noted that the reconstruction would reposition it on a trajectory for subsequent accumulated retained profit while creating more value to its shareholders.

    Besides, the reconstruction would allow the company to declare dividend and improve its perception in the market thereby making it more competitive.

    Shareholders of the insurance company had on Friday, August 18, 2017 at its 47th annual general meeting (AGM) in Lagos approved the share reconstruction and authorised the board of directors to take necessary actions to implement the share reduction.

    Prestige Assurance in November 2018 distributed 1.53 billion ordinary shares of 50 kobo each to its shareholders as bonus shares, almost restoring 1.6 billion ordinary shares that it had cancelled under a recent capital restructuring.

    Prestige Assurance distributed bonus shares of 41 ordinary shares of 50 kobo each for every 100 ordinary shares of 50 kobo each held as at the close of business on November 27, 2018.

    With then current issued outstanding shares of 3.817 billion ordinary shares of 50 kobo each, Prestige Assurance issued 1.53 billion ordinary shares on the basis of 41 shares for 100 shares.

    The company capitalised N782.57 million from its share premium account to pay for the new shares issuance. The scrip issue increased the company’s issued share capital from N1.91 billion or 3.82 billion ordinary shares to N2.69 billion or 5.38 billion ordinary shares.

    Established in 1952 as a branch office of The New India Assurance Company Limited, Mumbai, Prestige Assurance was incorporated as a limited liability company on January 6, 1970 and licensed to write all classes of non-life insurance in Nigeria. In order to reflect the majority shareholding of the Nigerian public in the company, its name was changed to Prestige Assurance Plc on September 24,1992 in line with the indigenisation decree passed by government of Nigeria. After successful recapitalisation in 2007 and subsequent rights issue in 2015, Prestige Assurance is currently a subsidiary company of The New India Assurance Company Ltd, Mumbai, which has majority equity stake of 69.5 per cent shareholding.

  • Newrest ASL blames illiquidity, costs for voluntary delisting

    The board of Newrest ASL Nigeria Plc has blamed the illiquidity of its shares and the costs of maintaining listing on the Nigerian Stock Exchange (NSE) for its decision to voluntarily delist the shares of the company from the Exchange.

    Newrest ASL in February 2019 filed application to delist its entire 634 million ordinary shares of 50 kobo each from the Daily Official List of the Exchange. The board of Newrest ASL had approved the commencement of the voluntary delisting in December 2018 and presented the proposal for approval of shareholders at an extraordinary general meeting in January 2019. Shareholders approved the board’s recommendation to delist.

    Head, Listings Regulation, Nigerian Stock Exchange (NSE), Godstime Iwenekhai, had stated that the voluntary delisting was due to inability of Newrest ASL to meet up with the 20 per cent free float requirement of the Exchange.  The NSE, however, did not list Newrest ASL among companies with free float deficiencies.

    Explaining the reasons for voluntary delisting, the company stated that its purpose for listing was to raise capital and provide liquidity to its shareholders but the current illiquidity at the stock market has rendered this primary objective unattainable.

    The company noted that there was a significant fall in trading volumes from about 78.09 million shares in 2017 to 9.03 million shares in 2018.

    “Thus, neither the company nor any shareholder is benefitting from the continued listing on the NSE,” Newrest ASL stated.

    According to the company, the attendant cost and time required to comply with listing requirements such as quarterly and annual fillings, annual certifications, filing fees, penalties or sanctions, corporate governance certifications and many meetings are not commensurate with the benefits accruable to the company.

    The company added that the increasing competitive environment and the struggle to defend market share have resulted in market pressure to reduce price, which might significantly impact operating margin.

    Newrest Group, which, together with its affiliates, holds majority equity stake of 81.82 per cent in Newrest ASL, is the promoter of the voluntary delisting and it is seeking to buy out minority shareholders who may not want to be part of an unlisted company.

    Under the proposal, Newrest Group will pay N7.70 per share to every shareholder exchanging their Newrest ASL shares. Alternatively, shareholders may decide to stay in the unlisted company. Newrest ASL has extended the period for the acceptance of the exit consideration till April 25, 2019.

  • Man charged with kidnapping

    A 29-year-old man, Wisdom Gabriel, was yesterday brought before an Ebute Meta Chief Magistrates’ Court, Lagos, for allegedly kidnapping Mr. Samson Adebisi.

    Gabriel was brought before the court on charges bordering on kidnapping and demanding a ransom.

    He pleaded not guilty.

    Prosecuting Inspector Kehinde Omisakin had told the court that the defendant committed the offences on March 1, at about 5:20p.m., at Epe Bridge area of Lagos.

    Read also: Court admits video of cleric confessing to beheading woman

    Omisakin alleged that Gabriel kidnapped Adebisi, 55, and demanded N350, 000 ransom after being kept for four days in a hideout.

    Chief Magistrate A.O. Komolafe admitted the defendant to N500, 000 bail with two sureties each in the like sum.

    She adjourned till May 23.

     

  • ‘Afreximbank’ll create digital ecosystem for finance flows’

    The African Export-Import Bank (Afreximbank) is working, with the support of African Union (AU), to create a digital ecosystem that will eliminate the major bottlenecks to trade finance flows within Africa, its President, Prof. Benedict Oramah, said Washington D.C.

    Delivering an address on 11 April at the Initiative for Global Development (IGD) Frontier 100 Forum organised by the IGD on the sidelines of the World Bank/IMF Spring Meetings, Prof. Oramah said one of the major constraints to intra-African trade was lack of information to support intra-regional trade and investments. That was why many African countries were importing products from outside the continent while neighboring countries were exporting the same products at a much lower cost.

     

     

  • Access Bank grows profit by 66% to N45.1b in Q1

    Access Bank Plc sustained impressive growths in the top-line and bottom-line in the first quarter as the first-tier commercial banking group grew its pre-tax profit by 66 per cent to N45.1 billion in the first quarter.

    Key extracts of the interim report and accounts of the bank for the three-month period ended March 31, 2019 released yesterday at the Nigerian Stock Exchange (NSE) showed that gross earnings rose by 16.5 per cent to N160.12 billion in first quarter 2019 as against N137.54 billion in first quarter 2018. Profit before tax jumped by 66 per cent from N27.44 billion to N45.10 billion. After taxes, net profit leapt by 86.03 per cent from N22.12 billion in first quarter 2018 to N41.15 billion in first quarter 2019. Earnings per share also rose from 77 kobo to N1.39.

    The balance sheet also emerged stronger within the period. Total assets rose by 29.9 per cent from N4.95 trillion in December 2018 to N6.43 trillion in March 2019. Customer deposits leapt by 53.1 per cent from N2.56 trillion to N3.92 trillion while shareholders’ funds increased by 17.8 per cent from N482.64 billion by December 31, 2018 to N568.74 billion by March 31, 2019.

    Access Bank and Diamond Bank Plc had during the period consummated a merger, which led to enlarged Access Bank.

    Group Managing Director, Access Bank Plc, Mr Herbert Wigwe, said the increased earnings during the period underscored the value potentials of the newly expanded business model.

    “Following the successful completion of the merger with Diamond Bank in March 2019, we have now fully positioned ourselves in the retail market with a view to bringing the power of banking to the doorsteps of millions. We are providing a broader platform to facilitate payments services in Nigeria and across Africa, by harnessing our significantly enhanced digital technology capabilities,” Wigwe said.

    He noted that the capital and liquidity position of the bank remained above regulatory levels, with capital adequacy ratio (CAR) at 19.5 per cent and liquidity ratio of 47.6 per cent, which further demonstrated the capacity of the enlarged balance sheet to cope with possible negative shocks.

    He pointed out that the bank has made solid progress throughout the first quarter of 2019 in line with its 2018-2022 five-year strategy, assuring that it remains committed to the achievement of its strategic imperatives going forward as it continues to invest in people, technology and most importantly, product offerings to customers.

    “Our focus is to become the world’s most respected African Bank by leveraging on the strength of our retail and wholesale business to provide unrivalled value to our customers,” Wigwe said.

     

  • R. Kelly’s bank account in the red

    R. Kelly is in a financial bind after his failure to pay child support and rent on his infamous studio.

    One of Kelly’s accounts was left in the red after $150,000 was seized. According to court documents obtained by The Blast, Wintrust Bank contacted one of the singer’s creditors to inform them of insufficient funds and balance of negative $13.

    The publication stated that Kelly does have two other accounts with Bank of America that holds a total of $154,527.22 combined. However, those accounts were seized by the former landlord, except $625.

    The former landlord was awarded a $173,000 judgment, and in turn, subpoenas were sent to Sony, ASCAP, and other accounts where the singer holds money.

    The landlord then received $154, 527.22 from Bank of America. But, according to reports, he still wants the remaining balance. As a result, the landlord has requested that the judge release the remaining balance to settle the debt.

  • El-Rufai sacks political appointees

    KADUNA State Governor Nasir El-Rufai has directed all political appointees to submit letters of resignation by April 30.

    The move to enable the governor to exercise his constitutional prerogative to decide on re-appointments while also giving the Ministry of Finance adequate time to compute severance payments and reconcile any liabilities.

    According to the directive, each notice of resignation must be submitted along with a handover note, signed by the political appointee on behalf of the ministry, department agency (MDA) or office to which he or she had been appointed.

    “All resignation letters should be properly addressed to the Principal Private Secretary,” the statement said.

    A statement issued by the governor’s spokesman, Samuel Aruwan, stated that El-Rufai thanked all political appointees for their contributions and service to the state during his first-term.

    The statement reads: “As he constitutes the team that will assist him in his second-term, the governor said he expects the process to be enriched by the handover notes from the political appointees, and the report of the Transition Committee headed by the Deputy Governor-elect, Dr. Hadiza Sabuwa Balarabe.

    Read also: El-Rufai and challenges of consolidation

    ”The following appointees are expected to comply with the directive: All Commissioners in the State Executive Council, All Permanent Secretaries, Special Advisers, Directors-General, Executive Secretaries, Managing Directors, General Managers and other Heads of Agencies, Senior Special Assistants, Special Assistants and Technical Assistants to the Governor, other than the Kashim Ibrahim Fellows.

    “Excluded from compliance with this directive are full-time commissioners of certain State Executive bodies, who retain their tenured appointments in the following agencies: i. Fiscal Responsibility Commission, Civil Service Commission, Judicial Service Commission, Assembly Service Commission, the State Independent Electoral Commission (SIECOM), the Peace Commission, Public Procurement Authority and Water Regulatory Authority.”

  • Four unemployed men accused of cultism

    Four unemployed men yesterday appeared before a Tinubu Magistrates’ Court, Lagos, for allegedly belonging to a secret society and causing mayhem in public.

    The defendants, Hammed Odugbemi, 26, Afeez Amiroko, 27, Adefola Adebayo, 32, and Akeem Kolawole, 34, are facing a three-count charge of conspiracy, unlawful assembly and breach of the peace.

    They pleaded not guilty.

    Prosecuting Inspector Ajaga Agboko said the defendants committed the offences on April 5, at 10pm, on Addo Road, Ajah, Lagos.

    Read also: Corps members renounce cultism, drug abuse

    Agboko alleged that the defendants were members of a cult, adding that they fought and fomented trouble, causing mayhem in public, in contravention of sections 42, 44 (1) and 411 of the Criminal Law of Lagos State, 2015.

    Magistrate T. A. Anjorin-Ajosewere granted them N50, 000 bail each with one surety each in the like sum.

    He said the sureties should be relatives of the defendants.

    The case continues on May 10.