Despite that Nigeria’s economy witnessed a Gross Domestic Product (GDP) growth of 6.87 percent in 2013, far ahead of global GDP growth rate of 3 percent and that of sub-Saharan Africa growth rate of 5.1 percent, the challenges in 2013 were enormous to so many companies.
Companies that were able to weather the storms in 2013 ended the year with impressive performances. One of these companies is Chemical and Allied Products (CAP) plc, which reported improved top-to-bottom lines.
In view of its good performance, the board recently got shareholders approval to pay final dividend of N700 million, representing 100 kobo for every 50 kobo ordinary share held by shareholders whose names appeared in the register of members at the close of business on May 19, 2014.
This dividend payout was in addition to the interim dividend of 125 kobo per share, which the company paid on November 19, 2013. This brought the total dividend for 2013 financial year to N1.575 billion, representing 225 kobo per share.
The company’s dividend history in the past five years shows consistency in terms of reasonable percentage of profit after tax (PAT) it declared as dividend. In 2009, it declared 94 percent of its PAT as dividend; in 2010, it was 99 percent; in 2011, it declared 95 percent of its PAT as dividend; in 2012, it was 85 percent, while in 2013, it declared 98 percent of its PAT as dividend. UAC of Nigeria plc holds 50.09 percent or 350,652,700 units of CAP plc issued share capital.
Larry Ettah, chairman, CAP plc, told the shareholders recently at the 49th annual general meeting that “despite the challenging operating environment in 2013, your company ended the year with an impressive performance.”
The company recorded a turnover of N6.2 billion, a growth of 18 percent over the previous year of N5.231 billion and gross profit of N3.155 billion, against N2.599 billion in 2012.
Its profit before tax (PBT) was N2.1 billion, which represents an increase of 26 percent over the previous year level of N1.66 billion.
PAT rose by 27 percent from N1.12 billion in 2012 to N1.42 billion in 2013.
Basic and diluted earnings per share (EPS) of CAP, as of December 31, 2013, was 203 kobo from 199 kobo in 2012. Total equity of the company stood at N1.268 billion from N1.12 billion in 2012.
Ettah said: “We expanded our spread during the year with the opening of eight new Dulux colour shops in Umuahia, Dopemu, Akure, Jigawa, Abuja, Katsina, Aba, and Ughelli. We successfully executed the Dulux Mobile Room Makeover, an innovative marketing campaign in the Nigerian clime, to the delight of our teeming consumers. We commenced ink-jet coding of our product packages, making adulteration of the product more difficult. We will ensure that our products continue to meet global quality standards; hence, retained the NIS ISO 9001: 2008 certification of the Standards Organisation of Nigeria (SON).”
He noted that CAP will consistently drive to conduct its operations in a ‘healthy and safe manner, complying with all relevant laws and regulations and ensuring minimal impact on the environment, and was rewarded in the year with the award for the first time, of ISO 14001:2004 Environmental Management System (EMS) certification.’
On the challenges of the economy, the chairman noted the growing insecurity in the Northern part of the country with its attendant consequences in the loss of lives and properties and the denial of the enabling environment needed for businesses to thrive.
“We hope that policy makers will ensure that increased tempo of political activities does not negatively affect the business and economic environment,” he said.
Iheanyi Nwachukwu
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