Ijeoma Oduonye, Managing Director and Chief Executive Officer (MD/CEO) of Cutix Plc has said the company has proven to be the best-kept secret stock of the Nigerian stock market and a must-have in every investment portfolio “because of its remarkable performance and returns to shareholders over the years.”
Oduonye noted this while commenting on the company’s performance at the Facts Behind the Figures programme at the Nigerian Exchange (NGX) Limited as part of activities to mark the 40th-anniversary celebration of the company.
In her speech, she described Cutix as, “A quintessential stock and the best example of a well-managed indigenous company in Nigeria as its performance history showed that it outperformed the overall NGX market in return by over seven times.”
She said the company was able to achieve this remarkable performance despite the turbulent macroeconomic environment, an influx of sub-standard cables and wires, unavailability of forex, unfriendly government policies, a multiplicity of taxes, port congestion and a dearth of qualified technical manpower.
She explained that the company’s annual profit after tax has increased consistently over the years as well as the value of annual dividends received by investors, adding that the company has also declared bonus issues almost every three years in the ratio of one for one, one for two, and one for three and with most of the declarations being one for one.
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Oduonye remarked that because dividends have been declared every year since 1989 till date, consequently, N1,040 invested on behalf of a new baby 35 years ago would have grown to N1,925,042.88 today and N5,200 invested by a youth corps member 35 years ago would have appreciated to the value of N9,625,246.44 presently.
In the same vein, a businessman who had invested N520,000 in the stocks of Cutix 35 years ago would have had his investment appreciated to the tune of N962,524,996.44 presently.
She said the company has also been consistent in exercising its statutory obligation to the government as its payment of tax to the government has always been unswerving and timely.
She said the company’s revenue grew from N3.2 billion in 1987 to N30 billion in 2022 while its profit before tax appreciated from N111 million to N3.996 billion in 2022, adding that in the same manner, gross dividends rose from N2.9 million in 1992 to N1.215 billion in 2022.
The company has projected revenue of N12 billion for 2023, N15.6 billion for 2024 and N20.3 billion for 2025 and PBT of N2.1 billion for 2023, N2.8 billion for 2024 and N3.650 billion for 2025.
Cutix Plc, manufacturers of cables and wires, commenced commercial operation in 1984 with a capital of N400,000 and thereafter raised N1.6 million through an Initial Public Offer (IPO) in 1987.
Currently, the share capital has grown to N1.76 billion through the issuance of bonus shares.
Its products are ranked among the best in the Nigerian cable market and beyond, a development which has made Cutix to be the only cable manufacturing company in Nigeria. It has also been recognised by the Federal Institute of Oil and Gas Research and Hydrocarbon on excellence in cross-linked polyethylene, low voltage power, armoured and non-armoured cable manufacturing, marketing and distribution in 2021.
