The shareholders of Chemical and Allied Products Plc (CAP Plc), a subsidiary of UAC of Nigeria Plc Tuesday gave the board their approval to pay N1.54billion as dividend representing 220kobo for every 50kobo ordinary share to shareholders on the Register of Members at close of business on May 26, 2017. As at Tuesday June 13, the share price of CAP Plc stood high at N37.8.
The shareholders gave the approval at the company’s 52nd Annual General Meeting held in Lagos. At the meeting, the shareholders received and adopted the company’s audited financial statements for the year ended December 31, 2016, the report of the directors, external auditors, and audit committee thereon.
CAP Plc, manufacturer of Dulux, a leading global paint brand recorded a respectable performance against the backdrop of an extremely challenging economic and business environment with a turnover of N6.81billion, representing a decline of 3% over previous year. The operating profit was N2.32billion, a decline of 10% over 2015.
Larry Ettah, Chairman CAP Plc in his address at the Annual General Meeting said that “The business expanded its distribution network by opening 5 Dulux Colour Shops in the course of the year. In a bid to gain market share at the onset of the recession, a strategic decision to play more aggressively in the standard segment of the paint market was taken. We also increased our offering by the introduction of CAP Screeding Filler, a pre-decoration product to complement both our premium and standard brands.”
The Chairman noted that “The Company retained its ISO 9001:2008 and achieved re-certification of ISO 14001:2004 on Quality and Environmental Management Systems, respectively. We continue to offer high quality products and services to customers while complying with regulatory requirements and conduct our operations in a healthy and safe manner, ensuring minimal impact on the environment.”
On the outlook for the year, Ettah stated that “We will leverage on the opportunities proffered by the 2017 budget for the Real Estate sector. We will be future-proofing our business by focusing on innovation and expanding local product offerings. We will also pilot colour advisory services to professionals in the building industry to further consolidate our leadership in the industry.”
The Chairman stated that “The Company invested the sum of €609,605, to acquire an in-plant tinting technology, to modernize its paint production processes, while improving efficiency and delivering prompt customer service. The Plant was commissioned in April 2017. This is expected to boost performance in the year.”
Iheanyi Nwachukwu
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