Mansard Insurance Plc has explained why it did not pay dividends following the release of its 2014 Full Year results. Following a tweet question from an @ugodre follower, @mayowaowolabi on twitter to the company’s twitter handle @Mansardinsure. The company confirmed it decided not to pay dividends because of the cost of acquiring Penman Pensions. The company also explained that it spent money on upgrades of its infrastructure.
Mansard Insurance, now renamed Axa-Mansard Insurance Plc acquired 60% equity in Penman Pensions in January 2015.
See tweets below.
@MansardInsure is Mansard going to pay dividends to shareholders?, there's been no news of this cc @ugodre @proshare
— Mayowa Owolabi (@mayowaowolabi) May 6, 2015
@mayowaowolabi @ugodre @proshare At the 23rd annual general meeting (AGM), The Chairman, Mr. Victor Osibodu, said that the company did not
— AXA Mansard (@AXAMansard) May 7, 2015
@mayowaowolabi @ugodre @proshare propose dividend due to the investments made in Penman Pensions limited as well as the revamp and upgrade
— AXA Mansard (@AXAMansard) May 7, 2015
@mayowaowolabi @ugodre @proshare of technology infrastructure, which was financed from the company’s working capital.
— AXA Mansard (@AXAMansard) May 7, 2015
Excerpts from Chairman’s statements
In line with our overall strategic growth objectives, your company successfully obtained regulatory approvals to acquire 60% equity stake in Penman Pensions Limited. This was done entirely without borrowing due to the prevalent high interest rate environment in the latter half of the year. We have invested your company’s funds in this opportunity and we are confident of superior returns from it in the years to come.
Also, in order to compete favorably in the emerging technology-driven market we have embarked on a robust project to revamp/upgrade our technology Infrastructure. We have developed a set of IT strategic initiatives and implementation roadmaps to actualize this aspiration with attendant cost implications and significantly positive impact on our business anticipated.
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