- The board of Portland Paints and Products Nigeria Plc has received its shareholders’ nod to raise its share capital by N500 million by a way of rights issue.
- Addressing the shareholders at the company’s yearly general meeting held in Lagos, yesterday, the company’s Chairman, Larry Ettah, explained that for strategic reasons, the board is not recommending the payment of dividend for the year ended 31st December 2014 but hoped that with the company’s improved performance, this may not be a challenge anymore.
- Justifying the need to re-position the Company for improved performance into the future, Ettah said:
“Consequently, we are realigning our portfolio and making strategic shifts where necessary. We will continue to focus on innovation and seek opportunities to introduce new offerings into our portfolio of brands as well as build capacity in our people. “In pursuit of plans to improve returns and address the high leverage position of the company and our other business expansion plans, the Board has recommended for your approval a capital raise by way of Rights Issue. The Board will therefore be glad to have your kind approval.”
- The company’s profitability rose by 159 per cent, from a profit after tax of N57.3 million in 2013 to a profit after tax of N148.6 million in 2014, while operational profit also grew from N174.3 million in 2013 to N304.5 million.
- Ettah noted that the outlook for the Nigerian economy in 2015 is expected to be significantly affected by low crude oil prices, increase in exchange rates of Naira against major currencies, national security issues and the political risk associated with the elections.
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