AG Leventis has announced plans to increase its capital base in view of the recent economic challenges in the country. This was announced by the company’s Executive Vice-Chairman and CEO, Michael Economakis, reports Vanguard Newspapers.
Further explaining how the company is planning to achieve this, Economakis revealed that the company is looking to attract foreign investors who would provide additional capital needed to drive the company’s proposed plan to exploit new industries and sectors. The company expects that this would result in an enlarged product collection. The key sectors mentioned by Economakis include automobile, fast moving consumer goods and agriculture.
‘We are discussing with foreign investors, hopefully there will be capital inflow very soon. This capital inflow will assist us in having better cash flow, there would be reduction in our cost of funds and we will be able to expand our product portfolio’, Vanguard reports Economakis as saying.
However, as to the amount the company seeks to raise as well as the specific methods and partners involved, Economakis mentioned that they will be disclosed in the future, as discussions were still ongoing.
This proposed capital boost is coming hot on the heels of the company’s recent H1 financial report which declared N494 million loss representing a 298% decline in profit before tax against the 2015 half year. A 9% increase in revenue could not offset the 12% rise in operational expenses and 24 % rise in cost of sales. Economakis hoped that the new capital drive would help the company return to profitability soon.
News Team/ Vanguard Newspapers