Imagine owning a business that post no revenues? This is often synonymous with Startups and businesses still at conceptualization stages. Now, imagine if this business is decades old and publicly listed on the Nigerian Stock Exchange.
Union Dicon Salt Ltd, a publicly quoted Nigerian company, has for 23rd straight quarter (5 years and 3 quarters) posted no revenues. This dates back to December 2012 and could even be longer.
We first wrote about this company’s going concern status here
According to its latest annual report, it posted a loss after of N88.6 million, mostly made up of operating expenses. The company has also posted negative shareholder funds for over 5 years and only in 2017, revalued its assets, thus reverting to a positive shareholders funds.
Role of the NSE
As a listed company, the NSE rules does not require that the company post revenues after it has been listed. However, it is not a requirement before a company is listed on the Nigerian Stock Exchange. Companies that are bankrupt are however expected to be de-listed.
Despite this, some opine it is the responsibility of the NSE to inform investors of listed companies who are technically insolvent or at risk of doing so.
The company also has serious backers (TY Danjuma, CBO Capital Partners), so it appears the NSE believes they might be an injection of capital in the near term.
About Union Dicon
Dicon Salt Limited and Union Salt Limited which were incorporated as private limited liability companies on 11 October 1984 and 30 May 1991 respectively. The Companies were merged and simultaneously converted into a public limited liability company on 7 May 1993 to become Union Dicon Salt Plc. The Company became listed on the official listing of the Nigerian Stock Exchange on 23 September, 1993.
The principal activity of the company is the processing of crude salt. The company is also involved in the sales of packaged water in sachets and plastic bottles. The issued share capital of the Company is held thus: 23% by Aims Limited, 16% by Defence Industries Corporation, 15% by CBO Capital Partners; 12% by Danjuma T.Y, 7% by Taraba Fisheries Ltd, 7% by T.Y. Holdings Ltd, 1% by Danjuma Grace Elizabeth, 4% by UDS Plc(Staff Trust Fund) and 15% by others