Business News
Mutual Benefit to propose dividend for the first time since 2008
Shareholders of Mutual Benefits Assurance Plc finally have a reason to smile, as the company appears set to break its 9-year dividend drought.
In a recent notice sent to the Nigerian Stock Exchange informing it of board approval for its 2017 results, the company hinted at the possibility of dividend payment. Mutual Benefit last paid a dividend in 2008.
At its meeting held on the 22nd of February 2018, Mutual Benefit’s board of directors approved dividend payment. Details of the recommended dividend will be communicated to the Exchange (NSE) after the approval of the audited financial statements by the National Insurance Commission (NAICOM).
Insurance companies on the NSE, have a history of poor performance in terms of price appreciation and corporate governance. The recent shift in the minimum price floor to N0.01 left many insurance stocks hard hit.This may have been an impetus for the proposed dividend payment.
How were accumulated losses wiped?
As at when this article was written, Mutual Benefit was yet to publish its 2017 Full results. However, its most recent result was its 2017 9 Months results which showed that the company had accumulated losses (negative retained earnings) of ₦1.2 billion.
Companies are barred from paying dividends while they have negative retained earnings (This indicates Mutual Benefits now has positive retained earnings. The company does not also have a Share Premium account, which is typically how accumulated losses can be set-off against to allow for dividend payments.
Its recent rights issue which sold for 50 kobo did not have any Share Premium thus we do not know for sure how the company will fund dividend payment.
Mutual Benefits shares are currently trading at ₦0.33 in today’s trading session, down 2.94%. Year to date, the stock is down 34.94%.
Results for the 9 months ended September 2017 show gross premium written increased from N9.8 billion in 2016 to N10.5 billion in 2017. The company made a profit before tax of N1.1 billion in 2017 as against a loss before tax of N324 million in 2016.
It could pay dividends this year if its profits for the year is so good that it exceeds the accumulated losses and retains some profits where it can pay dividends from.
Spotlight Stories
Tip Jar, Twitter’s new giveaway feature that lets users send money to you
Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.
Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.
According to the blog post, “Tip Jar is an easy way to support the incredible voices that make up the conversation on Twitter. This is a first step in our work to create new ways for people to receive and show support on Twitter – with money.”
The new feature utilizes different payment platforms like PayPal, Venmo, Patreon, CashApp, and others.
Users can link their Twitter accounts with Tip Jar to any of these payment providers. Twitter takes no cut.
You’ll know an account’s Tip Jar is enabled if you see a Tip Jar icon next to the Follow button on their profile page. Tap the icon, and you’ll see a list of payment services or platforms that the account has enabled. Select whichever payment service or platform you prefer and you’ll be taken off Twitter to the selected app where you can show your support in the amount you choose.
Twitter has released series of features this year as part of its efforts to grow Twitter’s user base to 315 million daily active users by the end of 2023.
The company also launched Twitter crop where images don’t get crop again on Twitter for Android or iOS. Standard aspect ratio images (16:9 and 4:3) will now display in full without any cropping and images will look just like they did when you shot them.
Lauren Alexander, a Twitter spokesperson said, “Today’s launch is a direct result of the feedback people shared with us last year that the way our algorithm cropped images wasn’t equitable, The new way of presenting images decreases the platform’s reliance on automatic, machine learning-based image cropping.”
Twitter has tested several features and more will be rolled out soon.
Business
Customs Apapa Command generates revenue of N65.4 billion in April
This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.
