DAAR Communications Ltd, the owners of AIT and RayPower TV and Radio respectively are owing employees N1.2 billion. This was contained in the notes to the account included in the company’s interim accounts for the first quarter of 2018.
According to the notes, the company has an accrued Salary of N1,282,400,000 for the quarter ended March 2018. The company has been owing staff salaries and the amount seems to be on a steady rise. In 2016, the company reported accrued salaries of just over N1 billion. By the end of 2017 it had risen to N1.25 billion.
DAAR has been owing staff salaries for years now, which we explained in an article on Nairametrics last year. The company’s payroll is about N1.2 billion annually.
Why it matters
- DAAR is a quoted company and the only full-fledged media company listed on the Nigerian Stock Exchange.
- The company has been raking in losses for years now and has negative retained earnings of about N6.8 billion.
- Fortunately, it has about N13 billion in its share premium account which it can set off against the negative retained earnings.
- It might likely raise some capital at some point in the future if it desires a turnaround. However, it might have to resolve issues bothering on unpaid salary and staff welfare before any potential investor takes over.
- DAAR stock trades at 48 kobo per share. Its low liquidity is attributed to its stable share price.