The management of Goldlink Insurance Plc last week obtained its shareholders’ permission to proceed with a proposed rights issue which will enable the company to raise about ₦3.3bn for the repositioning of its business operations.
This was disclosed by Goldlink’s Acting General Manager, Mrs Funke Moore, who spoke during the company’s annual general meeting in Lagos. According to her, the projected ₦3.3bn will be used to restructure the business and ensure profitability. She also disclosed that the initiative has already received the approval of the National Insurance Commission (NAICOM).
Our recapitalisation will place us in a vantage position and repositions the company to compete favourably. Since the reconstitution of the present board by the regulator in 2016, through regulatory intervention, we have been able to restructure and gradually return to market reckoning. -Funke Moore
Speaking further, she noted that the company reported a ₦1 billion profit for the financial year ended December 31st, 2017. The company also recorded a similar result for the first quarter of 2018, a development Mrs Moore said is indicative of the company’s rebound after previously experiencing financial difficulties.
Goldlink Insurance Plc was incorporated in 1992 as a private limited liability but became listed on the Nigerian Stock Exchange in 2008. NAICOM took over the affairs of the company in 2012, following anomalies in its financial statements.
Meanwhile, available information on the NSE website shows that Goldlink Insurance Plc’s latest result is for the year ended December 31st, 2015. The result was however filed in October 2017, and its details show that the company earned a gross premium of ₦2.4 billion; a decline from the ₦3.1 billion that was realised in the preceding year.
The company made a loss before tax of ₦409,451, 000 as against the ₦414, 652, 000 that was recorded in 2014. Similarly, Goldlink recorded a loss after tax of ₦350, 206, 000, a decline from the ₦529, 207, 000 that was recorded in 2017.
