Chams Plc hit an all-time low in yesterday’s trading session on the Nigerian Stock Exchange. The stock opened at N0.22 and closed at a 5 year low of N0.20. Year to date, the stock is down 60%.
About the firm
Chams Plc was incorporated as a private limited liability company on September 10, 1985, and became a public limited liability company in 2007. The company’s name was changed from Chams Nigeria Plc to Chams Plc.
The company has three subsidiaries: Cardcentre Nigeria Limited, which is engaged in the production and manufacturing of cards, ChamsAccess which is involved in the deployment of ATMs in the country, as well as multi platform terminals, and ChamsSwitch which is engaged in the provision of e payment transaction platforms.
Crawling from a hole
Results for the nine months ended September 30, 2018 show that revenue increased from N1.4 billion in 2017 to N2.1 billion in 2018. The firm made a profit before tax of N178 million in 2018, as against a loss before tax of N161 million incurred in 2017. Profit after tax also stood at N151 million, as against a loss after tax of N161 million recorded in 2017.
Investors expecting a dividend may have to wait a while, due to the company’s negative retained earnings of N7.5 billion. Companies are barred from paying dividends while they have negative retained earnings.
Where the company stumbled
The company’s struggles are largely due to the cancellation of a concession agreement to produce National ID cards. The company raised N9.2 billion (comprising N8.4 billion from a public offer and N800 million internally), which it spent on equipment and four digital cities.
The contract was revoked by the National Identity Management Commission (NIMC) and handed to several other firms.
Meet Nassef Sawiris of Egypt, the second richest man in Africa after Dangote
The Sawiris family is the richest family in Egypt with vast investments and companies in nearly all sectors of the nation’s economy.
We are all familiar with Alhaji Aliko Dangote, the richest man in Nigeria and the whole of Africa, whose current worth is estimated at $16.4 billion according to Bloomberg.
He is followed by Nassef Sawiris, an Egyptian billionaire and business magnate who runs the most lucrative part of his family’s business Empire. According to Forbes, Nassef Sawiris is worth $8.5bn and is currently the 297th richest man in the world.
Meet the Sawiris family
The Sawiris family is the richest family in Egypt with vast investments and companies in nearly all sectors of the nation’s economy. The patriarch of the Sawiris family is Onsi Sawiris. The 90 years old business magnate started the business in 1950 and has successfully transferred it to his two sons, Nassef and Naguib.
Nassef is the younger of the sons and also the richest.
Nassef Sawiris ($8.5bn)
Nassef Sawiris owns and runs Orascom construction, the construction arm of the Sawiris family business. He also has several personal investments and dealings aside from the family business. Here is a brief outline of his major business portfolios and investments according to Forbes.
- He runs OCI, one of the world’s largest nitrogen fertilizer producers, with plants in Texas and Iowa.
- He runs Orascom construction, one of the biggest construction companies in Egypt.
- He has a 5% stake in Adidas and sits on the supervisory board of the company. This is his biggest and most lucrative investment according to Forbes.
- Nassef Sawiris has a huge stake in West African Cement Company, Lafarge Holcim.
- His latest acquisition is a 5% stake in New York-listed firm, Madison Square Garden Sports, owner of the NBA Knicks and the NHL Rangers teams.
What you should know
Nassef Sawiris and Aliko Dangote share similarities in the sense that they both enjoy immense support from the Egyptian and Nigerian government respectively.
Industrial Index loses -12.39 points, as BUA and Lafarge Cement shares top losers list
The NSE Industrials index lost 12.39 index points in the first trading week in the month of April.
The Nigerian Stock Exchange Industrial Index at the close of trading activities for the first week in the month of April closed on a bearish note, following a 0.66% decrease in the shares of BUA CEMENT and Lafarge.
At the close of trading activities on the Nigerian Stock Exchange on the 9th of April 2021, the industrial index depreciated by 55.01 index points, to close lower at 1,928.18 index points for the week.
When compared to the overall performance of the market, the NSE Industrial index underperformed, noting that the NSE All-Share Index and Market Capitalization depreciated by 0.66% to close the week at 38,866.39 and N20.3350 trillion respectively.
What you should know
The NSE Industrial Index was designed to provide an investable benchmark to capture the performance of the Industrial Sector. It comprises the most capitalized and liquid companies in the industrial sector and is based on the market capitalization methodology.
The index tracks the performance of ten industrial companies on the Nigerian Stock Exchange which includes Dangote, BUA, and Lafarge Cement.
The overall performance of the companies for the week was bearish, as the index closed on a negative note driven by the decrease in the share price of BUA Cement and Lafarge.
MEYER (19.51) was the only gainer for the week, while BUACEMENT (-1.09%) and LAFARGE WAPCO (-3.00%) were the only losers for the week.
- MEYER up by19.51% to close at N0.49.
- WAPCO down by -3.00% to close at N21.00.
- BUACEMENT down by -1.09% to close at N72.70.
Nairametrics | Company Earnings
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