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Business News

eTranzact international Plc hints at possible capital raise

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Wole Abegunde, Berger Paints Nigeria Plc

eTranzact international PLC may have a capital raise on the horizon going by a recent notice sent to the Nigerian Stock Exchange.

In the notice, the firm stated that an Extraordinary General Meeting would hold on Thursday, January 17, 2019. The main agenda at the meeting is to obtain shareholders approval to raise additional capital to the tune of ₦7 billion.

Details of the proposed raise 

The capital raised could either take the form of equity, debt, private placement or a combination that would be determined by eTranzact international Plc board of directors.

eTranzact international would, however, be raising its authorized share capital from ₦2.1 billion divided into 4.2 ordinary shares of ₦0.50 each to ₦9.1 billion divided into 18.1 billion ordinary shares of ₦0.50 each by the creation of additional 14 billion ordinary shares.

Reasons for the proposed raise 

In a separate notice to the NSE, the company shed more light on the reasons behind the proposed raise, and how the capital raised will be utilized.

The decision to raise additional capital became imperative considering the need of the Company to expand its operations, deepen its market share and to remain competitive in the financial technology industry.

The firm may also be considering an expansion of its operations to stay ahead of the new players in the fintech space.

rapid development in the Electronic Payment System has led to the emergence of many key players and stiffer competition with the industry. The financial, technological, workforce and corporate governance requirements have also changed to an unprecedented level as a result of key reforms within the sector.

How the funds will be applied  

According to the firm

The funding will be used to upgrade and enhance the Company’s technology infrastructure and network security systems and also to improve on its service delivery among other lawful purposes.

In addition, the eTranzact international PLC plans to invest in an agent network expansion Program, as well as human resources, and employee development.

eTranzact international closed at ₦3.95 in yesterday’s trading session on the Nigerian Stock Exchange, unchanged from the prior day.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training.He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE).He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy.You can contact him via [email protected]

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Spotlight Stories

How to activate the safety feature on your phone in case of an emergency, Kidnap

The rise in insecurity has called attention to a hitherto ignored security feature on most android devices and iPhones.

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Cryptocurrencies, Blockchain

Insecurity continues to be a daunting challenge in Nigeria today. There have been countless news of kidnapping, armed robbery and other criminal activities in several parts of the country. This danger has caused paranoia in many people as it dawns on citizens that government alone cannot effectively guarantee the security of lives and properties.

The rise in insecurity has called attention to a hitherto ignored security feature on most android devices and iPhones. Indeed, these hand-held gadgets can become lifesavers in emergency situations such as kidnap or other forms of threat to life and safety.

Android devices and iPhones have emergency features that you can activate in times of needs. You may not have the time to make a phone call or send a message when you are in danger but these features can help you do that by alerting your emergency contacts and sending your location and sometimes, a recording to alert people of your situation.

Here is how to activate this feature.

How to activate the SOS safety feature on Android phones in case of an emergency

  • First, navigate to your ‘Settings’
  • Tap ‘Advanced Features’
  • Tap ‘SOS Messages’
  • Tap the switch at the top of the screen; read the information and then tap ‘Continue’
  • Review the required permissions
  • Tap ‘Start’
  • From here, select either ‘Create Contact’ or ‘Select from Contacts’
  • Choose your emergency contact – they will be the ones to receive the SOS alerts. You can also add multiple contacts.
  • Adjust the different settings. For example, you can adjust how many times you need to press the Side key or Power key before an alert is sent. You can also decide if you’d like to attach images or an audio recording to the SOS message.

Once this setup is completed, you can send emergency SOS messages whenever you are in danger by pressing the Side key or Power key 3 or 4 times rapidly. This will send an SOS message to your designated contact(s).

Note:

The phone must have an active SIM card in order to send an SOS alert. When using the SOS feature, your location, photo, and voice recording will be sent the first time a call is made. It will only send updated locations (every 30 minutes for a span of 24 hours) if you have changed your location.

How to activate the emergency safety feature on iOS phones

Triggering the Emergency SOS on your iPhone is easy.

Simply hold down the lock button and one of your volume buttons together for 5 seconds to trigger an SOS call to emergency services. Keep holding it to initiate an automatic call and the phone’s siren.

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Alternatively, if you’ve enabled an extra feature in your settings, you can use just the screen lock button alone — click it five times in a row to initiate the siren feature.

Again, you can activate this through Apple’s Health app:

  • Open your iPhone’s Health app and tap your profile picture
  • Select ‘Medical ID’ in the next menu
  • Tap ‘Edit’ and then scroll down to your ‘Emergency Contacts’ section
  • Tap the ‘Add’ button to select a contact, and you can indicate their relationship to you
  • Tap ‘Done’ to save changes

After initiating the Emergency SOS feature, iPhone will send each listed emergency contact a text message with a current location and a message that you’ve initiated the SOS. Your location services will automatically turn on when this feature is used, and if you are moving, your contacts will get an update about your final destination.

Why this matters

There are numerous reasons for people to be extra cautious when stepping out these days. Activating this emergency feature on your phone can help to keep you and your loved ones safe in these times of rising insecurity.

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GSK in big trouble as losses mount

The results were less than impressive with several key indicators showing a year-on-year decline.

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GSK Consumer Nigeria Plc records 3.34% increase in 2020 9M revenues.

GlaxoSmithKline Consumer Nigeria Plc (“GSK Plc” or “the Company”) is a public limited liability company with 46.4% of the shares of the Company held by Setfirst Limited and Smithkline Beecham Limited (both incorporated in the United Kingdom); and 53.6% held by Nigerian shareholders.

The ultimate parent and controlling party is GlaxoSmithKline Plc, United Kingdom (GSK Plc UK). The parent company controls GSK Plc through Setfirst Limited and Smithkline Beecham Limited.

The Company recently published its unaudited first quarter (Q1) 2021 consolidated financial statements for the period ended 31 March 2021.

The results were less than impressive with several key indicators showing a year-on-year decline. For example, Group revenue (turnover) declined from ₦4.99 billion in Q1 2020 to ₦3.46 billion in Q1 2021 a drop of over 30.66%. The revenue drop was due to a sharp decline in the local sale of its healthcare products.

Total loss after tax as of Q1 2021 was ₦238.07 million compared to a profit after tax of ₦113.47 million for the same period to Q1 2020.

The company is essentially divided into two segments viz: Consumer Healthcare and Pharmaceuticals. While the Healthcare segment was largely profitable in Q1 2021 (making a profit before tax of ₦ 8.73 million by March 31, 2021, the pharmaceuticals segment made a loss of ₦262.93 million in the same period.

The Consumer Healthcare segment of the company consists of oral health products, digestive health products, respiratory health products, pain relievers, over the counter medicines, and nutritional healthcare; while the pharmaceutical segment consists of antibacterial medicines, vaccines, and prescription drugs. While goods for the consumer healthcare segment are produced in the country, the pharmaceuticals are all imported.

The largely imported pharmaceutical products are thus exposed to the vagaries of foreign currency fluctuations coupled with a negligible to no revenue from the foreign sale of its healthcare products (same as in Q1 2020) as it barely exports its products out of the country.

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The cost of importing the antibacterial, vaccines and prescription drugs, and the significant local operating expenses wiped off the marginal gross profits made by the pharmaceutical segment of the company. In effect, the gross profit of ₦508.12 million made by the pharmaceutical segment of the company was eliminated by an operating expense of ₦735.7 million and this resulted in a net loss for the pharmaceutical segment of the business.

Apart from the impact of imported pharmaceutical products as already discussed, other issues that affected the company’s Q1 2021 results and are likely to continue to affect its performance in future include:

  1. A limited product mix that has only the likes of Macleans and Sensodyne (Oral Healthcare); Pain relievers (Panadol and Voltaren); Digestive Health (Andrews Liver Salt); and Respiratory Health (Otrivin and Panadol Cold and Catarrh) all within the Consumer Healthcare segment.
  2. Increased competition, particularly from local pharmaceutical manufactures of similar over the counter medicines and other prescription medications and vaccines.

In addition, in October 2016, GSK Plc divested its drinks bottling and distribution business that manufactures and distributes Lucozade and Ribena in Nigeria, and other assets including the factory used for the drinks business to Suntory Beverage & Food Limited. The loss in revenue from these popular brands continues to impact its topline.

GlaxoSmithKline (GSK) is a global healthcare company and is well-known and acknowledged for its pioneering role in discovering and distributing vaccines for the likes of hepatitis A and B, meningitis, tetanus, influenza, rabies, typhoid, chickenpox, diphtheria, whooping cough, cervical cancer and many more.

It is also renowned for its manufacture and distribution of prescription medicines such as antibiotics and treatments for such ailments as asthma, HIV/AIDS, malaria, depression, migraines, diabetes, heart failure, and digestive disorders.

Perhaps GSK Plc’s fortunes may change if the company is able to obtain the parent company’s licence to manufacture GSK-owned vaccines and prescription medicines within the country while also exploring the possibility of extending the sale of its products outside the shores of the country.

Since different expertise is required for vaccines and prescription drug manufacture and distribution as compared to manufacture and sale of consumer healthcare products, perhaps another alternative may be for the company to create two separate companies with one company being a 100% vaccines and prescription drug pharmaceutical manufacturing and distribution company while the second company specializes entirely in the manufacture and sale of consumer healthcare products.

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As a result of the Q1 2021 performance, the company’s earnings per share (EPS) dropped to -20 kobo compared to the 9 kobo earnings per share reported in Q1 2020. At the start of 2021, GSK Plc’s share price was ₦6.90 but the company has since lost over 10% of its price valuation as the company’s share price closed at ₦6.20 on April 30, 2021.

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