Corporate Actions - Nigerian Stock Exchange - NSE

Corporate actions are decisions taken by companies’ boards of directors or management teams, that could have impacts on the firms themselves or shareholders. 

Examples of corporate actions include the release of quarterly and full year results,  payment of dividends, closing of shareholders’ registers, announcing qualification dates and Annual General Meeting (AGM) dates. 

Here is a review of corporate actions that took place last week 

Results released  

Nigerian Breweries FY 2018  

Nigerian Breweries released its audited results for the 2018 financial year after closing hours. Nairametrics had earlier placed the stock on its watchlist last week. While revenue dipped slightly, profit before tax and profit after tax fell by over 30%.  

The company attributed the poor results to the increase in excise duties and a challenging operating environment.  

The company declared a final dividend of N1.83 per share. March 6, 2019 has been fixed as qualification date, while shareholders’ register will be closed from March 7 to March 13, 2019. Payment date has been fixed for the March 20, 2019, and AGM Date is scheduled for Friday, May 17.  

Transcorp Hotels FY 2018  

Transcorp Hotels Plc released its results for the 2018 financial year. They reflected increases in both topline and bottom-line, with revenue increasing by 26% and profit after tax rising by about the same margin.  

The firm has declared a dividend of N0.15 per share.  

Transcorp Plc 

Parent company, Transcorp Plc released its results on Friday, a few days after. The results were quite positive with revenue up by 30%, and profit after tax up by nearly 100%.  

The company has declared a final dividend of N0.03 per share. Qualification date is February 28, 2019. The shareholders’ register will be closed from March 1 to March 5, 2019. Payment date has been set for March 19, 2019.  

AXA Mansard Halts Hospital Project 

AXA Mansard released resolutions from its board meeting held on the 13th of February, 2019. The board approved its results for the 2018 financial year and gave an update on its hospital project.  

The project announced in 2017 has been put on hold due to unforeseen circumstances. The board of directors directed management to embark on further studies, in order to determine an appropriate structure of intervention within the Nigerian Healthcare delivery system. 

Valentine’s gift 

Newrest ASL Nigeria Plc released its results for the 2018 financial year on Valentine’s Day. Revenue was up by 38%, while profit after tax rose by a whopping 247%.  

The company has declared a final dividend of N0.20 per share. Qualification date is April 26, 2019 while the shareholders’ register will be closed from April 29 to May 3, 2019. Payment date has been fixed for May 17, 2019, and AGM is fixed for May 16, 2019.  

A late filing 

Standard Alliance Insurance Plc notified the Nigerian Stock Exchange of its inability to submit its 2018 Audited Financial Statements (2018 AFS) within the regulatory timeline of March 30, 2019 as required by the Exchange’s rules. 

The late filing is because of National Insurance Commission’s (NAICOM) directive to reconstitute its board. The company has commenced the reconstitution exercise as directed, and hopes to complete it soon. It also expects to submit its results on or before the 30th of June, 2019. 

Backlog released 

Goldink Insurance Plc released a backlog of results. The most recent for the nine months ended September 30, 2018 show that the firm made a loss after tax of N149 million, and has negative retained earnings of over N11 billion.  

Afromedia bounces back 

Afromedia Plc released its results for the 2017 financial year. The company bounced back from a N1.7 billion loss. This was largely due to  a write back of a N2.2 billion provision no longer required.  

Golden Guinea Insurance Plc 

Golden Guinea Breweries Plc has also released long over due results. However, the firm gave no timeline for its resumption of operations.  

Revival plans 

In a notice sent to the Nigerian Stock Exchange last week, DN Tyre and Rubber Plc (formerly known as Dunlop Nigeria Plc), gave an update on its restructuring plans. 

According to the firm, it had recorded significant results with the Federal Government, pertaining to the conclusion of a new automotive policy, which had taken into account some policies that had adverse effects on the company. The policy is in the process of being forwarded to the National Assembly for legislation. 

In addition, DN Tyre had also developed a 10-year strategic business plan, to enable it to return to local manufacturing, which it was marketing to potential investors, after which it would seek technical partners. 

The firm was also in serious discussions with a state government which was setting up an industrial park, with provision for an automobile cluster and tyre manufacturing plant. 

 An emergency meeting 

Financial services firm Royal Exchange Plc held an emergency board meeting on February 14, 2019. The firm was to discuss an update on a proposed investment in the firm. No word yet on the outcome reached.  

A board meeting

United Capital Plc held a board meeting on the 15th of February, 2019. Items that were on the agenda include the company’s 2018 full year results and management letter.

Coronation Research


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