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Business News

Shareholders endorse Vitafoam’s dividend and bonus shares

Dividend and bonus shares proposed by the management of Vitafoam Nigeria Plc have been approved by the company’s shareholders who praised the management for achieving a better result in a tough business environment.

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Vitafoam Nigeria Plc, Dividends and bonus shares, Subsidiaries

Vitafoam Nigeria Plc’s proposed dividend and bonus have been approved by the company’s shareholders, who also praised the management for achieving a better result in 2018 despite a tough business environment.

The shareholders endorsed the N260.51 million dividend, which translates to 25 kobo per ordinary share. They also approved a bonus issue of one share for five already-held.

Shareholders reaction: While reacting to the proposed dividend and bonus shares, a shareholder who chose not to be named, lauded the management of Vitafoam for prioritising the welfare of the shareholders and grinding positive financial performance in a tough environment.

“The performance is far better than the previous one. This is commendable because the operating environment is tough. We are pleased with the dividend and bonus shares.

“Vitafoam’s management has proved once again that the company is genuinely interested in the welfare of the shareholders. There is a need for more engagement with big customers such as schools and hotels all over Nigeria to enable them patronize the products. The company’s corporate governance policy is very good.”

Longterm growth

The management of Vitafoam expects the company’s revenue performance to continue at a positive trend irrespective of the business environment in Nigeria. The Group Managing Director of the company, Taiwo Adeniyi, said the nature of the operating environment won’t constrain the growth of the company.

Finance issue: Vitafoam has enjoyed financial backing from the Bank of Industry (BoI) which the company says comes at moderate interest. To Vitafoam’s management, capital facility from BOI is preferable to embarking on a rights issue, because it would increase the share capital and put pressure on the company’s ability to pay competitive dividend.

Financial Performance

Vitafoam Nigeria Plc posted growth in turnover for the year ended 2018, while the company’s profit-after-tax also grew in the year under review. The company recorded N17.61 billion in 2018, an increase from N15.92 billion in 2017. Profit- after- tax also grew from N190.54 million in 2017 to N486.1 million in 2018.

Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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Columnists

FGN Free Meter Program and getting power to the people

Without effective penalties for erring DisCos and consumers, progress may still remain very slow.

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Electricity, Buhari moves against Discos and agents that collect money for prepaid meters

According to news reports, the Minister of Power, Mamman Saleh on Wednesday said the distribution of the four million free electricity prepaid meters pledged by the Central Bank of Nigeria would soon begin across the country.

According to him, the government is wrapping up the distribution of its initial one million meters, which he labelled phase zero, and would soon begin the distribution of the four million sponsored by CBN, which he tagged phase two. He also noted that the Federal Executive Council approved N3bn for the execution of six major electricity projects in the country to upgrade Nigeria’s electricity facilities and improve power supply across the country.

Ineffective metering remains a major drawback to the success of power sector reforms in Nigeria. While some consumers avoid paying for power consumed through meter bypass, some other consumers are made to pay for what they have not consumed through estimated billing by DisCos.

DisCos have been largely unsuccessful with metering their customers.

As far as inadequate metering is concerned, DisCos over time, have used this situation to their advantage via estimated billings. It appears that fully metering customers are currently being viewed as a disincentive, given that estimated bills can easily be manipulated.

According to a report by the Nigerian Electricity Regulatory Commission (NERC), only 4,234,759 (40.27%) of the total customer population of 10,516,090 were metered as of 30 June 2020. Clearly, this validates the widely held view that there are a wide number of customers on estimated billing which gives room for illegal connection to the networks and in turn corrupt practices. NERC further revealed that only three out of 11 Electricity Distribution Companies in the country had metered more than 50% of electricity customers under their coverage areas as of June 2020.

Effective metering in our view is one step ahead in solving the myriad of problems embattling the Nigerian power sector. Though supposed to be unpaid for, many customers in a bid to avoid the bureaucracy associated with getting meters have paid to get their own meters. We believe the provision of meters to all end-use customers will go a long way in ameliorating the liquidity squeeze in the power sector whilst also providing cashflow to the DisCos for investment in equipment needed to evacuate unused electricity to consumers nationwide.

We laud the FG’s efforts at distributing meters freely to end-users, but we note that without effective penalties for erring DisCos and consumers, progress may still remain very slow.

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CSL Stockbrokers Limited, Lagos (CSLS) is a wholly owned subsidiary of FCMB Group Plc and is regulated by the Securities and Exchange Commission, Nigeria. CSLS is a member of the Nigerian Stock Exchange.

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Coronavirus

Covid-19: WHO approves China’s Sinopharm vaccine

WHO has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination.

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Covid-19: First world nations oppose waiving intellectual rights for vaccine development

The World Health Organization (WHO) has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination.  The vaccine is reported to have 79% efficacy against covid.

This was disclosed today in a report by Reuters. The vaccine would also be the second Chinese-made vaccine after Sinovac vaccine and would be the first developed outside Europe and North America to receive WHO accreditation.

“This expands the list of COVID-19 vaccines that COVAX can buy, and gives countries confidence to expedite their own regulatory approval, and to import and administer a vaccine,” WHO Director-General, Tedros Adhanom Ghebreyesus said.

The WHO added that the easy storage requirements make it highly suitable for low-resource settings.

“Its easy storage requirements make it highly suitable for low-resource settings,” a WHO statement said while also disclosing that the vaccine has been approved for people above the age of 18 to receive two shots.

“On the basis of all available evidence, WHO recommends the vaccine for adults 18 years and older, in a two-dose schedule with a spacing of three to four weeks,” the statement added.

The vaccine was created by Beijing Biological Products Institute, a subsidiary of Sinopharm subsidiary China National Biotec Group, with an efficacy of 79% for all age groups.

The WHO however, admitted that few older adults (over 60 years) were enrolled in clinical trials, so efficacy could not be estimated in this age group.

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In case you missed it

The quest for vaccine efficiency got a major boost earlier this week as Nairametrics reported that the United States government announced that it supports the waiver of Intellectual Property Protections on Covid-19 vaccine development, in a bid to boost the fight against the pandemic, and says it will participate in the Okonjo-Iweala-led WTO negotiation to make it happen.

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