Chams Plc released its results for the 2018 financial year, last week. There was a significant increase in the top line as well as a return to profitability.
Revenue increased from N1.9 billion in 2017 to N3 billion in 2018. The company also made a profit after tax of N380 million, as against a N1.2 billion loss recorded in the corresponding period of 2017.
A section from the company’s financial statements disclosed that the firm has decided to pay a dividend of N0.03 per share:
The Board of Directors, pursuant to the powers vested in it by the provisions of section 379 of the Companies and Allied Matters Act (CAMA) of Nigeria, proposed a final dividend of 3k per share as at December 31, 2018. This will be presented for ratification by the Shareholders at the next Annual General Meeting
This amounts to a payout ratio of 42.8%, as the company had earnings per share of N0.07.
The proposed dividend is the first in over five years.
While the company’s return to profitability is a positive development, the decision to pay dividends is a somewhat odd one. Chams currently has negative retained earnings of N1.9 billion.
By law, companies are not allowed to pay dividends from negative retained earnings.
About the Charms Plc
Chams Plc (the company) was incorporated as a limited liability company on 10 September 1985 and became a public company on 4 September 2008.
The company was listed on the floor of the Nigerian Stock Exchange on 8 September 2008.
The principal activities of Chams Plc and its subsidiaries (the group) include identity management, payment collections, and transactional systems.
The stock closed at N0.20 in today’s trading session on the Nigerian Stock Exchange, down 4.76%. Year to date, the stock is flat.
Nigerian stocks plunge, as WEMA, CHAMPION, MANSARD slump
The market breadth closed negative as LASACO led 17 Gainers as against 23 Losers topped by CHAMPION at the end of today’s session.
Nigerian stocks wrapped up the week on a bearish note after the benchmark index registered its third negative close in the last five sessions.
- Sentiments notably picked up where they left off yesterday, as selloffs persisted in bellwether ticker – ZENITHBANK (-1.55%) as well as in Telco giant – MTN Nigeria (-3.28%).
- The 74 basis points pullback recorded today kept the All Share Index return firmly rooted in the red and also lowering the Year date returns to -1.88%.
- Save for the Oil and Gas (+0.25%) index lifted by sustained interest in OANDO (+2.99%), all other sectors closed in the negative territory.
- The Insurance (-2.32%), Banking (-0.48%), Consumer Goods (-0.40%), and Industrial Goods (-0.19) indices declined following price dips in MANSARD (-5.36%), ZENITHBANK (-1.55%), INTBREW (-3.65%), and WAPCO (-2.94%) respectively.
- The market breadth closed negative as LASACO led 17 Gainers as against 23 Losers topped by CHAMPION at the end of today’s session
- LASACO down 9.82% to close at N1.23
- MBENEFIT down 8.11% to close at N0.37
- COURTVILLE down 5.00% to close at N0.21
- OANDO down 2.99% to close at N3.45
- NAHCO down 2.70% to close at N2.28
- WEMABANK down 10.00% to close at N0.63
- CHAMPION down 10.00% to close at N2.52
- SUNUASSUR down 9.59% to close at N0.66
- AFRIPRUD down 5.74% to close at N5.75
- MANSARD down 5.36% to close at N1.06
Nigerian stocks ended the last trading session of the week on a bearish note amid profit-taking across the market spectrum.
- Downtrend was driven by price depreciation medium capitalized stocks amongst which are; WEMA, CHAMPION, MANSARD.
- That being said, Nairametrics envisages cautious buying on the account that certain market indicators reveal investors are taking some of their gains across the market spectrum.
VP Osinbajo disagrees with CBN, calls for crypto regulation
Vice President Yemi Osinbajo had recently called for Crypto regulation knowing fully well the role Crypto play in the global financial ecosystem.
The Vice President of Nigeria, Prof. Yemi Osinbajo has recently called for Crypto regulation knowing fully well the role Crypto plays in the global financial ecosystem as he opined that such disruption often makes room for progress.
Osinbajo also advised the SEC, and Central Bank of Nigeria in creating a regulatory road map, while fully appreciating the stance of the CBN, Nigerian SEC, and law enforcement agencies on the possible abuses of crypto assets.
The vice president further stressed the importance Cryptocurrencies would play in the coming years as they will most likely challenge traditional banking, including reserve banking, in ways the world hasn’t yet imagine, stressing the need for Nigeria in being prepared for such a seismic shift.
He also called for scaling up of government-private sector interventions because, “the task of national development requires that we fire on all cylinders, after all at one stage China was building 1.9m housing units per year.”
Cryptocurrencies in the coming years will challenge traditional banking, including reserve banking, in ways that we cannot yet imagine, so we need to be prepared for that seismic shift. pic.twitter.com/tbIR8eah2s
— Prof Yemi Osinbajo (@ProfOsinbajo) February 26, 2021
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