Morison Industry shares witness renewed interest

Seemingly inactive pharmaceutical stock, Morison Industries Plc, has had heavy volume trades since last week, indicative of a major investor exiting the firm, or increasing a stake.  

The trades 

• On July 3, 44.5 million shares, valued at N24 million were traded in 4 deals.
• On July 5, 45.4 million shares, valued at N24.5 million were traded in 4 deals. 
• On July 9, 3 million shares valued at N1.7 million were traded in 25 deals.   
• In yesterday’s trading session, 20.9 million shares valued at N11.5 million were traded in 15 deals. 

The company has a total of 989 million shares outstanding, indicating that 11.2% of the company’s issued shares have been traded in the last one week.  

Mum is the word 

While the trades have cumulatively crossed the 5% mark, the company is yet to send a notice to the Nigerian Stock Exchange (NSE). 

NSE regulations mandate firms to disclose details of transactions, once 5% of a company’s shares has been traded.  

The key shareholders 

As at the 31st of December, 2018, the following companies/individuals held 5% or more of the company’s issued shares: 

• Morison Investment Limited U.K.—6.15% 
• Richard O. Titiloye—5.19% 
• Leasing Partners Limited—12.81% 
• Brewshades Nigeria Limited—12.2% 
• Topmost Asset Management—10.24% 

Recent results 

Results for the first quarter ended March 2019, show that revenue increased from N19.5 million in 2018 to N25.3 million in 2019. Despite the increase in revenue, the firm was unable to turn a profit as it made a loss before tax of N30.8 million in 2019, a slight improvement from the N38.4 million loss recorded in the corresponding period of 2018.  

About the firm  

Morison Industries Plc was formerly known as  J. L Morison, Sons and Jones (Nigeria) Limited. The company was incorporated in Nigeria on the 29th June 1955. Prior to this, it had operated as a small agency for overseas manufacturers in Nigeria.

The firm was listed on the Nigerian Stock Exchange (NSE) in 1978. Following the indigenization policy of the federal government,  60% of its shares were held by the Nigerian public while the remaining 40% remained with Guinness international.

Guinness sold its shares to the ITM Group in 1983. The ITM Group sold their shares in 1991 to Morison Investments Ltd. U.K.

The company is into the production and marketing of pharmaceuticals, hygiene products and disinfectants.  

Morison Industries Plc closed at N0.55 in yesterday’s trading session on the Nigerian Stock Exchange, down N0.05 or 8.33%. Year to date, the stock is flat.