Corporate Actions

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, and those expected this week.

Corporate Actions that took place last week

A red listing

Airtel Africa was listed on Tuesday, July 9, 2019. The listing was earlier scheduled for Friday July 5, 2019 but got postponed.

3.7 billion shares were listed at N363 per share. Airtel Africa is the first dually listed telco on the Nigerian Stock Exchange, and the third biggest company on the exchange by market capitalization.
The stock has however performed poorly since listing, and closed down 10.88%, ending Friday’s session at N323.50.

Rumours Addressed

Access Bank Plc and Union Bank Plc both denied rumours that there were plans by the former to acquire the tier two lender.

Seplat capital market day

Seplat Petroleum Development Company Plc, had a ‘Facts Behind the Figures’ session for analysts and investors. The session was focused on the Assa North and Ohaji South (“ANOH”) gas project.

Clearing the stables

Shareholders of Trans Nationwide Express Plc seem to be fed up with the company’s poor performance, as they sacked three of the company’s non Executive Directors: Alhaji Umaru Jimada, Mrs Aderonke Fatade and Mrs Nneka Ikejiani. This took place at the firm’s Annual General Meeting (AGM) which was held last week.

Another non Executive Director, Ms Oluwatoyin Adebayo, subsequently resigned effective Friday.

A Lost Case 

Stanbic IBTC Bank (a subsidiary of Stanbic IBTC Holdings which is the listed entity) provided an update pertaining to a 10 year legal tussle which was concluded at the Supreme Court. The bank paid a judgement sum of N2.5 billion to Longterm Global Capital Limited & Mr. Patrick Akinkuotu,
A full provision for this judgment was made in 2013, and as such, the payment of the judgment sum will have no impact on the bank’s current liquidity position and profitability.

An early call

Ecobank Trans International announced the redemption of a $250 million Eurobond by its Nigerian subsidiary, Ecobank Nigeria. The bond, which was issued in August 2014, will be redeemed in August 2019, two years ahead of its 2021 maturity. Accrued interest will be paid.

A new Chairman

University Press Plc announced the resignation of Dr Lekan Are, its Chairman, effective July 31, 2019. Obafunso Ogunkeye, a sitting non Executive Director has been appointed Chairman effective August 1, 2019. Olayinka Lawal has also been appointed as a non Executive Director effective August 1, 2019.

Two vacant spots

Notore Chemical Industries Plc announced the resignation of two non Executive Directors, Oluwaseyi Owodunni and Olusoji Emiola.

Omatek wakes up

Omatek Plc sent a notice last week, informing the NSE and the investing public that a board meeting would hold on July 18, 2019. Issues to be discussed at the meeting include the approval of the firm’s 2017 and 2018 audited financial statements, as well as issues relating to the regularization of the company’s listing status.

Markdowns

Presco Plc was marked down by N2 and its ex dividend price was N44.80. NPF Microfinance Bank Plc was marked down by N0.05, and its ex dividend price was N1.08. NAHCO Aviance Plc was marked down by N0.25, and its ex dividend price was N2.95.
A mark down is the subtraction of a declared dividend from a company’s share price.

Results released

LASACO Assurance FY 2018

Lasaco Assurance Plc released its results for the 2018 financial year. Gross premium written increased by 35% from N6.6 billion in 2017 to N9 billion in 2018. Underwriting income went up by 39% from N3.9 billion in 2017 to N5.2 billion in 2018.

Profit before tax increased by 12% from N854 million in 2017 to N958 million in 2018. Profit after tax was up 11% year on year from N661 million in 2017 to N736 million in 2018.

The company declared a dividend of 5 kobo per share.

SAHCO Plc FY 2018 and Q1 2019

SAHCO Plc released its results for the 2018 financial year and first quarter ended March 2019.

For the 2018 financial year, revenue increased by 24.4% from N4.9 billion in 2017 to N6.1 billion in 2018. The firm made a loss before tax of N302 million in 2018, as against a profit before tax of N125 million made in 2017. Loss for the year stood at N665 million, as against a profit after tax of N217 million made in 2017.

For the first quarter ended March 2019, revenue increased from N1.3 billion in 2018 to N1.9 billion in 2019. Profit before tax surged 1284% from N22.6 million in 2018 to N313 million in 2019. Profit after tax stood at N313 million, as against a N25.3 million loss recorded in 2018.

Flour Mills Nigeria FY 2018/2019

Flour Mills of Nigeria Plc released its results for the financial year ended March 2019, after trading hours. Revenue dipped slightly by 2.84% from N542 billion in 2018 to N527 billion in 2019.

Profit before minimum tax fell by 38.7% from N16.5 billion in 2018 to N10.1 billion in 2019. Profit after tax also dropped sharply by 66.1% from N13.6 billion in 2018 to N4 billion in 2019.

The company however increased its dividend payout by 20% from N1 to N1.20. Earnings per share for the 2019 financial year was N1, indicating that the firm may have dipped into its retained earnings in a bid to increase its dividend payout.

Conoil Q1 2019

Conoil Plc released its results for the first quarter ended March, 2019. Revenue increased from N31.3 billion in 2018 to N35.6 billion in 2019. Profit before tax rose by 53.9% from N310 million in 2018, to N478 million in 2019. Profit after tax also rose by 53.9% from N211 million in 2018 to N325 million in 2019.

Austin Laz and Company Plc HY 2019

Austin Laz and Company Plc released its results for the half year ended June 2019. Revenue increased from N191 million in 2018 to N205 million in 2019. The firm made a profit before tax of N10.7 million in 2019, as against a N24 million loss recorded in the comparative period of 2018. Profit after tax stood at N10.6 million, as against a N24.8 million loss recorded in 2019.

Corporate Actions for this week

Abbey Mortgage Bank Plc and Tourist Company of Nigeria Plc will be holding their Annual General Meetings on the 15th and 18th of July 2019 respectively.

Red Star Express Plc will be closing its shareholders register from 17 to 19 July, 2019. Qualification date for the dividend payment is July 18, 2019.

Lafarge Africa Plc will hold a ‘Facts behind the Figures’ presentation event at the Nigerian Stock Exchange on July 18, 2019.

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