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Companies

Flour Mills to issue bond within 2 months as it takes advantage of market rate

The move was aimed at taking advantage of low money market rates

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Flour Mills to issue bond within 2 months as it takes advantage of market rate

Nigeria’s leading integrated Food and Agro-allied giant, Flour Mills of Nigeria Plc, has concluded plans to issue a bond within the next 2 months as part of a N70 billion ($184 million) programme to refinance existing debt.

This was disclosed by Flour Mill’s Group Chief Finance Officer, Anders Kristiansson on Monday, August 17, 2020, during an analyst call.

Kristiansson said the move was aimed at taking advantage of low money market rates, adding that Flour Mills had taken proactive measures to conserve cash in response to the coronavirus pandemic.

READ MORE: Jumia sees competition from startups in growing African e-commerce market

It can be recalled that the flour and pasta maker sold N30 billion in a commercial paper earlier this year in April as part of measures to mitigate the impact of the coronavirus pandemic on its business activities.

During an analyst call, Kristiansson said, ‘’We have a N70 billion bond programme. We are looking to tap into the market again given the low-interest-rate environment. We anticipate coming to the market to refinance some of our existing debt by bringing a bond to the market. We anticipate doing that in the next two months.”

READ MORE: Nigeria confirms no plans for fresh Eurobond issues

The multinational firm which just released its first-quarter financial statement revealed that it recorded some steady growth in its food and agro-businesses as its revenue grew by 15% to N154.6 billion from N134.7 billion.

Deal book 300 x 250

The profit after tax grew by 17% to N4.9 billion from N4.2 billion. The company has a net debt profile of around N75.8 billion in the first quarter.

The yields on short-term bills and bonds have fallen below 6% from the double digits due to excess liquidity in the money market as foreign investors are pulling out their funds and dumping assets to repatriate funds.

Flour Mills shares traded at N18.30 on Monday, August 17, 2020.

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Companies

Africa Prudential Plc declares N1 billion dividend for shareholders

The Board of Directors of Africa Prudential Plc has proposed the payment of N1 billion as dividend to qualifying shareholders.

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Obong Idiong, Africa Prudential Plc

The Board of Directors of Africa Prudential Plc, Nigeria’s leading registrar and a key player in the capital market, has proposed the payment of N1 billion as dividend to qualifying shareholders of the company.

This is in line with the resolution made at the Company’s Board meeting which held on Thursday, February 18, 2021, as the Board resolved to pay a dividend of 50 Kobo per ordinary share, amounting to N1,0000,000,000 (One billion Naira only).

It is essential to understand that the dividend recommended by AfriPrud’s Board is subject to appropriate Withholding Tax, and the approval of shareholders at the Company’s Annual General Meeting.

What you should know

  • The dividend recommended by the board of AfriPrud in 2020 is 28.57% lower when compared to the total dividend of 70 kobo per share paid to shareholders last year for 2019.
  • It is important to note that the dividend declared is subject to appropriate withholding tax and the approval of shareholders at the Company’s next Annual General Meeting.
  • However, with a share price of N7.3 per share at the close of trading activities on the floor of NSE for last week, the dividend yield of the company stands at 6.85%.

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Companies

United Capital earmarks total dividend of N4.2 billion for shareholders

United Capital Plc announced a payment of a total of N4.2 billion as dividend to shareholders for 2020.

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Commercial paper, United Capital Asset Management explains mutual funds’ positive performance

The Board of Directors of United Capital Plc, Nigeria’s financial and investment services powerhouse, has announced the payment of a total N4.2 billion as dividend to shareholders for 2020. The resolution was made at the Board meeting which held on Wednesday 17, 2021.

This information was contained in a notification dated 18 February 2021, which was signed by the Company’s Director Peter Ashade, and sent to the floor of the Nigerian Stock Exchange.

According to the notification, the dividend declared by United Capital on a per-share basis was pegged at 70 kobo per share, this put the total dividend to be paid to shareholders at N4,200,000,000.

READ: 6 Questions to consider when evaluating a job offer

What you should know

  • The dividend declared for 2020 is 40% higher when compared to the total dividend of 50 kobo per share paid by the company to its shareholders last year for 2019.
  • It is important to note that the dividend declared is subject to appropriate withholding tax and the approval of shareholders at the Company’s next Annual General Meeting.
  • The dividend will be paid to only shareholders whose names appear in the Register of Members as at the close of business on Friday, March 5, 2021.
  • However, with a share price of N5.98 per share at the close of trading activities yesterday on the floor of NSE, the dividend yield of the company stands at 11.7%.

READ: Why Nigerian stocks are getting pummeled

What to Expect: The Audited Accounts of United Capitals Plc will be published on or before Monday, February 22, 2021, on the website of the Nigerian Stock Exchange. This is in line with the option by the Company to submit its audited accounts within 60 days of the year-end.

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