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Business

Planned revocation of right of occupancy may impair our assets by N4.63 billion – Ikeja Hotel Plc

Ikeja Hotel says that the revocation of the company’s right of occupancy on its landed property could impair the assets of the company.

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Ikeja Hotels Plc appoints a new acting CEO, Lagos State Government right of occupancy revocation may impair our assets by N4.63 billion - Owner of Sheraton Hotel,Lagos State Government right of occupancy revocation may impair our assets by N4.63 billion - Owner of Sheraton Hotel, How Nigerian hotels are mitigating Covid-19's impact

Ikeja Hotel Plc – owners of Sheraton Hotel, has disclosed that the purported revocation of the company’s right of occupancy on its landed property situated at Opebi Gorge, Ikeja, Lagos, has the potential to impair the assets of the Group to the tune of N4.63 billion if the government succeeds.

This was disclosed by the Management of Ikeja Hotel Plc in a press release sent to the floor of the Nigerian Stock Exchange.

READ: Probe: Auditors submit report on Ikeja Hotel’s financial operations 

The press release partly reads,

“The Company received a letter dated October 15, 2020, from the Lagos State Government, purportedly revoking its right of occupancy on its land situated at Opebi Gorge, Ikeja, Lagos. The Company has taken legal action to contest this revocation. However, the revocation has the potential to impair the assets of the Group to the tune of N4. 63 Billion if the government succeeds.”

READ: #EndSARS: Lagos promises Tax Break, financial support for owners of affected businesses

What this means

If the Lagos State Government succeeds in revoking the company’s right of occupancy on the land, it poses a potential of affecting their assets as they expect an impairment of N4.63 Billion.

(READ MORE: CBN’s COVID-19 N50 billion targeted credit facility)

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In the same vein, the profitability of the company is expected to suffer and wreak economic havoc on its core business segment. Hence, the revenue-generating capacity of the company would be constrained, as it recovers from the effects of the COVID-19 pandemic.

Due to the continued effects of the COVID-19 pandemic, the company recorded a loss after tax of N1.4 billion in the third quarter of 2020.

READ: Ikeja Hotel Plc is considering a capital raise

Why this matters

The current reality is likely to affect the dividends accruable to the shareholders of Ikeja Hotel Plc, as the company may not declare dividends for the year ended December 31, 2020.

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Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor. He is a business owner and a stern advocate of Financial literacy, who believes in the huge economic prospect of the Nigerian Payment channels and Fintech space.

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Business

FG to name new train station after Mobolaji Johnson

FG to name flagship train station located at Ebute Metta after the former Governor of Lagos State, Mobolaji Johnson.

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The Federal Government is set to name its flagship train station located at Ebute Metta after the former Governor of Lagos State, Mobolaji Johnson.

This was disclosed by the Ministry of Transportation via its Twitter handle on Sunday.

It tweeted, “New indoor photos of our flagship station located at Ebute Metta. It is to be named Mobolaji Johnson Station after the former Governor of Lagos State. Please share your thoughts.”

What you should know

The Federal Government has also stated why the China Civil Engineering Construction Company (CCECC) Nigeria Limited could not link the final part of the Lagos-Ibadan rail line to the sea, according to Nairametrics.

The government in its explanation said that it was due to disruption by trucks going in and out of the port complex.

According to a press statement signed by the Director, Press and Public Relations of the Federal Ministry of Transportation, Eric Ojiekwe, this disclosure was made by the Minister of Transportation, Rotimi Amaechi, while on a routine tour of the Lagos-Ibadan rail line project on Saturday, April 10, 2021.

 

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The five-ingredient of a successful startup pitch

Every great pitch has these 5 ingredients to help you maximize your chances when fundraising for your startup.

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Startups typically prepare a pitch deck to present to potential investors for funding. A pitch deck is a brief presentation that provides investors with an overview of your business. It typically focuses on showcasing your product and business model. An excellent pitch is highly essential to the success of a startup seeking funding from investors.

According to Romeen Sheeth, an angel investor who heard 200 companies pitch and invested over $1million last year, every great pitch has these 5 ingredients to help you maximize your chances when fundraising.

  • Problem:  Is this an issue?
  • Solution:  Do you have the fix?
  • Market:   Is this a big enough issue?
  • Business: Can you make money
  • Team:  Do you have the human resources to do it?

READ: Billionaire investors in Nigeria you may not know

The best pitches nail all 5. Good ones hit 4. Subpar hit 3 or less.

Problem

The problem statement is an explanation of why a set of circumstances is painful for a set of users. There’s one word in that sentence that is most important: painful. If your problem is not painful enough, it’s a vitamin. The best startups are pain killers.

Solution

The solution statement is an explanation of how you address the pain felt by your users. If you don’t have the right solution, you won’t get customer traction. Customers don’t buy your thesis on the pain point. They buy the actual thing that solves their pain point.

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READ: How Quidax is Building Africa’s Next Billion-Dollar Crypto Startup

Market

In tech, only businesses that have outsized potential get funded. To have outsized potential, you have to either be in a: (a) small, but rapidly growing market or (b) large existing market that can be resegmented. If not, the business is not venture backable.

Business

The business model defines how you print cash. What is the key insight you’ve figured out that other people haven’t? You don’t need to reinvent the wheel on everything to be a compelling business. Just explain the secret sauce that helps you capture the value.

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Team

Everything else is academic if you can’t execute. Ultimately the investor is betting on your team’s ability to bring out the reality in the insights around the problem, solution, market, and business. Communicate why you are the best in the world to build the business.

Once you feel good about these 5, think through the connection points. Every topic that comes up in the conversation will be a function of a connection point. For example:

  • Problem-Market = Industry Dynamics
  • Solution-Market = Competition
  • Market-Business = Unit Economics

Bottom line

When you pitch, always keep it simple. Understand the 5 core ingredients, think through how they relate to one another, communicate with clarity, and don’t assume investors understand your business.

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