The importance of electricity in the quest for economic development can never be overstated. For a country like Nigeria, where epileptic power supply has remained a major economic constraint for years, achieving steady and reliable power generation and distribution has become a must. This is where Cutix Plc has played a role in the past thirty-six years, manufacturing and marketing assorted cables that are used for the conduct of electricity across the country.
For our corporate overview today, we are focusing on the company. Find out more about what it’s about, its product, market share, competition, financial performance, and more.
About Cutix Plc
Incorporated in 1982, Cutix Plc is a Nnewi-based cable manufacturing company which produces and markets various kinds of cables ranging from electrical wires, telecommunication wires, to automobile wires.
Specifically, some of the company’s wide range of products include insulated copper conductors, PVC insulated and sheathed flat twin/three-core copper cables, low tension bare aluminium conductors and reinforced aluminium conductor steel wires. The company also manufactures bare stranded copper conductors as well as bare copper conductors which are used for earthing electrical installations and the production of copper cables.
Cutix Plc is the brainchild of Dr Ajulu Uzodike who resigned from a well-salaried job at Raychem Corporation in 1981, to establish one of the foremost wire manufacturing companies in the country. He used Adtec Limited (a venture capital firm he also founded) to kick-start the company’s initial projects.
The company was eventually incorporated in 1982, initially as a private limited company. It then transitioned into a publicly-owned company, with its shares listed on the Nigerian Stock Exchange’s second tier security market in August, 1987.
According to information available on the company’s website, Cutix Plc started operations with a startup capital of about N400,000 which was collectively raised by the founder and eighteen others consisting of his friends and his family members.
Following Cutix’s listing on the NSE, which made it the first Eastern Nigeria-based company to do so, it was able to raise the necessary capital for its expansion drives. It built several cable production lines, installed and commissioned more machines, and obtained more licenses from the authorities. The company has also been able to build its own factory.
About 60.38% of the company’s shares are currently held by the investing public. The remaining 39.62% is split thus:
- Uzodike Gilbert Obiajulu: 90,172,226 units, holding (10.24%).
- R.C Onyeje And Company (Nig) Ltd: 55,416,000 units holding (6.29%).
- Nsoedo Samuel: 54,333,333 units holding (6.17%).
- Nigerian Reinsurance Corporation: 53,333,333 units holding (6.06%).
- Nzewi Christopher Emengini: 50,571,310 units holding (5.74%).
- AMI Nigeria Limited: 45,093,991 units holding (5.12%).
The Founder and other top executives of the company
Dr Gilbert Obiajulu Uzodike is the Founder of Cutix Plc. Born in 1949 in Onitsha, he studied for his primary and secondary school education in Eastern Nigeria before proceeding to the University of Lagos, where he obtained a B.Sc. Mech. Engineering in 1974. He then proceeded to the prestigious Harvard Business School, where he obtained an MBA in 1977.
He has founded and managed several companies, including Cutix Plc, following his successful career as an employee business executive. These companies include cosmetics manufacturing company Ugora Limited, Raychem Adtec Limited, Adswitch Plc etc.
He currently sits on the board of quite a number of establishments, including his position on the Board of Trustees of the Anambra State Security Trust Fund.
Dr Okechukwu John Mbonu is the Chairman of Cutix Plc. His professional experience spans decades, including top executive positions at PricewaterhouseCoopers (PWC), Nigerian Breweries, Executive Edge Limited etc.
He studied Mechanical Engineering at the University of Manchester, graduating with a First Class Honours in 1979. He also has a Ph.D. in Mechanical Engineering from the same University.
About the company’s target market
Cutix Plc targets everyone, particularly real estate developers, governments, electricity companies, private companies, and anyone else who deals in the construction of residential and office buildings. It also targets telecommunications companies, like MTN and 9mobile, who make use of telecommunication wires such as those manufactured by the company.
But the company faces competition
Cutix Plc is undoubtedly one of the foremost and well-established cable manufacturing companies in Nigeria. This notwithstanding, the company faces competition from various quarters, including those posed by other cable manufacturers in Nigeria. An example of such companies is Coleman Technical Industries Limited which, though not listed on the Nigerian bourse, is still one of the biggest names in the sector. Other competitors include: Sinitor & Co Nigeria Limited, Emarvel Electrical Cables, Berliac Engineering Cables and Wire Limited, Vecan Cable Limited etc.
Note that out of all the cable manufacturing companies in Nigeria, Cutix Plc is the only one whose shares are publicly traded on the NSE.
A look at the company’s financial performance
Over the past five years (between 2013 and 2017) Cutix Plc’s revenue has been on a steady rise. The company reported ₦1,929,477,000 for the year ended December 2013. By the end of 2014, revenue had increased to ₦2,234,959,000. The steady rise continued in 2015, with the company reporting ₦2,358,412,000 as total revenue. This rise is similar to 2016, with ₦2,835,863,000. By 2017, total revenue had reached ₦3,675,712,000.
Similarly, Cutix Plc performed relatively well in terms of profits. The company recorded a profit after tax of ₦151,423,000 in 2013, and by 2014 increased that amount to ₦207,116,000. Unfortunately, profit decreased to ₦149,209,000 in 2015, increased yet again to ₦190,551,000 in 2016, and then ₦257,498,000 in 2017.
In conclusion, Cutix Plc is doing okay, but it can do better. This is a truth that even the management of the company acknowledges. This explains why they are making serious plans for the future.
The company is already developing “a new power plant, where power cable of all sizes in low voltage varieties of PVC, PE and XLPE will be produced.” It is expected that this move will, among other things, build capacity, while ensuring that they reach newer markets even as they, in turn, make profits.