UAC of Nigeria has rewarded shareholders with N1.92 billion dividend payment even as the company positions for growth against the backdrop of an extremely challenging economic and business environment.
Speaking at the company’s Annual General Meeting on Wednesday in Lagos, the Chairman of UAC of Nigeria Mr. Dan Agbor, said that against the backdrop of an extremely challenging economic and business environment in 2015, the company recommended a dividend of 100 kobo per share.
He explained that the dividend was declared to conserve funds so that shareholders can participate in the Rights Issues to be undertaken by UACN Property Development Company Plc, Livestock Feeds Plc and Portland Paints & Products Nigeria Plc.
On the financial performance, he noted that UAC recorded a group revenue of N73.I billion which was down by 14.6 per cent from the N85.6 billion recorded the previous year.
According to him, its group profit after tax of N5.2 billion was down by 52.6 per cent on N10.9 billion of the previous year.
Commenting on the capital requirements, he said the objective of the capital raising proposals that were presented to the shareholders at the Annual General Meeting that took place on the 23rd of September 2015 was to attract a strategic investor or investors and obtain equity control that would be used to drive growth in certain subsidiaries.
He said, “Following your approval of a 1 for 12 Rights Issue of 160,072,032 ordinary shares, your board and management made all necessary arrangements to launch the Issue.
“Unfortunately, however the weak performance of the Nigerian capital market has made it impossible to raise the requested capital on optimal terms and at the end of March 2016, a decision was taken by the Board to discontinue the Rights Issue.”
He stressed that the company will now undertake the needed investment and financial restructuring of those subsidiaries using internally generated funds.
The chairman added that since the last Annual General Meeting two members of the board of directors Senator Udoma Udo Udoma and Dr. Okechukwu Eyinnaya Enelemah were appointed as Honourable Ministers of the Federal Republic of Nigeria.
He said that following the appointments and resignations from the board, Dr Okechukwu John Mbonu and him were appointed to the board in accordance with the law and Articles of Association of the company.