Academy Press explains non-payment of 2015 dividend

Academy Press Plc has attributed the non-payment of 2015 dividend to the recent capacity expansion exercise embarked on by the firm.

The company’s chairman, Chief Simeon Oguntimehin, while addressing shareholders during the company’s yearly general meeting held in Lagos at the weekend, explained that the burden of the capacity expansion has impacted on the cash flow, noting that the company was unable to recommend dividend payment for the year.

“We have repositioned our facilities with huge investment in capacity expansion within the holding company and its two subsidiaries. This was also with its attendant incremental overhead costs.

“The environmental factors during the period deprived us of the needed revenue which added to the pressure on our costs.”

He, however, explained that the directors of the company are recommending a bonus of one share for every five units held in the company, adding that this will translate into the sum of N50.4 million to be appropriated from retained earnings, which translate to 108 million additional shares to be capitalized.

Oguntimehin, pointed out that several negative developments in the environment tend to affect the business revenue and fortunes. He explained that the holding company and its subsidiaries are working out modalities to harmonise some common areas of their operations to streamline revenue and cost.

He assured shareholders that the company would continue to strategise to engage the markets positively and adopt cost saving measures to sustain the business. 

“The holding company and its subsidiaries are being made to harmonise some common areas of their operations to streamlined revenue and cost. We should witness an operational tactics that are more responsive to the environment and produce better results in the nearest future.

Reviewing the company’s performance, the Chairman explained that the revenue for the year remained almost at par at N2.31 billion against N2.34 billion of the previous year.

The Group loss after tax declined by 128 per cent to N25.52 million from a profit after tax of N90.27 million in 2014, while its earning per share went into a negative of five kobo from 18 kobo in 2014.

On the future outlook, he said that the measures being adopted will turn around the fortunes of the company to deliver better returns to shareholders this year, while promising that the company will pay dividend at the end of 2016 financial year.