CAP Plc pays N1.64b dividend, tasks govt on operating environment
Following a profit after tax of N1.66 billion for the 2014 financial year, shareholders of CAP Plc, a subsidiary of UAC of Nigeria PLC and manufacturer of Dulux paint brand, have approved a final dividend payout of N595 million.
This is in addition to the interim dividend of 150 kobo per share paid on November 19, 2014, thereby bringing the total dividend for 2014 financial year to N1.645 billion, representing 235 kobo per share.”
Indeed, the shareholders also commended the company for its sustainable practice in terms of dividend declaration and payout.
Besides, the Chairman of the Company, Larry Ettah noted that efforts to address unclaimed dividends would require a tripartite arrangement between the company, regulator and the shareholders.
Indeed, the company posted a Profit Before Tax of N2.44 billion in 2014, an increase of 17% over the previous year as Turnover rose to N6.99 billion, a growth of 13% during the same period. Addressing the company’s shareholders at the yearly general meeting in Lagos, Ettah said: “Based on this performance, the Board has recommended a final dividend of N595 million, representing 85 kobo for every 50 kobo of ordinary share to shareholders.
Commenting on the operational environment, Ettah noted that businesses have continued to endure the usual challenges of poor infrastructure and public services, insecurity, official corruption, multiple taxes, power supply shortfalls and volatile capital market.
He explained that power supply declined so precipitously in the country that public power became non-existent just as the currency devaluation heralded another round of sharp increases in the prices of inputs.
He stressed that coupled with the elevated political risk due to the elections recently held in the country, investment dried up as consumer purchasing power remained weak.
He stated that the effects of these developments on the economy were low corporate revenues and margins and higher cost of doing business.
On the company’s outlook, Ettah said: “As a forward looking business, we will continue to seek and harness opportunities that ensure we remain relevant and create more value for you, our esteemed shareholders and other stakeholders.
“We will invest in cutting edge technology for paint manufacture that will enable your company to efficiently meet the needs of consumers, allowing them to express their colour preferences in the local variant of our flagship brand.”
Reviewing the activities in the operating environment in 2014, Ettah said: “The year 2014 witnessed a growth of 6.23 per cent in GDP which was aided by increased output in sectors of agriculture, hotels and restaurants, building and construction and telecommunications of the economy.
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