Portland Paints grows 2017 profit by 576%
Portland Paints and Products Nigeria Plc, a subsidiary of UAC of Nigeria Plc, has reported a profit after tax of N58.17m for the 2017 financial year, compared to N8.6m in 2016.
“We are optimistic of maintaining this trend in 2018, which will further consolidate our company’s resilient position,” the Chairman, Portland Paints and Products Nigeria, Mr Larry Ettah, told shareholders at the company’s Annual General Meeting in Lagos.
He said the company’s business repositioning drive led to improved performance in 2017, adding its revenue increased by 26 per cent to N2.32bn from N1.971bn in 2016.
“We successfully accomplished the company’s rights issue with 65.6 per cent subscription. This capital injection enabled the business to liquidate its major interest bearing loans as well as improve its working capital,” Ettah added.
On the outlook for 2018, the chairman stated that the company would consolidate on the gains achieved so far and focus on the execution of its route to market strategy as well as new business development initiatives.
According to him, the company will also expand its marine and protective coatings space in the Nigerian oil and gas sector.
Ettah said, “The year 2017 started with a challenging operating environment. In the first half of the year, the economy witnessed scarcity and high cost of foreign exchange which culminated into shortage and high cost of raw materials input, leading to inability of businesses to meet their customers’ commitments.”
He said despite these challenges, the company made some bold moves in expanding its customer base, engaged and improved the relationship with industry professionals, as well as worked to get specified on new projects.
The chairman announced changes on the board of the company with the resignation of Mr Bayo Osibo with effect from October 4, 2017 and the appointment of Mr Adedamola Olusunmade as the new Managing Director/Chief Executive Officer.
According to a statement, Olusunmade succeeds Mr Mukhtar Yakasai, who has taken another appointment within the UACN group, while he remains a non-executive director on the board of company.