Shareholders approve Custodian Investment’s plan to raise $15m
Shareholders of Custodian Investment Plc have authorised the board of directors of the company to raise the naira equivalent of up to $15m as additional capital through a convertible loan instrument.
A statement titled ‘Shareholders approve Custodian Investment’s plan to raise $15m fresh capital’, said that the shareholders gave the approval at the 26th annual general meeting of the group in Lagos on Thursday.
They also authorised the directors of the company to convert the loan into shares in the company at a conversion price higher than N6 per share or the 12-month historical daily share price of the company derived from the daily official list of the Nigerian Stock Exchange for the period ended March 23, 2021.
Another major highlight of the meeting was the approval of payment of 55 kobo dividend recommended by the directors.
Meanwhile, an interim dividend of 10 kobo had been paid earlier during the year, it stated.
The President of Nigeria Shareholders Solidarity Association, Mr Matthew Akinlade, said the performance by the board and management of the company was a good one based on the financial indices.
The association’s National Coordinator Emeritus, Sunny Nwosu, also lauded the company’s performance and returns on investment.
Another shareholder, Mr Adeleke Adebayo, commended the company for weathering the storm of 2020 and its challenging operating environment.
Addressing the shareholders at the meeting, the chairman of the board of directors, Dr Omobola Johnson, said, “I am delighted to report that our company recorded significant successes during the 2020 financial year despite the challenging operating environment, a fallout of the global COVID-19 pandemic and the resulting weak oil earnings, Naira devaluation and high inflation.”
She noted that the successes recorded by the company in 2020 was an affirmation of the robustness of the group’s business model, which allowed it to quickly adapt to the fast-changing environment, the astute leadership of the company supported by energetic employees using technology to efficiently provide prompt services to clients.
In spite of the challenges faced during the year under review, she said, the group more than doubled its profits by posting a profit after tax of N12.69bn as against N6.01bn achieved in 2019.
She said revenue grew by 22 per cent to a new high of N75.06bn compared with N61.42bn in 2019.
Total asset base also increased from N118.02bn in 2019 to N176.16bn in 2020, representing a growth of 49.26 per cent, while the shareholders’ fund grew by nine per cent to N47.65bn from N43.7bn in the 2019.