UAC of Nigeria Shareholders Approve N1.86 Billion Dividend Payout
UAC of Nigeria Plc yesterday assured stakeholders of steady growth in profitability even as the shareholders of the company approved the N1.86 billion dividend recommended for the year ended December 31, 2017. The dividend, which translated to 65 kobo per share was approved at the annual general meeting (AGM) held in Lagos yesterday.
The shareholders, who hailed the dividend payout, said they were appreciative of the efforts being made to ensure delivery of increased returns on investments going forward.
Addressing shareholders at the AGM, Chairman of UAC of Nigeria, Mr. Dan Agbor said the company recorded a revenue of N89.1 billion, up from N82.6 billion in 2016. Profit after tax declined sharply from N5.6 billion to N963 million in 2017, reflecting the compression in the margins of operating subsidiaries.
He said: “You will recall that a total of 960,432,193 ordinary shares of 50 kobo each were issued in this process, at a price of N16.00 per share, and I am pleased to report that as at a result of your strong support, the rights issue was 104.5 per cent subscribed. This reflects the confidence that you still have in your company. You have my assurance that the proceeds of the rights issue are already being applied for the intended purposes and will ultimately improve shareholders value. I am also pleased to mention that some of our subsidiary companies undertook successful rights issues during the financial year.”
Speaking on the outlook of the company, Agbor noted that the 2018 year is a transitional year, in which the board will begin to tackle the root causes of the company’s historical declining performance and implement initiatives to drive future profitable growth.
“Specific area of focus will be on capital allocation and portfolio composition, human capital, operating company strategy and most importantly, reinforcing a group-wide culture of accountability and responsibility. We will also seek to better link employee compensation to the creation of long term shareholder value. I am excited by the challenges as well as by the opportunities that lie ahead, and I assure you that your board and the management of your company are well equipped to meet these challenges and take advantage of the opportunities in the Nigerian economy generally and in our existing businesses more specifically,” he said.