Portland Paints and Products Nigeria Plc (PPPNP), a subsidiary of UAC of Nigeria Plc has said it is restructuring and focusing on internal efficiencies for growth and value creation for stakeholders. Apart from restructuring its operations, the company said it will also raise additional capital through rights issue.
Speaking at the annual general meeting (AGM) in Lagos yesterday, Chairman of PPPNP, Mr. Larry Ettah said during the 2015 financial year, “we commenced a process of restructuring the business focusing on internal efficiencies and reviewing our route to market model in a bid to ensure that we build a sustainable future for the business.”
According to him, despite the challenges and risks posed by the business environment, the company, whose flagship brand is Sandtex, will continue to consolidate on the restructuring and seek growth opportunities to deliver returns to the shareholders.
Commenting on the planned rights issue, Ettah said: “We will apply the planned rights proceeds to minimise the debt exposure risks of our business as well as carry out targeted expansion in our operations. The business will focus on its growth brands as well as make the necessary investment in marketing to improve its brands’ awareness and visibility.”
PPPNP’s core business is paint manufacturing and marketing with wide range of paint products in the Nigerian market. Besides, the company also represents leading bathroom manufacturers, Armitage Shanks and Ideal Standard.
“We have affiliations and relationships with many foreign companies whom we represent, for example, we are the leaders in the supply of protective finishes to the oil and gas industry, with our Hempel’s protective finishes. We represent Hempel of Denmark, and also manufacture or add value to some Hempel’s bases, under the local content initiative of the federal government. We are pioneers in changes to the paint industry from new products to technology change,” the company said.
Meanwhile, the Nigerian equities declined further as the Nigerian Stock Exchange (NSE) All-Share Index fell by 0.45 per cent to close loser at 27,475.48. Similarly, market capitalisation shed N42.3 billion to close at N9.44 trillion. Losses in Dangote Cement Plc, Guaranty Trust Bank Plc and Nigerian Breweries Plc were mostly responsible for the depreciation the market suffered.
On the other hand, reports of a N94.6 billion loan restructuring deal triggered a rally that led to 10.2 per cent appreciation in the shares of Oando Plc to lead price gainers for the day.