One week after FBN Holdings Plc assured stakeholders that it would deliver better value in the years ahead, the shares of the company rose 21.95 per cent as investors renewed for the stock.
FBN Holdings Plc ended 2016 with a profit of N17.1 billion and paid a dividend of 20 kobo per share to shareholders. The performance was below expectations due to huge provisioning made for impairment charges.
However, the Chairman of FBN Holdings Plc, Oba Otudeko two weeks ago assured stakeholders of better performance going forward. And in apparent reaction to the assurance, investors renewed demand for the shares at the stock market last week. This high demand led to a growth of 21.95 per cent in the share price, rising from N4.01 to N4.89. Market analysts said some discerning investors are making early entry to position for the rebound in the companyâ€™s fortunes.
Otudeko had, at the annual general meeting (AGM) said: â€œI want to assure our esteemed shareholders that FBN Holdings is actively preparing for the future and the challenges ahead with the advancement of the groupâ€™s innovative projects and continuous extraction of the opportunities that abound in our holding structure. Overall, we are better positioned to deal with the shocks to our businesses and to sustain our growth momentum.â€
He noted that together with management, the board remains resolute and are confident that opportunities abound in their chosen markets.
â€œOur brand remains strong and our workforce posses the necessary skills, vigour and experience to reposition the group for the future. We are forging ahead with greater optimism and determination, knowing that we are well positioned to meet the aspirations of our stakeholders,â€ Otudeko said.
Speaking in a similar vein, the Group Managing Director, FBN Holdings Plc, Mr. UK Eke said: â€œHaving completed the most challenging period of our journey which saw us recognize an outsize impairment charge and now that we can clearly see improved results beginning from 2017 financial year, shareholders have every reason to be optimistic of higher return on their investment.â€
According to Eke, the path to repositioning FBN Holdings has demanded razor-harp execution discipline, hard work, dedication and unwavering commitment to the course.
He said as the group managing director, his greatest responsibility was to hold firmly the compass and help the group navigate the murky waters in reaching the desired destination that addressed the interests of numerous stakeholders.
â€œSimilar to other years, 2016 presented the group with limitless opportunities, wrapped in challenging economic conditions. During the year we have had to battle escalating operating cost in an inflationary environment and we sought to grow our operating income in a recessionary environment. In all of these, we have shown resilience and dedication o the grand agenda ensured we surmounted these challenges, rebuilding the institute, one brick at a time,â€ Eke said.