UAC of Nigeria Plc has recorded a profit after tax of N5.6 billion for the year ended December 31, 2016, just as the company plansÂ Â to bolster its operations with a capital injection of N15.4 billion through a Rights Issue. The Chairman of UACN, Mr. Dan Agbor, disclosed this yesterday at the companyâ€™s annual general meeting (AGM) in Lagos.
According to him, â€œYou will recall that in the chairmanâ€™s statement that I made at the AGM last year, and which formed part of the 2015 annual report, I informed you that the board had taken a decision to discontinue the one for 12 Rights Issue that was approved at the 2015 AGM, due to the prevailing market conditions.Â Â I also informed you that the board and management would undertake the required investment in, and financial restructuring of, your companyâ€™s subsidiaries using internally generated funds.â€
â€œI am pleased to inform you that the rights issue of Portland Paints has been concluded while the rights Issues of Livestock Feeds and UACN Property Development Company (UPDC) are at various stages of execution, due to delayed regulatory approvals.Â Â Grand Cereals also plans to raise equity by way of a rights issue that your company also intends to subscribe for,â€ he added.
Agbor noted that theÂ board has identified an urgent need to bolster the companyâ€™s capital position, saying â€œthis will ensure that your company is able to subscribe for these Rights Issues and provide its subsidiaries with working capital support in a timely manner, so that the subsidiaries can quickly respond to challenges and take advantage of emerging opportunities.â€
Speaking on the companyâ€™s performance for 2016 financial year, the chairman saidÂ despite the daunting challenges posed by the operating environment, UACN was able to deliver a mixed to good resultÂ Â through cost optimisation initiatives, innovation in key categories and extensive retail market expansion.
He said the company recorded revenue of N84.607 billion in 2016, an increase of 15 per cent from the N73.771 billion in 2015, whileÂ Â profit after tax rose 10 per cent from N5.162 billion to N5.666 billion.
Based on the improved performance, the directors recommended a dividend of 100 kobo per share.
The chairman saidÂ in 2017, the company would focus onÂ consolidating the initiatives that we started in 2016, support growth and working capital through equity calls, unlock value through the realisation of under-performing assets and restructure the route to market architecture across the group.