One of the paint manufacturers in the country, Meyer Plc said it recorded gross revenue of N1.097 billion in its 2017 financial trading year. This was an increase by 0.5 per cent, compared with a gross revenue of N1.091 billion it recorded in 2016.
Disclosing this recently in Lagos at the companyâ€™s 46th annual general meeting (AGM), the Chairman, Meyer Plc, Kayode Falowo, said the company recorded a net loss of N267.74 million, compared with N214.4 million in 2016.
He added that with negative working capital of N992. 74 million, the capacity utilisation of the company for the year under review dropped to 21 per cent of the installed capacity leaving 79 per cent of idle to be financed, therefore he noted that the company was unable to meet its orders as at when due.
According to him, â€œThe 2017 right issue of a total 291,489,840, shares at 75 kobo each was completed with 70.75 percent success amounting to N154.67 million.
â€œA total of 85,252, 117 ordinary shares representing 29.25 percent of the subscribed portion of the right issue were cancelled and reverted to the unissued shares of Meyers Plc.
â€œFollowing the receipt of regulatory approvals, the registrars have concluded the allotment of the rights and share certificate dispatched accordingly.
â€œThe implementation of the Auto Industry Development Policy (AIDP) which portends increased sales for our Auto-refinishes has not taken off with the anticipated momentum.
â€œThere is renewed that government will intensify this in 2018 and we are assured of a share of the market.â€
He noted that the Asset Management Company of Nigeria (AMCON) loan, which had been a major overhang on the company, had been resolved.
â€œWe have reached a mutual beneficial compromise and in due course, it will be fully resolved. The waiver granted us in the AMCON loan will be reflected in 2018 financial report,â€ he added.