Meyer Plc one of the leading paint, industrial and marine coating manufacturers in Nigeria has announced that it is not indebted to the Asset Management Corporation of Nigeria (AMCON), even as it disclosed plan to build a 50, 0000 litres per day modern production factory.
The chairman of the company, Mr. Kayode Falowo, who disclosed this at the company’s 47th Annual General Meeting (AGM), held in Lagos, recently, said AMCON’s debt which had been a major burden for some years was successfully negotiated to a sum and paid off.
“As a major player in the painting industry but unfortunately there was a reversal in the fortune of the company and part of what we met as a new board of the company was a heavy load of indebtedness which had been pass on to AMCON and working with our colleague we have been able to wind down all outstanding amounts.
“As of today the company is debt free, so one of our mid-term strategy is to reposition the company through various initiative to improve our production capability to a facility of about 50,000 litres per day.
“So will think is time for us to move on to build a new production facility and that is why we are relocating from our current location to provide us with the opportunity for re-engineering our own processes that is in line with modern trend in Manufacturing sector,” he said.
He said this was a major milestone to the quest of ensuring financial stability of the company as revenue declined by 12 per cent from N 1.097 billion in 2017, to N 970.13 million in 2018 and gross profit increased by 16 per cent from N332.80 million in 2017, to N385.55 million in 2018.
He also added the increase in gross profit is attributed to the significance efficiency recorded in the procurement of raw materials, with Profit After Tax (PAT) increasing by 219 percent from loss position of N267.84 million in 2017 to N319.19 million in 2018.
Meanwhile, the AGM witnessed the ratification of a new Managing Director, Devashish Nath, who noted that the modern factory would increase the company’s market share.
“We would be having better technology in the new production plants that will definitely boast our share values in the coming years, and would keep working to improve our operational efficiency, to get economics of volume,” he added.
Earlier, shareholders urged the company to turn around the fortune of the company so that they can start receiving dividend.