JBerger shareholders take biggest dividend in 6yrs
Category: Daily & Weekly Market Updates
June 25, 2006
Directors of Julius Berger Nigeria Plc have declared an all time high dividend of 70kobo per share for their shareholders. It is the benefit of their investment in the company for the financial year ended December 31, 2005. The return on investment (ROI) for the reviewed financial year was 180 per cent higher than the 25 kobo per share dividend paid to the investors in the preceding financial year ended December 31, 2004.
The upward swing in return commenced in 2004 after a sloppy trend which persisted from December 31, 2001 till December 31, 2003.
The construction company in the reviewed period ended December 31, 2005 recorded a significant increase in business which imparted positively on its turnover. The turnover figure presented to investors and stakeholders in the Nigerian Stock Exchange (NSE) was N40.8billion representing increase of 38.3 per cent compared with N29.5billion in the corresponding period of 2004. Profit after tax (PAT) recorded a significant growth at N626.9million representing increase of 354 per cent compared with N137.4 million in December 31, 2004.
Profit margin of the company as a result of the increase in net profit inched higher by 1.07 percentage points from 0.46 per cent in 2004 to 1.53 per cent in 2005.
It implies that the company is becoming more prudent in cutting cost and increasing profit for investor as 153kobo out of every N100 revenue generated in the year was converted to profit as against to only 46kobo the preceding year.
Meanwhile capital market experts have attributed the favourable financial results in the reviewed period to the current boom in the construction sector. The same was applicable to the building material sector where Cement producers also got their share of the show.
Experts said shareholders of the company may likely get a better dividend at the end of the ongoing financial year ending December 31, 2006, noting that the boom would likely linger on for a time.