Flour Mills Group of companies posted an annual turnover of about N86.5 billion for the year 2005, as against N66.8 billion that was recorded in the previous year.
Its profit before taxation for the year under review stood at N6.3billion, and profit after tax and minority interest also rose from N1.5 Billion to N4.6 billion.
Interestingly, the company recorded a very impressive performance. It attached a growth of about 27 percent in turnover which went up from N50.96 billion to N64.86 billion. Profit before Taxation of N4.3 billion was not only a record but it also surpassed the projected figure of N2.3 billion in the Rights Circular issued in October 2004. The result represents a 46 per-cent increase over Profit before Taxation of N1.7 billion posted in 2005. While, after tax profit, went up from N1.3 billion to N3 billion, an increase of 131%.
This came as the companyÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s Managing Director (MD), Chief Emmanuel Ukpabi yesterday revealed that the company has recently acquired a N2.3 billion gas plant to boost the company production capacity.
Upkabi who briefed media men in Lagos yesterday on the modernization of the company noted that the enhanced bottom line for the company was largely attributable to improved efficiencies resulting from huge investments in state-of-the-art mills and ancillary equipment, power generating capacity, of human capital resources and a significant reduction in financial cost.
ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Â¦ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œIn view of the impressive result, the Directors are pleased to recommend to shareholders at the Annual General Meeting, payment of a cash dividend of N990,080,000 that is 85 kobo per ordinary share of 50 kobo each, which is payable net of withholding tax. The dividend proposed is slightly higher than the forecast of 80 kobo in the Rights Circular dated October 27, 2004. Total dividend payable represents 21 percent increase over N815,360,000 distributed to shareholders last yearÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â he added.
In line with the CompanyÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s capitalization policy, Ukpabi stated the Directors have considered it desirable to plough back part of its earnings in order to strengthen the capital base, adding that, the balance sheet lay good foundation for future growth.
This, he said, will be achieved through capitalization of part of the revenue reserves so that Flour Mills Group of companies was well placed to pursue its ambition geared towards its modernization programme that will meet its current and future capital commitments.
On the newly acquired gas plant, the Managing Director stated that it will help the company cut down on production cost.
ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Â¦ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œThe landing cost for the seven plants is n1.5 billion, excluding installation cost and the cost of building the house where they are seatedÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â he added.
Ukpabi also revealed that Flour Mills Group has started to implement the Federal Government directive on the inclusion of cassava in the production of flours.
Though, this did not go without some teething problems, but added that the company was thinking toward that direction. According to him, Flour Mills have also acquired about 10,000 achers of land for the cultivation of cassava