IFC grants Vitafoam $2.8m to establish factory in Sirrea Leone
Category: Investors NewsBeat
March 29, 2012
Vitafoam plc, maker of block mattresses and other home-made comfort products, has revealed that it just got a $2.8 million, (N4.8 billion), soft loan for the construction of a proposed foam factory in Sirrea Leone.
Samuel Bolarinde, chairman of Vitafoam, making this disclosure at the company’s 50th annual general meeting in Lagos, said “it is possible to think about expansion to other shores, following the turnaround of the company and Vono Products plc going on as planned.”
Also, the repositioning of the company is nearing completion, while the factory operations are running smoothly, churning out regular output of products at acceptable standards into the market.
Bolarinde disclosed that a highly professional management team had been assembled at Vono and a highly motivated workforce was already positioned, saying “we can now expect an impressive performance from that company in the future. Our Ghana operation has finally turned the corner. For the first time, Vitafoam Ghana Limited recorded a modest profit which we hope will continue to improve in the years ahead.”
He went on to reveal that, the set up of the company’s insulation manufacturing and contracting company, Vitapur Nigeria Limited, was nearing completion. It has taken a little over a year to procure and install required factory equipment, extensive training local and foreign of different categories of personnel is also in progress.
The chairman also went on to announce the company’s full-year result, revealing that it made a turnover of N14 million compared with N11 million achieved in the same period of the preceding year.
Also, profit before taxation increased from N836 million in 2010 to N970 million in 2011, while profit after tax grew from N526 million the previous year 2010 to N673 million.
“The foregoing reveals a healthy growth in turnover but a rather modest performance in profitability. The main challenge that confronted us was the astronomical increase in the cost of our raw materials as well as other operational costs that could not be passed on to the consumer. I want to assure you all that our business model is being modified to overcome all prevailling challenges with the hope of improving further the company’s profitability in the coming years.
“Based upon the result of the year ended September 30, 2011, the board of directors is recommending to the shareholders at this annual general meeting a dividend payment of N245.7 million, representing 30 kobo per share. The dividend will be paid subject to the deduction of withholding tax at the appropriate rate,” he stated.