Afromedia proposes N202m dividend Set to shore up capital base

Afromedia proposes N202m dividend Set to shore up capital base

 

Afromedia Plc has announced a dividend of N201.77 million, representing a dividend of five kobo per share for its shareholders in its 2009 financial year.

 

 

The company also announced its plans to shore up its capital base, either by raising funds from the capital market, debt market, through loans or by any other means.The dividend and capital raising exercise, according to Mr. Patrick Nwabunie, Group Deputy Managing Director, is subject to the approval of its shareholders at its forthcoming annual general meeting which is scheduled to take place in Lagos, Wednesday.

 

 

According to Nwabunie, who was speaking in Lagos last week, its decision to declare dividends was borne out of its desire to reward its shareholders and make it possible for them to enjoy the benefits of their investment.

 

 

He said, “In spite of the difficulties in the environment, we are declaring dividends, this is surprising.If you look at it further, we are declaring dividends because we believe that our shareholders and those who have invested in our company should share in the fortunes of the company, especially in these trying economic times.

 

 

“Going forward, it is our intention to continue to see how we can sustain this issue. We cannot categorically say is what we will do, but we have our projections, and we are optimistic that will be able to meet up with these projections.

 

 

“We are sharing fortunes of the business with our shareholders. We are declaring dividends and it is our intention to continue to partner more with them, and that is what we have already done, year in year out. To this end, we are optimistic that the next financial year will be better than the present and the past.”

 

 

The company is putting forward to its shareholders, through an ordinary resolution for approval, its plans to shore up its capital base so as to be in a better position to pursue its expansion plans in the months ahead. The resolution reads, “That pursuant to Article Four of the Company’s Article of Association, the directors be and are hereby authorised to raise additional capital whether by way of subscription of shares, whether foreign or local, and/or by way of rights, debentures, loans, bonds or any other arrangement at a date and upon such terms and condition as the Directors may deem subject to obtaining the approvals of relevant regulatory authorities.”

 

 

The company’s turnover grew by 23 per cent to N2.396 billion from N1.956 billion in 2008, while its profit after tax appreciated by 22 per cent to N340.790 million from N438.522 million in 2008. Its current asset grew by 37 per cent from N3.453 billion in 2008 to N4.724 billion in the year under review, its shareholders’ fund rose by six per cent to N4.928 billion from N4.632 billion in 2008.

 

 

Nwabunie noted that the company is committed to the strategic expansion of its business, so as to bring about improved performance in the long term. He further stated that the company will continue to invest in strategic businesses throughout the country and beyond.

 

(Source:Vanguard)


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