Is Vono Products back to profitability?
 Vono Products Plc on Tuesday announced a profit before tax of N8.165m for the half-year ended June 30, 2006, as against a loss of N27.233m in the corresponding period of 2005.
The company recently reported a loss of N105.12m for the year ended December 31, 2005 due to the difficult operating environment and consequently, paid no dividend.
But going by the half-year result made available on Tuesday, investors may get a dividend for the year ending December 31, 2006.
Details of the half-year performance showed that Vono posted a turnover of N360.270m in 2006, compared with N95.556m recorded in the corresponding half of 2005.
Profit before tax was N9.072m, as against a loss of N27.233m in 2005, while net profit stood at N8.165m, up from a loss of N27.233m in 2005.
Explaining the half-year performance, the Managing Director/Chief Executive Officer, Vono Products, Mr. Laitan Odukoya, said the company had started reaping the fruits of the restructuring it embarked upon recently.
He said that having installed an N150m plant last year, the company also restructured its marketing arm for a better performance.
Odukoya said, What we did was to take a look at the issues the customers wanted us to address. We have started addressing them in terms of quality, pricing, products availability and marketing support. This has led to a significant rise in turnover of the half-year of 2006, which is 35 per cent higher than the turnover recorded in 2005 full year.â€ÂÂÂ
The Vono products boss said that all stakeholders should expect better results in 2006. He projected a turnover of over N700m and a profit of over N20m.
Although, the company used some of the funds raised in 2004 to install a new plant and enhanced working capital, Odukoya said that the company would yet access the market for more funds shortly.
He said, Having been out for so many years, we want to ensure that we get it right because we cannot afford to fail again.
That is why we are trying to ensure that we use the available resources to re-engineer the company and put in on the path of growth. Once we can do that and exceed our shareholders expectation, we will definitely look at raising more funds for the company.â€ÂÂÂ
- punch
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