Otudeko woos entrepreneurs to list companies on NSE

Proshare


Stock Exchange, Mr. Oba Otudeko on Tuesday urged entrepreneurs in the private sector to bring their privately owned companies for listing on the official list of the NSE.


This, he said, would help to reduce the reliance of the Exchange on the banking sub-sector.


Otudeko, who spoke during the listing of Honeywell Flour Mills Plc at the NSE on Tuesday, said the stock market on the banking sub-sector would be reduced through the listing of companies in the manufacturing and other sectors of the economy.


Honeywell listed 7.930 billion ordinary shares at N8.50 per share.


Otudeko, who is also the Chairman of Honeywell, said, ‘‘We need to bring to the market some companies we own in private capacities. We want to reduce the reliance of the market on the banking industry for growth. If you have your own companies in the manufacturing, and even in the art and craft industry, bring them for listing in the stock market, and that would enhance the growth of the market.‘‘


Addressing stockbrokers at the listing ceremony, the company‘s Managing Director, Mr. Babatunde Odunayo, said the company had an authorised share capital of N4bn, comprising 8,000,000,000 ordinary shares of 50 kobo each, with a total paid-up capital of N3.965bn, comprising of 7.93 billion ordinary shares of 50 kobo each.


He presented the company‘s income statement for the period ended March 31 2009, which indicated that its turnover rose from N18.77bn in 2008 to N25.96bn in 2009.


After tax profit was N816m in 2008 and N209m in 2009.


In the half-year ended September 30, 2009, the company recorded an after tax profit of N892m over N271m in the corresponding period of 2008 on a turnover, which rose from N13.1bn to N15.49bn.


Commenting on the result, he explained that the company‘s wheat purchases and projects were financed with dollar borrowing at N117 to a dollar, while the repayments of the facilities were made at the devalued rates.


According to him, ‘‘The performance was significantly affected by the exchange rate loss of N540m, arising from the deliberate devaluation of the naira by the CBN.


“The exchange rate slid from about N117 to a dollar in November 2008 to an average of N146.28 to a dollar in the last quarter of the financial year in response to the global economic crisis and the resultant decline in federal revenue.‘‘


He added, ‘‘The profit after tax was significantly affected by a deferred tax charge of N388m. However, the half year result was enhanced by effective cost management and increase in overall product volume and turnover among other.”


(Source:Punch)

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