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Costain WA proposes N3.30k dividend in 2011


Proshare NI

April 23, 2008 at 16:38 GMT


Construction giants Costain West Africa Plc has proposed a N3.30 Kobo in 2011, this was contained in a financial forecast of the company for the 2009, 2010 and 2011 financial years end.


The company is proposing to give its investors N1.00 and N1.80 Kobo for the 2009 and 2010 respectively.


This is contrary to the forecast made by the company during its hybrid offer of Rights Issue and offer for subscription; when they raised fresh funds for the purpose of scaling up the operational capabilities of its construction business and diversifying its revenue base through the establishment of strategic business units.


During this period, Costain WA projected a 65 Kobo and N1.50 Kobo dividend for the 2009 and 2010 year end compared to the newly proposed N1.00 and N1.80 Kobo for the same period indicating a 54 percent and 20 percent increase respectively.


For the new forecast of the company, dividend payout is expected to grow from N1.00 in year 2009 to N3.30 Kobo in 2011 representing a growth of 230 percent.


Phil Wharton, Chief Executive Officer (CEO) of Costain WA confirmed to Proshare NI that the new forecast for the 2009, 2010 and 2011 financial years end is a reforecast made to the Securities and Exchange Commission (SEC) to justify the absorption of the 25 percent oversubscription from the 2007 hybrid offer of the company.


“There are minor differences in our earlier forecast during the hybrid offer; this is due to additional funds the company has sourced through the absorption of the 25 percent oversubscription from the offer; which we are using to create more value for our investors” he affirmed.


“If you consider our share price movement in the period under review, you will discover that for 14 months, between February 2007 and as of yesterday, our share price has hit N59.00; which is great” he said.


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