Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In Proshare - RSS Feed

NBC gives scrip option, Oando to declare dividend


April 07, 2006/punch




Directors of Nigerian Bottling Company Plc, bottlers of Coca-Cola, have recommended an option for shareholders to convert the dividend declared for the company’s financial year ended December 31, 2005 into shares.

The directors recommended a dividend of 60 kobo per share for the 2005, showing a dip of 50 per cent from the 120kobo paid in 2004. According to the audited results of the compa, made available at the Nigerian Stock Exchange, NBC recorded a turnover of N55.4billion in 2005, up from N47.5billion in 2004.

Profit before tax stood at N3.57billion as against N3.3billion in 2004, while profit after tax fell by 24 per cent from N3.025billion in 2004 to N2.314billion in 2005.

Directors, therefore, recommended a dividend of 60 kobo per share to be paid on July 10 2006 to shareholders whose names will appear on the company’s register on May 5, 2006.

However, the company gave an option that any investor not willing to take cash could convert the dividend into more shares. For the purpose of the conversion, the price of the equity on May 24, 2006, which is the day the company will hold its annual general meeting, has been chosen.

Apparently expressing their dissatisfaction over the reduction in the dividend, some investors have been disposing off their shares, a situation that had led to a dip in the equity price of NBC. It dipped from N56 to N49.50 between Tuesday and Thursday.

Meanwhile, strong indications have emerged that the directors of Oando Plc might meet next Monday to approve the company’s financial results for 2005 and recommend return investors are to get.

As a company quoted on both the Nigerian Stock Exchange and Johannesburg Stock Exchange, Oando on Monday announced provisional results for the year ended December 31, 2005, based on International Financial Reporting Standards.

That results, though was also made available to the NSE, was specifically meant for the JSE.

However, reliable sources said that the directors would meet in Lagos on Monday to approve the final results meant for the NSE.

In the provisional results, Oando reported an increase of 91 per cent in turnover to N196.75billion while operating profit increased by 17 per cent to N4.41billion. Group profit after tax increased by 94 per cent from N1.06billion to N2.36billion.

The Group Chief Executive Officer, Mr Wale Tinubu, said, “We are pleased to deliver a satisfactory set of results to shareholders, with earnings per share increasing by more than 100 per cent from N1.54 to N3.65. Despite the pressure on margins, our continual drive to expand into higher margin businesses is proving successful.”

According to him, in 2005 Oando continued to build on becoming an integrated energy solutions provider by securing participating interest in two prospecting oil blocks.

Related News