August 11, 2006/guardian
To further enhance its repositioning and expansion drive, Pharma-Deko Plc has announced its intention to raise additional funds from the Nigerian Stock Exchange before the end of this year.
Revealing this to journalists at a shareholders\' forum in Lagos recently, the Managing Director of the company, Mr. Steve Osai said that the company will be raising N450 million from the capital market to service its debt and to enhance its expansion drive as production increases.
He explained that since the inception of the expansion project of the company, over N800 million has been committed to the project out of the initial estimated cost of N1.2 billion.
According to him, \"initial funding was supplemented with N80 million from Financial Derivatives Company (FDC), while N430 million additional borrowing came from Zenith Bank and the balance, from internally generated sources.\"
On its unannounced financial results for the year ended December 31, 2005, he said that the company is looking forward to better results even though the company\'s cash flow arising from the expansion project has impacted on its business since last year.
He added that the company is planning to increase the production capacity of its canning factory from 12 million cans per day to 15 million cans per day by addition of another three million from its first site.
In his words, \"50 per cent of the capacity of this canning factory, 13 reserved for our consumer business, that is 7.5 million cans per month, or roughly, N400 million sales per month on full capacity utilisation. Over the next 12 months, consumer business units will build-up the volume.\"
He went further saying, the company is making efforts to begin manufacturing of Anti-biotics and Anti-malarial drugs, beyond other products that the company is noted for.
Mr. Osai, however expressed optimism on the financial results expected from the pharmaceutical unit of the company saying that about 75 per cent increase is expected in profit and turnover.
With a successful contract packaging of canned beverages with Guinness Nigeria Plc, he said that the company is looking forward to partnerships with other contractors.