NAHCO’ five-year plan’ll deliver greater returns

The board and management of Nigerian Aviation Handling Company (NAHCO) Plc at the weekend assured shareholders that ongoing implementation of a strategic five-year growth plan will lead to a more agile and profitable company.

At the Annual General Meeting (AGM) in Kano, directors of NAHCO laid out strategic growth objectives, key implementation drives, challenges and transformational initiatives being taken to sustain the company as the leading ground handling company with sustainable returns to shareholders.

The first AGM by the new board and management of the company, directors of the company outlined that they have launched a new five-year strategy and transformation plan that covers between this year and 2023, which is expected to drive growth, service improvement, improved profitability and also ensure that NAHCO maintains its leadership position, despite increasing competition in the ground handling business.

The assurance came as shareholders approved the distribution of N406 million as cash dividend for the 2018 business year, representing a dividend per share of 25 kobo.

Nigerian Aviation Handling Company (NAHCO) Plc Chairman, Dr Seinde Fadeni, said the new board and management have reset the company’s group structure and operations and have started implementing key initiatives to address cost structure, realign products and interface with customers and other stakeholders with a view to ensuring optimal performance in the years ahead.

He said the company has started modernisation of its warehouses in order to position itself for global changes in cargo handling and management noting that NAHCO is currently investing in warehouse refurbishment, facility and equipment upgrade to ensure leadership in all areas of air cargo within the West and Central African region.

He pointed out that while increased costs of operations and administrative expenses impacted the company’s performance in 2018, the new management has been addressing these cost centres to ensure improved efficiency and competitive returns.

“It is my belief that our company will grow more rapidly in the coming years in light of the measures and innovations being implemented,” Fadeni said.

According to him, the company’s five-year strategic plan was anchored on five strategic pillars of operational excellence, digital transformation, people and culture transformation, organic and inorganic growth and diversification. These pillars would be driven by three main enablers including adequate funding and capitalisation, financial grip and enhanced risk management.

He explained that the company’s strategy for growth entails maximising parent company and subsidiary companies’ opportunities and capacity utilisation while taking advantage of market trends and the group’s dominant market position.

“We are restructuring our strategic business units (SBU) and subsidiary companies in such a way that from now on, every member of the NAHCO Group contributes more to the overall profitability of the group. We have set a revenue target that is ambitious but achievable. We expect to grow our revenues by a factor of four times 2018 figure and achieve this over the next five years. We have resolved to maximise the revenue opportunities inherent in the synergies of our group,” Fadeni said.

He pointed out that the company is developing sustainable business plans for two of its subsidiaries-NAHCO Free Zone (NFZ) and Mainland Cargo Options (MCO) while exploring best strategy to ensure long –term viability of NAHCO Energy Power and Infrastructure (EPI).

“The company’s outlook for 2019 is positive, with the unwavering commitment of the board, management and staff, we are fully committed to perform better and deliver more value to you, our esteemed shareholders. We will continue to implement the strategic direction we have set for the transformation of NAHCO,” Fadeni said.

Fadeni noted that one of the critical elements of the company’s growth strategy is the asset renewal strategy and policy for all its plant machinery and equipment including ground support equipment (GSE) and cargo management equipment, which will help to improve service delivery and efficiency while reducing maintenance costs.

He said the company has commenced purchase of necessary machinery and equipment from international OEMS and reputable vendors with some of the equipment already received and commissioned into service.

According to him, the company has also commenced the upgrade of its infrastructure, facilities and equipment starting from the Lagos Warehouse Complex. Early 2019, it added a cold room facility to its Kano warehouse. It has also committed material investment and upgrades to its strategic business units in Abuja and Lagos.

“We have started on a good note in 2019, as we move into our 40th year of commercial operations with the acquisition of new and modern equipment and a new business strategy for growth. We are on a clear path of positive transformation. This is our new NAHCO, more profitable, more agile; the new board is committed to this transformation which will reposition the company for growth, carry out the necessary people transformation and culture change, achieve operational excellence and increased profitability,” Fadeni said.

Nigerian Aviation Handling Company (NAHCO) Plc Group Managing Director, Mrs Olatokunbo Fagbemi, said the new management has continued to make steady progress in driving the company’s new vision “to be the leading service provider, continuously innovating and reshaping our chosen markets”. Fagbemi assumed office in December 2018.

She explained that the “New NAHCO” is being built on core values of safety, integrity, innovation, reliability, respect and empathy noting that the “New NAHCO” is to ensure there is regular communication, transparency in decision making and sincerity in governance.

“We are building a culture of safety, security, innovation, integrity and ownership. Our “New NAHCO” is building a cohesive management team and an efficient workforce. Our “New NAHCO” is harnessing the strengths and opportunities of the group structure to drive growth and profit. Our “New NAHCO” is focused on retaining existing customers and on-boarding new customers. Our “New NAHCO” is focused on strong balance sheet, profit and loss and enhanced free cashflow. Our “New NAHCO” is focused on consistently delivering value to all stakeholders,” Fagbemi said.

She noted that NAHCO has continued to maintain internationally acceptable and recognised standards of its operations as the company earlier this year accomplished the feat of acquiring IATA Safety Audit for Ground Operations (ISAGO) certification in three major airports of Lagos, Abuja and Kano, making NAHCO the only ground handler in Nigeria to achieve this.

She added that the company also has achieved the Third Country EU Regulated Agent (RA3) revalidation of its operations in the major airports of Lagos, Abuja, Port Harcourt and Kano by the European Union.

“NAHCO has come out successful in all the airlines audits we have done this year. We have also received commendation for the new measures we have put in place to ensure stricter security and compliance to international standards at our facilities. In addition, our staff have received commendations from several airlines,” Fagbemi said.

She assured that in the coming months, the company will increasingly become an efficient organisation that is fit and able to deliver services at optimum prices to the delight of its stakeholders.

According to her, NAHCO is working with full understanding of the market place to create a win-win strategy with its suppliers and service providers to ensure that the costing and pricing is optimal and sustainable.

As the International Air Transport Association (IATA) pushes for more modern processes in anticipation of projected double in the size of the air cargo industry over the next two decades, Fagbemi said NAHCO is positioning for the global implementation of the e-Air Waybill (e-AWB) with a view to be able to provide ecargo service to all its customers and partners within the next 24 months.

She assured that the company is proactive and resilient enough to thrive despite domestic and global challenges, urging shareholders to support the company as it implements its growth plan and transformation agenda.

“We have a team that is seasoned and has a clear view of the strategic direction and what the competitive landscape is now vis a vis what it would be in the next few years. We have committed, dedicated and trained people focused on the customer,” Fagbemi assured.

Audited report and accounts of NAHCO for the year ended December 31, 2018 showed that turnover grew by 24 per cent to N9.83 billion. Gross profit margin increased from 29 per cent in 2017 to 32 per cent last year. With 19 per cent increase in operating costs and 27 per cent increase in administrative expenses, profit before tax dipped by 16 per cent to N503.2 million while profit after tax dropped to N196.8 million last year.

Source:© Copyright  The Nation

Nestlé Nigeria nets N26b profit in 6 months

Nestle Nigeria Plc recorded a well-rounded performance in the first half with increased sales and profitability. All key performance indices trended upward during the six-month period, raising the prospects that Nigeria’s highest-priced quoted company may surpass its previous performance.

Key extracts of the half-year report for the period ended June 30, 2019 showed that sales rose to N141.91 billion in first half 2019 as against N135.3 billion in corresponding first half of 2018. With decline in cost of sales from N79.71 billion to N75.83 billion, gross profit rose from N55.58 billion to N66.08 billion. Operating profit rose from N32.15 billion to N40.43 billion.

Considerable reduction in finance costs, from N1.12 billion to N888.68 million, boosted the bottom-line with net finance income of N2.42 million in first half 2019 as against deficit of N280.67 million in first half 2018. With these, profit before tax rose from N31.87 billion in first half 2018 to N40.44 billion in first half 2019. After taxes, net profit increased to N26.25 billion in first half 2019 compared with N21.46 billion in comparable period of 2018.

The company attributed the growth to consistent investment behind its brands, intensified efforts to communicate with consumers and continuous investment in route to market to deliver better value to consumers.

In a statement signed by Company Secretary, Nestle Nigeria, Bode Ayeku, the board of the company commended its consumers for their trust and continued loyalty as well as the discipline and dedication of its staff for driving sustainable and profitable growth.

Directors of the company noted that amid a challenging economic context, the company remains confident in its capacity to innovate to keep delighting consumers with nutritionally superior products and foster its people’s ability to win.

“In turn, these investments will continue to create shared value for our shareholders and for the people of Nigeria. In line with our purpose which is enhancing quality of life and contributing to a healthier future, we will remain focussed on enabling thriving and resilient communities through local sourcing, expanding the commercialisation of our food and beverages to deliver accessible and affordable nutrition to more people and strengthening our value chain to gain further efficiencies,” the board stated.

Nestle Nigeria distributed N30.52 billion as final dividend for the 2018 business year, bringing total dividend payout for the year to N46.42 billion. The company had in November 2018 paid N15.9 billion as interim dividend.

Shareholders received a final dividend per share of N38.50 in addition to interim dividend per share of N20, bringing total dividend per share for the year to N58.50.

With the dividend payout above the N43.01 billion net profit recorded in 2018, the company explained that the total payout of N46.42 billion included net profit for the year and part of the net profit for the 2019 business year.

According to the company, the final dividend of N38.50 per share comprised of N34.20 from the profit for the 2018 business year and N4.30 from the net profit for the 2019 business year.

Key extracts of the audited report and accounts of Nestle Nigeria for the year ended December 31, 2018 had shown that the company rode on the back of improved operating efficiency and finance cost management to optimise its bottom-line performance in 2018, growing net profit by 27.5 per cent to N43.01 billion.

The report showed that turnover rose to N266.27 billion in 2018 as against N244.15 billion in 2017, representing an increase of 9.06 per cent. Cost of sales increased by 6.33 per cent from N143.28 billion in 2017 to N152.35 billion in 2018. Gross profit thus rose faster by 12.94 per cent to N113.92 billion in 2018 compared with N100.87 billion in 2017.

Marketing and distribution expenses increased to N43.49 billion from N35.16 billion while administrative expenses dropped from N10.02  billion to N9.79 billion.

Operating profit consequently improved from N55.7 billion in 2017 to N60.64 billion in 2018. Finance costs dropped by 82.75 per cent from N15.109 billion to N2.606 billion. Profit after tax grew by 27.53 per cent from N33.72 billion in 2017 to N43.01 billion in 2018. With these, earnings per share rose by 27.52 per cent to N54.26 in 2018 as against N42.55 in 2017. Total assets increased by 10.58 per cent to N162.34 billion in 2018 as against N146.80 billion in 2017. Shareholders’ equity also improved from N44.88 billion to N50.22 billion.

Source:© Copyright  The Nation

FBN Holdings records N294.2bn gross earnings in Q2

FBN Holdings Plc’s gross earnings rose by 0.3 per cent to N294.2bn year-on-year at the end of June 2019, from N293.3bn in the corresponding period of 2018.

In a statement, it disclosed this in is audited financial account for the first half of the year.

Its net-interest income was down by two per cent to N146.7bn in the period under review from N149.6bn in June 2018.

Non-interest income rose by 3.6 per cent to N63.6bn, from N61.3bn; while operating income was down by 0.3 per cent to N210.3bn, from N210.9bn in first half of 2018.

It stated that impairment charge for credit losses fell by 58.1 per cent to N22.1bn, from N52.8bn; while operating expenses rose by 24.3 per cent to N148.3bn, from N119.3bn in June 2018.

In the period under review, its profit before tax rose by 2.6 per cent to N39.9bn, from N38.9bn; while profit after tax fell by 5.4 per cent to N31.7bn, from N33.5bn the corresponding period of 2018.

Commenting on the results, the Group Managing Director, UK Eke, said, “Despite the difficult operating environment, we remain resolute in delivering on our guidance across key metrics including our commitment towards a single digit NPL ratio by the end of year, as evidenced by the reduction in Non Performing Loans from the last quarter.

“Essentially, Atlantic Energy – our largest NPL, was written off, translating into a decline in the NPL ratio from 25.9 per cent in December 2018 to 14.5 per cent as at June 2019, a step that brings us closer to our FY 2019 target and creates more headroom for quality asset growth.

“This is paving the way for sustained improvement in asset quality and a further reduction in impairment charges that will allow us to take advantage of enhanced earnings opportunities when they arise. Furthermore, we have remained focused on deepening our transaction-led income and are uniquely positioning for stronger revenue growth and value creation.”

Source:© Copyright  Punch Newspaper

CCNN pays N5.2bn dividends to shareholders

Shareholders of Cement Company of Northern Nigeria Plc have approved the payment of N5.25bn as dividend for the 2018 financial period.

The amount, which was approved at the company’s annual general meeting in Abuja, translated into a dividend payout of 40 kobo per share.

The approved dividend of N5.25bn represents an increase of N3.68bn or 235 per cent over the N1.57bn, which the company paid in the 2017 financial period.

Speaking at the event, the Chairman, CCNN, Abdulsamad Rabiu, described the 2018 financial period as impressive for the company owing to the conclusion of the merger with Kalambaina Cement.

He said through the merger, the company’s installed capacity had increased to two million metric tons per annum.

This, he noted, had led to the introduction of new technology, reduction in operational costs and increase in the number of transport fleet.

Providing details of the financial performance of CCNN, he said the company recorded revenue of N31.72bn in 2018 as against N19.58bn in 2017.

He said profit after tax grew to N5.86bn in 2018 as against N2.91bn in 2017.

He said, “The company recorded its highest domestic exports sale durng the year. This was facilitated by the additional output from the enlarged entity.

“In 2019, we hope to have the full combined capacity of the two entities. With the new capacity, CCNN is now the dominant player in its home market of North West Africa.”

Rabiu said the company was taking advantage of the proximity to the neighbouring West African borders, adding that this had opened a new window for the export operations and revenue generation in foreign exchange.

Shareholders who spoke at the event commended the company for the payment of dividend.

They said with the conclusion of the merger, the company’s profitability would increase in the future.

Source:© Copyright  Thisday Newspaper

Lafarge Africa Assures Shareholders of Better Performance, Reduces Debt

Shareholders of Lafarge Africa Plc were yesterday assured of better performance going forward following the reduction in its debt to very low level. Lafarge Africa Plc’s fortunes have been affected negatively in recent years by huge debt, non-performing subsidiaries, and high cost of operations.

However, addressing shareholders at the annual general meeting (AGM) in Lagos, the Chairman of the company, Mr. Bolaji Balogun, said the company had reduced its debt by $1.1 billion in last three years, noting that efforts are being made to ensure further reduction in the debt. According to him, part of the effort was the proposal to sell its shares in Lafarge South Africa Holdings Propriety Limited (LSAH), which the shareholders approved at the AGM.

With the proceeds from the proposed sale, it is expected that Lafarge Africa’s shareholder loan as at July 31, 2019, will be completely paid off. The loan represents the only existing foreign currency loan in the books of the company.

Balogun, explained that the balance restructuring will impact on the company positively, disclosing that cost of finance will reduce by N168 billion, while net debt at the end of July 2019 will be about N56 billion.

“With the sale of LSAH as proposed by the Board to shareholders the only debt that will remain on the books of the company will be the second tranche of the corporate bond due for redemption in June 2021 and the subsidised loan in respect of Central Bank of Nigeria (CBN) Power Intervention Funds through the Bank of Industry(BoI). This significant reduction in debt holds prospects for dividend distribution in future,” he said.

Also speaking, the Managing Director of Lafarge Africa, Mr. Michel Puchercos, appreciated the understanding showed by the shareholders in approving the Board’s proposals. He maintained that management was determined to deliver on the trust expressed by the shareholders.

“We are delighted with the understanding by our shareholders on the need to focus our business in Nigeria. The approval of the proposed sale of Lafarge South Africa by the shareholders will cut debts service obligation and curtail substantially financial charges which will have positive impact on liquidity and the opportunity to expand our operations in Nigeria,” Puchercos said.

Lafarge Africa Plc recovered from a loss N8.8 billion in the full year of 2018 to a profit of N3.14 billion in the first quarter ended March 31, 2019.

Source:© Copyright  Thisday Newspaper 

ASHON Advises Investors against Panic Sale as Market Records Further Decline

As prices of shares continue to dip at the stock with some hitting two-year low, the Association of Securities Dealing Houses of Nigeria (ASHON) has cautioned investors against panic sale of their securities, to avert losses.

The association insisted that the stock market would soon rebound.

The local bourse booked another decline for the third consecutive week as the Nigerian Stock Exchange (NSE) All-Share Index fell 2.27 per cent to close at 27,919.50, while market capitalisation ended at N13.922 trillion.  The market had depreciated by 2.41 per cent the previous week.

However, while some nervous and short term investors may be contemplating selling to exit the market due to the persistent bearish run, the Chairman of ASHON, Chief Patrick Ezeagu, has advised against panic sale of shares, saying the negative trend would soon be reversed.

The ASHON boss noted that two investors may not necessarily have the same motive for sale or buy order, saying this is where the need for professional investment advice from stockbrokers become compelling.

He stated that a trend analysis of corporate earnings in recent time indicates that many companies across sectors have posted higher earnings with good returns but this has not significantly reflected in the upward movement of their share prices. Ezeagu explained that there was nothing unusual about this as the market generally reflects the trend in the economy, hence, investors buy into the future of these companies on the expectation of higher shareholder value.

He said: “Those who are selling off their shares right now are speculators and not real investors. Every stock market needs speculators for liquidity but they can change investment decision in one second. Our stock market is forward looking. Investors need not be nervous.

“They should consult professional stockbrokers for sound investment decision. There is no basis for panic sale of shares. Many companies have announced strong financial performance with prospects of increased future earnings. Why should a shareholder of such a company embark on panic sale of shares?

“Globally, stock market gauges the mood of the economy like a barometer. Our market is not a local one. Foreign investors have significant stakes because their analysis has always convinced them that our market has potential for strong Return on Investment (ROI).

“At the moment, core investors are awaiting a couple of things, including announcement of ministers of the Federal Republic and the Economic Team to show the clear direction of the government.

“These are issues that are beyond the council and  management of  the NSE but have dire consequences on investment decisions. The bearish trend has to do with the fact that the government is yet to settle down after the elections. However, astute and professionally guided investors should take position now that most stocks are trading lower than their net realisable asset value and expect handsome returns when the market shall eventually rally.

A mere study of most of the companies’ performance figures is most informative and points in the direction of a market that will definitely rally as soon as the economic team of government is in place.”

Meanwhile, an analysis of the market performance, it started the week on a negative note, which was   sustained for four trading sessions, shedding 0.8 per cent, 0.5 per cent, 0.6 per cent and 0.6 per cent on Monday, Tuesday, Wednesday and Thursday respectively.  However, the market went up by 0.8 per cent on Friday.

A look at the sectoral performance showed that five of them declined. The NSE Oil & Gas Index led with 5.7 per cent, trailed by the NSE Banking Index with 4.3 per cent. The NSE Insurance Index shed 3.8 per cent, while the NSE Industrial Goods Index went down by 0.01 per cent.

Market turnover

Meanwhile, investors traded 1.086 billion shares worth N13.390 billion in 15,774 deals, compared with 988.491 million shares valued at N13.839 billion that exchanged hands the previous week in 16,414 deals. But the Financial Services industry led the activity chart with 829.468 million shares valued at N8.493 billion traded in 8,596 deals, thus contributing 76.4 per cent and 63.4 per cent to the total equity turnover volume and value respectively.

The ICT Industry followed with 90.049 million shares worth N851.989 million in 658 deals. The third place was Conglomerates Industry with a turnover of 56.788 million shares worth N84.522 million in 731 deals.    Trading in the top three equities namely: FBN Holdings Plc, Guaranty Trust Bank Plc and United Bank for Africa Plc, accounted for 420.921 million shares worth N5.516 billion in 3,430 deals, contributing 38.7 per cent and 41.2 per cent to the total equity turnover volume and value respectively.

There was no ETP traded during the week compared with 1,115 units valued at N165, 837 were executed in three deals two weeks ago. A total of 5,666 units of Federal Government Bonds valued at N5.847 billion were traded last week in 17 deals compared with a total of 756 units valued at N730,454.35 transacted the previous week seven deals.

Top price gainers and losers

The price movement chart showed that 15 equities appreciated in price during the week, lower than 18 in the previous week, while 52 equities depreciated in price, higher than 39 equities in the previous week.

LASACO Assurance Plc led the price gainers with 13.7 per cent, trailed by Abbey Mortgage Bank Plc and Cornerstone Insurance Plc with 10 per cent apiece. A.G Leventis Nigeria Plc with 6.6 per cent, while Dangote Sugar Refinery Plc appreciated by 6.1 per cent. Vitafoam Nigeria Plc and Sterling Bank Plc went up by 4.5 per cent and 3.1 per cent respectively, just as Nestle Nigeria Plc, Dangote Flour Mills Plc and FCMB Group Plc 2.0 per cent, 2.0 per cent, 1.9 per cent in that order.

Conversely, MCNichols Plc led the price losers with 18.1 per cent, trailed by Cement Company of Northern Nigeria Plc with 17.2 per cent. Courtville Business Solutions Plc went down by 16.6 per cent. Union Bank of Nigeria Plc shed 12.6 per cent, just as Nigerian Aviation Handling Company Plc depreciated by 11.6 per cent. Law Union & Rock Insurance Plc shed 11.3 per cent, while Flour Mills of Nigeria Plc with 11.1 per cent. Okomu Oil Palm Plc and Berger Paints Nigeria Plc dipped by 10 per cent each.

Source:© Copyright The BusinessDay Newspaper 

Germany acquires 39.25 per cent equity stake in Royal Exchange

An investment fund set up by the German government has acquired 39.25 per cent in Royal Exchange General Insurance Company (REGIC) Limited, a subsidiary of Royal Exchange Plc, an insurance-based investment holding group quoted on the Nigerian Stock Exchange (NSE).

The investment fund- InsuResilience Investment Fund (IIF) was set up on behalf of German government by KfW and managed by Swiss-based Impact Investment Manager BlueOrchard Finance Limited.

In a regulatory filing yesterday at the NSE, Royal Exchange stated that the acquisition has been approved by the National Insurance Commission (Naicom), the primary regulator of REGIC.

In the statement signed by Company Secretary, Royal Exchange Plc, Sheila Ezeuko, the board of Royal Exchange stated that the proceeds of the acquisition would help REGIC to spur growth by increasing its risk capital and supporting its underwriting capacity in agriculture, thus extending its outreach to low income farmers.

With 10 decades of operations in Nigeria, REGIC is reputed as one of the largest non-life insurance companies in Nigeria. Through REGIC, IIF plans to reach out to more than one million Nigerian farmers by 2025.

Based in Luxembourg, IIF was set up by KfW, the German Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The overall objective of IIF is to contribute to adaptation to climate change by improving access to and the use of insurance in developing countries.

IIF seeks to reduce the vulnerability of low-income households and micro, small and medium enterprises (MSMEs) to extreme weather events.  IIF is structured as a public-private partnership and it combines private debt and equity investments in two investible sub-funds as well as technical assistance and premium support. Deriving from its investment goals, IIF aims at achieving both financial return and social impact.

BlueOrchard was founded in 2001 by the United Nations as the first commercial manager of microfinance debt investments. It has since gradually expanded into many asset classes including credit, private equity and sustainable infrastructure. BlueOrchard currently has invested more than $4 billion across 70 emerging and frontier markets. BlueOrchard aims at fostering inclusive and sustainable growth while providing attractive returns to its investors.

Chairman, Royal Exchange Plc, Mr. Kenny Odogwu said REGIC has entered into strategic alliances with various stakeholders in the agricultural sector in order to drive insurance within the sector.

According to him, the group believes that agriculture and retail insurance are the future of insurance and as such, the group will continue to develop products and services to ensure that it remains relevant within that segment.

“REGIC is determined to take advantage of growth initiatives available in the industry, while leveraging on technology to expand its revenue base and stronger bottom-line,” Odogwu said.

Senior Vice President, Private Equity, BlueOrchard Finance Limited, Ernesto Costa said the history, team and commitment of REGIC to agriculture insurance make it a great addition to the firm’s portfolio.

Costa said REGIC was uniquely positioned to capture the opportunity presented by 30 million under-insured small scale farmers in Nigeria.

“We are thrilled to partner with and support REGIC with capital, technical assistance and our international network in the agriculture insurance space, with the objective to increase the resilience of small scale famers to climate change,” Costa said.

The investment will further strengthen REGIC’s capital base. It should be recalled that Naicom had recently introduced increased new minimum capital base for various insurance functions with a recapitalisation deadline of 13 months. Naicom raised the minimum paid-up share capital of a Life insurance company from N2 billion to N8 billion; Non-Life insurance from N3 billion to N10 billion and Composite insurance from N5 billion to N18 billion. Re-insurance companies were directed to raise their capital base from N10 billion to N20 billion.

Source:© Copyright The Nation Newspaper

Year-to-date Market Decline Worsens to 10.3% on Continuing Bearish Run

The Nigerian equities market sustained its bearish run with the Nigerian Stock Exchange (NSE) All-Share Index (ASI) declining 0.49 per cent to close at 28,200.88, while market capitalisation shed N68.3 billion to close at N13.7 trillion.

With the continued bearish trading, the market has recorded a year-to-date decline of 10.28 per cent as at yesterday. A total of 32 stocks depreciated compared with 10 that appreciated.

Market operators attributed the negative performance to lack of policy direction by the federal government following non-appointment of ministers to drive the economy among other factors.

CAP Plc and Cement Company of Northern Nigeria Plc led the price losers with 10 per cent. Okomu Oil Palm Plc and Forte Oil Plc dipped by 9.9 per cent apiece.

Flour Mills of Nigeria (FMN)Plc went down by 9.8 per cent despite the company’s declaration of 120 kobo dividend for the year ended March 31, 2019.

FMN ended the year with a revenue of N527.4 billion compared with N542.7 billion in 2018. Given the challenging operating environment in Apapa, where the company is located, selling and distribution expenses rose 32 per cent from N6.180 billion to N8.166 billion, while administrative expenses remained at N19.424 billion, compared with N19.423 billion in 2018.

Although the company reduced its financing cost by 30 per cent from N32.7 billion to N22.9 billion, it posted profit before tax of N10.2 billion as against N16.5 billion in 2018.

Commenting on the result, Group Managing Director, FMN Plc, Paul Gbededo, said: “We have made substantial progress this year, even in the face of an adverse and challenging business environment. Our growth and efficiency initiatives across our various functions and businesses have started to show anticipated gains as we continue to focus on organic sales growth and position the business for continuous profitability.”

Cadbury Nigeria Plc and Conoil Plc were also among the price losers, shedding 9.6 per cent and 9.5 per cent in that order. On the positive side, Redstar Express Plc led the price gainers with 9.8 per cent, trailed by LASACO Assurance Plc with 9.6 per cent. NEM Insurance Plc chalked up 4.0 per cent, just as Nestle Nigeria Plc appreciated by 1.7 per cent.

Meanwhile, activity level was mixed as volume traded rose 23.7 per cent to 216.7 million shares while value traded declined 16.1 per cent to N1.8 billion. The most traded stocks by volume were FBN Holdings Plc (46.8 million shares), Courtville Business Solutions Plc (46.7 million shares) and United Bank for Africa Plc (24.1 million shares) while by value, Stanbic Holdings Plc (N389.3 million), FBN Holdings Plc (N266.2 million) and Dangote Cement Plc (N223.7 million) were the most traded stocks.

Source:© Copyright Thisday Online

Stock Market Remains Bearish as Investors await Ministerial List, Corporate Results

The stock market extended its losing streak to the second week of July as investors’ sentiments remained weak. The market which opened the month of July with a loss the previous week, declined further last week as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) depreciated by 2.41 per cent to close at 28,566.79, while market capitalisation rose to closed at N13.922 trillion, due to the listing of Airtel Africa Plc.

However, the listing of Airtel Africa Plc at the start of the week, demand for stocks was low as most investors adopted wait-and-see attitude. Market operators said while some investors are waiting for the ministers President Muhammadu Buhari will appoint to run the economy, others are waiting for the financial results of listed companies for the half year ended June 30, 2019. Year-to-date, the market has declined by 9.1 per cent.

A look at the market performance showed that it started on a positive note on Monday gaining 0.70 per cent and 0.10 per cent on Tuesday following buying interest in the newly listed Airtel Africa Plc lifted the market. However, the market reversed gains on Wednesday and Thursday, shedding 0.20 per cent and 1.9 per cent   respectively. Also, the market closed 0.51 per cent lower on Friday.

In terms of sectoral performance, only one of the five sectors tracked appreciated. The NSE Consumer Goods Index led the price losers, shedding 5.0 per cent. The NSE Industrial Goods Index followed with 4.3 per cent fall, while the NSE Oil & Gas Index went down by 3.1 per cent. The NSE Insurance Index lost 2.4 per cent. The only gainer was the NSE Banking Index that appreciated 0.8 per cent.

The major event in the market last week was the listing of Airtel Africa Plc. A total of 3,758,151,504 ordinary shares of Airtel Africa Plc  were listed at  N363 per ordinary share on the main board of  the exchange.

Commenting on the listing, Chief Executive Officer, NSE, Mr. Oscar Onyema commended Airtel Africa Plc for taking the bold step to list on the exchange.

“Listing on the exchange reaffirms Airtel Africa’s long-term commitment to expanding opportunities and providing everyday services to Africans and Nigerians in particular. It also indicates the firm’s belief that our platform, which has a total market capitalization of N25.20 trillion across various asset classes, remains a veritable avenue for raising capital and enabling sustainable national growth.  This listing serves to deepen the telecoms and technology sector for investors and provides an opportunity for a wider group of Nigerians to be part of the African telecoms growth story,” he said.

According to him, the listing is a promising development in Africa with Airtel Africa being the second company to have its ordinary shares listed on both the LSE and NSE.

“This gives credence to the successful partnership between the two exchanges. I encourage similar situated companies to explore the different opportunities for raising capital on the Exchange’s platform,” Onyema.

In his comments, the Chief Executive Officer of Airtel Africa, Raghunath Mandava, said:“Airtel Africa is delighted to be listed on the main board of the exchange. This is an exciting time for Airtel Africa in the 14 countries it operates in and an important milestone in our development as a leading provider of telecommunications and mobile money services in Africa.”

Also speaking,  the Chief Executive Officer and Managing Director of Airtel Nigeria, Segun Ogunsanya, said: “Nigeria is a great place for business and Airtel Africa remains committed to building a leadership position here.  Investors have been interested to hear our story, and importantly they have been interested enough to invest in our business and are now ready to share the future with us.”

Market turnover

Meanwhile, investors traded 988.491 million shares worth N13.839 billion in 16,414 deals last week by investors at the stock market compared with a total of 1.025 billion shares valued at N9.911 billion that exchanged hands last week in 19,375 deals.   The Financial Services industry led the activity chart with 769.350 million shares valued at N7.238 billion traded in 8,530 deals, thus contributing 77.83 per cent and 52.30 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 55.223 million shares worth N92.483 million in 719 deals. The third place was ICT Industry with a turnover of 42.080 million shares worth N4.144 billion in 839 deals.    Trading in the top three equities namely, Zenith Bank Plc, FBN Holdings Plc and Wapic Insurance Plc   accounted for 348.839 million shares worth N3.520 billion in 2,703 deals, contributing 35.29 per cent and 25.44 per cent to the total equity turnover volume and value respectively.

Also, a total of 1,115 units valued at N165,837 were traded last  week in  three  deals compared with a total of 12,375 units valued at N6.223 million that was transacted  the previous  week in  eight  deals.

Equally, a total of 756 units of Federal Government Bonds valued at N730,454.35 were traded last  week in seven deals compared with a total of 1.007 million units valued at N1.024 billion transacted  the previous  week in 14 deals.

Price gainers and losers

On the price movement chart, 18 equities appreciated in price during the week, lower than 21  in the previous week, while 39 equities depreciated in price, lower 44 equities in the previous week.

Sovereign Trust Insurance Plc led the price gainers with 9.5 per cent, trailed by Union Bank of Nigeria Plc, while Cadbury Nigeria Plc chalked up 8.6 per cent. Flour Mills of Nigeria Plc, just as Cutix Plc  appreciated by 7.1 per cent. Learn Africa Plc and NEM Insurance Plc garnered 6.1 per cent and 5.5 per cent in that order.  Redstar Express Plc, Unity Bank Plc and NPF Microfinance Bank Plc rose by 5.1 per cent, 4.8 per cent and 4.6 per cent in that order.

Conversely, Forte Oil Plc led the price losers with 23 per cent trailed by Glaxosmithkline Consumer Nigeria Plc  with a loss of 18.6 per cent. Nigerian Aviation Handling Company Plc shed 16.8 per cent,  just as  Conoil Plc went down by 15.9 per cent.  The petroleum products marketing firm went down despite reporting a jump of 54 per cent in profit after tax (PAT) for the first quarter ended March ,31, 2019.

The company grew its revenue by 13.8 per cent from N31.3 billion, N35.6 billion. Cost of sale rose from N28.3 billion to N32.7 billion, making gross profit to decline marginally from N3.1 billion to N3 billion. However, distribution expenses fell from N650 million to N449 million, just as administrative expensive reduced from N1.669 billion to N1.556 billion. Finance cost fell from N525.9 million to N506.52 million. As a result, profit before tax increased from N310.73 million in 2018 to N478.2 million, while PAT rose from N211.29 million to N325 million in 2019.

PZ Cussons Nigeria Plc shed 10.1 per cent while AXA Mansard Insurance Plc declined by 10 per cent.  Other to price gainers included: Linkage Assurance Plc (9.8 per cent); Nestle Nigeria Plc (8.9 per cent); UACN Property Development Company Plc (8.5 per cent) Sugar Refinery Plc (7.8 per cent).

Source:© Copyright Thisday Online 

All-Share Index Sheds 0.21% as Airtel Shares Decline 24 Hours after Listing

A day after the cross border secondary listing on the Nigerian Stock Exchange (NSE), the shares of Airtel Africa Plc suffered a decline wednesday, indicating weak demand for the stock.

The shares were listed at N363 per ordinary share on the main board of the exchange on Tuesday and they rose to N399.30. However, the share price fell 9.9 per cent yesterday to close at N359.40 per share. Market analysts said the stock may continue to suffer some level of volatility before stabilising.

The Chief Executive Officer of Airtel Africa, Raghunath Mandava, had expressed delight at the listing of the telco on the main board of the exchange.

“This is an exciting time for Airtel Africa in the 14 countries it operates in and an important milestone in our development as a leading provider of telecommunications and mobile money services in Africa,” he said.

Similarly, the Chief Executive Officer and Managing Director of Airtel Nigeria, Segun Ogunsanya, said: “Nigeria is a great place for business and Airtel Africa remains committed to building a leadership position here. Investors have been interested to hear our story, and importantly they have been interested enough to invest in our business and are now ready to share the future with us.”

The price decline by Airtel Africa Plc, Forte Oil Plc, Dangote Cement Plc among 14 other losers led to a depreciation of 0.21 per cent in the NSE All-Share Index to close at 29,256.60, while market capitalisation shed N123.9 billion.

In all, 17 stocks lost value led by Fort Oil Plc with 10 per cent, trailed by Airtel that shed 9.9 per cent, while Conoil Plc went down by 9.9 as well.

On the positive side, 15 stocks appreciated led by NPF Microfinance Bank Plc with 9.7 per cent, trailed by Union Bank of Nigeria Plc with 9.4 per cent. Union Bank of Nigeria Plc on Monday denied report of acquisition talks with Access Bank Plc.

In notification to the NSE, the Company Secretary of Union Bank of Nigeria, Mr. Somuyiwa Sonubi said: “Our attention has been drawn to a blog post on site, posting that Access Bank Plc is in talks to acquire Union Bank of Nigeria Plc. As the post itself states, the unfounded report is based on mere rumours and speculations. The NSE, other regulators and members of the public are advised to disregard the publication in its entirety.”

Source:© Copyright Thisday Online