Vitafoam declares N525m dividend for 2019
vITAFOAM Nigeria Plc has declared a dividend of N525m for the 2019 financial year.
The company said in a notice filed at the Nigerian Stock exchange that its board of directors recommended 42 kobo per share dividend, which translated into N525m.
It said the dividend was subject to the approval of shareholders and withholding tax.
According to the notice, if approved, the dividend will be paid to shareholders on March 5, 2020 to members whose names appear in the register of members as of the close of business on February 7, 2020.
The company, in its financial statement for the year ended September 30, 2019, said it made a profit before tax of N3.5bn, a 341 per cent increase from the N793m recorded in the corresponding period of 2018.
Profit after tax increased to N2.39bn from the N602m recorded in 2018 as revenue grew to N22.28bn from N19.53bn in 2018.
It said its revenue was derived from sale of foams and other products (N21.5bn) and freight services (N779m).
The company also recorded a bank overdraft of N11.08m in the period under review and a total borrowing of N1.16bn from banks.
It said the term loans represented the outstanding balances on four facilities – four-year term loan of N350m, UBA four-year term loan of N225m, Zenith bank two-year term loan of N100m and four-year term loan of N2bn granted to the parent by Bank of Industry in 2018 with a 12 -month moratorium.
According to the notes to the financial statement, both loans are secured by a negative pledge on the parent’s fixed and floating assets and are carried at fair values based on cash flows discounted using effective interest rate of 20 per cent.
vitafoam also obtained loan from International Finance Corporation to finance capital construction at the Sierra Leone subsidiary.
It said in 2016, the loan was bought over by a local bank in Sierra leone with a tenor of four years denominated in leones.
The term loan was restructured in April 2018 to five years maturing in october 2022.