Vitafoam de­clares N525m div­i­dend for 2019

The Punch - - CAPITAL MARKET -

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.

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