- records 300% increase in dividend payout
By Chioma Obinagwam
Fidson Healthcare Plc, a Nigerian company engaged in the business of manufacturing, marketing and sales of pharmaceutical and healthcare products, has announced its intention to raise N4.5 billion fresh capital by way of Rights Issue.
Chairman of the company, Mr. Segun Adebanji disclosed this in a statement at the company’s 19th Annual General Meeting (AGM) held in Lagos State on Tuesday.
The Rights Issue, he stated, will be allotted in the form of three new shares for every five previously held.
The additional capital, he noted, will among other things, be used for refinancing and strengthen its working capital.
“As stated in the Rights Circular, the proceeds of the issue will be used to refinance some expensive debts, strengthen the working capital position of the business and fund some strategic capital expenditure,” the chairman disclosed.
Mr. Adebanji further stated that the decision to raise fresh capital via Rights Issue was approved by the company’s shareholders at its 18th AGM.
The chairman added that the capital injection from the Rights Issue will enable the Board and Management reposition its business in order to take advantage of the growth opportunities it sees.
“We are cautiously optimistic that the future of our company is bright,” he stated.
Corroborating, former chairman of Independent Shareholders Association of Nigeria (ISAN), Sunny Nwosu, enjoined fellow shareholders to support the Rights Issue to enable the company reduce its growing Finance Cost.
Meanwhile, extracts from the company’s Annual Report for the period ended December 31, 2017, showed that it recorded robust performance in it’s key financial indices.
Revenue grew by 84 per cent from the N7.66 billion it posted in 2016 financial year to N14.06 billion.
Profit Before Tax (PBT) recorded an astronomical increase, jumping from N443.79 million in the corresponding year of 2016 to N1.58 billion in the review period of 2017; thus representing a whooping 256 per cent increase.
Operating Profit followed the same pattern, climbing to N2.55 billion in the period under review from the N1.09 billion that was achieved in the prior year of 2016.
The impressive performance, the company disclosed, is largely attributed to gains from the company’s recently unveiled World Health Organization (WHO) endorsed factory, which began operations about two years ago.
As a result of the company’s robust result, the Board recommended a dividend payout of 20 Kobo per 50 Kobo ordinary share, amounting to N300,000,000 million and was approved by it’s shareholders at the company’s 19th AGM.
The 50 Kobo per share dividend payout represents a 300 per cent increase from the 5 Kobo per share dividend paid in the corresponding year of 2016.
Reacting to the result, Bisi Bakare, Chairman, Pragmatic Shareholders Association of Nigeria commended the company for the impressive performance and improved dividend payout.
She said, “Our dividend increased from 5 Kobo last year to 20 Kobo. This is commendable. Is it true that our Profit Before Tax grew from N443.79 million to N1.58 billion? I want to know the miracle that they did? That is very impressive.”