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BUSINESS DAY
C002D5556
Friday 11 May 2018
COMPANIES & MARKETS Caverton Group records 328% profit growth, rewards shareholders with 15k dividend
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averton Offshore Support Group Plc, (COSG), Nigeria’s foremost indigenous offshore logistic services provider, on Tuesday declared a dividend of 15kobo per ordinary share of 50kobo each for its shareholders during its 9th Annual General Meeting in Lagos. Caverton, which was listed on the Nigerian Stock Exchange (NSE) four years ago, grew Profit after Tax (PAT) by 328 percent from N612.28million in the financial year ended December 31, 2016 to N2.62billion in the review financial year ended December 31, 2017. Profit before Tax (PBT) increased by N2.81billion or 256 percent from N1.10billion in 2016 to N3.91billion in 2017. The management of Caverton was shrewd in cost management in the review financial year to achieve a robust bottom-line as revenue only grew marginally by 6.4 percent to N20.54billion in 2017 compared to N19.31billion recorded in 2016. Over the years, the group has positively impacted the socio economic development of the country through various stakeholders; client, employees and communities alike. Its global workforce has equally
Source: Company Financials; BusinessDay Analysis
grown remarkably with just below 700 employees in West Africa. With its rapid expanding fleet of aircraft and vessels coupled with its acquisition of key offshore assets and strategic partners, the group is able to provide a diverse range of services to its clients ensuring objectives are completely fulfilled, offshore to land. COSG also takes pride in putting safety and quality at the core of its business and has been rewarded for this by its growing customer base. In September 2014, September Shell Petroleum Development Company (SPDC) awarded the compa-
ny the Shell ‘Safety Conscious Award’ recognising its safety conscious effort. Welcoming stakeholders to this year’s meeting, Aderemi Makanjuola, chairman of Caverton Group, said the impressive record of the company’s increase in revenue was due to stability of exchange rate, Nigerian economic growth courtesy of the massive government intervention in the agriculture sector and a ramp up oil production. He also gave a pass mark to the company’s financial performance in spite of enormous challenge of economic
US firm launches $5m global venture challenge for Lagos start-ups Daniel Obi
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onnecticut Innovation, a U.S organisation that provides strategic investment for early-stage technology companies, has announced Lagos as its next location for its VentureClash global venture challenge. In a statement, the organisation said it has chosen Lagos as an ideal location to expand the footprint of its VentureClash global venture challenge because it identified Nigeria as a promising hub of innovative, high-growth-potential businesses. VentureClash is Connecticut Innovation’s worldwide competition for companies that are actively advancing disruptive solutions in digital health, financial technology (fintech), the Internet of Things (IoT) and insurance technology (insurtech). A two-day tech fair, to be
held on May 22–23, 2018 at the Radisson Blu in Lagos, the statement will bring together the most promising companies from Africa to compete for one of three semifinalist spots in VentureClash, a $150,000 investment from Connecticut Innovations for the firstplace winner, and $5,000 grant awards each for the three top winners to visit and explore Connecticut as a place to live and grow a business. To be considered, companies must have been in business for at least one year, have paying customers or customers who are actively testing their product, and agree to the terms and conditions, which include maintaining a presence in Connecticut. Those who meet the contest criteria must complete an application prior to May 14, 2018, by visiting: www.ventureclash.com/apply. The top 10 or 20 companies among those applicants will be invited to pitch at the event in Lagos. They will each be
given eight minutes to present their companies to a live audience followed by a brief Q&A by a panel of judges. After deliberation by the judges, the three winners will be selected to move on to the semifinals round of VentureClash. The Lagos event was inspired by Oni Chukwu, a Nigerian native who, after emigrating to the U.S. 25 years ago to pursue advanced education, went on to achieve remarkable success in several entrepreneurial ventures including his current role as CEO of etouches, a Connecticut Innovations portfolio company that was recently acquired at a highly attractive premium, the statement further said. Chukwu is a technology investor, via his investment company, Frontiers Acquisitions. Among his vast professional accomplishments, Chukwu also established the AfricaPlan Foundation, which assists aspiring entrepreneurs in developing countries.
environment in 2017. This,he attributes to continued effective execution of his team strategy as they innovate and break barriers to boost bottom line in building a clientcentric group and generate sustainable long-term value of shareholders. As he professes a prosperous business future in 2018 and beyond, Makanjuola seized the opportunity to thank the ‘Cavertonians’ for their value contributions and deep commitment to the company. Thanking their esteemed shareholders for their continued support, the Chief
Executive officer of the company, Mr. Bode Makanjuola assured them that the company would continue to wax strong. “In 2017, throughout a period of profound political and economic change around the world, our company remained steadfast in dedication to our clients in the host communities we serve while earning a fair return for our stakeholders. Also, our financial results for year ended in 2017 displays positive performance confirming our company’s ethos to deliver a cost effective and efficient service to our customers”. He concluded, “Our desire is to continue to be a strong and financially sustainable group that puts our stakeholders at the heart of everything we do.” Though shareholders of Caverton Offshore Support Group Plc expressed the opinion that their company could do better in the years ahead; they were unanimous in applauding the Board of Directors of the group for paying a dividend of 15kobo per share in the review financial year. Moses Ogundeji, a shareholder affiliated to the Independent Shareholders Association of Nigeria (ISAN) at the AGM held at the Civic
Centre in Lagos, praised the company for paying 15kobo per share as dividend but urged the Board of Directors to make the largesse better subsequently. Patrick Ajugo, another shareholder however differs, saying that the company must come up with a track able dividend policy. According to Ajugo, a dividend of 15kobo per share out of an Earning per Share (EPS) was not good enough. He however commended the Company for the excellent performance of its Marine Business, which he said must be given a greater attention. Nona Awoh, one of the shareholders, had a reservation on the ability of the company to sustain the dividend declared on Tuesday as he said the business the group runs is capital intensive and that it needs all the capital available to grow its businesses at the moment. Meanwhile Makanjuola is confident that Caverton will improve on its revenue as well as bottom-line as he said more contractors signed by the Company in 2017 will boost revenue. Herevealed that Caverton Offshore Support Group Plc was able to add 11 new Helicopters to its fleets by April 2018 would further boost its revenue base.
Currency Swap: Analysts fear deal will stifle Nigerian economy
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inancial analysts have expressed concern that the currency swap deal recently signed by the Central Bank of Nigeria (CBN) and the Peoples Bank of China (PBoC) will stifle the Nigerian economy. The News Agency of Nigeria (NAN) reports that the Currency Swap Deal was signed on April 27. Boniface Okesie, the president Progressive Shareholders Association of Nigeria, told NAN that the currency swap deal was unnecessary. He said the deal would ensure that majority of the country’s foreign trade deals were channeled to the Chinese economy. “This will lead to economic dependence despite that Nigeria is a sovereign nation. The policy will lead to the influx of Chinese goods into our country considering that we are con-
tending with weak regulation,” he said. Si m i l a r l y , Au s t i n e Nwaeze, a lecturer in the department of Economics, Pan Atlantic University, Ibeju-Lekki, Lagos told NAN that the deal was only good on its surface value. He noted that in the long run, the initiative would allow the Chinese to compete with our local businesses, thereby, impeding the growth of indigenous firms. Nwaeze said the only benefit of the currency swap deal for Nigeria was that in the short run, it would address third party sourcing of the Chinese currency by Nigerian importers. “However, it will take the trade deals with the Chinese to a new height and reduce the pressures of our foreign exchange,” he said. NAN reports that the CBN and the PBoC have begun the execution of a 2.5 billion
dollars (Renminbi 16 billion) bilateral currency swap agreement entered into over two years ago. Godwin Emefiele, CBN Governor led some officials of the apex bank to the signing ceremony in Beijing, China. His PBoC counterpart, Yi Gang, headed the Chinese team. The pact was the result of over two years of negotiations between both banks. The transaction is aimed at providing adequate local currency liquidity for Nigerian and Chinese industrialists and other businesses in order to reduce their difficulties in the search for a third currency. In a statement, CBN Acting Director, Corporate Communications Isaac Okorafor, explained that Chinese businesses would get naira liquidity and Nigerian businesses, RMB liquidity under the agreement.