Capital Market B6
Daily Times Nigeria Tuesday, May 24, 2016
CSCS bemoans low revenue stream, plans diversification Onyema
The Central Securities Clearing System Plc (CSCS) has made known plans to go beyond clearing for the Nigerian bourse, as it develops plans
to diversify its business operations into other areas of the economy. Chairman of the company, Mr Oscar Onyema, during the 22nd Annual General Meeting held in Lagos recently, explained that due to challenges facing the company’s traditional source of revenue, CSCS will move into other lines of business in order to mitigate economic challenges. Onyema explained that a lot
of money is going into investments and if there are left over, they can pay to shareholders as requested, while noting that the board are aware of the situation in the economy and wants to build a company for the future with sustained growth. For the 2015 financial year ended December 31, CSCS recorded a total operating income of N7.60 billion which is below N8.24 billion that was reported for the same period of 2014.
Profit before tax dropped by 14.79 percent to N5.01 billion in 2015, when compared to N5.76 billion posted in 2014. Profit after tax for the period also decreased by 3.63 percent from N4.62 billion in 2014 to N4.46 billion in 2015. However, despite the drop in bottom line, the board of directors were able to proposed 26 kobo dividend, this is in line with the company dividend policy which provides that payout of this nature
should be 30 per cent of profit after tax recorded in a year when dividend is declared. The chairman assured shareholders that in 2016, “Our aim shall be to strengthen our management team to keep it competitive and focused on executing business strategy as it relates to our core businesses, whilst implementing new business initiatives that will guarantee our sustainability as a profitable enterprise”.
NSE opens week in red as ASI drops 0.37 percent Stories by Afolabi Adesola
L – r: Director-General, Securities and Exchange Commission (SEC), Alhaji Munir Gwarzo; representative of the Minister of Finance, Dr. Mahmud Isa-Dutse; Chairman, Susman Associates, Dr. Shamsuddeen Usman and Registrar-General, Corporate Affairs Commission, Alhaji Garba Abubakar, at the Inauguration of the study team on voice and voting power in the Nigerian Capital Market, in Abuja … on Monday.
The Nigerian equities market started the week on a negative note as NSE All Share Index (ASI) dropped 0.37 percent to close at 27,015.97 basis points. Bearish sentiments were witnessed across board as all sectoral indices closed in the red, driving market capitalisation N31 billion lower to close at N9.278 trillion. The day’s trading activities recorded 14 Gainers against 28 Losers. The day’s losers were led by PZ which declined by 4.97 percent or N1.14 to close at N21.81 per share, followed by Union Dicon which dropped 4.94 percent or 65 kobo to close at N12.52 per share. Zenith Bank also fell by
4.89 percent or 78 kobo to close at N15.17 per share. Similarly, Portland Paints and Ikeja Hotel lost 10 kobo each to close at N1.96 and N2.01 per share respectively. On the other hand Stanbic topped the day’s advancers with a gain of 10.19 percent or N1.53 to close at N15.54 per share, DN Meyer added 8.22 percent or 6 kobo to close at 79 kobo per share while Fidson Health grew 5 percent or 10 kobo to close at N2.10 per share. Continental Reinsurance and Dangote Sugar likewise added 5 and 30 kobo each to close at N1.8 and N6.60 per share. In all, investors on the exchange traded a total of 316.7 million shares valued at N1.9 billion in 3,924 deals.
Nestle celebrates 150 years anniversary, pays N29 as dividends to shareholders Nestlé Nigeria Plc, held its 47th Annual General Meeting in Lagos on Monday May 23rd, which coincides with the company’s 150th anniversary and 55 years of operating in Nigeria. At this meeting a proposal of N19 dividend was submitted to shareholders, which they unanimously approved. Earlier in the year, the company had declared an interim dividend of N10 per every 50 kobo share was paid, bringing the total dividend paid for the 2015 financial year to to N29 a 4 percent increase from N27.50 paid in 2014. In his welcome address at the meeting, Mr. David Ifezulike, Chairman of Nestle stated that “ The 150th Anniversary of our company is not only an opportunity to chart and celebrate its history, but a basis on which to build the future. We are pleased that our operations are not only measur-
able in length of time, but more importantly, by the positive impact it brings to the communities where we operate. Speaking on behalf of the shareholders, Chief Timothy, Coordinator for Solidarity Shareholder Association of Nigeria, commended the board of the company for a 6 percent increase in revenue from N143 billion in 2014 to N151 billion for the full year (FY) ended December 2015. He said the company grew profit before tax by 20 percent from N24 billion posted in 2014 to N29 billion in 2015 despite cost pressures, and profit after tax by 7 percent from N22 billion in FY 2014 to N24 billion in the same period of 2015. On his Part, Boniface Okezie, National Coordinator for Progressive Shareholders Association of Nigeria (PSAN) showed appreciation for a declared dividend of
N29 per every 50 kobo share held. He stated that the dividend which is the highest paid by any firm currently quoted on the Nigerian Stock Exchange gives cause for applause. Meanwhile, recently released unaudited 2016 first quarter results showed that Nestle’s revenue rose by 31.1 percent to N36.1 billion, while Profit Before Tax and Profit After Tax of the consumer goods company doubled to N8.7 billion and N6.7 billion respectively. The strong Q1 growth reflects a weak base in 2015 when NESTLE was hit by supply chain issues and naira devaluation. In 2015, consumer goods companies were faced with higher raw materials for those with sizable import input requirements and rising interest expense for those with dollar loans. However, Nestlé’s gross margin
expansion bucked the industry trend, reflecting the firm’s high percentage of locally sourced raw materials in total input mix of 66 per cent in 2015. Moreover, slower cost growth at 19.4 per cent relative to that revenue pushed gross profit to its highest level, 45.9 per cent. Furthermore, earnings was boosted by 86.1 per cent YoY shrinkage in Q1 2016 net finance expenses to N300 million. On outlook for the 2016 financial year. Mr. Ifezulike noted that Nes-
tle’s hope in the resilience of the local economy is brightened by the large and varied opportunities in different sectors of the economy. “We are confident that a more stable economic environment and increase in Government infrastructural spending will aid significant growth in 2016. The ambitious reform agenda and policy direction of the new administration are expected to play a huge role in restoring confidence to the economy.
Summary of activities on NSE ASI
27,015.97
DEALS
3,924.00
VOLUME
316,735,448.00
VALUE
1,909,853,087.42
CAP
9,278,618,214,596.13wwww