LAGOS - The Nigerian Bag Manufacturing Company Plc says that it has invested N837 million on plants and machinery in the last six months.
The Chairman of the Company, Mr. John Coumantarous, told the shareholders at the company’s first Annual General Meeting in Lagos last Monday that the investment was to enhance production of quality products that could compete favourably at local and international markets.
Coumantarous assured shareholders that the investment would boost the company’s revenue and employment generation.
He said the company recorded a turnover of N11.8 billion in its last financial year, which ended on March 31, 2008 as against N11.0 billion recorded in 2007.
The Chairman said that the company’s profit before tax fell from N1.2 billion in 2007 to N920.1 million in 2008 while the profit after tax also dropped from N1.00 billion to N303 million.
He attributed the fall in the profit to the high cost of its initial public offering, which he said, included one-off payment of stamp duties and registration fees amounting to N66 million.
Coumantarous listed the other factors as unprecedented increase in the cost of raw materials occasioned by the increase in the prices of crude oil, poor electricity and natural gas supply.
He said that these problems affected the company’ s financial plans as well as its profit margin.
The Chairman said that the board recommended a dividend of 5k per ordinary share of 50k.
|
