At the 19th Annual General Meeting (AGM) of the company in Lagos on Tuesday, shareholders of Fidson applauds the 200 per cent increase in the dividend payout as against five kobo of the previous year, just as they appreciated the efforts of the Board and management of the company for the impressive financial results posted in the year ended December 2017.
Speaking on behalf of other shareholders, Chief Timothy Adesiyan of the Nigerian Shareholders Solidarity Association (NSSA) noted that the revenue of the company has increased tremendously, as well as the cost of sales, which according to him, is in line with the revenue.
He added that the reduction of the finance cost of the company enhanced the dividend payout, showing the prudence of the management and board of the company.
For the year ended 31 December, the Turnover of the company was N14.06 billion, compared with N7.66 billion in 2016, representing an increase of 84 per cent. Gross profit of fidson Healthcare Plc also improved by 73 per cent in 2017 at N7.16, compared with N4.05 billion achieved the year before, just as Operating profit was N2.55 billion compared to N1.09 billion in 2016. Profit after tax stood at N1.06 billion against N316.8 million recorded in 2016.
The Chairman of the company, Segun Adebanji, however, appreciated the shareholders for their continued support in this regard, saying it was highly commended, with promises of a brighter future. “Together we will continue to reap the bountiful rewards of our investment in the year ahead,” he said.
He noted that the following approval at the previous AGM, the Board was implementing the decision to raise additional capital of N4.5 billion by way of a rights issue of three new shares for every five previously held.
“A total of 900 million ordinary shares will be issued, thus increasing the company’s total issued shares to 2.4 billion units and it’s issued share capital to N1.2 billion,” he said.
He further explained that the proceeds of the issue would be used to refinance some expensive debts, strengthen the working capital position of the business and fund some strategic capital expenditure.
Looking forward, he said the capital injection from the rights issue would enable the Board and management to reposition the business in order to take advantage of visible growth opportunities.
To this end, Sir Sunny Nwosu, the founder of Independent Shareholders Association of Nigeria (ISAN), urged his fellow shareholders to pick up their rights so that there would be expansion in the business, saying the company is a promising one.
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