UAC of Nigeria PLC (UAC) has concluded plans to restructure the operations of three of its subsidiaries.
The companies are UACN Property Development Company Plc, Livestock Feeds and Portland Paints and Products Nigeria Plc.
Besides, the company paid a total dividend of N1.92 billion, culminating to 100 kobo per share due to every shareholder of the firm for the 2015 financial year.
Addressing shareholders during the 2015 yearly general meeting held in Lagos yesterday, the Chairman of the company, Dan Agbor explained that the fund would be used to boost the company’s operational expenses, purchase of new machines, improve production facilities and enhance working capital.
“Against the backdrop of an extremely challenging economic and business environment in 2015 and the need to conserve funds so that we can participate in the Rights Issues to be undertaken by three of our subsidiaries.
“The objective of the capital raising proposals that were presented to the shareholders at the yearly general that took place on the 23rd of September 2015 was to attract a strategic investor or investors and obtain equity control that would be used to drive growth in certain subsidiaries. Following your approval of a one for 12 rights issue of 160,072,032 ordinary shares, your Board and Management made all necessary arrangements to launch the Issue.
“Unfortunately, however the weak performance of the Nigerian capital market has made it impossible to raise the requested capital on optimal terms and at the end of March 2016, a decision was taken by the Board to discontinue the Rights Issue. Your Board and Management will now undertake the needed investment and financial restructuring of those subsidiaries using internally generated funds”, the Chairman said.
Reviewing its performance, Agbor noted that the company posted group revenue of N73.I billion which was down by 14.6 per cent when compared to N85.6 billion achieved in the previous year while group profit after tax stood at N5.2 billion, lower than N10.9 billion posted in the previous year.
The shareholders commended the board for payment of dividend, amid harsh operating environment, urging them to reduce their expenses and the number of unclaimed dividend in the list.
Specifically, the Secretary General, Independent Shareholders Association of Nigeria, Adeleke Adebayo stressed the need for the company to reduce the number of its unclaimed dividend list by making it public.
He also urged the management to do everything within its powers to increase the dividend payout in the current financial year.