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West African Glass hints on discontinuation of operations

By Michael Eboh

West African Glass Company Plc has given hints of a possible discontinuation of business activities due to difficulties and challenges confronting its operational activities.

The company, in a statement made available to the investing community disclosed that its going concern is under threat due to a negative working capital and shareholders’ fund.

A going concern is a currently operating business that is expected to continue to function as such and remain viable in the foreseeable future.

According to its financial statement for the year ended, December 31, 2008, presented to the Nigerian Stock Exchange (NSE), Tuesday, the company recorded a working capital deficiency of N1.94 billion and a negative shareholders’ fund of N604.8 million.

According to the note to the results, exceptional item represents the company’s  share of additional gas charges by Ministry of Energy and Natural Resources (MENR) in respect of prior years 2003-2006.

“The auditors did not  qualify their report, but drew our attention to matters of emphasis which relates to the  company’s going concern issues. That is, the company  has a working capital deficiency of N1.94b and a negative shareholders fund of N604.8 million”, it noted.

In the period under review, the company’s turnover grew by 18.78 per cent, from N1.422 billion in its 2007 financial year to N1.69 billion in 2008, it posted an exceptional item of N16.13 million compared to an exceptional item of N72.33 million recorded in 2007.

The glass manufacturing company recorded a loss before tax and after exceptional item of N150.48 million compared to N359.88 million in 2007 and a loss after tax of N150.53 million compared with N360.14 million recorded in 2007.

Also, the woes of Champions Breweries Plc heightened, as it recorded a loss after tax of N211.85 million in its third quarter financial period.

According to its financial statement for the third quarter ended, September 30, 2009, its turnover dropped by 27.04 per cent to N911.82 million from N1.25 billion recorded in the comparable period of 2008, it posted a loss before tax of N211.85 million compared to N319.43 million in 2008, and a loss after tax of N211.85 million compared with N319.43 million recorded in 2008.

The company also recorded a paucity of operating capital, with a negative working capital of N2.37 billion in the period under review compared to N2.53 billion in 2008.

Newly listed Guaranty Trust Assurance (GTAssurance) Plc, meanwhile, announced an interim dividend of N0.05 for its shareholders in its third quarter financial period, ending September 30, 2009.

The company, according to the report made available to the NSE, disclosed that the date for the closure of its register of members is December 7, 2009, while the payment date is December 18, 2009.

Omatek Ventures Plc formally announced a dividend of N0.05 payable to its shareholders for its 2009 financial year. The dividend proposal will be presented to its shareholders for approval at its forthcoming annual general meeting, scheduled to hold December 14, 2009.


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