INTERLINKED Technolgies Plc is set for a complete turnaround as managementÂ has promised to use the proceeds from its ongoing Rights Issue to reposition the company.
The company is in the verge of coming backÂ to a sound capital and liquidity footing in the next few years.
Prior to year 2008, Interlinked Technologies Plc had not been at its best financially, recording losses over a five -year period and unable to make any return to shareholders in terms of dividend and bonus. However, the stage is now set for a complete turnaround, as the company is in the market to raise N….through Rights Issue.
Thus far, the company had been operating only two major lines of business, namely projects and sales, but in order to take advantage of the various opportunities in its market, the new management has restructured the companyâ€™s business to focus other areas like Energy, Electronics, Telecom, Projects, Solutions and Training.
Furthermore,Â the company is making arrangement to enter into business partnership with a foreign electronic and telecommunication Company, which is a major manufacturer and supplier of the basic components and gadgets used by telecommunication companies in various countries of the world. A strategic alliance with this company will give Interlinked Technologies Plc a competitive edge above other offshore companies that lack the understanding of the Nigeria business terrain. The company keeps pushing to win more clients which include all the major telecommunication companies in Nigeria.
Stock brokers have said that Interlinked Technologies is one favoured stocks for year 2010 and the on going right issue is a great opportunity for the investing public to position themselves.
According to stock brokers â€œ Itâ€™s apparent that the areas in which the company is planning to spend proceed of the offer are lucrative sectors. If the proceed is well spent, it will turn around the companyâ€™s fortune in less than projected period. For instance, there are a lot of prospects coming from its proposed Energy Unit, going by current reformations going on in the power sector in Nigeria. Having executed projects for the Power Holding Company of Nigeria (PHCN), Interlinked is poised to further enjoy better patronage by this big clientâ€
Though the company recorded negative Earnings per share (EPS) in the last audited result, the audited nine months results shows that the company might declare positive earnings for the year ended June 2009 as nine months EPS stood at 30 kobo per share.Â Itâ€™s an indication that shareholders may receive dividend for the review period. Also, the management has forecasted earnings and dividend per share for year 2010 to 2012. The target figure as contained in the prospectus of their current Rights issue shows 8 kobo, 26 kobo and 36
kobo earning per share for year 2010, 2011 and 2012 respectively while the company promised 10 kobo and 21 kobo dividend for 2011 and 2012 respectively.
Despite battling with financial crisis for some period of time, the ability of the management to judiciously utilize fresh fund injected by new investor- Boussole Integrated limited recently is a proof of their capability of managing money. This is evident by the improvement in the companyâ€™s performance as observed in the audited accounts for the 9 months pe