Shareholders commend Honeywell Flour over N1.03bn
Shareholders of Honeywell Flour Mills Plc have commended its Board and management for the N1.031 billion declared by the company for the financial year ended March 31, 201.
The shareholders also decried the high cost of funds sourced from banks, advising the Board to consider the capital market and other cheap alternative sources
Meanwhile, the dividend declared by the company represents 13 kobo per share (11 kobo per share in 2010) net of appropriate withholding tax, will be paid on September 27, 2011.
Making this disclosure in Lagos, on Monday at the company’s 2nd Annual General Meeting (AGM) held in Lagos, the Chairman, Dr Oba Otudeko, OFR, noted that the company’s policy is to provide shareholders with steady and sustainable dividend pay-out after due consideration for the expansion requirements of the business.
He further stated that the overall objective of the Company is to maximise shareholder value in the long term.
He further promised shareholders that the company will continue to look for alternative cheap funds in order to expand its production to meet its increasing demand for its products.
Continuing, Otudeko stated that despite, the challenging operating environment, the company was able to post a remarkably improved result for the financial year ended March 31, 2011.
According to him, earnings per share recorded a significant increase of 112 percent to 31.43 kobo, up from 14.83 kobo for the preceding year.
Turnover for Honeywell Flour Mills Plc. and its subsidiary, Honeywell Superfine Foods Ltd. increased from N33.52billion in the financial year ended March 31, 2010 to N34.06billion in 2011.
Profit before tax and profit after tax were N3.52billion and N2.49billion respectively in 2011 as compared to N2.33billion and N1.18 billion in 2010. This represents an increase of 51 percent and 112 percent respectively.
Also, shareholders’ funds grew by 12 percent to N15.13billion from N13.51billion in 2010.
The Chairman further attributed the overall improvement in the financial performances for the year to several factors including: Management’s commitment to efficient cost and treasury management; improved internal business processes and systems; outstanding customer services and; development of strong brands and high quality products.
He assured shareholders that the Company will continue to respond appropriately to changes in the operating environment in order to improve performance.
