Chemical and Allied Products, CAP Plc, a subsidiary of UAC of Nigeria Plc and manufacturer of Dulux paint, has posted a Profit Before Tax, PBT of N2.44 billion in its financial year ended December 31, 2014. This shows a 17 per cent increase over the previous year. The company’s turnover also rose to N6.99 billion, indicating a growth of 13 per cent during the same period.

Based on the performance, the Board recommended a final dividend of N595 million, representing 85 kobo for every 50 kobo of ordinary share to shareholders on the register of members at the close of business on May 28th 2015. This, in addition to the Interim dividend of 150 kobo per share paid on November 19, 2015, brought the total dividend for 2014 financial year to N1.645 billion, representing 235 kobo per share.

The proposal received an overwhelmingly approval from the shareholders during the meeting. Addressing shareholders at the Annual General Meeting, AGM, in Lagos, the Chairman, Mr Larry Ettah, said: “Businesses have continued to be buffeted by the usual challenges of poor infrastructure and public services, insecurity, official corruption, multiple taxes, power supply shortfalls and volatile capital market.”

He explained that power supply declined so precipitously in the country that public power became non-existent just as the currency devaluation heralded another round of sharp increases in the prices of inputs. He stressed that coupled with the elevated political risk due to the elections recently held in the country, investment dried up as consumer purchasing power remained weak.

Ettah further stated that the effects of these developments on the economy were low corporate revenues and margins and higher cost of doing business. On the company’s plan for the future, he said, “As a forward looking business, we will continue to seek and harness opportunities that ensure we remain relevant and create more value for you, our esteemed shareholders.

We will invest in cutting edge technology for paint manufacture that will enable your company to efficiently meet the needs of consumers, allowing them to express their colour preferences in the local variant of our flagship brand.”