TWO companies’ results were released on the Nigerian Stock Exchange, NSE last week with Vitafoam Nigeria Plc among one of the equities whose share price went up last week. Linkage Assurance Plc was the second company whose financial statement ended September 30,2016 was released on the exchange.
The result showed that revenue stood at N3,357 billion as against N3,060 billion in 2015; Profit/Loss After Tax stood at N616,098 million in 2016 as against N651,781million. The share price of Linkage Assurance remained unchanged for the week under review.
Meanwhile, Vitafoam, though the result recorded no significant growth in major indices, the price gained a marginal 2 kobo per share for the week from N2.40 per share to close at N2.42 per share at the end of trading on Friday.
Market operators are of the opinion that the rise in price could be attributed to the announcement of proposed interim dividend and the future growth plans by the management.
Specifically, Vitafoam proposed interim dividend of 12 kobo per share, with the closure of register dated September 30, 2016 and payment slated for March 9, 2017.
It also recorded revenue 2016 of N13,569,873 in 2016 as against N16,853,042 in 2015; Profit/Loss After Tax in 2016 stood at N32,032 as against N71,981 in 2015.
The Group Managing Director, Mr. Taiwo Adeniyi who unfolded new strategic focus to overcome challenges for optimum operation under recession assured the shareholders of payment of dividend for the 2016 financial year. The company has pledged to sustain its corporate culture of innovative products at competitive prices for enhanced shareholder value.
Adeniyi explained that it was a very tough period as the most difficult problem was how to make realistic business decision in the face of continuous uncertainty in view of insecurity, exchange rate, interest rate, devaluation of the Naira and insecurity of lives and property. However, Adeniyi who expressed optimism that his company’s board and management had learnt how to operate profitably under recession assured the shareholders of dividend after the company’s Annual General Meeting (AGM) early this year.