By JONAH NWOKPOKU
Shareholders of Lafarge WAPCO Nigeria Plc have enjoyed bountiful returns on their investment as the company’s increased its dividend pay-out by 60 percent for 2012.
Addressing members of the coma pay at the 54th annual general meeting in Lagos, the chairman, Olusegun Osunkeye, said that, “Based on the profitability improvements in the company, the Board of Directors is able to propose for approval by shareholders, a gross dividend of 120 kobo on each ordinary share in issue.”
“In absolute terms, this represents an increase of 60 percent on the gross dividend approved by shareholders on the 2011 financial results,” he added.
He further explained that, “Given the cash flow requirements to repay the bank loans and to pay down the corporate bond at maturity, it is important to maintain dividend pay-out to shareholders at a level which ensures repayment can be achieved with no risks of default and impairments of the operations of the company.
He however advised the shareholders to key into the company’s e-dividend and electronic delivery mandate in order to address the challenges of unclaimed dividends.
According to him, “in order to eliminate issues of unclaimed dividend, I will once again like to encourage shareholders, who have not taken the e-dividend option to do so.” Oshunkeye further noted that despite Nigeria’s challenging business environment, the company would continue to look for opportunities for market expansion and operations. He added that the company would continue to exploit the opportunities provided by infrastructural deficits in the country to grow.