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Evans Medical returns to profitability, posts N327.9m

By Babajide Komolafe

Evans Medical Plc has returned to profitability as it recorded a profit after tax (PAT) of N327 .9 million for the financial year ended December 31, 2012.

This represents 166 percent increase from N123.5 million recorded in the corresponding period of 2011.

The company’s turnover grew to N4.9billion, an increase of 6.4 percent over N4.6 billion recorded the previous year.

However, the company’s earnings was eroded by finance cost, which climaxed at N503million as against N393milion incurred in 2011, representing about 28 percent.

The Board of Directors approved a dividend of five kobo per share, which translates to a total of N24.3milion dividend at the Annual General Meeting (AGM) of the company held in Lagos last week. The shareholders at the AGM approved proposal by the board to raise additional capital by way of rights issue.

Addressing the shareholders at the AGM, the company’s Chairman, Chief Saifudeen Edu, said raising additional capital became necessary to enable management address near perennial working capital problem, complete the WHO projects and refinance the high end portion of its debt profile.

Edu disclosed that strategic initiatives had been outlined, which would ensure robust returns to shareholders as well as propelling the business to a formidable force in the industry.

The Group Managing Director of Evans Medical Plc, Chief Bunmi Olaopa, had disclosed earlier that the company was shopping for N3.5billion as additional capital, stressing also, that the company was looking for a core investor, who must have certain qualities.

He said, “We are not just looking for a core investor, who will only bring money. We are looking for a core investor, who will bring money and value. That is, a core investor, who perhaps, has a good product pipeline and additionally, a Research and Development (R&D) based company.”


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