By Nkiruka Nnorom
CHEMICAL and Allied Products, CAP Plc, has said it is poised to take advantage of the structural reforms that will be undertaken by the federal government in the housing and real estate sector this year to boost revenue and returns to its shareholders.
The company also declared N2.03 billion dividend, representing 29 kobo per share for the year ended December 31, 2018, which was approved by the shareholders.
Speaking at the 54th Annual General Meeting, AGM, in Lagos, Solomon Aigbavboa, Acting Chairman, CAP Plc, said: “We expect that the economic environment in 2019 will continue to be fluid and uncertain and businesses must be proactive and make clear cut choices about how to compete in the market place. Businesses also need to make clear definition of strategy, business model and core operations in order to increase revenue and profitability.
“Your company is closely following developments at all levels and is prepaid to key into opportunities that will be created. We will respond appropriately to the emerging paint market trends and different economic scenarios by introducing new products and value added services, increasing volumes, entrenching presence in the standard market, completing Dulux Colour Centers, DCC, upgrade and implementing impactful marketing initiatives to ensure effective customer engagement among others.”
He alluded to the effect of difficult business environment in 2018, saying that CAP navigated the business terrain by recovering its costs through various cost reduction initiatives and improved efficiency, which resulted in nine percent increase in revenue to N7.76 billion and 15 percent growth in the operating profit to N2.28 billion.
He said that the company expanded its distribution channels and improved on field presence by opening two Dulux Colour Centres in Lagos and Abuja during the year.
“We also increased marketing initiatives and value-adding services. We extended in-plant paint production to silk line and commenced DCC upgrades. We will work harmoniously with DCC distributors to achieve topline growth in 2019,” he added.