By BABAJIDE KOMOLAFE

May & Baker Nigeria Plc would consider raising additional capital to support its business expansion and steady the healthcare company against competition, the board of the company has said.

At the annual general meeting of the company in Lagos yesterday, chairman, May & Baker Nigeria Plc, Lt. Gen Theophilus Danjuma (rtd), said the company has started considering various ways of raising new capital and would soon choose the most appropriate means to bolster the capital base of the company.

According to him, it has become expedient for the company to recapitalise to muster enough liquidity to face the challenges of the business environment.

He outlined that the huge investments in the world-class pharmaceutical manufacturing centre in Ota, Ogun State, the company’s vaccine manufacturing joint venture with the Federal Government, new products and other initiatives will provide a stable base for the company’s growth in the years ahead.

He said the company has rolled out a new five-year strategic plan that would seek to harness all opportunities to increase the group’s earnings and returns to shareholders.

He noted that the company has projected turnover of N9.6 billion for 2013 based on the optimism on expected increased output from its new  manufacturing plant, business restructuring efforts and expected reduction in financing costs following the soft loan received from T.Y Holdings during the last quarter of 2012.

He added that profit is also expected to increase in 2013 as the company continues to optimize production and cost efficiencies.

“Our company is well-positioned for the future with a lot of potentials from the strategic investment we have made in Ota and other attractive business prospects in our sight. As we vigourously pursue our new five-year strategic plan with all the opportunities it presents, we can only hope for better performance and stronger earnings capacity going forward,” Danjuma said.

He said the company has reached advanced stage in perfecting the renewal of the joint venture agreement with the Federal Government on the local manufacturing of vaccines noting that the company will shortly after the agreement commence local production of vaccines.

Danjuma called for a deliberate policy by the various arms of government in Nigeria to buy locally produced products and services.