Shareholders of Chemical and Allied Paints, CAP Plc, have approved the payment of N840 million dividends, which translates to 120 kobo dividends earlier recommended by the Board of Directors for the financial year ended December 31, 2015.
This along with the 115 kobo interim dividend paid on December 15, 2015, brought the total dividend for 2015 financial year to N1.65 billion.
Ratifying the payment at the company’s Annual General Meeting, AGM, in Lagos, the shareholders commended the Board and management for the dividends and result posted during the year, saying that it was commendable in view of the difficult and challenging operational environment.
“We should be celebrating CAP for a solid result considering the myriads of problems facing the country. CAP was able to grow topline by one per cent, while profit after tax grew by five per cent. This is commendable, when you also consider that our company has grown topline consistently in the last five years,” said Matthew Akinlade, a shareholder.
Another shareholder, Chief T.O Adegboye, while applauding the Board for the dividend, stressed the need for the company to strengthen its marketing unit and increase its footprint across the country by opening more outlets in areas where it has less presence to drive profitability.
Speaking earlier, the chairman, Mr. Larry Ettah, assured that the company would continuously seek oportunity to innovate and increase its retail penetration in places where return-on-investment is guaranteed. “To further improve our brand visibility and accessibility to consumers, we opened additional Dulux Colour Centres in Yola and Gombe and Dulux Colour Shops in Lafia, Ada-George Port Harcourt, Ado-Ekiti, Dugbe Ibadan, Agbor, Suleja, Lugbe Abuja and Jalingo,” Ettah said.
He stated that CAP Plc delivered a commendable performance against the backdrop of an extremely challenging economic and business environment with a turnover of N7.06billion, a growth of one per cent and profit before tax of N2.57 billion, an increase of five per cent over 2014.
He alluded to the challenges in the macro-economy and resurgence of restiveness in the Niger Delta region and assured the company is looking for ways to mitigate the problems.
“Fiscal policy is expected to be largely expansionary as the government seeks to stimulate economic activities and generate employment. The year has, however, started on an adverse mode, with acute shortage of foreign exchange.
“The cumulative effect of the scarcity of forex, falling oil prices, and the resurgence of restiveness in the Niger Delta, which could endanger the production output of 2.2m barrels per day and the continued depletion of foreign reserves pose serious threats to businesses and social activities in 2016. The Board and management of your company is alive to these challenges and have outlined mitigating strategies to ensure that these headwinds do not significantly impact our business negatively in 2016,” he stated.
