Stock Market

CAP Plc Profit Before Tax Declined by 28.1 Percent to N532 Million in Q4 2020

Published

1 month ago

January 29, 2021

CAP Plc Profit Before Tax Declined by 28.1 Percent to N532 Million in Q4 2020

Chemical and Allied Products Plc (CAP), Nigeria’s leading paints and decorative company, profit before tax declined by 28.1 percent from N739 million filed in the final quarter of 2019 to N532 million in the final quarter of 2020.

Revenue expanded by 4.4 percent to N2.8 billion in the quarter, largely due to 30.4 percent growth in volume recorded across key product lines.

However, CAP posted a 13.2 percent decline in gross profit from N1.1 billion in the fourth quarter of 2020, down from N1.2 billion achieved in 2019.

According to the company, the decline in gross profit was a result of COVID-19 disruptions and high input costs recorded on the supply chain due to scarcity of raw materials.

Earnings before interest and taxes (EBIT) stood at N475 million in Q4 2020, down from N640 million posted in Q4 2019 due to the high cost of sales recorded during the period under review.

As expected, operating cost grew by 0.3 percent year-on-year while operating expenses/sales improved by 90 basis points.

The company’s net finance income declined by 42,6 percent because of the lower treasury yields when compared to the preceding year.

Commenting on the company’s performance, Managing Director, David Wright, said: “CAP recorded modest top-line growth last year despite the COVID-19 lockdown in the second quarter of 2020 and protests in the fourth quarter of 2020, effectively losing 7 weeks of sales.”

“We are encouraged by the growth in revenue which has been solely driven by underlying volume growth in line with our strategy. Alongside the rest of the world, we experienced supply chain disruptions which impacted our raw material sourcing and resulted in input costs pressures. We have embarked on initiatives focused on mitigating these disruptions and expect to see positive results in 2021.”

“We announced the proposed merger between CAP and Portland Paints and Products Nigeria Plc in the fourth quarter of 2020. We have received preliminary regulatory approvals and an order from the Federal High Court to hold a Court-Ordered Meeting. Merger completion is subject to shareholder approval and final regulatory approvals and we expect to conclude the merger in the first quarter of 2021.”

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Samed Olukoya

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Nigerian Stock Exchange

Dangote Sugar Board of Directors Approves 2020 Audited Financial Statement

Published

4 days ago

February 25, 2021

Samed Olukoya

Board of Directors Has Approved 2020 Audited Financial Statement for Dangote Sugar

The board of directors, Dangote Sugar Refinery Plc, has approved the Financial Statement for the period ended December 31, 2020.

The company disclosed in a statement filed with the Nigerian Stock Exchange on Thursday.

According to the statement signed by Mrs. Temitope Hassan FCIS, Company Secretary/Legal Adviser, Dangote Sugar, the board also recommended the declaration of dividends subject to the approval of shareholders at the Company’s Annual General Meeting to be held in due course.

It stated that “the Closed Period remains in force until 24 hours after the filing of the Financial Statements.

“No insider of the Company, including its Directors, Employees, Advisers and Consultants and their connected persons may deal directly or indirectly in the Shares of the Company during the Closed Period.”

Stock Market

Refinitiv Partners With Nairobi Stock Exchange to Enhance Transparency of Secondary Fixed Income Market in Kenya

Published

5 days ago

February 24, 2021

Samed Olukoya

Refinitiv Partners With Nairobi Stock Exchange to Enhance Transparency of Secondary Fixed Income Market in Kenya

KENYA – Refinitiv partnered with the Nairobi Stock Exchange (NSE) to enhance Fixed Income (FI) price discovery and raise market transparency in Kenya.

As part of the partnership, the NSE will roll out Refinitiv Fixed Income Callouts in Kenya, an automated workflow that facilitates negotiations and agreements of secondary Fixed Income (FI) bond trading among banks, brokerage firms, and real-time integration with the Central Securities Depository (CSD).

The primary FI market has been steadily growing in Sub-Saharan Africa (SSA) as governments explore better access to financing. According to the 2020 Refinitiv investment banking review, SSA debt issuance totalled US$19.0 billion in 2020. With the increased accessibility to technology, electronic trading has emerged as a significant channel to the growth of a secondary FI market across the continent.

The deployment of Refinitiv’s solution will enable the NSE to benefit from an automated Over the Counter (OTC) FI workflow that is integrated in real time with both, the Securities Exchange and the CSD in Kenya.

Geoffrey Odundo, Chief Executive Officer, Nairobi Securities Exchange, said: “We are excited to be working with Refinitiv and the fixed income community to drive innovations in our market and adopt global best practices. Refinitiv’s trading workflow combined with NSE’s post-trade system will help us improve trade life cycle, reduce operational risks and encourage price discovery and transparency in the market.”

Nadim Najjar, Managing Director, Middle East and Africa, Refinitiv, said, “We are proud to partner with the NSE and the local regulators to foster transparency, latency and liquidity. Refinitiv Fixed Income Callouts will allow market participants to benefit from real-time price discovery across bonds and bills. The deployment will also facilitate collaboration among Kenyan banks, brokerage firms, and the CSD.”

“The Kenyan financial markets have seen significant growth over the past few years. This partnership reinforces our commitment to enable the local regulators and financial community with advanced technologies and workflows to achieve efficiency and growth. The adoption of Refinitiv Fixed Income Callouts will create an effective market infrastructure, build greater long-term confidence amongst investors, and ensure strong governance processes,” he added.

Nigerian Stock Exchange

Stock Market Gains as AIICO, Zenith Bank, Flour Mills, Others Close in the Green

Published

5 days ago

February 24, 2021

Samed Olukoya

Stock Market Gains as AIICO, Zenith Bank, Flour Mills, Others Close in the Green

Nigerian Stock Exchange (NSE) closed in the green as stocks of AIICO, Livestock, Flour Mills, Zenith Bank and others closed strong.

Investors traded 337.955 million shares valued at N3.845 billion in 5,232 transactions during the trading hours of Tuesday.

The market value of listed equities grew by N5 billion from N21.009 trillion on Monday to N21.014 trillion on Tuesday while the NSE All-Share Index gained 0.03 percent from 40,154.09 index points recorded on Monday to 40,164.86 index points.

FBNH led the most trade stocks with 64,588,247 shares valued at N471,801,052.30 as shown below.

Top Trades

Symbols	Volume	Value
FBNH	64,588,247	N471,801,052.30
ZENITHBANK	52,673,009	N1,341,206,505.80
TRANSCORP	41,987,880	N38,118,654.63
UCAP	20,968,270	N128,224,244.12
UBA	18,146,830	N153,239,636.30