Stanley Opara
Foams and allied products manufacturer, Vitafoam Nigeria Plc, is looking at growing future earnings by leveraging its various subsidiaries.
The firm also pledged its commitment to growing shareholders’ value, promising that its board and management would weigh the call for a rights issue by shareholders, targeted at boosting its working capital.
The Chairman of the company, Dr. Bamidele Makanjuola, said this at the company’s Annual General Meeting held in Lagos on Thursday.
According to him, the company’s performance last year shows that most of its subsidiaries are already operating profitably while others have strong potential to enhance profitability.
Makanjuola, who addressed shareholders at the meeting, said a strategic review of the company’s business units to ascertain its continued alignment with broader transformation objectives was undertaken to position it for accelerated profitability.
The company, he explained, had completed its expansion project and had started to consolidate for optimal performance as reflected in the current status of some subsidiaries.
Makanjuola said, “Vitapur Nigeria Limited has become a source of hope and inspiration. It has posted profit for the second year running. Our moulded foam products, Vitavisco Nigeria Limited has continued to operate profitably. It is growling slowly but steadily. Vitafoam Nigeria Limited has maintained its profit-making streak, although this was attenuated during the year by the adverse economic conditions in the country.”
The Vitafoam chairman assured the shareholders that the company would revamp Vono Furniture Products, Vitagreen Nigeria Limited while strategic decision would be taken on Vitafoam Sierra Leone Limited and Vitafoam Ghana Limited, respectively, in view of the negative impacts of foreign exchange on their operations.
Describing the current directors of the company as professionals with integrity, Makanjuola stated that shareholder value would always be at the focal point of the company’s consolidation phase.
The shareholders commended the company’s board and management on its long tradition of stability and regularity of dividends despite the tough operating environment.
A shareholder, Alhaji Gbadebo Adetokunbo, commended the company’s foresight in diversification into pre-fabricated buildings and leather products that could be exported to earn foreign exchange and canvassed floating of a rights issue to generate revenue internally in addition to prudent management of the N2.1bn loan obtained by the company from the Bank of Industry.
Speaking at the AGM on the rights issue, the company’s Group Managing Director, Mr. Taiwo Adeniyi, explained that the company would look into the capital injection option and take the most professional decision on it at the appropriate time.
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