Odu’a Investment repositions for profitability
ODUA Investment Company has announced that the firm has embarked on a five-year growth plan that would grow the group’s business in five years (2015-2019) from N4.5billion to N20billion with 15per cent rise in profit before tax.
The growth strategy, aimed at turning around the fortunes of the company in the next five years, according to the Group Managing Chief Executive Officer of the company Adewale Raji would also change the orientation of the company from ‘rent collectors’ to that of an ‘enviable conglomerate’ that can stand tall among peers like UAC, PZ Cussons and Dangote in a near future.
Raji who took over the company last year, lamented that for a company whose assets base is in excess of N80billion, but generate a little above N1billion, has had a run of misfortunes in these past years.
“In all these years, no dividend was paid to shareholders which are an aberration in a business enterprise by my own background,” he said.
He recalled that the Holding Company and the Group had no manufacturing company in existence as Nigeria Wire & Cable, Ibadan, Askar Paints, Ibadan, Epe Plywood Ltd, Epe and Cocoa Industries Ltd, Ikeja which were operational at the resumption of his predecessor had all became moribund at the time of his resumption.
“The subsidiary companies, which were also struggling with Lagos Airport Hotel, Lafia Hotel, Premier Hotel and Odua Printing & Publishing Company recorded losses in 2014. Only the group head office that is beneficiary of rents on our properties and dividends from our equity holdings in quoted and unquoted companies, Wemabod Estates Limited (properties) and GlanvillEthoven Insurance Brokers are those that are profitable.”
Raji said the Board has since approved a restructuring programme, adding that KPMG Advisory Services was engaged to facilitate a five year strategic plan for the management of Holding Company and managing directors of all subsidiaries.
“It is the vision of the management and board to reposition Odua Group to create an enduring value that will be the pride of the South West. We also identified that core to achieving the five-year plan will be the active engagement of our people by emphasising professionalism and best practices as well as retention and attraction of best in class talent.