Portland Paints restructures, to raise additional capital

Portland Paints and Products Nigeria PLC (PPPNP), a Subsidiary of UAC of Nigeria Plc has stressed its commitment to increase shareholders value on investment through consolidating the on-going restructuring exercise in the firm, as well as seeking growth opportunities in the industry.

The Chairman of the company, Larry Ettah stated this during the 2015 yearly general meeting of the company, held in Lagos yesterday.

Ettah, who noted that the company has experienced unprecedented challenges during the year under review, occasioned by some macro -economic concerns, however, assured shareholders that the company is currently restructuring its operations to fast track growth.

“As a result of the difficult and challenging economic and business environment in 2015, your Company recorded a Revenue of N2.17 billion, which was 23% lower when compared to the N2.8 billion of the previous year.  This resulted into a Loss After Tax of N233 million, compared to the N148.6m profit recorded in 2014.

“But during the year under review, we commenced a process of restructuring the business focusing on internal efficiencies and reviewing our route to market model in a bid to ensure that we build a sustainable future for the business”.

The Chairman noted that despite the challenges and risks posed by the business environment, the company, with SANDTEX, as its flagship brand would continue to consolidate on the restructuring that is already on going and seek growth opportunities to deliver returns to the shareholders.

Commenting on the planned capital raise by the company, Ettah said: “We will apply the planned rights proceeds to minimize the debt exposure risks of our business as well as carry out targeted expansion in our operations. The business will focus on its growth brands as well as make the necessary investment in marketing to improve its brands’ awareness and visibility.”

The shareholders urged the management to reduce its expenses and pay dividend in the next financial year.

Specifically, the President, Standard Shareholders Association of Nigeria, Owolabi Peters advised the company to reduce its expenses and intensify efforts in reducing its bad debts in order to increase its bottom-line.

He also urged the company to be wary of the current stock prices in the market before floating the rights issue.