Shareholders of Vitafoam endorse N247.5 million dividend

SHAREHOLDERS of Vitafoam Plc, yesterday commended the company’s board on its improved performance, even as they approved its N247.5 million dividend, translating to 25 kobo per share due to every shareholder of the company for the 2015 financial year.

Speaking at the yearly general meeting of the company in Lagos yesterday, the shareholders who lauded the management for enhancing their returns on investment through dividend payout, also called for financial prudence to increase shareholders’ value.

Specifically, an official of the Lagos Zone Shareholders Association, Theophilus Adegboye expressed the need for the company to tighten its control on trade receivables, noting that it rose by 60 percent which, according to him would hinders company’s growth.

“Our control on trade receivables needed to be tightened. This is the cash we would have used to run the business. We should look at our finance cost and rec over more from our debtors so that we can borrow less from the banks.

The National coordinator, Progressive Shareholders Association of Nigeria, Boniface Okezie explained that the company has been consistent in its dividend pay out to shareholders over the years.

He also commended the company’s adherence to corporate governance, especially in its succession plan, noting that with the company’s innovativeness, it has maintained leadership position in the industry.

The Chairman of the company, Bamidele Makanjuola explained that the company has identified an opportunity in the automobile industry, noting that a new subsidiary has been established for the production of automotive filters.

The new business, according to him is expected to commence operations by the third quarter.

He added that the business would open a new frontier that would help ensure that the business portfolio was adequately diversified to withstand extraneous challenges.

To also consolidate its performance, Makanjuola explained that Vitablom Nigeria Limited, the company’s subsidiary has concluded plans to set up a bigger market by repositioning its product base to service the furniture and automobile industries.

“ As we try to control our cost, we have decided to limit our exposure to our subsidiaries to a maximum of 40 percent. This is expected to relieve us of financial burden of 100 per cent ownership. We can always raise 60 percent equity through private placement.

“Also during the year under review, Vitapur Nigerian Limited, our insulation arm attained a significant millstone by acquiring a Sandwich Panel Production line with the capacity to produce panels of varying lengths and thickness.

“ This would be the first of its king ion west Africa. Innovative products from vitapour has continued to excite the market, engendering interest from government at all levels, as well as from private institutions. This subsidiary continues to exude the character and prospects of a flagship company within the group in the foreseeable future.
The Group Managing Director of the company, Taiwo Adeniyi explained that the production of oil filter by the company would make then the first company to venture into such business.

“Before the year end, we would be producing oil filter and later on we are going to add several oil filters to that business. There are no manufacturers of oil filters in Nigeria, what we have is people that trade on oil filters in Nigeria, what they do is portfolio importation. We do not have producers of the product.”

Adeniyi who assured the shareholders of higher value lamented the effects of forex scarcity and imported raw materials on the production of foams in Nigeria .He however expressed optimism that Vitafoam would continue to operate optimally as measures have been put in place to strengthen the company’s operations with cost saving approach.