Vitafoam hopeful of sustaining investment growth
Specifically, the foams and allied products manufacturer explained that investments made in the soft furnishing subsidiary: Vitablom and the Vitapur, the insulation arm of the business are expected to sustain its growth and profitability.
At the company’s 2018 yearly general meeting in Lagos, at the weekend, the Chairman, Dr Bamidele Makanjuola, said Vitablom Nigeria Limited took a giant stride with the installation of a fibre sheet processing line, and commencement of fibre sheet production in the last quarter of the year.
Moreover, shareholders at the meeting endorsed dividend of N260.51 million, translating to 25 kobo per ordinary share, and bonus issue of one share for every five already held.
Makanjuola said: “Our insulation production arm, Viatapur Nigeria Limited, sustained a trend of profitability in the financial year. We are intent on harnessing the potential of this business. I am proud to inform you that quality wise, Vitapur’s array of insulation panels compete favourably with imported variants.”
He revealed that turnover increased from N15.92 billion in 2017 to N17.61 billion in 2018, while profit after tax also grew from N190.54 million to N486.10 million during the period.
Responding to some shareholders’ clamour that Vitafoam should raise additional fund through floating of rights issue to expand operation, Makanjuola, who thanked them for their support and interest in the company, noted that rights issue always carried cost elements.
He said the company is enjoying facilities through the Bank of Industry (BOI) at moderate interest, and this option is preferable at the moment.
On the suggestion by a shareholder that more comfort zones be established, he noted that this would be done subject to availability of fund, because the zones are quite important but capital intensive.
The Group Managing Director, Taiwo Adeniyi, said three of the seven subsidiaries had begun to generate profit, while others would soon follow, however, hinted that the Sierra Leone Branch might be sold in view of some challenges.
Adeniyi assured the shareholders that Vitafoam’s financial performance will continue to improve regardless of the nature of the operating environment, and in turn, translate to higher value.
A shareholder, Aboyomi Adebayo, commended Vitafoam’s management for the good performance despite the harsh operating environment, saying: “This performance is far better than the previous one. This is commendable because the operating environment is tough. We are pleased with the dividend and bonus shares.
“Vitafoam’s management has proved once again that the company is genuinely interested in the welfare of the shareholders. There is a need for more engagement with big customers such as schools and hotels all over Nigeria, to enable them patronise the products. The company’s corporate governance policy is very good,” he added.
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