Vitafoam Nigeria Plc’s proposed dividend and bonus have been approved by the company’s shareholders, who also praised the management for achieving a better result in 2018 despite a tough business environment.
The shareholders endorsed the N260.51 million dividends which translate to 25 kobo per ordinary share. They also approved a bonus issue of one share for five already-held.
While reacting to the proposed dividend and bonus shares, a shareholder who chose not to be named, lauded the management of Vitafoam for prioritising the welfare of the shareholders and grinding positive financial performance in a tough environment.
“The 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 patronize the products. The company’s corporate governance policy is very good.”
The management of Vitafoam expects the company’s revenue performance to continue at a positive trend irrespective of the business environment in Nigeria.
Taiwo Adeniyi, the Group Managing Director of the company, said the nature of the operating environment won’t constrain the growth of the company.
It would be recalled that Vitafoam enjoyed financial backing from the Bank of Industry (BoI) which the company says comes at moderate interest.
To Vitafoam’s management, capital facility from BOI is preferable to embarking on a rights issue, because it would increase the share capital and put pressure on the company’s ability to pay competitive dividend.
Vitafoam Nigeria Plc posted growth in turnover for the year ended 2018, while the company’s profit-after-tax also grew in the year under review. The company recorded N17.61 billion in 2018, an increase from N15.92 billion in 2017. Profit- after- tax also grew from N190.54 million in 2017 to N486.1 million in 2018.