Flour Mills:an inside view(3)
March 20th, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
Liquidity
The proportion of current assets to current liabilities in 2005 was 0.88; it came to 0.94 in 2006. The percentage of working capital to sales in 2005 was four per cent; it came down to two per cent in 2006. Liquidity ratio in 2005 was 35 per cent. It was improved upon in 2006 to become 46 per cent.
Management
Mr. J.G. Coumantaros remains the chairman while Chief E. A. Ukpabi remains the managing director in the year under review. Mr. Babatunde Godonu Amusu, former managing director who was in the board as a non-executive director died during the year. Also in the year, Mr. Thanasis Mazarakis joined the board of director of the company.
Opinion
The company is a well run company. The growth of turnover by 30 per cent in 2006 over the value of 2005 is encouraging. Efficiency of its management is seen in the profit it grossed in 2006. It improved on its standing of 2005 by 63 per cent in 2006. Profit after tax recorded a growth of 219 per cent in 2006 over its standing of 2005. This is superlative. However, the dividend policy of the company is poor as the percentage growth in dividend was not commensurate with that of profit it made in the year. Well, what could explain for this is the bonus of one for three that it gave in the year. Flour Mill has remained a company investors can rely upon.
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