CAP Plc dishes out dividend
March 23rd, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
Shareholders of CAP Plc, a company listed in the chemical and paints sub-sector of the Nigerian Stock Exchange, are to enjoy a special dividend of about N418m for the year ended December 31, 2006. The special dividend translates to N2 per share and is in addition to a normal dividend of 50 kobo also recommended by the directors for the same period.
High expectations for improved results from the company have been driving the share price of CAP Plc since the beginning of the year, lifting it from N25 to N31.54 before the N2.50 dividend was announced . The dividend is 257 per cent above the 70kobo paid in 2005. It was learnt that the directors decided to pay the special dividend from their excess reserves.
“The company has excess funds in its reserves and since the money would not be needed for the operations, the directors resolved that part of it be shared among the shareholders who have remained loyal over the years,” a source said.
CAP Plc announced a turnover of N1.98bn for the year ended December 31, 2006, showing an increase of 30 per cent above the N1.52bn recorded in 2005. Profit before tax rose by 52 per cent from N303m in 2005 to N461m in 2006, while profit after tax appreciated by 55 per cent from N202m in 2005 to N313m in 2006.
CAP Plc , which is a subsidiary of UAC of Nigeria Plc, evolved from the world-renowned British multinational Imperial Chemical Industries Plc. The company formalised its Nigerian operations in 1957 under the name ICI Exports Limited. Following the promulgation of the first and second Indigenisation Decrees in 1972 and 1977, ICI Nigeria Limited at first sold 40 percent but later 60 per cent of its share capital to the Nigerian public, and went further to change its name to Chemical and Allied Products.
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