Nigerian-German Chemicals

[riskreturn]

NIGERIAN GERMAN CHEMICALS PLC
UNAUDITED RESULTS FOR THE HALF YEAR ENDED 30-06-2008
JAN TO JUNE 08 JAN TO JUN 07
TURNOVER N1.825b N1.366b
PROFIT BEFORE TAXATION N192.443m N170.743m
TAXATION (N57.733m) (N51.222m)
PROFIT AFTER TAXATION N134.710m N119.521m
NOTE: THIS PERFORMANCE WAS DRIVEN BY CONTINUING DEMAND
FOR THE COMPANYS MAJOR BRANDS AND IMPROVING PLANT
OUTPUT

[hispy99]

NGC plans N6b hybrid offering
Posted Wednesday, September 3, 2008



Following a resolution by shareholders of Nigerian-German Chemicals (NGC), that the company's board of directors be authorised to raise fresh funds from the capital market, the company has concluded arrangements to raise about N6 billion from the market.



A statement from the company said the capital would be raised through a hybrid of rights and convertible bond, which would pave way for the implementation of all projects during the second half of 2008 and first quarter of 2009.



The shareholders had unanimously approved and authorised its board of directors to raise additional capital up to the tune of N6 billion through the issuance of debt and/or equity capital.



According to the company, the sum to be raised will be used to finance the company's business and growth strategies.



Specifically, major projects have been identified for implementation with the aim of achieving rapid growth in both turnover and profits, over the next three to five years.



With strategic objectives designed, the company will be undertaking the project, to maximise potential of existing business by undertaking various capacity expansion initiatives for both pharmaceutical and consumer production lines, to reduce gearing and enhance shareholder value.



Furthermore, the company is planning to invest for efficiency enhancement, better management and higher margin by installing a new enterprise resource management (ERP) system and restructure the group into Strategic Business Units (SBUs) while attempts will be made to grow turnover and margins and achieve consistence in cash flows by making significant investments in new business ventures, including intra-venous fluids (IVF) plant.



The company added that the capital to be raised would enhance the implementation of all its projects during the second half of 2008 and first quarter of 2009.



"Armed with the authority to raise additional capital up to the tune of N6 billion, management will proceed to raise capital from the market through a hybrid of rights and convertible bond. This will pave way for the implementation of all projects during the second half of 2008 and first quarter of 2009," it noted. - Guardian

[hispy99]

NGC to raise N6bn for expansion
By Udeme Ekwere
Published: Monday, 8 Sep 2008
Nigerian-German Chemicals Plc has indicated plans to raise N6bn additional capital from the Nigerian Stock Exchange for expansion purposes.

This amount will be used by the company to finance its business and growth strategies, a statement on Friday said.

The company stated that in line with its overall aim of achieving rapid growth in turnover and profits, several projects had been identified for implementation within the next few years.

According to the statement, the company has a strategic objective of maximising the potential of the existing business by undertaking various capacity expansion initiatives for both pharmaceutical and consumer production lines.

This, it stated, would serve to grow turnover and margins in order to achieve consistency in cash flows.

Speaking on the issue recently, the Chairman of the company, Alhaji Shehu Idris, said, “In the past few years, production capacity limitations, and rising operating cost have put a strain on our profit and top line growth. We will, therefore, wish to raise this capital to give our company access to flexible long-term financing for successful implementation of the business expansion programme.”

Idris, who was represented by the company’s Vice-Chairman, Mr. Adeboye Shonekan, at the company’s recent annual general meeting, stated that the move would reduce cost and improve the company’s cash flow, thus leading to greater returns for shareholders in the coming years.

In its result for the 2007 financial year, the company recorded a turnover of N2.63bn, representing an increase by 5.6 per cent over N2.49bn recorded the previous year. Profit after tax, however, fell by 22 per cent to N56.9m, up from N73.3bn in 2006.

[hispy99]

NGC floats N22 billion rights issue
By Gbenga Agbana

NIGERIAN-GERMAN Chemicals Plc, a pharmaceutical and healthcare products company quoted on the Nigerian Stock Exchange, is currently issuing by way of rights issue to its existing shareholders, 123 million ordinary shares of 50 kobo each at N18 per share.

Packaged by Vetiva Capital Management Limited as lead issuing house and UBA Capital (Africa) Limited, both investment companies, the offer according to market operators would be successful despite the bearish trend in the stock market, since some existing investors have indicated their readiness to take up their rights.

According to the prospectus, the purpose of the offer, according to the company's Executive Vice-Chairman, Mr. Adeboye Shonekan, is to enable the company expand its operations.

Specifically, Shonekan disclosed at the completion board meeting held recently in Lagos that the proceeds of the rights issue would be applied towards the expansion of the company's Ikeja and Otta plants, the establishment of a new liquid and water plant and the establishment of a new intravenous fluids plants, and also boost the company's working capital.

While convincing investors on the benefits of investing in the rights issue, Shonekan explained that the company recorded a turnover of N2.47 billion in 2005, N2.49 billion in 2006, and N2.63 billion in 200, paying dividends, per share of 35 kobo in 2005, 45 kobo in 2006 and 45 kobo in 2007 to its shareholders.

He added that subscribing to the rights issue by existing shareholders would enable them an opportunity to continue to benefit from a dominant player in the pharmaceutical and healthcare industry with the capabilities to harness the opportunities in the pharmaceuticals and consumer goods sectors of the economy as a whole.

To ensure all the stakeholders participate, Shonekan said the offer documents have been mailed to existing shareholders who are expected to complete the forms of acceptance and submit to receiving agents on or before Wednesday, November 26 2008.