FBN Merchant Bank Records N3.8bn PBT | Independent Newspapers Limited
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FBN Merchant Bank Records N3.8bn PBT

Posted: Jun 16, 2016 at 11:11 pm   /   by   /   comments (0)

Bamidele Ogunwusi




FBN Merchant Bank Limited, the merchant banking subsidiary of FBN Holdings Plc recorded a profit before tax of N3.851bn for the year ended December 31, 2015.

This was contained in the firm’s financial report presented to shareholders at its Annual General Meeting in Lagos. The company said it reported a strong performance despite the inclement operating environment, as the PBT was 6.6 per cent above the budgeted profit of N3.614bn, and 113.11 per cent above the prior years’ actual profit of N1.807bn.

The merchant bank, which was formerly Kakawa Discount House, commenced operations in November 2015 following the CBN’s approval of its merchant banking licence and completion of operational prerequisites.

This expansion of the group’s platform offered the capability to provide a broader set of products and services, as well as access to a wider universe of funding sources.

In his opening statement, the Chairman of FBN Merchant Bank, Mallam Bello Maccido said: “2015 was a challenging period for the Nigerian economy due to the election year and the transitional period for the company. The volatility experienced in 2014 continued into year 2015, leading to spikes in rates and general uncertainty in the market.


Livestock Feeds Restructures, Target Better Results

A subsidiary of UAC of Nigeria Plc, Livestock Feeds Plc, has said it is restructuring its operations for an improved performance against the backdrop of an extremely challenging economic and business environment.

The Chairman of the company, Mr. Larry Ettah, in his address at the company’s Annual General Meeting in Lagos, said, “The company recorded revenue of N8.9bn, which is a growth of 13 per cent over 2014.

“However, due to the prevailing tough and difficult operating environment, cost of sales increased by about 16 per cent over 2014 leading to a profit before tax of N300m, a 25 per cent decline on 2014. In the same vein, profit after tax declined by about 26 per cent to N187.9m.”

Ettah stated, “Fellow shareholders, you will recall that our company paid a dividend of N0.10 per share on the 2014 results after several years of non-payment of dividend. This was done to reward shareholders for their steadfastness in keeping faith with the company through the lean years.

“However, in view of the 2015 results and the need to conserve funds to fund the growth plans and working capital of the company in 2016, the Board of Director has not recommended payment of a dividend for your approval.  We are hopeful that dividend payment will resume shortly.”

On the feed milling industry, the chairman said the project encountered acute shortage of the major raw materials of maize and soya bean meal; of which the prices of the products increased by 40 per cent in the course of the year, leading to increased cost.

The chairman added, “The acute shortage of foreign exchange and the worsening exchange rate also affected our business as importation of certain ingredients became difficult and expensive. All these increased costs which could not be recovered through price increases led to shrunken margins in the industry.

He said acute shortage and production of poor quality day-old chicks by hatcheries affected the ability of farmers to restock birds, adding that the breakout of the dreaded avian influenza in the first month of the year, which was thought to be an epidemic that would soon fizzle out, proved to be a major setback in the industry as it persisted for the better part of the year.

The disease, he explained, ravaged many farms all over the country leading to cull ing of millions of birds and further worsening the decreased poultry population as most of the affected farms were yet to restock.

In addition, he said the industry suffered severe egg glut and weak prices of poultry products leading to the inability to recover the increased costs of yields.

“This led to the shutdown of many poultry farms as the business was considered to be unprofitable,” he stressed.

On the outlook for 2016, the chairman stated that, “The reoccurrence of Avian Influenza disease especially in the northern part of the country is a cause for concern. We therefore call on all relevant bodies such as Veterinary Council of Nigeria, Nigerian Institute of Animal Science, Ministry of Agriculture, Federal Department of Livestock, and other regulatory bodies saddled with the responsibility of managing the sector to step up actions and campaigns against the spread of the disease.”

“The control and prevention models of other countries should be studied and adopted where necessary. We must ensure sustainable growth of the poultry industry as it remains a quick and relevant enterprise for poverty alleviation in Nigeria,” he said.