Presco shareholders approve N24.3bn final dividends for 2023

…Total dividend yields hit 13.6%

Shareholders at the 31st Annual General Meeting (AGM) of Presco Plc, approved a final dividend of N24.30 per ordinary share of 50 Kobo, totaling N24.3 billion, as recommended by the Board of Directors for the financial year ended December 31, 2023.

This is in addition to an interim dividend of N2.00 per 50 kobo share, amounting to N2 billion. Consequently, the total dividend for the year amounts to N26.30 per share, aggregating N26.3 billion.

With a total dividend of N26.30 for FY 2023, Presco posted a dividend yield of 13.6 percent, making it one of the most profitable stocks in the NGX.

During the AGM on Thursday, shareholders also authorised the company to raise additional capital through debt finance, equity raising, or a combination of both, as deemed appropriate by the Directors.

Furthermore, the shareholders empowered the Directors to invest indirectly or through its subsidiary and to acquire assets or a majority of shares in companies or entities operating within the same industry as Presco Plc.

In line with this move, Presco already announced its decision to acquire a 100 percent stake in fellow subsidiary of SIAT SA, the Ghana Oil Palm Development Company.

Addressing Shareholders, the Chairman of the company, Mr Rasheed Sarumi explained that the Board is firmly committed to maintaining the highest standards of corporate governance in line with best practice.

He noted that during the year, Grant Thornton Consultants, an international corporate consultant, repeated the annual Board Assessment and reviewed the Company’s corporate governance policies and procedures to monitor compliance.

According to the Chairman, their report forms part of the annual report and accounts as required by the Securities and Exchange Commission (SEC) Code and the 2018 National Code of Corporate Governance Practice.

The chairman assured the shareholders that Presco Plc is committed to leveraging the abundant business opportunities present within Nigeria and the ECOWAS sub-region to realise its strategic growth ambitions for the benefit of all stakeholders.

He said, “We will continue to strive for operational excellence, pursue substantial growth, and uphold the highest standards of corporate governance.”

Also speaking at the event, Managing Director/ Chief Executive Officer, Mr. Felix Nwabuko, assured shareholders and stakeholders of a rewarding future.

The Company’s Revenue grew by 26.4 percent, from N81.03 billion in 2022 to N102.42 billion in 2023, while Gross Profit grew by 30.13 percent to N65.03 billion.

Profit before tax witnessed an uptick of 152 percent, amounting to N50.01 billion from N19.81 billion recorded in the previous year, and Profit After Tax reached N32.86 billion, marking an increase of 152 percent from the previous year. The firm’s finance costs declined to N8.41 billion from N8.49 billion during the period reviewed.

Presco’s selling and distribution expenses declined to N1.55 billion from N1.79 billion and administrative expenses increased to N20.9 billion from N20.4 billion. Earnings per share rose to N30.42 from N13.03.

Presco closed the trading on Friday, June 7, 2024, at N293.90 per share on the Nigerian Exchange (NGX). The company began the year with a share price of N193.00 and has since gained 52.3 percent this year.