News Column

Flour Mills, Roads PLC Declare Dividends, Bonus Shares

August 4, 2014

Three companies last week announced returns ranging from cash dividends to bonus shares to their shareholders. While Flour Mills of Nigeria Plc and Roads Plc declared cash dividends and bonus issues for the year ended March 31, 2014, Custodian and Allied Plc declared an interim dividend for the half year ended June 30, 2014.

Although Flour Mills recorded a decline of 28 per cent in profit after tax for the year, the directors recommended a cash dividend of N1.10 and a bonus of one new share for every 10 shares already held. The same level of dividend was paid the previous year, while the company had similarly given bonus shares in 2010.

Also Roads Plc, which is a construction firm, announced a cash dividend of 60 kobo and a bonus of one new share for every four shares already held for the year ended March 31, 2014.

On its part, Custodian and Allied Plc recommended an interim dividend of six kobo, which is higher than the total dividend of five kobo paid in the previous year.

Meanwhile, an analysis of the Flour Mills results showed that the company reported a revenue of N33 billion, up from N302 billion. Gross profit grew from N37 billion to N44 billion.

However, high finance and other cost of operations, impacted on the profit before and after tax. Finance cost rose from N11.4 billion to N16 billion, leading to a drop in PBT from N10.9 billion to N8.2 billion. Despite reducing tax from N3.3 billion to N2.9 billion, PAT declined by 28 per cent from N7.5 billion to N5.4 billion.

On the other hand, the Custodian and Allied Plc recorded an improved performance for the half year to June 30, 2014, leading to the declaration of an interim dividend of six kobo.

The company recorded gross premium income of 9.8 billion, up from N7.7 billion. Profit before tax grew from N1.5 billion to N2.7 billion, while profit after tax appreciated from N1.12 billion to N2.27 billion, showing a growth of 100 per cent.

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Source: AllAfrica

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