Wednesday, October 3, 2018 1:26 pm
By Daniels Ekugo
Shareholders of Fidson Healthcare Plc have approved a dividend payout of N300 million for the year ended December 31, 2017. The dividend, which represents 20 kobo per ordinary share of 50 kobo, was approved at the 19th Annual General Meeting (AGM) of the company held Tuesday in Lagos.
The shareholders applauded the 200 per cent increase in the dividend payout against five kobo of the previous year, urging the management to make the price of the proposed N4.5 billion rights issue attractive. The shareholders also applauded of the management for the impressive financial results posted in the year under review.
Specifically, the President, Noble Shareholders Association, Chief Timothy Adesiyan, said: “I commend the management for the efficient running of the affairs of the company, as well as improved performance, amid harsh economic environment. The finance cost has reduced tremendously and that is why we are having the 20kobo dividend.”
Also, the President, Pragmatic Shareholders Association, Mrs Bisi said: “the increase in dividend from five kobo to 20 kobo is highly commendable. Shareholders will take their rights but I appeal to the board to make the price attractive to avoid dilution of shares.”
The chairman of Fidson Healthcare, Segun Adebanji, explained that the company has broadened its products base, which stimulated financial growth, and increased its capacity to ensure the healthcare demands of Nigerians are adequately.
According to him, the new manufacturing facility, which started operations two years ago has been well utilised, saying that the factory operated profitability during the year of 2017 with the implementation of efficiency and productivity improvement initiatives.
He noted that with the approval of shareholders at the previous AGM to raise fresh fund, the company will soon be raising an additional capital of N4.5 billion by way of a rights issue of three new shares for every five previously held.