UAC to focus on subsidiary business
UAC of Nigeria Plc has said it will focus on building its subsidiaries for the next three years.
A statement from the company on Thursday, said it was set to ensure that it grew its holding company structure to boost profitability.
The Chairman, UACN, Senator Udo Udoma, was quoted as saying this at the company's Annual General Meeting in Lagos.
He said, 'We have made significant progress in our growth drive into adjacent categories with the conclusion of our acquisition of majority stakes in Livestock Feeds Plc.
'Discussions are progressing with Portland Paints and Products Plc. These acquisitions are in line with our strategy of building a portfolio of brands and businesses with strong growth potential in the Nigerian economy.
'We will, over the next three years, focus on consolidating our holding company architecture, which is aimed at delivering empowered and capable subsidiaries to assure sustained shareholder value enhancement.'
Udoma said that the company would continue to sustain growth in all its existing and acquired businesses despite the environmental constraints and in line with its mission to grow the topline significantly above Nigeria's annual Gross Domestic Product growth rate.
The company recorded a 49 per cent rise in operational profit to N11.5bn for 2012, just as profit before taxation hit N10.7bn, up from N6.96bn the year before.
Its profit after taxation stood at N7.1bn.
Accordingly, the company recommended a dividend of N2.56bn, translating into N1.60 per ordinary share of fifty kobo each.
Also, a bonus of one additional share for every five ordinary shares was also declared to shareholders.
Udoma added that UAC recently entered into a partnership with Imperial Mobility BV, which bought 49 per cent of UAC's 100 per cent equity in MDS Logistics.
The company is currently working on the terms of agreement with a potential strategic investor in UAC Restaurants Limited.