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ACORN SHAREHOLDERS REMOVE ODIMAYO, OTHERS FROM BOARD

By NBF News
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BY PETER EGWUATU
Shareholders of Acorn Petroleum Plc have passed a resolution to remove Omo-oba Oladele Odimayo and three other Directors of the company.

The removal of the directors was approved at the company's 28th Annual General Meeting (AGM) held at Obudu, Cross River State, last week.

The audited financial statement for the year ended June 30, 2009 was endorsed at the meeting by shareholders present.

Although the company turnover grew by over 200 per cent from N5.6billion in 2008 to N19.2 billion in 2009, it recorded a loss of N1.25 billion after tax.

The loss was attributed to the prevailing economic environment and high finance costs during the period under review.

The shareholders charged the Board of Directors to put in place an efficient internal control system and find ways of reducing high finance coss so as to return to profitability.

While addressing shareholders at the meeting, Chairman, Acorn Petroleum, Mr. Kolapo Lawanson

assured shareholders that the various issues that have plagued the company will be resolved as the Board is determined to remain united and focused while assuring them of better performances in the future.

Commenting on the company's performance for the period under review, he said, the gross profit grew by 413 per cent from N581million in 2008 to N3 billion in 2009. However, our company recorded total assets of N21.243 billion in 2009 as against N9.443 billion in 2008.

While commenting on the future of the company, Lawanson said, ' The year ending 30th June 2009 had not been one of the best for the company especially due to the turbulent environment we operated in but the Board is positioning the company for a better. Your Board testifies that the results are true reflection of the performance of your company and is confident that, as we slowly return to a more stable and positive business environment, your company is well positioned to utilise those opportunities which always accompany economic recovery following a significant downturn, such as we experienced. As a result, the Board expects the coming year to take us closer to our goal of becoming a leader in the energy sector.'

Acorn Chairman further disclosed to the shareholders that its Board has approved the change of financial year end from June to December.

According to him, ' The next financial year will translate to reporting for an eighteen month (July 2009 to December 2010) period which will enable our company stabilize for a better year end.