Vitafoam proposes N246m dividend, profit rises by 67%

Vitafoam Nigeria Plc has proposed a dividend of N246m for the 2014 financial year after growing its profit after tax by 67 per cent during the year.

The proposed dividend, which is subject to the approval of the company’s shareholders at its Annual General Meeting in June, translates into 30 kobo per share.

In addition to the dividend, the company’s Board of Directors also proposed a bonus share of one for every five ordinary shares held by each shareholder.

The company said it made a profit after tax of N659m in the year ended September 30, 2014, compared to N395m the previous year, while its earnings per share rose by 69 per cent to 81 kobo from 48 kobo.

This, it said, was despite the harsh operating environment, stressing that the growth in EPS symbolised strong shareholder value.

Following the company’s positive performance and the resultant shareholder interest in its shares, it emerged the third highest gainer on the equities segment of the Nigerian Stock Exchange on Thursday. Its stocks rose by 7.75 per cent to close at N4.83 per share.

The company had moved to strengthen its operations in recent times, installing modern equipment at its plant in Sierra Leone.

According to it, the plant serves the neighbouring countries, including Guinea and The Gambia.

Only recently, it said its subsidiary, Vitapur Nigeria Limited acquired the SAIT Advanced Polyurathane to boost production of quality pallets and reinforce capacity utilisation, it said in a statement.

The company gave the assurance that while strengthening its operations it would build upon its long history of corporate social responsibility.

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Source : Punch

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