Two months shy of the seventh anniversary of its November 2, 2010 listing, Paint & Coatings Manufacturers Nigeria Plc is set to exit the Nigerian Stock Exchange (NSE).
In a statement to the nation’s investment community on Friday, the NSE through Godstime Iwenekhai, its acting head of Listings Regulation Department, announced that Meristem Securities Limited, stockbroker to Paints & Coatings, applied for a scheme of arrangement with holders of its fully paid up ordinary shares to delist from The Daily Official List.
A total of 792,914,256 ordinary shares of the company, formerly known as PCD Nigeria was listed on Tuesday, November 2, 2010 at N3.90 each, nine years after commencing business in Port Harcourt, Rivers State as the sole distributor of the oil and gas industry’s leading brand – International Paints Protective Coatings and Marine Coatings.
It became not just a supplier of paints and coating systems, but a partner working to understand customer needs in a bid to finding solutions.
It later joined in the fight against Malaria carrying mosquitoes by being the first to bring revolutionary mosquito repellent range – Mozzi™ to Nigeria.
According to its unaudited result for the half-year ended June 30, 2017, released recently, turnover rose by 9.1%, while profit before tax dropped by 56.8% to N22.084m, from the previous N51.131m.
Net profit declined also by 56.8% to N15.017m, representing earnings per share of 2 kobo, as against the previous N34.769m or 4 kobo. For the 2016 audited financials, revenue dipped by 6.3%, while net profit tumbled 82.6% down, resulting in EPS of 3 kobo, as against the 16 kobo reported in the preceding full year.
The share price has since the release of its half-year 2016 result and now however between 99 kobo and 65 kobo. On Friday, its share price closed unchanged at 62 kobo per share.
The company, unlike many on the exchange had been consistent in dividend payment, missing only the 2016 payout. It distributed a dividend per share of six kobo in 2010, eight kobo in 2011, raising the bar in 2012 when it distributed 12 kobo, before dropping 40% to eight kobo the following year, a period when it share price closed at 196 kobo and 190 kobo respectively. In 2014, it paid eight kobo again, and then five kobo each from 16 kobo Earnings Per Share in 2015.
According to the company’s filing for its 2016 audited financials , majority shareholders (owning above 5% of its paid up share capital) were: Semeli Ltd (BVI)- Michael Thompson, 36.3%; Bassam Dina (a director), 24.2%; Jenete Iloabanafo Investment Ltd, represented by Chief S.IC. Okoli, the company’s chairman owns 12.8%; and SNN/Asset Management Corporation of Nigeria (as per collateral acquired from the then Intercontinental Bank), 7.4%. They therefore have a combined 80.7% stake.