Shareholders of Custodian Investment Plc yesterday gave their approval to the board of directors of the company to raise the naira equivalent of up to $15 million as additional capital through a convertible loan instrument.
The shareholders, who gave the approval at t the 26th annual general meeting (AGM) of the group held in Lagos, also authorised the directors to convert the loan into shares in the company at a conversion price higher than N6.00 per share or the 12-month historical daily share price of the company derived from the Daily Official List of the Nigeria Exchange Limited (NGX)for the period ended March 23, 2021.
They hailed the board and management for reporting improved financial performance and returns on investment despite the adverse effect of the Covid-19 pandemic which disrupted global and local economies in 2020.
For instance, the founding Coordinator of Independent Shareholders of Nigeria (ISAN), Sunny Nwosu, commended the company’s performance and returns on investment. He, however, advised that the company should consider a bonus issue to shareholders because of the robust statutory reserves and regulatory requirement.
Also speaking, the President of Nigeria Shareholders Solidarity Association, Mr. Matthew Akinlade, said the performance was a very good one based on the financial indices.
Another shareholder, Mr. Adebayo Adeleke, commended the company for weathering the storm of 2020 and its challenging operating environment. He praised the company for the foresight of having a holding company which now enables it to make investment decisions easily.
The shareholders approved the final dividend of 55 kobo per share, bringing the total dividend to 65 kobo, having paid an interim dividend of 10 kobo last year.
Addressing the shareholders at the meeting, the Chairman of the board of directors, Dr. (Mrs.) Omobola Johnson, said “I am delighted to report that our company recorded significant successes during the 2020 financial year despite the challenging operating environment, a fallout of the global Covid-19 pandemic and the resulting weak oil earnings, Naira devaluation and high inflation.”
She noted that the successes recorded by the company in 2020 is an affirmation of the robustness of the group’s business model, which allowed it to quickly adapt to the fast-changing environment, the astute leadership of the company supported by energetic employees using technology to efficiently provide prompt services to clients.
According to her, despite the challenges faced during the year under review, the group more than doubled its profits by posting a profit after tax of N12.69 billion as against N6.01 achieved in 2019.