LAGOS – May & Baker Nigeria PLC on Fiday announced plans to raise three billion naira through rights issue and special placement to shore up its working capital.
Mr Nnamdi Okafor, its Managing Director, disclosed this at the stakeholders’ facility tour of the company in Ota, Ogun.
Okafor said that the recapitalisation would enable the company to increase its operational capital and strengthen its global competitiveness as well as ability to deliver value to shareholders.
He said that the company, had in the last three years, embarked on capital investment with the aim of meeting financial needs of the company.
The managing director said that the recapitalisation details were undergoing the scrutiny company’s board.
He said that cost of financing the company’s business with borrowed funds was becoming unbearable, stressing that there was urgent need for fresh funds injection through the rights issue and special placement.
Okafor said that the additional capital would make the company stronger to face the challenges of the nation’s harsh business environment.
According to him, the recapitalisation will improve the company’s profitability and strengthen demand for its products.
He said that the company borrowed money to complete the Pharma Centre factory which cost four billion naira from the estimated cost of N1.8 billion.
Okafor, however, said that the company had strategised to sustain revenue growth through aggressive marketing and product development initiatives.
He said that the company would invest in brand building, shop for new international business partnership and strengthen its bio-vaccines products.
Okafor said that the company would consolidate its pharmaceutical manufacturing operations to improve operational efficiency and reduce overhead cost of running two separate factories.
The company posted a turnover of N6.37 billion in its financial year ended Dec. 31 against the N5.67 billion achieved in the comparative period in 2012.
Profit before tax stood at N11.37 million compared with N44.52 million recorded in 2012.
The company also posted a loss after tax of N103.09 million in contrast with a profit after tax of N75.94 million declared in 2012. (NAN)
