By Eromosele Abiodun, 06.20.2010 

 

Chemical and Allied Products Plc (CAP Plc), has announced a 15 per cent drop in post-tax profit for the year ended December 31, 2009.The company’s post- tax profit fell by 15 per cent from N538.16 million in 2008 to N457.10 million in 2009, while profit after tax also dropped by 54 per cent from N735.64million to N340.98million in 2009.Turnover however, rose by 13 per cent, from  of N2.68 billion to N3.03 billion during the period under review. 

 

Presenting the results of the company to shareholders, at its 45th Annual General Meeting (AGM), Chairman, CAP, Mr. Larry Ettah, said the turbulence created by the global economic downturn and the domestic financial crisis was yet to abate. He stressed that the situation notwithstanding, great opportunities for business growth abound in the economy. The CAP boss said: “As part of our desire to sustain our brand positioning, we had to source higher quality and more expensive calcium carbonate offshore. We are working on building the local capacity of our suppliers to meet international benchmark. 

 

“Additionally, as a result of FIRS tax audit of the company for 2001 to 2006 accounting years, we have had to provide for a back duty assessment of N176 million. The major issues in the tax audit were the non-collection of VAT on the pharmaceutical products as well as surplus fixed assets disposed.”On the company’s future outlook, he said: “Our outlook with AkzoNobel, our technical partners continues to be of immense benefit to the company in the areas of colour technology and know-how. 

 

Through our in-store-tinting, offering a range of 12,000 colours, we will continue to create and sustain value for our stakeholders through focused investment and development of our brands, people, and processes, and to make our products and services environmentally friendly.” 

 

Shareholders of company, endorsed the dividend recommended by the board of directors of the company and called on their management to do what it can to improve on their return in the years ahead. The shareholders approved a total of N336 million, representing N1.60 for every ordinary share of 50 kobo, as well as a scrip issue of one for three for the period ended December 31, 2009.

 

(Source:ThisDay)