By Peter OBIORA investadvocate

Lagos (INVESTADVOCATE) – Investors of Abbey Building Society Plc operating in the Mortgage Sector of the Nigerian Stock Exchange (NSE) will enjoy a 25 percent (25%) increase in dividend payout for the year 2010 Financial Year End (FYE).

This is coming on the heels of the Board meeting held on April 07, 2011, where the Board of Directors resolved that a dividend of 5 kobo per share be recommended for payment subject to the approval of members at the next Annual General Meeting (AGM) of the Company.

To pay investors of the Company a 25% dividend increase in the review period, Abbey in year 2009 paid a dividend of 4 kobo compared to the recommended 5 kobo for year 2010 end; indicating an increase of 25%.

At the Firms 18^th AGM held June 2010, Abbey shareholders sought for a bonus from the Primary Mortgage Institution (PMI) following the 4 Kobo dividend paid.

Sir Sunny Nwosu, National Chairman Independent Shareholders Association of Nigerian (ISAN) on behalf of shareholders of Company made the bonus request.

“We are requesting that the Company at least give us bonus; which will be good for us the shareholders” he said.

In his response, Ifeanyi Ochonogor, Chairman of the Mortgage Company assured that their demand for bonus issue would be met as the Company’s fortune improves.

“It will be a good thing if we issue bonus to our shareholders; but as the Company improves in its operations, we will definitely do that” he affirmed.

A review of the Firm’s Third Quarter Result July 2010 obtained by investadvocate showed that Abbey recorded a Profit After Tax (PAT) decline from N440.200 million in Q3 of year 2009 to N348.539 million in the review period of year 2010 indicating a loss of 20.82%.

While Profit Before Tax (PBT) also dropped from N503.353 million in year 2009 to N400.620 million in the review period of year 2010 showing a drop of 25.64 percent (25.64%).

Abbey recorded a Turnover of N1.164 billion in the Q3 of year 2010 compared to N1.126 billion recorded in the same period of year 2009 representing a slight increase of 3.37 percent (3.37%) in the period under review.

However, as at the time of filling in this Report, investadvocate is yet to obtain the Mortgage Company’s Audited Result for the year ended 2010.

As earlier reported, Abbey had notified the Nigerian Stock Exchange (NSE) November 29 2010 that it is to shore up its Capital Base to the tune of N20 billion.

 

Following an Extraordinary General Meeting (EGM) held Wednesday November 24 2010; shareholders of the Company authorised its Board of Director (BOD) to raise the fund whether by way of   Public Offering, Placing, Rights Issue, Book Building process or other methods.

This the shareholders affirmed should be by way of issuance of shares, convertible or non convertible loans, stock, medium term notes, bonds or other securities, in such tranches, series or proportions, at such coupon or interest rates, within such maturity periods and on such other terms and conditions including the provision of security for payment, as the Directors may deem fit or determine, subject to obtaining the approvals of relevant regulatory authorities.