By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Vono Products Plc Wednesday said it will utilise 50 percent (50%) about N402 million of the proposed N840 million Rights Issue proceeds on Loan repayment.

Titiola Bakare, Managing Director (MD) of Vono Products said this at the Company’s “Facts Behind the Figures” at the Nigerian Stock Exchange (NSE) in Lagos Nigeria.

Apart from this, Bakare said Vono Products intends to use proceeds from its N840 million recapitalisation drive to strengthen its operations and pursue its expansion programme.

“The Firm intends to engage in Factory upgrade in the area of Plant, services and physical infrastructure. Another one is the procurement of 500 KVA Power Generator” she said.

Other utilisation of the Rights Issue proceeds include creation of Modern Information Technology (IT) architecture, working Capital and paying down debts.

Apart from the 50% of the N840 million Rights proceeds on Loan Repayment, 19% (N150 million) would be used on Trade Creditors, 10% (N80 million) is intended to be used on Statutories (Taxes and Others).

On Factory and IT upgrade, Vono Products is seeking to use 10% (N106 million) of the recapitalisation proceeds and N65. 372 million about 8% as Working Capital respectively; making it a total of N803, 372 million.

To raise the N840 million, Vono Products will issue 525 million Ordinary Shares of 50 Kobo each at N1.60 per share.

On the Company’s Five Years Profit Forecast, it projected a Profit Before Tax (PBT) of N127 million in 2012, N128 million in 2013, N161 million in 2014, N186 million 2015 and N223 million in 2016 respectively.

While Profit After Tax (PAT) is expected to grow from N86.360 million in year 2012 to N151.772 million in year 2016; indicating an expected growth of 75.74% in the forecast period.

Turnover is also expected to increase from N1.320 billion in year 2012 to N2.304 billion in year 2016; showing an increase of 74.57% in the projected period.

“Gross earnings will grow by 65% over 2011 for the year ending December 31,2012 ,10% over 2012 for the year 2013, 15% over 2013 for the year 2014, 15% over 2014 for the year 2015 and 20% over 2015 in 2016.

Operating expenses are projected 15% adjusting for inflation for the financial years ending December 31,2012, 2013,2014,2015 and 2016 respectively.

Taxation (comprising of income and education taxes) is projected at 32%.

Dividend will be paid out in 2014” Bakare said.

Click to download full presentation of Facts Behind the Figures by Vono Products Plc