UAC of Nigeria Plc has said that its plans to make major acquisitions this year would help to propel its business activities in the next few years.

The Chairman of the company, Senator Udo Udoma, announced this during its annual general meeting in Lagos on Wednesday.

He stated tha its strategic partnership with Tiger Brands Limited in South Africa would also help the company in achieving its major financial forecasts for the year 2012.

He said, “Our company’s strategy is to target topline growth that significantly exceeds Nigeria’s annual Gross Domestic Product growth rate. We will build our existing businesses and make related acquisitions to deliver growth.

“Also, it is important to note that our strategic partnership with Tiger Brands will complete the various operational reviews launched in 2011 and we are poised to expand the market and refresh product offerings.”

Udoma noted that the re-inauguration of Mr. Bigg’s was well received by customers, adding, “The move has been further consolidated with the adoption of a full franchise model for the restaurants operation beginning in 2012.”

He noted that despite the challenging business environment, the company recorded a top-line growth of 21.6 per cent from N52.3bn in 2010 to N63.6bn in 2011, resulting largely from the volume growth achieved in Grand Cereals, UAC Foods Limited and UACN Property Development Company Plc.

Its profit after tax rose by N4.7bn or 85 per cent from N5.45bn in 2010 to N10.2bn, while retained profit grew from N3.19bn to N7.30bn.

Its result also showed that shareholders’ funds increased by N4.6bn or 12.6 per cent from N36.41bn recorded in 2010, to N41.01bn in the year under consideration.

Thus, the company declared a dividend of N1.50 per share to its investors, representing a rise by 36 per cent compared to N1.10 per share declared for the 2010 financial year.

The President, Nigeria Shareholders Solidarity Association, Chief Timothy Adesiyan, noted that it was important for the company to come up with a consistent dividend policy and adhere to it strictly.

This, he stated, would assist the company in making key decisions concerning returns to its shareholders.

He, however, commended the Board of Directors for the N1.20 dividend payout, adding that this was a welcome development in the era of low dividends.

Another shareholder, Mr. Theophilus Adeboye, advised the company to ensure that its subsidiaries outside the country were performing well.

He noted that the company’s Ghana business did not seem to be performing well, and urged the board to take concrete steps towards bringing the business back on its proper footing.

In his response, the Chairman of the company, Senator Udo Udoma, said that UACN was positioning itself to invest in the future.

Source: Punch/Udeme Ekwere