By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE) – Shareholders of Courteville Business Solutions Plc, operating in the Commercial/Services Sector of the Nigerian Stock Exchange (NSE) Tuesday commended the Board and Management of the Company for consistent dividend payment to investors at its seventh (7th) Annual General Meeting (AGM) held in Lagos Nigeria.
According to Sir Sunny Nwosu, National Coordinator Independent Shareholders Association of Nigeria (ISAN), it’s commendable that Courteville has consistently rewarded investors with consistent dividend; but called for enhanced dividend.
”I am happy about their policy that something goes to the shareholders; but I am beginning to be very uncomfortable about it; because it’s becoming too conservative; extra one (1) Kobo every year, they should try and increase it the more,” he said.
He advised the Board of Courteville to review their dividend policy in order to endear the Company to shareholders.
In the same vein, the shareholders urged the Company to reward then with bonus shares; apart from the cash dividend.
In his reaction, Bola Akindele, Group Managing Director (GMD) of Courteville said conservatism has helped the Company achieve whatever they have achieved so far.
According to him, the Company has not been too extravagant in spending money in getting the business done, ”we have just tried to maintain the status of being reasonable in the way we conduct our business. We will pay dividend according to the profit made by the company, we will also consider the position of the Company’s Balance Sheet at the end of each financial year before proposing any dividend,” he said.
Akindele further affirmed that the Company will not borrow to pay dividend; but rather do so within the profit available to it, with time enhanced dividend will be paid considering the Company,s performance and as the Country’s economic situation improves.
”When the economy and business of Courteville improves; then investors will reward investors with enhanced dividends,” he said.
At the AGM, the Board of the Company approved the proposed 5 Kobo dividend to shareholders of Courteville for year 2011 end.
The 5 Kobo dividend approved by the Board of Courteville is an increase of 11.11 percent (11.11%) in the review period.
To increase its dividend payout to investors of the Company by 11.11%, Courteville in year 2010 end paid a 4.5 Kobo dividend compared to 5 Kobo to be paid for year 2011 end.
However, Akindele affirmed that by Friday July 20 2012, the dividend warrants will be ready for dispatch to shareholders for immediate payment and not the August 01 2012 earlier announced payment date.
As earlier reported, since listing on the Floor of the Nigeria’s Exchange in year 2008, Courteville has consistently paid investors of the Company a higher dividend.
The Company had so far paid 0.4 Kobo dividend for years 2009 and 2008 respectively, a dividend of 4.5 Kobo in year 2010 and now have approved a 5 Kobo dividend living up to its promise of paying a higher dividend on a consistent basis.
A review of the Financial Report for year 2011 end, Courteville increased its Profit by 36.7% as it posted a Profit After Tax (PAT) of N245.352 million in year 2011 end compared to N179.427 million recorded in year 2010 end.
Also, Profit Before Tax (PBT) grew from N231.108 million in year 2010 end compared to N303.635 million in year 2011 end; indicating a growth of 31.4% in the review period.
Turnover also increased from N627.703 million in year 2010 end compared to N855.600 million in the Audited Report for the period ended December 31 2011; showing an increase of 36.3%.
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