By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Kajola Integrated Investment Plc Thursday said it will pay its investors a better dividend from 2013.

Professor Wale Omole, Chairman of the Company said this at the Company’s fourth Annual General Meeting (AGM) held in Lagos Nigeria.

According to him, Kajola is working at making a good Profit in order to pay a sustainable dividend to its shareholders.

“When you are growing a Company, little profit is not good enough, it’s better to plough that little profit back into strengthening your operational base; which will enable you to make sustainable dividend when you are doing it; because you made more profit” he said.

Professor Omole said the reason the Company has not paid dividend for a while now is due to the numerous profitable projects Kajola has undertaken in the review period.

“It’s just simple mathematical equation. If you give all you have out, what are you going to work with? So they will understand that’s what we are doing, we are building a Company and a profitable one at that” he said.

Professor Omole affirmed that Kajola is always making profit, and not running at a Loss, mentioning the various projects the Company has embarked upon to achieve profitability and pay better dividend in future to its shareholders starting from next year.

“We will offer shareholders dividend that will mean something to them and make them happy, as Kajola, we have to give them what will be the best for them. That’s what we plan, the Board has a responsibility to be interested in their Shareholders, how they manage the Returns given to them in form of dividend payout; that’s why we are Kajola, we may not look good now, but since we are not losing money, we are using it to work for them” he said.

The Chairman of the Company further affirmed that they have invested more than half of their Total Earnings, into Kajola’s Terrace Apartments in Ikeja GRA, while reconstruction work is ongoing at the Company’s Property in Yaba for the take-off of Kajola Confectionary.

“Our Property and Bakery will come on board very soon, it will be completed by next year, So it’s better to operate carefully, diligently; calculating your risk and knowing that it’s not just once and for all thing, it’s a sustainability; so pretty soon, it will be getting better” Omole said.

In the same vein, Adelani Ajanaku, Managing Director/Chief executive Officer (MD/CEO) highlighted on the projects the Company has embarked upon in order to make Profit and pay better dividend to its shareholders henceforth.

“The process of building a Company is not just a stop gap arrangement, the GRA Project has begun and we are believing that the project should be completed by middle of year 2013 and before this period, a lot of clients would have signified interest, it’s a project of well over N1.5 billion and we believe significantly that we should be able to make a good income from it” he said.

Ajanaku also disclosed that Kajola is investing a huge amount of money on it’s Ultra Modern Bakery in Yaba, Lagos. “Don’t forget that it is a business of a Cash Cow, they are products that are needed and are consumed on a daily basis, what is important is once that we can guarantee good quality, branding marketability and advertisement, and lower cost, I can assure you that we will begin to make good money from that. Thereafter, we can now plan how to make good our promise of paying good dividend to our investors. We are very sure that as from next year, we should be able to significantly pay good dividend to our shareholders” he said.

A review of the Financial Report of the Company as at December 31 2011 shows that Gross Earnings increased from N122.784 million in year 2010 to N138.609 million in the review period of 2011; indicating an increase of 12.89 percent (12.89%).

Profit After Tax (PAT) also increased from N5.399 million in year 2012 end to  N7.536 million in year 2011; showing an increase of 39.57%.

Also, a review of the Half Year Unaudited Accounts for 2012 of the Company, showed a Gross Earnings of N56.133 million and PBT of N11.263 million in the Q2 of year 2012 compared to N3.768 million in the same period of year 2011; indicating an increase in PBT of 198.91 percent (198.91%) in the review period.