By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)- ICT sector listed firm, Computer Warehouse Group Plc (CWG) said on Wednesday its offering shareholders of the company a two (2) kobo per share dividend in the 2014 audited year end, according to the company in its corporate action with the Nigerian Stock Exchange (NSE).
A review of the dividend payout of the company shows that in 2013 end, the ICT firm paid a dividend of eight (8) kobo per share compared to the two (2) kobo proposed in the review period of 2014.
However, CWG in its 2012 audited year end paid a six (6) kobo per share dividend to its investors compared to 8 kobo paid in 2013; indicating a 33 percent increase.
According to the company, qualification date is June 5, 2015 while closure of register is June 8 to June 12 2015.
CWG says payment date has been scheduled for July 1, 2015 after its annual general meeting (AGM) on June 25, 2015 in Lagos Nigeria.
The ICT firm had on March 30, 2015 issued a profit warning for 2014 financial year which it affirmed are expected to record significant earnings shortfalls as compared to 2013 financial year.
”Following the preliminary review of its consolidated draft management accounts, the board of directors of Computer Warehouse Group Plc(“the Group”) wishes to inform the shareholders and potential investors that the audited 2014 full year results of the Group are expected to record significant earnings shortfalls as compared to 2013 FY,” CWG said.
CWG had disclosed that the earnings shortfalls were principally driven by one-off provision for currency depreciation of not less than N380 million, following the exemption of the Group’s participation from the official foreign exchange market (where it hitherto sourced dollars for its imports) pursuant to a directive of the Central Bank of Nigeria (CBN) (which affected information technology businesses generally), as well as a subsequent devaluation of the naira during the period under review.
“Shareholders and potential investors are advised to note that exchange rate fluctuations are expected to persist in 2015. In addition, the ongoing electoral processes scheduled to be completed by Q2 2015, are also expected to take significant toll on macroeconomic indices, with resulting impact on business operations for the remaining part of the year,” the company added.
The ICT firm said its management anticipates improved performance on the back of its current CWG2.0 initiatives. “These initiatives are expected to significantly reduce the company’s exposure to foreign components for its services,” CWG affirmed.
A review of the 2014 audited yearend report of the company shows that revenue declined 26 percent to N15.3 billion from N20.6 billion recorded a year earlier.
Similarly, gross profit fell by 27 percent from N3.9 billion in 2013 to N3.0 billion in the review period, as a result of the harsh operating environment and the falling oil prices, which slowed down economic activities during the year.
Profit before tax (PBT) dipped by 90.7 percent to N57.64 million in 2014 from N618.46 million in 2013.
Profit after tax (PAT) plunged by 91.4 percent from N612.85 million in 2013 to N52.80 million in 2014. Also, earnings per share (EPS) dropped from 24 kobo to 2.0 kobo in the review period.
