Chams reassures as shareholders get N140m dividend

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Chams reassures as shareholders get N140m dividend

 
 

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The board of Chams Plc has reassured shareholders that the information and communications technology (ICT) company has been repositioned to sustain its recovery and deliver continuous returns to shareholders.

Chams declared its first dividend payment of N140 million after it recovered from its long-running losing streak with a net profit after tax of N385 million. At the annual general meeting in Lagos, shareholders approved the payment of a dividend per share of 3.0 kobo.

Directors of the company said it would continue to leverage on the restructuring of its balance sheet to expand income stream, boost performance indicators and sustain competitive edge.

Chairman, Chams Plc, Dr Dere Awosika assured that the company had been well positioned to enhance shareholders’ value with the successful restructuring of its finances, which laid a solid foundation for performance and competitiveness.

According to her, on the strength of the new outlook, there are more opportunities for effective and efficient implementation of the company’s growth strategy.

“We plan to consolidate on the progress made in the previous years to deliver a strong and sustainable performance that enhances returns to our shareholders. We are marching forward in the year with confidence and optimism, knowing fully that our businesses have been strategically positioned to take advantage of key opportunities as we stay on course in the execution of our growth strategy,” Awosika said.

Group Managing Director, Chams Plc, Mr Femi Williams said the improved performance reflected the success of the company’s restructuring programme noting that Chams’ main goal would focus on increase volume of business and significantly improve expense ratio to secure the company’s competitiveness.

According to him, the company recorded a plausible financial success in 2018, despite the losses made in 2017.

The audited report and accounts of the company for the year ended December 31, 2018 showed total revenue of N3.01 billion in 2018 compared with N1.95 recorded in 2017, an increase of 54 per cent.

Gross profit increased by five per cent to N786 million in 2018 as against N743 million in 2017. The bottom-line improved significantly from a loss of N1.2 billion in 2017 to a profit of N380 million in 2018.

“This advancement in profit and capital is an attestation to the credibility of our commitment and our business model,” Williams said.

Shareholders commended the board and management of the company on its turnaround urging them to sustain the performance in the years ahead.

A shareholder, Mr. Michael Cole, said the dividend payment was a good sign of recovery, especially given the background of the company.

“I am impressed with the performance of the company as shown in the result and I pray God will give the management and board the strength to do more,” Cole said.

A shareholders’ leader and activist, Mr Gbadebo Olatokunbo also expressed satisfaction with the performance of the company urging it to intensify efforts in its leading role in deploying technology to boost operations.

“I appreciate the performance of the company despite the tough operating environment. Nigeria today is catching on with the global trend in digitalizing everything. Most businesses require technology to thrive and since we are already well positioned in the company, there is assurance that the company should be able to do more in the next result,” said Olatokunbo.