Livestock Feeds Plc sets to raise N2bn capital to boost expansion drive

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Livestock Feeds Plc

From Benjamin a ameh, Lagos

The steadily growth and performance of the company over the few past years can only be sustained with sufficient working capital and expansion of capacities to meet up with our growth expectations. Thus, the board proposed a rights issue for shareholders’ endorsement to boost the capital base of the company.

Speaking during the company annual general meeting (AGM) held on Wednesday in Lagos, the Chairman, Livestock feeds plc, Larry Ephraim Ettah said the authorized share capital of two billion ordinary shares value N2billion will be offering for existing shareholders through a rights issue of one ordinary share per N1.00 basis to enable your company meet working capital and capacity expansion requirements.

Ettah further said we pledge our continuous commitment to meeting and indeed surpassing your expectations in the coming years.

The Chairman stated that despite the growth challenges of the poultry industry your company recorded revenue of N7.9bn, with 30percent increase over 2013. Also a growth of 42 percent was recorded in the profit before tax of N402m over 2013 figure of N282m. profit after tax of N254m was recorded, a growth of 21 percent over 2013.

He pointed out that the performance for the year can be attributed to many factors among which are the installation of a 12mt/hr milling plant in Ikeja to boost production and meet the growing demand in the region, aggressive cost control, improvement in operational efficiency and synergy derived from collaboration with other companies within the UAC group.

“As a result of the respectable performance in 2014, the board of directors in the company is pleased to recommend four approval a dividend of 10 kobo per ordinary share of 50 kobo each.

“The sporadic outbreak of the avian influenza flu in the first week of the year was a major setback to the poultry industry as it further depressed the already shrunken poultry population. It is however encouraging to note that disease in gradually being contained as we enter the second quarter of the year.

Meanwhile, livestock company is set substantially grow its revenue base by consolidating the marketing presence of its fish feed brand. ’Aquamax’ was officially introduced to the market in fourth quarter of 3014. We are positioned to leverage on opportunities that exist in the aquaculture subsector of the economy.

“Agriculture holds the key to a strong foundation our economy. As a nation, our drive towards sustainable food security lies in transforming agriculture into a profitable and competitive endeavour that can attract our best brands. As a company, we have through aquamax, demonstrated that fish farmers have a new dependable partner.

“Strategic sourcing and stockpiling of our critical raw materials are key for success in feed milling business. To this end your company is embarking on silos installation in our Aba mill in order to enhance our storage capacity and thus ensure continuous product availability at affordable price to farmers throughout the year.

Ettah disclosed that we have embarked on augmentation via importation of soya meal to complement local sourcing to avoid the ‘storages’ experienced last year when the product suddenly became unavailable in the market. We equally plan to install an extruder machine for soya bean processing at our ikeja mill within the further support our capacity to manage stock outs arising scarcity of soya products.

The principal activity of the company is agriculture, engaged in the manufacturing an marketing of livestock feeds along with concentrates. The company incorporated on March20, 1963 and listed on the Nigerian stock exchange in 1978  now a subsidiary of UAC plc.


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