Business

Caverton Offshore Support Group Plc reappoints Aderemi Makanjuola as Chairman

The Board of Directors of Caverton Offshore Support Group Plc has reappointed Mr. Aderemi Makanjuola as Chairman.

His reappointment was a consensus decision by shareholders of the company at its 12th Annual General Meeting (AGM) held in Lagos on Thursday.

The Board also brought back two other directors, Bashiru Bakare and Mallam Bello Gwandu to serve for another tenure.

PriceWaterHouseCoopers was appointed as new external Auditor for the company replacing Ernst and Young (EY) which retired as Auditor to the company at the AGM.

The company increased its total assets portfolio by 2.6 percent to N67.5billion from N65.8billion in 2019.

Mr. Makunjuola in his speech acknowledged the impact of the Covid-19 pandemic on the Aviation industry and particularly on the financial performance of Caverton Plc.

In his words: “ Like other business operations in Nigeria, our Company had to battle with the lockdowns and travel restrictions due to the Covid-19 pandemic which resulted to exceptionally low business activities during the year thus, affected our operating bottom-line.”

In the the period under review, the total assets of the Company increased from N65.8billion in 2019 to N67.5billion, representing an increase of 2.6 percent Caverton Group revenue decreased by 8 percent from N34. 98billion in 2019 to N32.2billion in 2020 while Gross Profit also dropped to N13.58billion in the review period by 8 percent from N14.7billion in 2019.

Profit before Tax dropped by 83 percent from N7.24billion in 2019 to N1. 26billion while After Tax, Profit dropped by 73 percent to N1.18billion from N4.38billion in 2019.

Earnings per Share (EPS) decreased from 129kobo in 2019 to 36kobo in 2020 out of which the Company paid out 10kobo representing about 28 percent

Also, the shareholders of the company who were represented by leaders of five shareholders’ groups commended the Board and Management of Caverton for offering them a 10kobo per share dividend for the financial year ended December 31, 2020.

They stated that the robust dividend policy of the company had made that possible.

Chief Sunny Nwosu, a shareholder said, the company has a future going by the magnitude of investment it is doing at the airports. “Shareholders appreciate what you are doing meanwhile we need more dividend.

The 10k you are paying is good but it is not enough. Mr. Boniface Okezie, National Chairman, Progressives Shareholders Association also commended the company for the dividend ,noting, “This is not too bad a result and dividend considering the impact of COVID-19 on the industry in 2020.

Mr. Alex Adio, Chairman, Dynamics Shareholders Association also commended the company for its robust dividend policy.

Responding to accolades from shareholders, Makanjuola explained that the Board offered to pay 10kobo per 50k ordinary share against the advice of the internal auditors for it to pay 5kobo and retain the remaining cash to grow the company.

“In view of our policy to grow shareholders’ value and returns, despite the impact of the Covid-19 pandemic on the Group’s overall performance, the Board of Directors of your company is pleased to recommend for your approval a dividend of 10k per 50k ordinary share in respect of the 2020 financial year,” he said.

About the author

Joseph Chukwuma Oputa

Joseph Chukwuma Oputa is the Managing Editor of Maslow Businessnews and Physicians News publications published by Maslow Business News Publications, Lagos, Nigeria.

Joseph Oputa is a proud Alumnus of the prestigious Nigerian Institute of Journalism, Lagos and Federal Polytechnic, Bida, Niger State.

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