Cable Manufacturer Cutix to Pay Dividend, Bonus to Employees
Nigerian cable manufacturers, Cutix Plc, has announced a plan to pay dividends to its shareholders, and performance bonuses to employees in the third quarter of its financial year 2022, according to a regulatory document.
According to its audited report for the financial year 2021, the company staff strength reduced to 235 from 255. The company expects its revenue for the third quarter of 2022 to cross N1.8 billion, 9% of which translates to profit.
Its cost of sales accounts for 69% of total revenue while distribution and administrative expenses including tax provision taking more than 31% of the inflow.
According to the company’s forecast, cash and cash equivalent at the end of the period is expected to print at N60 million. Traded at N4.90 per on the local bourse on 1.76 Billion shares outstanding, the cable company which has continued to play dominance in the industry was valued at N8.54 billion.
In its audited financial statement for 2021, the company’s revenue printed at N6.749 billion from N5.025 billion in the comparable period in 2020. Profit after tax printed at N605 million as earnings per share settled at N30.83, up from N22.32 a year earlier.
Cable Manufacturer Cutix to Pay Dividend, Bonus to Employees
In the period, the company recommended 15 kobo as a dividend payment to shareholders. Major shareholders in the company include Uzodike Gilbert Obiajulu, R.C Onyeje and Company and others with combined shareholding standing at 39.35% as of July 2021.
Other directors, including the Chief Executive Officer, own 4.86% as at the period with a free float that printed at 55.79% as of April this year. Cutix assumes that the economy will continue to improve after it shrank in 2020 due to the impact of Covid-19, as several measures have been put in place by the Federal Government to address it.
“The revenue for third quarter 2022 will not change when compared with 2nd quarter 2022 revenue projection”, it said.
The company projected that its raw material cost to sales will be about 60% of third-quarter 2022 total revenue. It also added that finance costs will remain the same with the value projected for the second quarter of 2022.
Distribution cost will remain the same for 3rd quarter 2022 when compared to 2nd quarter 2022 projection, it said. The company added that advert and promo costs will not change in the 3rd quarter of 2022 when compared to the previous quarter.
“We anticipate revenue of N1.8 billion in the third quarter of 2022. Profit before tax for the 3rd quarter 2022 is estimated to be N260.6million based on the assumptions”
The management sees cash receipts from customers at about 95% of its total revenue.
“We will continue the repayment of term loan obtained from Bank of Industry within the quarter. We anticipate a significant decrease in investing activities in the third quarter of FY 2022”, Cutix added.
The company will pay dividends to her shareholders within the quarter, also anticipates payment of bonuses to her employees within the quarter. It however emphasises that net cash and bank balances in third Quarter 2022 will be lower when compared to second quarter 2022. #Cable Manufacturer Cutix to Pay Dividend, Bonus to Employees
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