McNichols Opens Right Issues for Subscription
In a bid to raise additional capital for the company’s expansion programme, McNichols Consolidated Plc has offered shareholders opportunity to acquire more shares via right issues, Futureview Financial Services Limited announced in an update sent to clients.
The investment firm announced the opening of 531,242,609 ordinary shares Right Issue Programme for McNichols Consolidated Plc with a nominal value of N0.50 each.
The company priced the offer at N0.50 per share on the basis of seventeen ordinary shares for every twenty-three ordinary shares held as of September 16, 2022. The Right Issue Programme would open on August 9, 2023 and close on August 31, 2023.
McNichols specializes in the production and sale of food and beverage products. The Food Products segment encompasses custard products, farm produce, and offerings from the pancake house.
The Beverages segment caters to sugar products, chocolate-flavored milk, tea, and various milk-based products. These goods are distributed through a network of reputable distributors across Nigeria. In 2022, the Company demonstrated significant growth in its financial performance across key metrics, Futureview told investors in an email.
At the top line, the company’s revenues surged by 8% to reach N834.02 million, a notable increase from the N773.56 million reported in the financial year 2021.
This growth was primarily fueled by a substantial 68% increase in turnover within the beverage segment, analysts at Futureview said in a review.The investment firm noted that McNichols enhanced supply chain management led to cost savings and streamlined operations, contributing to a 14% rise in operating profit during 2022.
The company’s profit before tax saw a remarkable 45% increase, rising from N17.58 million in 2021 to N25.57 million. It net profit also experienced healthy growth, ascending by 38% from N14.30 million in FY 2021 to N19.76 million in 2022.
Aligned with its overarching vision and as a crucial component of its strategic business funding initiative, McNichols Consolidated Plc is seeking to raise equity capital through this Right Issue.
Futureview explained that the primary objective behind this capital infusion is to facilitate the expansion of its production capacity, ensuring the company can effectively address the demands of its markets while enhancing its distribution channels. #McNichols Opens Right Issues for Subscription