C &I Leasing Plc plans to inject fresh capital into its operations to increase future performance.
The Chairman, C & I Leasing, Chief Chukwuma Okolo, disclosed this at the 28th Annual General Meeting of the company, which held in Lagos on Monday.
Okolo stated that the fresh capital would be through rights issue and conversion of Aureos $10m loan stock into equity before the end of the year.
He revealed that the company’s gross earnings grew by 32 per cent, while that of the group grew by 25 per cent.
Okolo said, “In comparison with 2017 performance, the group’s profit before tax grew by 22 per cent from N1.3bn to N1.5bn, while the company recorded an increase in profit before tax by 32 per cent from N506.9m to N668.3m in 2018.
“Also, the group’s profit after tax grew by nine per cent from N1.1bn to N1.2bn in 2018 while the company’s profit after tax decreased by three per cent from N451.3m in 2017 to N437.5m in 2018 due to the impact of back duty tax.”
According to him, the performance is a result of increased operational efficiency, cost optimisation strategies and enhanced service delivery across the three major business lines, which attest to the firm’s commitment to sustainable growth and undisputed market leadership in its chosen business. Okolo said a dividend of N104.381m was recommended for payment for the 2018 financial year.
The Managing Director/Chief Executive Officer, C & I Leasing, Mr Andrew Otike-Odibi, said the business was growing at a fast rate and needed equity funding support.
He said the management was working with financial advisers to look at different options they could use to raise equity.
“One, it might be a rights issue. So, we may be calling on shareholders very soon to support the business by taking up your rights and getting capital into the business to help it grow to new heights,” Otike-Odibi said.
According to him, the outlook for 2019 remains positive for the company, despite it being an election year.
He said, “In 2019, we plan to consolidate the progress made in the previous years by delivering a strong and sustainable performance that enhances optimal returns to shareholders.”
