Ellah Lakes Works to Improve Cash Flow, Pay Dividends

May 27, 2021
Ellah Lakes

By Dipo Olowookere

Shareholders of Ellah Lakes Plc may soon begin to get a reward for their loyalty and investment in the company as the board and management are working hard to make them smile.

Ellah Lakes is one company on the exchange struggling to remain afloat and at the moment, it is undergoing a transformation after a change of management.

The new team led by Mr Chuka Mordi is optimistic that the business will return to profitability and reposition itself as a leading agribusiness player in West Africa.

Recently, the firm sealed an agreement with the Ondo State Government for the joint development and management of 5,000 hectares of land for the cultivation of oil palm and cassava.

On Wednesday, the management of Ellah Lakes was at the Nigerian Exchange (NGX) Limited to present its 2019/2020 financial year to capital market stakeholders on the Facts Behind the Figures platform.

At the virtual event hosted by the Divisional Head of Listings Business at NGX, Mr Olumide Bolumole, the Chief Agronomist at Ellah Lakes, Mr Jamie Rixton, said the main focus of the management at the moment is to improve the cash flow of the organisation and ultimately start paying dividends to shareholders.

In his contribution, the MD of Ellah Lakes, Mr Mordi said the company is also “working together with our advisers and the exchange on ensuring that the required free float percentage is achieved in the shortest possible time.”

He assured shareholders that efforts would be made to give them value for their money, noting that, “From a corporate governance point of view, we hold ourselves to high standards of governance as expected by our shareholders and regulator, and as is befitting of our vision to become the leading supplier of sustainable edible oils and starch to the FMCG industry in Nigeria, particularly, and West Africa, in general.”

“Prior to 2019, Ellah Lakes Plc was an insolvent entity on NGX. Later that year, Telluria Ltd completed a reverse acquisition of the company, recapitalising the balance sheet and repositioning the business for growth with a new board and management team.

“Today, we are undergoing a restructuring exercise, which will return the business to profitability and reposition it as a leading agribusiness player across West Africa,” he assured.

Earlier in his remarks, Mr Bolumole commended the management for the progress recorded so far, adding that he was impressed that the team found it worthy to update the market about their plans.

“Given that the market is driven by timely, relevant, and accurate information, interactions with the market are vital for transparency, price discovery and overall performance of securities. I must, therefore, commend the board and management of Ellah Lakes for partaking in this Facts Behind the Figures,” he said.

“Given the invaluable contributions of the agricultural sector to the Nigerian economy, Ellah Lakes Plc continues to exploit the opportunities in the sector.

“The company’s recent agreement with the Ondo State Government for the joint development and management of 5,000 hectares of land for the cultivation of oil palm and cassava highlights its drive and commitment towards creating value for shareholders,” Mr Bolumole added.

“On our part at NGX, we continue to implement policies aimed at strengthening the corporate governance of our listed companies and providing products, services and platforms that are aligned to issuers’ and investors’ requirements in a fair and orderly market,” the NGX top shot promised.

The NGX Fact Behind The Figures presentation provides our listed companies with the opportunity to inform the market of their financial performance as well as other strategic and operational developments.

Since the activation of remote trading and working from home in March 2020, NGX has transitioned this engagement into a virtual session thereby opening up the platform to more participants across the capital market ecosystem.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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