Shareholders Okay Fidson Healthcare N6b Rights Issue, N75m Dividend Payment

By Modupe Gbadeyanka

The request by the board of Fidson Healthcare Plc to raise N6 billion, through Rights Issue, has received the approval of shareholders.

This happened at the Annual General Meeting (AGM) of the firm held over last weekend in Lagos.

During the meeting, the shareholders also approved the payment of five kobo dividend, amounting to N75 million for the financial year ended December 31, 2016.

According to Chairman of Fidson Healthcare Plc, Mr Felix Ohiwerei, the N6 billion would be used to boost working capital that has been hugely impacted by the depreciation of the Naira through the new infusion lines that the company recently added.

He explained that the funds would be raised through public offering, right issue, private placement of shares or other methods in the ratio and terms including pricing of the securities, conditions and dates to be determined by the directors.

Giving highlights of the firm’s performance last year, he said the company recorded a drop in its profit after tax; N316.76 million from N744.39 million recorded in 2015, while its turnover declined to N7.66 billion from N8.2 billion recorded in 2015.

Also, gross profit was N4.06 compared with N5.35 billion made in the preceding year, showing a decline of N24.21 per cent, while Operating profit declined to N1.09 billion from N1.52 billion recorded in 2015.

However, the shareholders commended the company for the newly completed state-of-the-art facility which will provide several benefits including increased capacity, improved efficiency from economies of scale, increased product offerings as well as job creation.

MR Ohiwerei explained that the new factory came on stream at the tail end of 2016 and for the company to realise the full potential of the facility and to utilize its full capacity.

“The completion of our new factory and the concentration of production on one site is an important milestone for the company.

“The board is confident that the company is in a very good position to remain a leading player in the industry.

“The board is also confident that the company will continue to yield good returns to the shareholders,” he said.