In the financial year ended December 31, 2013, the board and management of Portland Paints and Products Nigeria plc were able to achieve a turnaround in the fortune of the business.
This turnaround, which reflected in the company’s bottom-line, was linked to their ability to successfully implement innovation, and proactively respond to market dynamics and competitive pressures.
Nigerian economy faced enormous socio-economic challenges in 2013; however, as shown in the company’s annual report, it was able to successfully weather the storm and post an impressive result.
From a loss of N222.7 million in 2012 to profit after tax (PAT) of N107.5 million in 2013, the company recorded bottom-line growth of 148 percent. Operational profit grew to N224.4 million in 2013, from a loss position of N130.8 million in 2012.
Portland Paints and Products Nigeria is principally engaged in the business of manufacturing and sale of paints, marketing of sanitary ware and Hempel marine and protective coatings for the oil and gas sector.
Report of its directors made available to shareholders at the annual general meeting shows the company continued to implement its strategies for enhancing the quality of its service delivery through restructuring of its operations, increased investment in technology infrastructure and enforcement of procedures and manpower development.
There is no doubt that the security challenges in Northern parts of the country with the attendant consequences of loss of lives and properties, domestic constraints such as increasing oil theft and piracy, depletion of fiscal buffers, dwindling foreign reserves, erratic supply of public electricity, poor infrastructure, among others challenges, contributed in making business operating environment difficult in 2013.
The company’s turnover was down by 3 percent from N2.865 billion in 2012, to N2.771 billion in 2013. Shareholders fund rose by 14 percent from N776.566 million to N884.039 million. Earnings per share rose by 148 percent from a negative of 56 kobo to a positive of 27 kobo in 2013.
“For our company, the future is indeed bright, as we are poised to reap the benefits of the investments we are currently making in the business. This is because, during the year (2013), the company continued to implement its strategies for enhancement of its service delivery through restructuring of its operations and in particular the route to the market, and focus on areas of its core competencies, enforcement of procedures and processes in tandem with the group’s policies,” said Larry Ettah, chairman, Portland Paints and Products Nigeria plc.
He noted that “the bold initiatives have positioned our company for sustainable growth and improved performance in 2014, and in the years ahead.” Listed on the industrial goods sector of the Nigerian Stock Exchange, under the building materials sub-sector, the company’s share price at close of deals last week was N4.81.
The directors of the company in their report to shareholders recently at the annual general meeting show that the company is always reviewing its governance structures to align them with regulations and best practice, and putting appropriate governance framework in place to strengthen Portland Paints and Products Nigeria business structure.
“We have also established a delegation of authority framework for the company. Following the enterprise risk management review of KPGM for the UAC Group, we have now processed to the implementation of the recommendations in our business. A risk and compliant unit has been set up to drive the process. The internal audit function has been outsourced to KPMG Professional Services for enhanced professionalism and independence. Our whistle blowing procedure is also managed by the firm in line with best practice and to assure employees and other stakeholders of enhanced confidentiality,” the directors noted in their report.
