Champion Breweries Plc recorded a loss before tax of N884.7m in the half-year period ended June 30, 2014, the company’s statement of financial position for the period showed. The company’s result, filed with the Nigerian Stock Exchange, showed that it had recorded a loss before tax of N757.9m for the corresponding period of 2013. The company, however, recorded growth in total assets, turnover and gross profit. According to the result, Champion Breweries grew its total assets by 19.7 per cent to N8.336bn in the review period from N6.964bn in the same period of 2013. Its turnover was up by 23 per cent. It rose from N327.2m in the six-month period ended June 30, 2013 to N402.5m in the review period. Gross profit recorded a much more significant rise. It surged by 515 per cent to N410.9m from the N66.8m the company declared for the first half of 2013. Champion Breweries recently announced that it had concluded arrangements to raise N11.65bn via a rights issue. The company’s shareholders had authorised the Board of Directors to raise additional capital up to N13.7bn at its Annual General Meeting, which was held on May 16, 2014. The company explained that it was in line with the authorisation that it commenced the process, which it was all but complete following clearance of the issue documents by the Securities and Exchange Commission and the receipt of listing approval for the new shares from the Nigerian Stock Exchange. According to the statement, in raising the N11.65bn, a total of 6.3 million ordinary shares of 50 kobo each will be offered to existing shareholders in the ratio of seven new ordinary shares for every ordinary share held as of the close of business on Wednesday, May 7, 2014 at N1.85 per share. Stanbic IBTC Capital Limited is the issuing house to the issue, which is expected to open on Monday, August 4, 2014 and close on Wednesday, September 10, 2014. “The net proceeds of the issue will be used to repay the company’s existing debt and reduce the interest burden which will potentially enhance the company’s operations and reposition it for profitability and growth,” the statement said. It added that at the signing ceremony held in Lagos, the Chairman of the Board of Directors, Champion Breweries, Chief Senas Ukpanah, had explained that the rights issue when concluded would be key to transforming the company and ensuring its growth. He was quoted as saying, “The successful outcome of the rights issue will signify a huge step towards the implementation of Champion Breweries’ turnaround programme which is crucial in reversing the fortunes of our company.” Copyright PUNCH. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH. Contact: editor@punchng posted on July 30, 2014 at 12:00AM Send an email to Joseph T. Obagbemisoye 08140584469 or 08086797418 Like JTNNG on facebook facebook/jtnng91 View Joseph T. Obagbemisoyes profile on facebook facebook/jtob91 Follow @jtob91 and get followed also jtnng.blogspot/
Posted on: Tue, 29 Jul 2014 23:25:35 +0000
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