Julius Berger to distribute 264m bonus shares, N3.63b to shareholders

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By Taofik Salako, Capital Market Editor

 

Julius Berger Nigeria Plc will distribute 264 million ordinary shares of 50 kobo each as bonus shares to shareholders in addition to cash dividend of N3.63 billion.

The board of Julius Berger Nigeria stated that it has recommended a combination of scrip and cash dividend as returns for the 2019 business year.

In a regulatory filing, the board stated that shareholders on the register of the company as at the close of business on May 29 will receive a bonus share for every five ordinary shares and final cash dividend of N2.75 per share.

According to the board of the company, a total of N132 million from the retained earnings of the company will be capitalised to offset the cost of bonus shares.

Key extracts of the audited report and accounts of the company for the year ended December 31, 2019 showed steady improvement in the profitability of the construction group. Turnover rose by 36.9 per cent from N194.62 billion in 2018 to N266.43 billion in 2019. Profit before tax grew by 36.5 per cent from N10.2 billion in 2018 to N13.92 billion in 2019. After taxes, net profit increased by 8.0 per cent from N7.0 billion to N7.55 billion. Basic earnings per share improved from N5.30 in 2018 to N5.72 in 2019.

Julius Berger Nigeria had been ranked in the upper Top 100 Nigerian companies in terms of assets, revenue and profits in fiscal year 2018.

Alongside MTN Nigeria Communications, Dangote Group and Zenith Bank, the companies were announced as “Nigeria’s Top 100 Companies”; an exclusive club of the country’s corporate elite.

A survey by NEXTMONEY in its last December edition, Julius Berger ranked among the first 21 of the top 100 companies in terms of assets of over N288.43 billion. In terms of revenue and profits for the period, the publication rated   the company number 16 with N194.62 billion and N6.1 billion to show.

According to NEXTMONEY, the Top 100 Companies “is a galaxy of Nigeria’s blue chip companies with humongous assets, hefty revenues and princely profits. It is a showcase of publicly-held companies in the country that have posted impressive results after weathering the country’s excruciating economic weather.

It is an album of companies that represent a goldmine in the business world where can put their money and reap bountiful harvest in terms of return on investment even as it stressed that this report covered the 2018 accounting year.

On how the top companies were decided, NEXTMONEY stated that it extracted the relevant data from the audited accounts of the companies listed on the NSE and sorted them from the largest to the smallest and cut off at the 100th.

Thus, it said from any angle they are viewed, assets revenue and profits, companies falling into the upper 100 group in Nigeria are high performers to be coveted and sought after by serious and discerning investors.

Julius Berger Nigeria had struck a strategic partnership and joint investment agreement with Petralon Energy Limited to acquire upstream assets as part of ongoing diversification plan of the construction giant.

Under the agreement, Julius Berger Nigeria and Petralon Energy will acquire and develop oil fields in Nigeria. Julius Berger Nigeria is expected to bring its vast experience in engineering to bear on the new partnership.

“This alliance is in line with the strategic goal of Julius Berger to diversify into the oil and gas sector,” Julius Berger stated in a regulatory filing announcing the deal.

Julius Berger Nigeria is the leading construction company in Nigeria. Incorporated in 1970, it became a publicly quoted company in 1991 and now has more than 10,000 shareholders.