BCC Performs Better At Exchange


Operators at the Nigerian capital market have expressed confidence in Benue Cement Company Plc following the impressive result posted by the company.
The company in its audited result ended December 31, 2008, recorded a turnover of N16.45 billion as against N5.47 billion in the comparable period of 2007, indicating an increase of 200.62 per cent.
Profit after tax stood at N4.14 billion compared to N1.25 billion in the corresponding period of 2008, representing an increase of 230.99 per cent.
The company’s board of directors recommended a bonus of one for every  four shares held to shareholders and the closure of register of members will be July 6, 2009.
Analysts said the development could be attributed to the take over of the company by Dangote Industries Limited, which had transformed the fortunes of the company from a loss situation to a profit making one.
The managing director of Alangrange Securities Limited, Mr. Samson Amedu said the company released an impressive result but there is still some potential which will come to fore in the company in subsequent results, adding that the next result would be better than the recently released results.
He said that the coming in of Dangote Industries Limited into the company had brought BCC to profitability.
Corroborating his view, a broker pointed out that the effect of the takeover of the core investors had impacted its bottom line as the company had not done well in the past.
He pointed out that the core investors had planned to upgrade the cement factory in the region, which is expected to increase the factory production and generate more income and profit.
Another operator noted that the company had come out of its losses and should be looking forward to rewarding its shareholders in dividend pay out.
Meanwhile, the company projected an increase in its turnover and profit after tax for the period of third and fourth quarter results.
It forecasts a turnover of N16.54 billion and profit after tax of N6.84 billion in third quarter ending September 30, 2009.
While the fourth quarter result ending December 31, 20009, an increase in turnover to N16.695 billion and profit after tax of N6.728 billion.
Following the privatisation exercise of the company, Dangote Industries Limited, took over the federal government’s 35.39 percent shares of BCC thereby qualifying as core investor after a competitive bidding process.