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The Group Managing Director of Omatek Ventures, Florence Seriki, stated this last Friday during a ‘Facts Behind the Company’ presentation at the NSE.
According to her, given the high prevailing interest rate in the country and the competition its brands are facing from foreign manufactures, which have access to cheaper sources of funds, it is important that Omatek Ventures sources for cheaper funding.
She explained that apart from sourcing for cheaper offshore funds, the company was also working with CBN and BOI for a single digit funding in order to compete with foreign brands that borrow money at LIBOR and procure their raw materials from the same factories.
Seriki decried the inability of the local banks to support the local small and medium scale enterprises, stressing that the case of Omatek is even made worse because many of the banks do not understand its operations.
“Local banks are not able to understand our transaction dynamics and accommodate our pioneering structure and supply chain management in an attempt to understand the right kind of funding structure required for our factory and the distribution companies,” she said.
However, Seriki said having put some of the challenges behind, Omatek would grow its total comprehensive revenue by 100 per cent in 2014.
Seriki, who titled her presentation: ‘After the storm – Accelerating the Omatek vision,’ explained that the problems, which almost led to a change of management, had been solved.
She disclosed that with serious efforts by the Omatek management and the intervention of the CBN, the ICT firm had overcome the challenges and was now set for speedy growth and offer investors increased returns.
“We had moved from a company with only one founder/shareholder to three shareholders and to over 6000 shareholders,” she said.
According to her, the company’s financial performance in 2012 is indicative of its improved fortunes.
Omatek recorded a profit of N 237 million in 2012, a major recovery from a loss of N262 million the previous year, saying the results reflected the efforts made in managing expenses.
“Today, our story is different. We have much to look to as a publicly quoted company on the basis of the value we are bringing to our investors and on the basis of the high potential we have to dominate the market. Going forward, the company expects its earnings to grow by 50 per cent in 2013, 100 per cent in 2014, 78 per cent in 2015, 60 per cent in 2016 and 65 per cent in 2017,” Seriki said.