May & Baker Nigeria Plc will raise additional capital to support its business expansion and position itself against competition, the Chairman of the company, Lt. Gen Theophilus Danjuma (rtd), has said.
Speaking at the Annual General Meeting (AGM) of the company in Lagos last Thursday, Danjuma said the company had started considering various ways of raising new capital and would soon choose the most appropriate means to bolster the capital base of the company.
According to him, it has become expedient for the company to recapitalise to muster enough liquidity to face the challenges of the business environment.
He said the huge investments in the world-class pharmaceutical manufacturing centre in Ota, Ogun State, the company’s vaccine manufacturing joint venture with the Federal Government, new products and other initiatives will provide a stable base for the company’s growth in the years ahead.
According to him, the company has rolled out a new five-year strategic plan that would seek to harness all opportunities to increase the group’s earnings and returns to shareholders.
Danjuma disclosed that the company has projected turnover of N9.6 billion for 2013 based on the optimism on expected increased output from its new manufacturing plant, business restructuring efforts and expected reduction in financing costs following the soft loan received from T.Y Holdings during the last quarter of 2012.
He added that profit is also expected to increase in 2013 as the company continues to optimize production and cost efficiencies.
“Our company is well-positioned for the future with a lot of potentials from the strategic investment we have made in Ota and other attractive business prospects in our sight. As we vigourously pursue our new five-year strategic plan with all the opportunities it presents, we can only hope for better performance and stronger earnings capacity going forward,” he said.
Audited report and accounts of the company for the year ended December 31, 2012 showed a turnover of N5.7 billion, 18 per cent increase over its 2011 figure of N4.8 billion. Gross profit also grew to N2.1 billion as against N1.9 billion in 2011.