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JB rules out plans for rights issue as shareholders’ equity hits N35bn

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JB rules out plans for rights issue as shareholders’ equity hits N35bn

By Peter Egwuatu

JULIUS Berger Nigeria (JB) Plc has explained to investors that there was no need to float a rights issue at the moment as the company’s shareholders equity has risen to N35 billion.

Speaking at the company’s investor forum 2019 in Lagos, Engr. Dr. Lars Richter, Managing Director, Julius Berger, who was represented by the Finance Director, Martin Brack, said that 2018 was a very successful and pivotal year for Julius Berger, a business year filled with many positive developments and achievements.

JULIUS Berger
Julius Berger

“In 2018, Julius Berger successfully overcame many of the tough challenges faced in the recent past and made marked progress across all aspects of its business, moving to greater profitability and success. We don’t think it is necessary to float a rights issue at this moment as our shareholders’ equity has risen by N35 billion.”

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Commenting on the 2018 financial year performance, he said: “The company’s revenue increased by 37 percent to N194 billion from N141 billion in 2017. The Profit Before Tax increased by 173 percent to N10.1 billion in 2018 from N3.7 billion in 2017, while Profit After Tax also rose to N6.1 billion in 2018 from N2.5 billion in 2017.

Similarly, he told investors that the Company recorded significant progress in its first quarter results, saying it posted revenue of N35.32 billion for the period ended March 2018 compared to N34.15 billion reported for the period ended March 2017.

Speaking on the Lagos-Shagamu Expressway, which has seen delays and even work stoppage in the past, due to funding challenges, Richter said since the resumption of work, a steady pace of progress is now the reality. He said, “Considering that the Expressway is now financed via the Presidential Infrastructure Development Fund, we presume that we will be able to achieve an uninterrupted pace of work with the new funding structure