Notore's profit soars as company moves to reposition for growth

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Nigeria’s agro-chemical firm, Notore Chemical Industries Plc, recorded an operating profit of N2.99 billion in the three month period ended 31st December 2018, resulting in an increase of 412.4 per cent over its first quarter 2018 operating profit of N0.58 billion.

The result shows that although it needs to consolidate on repositioning for growth, a few of its strategies seem to be yielding positively.

But an analysis of the company’s financial accounts showed that several moves were made to reposition the company on the part of profitability within the years. “These circumstances,” the company said of its losses at the time, “cast doubt about the ability of the group and company to meet their obligations as they fall due and accordingly, the appropriateness of the use of the accounting policies applicable to a going concern.”

The management also said that it raised fresh $40 million seven-year Term Loan facility from the African Export-Import Bank , adding that the directors plan to utilize the proceeds of the loan for essential capital asset investments such as scheduled turn-around maintenance of production facilities, rehabilitation of the 25MW back-up gas turbine and procurement of critical spares for the production plant.

Meanwhile, in 2018, the firm moved a step higher in its turnaround plans as its shares was listed on the Nigerian Stock Exchange on August 6. Details of the 2018 financials also showed that a total of 1,612,066,200 units of the company’s ordinary shares was listed on the NSE and with a Market capitalization of N100.75 billion on the listing date.

 

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