Cutix Plc, cable and wire manufacturing company based in Nnewi, Anambra State has posted a profit after tax of N190.5 million from N149 million in the preceding year despite the harsh political, economic environment and recession that have adversely plagued the economy of the country. This represents about 27.71% growth in the company’s revenue profile.
The company’s revenue grew within the fiscal year under review by N2.835 Billion compared to N2.358 billion last year, while profit before tax grew from N202 million to N278million.
The company’s out gone chairman, Mr. David Ifezuluike, an Engineer who made the disclosure during its 33rd Annual General Meeting (AGM) in Nnewi said in view of the performance of the company, the Directors recommended that a dividend of 14 kobo per share be paid to the shareholders.
Ifezulike said that low economic activities continued during the year under review in spite of the much anticipated increase in the level of foreign investments as a result of the initial warm reception and support extended to the federal government at inception. Nigerian economy he nonetheless stressed remains in decline, adding that revenue accruable to the government fell significantly as a result of the crash in oil price.
He identified difficulties in sourcing foreign exchange as a major obstacle; adding that the situation became so bad that most manufactures could not access up to 10% of their Foreign Exchange (FOREX) requirements through the Central Bank of Nigeria (CBN)
Following this, Ifezulike said the company resorted to sourcing for forex to purchase raw materials from the parallel market. The net effect he said is that the cost of doing business has increased and inadvertently affected the prices of products significantly.
“We are just working and we thank God. The way we do our business changed. From October last year and till date, we have not received up to $150,000 from the CBN. But we buy from the parallel market. It has generally changed the way we do business.
“WE are the first to begin sourcing funds from parallel market for our raw materials,” he said.
The national fall-out or consequence of buying from the parallel market he said means that the prices of goods will adjust, stressing that, what you do as a manufacturer is to try to ensure control of cost.
He however said that the down turn in the economy has not affected the quality of its products and sales, even as he said the recession has provided the opportunity to do business better.
The biggest challenge the company faces he said remains that it cannot source forex from the CBN, adding that the way things are today, the CBN can’t even provide 10% of forex used by manufacturers.
The logical thing he insists is to look for sources of funding elsewhere.
He said that the future of manufacturing industries in the country is bleak given the difficulties in sourcing forex from either the CBN or parallel market and expressed regrets that some local companies are folding up.
Dr. John Mbonu was unanimously elected the new chairman of the company, while Ndubuisi Agoha and Dr. Edmond Njoku were elected as representatives of the shareholders in the Audit committee to fill the vacant position left by the two directors who retired.
Again, Ambassador Okwudili Nwosu and Mr. Ike Okonkwo were appointed into the company’s budget committee.
A shareholder, Pastor William Adebayo when interacting with NEWSMEN said cutix Plc has shown resilience in the face of difficulties and harsh economic environment declaring a profit after tax of N190.5 Million describing it as a feat most Nigerian companies could not achieve in this period of recession.
“Despite recession, the company was able to pay N14 kobo dividend to shareholders when many companies are folding up or retrenching workers. The profit increase has uplifted the company and we realize that the company’s selling point is the quality of its product which has made it a household name in Nigeria and beyond.
It is a fit we want other companies to emulate,” he concluded.