Ardova Plc has attributed the increase in profit in its audited result for the full year ended December 31, 2019 to a strategic focus on improving operational efficiencies through leveraging existing core assets and renewable energy distribution.

Specifically, the company’s revenue rose from N134.706 at 2018 to N176.551 billion at 2019, signaling a 31.1% increase while Profit After Tax (PAT) rose from N631.471 million at in 2018 to N3.915 billion in 2019.

The Earnings Per Share (EPS) of Ardova Plc grew from N0.48 at FY2018 to N3 at FY2019, implying a 525 increase.

Addressing shareholders at the 2019 virtual yearly general meeting held at the weekend, the chairman of the company, AbdulWasiu Sowami, said the change made by the management to turn around the company is yielding a positive result.

He said: “On behalf of the board, I am pleased to inform our shareholders that the change in strategy introduced by our new management has begun to yield returns.

He said shareholders’ funds rose by15.6% year-on-year, to N17.5 billion in 2019 from N15.1 billion in 2015 as a result of a 38% growth in retained earnings.

The company also improved its operational efficiency and increased its volumes and margins for all its products, resulting in total volume growth of 37.4% from N804.7 million in 2018 to N1.1billion in 2019.

“Despite what was a challenging economic environment, the evolution of our business model to one focused on improving operational efficiencies, leveraging existing core assets and positioning the company to be at the forefront of renewable energy distribution in Nigeria has led to significant improvement in our top and bottom line.

“We will continue to focus on delivering value to our shareholders as we continue to drive the growth and profitability of our business”

The Chief Executive Officer of AP, Olumide Adeosun, said with the emergence of the new management in 2019, the vision was to create an energy firm that will become the brand of choice for consumers.

To this effect, the company, according to him, focused on increasing operational efficiency and leveraging core assets to maximise growth.

Furthermore, the firm also divested from non-core subsidiaries, a strategic move that resulted in an improved performance in 2019.

“It is against this backdrop that we delivered a 31% year-on-year growth in revenue and a 520% year-on-year growth in profitability.”

Adeosun said: “Our 2019 financial results mark the start of our repositioning plan. We will continue to be deliberate about building an energy company designed for the future and our performance over the latter half of 2019, shows that moving forward on this course will set us on the right path to our long-term goals.

“We remain committed to delivering improved profitability and value for shareholders in 2020, as this remains a core component of our transformation.”

He added that the company would continue to execute on its transformation strategy by leveraging new opportunities, innovation and partnerships that would enable the company to become Nigeria’s energy provider of choice.

Other resolutions voted for by the shareholders at the meeting was the election of members of the Statutory Audit Committee and amendments to the Articles of Association to allow the meeting of the Board of Directors to hold via conference call, video call or other digital or electronic means.

 

Source: The Guardian

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