Company History
IPWA Plc, formerly International Paints (West Africa) Limited was incorporated as a public company on 23rd January, 1961 to manufacture, market and sell paints, varnishes and allied products.
At inception, the company was 100 per cent owned by International Paints (Holdings) Limited (IPH), a wholly owned subsidiary of international Paints Plc formerly International Paints Company limited, U.K (IPC) which was wholly owned by Courtaulds Limited (CCL) is a major manufacturer of marine paints, industrial coatings, packaging coatings and decorative paints.
On November 1978, the company was listed on the official list of the Nigerian Stock Exchange (NSE) under the chemical & paints sub-sector.
In compliance with the provisions of the Nigerian Enterprises Promotion Decree of 1972 and 1977 which required at least 40 per cent equity participation by Nigerians, IPH released 60 per cent of its holdings to Nigerian citizens and associates, thus reducing its equity to 40 per cent.
IPWA’s strength and opportunities in the Nigeria paint industry remain high. By virtue of its products profile, IPWA Plc is the most diversified paint manufacturing company in Nigeria, producing highly technological marine, protective, packaging, industrial and coil coatings in addition to building paints, wood finishes and automotive refinishes.
IPWA Plc is a major supplier of paints to service companies in oil and gas, steel plants, petrochemical and the refineries. Indeed, it controls about 30 per cent of the total market in the marine and protective coatings in Nigeria. The revenue from oil and gas industry accounts for about 98 per cent of Nigeria’s foreign exchange earnings. As a key player in the marine and protective coatings market with superior technology, the company is well positioned to take full advantage of its competitive edge.

Management
The company’s 9 man board is chaired by chief Silas Bandele Daniyan CON, Engr. Sulaimon Ibikunle Tella is the managing director and chief executive officer of the company while Miss. Mary Abike Daniyan, Patrick Chinweike Abuka Esq., chief Folorunsho Daniyan, Mr. Kamar Gbadegesin Raji Esq., Mrs. Agela Hansatu Osarumwense, Otunba Olumide John Atanda, Lt. Col. Abubakar Sadiq Zakariya (rtd) are directors of the company.

Financing Structure
The authorized share capital of IPWA Plc is 520 million ordinary shares of 50 kobo each worth N260 million, while its issued and fully paid up capital was 514 million ordinary shares of 50 kobo valued at N257 million as at the end of its financial year ended 31 December, 2009. Its shareholders’ fund grew during the 2009 financial year by N5.8 million or 1.5 per cent. From N400.8 million the company’s shareholders’ fund rose to N406.7 million at the end of its 2009 financial year. Fixed assets of the company went down by N26.106 million or 11 per cent to N219 million in 2009 from N245 million which it had at the end of its 2008 financial year. The current assets went up from N401.115 million to N471.642 million. This is N70.527 million or 18 per cent rise. Total assets less current liabilities of the company rose by N15.992 million or 3.9 per cent during the year under review. From the value of N410.842 million it rose to N426.834 million.

Profitability
Turnover of the IPWA dropped from N562.8 million in 2008 to N399.9 million representing a decrease of N162.9 million or 29 per cent. From N330.3 million which it spent on cost of sales in 2008, what was spent on the cost centre in 2009 dropped to N205 million. This is a decrease of 38 per cent. It made N194.9 million gross profits in the review period which is N37.614 million or 16 per cent dropped over N232.5 million it made in the preceding accounting period. IPWA spent N97.235 million on distribution expenses during its 2009 financial year. This shows 8 per cent rise when compared to N90.078 million which it spent for the same purpose in 2008. The company spent N131.8 million on administrative expenses in 2008 to stand at N124.2 million during the year under review, this is N7.639 million or 6 per cent increase. Other operating income went up by 121 per cent to N48.473 million from N21.885 million in 2008.
Profit before taxation went down by 170 per cent during the review period from N29.363 million in 2008 to N10.867 million during the 2009 financial period. Loss after taxation stand at N4.438 million in 2009 compared to profit of N21.510 million it made in 2008 financial year. Earnings per share also decreased during the year under review by 75 per cent to N1.00 kobo from N4.00 kobo in 2008.

Liquidity
Current ratio in 2008 was 1.7:1. Current assets of the company could only take care of 170 pre cents of its current liabilities. In 2009, the situation was change. It was 1.8:1 its current assets could take care of 180 per cent of its current liabilities. Liquidity ratio in 2008 was 1.2:1 and in 2009 it was 1.3:1.As the stock is taken out of the current assets, the liquidity position shows not too comfortable position as its current assets without stock could settle 120 per cent of the liabilities in 2008 and the position was improved upon in 2009 as it was able to settle it 130 per cent.

Score Card
The economic environment for the year 2009 under review was harsh and impacted negatively on the business of the company.
During the year under review, the company’s recorded decline of 29 per cent in turnover. Also, it recorded 79 per cent loss after taxation during the year under review to stand at N4.438 million.