CHEMICAL and Allied Products Plc evolved from the world-renowned British multinational Imperial Chemical Award Industries Plc, which formalised its Nigerian operations in 1957 under ICI Exports Limited. In 1962, ICI Paints was also incorporated to manufacture Dulux paints. In 1965, ICI Exports Limited changed its name to ICI Nigeria Limited and in 1968 it subsumed the paints company.
Following the promulgation of the first and second Indigenisation Decrees in 1972 and 1977, ICI Nigeria Limited at first sold 40 per cent but later 60 per cent of its share capital to the Nigerian public, and went further to change its name by a special resolution of the shareholders to Chemical and Allied Products Limited (CAPL) in the spirit of indigenisation. In 1991, the ‘Limited’ appellation was dropped for ‘Plc’ in compliance with the provision of the companies and allied matters act of 1990.
In 1992, ICI Nigeria Limited finally disposed of its minority 40 per cent shareholding in CAP Plc when it sold 35.7 per cent of the equity to UAC of Nigeria Plc and the rest to the Nigerian public on the floor of the Nigeria Stock Exchange.
On 24th May 1978, the company was listed on the official list of the Nigerian Stock Exchange under the chemical & paints sub-sector.
Today, CAP Plc is a Nigerian company operating in coatings business.
CAP Plc, a fully owned Nigerian company is a participant of the U.N global compact initiative. A winner of the Nigerian Stock Exchange merit award (2006) and has retained the Pearl award for sector leadership in chemical and paints from 2004 to date.
The company’s 7 man board is chaired by Mr. Larry Ephraim Ettah, Mrs. Omolara Elemide is the managing director of the company while Mr. Bashir Korede Abdulah is finance director. While Mr. Opeyemi Agbaje, Mr. Solomon Aigbavboa and Dr. Umaru Alka are non-executive director and Mr. Godwin Abimbola Samuel is the company secretary.
The authorized share capital of CAP Plc is 600 million ordinary shares of 50 kobo each worth N300 million, while its issued and fully paid up capital is 420 million ordinary shares of 50 kobo valued at N210 million at the end of its financial year ended 31 December, 2009. Its shareholders’ fund grew during the 2009 financial year by N67.981 million or 10 per cent. From N686.461 million the company’s shareholders’ fund rose to N754.442 million at the end of its 2009 financial year. Fixed assets of the company went up by N8.180 million or 3.5 per cent to N245.154 million in 2009 from N236.974 million which it had at the end of its 2008 financial year. The current assets went down from N1.984 billion to N1.918 billion. This is N66.401 million or 3.3 per cent rise. Net current assets of the company rose by N69.941 million or 8.5 per cent during the year under review. From the value of N819.037 million it rose to N888.978 million.
Turnover of the CAP rose from N2.679 billion in 2008 to N3.027 billion representing an increase of N347.747 million or 13 per cent. From N1.451 billion which it spent on cost of sales in 2008, what was spent on the cost centre in 2009 rose to N1.710 billion. This is an increase of N259.283 million or 18 per cent. It made N1.316 billion gross profits in the review period which is N28.404 million or 2.2 per cent rose over N1.288 billion it made in the preceding accounting period. CAP spent N173.033 million on distribution expenses during its 2009 financial year. This shows 46 per cent rise when compared to N118.461 million which it spent for the same purpose in 2008. The company spent N571.605 million on administrative expenses in 2008 to stand at N687.558 million during the year under review, this is N114.953 million or 20 per cent increase. Other operating income went down by 73 per cent to N21.739 million from N81.518 million in 2008.
Profit before taxation went down by N377.979 million or 38 per cent during the review period from N997.276 million in 2008 to N619.297 million during the 2009 financial period. Profit after taxation stand at N340.981 million in 2009 compared to N735.642 million it made in 2008 financial year.
Current ratio in 2008 was 3.4:1. Current assets of the company could only take care of 340 per cent of its current liabilities. In 2009, the situation was change. It was 2.9:1 its current assets could take care of 290 per cent of its current liabilities. Liquidity ratio in 2008 was 3.1:1 and in 2009 it was 2.5:1.As the stock is taken out of the current assets, the liquidity position shows comfortable position as its current assets without stock could settle 310 per cent of the liabilities in 2008 and the position was improved upon in 2009 as it was able to settle it 250 per cent.
Despite the challenging operating environment the company was able to record an improve turnover of N3.027 billion, a growth of 13 per cent over 2008.
Earnings per share decreased during the year under review by 54 per cent to N162 kobo from N360 kobo in 2008.
The company declared a dividend of N336 million, representing N1.60 kobo for every ordinary share of 50 kobo, in addition to a script issue of 1 for 3