MIRA
INFORM REPORT
|
Report Date : |
13th March, 2007 |
IDENTIFICATION
DETAILS
|
Name : |
LONGMAN NIGERIA PLC |
|
|
|
|
Formerly Known as: |
LONGMAN NIGERIA LIMITED |
|
|
|
|
Registered Office : |
63, Marina, Lagos |
|
|
|
|
Country : |
Nigeria |
|
|
|
|
Financials (as on): |
31.12.2005 |
|
|
|
|
Date of Incorporation : |
10.08.1961 |
|
|
|
|
Com. Reg. No.: |
RC: 2637 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Publishing and Distribution of books (Educational, General
Reference, and Leisure). |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
IDENTIFICATION
COMPANY
NAME: LONGMAN NIGERIA PLC
REGISTERED
NAME: LONGMAN NIGERIA LIMITED
PREVIOUS
NAMES: LONGMAN
NIGERIA LIMITED
(Converted
to Plc. On 28th May 1991)
REGISTERED ADDRESS: 63, Marina, Lagos
HEAD OFFICE ADDRESS: Felix
Iwerebon House, 52, Oba Akran Avenue Ikeja Industrial Estate
TELEPHONE(S): 234-1-
4978925-9
FAX: 234-1-4964370
E-MAIL: longman@longmannigeria.com
WEBSITE: www.longmannigeria.com
POSTAL ADDRESS: P.M.B
21036, Ikeja, Lagos.
Subject is into Publishing and Distribution of books (Educational, General Reference, and Leisure).
In Nigeria subject is considered to be a major scale concern in this sector.
Currency: All
monetary values in this report are in Nigerian Naira, the local currency,
except otherwise stated. The exchange rate is N130 to 1 US $.
SUMMARY
NATURE OF PREMISES: Owned,
office space at head office occupying approximately 9000 square metres.
DATE
INCORPORATED: 10th August 1961
YEAR
BEGAN OPERATION: 1938/1961
LEGAL
FORM:
Private Limited
Company
REGISTRATION
NO: RC: 2637
SHARE
CAPITAL: N2, 000, 000.00 (Ordinary
Shares of 50k Each)
ALLOTTED
SHARE CAPITAL: N2,
000, 000.00
PAID-UP
CAPITAL N73.5,
000, 000.00
AUDITORS: Akintola Williams Deloitte (Chartered
Accountant)
235,
Ikorodu Road,
P.O.Box
965, Lagos.
SOLICITORS: Bola
Okegbenro & Co. (Legal Practitioners)
12,
Sam Shonibare Street, Surulere, Lagos.
COMPANY
SECRETARY: DTT Services Limited- Corporate
Secretaries
STAFF
STRENGHT: 227 (as at October 2006)
OWNERSHIP/SHARE HOLDING
STRUCTURE
Name %Held
Nigerian 71.
43
Foreign 23.57
Major Shareholder: Pearson Education Limited – 28.57
Names:
Alhaji
Shehu Bakari (Nigerian)
C/o Galadima Road, P.O.Box 127,
Jimeta Yola, Adamawa State
Julius A. Olwoniyi (Nigerian)
11, Odewale Street, Yaba, Lagos.
Phebean
Ajibola O. (Nigerian)
1213, Ibiyinka Olorunmide close,
Lagos.
Ntieyong
U. Akpan (Nigerian)
P.O.Box 498, Calabar Cross
River State
Timothy
J. RIX (British)
24, Birching ton Road,
London.
John
D. Williamson (British)
153, Heathrow, Bishops
Stratford Herts, London.
Charles J. REA (British)
62, Dukes Avenue,
London
Felix
A. Iwerebon (Nigerian)
21, Remi Femi-Kayode Avenue,
GRA, Ikeja, Lagos.
M.
Halliru (Nigerian)
C/o Longman Nigeria Plc
Sokoto, Road, Opp.
Zaria Hotels, Zaria,
Kaduna.
A.
Savage (British)
C/o Longman Nigeria Plc
52, Oba Akran Avenue
Ikeja, Lagos.
Bruce
Norman (British)
C/o Longman Nigeria Plc
52, Oba Akran Avenue
Ikeja, Lagos.
Echebiri
A. O.
25A, Tolabi Street,
Ikeja,
Lagos.
Obidiegwu
D.N.
2, Bamidele Ajiteru Avenue,
Iju, Agege, Lagos.
Mrs.
Afolabi A.O. (Nigerian)
8, Adedoyin Street, Ijeshatedo
Surulere, Lagos.
Ijewere
E.I. (Nigerian)
106/100 Lewis Street,
Lagos.
SHARE HOLDERS (PREVIOUS)
Nil
DIRECTORS
1. Mr. Emmanuel I. Ijewere
2. Mr. Dan N. Obidiegwu
3. Mr. J.A. Olowoniyi
4. Mrs. F.A. Shinkaiye
5. Mrs. A.O. Afolabi
6. Mr. K. Roberts (British)
7. Mr. D. Cameron (British)
8. Mr. M. Mermagen (British)
MANAGEMENT PROFILE
Mr. Dan N. Obidiegwu Managing
Director / CEO
Mrs. F.A. Shinkaiye Executive
Director (Sales & Marketing)
Mrs. A.O. Afolabi
Executive Director (Finance)
Mr. Ignatius Okolie Okafor Deputy
General Manager (Administration)
Mr. Abimbola Abass Balogun Assistant General Manager
(Information Technology)
Mr. Peter Nosike Deputy
General Manager (Finance)
Mr. Enyinnaya N. onyema Assistant General Manager
(Publishing)
Mr. Olalekan Y. Somotun Assistant General Manager
(Production)
AFFILIATED FOREIGN COMPANY
Pearson Education Limited
BRANCHES
*
ABUJA:
1264, Nnamdi Azikiwe Road, KubWA Express Road, Kubwa Abuja.
Tel: 234-95242156
*AGBOR
171 Old Lagos / Asaba Road,
P.O.B 2092
Boji-Boji Owa, Agbor, Delta State.
*AKURE
63, Oyemekun Road, Akure
Ondo State.
Tel: 234-034240284
*IBADAN
Plot 1, Block B Oduduwa Avenue Oluyole Estate
P.O.Box 1192, Agodi, Ibadan
Oyo State.
Tel: 234-02-2; 12329, 2316812
*ILORIN
155 Ibrahim Taiwo Road,
P.O.Box 224 Ilorin
Kwara State.
Tel: 234-031-222744
*JOS
1, Zaria Road,
P.O.Box 775, Jos
Plateau State.
Tel: 234-073-611982
*OWERRI
Plot 14 Aladinma Northern Extension
P.M.B 1122, Owerri
Imo State.
Tel: 234-083-234319
*ZARIA
Sokoto Road,
P.OBox 442 Zaria
Kaduna State.
Tel: 234-069-330900, 332018
*ENUGU
1 Umuleri Street,
P.M.B 2615, Uwani
Enugu State.
Tel: 234-0442-2557
BANKER
First
Bank of Nigeria Plc.
Ikeja Industrial Estate Branch
Oba Akran Avenue Ikeja, Lagos.
Intercontinental
Bank Limited
Alausa, Ikeja, Lagos.
Zenith
International Bank Limited
2nd Floor, Intercontinental Plaza,
Plot 999f Danmole Street,
Victoria Island, Lagos.
ARM
Co. Limited
9, Bayo Kuku Road
Off Kingsway Road
P.O.Box 55765
Ikoyi, Lagos.
TRADE REFERENCES
*Manufacturing Association of Nigeria
*Nigerian Publishers Association
*NECA
PAYMENT REFERENCE
Local and Foreign Companies
PRODUCT DESCRIPTION
Educational Tex Books at All Levels
PERFORMANCE RANKING
* Quality of Management: AVERAGE
* Ethics & Integrity: GOOD
* Ownership Structure: GOOD
OPERATIONS
Subject is into Publishing and Distribution of books (Educational, General Reference, and Leisure).
Subject is located in an industrial area at Felix Iwerebon House, 52, Oba Akran Avenue Ikeja Industrial Estate, Lagos.
TYPES OF CUSTOMERS
* General Public *Group of Companies *Foreign Company
BACKGROUND
Longman was established in Nigeria in 1961 as a book publishing company. It is an off-shoot of the well-known international company, Longman Group UK Limited, now known as Pearson Education Limited.
Longman Nigeria Plc had its shares listed on the Nigerian Stock Exchange on 23 July, 1996. Its main business is the publication of books, especially textbooks for the entire areas of the educational system in Nigeria, as well as general reference and leisure reading materials. The production of consumable educational materials essential for use in educational institutions is an area of growing interest and endeavour for the Company.
Longman’s aims and the objectives encompassing its vision are:
- To serve its
shareholders satisfactorily by ensuring that it earns consistently god,
higher-than-average annual returns, through the provision, to its
customers, of products and services of
high quality and international standard, and
- To reward its
employees fairly and adequately and provide opportunities for them to
realize their full potential and build a lasting stake in the Company.
Longman places emphasis on product quality, as a means of
giving good value for money, providing a healthy challenge to its competitors,
as well as attracting and, motivating talented people among its clientele.
As a policy, Longman does not rest on its oars. Rather, it
vigorously pursues its aims, encouraged by the knowledge that, at the end of the
day, it will have contributed significantly to the growth and development of
the nation’s human resources, and thus enhanced the general standard of living.
Longman was incorporated in August 1961 as a book publishing
company. It develops as an off-shoot of the well-known International Company,
Longman Group UK Limited, now known as Pearson Education Limited, which is the
world’s largest education business.
The
largest educational publisher in Nigeria
Its mission at inception was the marketing and distribution
of imported Longman Group titles, as well as developing publishing in English
and the indigenous language to meet the growing book requirements of the
Nigerian market. Today, Longman Nigeria has become the largest educational
publisher in Nigeria with a total of 280 staff spread across the country.
Longman Nigeria plc was listed at the Nigerian Stock Exchange on 23 July, 1996,
and now has the highest equity value in the publishing sector.
Longman Nigeria has its headquarters located at Ikeja and
has full warehousing and regional offices at Abuja, Agbor, Akure, Enugu,
Ibadan, Ilorin, Jos, Owerri and Zaria with Representatives and other
functionaries located in virtually every state of the federation.
Longman Nigeria publishes educational materials for learners
of all ages and interests ranging from pre-school, primary, secondary and
tertiary to the post graduate and professional levels. Its publications enjoy
wide prescriptions at all tiers of education and are consistently extolled by
all users for their excellent quality and pedagogical adequacy.
In addition, Longman plays the role of marketing and
distribution agent for companies within the Pearson Education group and handles
imprints from Addison-Wesley Longman, Prentice Hall, Pitman and Penguin,
amongst others. With an all-Nigerian management team, Longman’s objective is to
sustain its leadership position through the provision of educational products
of the highest quality. It has a commitment to optimal customer satisfaction
and a well-motivated workforce. It has continued to serve its shareholders
satisfactorily by ensuring consistently good returns through the provision, to
its customers, of excellent products and services.
Publisher
of some of Nigeria’s most successful learning texts
Longman has achieved an enviable reputation for its ability
to identify, encourage and utilize the services of talented Nigerian authors.
This effort has enabled it to publish some of Niger’s most successful learning
texts, such as New General Mathematics,
Stone & Cozens Biology, Practical English and the English
Project
series. Longman’s publishing skills and authorship resources are
formidable, its book distribution network is the most comprehensive and dynamic
in Nigeria, while its products enjoy world-wide acclaim for their content and
value.
Longman’s leading role in publishing in Nigeria has enabled
her to secure and efficiently execute several key book-related contracts from
governments and allied agencies. Longman Nigeria Plc was one of the few publishers
appointed at the inception of the UPE in 1976, to fashion out a number of books
in the core
Subject areas of Mathematics, English and Science at the
primary level, for use in the implementation of the scheme. The company has
subsequently participated in all the branches of the World Bank and the PTF
Educational materials procurement and is poised to be a major player in the
Universal Basic Education programme (UBE)
A
recipient of many professional and social service awards, one
of Longman Nigeria Plc’s recent laurels is the Outstanding Publisher’s Prize of
the Nigerian Publishers Association, bestowed in recognition of the quality of
its products and services. The Company on the 10th of August 2001 celebrated
its 40 years of publishing excellence, of active contributions to the economic,
social and intellectual development of our country and all her peoples.
The Company is also a recipient of the Nigeria Stock
Exchange Annual Merit Award for 1999, 2000, and
EXPANSION PLAN
Public informant believe that subject is looking for foreign
partnership.
PRINCIPAL ANTECEDENT
1. Name: Mr. Emmanuel Itoya Ijewere
Position: Chairman
Profession: Chartered
Accountant
Work History: He is the Managing Partner of Ijewere
& Co (Chartered Accountants) and a Director of many companies. He joined
the Board of the Company in December, 1992, as a non-Executive Director.
2. Name: Mr. Daniel Nnaemeka
Obidiegwu
Position: Managing
Director / CEO
Profession: Marketing
Manager
Education: He is
alumnus of the University of Lagos.
Work History: He joined the Company in 1975 as a
Sales Representative. He became the District Manager, East, in 1979 and
Marketing Manager in 1989. He was appointed to the Board in June 1994 as
Marketing Director. He became Managing Director Chief Executive in January
2005.
3. Name: Mrs. Agnes Omolanke
Afolabi
Position: Finance
Director
Profession: Accountant
Education: She is
alumnus of Yaba College of Technology, Lagos.
Work History: She joined the Company in 1978 as
Financial Accountant. She became the Chief Accountant in 1987 and was appointed
Director of Finance in June, 1994. She is a fellow of both the Chartered Association
of Certified Accountants (FCCA) and the Institute of Chartered Accountants of
Nigeria (FCA). She was appointed to the board in March, 1997.
4. Name: Mr. Julius Abiodun
Olowoniyi
Position: Director
Profession: Accountant
Education: He is
alumnus of Yaba College of Technology, Lagos.
Work History: He is a fellow of both the Chartered
Association of Certified Accountants (FCCA) and the Institute of Chartered
Accountants of Nigeria (FCA).
5. Name: Mr. Kern Roberts
Position: Director
Profession: Marketing
Education: Nil
Work History: He
is Regional sales and Marketing Director, Longman School International
Department
and has overall responsibility for the sales marketing of all UK group
product into
Africa and the Caribbean.
He first
joined Longman in 1986, and worked in Kenya managing the East Africa
business with
particular responsibility for pitman Examinations. In 1994 hen
returned to UK to
take up his current position.
6. Name: Mr. Chris Nott
Position: Publishing
Director
Profession: Nil
Education: Nil
Work History: He
is the Senior Publishing Director, Longman School and has overall
responsibility for the
development and management of Longman School Division’s
UK and International Publishing Programme.
He first joined Longman in 1969, and worked as Publisher and
Publishing manager the in Longman Nigeria 1971-4 and in the Longman Africa
Division from 1974-80. After holding positions in other UK publishing companies
from 1980-94 he returned to Longman, at first working in the ELT Division and
from 2002 in the Schools Division.
7. Name: Mrs. F.A.Shinkaiye
Position: Sales
and Marketing Director
Profession: Business
Administration
Education: She is
an alumna of both the University of Ilorin and Lagos State University.
She holds a
B.A (Hons) in English and Masters degree in Business Administration
(MBA).
Work History: She
joined the Company in May, 1989 as a Senior Editor (Humanities), and rose to
the position
of Executive Publishing Manager in 1999. She was appointed Director
of
Publishing in 2002. She has many Years of experience in both the printing and
publishing industries.
She was appointed to the board in December 2004 and
became Sales
and Marketing Director in 2005.
PHYSICAL VISIT
Visits were made to the followings:
1.
COMPANY PREMISES
2.
CORPORATE AFFAIRS
COMMISSION.
FINANCES
BALANCE SHEET AS AT 31ST DECEMBER, 2005.
2005 2004
N’000 N’000 N’000 N‘000
FIXED ASSETS 189,372 152,677
CURRENT ASSETS
Stocks 504,478 334,316
Debtors
293,752 364,239
Cash at bank and in hand 24,971 30,279
825,774 734,775
CURRENT LIABILITY
Creditors 604,036 575,588
Staff Gratuity 54,930 13,360
Deterred Taxation 4,747 22,814
NET CURRENT ASSETS 162,061 123,013
Total Assets Less Current Liabilities 351,433 275,690
FINANCED BY:
Shared Capital 73,500 73,500
Share Premium
7,215 7,215
Revaluation reserve 68,418 68,418
Revenue reserve 187,600 126,690
SHARE HOLDERS’ FUND 351,433 275,690
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER,
2005/2004
2005 2004 N’000 N’000
Turnover 1,304,641 1,051,917
Cost of Sales (608,841)
(534,902)
Gross Profit 695,800 517,015
Distribution and Selling
expenses (130,046)
(102,451)
Administrative expenses (370,190)
(288,649)
Other Income 5,202 13,411
200,766 139,326
Interest payable and similar
charges (27,367)
(27,432)
Profit on Ordinary activities
Before Taxation 173,399
111,894
Tax on Profit on Ordinary
activities (53,556) (48,930)
Profit on Ordinary activities
After Taxation 119,843 62,964
Proposed dividends (44,100) (36,750)
Retained Profit
75,743 26,214
FINANCIALSUMMARY
2005 2004
N’000 N’000
Turnover 1,304,641 1,051,917
Profit Before Taxation 173,399 111,894
Profit After Taxation 119,843 62,964
Networth 351,433 275,690
Fixed Assets 189,372 152,677
Total Assets 1,015,146 887,452
Current Assets 825,774
734,775
Current Liabilities 663,713 611,762
FINANCIAL ANALYSIS
2005 2004
Gross Profit % 53 49
Net Profit % 13 11
Current Ratio 1: 1 1 : 1
Acid Test Ratio 1: 1 1 : 1
Returns on Total Assets 2 4
Return On Capital Employed 6 8
Operating Expenses / Total
Revenue 53 56
Turnover Rate 4 2
COMMENT
The Financial analysis focus on
the profitability, Liquidity and Financial Stability of the Subject.
Its Profitability ratio is
satisfactory; it also recorded N221,
738 and N159, 187 in year 2005 and
year 2004 respectively as working Capital.
Its Liquidity ratio indicates
the ability of the company to meets its financial liabilities.
|
RISK
RATING ASSESSMENT: |
Appears to have a sound financial
base with a strong capability to meet trading commitments; liquidity looks healthy. |
|
CREDIT
LINE AMOUNT: |
NORMAL |
|
0CREDIT
LINE OPINION: |
Subject appears to be a credit
worthy organization. |
DIRECT INTERVIEW
NAME:
Nil
POSITION: Secretary to Mrs. A. O.
Afolabi (Executive Director of Finance)
DATE OF
INTERVIEW: 12th March 2007
Subject principals
declined information; therefore, details in this report are culled from public
sources.
INDUSTRIAL OVERVIEW/ OPERATING
ENVIRONMENT
The Parts Assembly
industry in Nigeria has grown in size and complexity since the commencement of
the present administration. The industry has become more sophisticated
technically, financially and in terms of the required skills and expertise.
The government
policy in using indigenous contractors to execute her projects has gone a long way
in increasing the capital base, greater utilization of Nigerian human and
material resources in this sector.
CMT REPORT (Corruption, Money
Laundering & Terrorism)
Public Notice from
various sources including but not limited to: The Courts, Nigerian Prison
Service, Economic & Financial Crimes Commission (EFCC), National Drug Law
Enforcement Agency (NDLEA), National Agency for Food & Drugs administration
and Control (NAFDAC), Independent Corrupt Practices and Other Related Offences
Commission (ICPC) Etc.
No negative information on subject from the
above agencies as at the time of compiling this report.
COMPANY LOCATION
The company is
located at 1, Ighodaro Road, Jericho Ibadan, Oyo State
OFFICIAL REMARKS
Having carried out
all necessary research on subjects, our investigations revealed that, the
company, Longman Nigeria Plc is duly
registered in Nigeria, with a registered address, 63, Marina, Lagos. While the
operational office address is Felix Iwerebon House, 52, Oba Akran Avenue Ikeja
Industrial Estate Lagos.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)