MIRA
INFORM REPORT
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Report Date : |
12.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
CHEMICAL AND ALLIED PRODUCTS PLC |
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Formerly Known as : |
ICI (NIGERIA) LIMITED (TILL 1976) |
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Registered Office : |
24, Commercial Road, Apapa, Lagos. |
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Country : |
Nigeria |
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Date of Incorporation : |
1957 |
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Com. Reg. No.: |
RC: 4551 |
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Legal Form : |
Public Limited Company (PLC) |
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Line of Business : |
Manufacturing and Marketing of Architectural Paints and
Protective Industrial and Marine Coatings |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name of the company
CHEMICAL AND
ALLIED PRODUCTS PLC
OPERATIONS
Subject is into Manufacturing
and Marketing of Architectural Paints and Protective Industrial & Marine
Coatings *Manufacturing and Marketing of Personal & Household Products
*Marketing and Application of Fire Retardants, Fire-Retardant Coatings, Fire-
Stopping Materials and Fire Extinguishing Materials * Unique Service of Paints
Application
In Nigeria, subject is a major concern in this sector
Subject is located
in a commercial/business area at 2, Adeniyi Jones Avenue, Ikeja, Lagos.
RISK FACTORS
Credit Risk
RISK RATING
ASSESSMENT: Apparently
healthy, with adequate working capital to meet normal commitments
CREDIT LINE
AMOUNT: Normal
CREDIT LINE
OPINION: Subject appears to be a credit worthy organization
External
Constraints:
Subject operates in an environment highly technologically driven with
cyber fraudsters posing the greatest threat to the business. Coupled with this,
the loose information technology system security in the country is also highly
discouraging.
Internal
Constraints:
Subject is not under any constraints, either management or office space
IDENTIFICATION
COMPANY NAME: CHEMICAL
AND ALLIED PRODUCTS PLC.
FORMER NAME: ICI (NIGERIA)
LIMITED (TILL 1976)
REGISTERED ADDRESS: 24, Commercial Road, Apapa, Lagos.
HEAD OFFICE
ADDRESS: 2, Adeniyi Jones
Avenue, Ikeja Industrial Estate, Ikeja,
Lagos
TELEPHONE: 234-1- 4714050, 4805008, 2703240-3 (4
Lines)
FAX: 234-1- 2707592
E-MAIL: careline@capplc.com
WEBSITE: www.capplc.com
Currency:
All monetary quoted in this report are in Nigerian Naira, the local currency or
unless otherwise stated. The exchange rate is N118 to 1 US $.
SUMMARY
NATURE OF PREMISES: Owned, office
space at head office occupying approximately 1,300 square meters
DATE INCORPORATED 21st
September, 1965
YEAR BEGAN
OPERATION: 1957 (As ICI Exports Limited)
LEGAL FORM: Public Limited Company
(PLC)
CONVERTED TO PLC 1991
REGISTRATION NO: RC: 4551
AUTHORIZED SHARE CAPITAL
150 Million (Ordinary Shares of 50k Each)
210 Million (Paid Up)
STOCK EXCHANGE LISTING
1978*First Tier
Chemical & Paint Group
SHAREHOLDING
STRUCTURE
Individuals - 48.9%
Employees - 1%
UAC of Nigeria Pc - 50.1%
Listed on the
Nigerian Stock Exchange in 1978
STAFF
STRENGHT: 220
OWNERSHIP
- Alh (Dr.) M.H. Koguna
- Mr. Abdul A. Bello
- Asiwaju Akintunde Asalu
- Mrs. Omolara Elemide
- Mr. Ayorinde A. Thomas
- Mr. Solomon Aigbaavboa
DIRECTORS
- Mr. Larry Ettah
- (AG. Chairman) Mr. Ettah
is a one time Divisional Meals/Component Director, UAC Foods Division,
Ag. Divisional Managing Director Fast Foods, pioneer Divisional Managing
Director Mr. Biggs Division, appointed Head of Human Resources and member
of the Board of Directors of UAC of Nigeria Plc on the 1st of January
2004. He became Group Managing Director/CEO of UAC of Nigeria Plc on the
1st of January 2007. He is the Chairman of UNICO CPFA Limited.
- Mr. Abdul A. Bello
- Asiwaju Akintunde Asalu
- Mrs. Omolara Elemide
- Mr. Ayorinde A. Thomas
- Mr. Solomon Aigbaavboa
- Alh (Dr.) M.H. Koguna
MANAGEMENT
1. Mr. Abdul A. Bello Managing Director /C.E.O
2. Mrs. Omolara Elemide Finance Director
3. Mrs. Oluwakemi Ogunubi National customer Service
MANAGERS
- Mrs. Aderonke A. Bakare- Human Resources Manager
- Mr. W. Idowu Sotomi-
Supply Chain Manager
- Mr. A. Olusunmade- Technical Operations Manager
- Mr. Kareem O. Salami-
Technical Training/Export Manager
- Mr. Olarenwaju Sokunbi-
Information Technology Manager
BACKGROUND
Chemical and Allied Products plc evolved from the world-renowned British multinational Imperial Chemical Industries plc, which formalized 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 Indigenization Decrees in 1972 and 1977, ICI Nigeria Limited at first sold 40 percent but later 60 percent 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 indigenization. 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% shareholding in CAP plc when it sold 35.7% of the equity to UAC of Nigeria Plc and the rest to the Nigerian public on the floor of the Nigeria Stock Exchange.
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.
COMPANY LOCATION
The company is located at 2, Adeniyi Jones
Avenue, Ikeja Industrial Estate, Ikeja, Lagos
TRADE REFERENCE
NACCIMA, MAN, LCCI, Nigerian-British Chamber of Commerce,
Nigerian-South African Chamber of Commerce, Paints Research Association, (U.K)
BRANCH OFFICES
Nationwide
TECHNICAL PARTNERSS
Imperial Chemical Industries Plc (U.K)
Flame Guard B.V. of Netherlands
INDUSTRIAL AWARDS WON
NIS ISO 9001:2000 Certification
NIS GOLD Awards (2002, 2003, 2004, 2005)
AUDITORS
PricewaterhouseCoopers
BANKERS
- Zenith Bank Plc
- Union Bank of Nigeria Plc
- Skye Bank Plc
- First Bank Plc
REGISTRARS
UAC Registrars Limited
PAYMENT REFERENCES
Subject has both local and international Payment references
PERFORMANCE RANKING
* Quality of Management: GOOD
* Ethics & Integrity: GOOD
* Ownership Structure: GOOD
TYPES OF CUSTOMERS: *Group of Companies * General Public*
PHYSICAL VISIT
- Company Premises
- Corporate Affairs Commission
FINANCES
Below is subject financial information
available from public sources.
Earnings, net assets and dividend per 50k share have been computed on the profit after taxation based on the number of ordinary shares in issue. The figures for 2003 to 2006 have been adjusted to reflect the changes in the issued share capital up to December 2007. The dividend per share reflected in 2007 has been proposed.
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2007 |
2006 |
2005 |
2004 |
2003 |
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REPRESENTED
BY: |
N'000 |
N'000 |
N'000 |
N'000 |
N'000 |
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Share capital
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105,000 |
105,000 |
105,000 |
105,000 |
84,000 |
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Share premium
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28,400 |
28,400 |
28,400 |
28,400 |
49,400 |
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Capital
reserve |
0 |
3,529 |
3,529 |
3,529 |
3,529 |
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General
reserve |
867,419 |
720,136 |
659,388 |
457,818 |
411,862 |
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Shareholders'
fund |
1,000,819 |
857,065 |
796,317 |
594,747 |
548,791 |
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ASSETS
EMPLOYED |
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Fixed assets |
144,764 |
172,347 |
161,168 |
177,747 |
146,498 |
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Trade term
investment |
28,684 |
47,001 |
53,543 |
42,456 |
8,450 |
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Net current
Assets/(Liabilities) |
933,218 |
727,572 |
657,792 |
463,792 |
480,903 |
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1,106,665 |
946,920 |
872,503 |
683,995 |
635,851 |
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Retiremen
Benefit Obligations |
(101,942) |
(85,952) |
(72,283) |
(85,345) |
(83,157) |
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Deferred
taxation |
(3,903) |
(3,903) |
(3,903) |
(3,903) |
(3,903) |
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1,000,819 |
857,065 |
796,317 |
594,747 |
548,791 |
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RESULTS
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Turnover |
1,969,971 |
1,986,247 |
1,525,426 |
1,466,762 |
1,203,038 |
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Profit before
tax |
130,139 |
456,400 |
302,660 |
250,842 |
208,634 |
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Taxation |
2,091,930 |
(143,652) |
(101,089) |
(89,387) |
(56,852) |
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Profit after
tax |
566,688 |
312,748 |
201,571 |
161,455 |
151,782 |
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Dividend |
215,160 |
210,000 |
147,000 |
(115,500) |
(84,000) |
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Retained
profit |
672,283 |
102,748 |
54,571 |
45,955 |
67,782 |
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STATISTICS
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Kobo |
Kobo |
Kobo |
Kobo |
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Earnings per
50k share |
167 |
149 |
96 |
77 |
90 |
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Earnings per
50k share (adjusted) |
167 |
149 |
96 |
77 |
72 |
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Net assets
per 50k share |
477 |
408 |
379 |
283 |
327 |
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Net assets
per 50k share (adjusted) |
477 |
408 |
379 |
283 |
261 |
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Dividend per
50k share |
375 |
100 |
70 |
55 |
50 |
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Dividend per
50k share (adjusted) |
375 |
100 |
70 |
55 |
40 |
RATING ASSESSMENT: Apparently
healthy, with adequate working
capital
to meet normal Commitments
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CREDIT LINE AMOUNT: Normal |
CREDIT
LINE OPINION: Subject
appears to be a credit worthy
organization
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INDUSTRIAL OVERVIEW/ OPERATING ENVIRONMENT
Manufacturing and Importation of goods are major business in Nigeria, in
fact, prior to the new civilian regime, this used to be the business for the
majority of businessmen and women alike. But the story is slightly different
now, as the Federal government has placed ban on the importation of certain
goods into Nigeria.
However, for those who bring in goods that are not prohibited by the law
of the country do have better time in terms of turnover.
There
are many opportunities in this sector of the economy. This could only be
achieved through Foreign Companies joint ventures with Nigerian companies and
adequate provision of Training/Technical Assistance - Provision of training
facilities for a large work force indirectly engaged in the Sub-Sector of the
economy. This sector of the economy has great potentials for intending investors.
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.
OFFICIAL REMARKS
Having
carried out all necessary verifications on subject, our investigations revealed
that, the
company,
Chemical and Allied Products Plc is duly registered in Nigeria, with a
registered address
at 24, Commercial
Road, Apapa, Lagos while the head office address is located at 2,
Adeniyi Jones
Avenue, Ikeja
Industrial Estate, Ikeja, Lagos-Nigeria.
Subject is into genuine business
transactions. Subject is an ongoing
concern.
All information contained in the report are
mostly from secondary sources.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.42.67 |
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UK Pound |
1 |
Rs.80.92 |
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Euro |
1 |
Rs.63.71 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)