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CAP RECORDS IMPRESSIVE GROWTH AT 50
May 16, 2007

CAP PLC, a subsidiary of UAC of Nigeria Plc has recorded an impressive operational performance for 2006 and is paying a special dividend of 200 kobo per share to its shareholders to mark the company's 50th anniversary.

The company is also paying a normal dividend of N210 million which in the words of Alhaji Mohammed Koguna, Chairman of the company “represents 100 kobo for every ordinary share of 50 kobo, an increase of 43% over 70 kobo per share paid in 2005. For the first time in the history of our company, the Board decided to pay 50% of this sum in December 2006 as interim dividend”.

Alhaji Koguna justified the payment of the special dividend thus: “the Company's liquid cash resources are in excess of our medium term requirement, your Board, in line with the company's corporate social responsibility policy, resolved to recommend this special dividend''.

He attributed the impressive performance to CAP's adoption of a ‘focused growth' policy. The paints category delivered solid sales growth of 44% over 2005 and surpassed planned target by 20%. The Agrochemicals and Household categories declined in performance by 80% and 5% respectively. Overall, the company recorded a turnover growth of 30% to attain N1.99 billion.

Trading Profit grew 40% over 2005. Profit Before Tax grew 51% and Profit After Tax stood at N312.7 million representing a growth of 55% over the previous year and included an extraordinary item of N43m arising from the sale of Aba office property.

Alhaji Koguna told shareholders that due to CAP's efficient management of resources, inventory levels dropped by 54% compared to 2005 while cash flows from trading rose by almost N500 million. He announced the company's planned divestment from the Household Products category as it did not conform to the company's vision “to be number one in our chosen markets…”. The price of the company's share closed at N25 at the end of 2006, a rise of 189% within one year.

CAP, the Dulux technological licensee of I.C.I. for West Africa won the Nigerian Stock Exchange merit award and retained the Pearl award for sector leadership in Chemical and Paints. The company launched its CSR policy in 2006 and was also accepted as a participant in the U.N.Global Compact initiative.