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UACN REALIGNS BUSINESSES FOR SUSTAINABLE GROWTH
May 16, 2007

UAC of Nigeria Plc (UACN) has begun a new business development phase aimed at realigning the businesses in the conglomerate and concentrates more on key growth drives.

Mr. Larry Ettah, Group Managing Director of UACN said the company has moved beyond the turn-around phase that saw revitalization at the turn of the century to a renewal phase where the main concern is sustainable growth into the future.

According to him, the renewal phase involves the realignment of the conglomerates businesses to fit into the strategic plan of being food-focused business and to mobiles human and material resources of the group to achieve this intent.

He said the businesses under the conglomerate are being evaluated and positioned to enable the group achieve its corporate objective of being number one in every area of operation.

He outlined that as a food-focused business, the group will continue to make deliberate discipline investment choices that are centered around food while simultaneously reviewing its portfolio to optimize opportunities that could leverage growth and ensure that the overall corporate strategy supports the food business significantly.

He noted that the group decided to focus on the food business citing the relevance of the property and logistic businesses to the success of the food business.

Ettah said the conglomerate has already made significant investments in line with the strategic focus on the food business pointing out that more than N1 billion is being invested in the flavoured milk and yogurt business.

“We have also invested in expanding our ice cream business in the import category. We are also taking significant investment in our Grand Cereals business, Ettah said, remaking that they recognize that a lot of farmers have been veering into aquaculture and these is the need to also provide them with quality farming inputs, so they are working on launching a world-class brand in that category to be sure that local farmers have available inputs for that.

He also said he company was enhancing capacity in the company's water business and also expanding its property profile and in its restaurants business, adding that they are also renovating some of our existing locations and converting them into destination rather a than just single sore offering.

The UACN Group Managing Director said contrary to feelings in some quarters that he conglomerate is conservative in terms of dividend and bonus issue, the board is desirous of maintaining good sustainable dividend flow for shareholders which accounts forth decision to retain much earnings in the business and to hold on from scrip issue until when the cash flow would be able to accommodate this in the light of board's commitment to high dividend.

“What is important to us now is that we are going to grow this business for better shareholders' return and enhanced value to the shareholders. How t hat value will be distributed whether is through share price appreciation, or through dividend growth or through bonus issue will be determined,” Ettah assured.

He further assured that the conglomerate would post impressive results in the current business year noting that there are early sign that justify management confidence and assurance on better return this year.

Culled from- Financial Standard
Taofik Salako Correspondent