Independent Director, Caverton Offshore Support Group Plc, Raymond Ihyembe(left); Company Secretary, Ms. Amaka Obiora; Chairman, Dr. Aderemi Makanjuola; and Chief Financial Officer, Mrs. Titilola Adigun, at the 11th annual general meetings of Caverton Offshore Support Group Plc, held at Caverton Helipad, Victoria Island, Lagos yesterday.
Caverton Offshore Support Group Plc, Nigeria’s foremost indigenous offshore logistics services provider, increased its net profit by 14 percent from N3.8billion to about N4.35billion in the financial year ended December 31, 2019.
Caverton Offshore which shares are listed on the floor of the Nigerian Stock Exchange (NSE), in the review financial year also declared a dividend of 20kobo per share for shareholders out of its 128kobo Earnings per Share (EPS) portfolio.
The Group’s Earnings per Share moved up by 14.3 percent from 112kobo per share in 2018 to 128kobo per share in 2019.
It would appear that Caverton Group is prepared for the current economic situation as the Board of Directors have taken a proactive decision to shore-up its revenue reserves. In the financial year ended December 31, 2019, the group’s revenue reserves increased by 37 percent from N9.49billion in 2018 to N12.96billion. Shareholders’ fund also witnessed an increase of 20 percent, from N17.94billion in 2018 to N21.45billion in the review period. Financial analysts are of the opinion that the decision of Caverton group to reduce its exposure to banks in terms of borrowing in the review financial year was commendable, especially as it continues to plough-back profit to fund its operations in the years ahead.
Chairman, Caverton Offshore Support Group Plc, Dr. Aderemi Makanjuola, speaking about the result at the virtual 11th Annual General Meeting of the group held on Thursday, June 25th, 2020 in Lagos, said: “Despite the onerous challenges we faced due to the changing economic environment, 2019 was indeed a good year for our company as we showed improved performance in most financial indices.”
Makanjuola said the performance reflected continued effective execution of the group’s bold strategy as it continues to innovate and break barriers to boost the bottom line in building a customer-centric group ready to generate sustainable long term value to its shareholders.
“The focused leadership, concerted effort of your agile and devoted workforce, and continuing support from our stakeholders enabled us to achieve this feat,” he added.
Makanjuola hinted that the future is bright for Caverton Plc, as he disclosed that it recorded another breakthrough in the financial year ended December 2019. Specifically, he said, a new 7 years contract for the provision of five aircraft to support Shell Nigeria Exploration and Production Company and Shell Petroleum Development Company Limited was won after a successful bid. “This award demonstrates the quality of character and tenacity of purpose of our management team and this laudable development also represents true commitment towards ensuring the seamless running of the nation’s oil and gas industry and by extension the Nigerian economy.”
Another notable mileage achieved by Caverton in the 2019 financial year was the acquisition of Flight Simulator Training Device (FSTD) being the first in Nigeria and the African continent at large. The group said it aims to leverage on the increase of ‘AW139 Operators’ to create business value. The FSTD according to the Caverton group is a new aspect of its business that focuses on training. According to the Chairman, the new business segment will fall under the purview of Caverton Helicopters Training Division.
Chief Executive Officer, Caverton Offshore Support Group Plc, Olabode Makanjuola, however, hinted that financial performance in the ongoing financial year ending December 31, 2020, will be affected by the Covid-19 Pandemic, especially in the second half of the year. But he was confident that the group is well-positioned to continue to deliver good results in the years ahead. His words: “While seizing opportunities to build and grow our businesses, we aim to anchor our position as the trusted and preferred logistics solutions partner in the industry.”
Mr. Boniface Okezie and Mrs. Bakare Bisi, representatives of Shareholders’ group at the meetings, commended Caverton Plc for its stellar performance in 2019 particularly for being able to pay a dividend. They urged the board of directors to ensure that the welfare of staff is well taken care of as they pleaded with the Chairman to ensure that they are retained in the company despite challenges posed by Covid-19 pandemic on the country’s business climate.