New Dawn For Ellah Lake Shareholders … As Management Unveils Growth Plan

Photo Caption: L-R: Jamie Rixton, Chief Agronomist, Ellah Lakes Plc; Wole Onasanya, Chief Financial Officer, Ellah Lakes Plc; Chuka Mordi, Chief Executive Officer, Ellah Lakes Plc; Olumide Boluwole, Divisional Head, Listings, Nigerian Stock Exchange; Mr. Enot Ogbebor, Director, Ellah Lakes Plc and Frank Ellah, Director, Ellah Lakes during the announcement of Ellah Lakes Plc’s listing of an additional 1.88 billion shares on the Nigerian Stock Exchange (NSE).

After years of inactivity due to challenging economic environment which resulted to a five years cumulative loss of N96 million, a new dawn beckons for shareholders of Ellah Lakes Plc, with the successful acquisition of Telluria Farms and the listing of additional 1,880,000,000 shares on the main board of the Nigerian Stock Exchange (NSE), on Monday June 17, 2019.

For shareholders that have waited patiently, no doubt this a light at the end of their investment tunnel as hope of getting returns for their labour is getting clearer. This was shown by the new board of directors and management at the company facts behind the listing in Lagos.

While responding to stockbrokers and financial journalists questions on the company’s strategies to deliver returns to existing and prospective investors, the Chief Financial Officer, Wole Onasanya explained that Ellah Lakes is moving from fish business to take full advantage of opportunities in the Nigerian oil palm value chain.

He pointed out that the company’s three years target is to acquire 30,000 hectares of land by 2022, and establish 20 MT/hr capacity of palm oil milling and 20 MT/hr capacity of palm oil refining plants. Assuring that they expect to grow their land bank to 10,000 hectares by the end of 2019 and 45,000 in 2025.

On the company’s financial projections, Onasanya said the company’s earnings will be negative in 2019 and 2020 due to legacy issues. However, revenue will witness growth starting from 2021 with N518 million revenue, N2.627 billion in 2022, N16.533 billion in 2023, N25.578 billion in 2024 and N30.838 billion in 2025.

Commenting on the company’s expected growth and business opportunities, the Chief Executive Officer, Chuka Mordi, said: “We are pleased to be embarking on this new phase in the journey of Ellah Lakes Plc. With the business combination of the assets of Telluria, Ellah Lakes is in a great position to deliver value to all shareholders”.

Mordi pointed out that the enlarged Ellah Lakes is built on a foundation of growth to meet the needs of Nigerians for agricultural products, both as retail consumers and as industrial partners. “We believe and expect to partake in Nigeria’s growth story as we continue to support the communities we operate in, and all our stakeholders”

On his part, the outgoing Chief Executive Officer, Frank Ellah, said “Today marks a milestone in the history of our company’s. After a number of years of challenging operational performance and trading illiquidity, with our new management in place, I am pleased to see the new trajectory of our growth as a business. We welcome existing and new shareholders to participate in our growth story”

Currently trading at N4.26 kobo, Ellah Lakes Plc was one of Nigeria’s foremost agriculture businesses, specialising in Fish Farming. It was incorporated on July 2nd 1980 and was listed on the Nigerian Stock Exchange (NSE) on January 14th 1993, Ellah Lakes acquired Telluria in order to diversify its product offerings in the agribusiness sector.

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