Industrial & Medical Gas Nigeria Plc (IMG) has announced a massive expansion program to sustain its growth performance, according to the company’s Acting Chairman, Aminu Ado.
He disclosed this to shareholders at the company’s 64th Annual General Meeting (AGM) in Lagos, where shareholders approved a 50 kobo dividend for the 2023 financial year, which will be paid on Tuesday July 2, 2024. The company share closed at N11.90 kobo on Friday June 28, 2024.
Despite the company’s impressive performance, shareholders expressed concerns about the small size of the meeting venue, which the directors apologized for and promised to address.
Shareholders who had the opportunity to ask questions and make comments at the meeting praised the board for the company’s impressive performance. However, they also requested a higher dividend payout, considering the company’s earnings per share.
Additionally, they sought clarification on the low return on revenue and expressed concerns about the company’s Corporate Social Responsibility (CSR) initiatives, which they felt focused too much on private schools. The shareholders urged the company to also consider public schools in their CSR efforts.
In response, the Acting Chairman outlined the company’s ambitious plans for the next few years.
Despite the challenges posed by the naira devaluation and its impact on the business environment, he expressed optimism about the company’s prospects in 2024.
He highlighted the company’s strategic focus on capital investment, market expansion, new product development, and cost reduction measures.
He emphasized that these initiatives will drive significant improvement in the company’s performance in the foreseeable future.
The Managing Director/CEO, Ayodeji Oseni, expressed optimism about the company’s future prospects, assuring investors that the company is committed to increasing profitability through strategic capital expenditures that will generate additional revenue and maximize shareholder value. He emphasized that the company’s future looks brighter than its past.
Regarding Corporate Social Responsibility (CSR), Oseni revealed that the company is collaborating with agencies to explore ways to include public schools in their support programs, ensuring that resources are utilized effectively and ethically.
The Finance Director, Adeshina Alayaki, addressed concerns about low return on revenue and high electricity costs, explaining that some customers who rented cylinders had gone out of business.
He also noted that the company’s use of natural gas, which is subject to foreign exchange costs, has impacted their operations.
Despite these challenges, the company remains committed to its growth strategy, focusing on consolidation, innovation, and cost management to achieve sustainable profitability.
Alayaki emphasized that the company will continue to navigate the difficult operating environment, leveraging opportunities and production efficiencies to drive growth.
Industrial and Medical Gases Nigeria plc, listed on the Nigerian Stock Exchange, is the country’s largest industrial gases company, boasting an extensive network of production plants in Lagos, Port Harcourt, and Kaduna. With a rich history spanning 65 years, the company has established itself as a leader in the industry, offering a diverse range of gases and support services, including pressure and leak testing, medical laboratory pipeline construction, and vendor management inventories.
