Wednesday, July 25, 2012 / The Analyst / Proshare Research

Companies in the NEWS Today – PZ Plc, First Bank Plc, Flour Mills Plc, Sovereign Trust Insurance Plc, Unity Bank Plc, Guaranty Trust Assurance and Oando Plc

PZ Cussons’Nigeria Plc: PZ Cusson’s Plc, the parent company of PZ Cussons’ Nigeria Plc is reported to have been depressed in profit by 55%. According to Reuters, the British company has been rocked by religious violence and an eight-day strike against the removal of the fuel subsidy in January. Revenue from Asia fell by 10 per cent hurt by difficult trading conditions in its Australian home care category, the company said. The company counts Australia in its Asia segment.



The industrial goods firm recorded -57.58% losses in 2008 while it went up by a whopping +122.42% and +26% in 2009 and 2010 respectively. The stock went down by -11.11% losses in 2011 while it has recorded a depressing performance in 2012 with -10.64% YTD losses recorded so far.

First Bank Nigeria Plc (FBN): Following the release of FBN’s half year result declared yesterday, the Group Managing Director, Mr. Bisi Onasanya has commented, “First Bank’s results continue to demonstrate the resilience of our business, given the backdrop of global economic uncertainty, declining oil prices and its resulting impact on the domestic economy.” Onasanya says the bank is pleased with the recorded progress in its transformation agenda, focused on driving efficiencies in the banking business.



The bank’s stock closed negative throughout  the periods of review as it records -52.77%, -33.44%, -2.28% and -35.18% in 2008, 2009, 2010 and 2011 while it has recorded positive YTD performance of +33.26% gains in 2012 so far. The company recorded positive growths in gross earnings and PAT in its Q1 2012 financials. 

Flour Mills of Nigeria Plc has announced a new organisational structure and a series of investments aimed at bolstering its strong market position in the food and agro-allied sectors. In the new modification, Emmanuel Ukpabi, group managing director announces that the company now focuses on establishing profitable ventures crucial for the Nigerian economy and society. He added that the new boss of the Food and Division, Ed Jackson will oversee the food manufacturing division and be responsible for flour and rice milling, sugar refining, pasta products and other processed foods, all wholesale and retail sales, distribution and logistics operations, including BAGCO operations.



The stock share price went down by -61.27% in 2008 while the losses were erased in 2009 and 2010 with +12.54% and +91.67% price appreciation respectively. The stock closed 2011 with -5.14% losses while it has recorded -15.97% YTD losses so far in 2012. In its latest Audited result, the firm records positive figures in both turnover and PAT.

Sovereign Trust Insurance Plc has continued with the unwavering commitment to keeping its own promise in the insurance contract, having met its claims obligation to customers in excess of N400 million in the first half of the year.This development, which analysts describe as a measure of stability and confidence is what distinguishes one insurance company from another



The insurance outfit recorded price decline of -72.34% and -57.26% in 2008 and 2009 respectively while it closed flat in subsequent years. The stock currently trades at the nominal price of 50k while it has recorded flat position so far in 2012. The positive performance recorded in 2011 Audited results, if sustained, can encourages potential investors to take position in the stock.

Oando Nigeria Plc has announced that its proposed reverse take-over of Canadian company Exile Resources closed yesterday. Exile is a partner alongside Oando in OML 90. The summary of the deal involves a NewCo called Oando Energy Resources (OER) being formed from the consolidation of 1 share in OER for every 16.28 shares of Exile.



The Oil & Gas stock recorded -34.91% declines in 2008 while parts of the losses were erased in 2009 with +17.78% gains recorded. It went down by -29.78% and -66.67% in 2010 and 2011 while -33.23% YTD losses has been witnessed so far in 2012.

Unity Bank Plc has begun implementation of a programme of workforce reinvigoration aimed at raising productivity and competitive position in the financial industry. With the implementation of the programme, the bank has announced staff promotions, retirements and would embark on new recruitments to fill vacancies.



The stock price went down by -67.50% and -70.63% in 2008 and 2009 respectively while +42.86% gains were recorded in 2010. 2011 saw -54.17% losses as the 2012 YTD performance stands at -9.09% losses and the price currently trades at 0.50k nominal value.

Guaranty Trust Assurance Plc has assumed a new corporate identity. GT Assure said it has changed its name to Mansard Insurance Plc. The Chief Client Officer of the firm, Tunde Runsewe, said, the rebranding marks the conclusion of the company’s evolution from a subsidiary of a leading Nigerian bank into an independent Insurance Company.



The insurance stock closed negative throughout the periods of review as it records --31.53%, -29.30% and -6.58% in 2009, 2010 and 2011 while it has recorded positive YTD performance of +12.68% gains in 2012 so far. The company recorded positive growths in gross earnings and PAT in its Q1 2012 financials. 

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