Chams Plc (NGX: CHAMS) on Monday announced that the company has received regulatory approval and has completed the Balance Sheet Restructuring exercise, which was approved by a special resolution at the Extra-Ordinary General Meeting of the Company held on April 24, 2018.
This was disclosed by the company in statement signed by Yetunde Emmanuel Company Secretary/Head, Legal Services.
Chams Plc said that it created a Balance Sheet Restructuring Account (BSRA) with the aim of effecting all necessary accounting entries.
According to the company, N5,458,750,000 as at October 31,2017 was transferred from the Share Premium to BSRA as a credit while the negative balance of N5,458,750,000 as at 31st October 2017 was transferred from the Retained Earnings Account to the BSRA.
The share price of Chams Plc is flat at N0.20 per share – the floor price (the lowest possible price a stock can trade) on the Nigeria Exchange at the time of this report.
In the first quarter of 2021, Chams Plc reported an increase in revenue to N734.31 million from N525.86 million in Q1 2020.
However, the loss after taxation rose to N42.53 million in Q1 2021 from a loss of N33.80 million recorded in Q1 2020.
In 2020, Chams reported a total revenue of N2.11 billion and a loss after tax of N944.88 million.
The statement read: :This is to inform the Nigerian Exchange Limited (The Exchange) and the investing public that following the receipt of regulatory approvals, the Balance Sheet Restructuring exercise by Chams Plc which was approved by a special resolution at the Extra-Ordinary General Meeting of the Company held on April 24, 2018 has been completed. The exercise was executed in the following manner:
- The Balance Sheet Restructuring Account (“BSRA”) was created for the purpose of effecting all necessary accounting entries in line with statutory requirements;
- The sum of N5,458,750,000 as at October 31,2017 was transferred from the Share Premium as a credit to the BSRA;
- The negative balance of N5,458,750,000 as at 31st October 2017 was transferred from the Retained Earnings Account to the BSRA;
- The Solicitors to the Balance Sheet Restructuring sought an order or orders to the following effect from the court;
- An order of the Court confirming the above stated Balance Sheet Restructuring of Chams Plc was approved by Special resolution of its shareholders;
- All incidental, consequential and supplemental orders as are necessary to ensure that the Balance Sheet Restructuring were fully and effectively implemented; and
- The Directors of the Company were authorized to take all actions that were within their powers and/or necessary to effect the Balance Sheet Restructuring.
About Chams Plc
The company was incorporated as a limited liability Company on 10 September 1985 and became a
public Company on 4 September 2008.
The Company was listed on the floor of the Nigerian Stock Exchange on 8 September 2008.
The principal activities of Chams Plc and its subsidiaries include identity management, payment collections and transactional systems. The Company’s registered office is located at 8, Louis Solomon Close, Victoria Island, Lagos.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.