Despite the scourging effects of Covid-19 lockdown on hotels and hospitality businesses, the shareholders of Ikeja Hotel Plc has approved that N0.05 per ordinary share dividend, be declared for the year ended December 31, 2019, following the approval of the audited financial statements for the year ended December 31, 2019.
Ikeja Hotel in 2019, for the period ended 31 December 2019, recorded a total turnover of N12.516 billion, 5.38% decline from N13.227 billion in 2018. The company profit dropped by 24.46% to N834.946 million in 2019 from N1.105 billion reported In 2018.
The shareholders made this resolution at the company’s 43rd Annual General Meeting (AGM), held on Thursday, August 13, 2020 at Sheraton Lagos Hotel, 30 Mobolaji Bank Anthony Way, Lagos by 10 am.
This was contained in a corporate action disclosure sent to the Nigerian Stock Exchange (NSE).
Also at the AGM, shareholders resolved that allotment of 83,571,428 (Eighty-three Million, Five Hundred and Seventy-one Thousand, Four Hundred and Twenty-eight) units of ordinary shares at N1.12k per share to Next International Limited be approved subject to SEC and investor approval.
Other resolutions passed at the meeting include;
- That the following retiring Directors be re-elected: Dr Alexander Thomopulos (who has attained the age of 73 years), Mr Ufuoma Ibru, Mrs Fadeke Olugbemi
- That the appointment of the former Chief Operating Officer, Mr Theo Eniola Netufo as Group Managing Director be approved.
For the period ended 30 June 2019, Ikeja Hotel paid an interim dividend of 3kobo per 50kobo ordinary share.
Ikeja Hotel revenue was massively impacted by the movement restrictions imposed to contain Covid-19 in the first half of 2020, as the revenue slumped by 49.98% to N2.906 billion from N5.809 billion registered in the same period in 2019.
The company registered a loss of N777.055 million a 376.22% slump from a profit of N341.853 million in the same period in 2019.
Ikeja Hotel is into the business of hotel operation and provision of catering services. The company was incorporated on November 18th 1972 and was listed on NSE on September 6th 2007.
The share price has remained unchanged at N0.84 per share since 14 August 2020. YTD, the share price is down by 25.00% while in 2 years and five years, it has lost 69.89% and 69.00% of its value respectively.