Storm in the Marketplace … Increasing cost of operations – power, fuel, raw materials High inflation – still double digits at 17.5% average GSM weakening demand in other sectors Poor road infrastructures High cost of funds – re-bank consolidation
Storm in the Marketplace … Strikes occasioned by high fuel prices Dearth of good and committed people Still poor image of Nigeria to attract FDIs … there are still unmet gaps and opportunities to exploit!
Rights Issue -reducing the debt burden by N1.7billion -preparing for real growth More Cash business - franchising – Mr. Biggs, Innscor brands - debt collection Facts Behind the Figures
Winning With People … Attracting good people and retaining them is key success factor -improved corporate performance -competitive remuneration -performance-driven culture -retention strategies – career path, training & development, welfare
Digging new wells … creating the future! Strategies … 1.Focused diversification in 2 or 3 core areas (Vision & Mission-driven) -Food and food retail -Logistics
-Expanding QSRs portfolio to increase customer base – Biggs, Menu Masters -Manufacturing upgrade – snacks, ice cream -Broadening third party logistics – MDS Digging new wells … creating the future!
Digging new wells … creating the future! Strategies contd. 2.Consolidate market shares in existing business 3.Supply Chain Excellence
N4.3billion Proceeds ….. Rights Issue Nm Fast Food (Restaurants (Mr. Biggs + Innscor Brands)1,780 Expansion of MDS 540 Upgrade of IT & Financial Systems and Controls 300 Debt Reduction1,720
2005 & 2006 Forecast 20052006 Capital Expenditure 3,2503,000 Shareholders Funds 13,32915,152 Net Current (Liabilities)/Assets 400450
2005 & 2006 Forecast 20052006 Sales to third parties 30,57937,000 Profit from Operations 2,4053,006 Exceptional items 12050 Profit after tax 1,8112,200 Earnings per share (Kobo) 141172 Dividend Per Share (Kobo) 100100+ * Turnover including franchise (2005 = N32,279; 2006 = N39,900)