Capital Hotels to pay 7k dividend

June 22, 2012 by John Alechenu, Abuja Leave a Comment

Shareholders of Capital Hotels Plc, owners of Sheraton Abuja Hotel, have approved a seven kobo per share dividend payout for its shareholders for the year ended December 31, 2011.

The decision was taken at the company’s 31st Annual General Meeting in Abuja, on Wednesday. The payout is for the year ended December 2011.

The dividend proposed by the directors of the board, which is to be paid on the 5th of July, represents a slight drop from the 7.50 kobo per share paid out in 2010.

The year under review also witnessed a decline in the company’s turnover, gross profit, and profit after tax.

This was largely blamed on the security challenges currently bedevilling Northern Nigeria, which had had an adverse effect on tourism and the hospitality industry.

Speaking at the event, Chairman of the Board, Mr. Goody Ibru, said, “International travel arrivals slowed and many government functions were cancelled or moved to areas perceived to be relatively more secure. Consequently, projected demand for accommodation, food and beverages could not be met.

“The company recorded a turnover of N4.90bn as against N5.03bn earned in 2010, a decline of 2.6 per cent. Similarly, gross profit declined by 35.1 per cent to N1.2bn in 2011 against N1.7bn in 2010.

“The profit after tax dropped slightly by 2.99 per cent to N581.18m compared to N598.59m achieved in 2010.”

Ibru, however, noted that on the flip side, the total net assets of the company grew by 3.3 per cent to N3.07bn from N2.97bn in 2010 adding that he was pleased by the seven kobo per share dividend payments which would be subjected to withholding tax at the appropriate rate at the time of payment.

Ibru informed the gathering that Sheraton Hotel Abuja was currently undergoing renovation, which was designed to improve customer relations.

He added, “Having designed, installed and approved the model (mock-up) room, the process of full roll-out of the renovation exercise has begun.

“The process of redesigning the public areas has also started. The renovation project is designed to improve the comfort of our guests and enhance brand loyalty to the hotel.”