Stakeholders in the Nigerian capital market have made a strong demand for dividend payment form Computer Hardware and Maintenance Services (Chams) Plc, to assuage for their long wait since the company listed on the bourse in 2009.
Making the call recently in Lagos during the company’s presentation of facts behind the figures at the Nigerian Stock Exchange (NSE), dealing members of the Exchange unanimously voted for dividend payment, for shareholders to share from the company’s profit.
Mr. Emeka Mmadubuike, CEO Compass Securities Ltd, said that the company needs to reward shareholders for their patience, since the company got listed in 2008. He added that investor’s investment objective, which is return on investment, has not reflected on their investments in Chams, and this scenario would neither encourage existing investors to hold on to their investments, nor new investors to the company.
“ we have waited for so long, at least this 17 per cent growth on earning per share, if shareholders has been given at least 5 kobo, it would help to encourage shareholders to hold on to their investments”
He added “ Most of us here have been wondering what has happened to you since listing on the NSE, the reality of it is that so many of our clients cannot get liquidity from it. It could have been ideal for shareholders to be given at least 5kobo dividend, why should I continue to keep Chams ‘s shares, especially now that I cannot convert it to cash?”
Mr. Ariyo Olusekun, President of Chartered Institute of stockbrokers (CIS) maintained the same stand saying that hence investment objectives of investors is to grow their investments, keeping investments of over 100 million over six years without any return on it , even a one percent return, runs counter investment objectives of investors .
Meanwhile, the company’s CEO, Sir David Aladekomo in his presentation to the broker dealing community and investments experts assured that the company is not positioned to pay dividend in 2014, but would reward shareholders in 2015, for the 2014 financial year. “We strongly believe that we are going to start paying dividend in 2015’ he said.
He further said that the company has recovered from challenges which crept in 2009 shortly after listing on the NSE, and now into era of profitability.
He said that the company has pioneered some solutions and services which would be launched soon, and has signed partnership with foreign experts to that effect.
He disclosed that the company has opened channels for growth in earnings through partnership with 22 banks in the country as well as the Central Bank of Nigeria (CBN) on the ongoing Know Your Customer (KYC), project.
According to the CEO, the company is partnering with the federal government on the national identity card project as well as with five states across the federation residents identity management data
He assured that the number of states the company is partnering with on residents identity management data, has increased by four, adding that in the next few days, names of the new four states that have entered into partnership with it would be released to the public.