The International Financial Reporting Standards adjusted profit after tax of Arco Petrochemical Engineering Company Plc has increased from N304.83m for the 2011/2012 financial year to N1.44bn for the 2012/2013 financial year, the firm said on Thursday.
This represents an increase of 374.2 per cent for the financial year that ended on March 31, 2013.
The Chairman of the Board of Directors, Chief J. J. Akpieyi, at the firm Annual General Meeting held in Lagos, said for the first time, Arco’s financial statement was prepared in accordance with IFRS as issued by the International Accounting Standards Board.
Akpieyi informed shareholders that the IFRS adjusted profit before tax jumped from N636.79m in the previous financial year to N1.7bn for the period. This, he said represented 166.96 per cent increase over the preceding year.
Arco Board Chairman attributed the excellent performance to significant increase in revenue as well as sustained cost reduction programme of management.
This, according to him, informed the Board’s recommendation of a 20k dividend per share which represented 100 per cent of what was paid to shareholders for the year ended March 31, 2012.
Consequently, total dividend of N510,075,340 was recommended to shareholders for approvalwith the balance of profit being reserved for reinvestment to support future growth of the company.
As part of significant events of the last financial year, the Chairman informed shareholders that, “In our plan to make Arco Group an enduring business, subsequent to financial year end, we engaged Pricewater house Coopers to carry out an Enterprise Transformation Project for your company.
“The Project involved diagnostic review and validation of Arco’s current strategy as well as design and construct new operating procedures and manuals that will support the new business strategy.”
The business strategy, he said would include new corporate organisational structure, executive succession plan, redefinition of internal business framework, IT infrastructure design and selection and many others.