New Telegraph

Cutix outperforms stock market returns

Managing Director and Chief Executive Officer (MD/CEO) of Cutix Plc, Mrs. Ijeoma Oduonye, has said the company has proven to be the best-kept secret stock of the Nigerian stock market and a must have in every investment portfolio because of its remarkable performance and returns to shareholders over the years.

Oduonye declared this while commenting on the company’s performance at the Facts Behind the Figures programme at the Nigerian Exchange (NGX) Limited as part of activities to mark the 40th anniversary celebration of the company. In her speech, she described Cutix as, “A quintessential stock and the best example of a well managed indigenous company in Nigeria as its performance history showed that it outperformed the overall NGX market in return by over seven times.”

The company made returns on investment of 185,000 percent compared to the Nigerian All-share index of 22,870 percent. She said the company was able to achieve this remarkable performance despite the turbulent macroeconomic environment, influx of substandard cables and wires, unavailability of forex, unfriendly government policies, multiplicity of taxes, port congestion and dearth of qualified technical manpower.

She explained that the company’s annual profit after tax has increased consistently over the years as well as the value of annual dividends received by investors, adding that the company has also declared bonus issues almost every three years in the ratio of one for one, one for two, and one for three and with most of the declarations being one for one.

Oduonye remarked that because dividends have been declared every year since 1989 till date, consequently, N1,040 invested on behalf of a new baby 35 years ago would have grown to N1,925,042.88 today and N5,200 invested by a youth corps member 35 years ago would have appreciated to the value of N9,625,246.44 presently.

In the same vein, a businessman who had invested N520,000 in the stocks of Cutix 35 years ago would have had his investment appreciated to the tune of N962,524,996.44 presently. She said the company has also been consistent in exercising its statutory obligation to the government as its payment of tax to the government has always been unswerving and timely.

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