How much should you pay for Prestige?

PRESTIGE began operation as a Nigerian branch office of The New India Assurance Co. Limited in 1952. It was incorporated as a wholly-owned subsidiary of The New India Assurance Co. Limited in January, 1970 and named The New India Assurance Company (Nig.) Limited.

It enjoys the financial, research and technical support of The New India Assurance Co. Limited, an insurer established in 1919 with strong presence in Asia and Africa.  The experience of PRESTIGE in the Nigerian insurance sector spans over six decades.

Earnings growth has been unstable. And the company has been accumulating losses since 2012. The value of accumulated losses at the end 2017 financial year stood at NGN347.3 million (2016:NGN776.5 million, 2015:NGN991.9 million).  This halted dividend payment. Consequently, the management has succeeded in seeking approval to write off the accumulated losses in 2018 so as to pave way for payment of dividends to shareholders.

Company's performance has started getting better since 2016. Gross premium written profit improved by 7.6%, underwriting profit was NGN254.1 million compared to an underwriting loss of NGN422.3 million of 2015. Profit After Tax (PAT) was NGN222 million when compared to NGN145.3 million loss after tax of 2015.

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It is time to fire your adviser!

Many investors are dissatisfied with the services they receive from their advisers despite the bogus claims the advisers often make. You should look beyond the excellent sales presentation and hype. If he does not ask you about your goals and other factors that will determine the suitability of the product for you, your insurance agent may probably be only interested in making his commission. Furthermore, a stockbroker may coax you into buying shares of a company with a streak of losses. He makes money no matter how much you lose. If you buy shares that have proven to be bad investment, your stockbroker makes money twice when you buy and when you sell. A lot of investors are of the opinion that many advisers cannot justify the fee they collect from their clients.

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Champion Breweries Plc is fairly priced

CHAMPION, a brewery, domiciled in Akwa-Ibom State, Nigeria was incorporated on 31st July 1974 as South East Breweries Limited. It was later renamed Cross River Breweries Limited. The company became Champion Breweries Plc on September 1, 1992 and its shares were quoted on the Nigerian Stock Exchange a year later.

Champion Lager Beer, its flagship product was launched in 1976. The company also produces Champ Malta, a non-alcoholic malt beverage. CHAMPION was shut down in 1990 due to working capital problem. It, however, resumed operation in 2001.

CHAMPION raised capital through rights issue and paid off its debts. Though it is debt free, the company's accumulated losses stood at NGN8.6 billion at the end of 2017 financial year. This prompted it to seek approval to write off its accumulated losses. We expect the company to resume payment of dividend soon and attract more investors.

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