Portland Paints posts N313.29m loss, poised to merge with CAP

Portland Paints and Products Nigeria Plc, a subsidiary of UAC of Nigeria Plc, has reported a loss after tax of N313.29 million for the financial year 2020, compared with a profit after tax of N84.89 million in the previous year.

The company posted a loss before tax of N335.99 million last year, compared with a profit before tax of N127.19 million in 2019, according to its financial statements obtained by Markets Reporters on Monday.

Its revenue plunged by 35.25 percent year-on-year to N1.69 billion from N2.61 billion.

The paints manufacturer said it held a court-ordered meeting on Feb. 18, 2021 at which the shareholders via a special resolution approved the proposed merger with Chemical Allied Products Plc, with CAP emerging as the resultant entity, subject to obtaining the requisite regulatory approvals.

The merger will involve the transfer of all PPPN’s assets, liabilities and undertakings to CAP, and PPPN will thereafter be dissolved without being wound up, according to the financial statements.

The company said, “Following the shareholder’s approval of the merger, the application filed with the Securities and Exchange Commission for formal approval of the merger has been approved. A petition has been filed at the Federal High Court to sanction the merger.

“Accordingly, the financial statements have not been prepared on a going concern basis. They have been prepared in accordance with International Financial Reporting Standard’s on the basis that the operations of the Company will continue in the merged entity, Chemical Allied Products Plc.”