The Odu’a Investment Company Ltd has announced a seven percent growth in operating revenue for the company’s financial statements for the financial year 2023 as well as the payment of a cash dividend of N428 million to its shareholders.
The Group Chairman of Odu’a Investment Company Limited, Otunba Bimbo Ashiru, disclosed this at the 42nd AGM held at the Lagos Airport Hotel, Ikeja.
According to Ashiru “the modest 7% growth in operating revenue from N3.68 billion in 2022 to N3.95 billion in 2023 reiterated that despite the economic headwinds of 2023, it was another year of good performance by the company as it posted a Profit Before Tax of N1.96 billion.
He expressed satisfaction that with improved collaboration and synergy within the Group and leveraging shared services, cross selling, joint marketing and astute business innovation, Odu’a Investment is translating the timeless vision of the founding fathers of the company into reality by the implementation of the Group’s five-Year Strategic plan which aims to sweat, create and revive businesses and assets to deliver continuous growth and value to shareholders and stakeholders.
“Notable events in the year under review included the commissioning of the Phase 1 of Westlink IconicVilla, Alakia, Ibadan comprising 67 residential units of 3-bedroom apartments, 4-bedroom and 5-bedroom duplexes; the launching of the Odua Investment Foundation and its flagship Educational Intervention Project tagged ’’Digital Education For Innovation & Economic Development (DEFINED)’’.
“Odu’a Investment also secured its first ever Credit Rating in 2023 with Agusto & Co awarding it ‘’A’’ Rating with a StableOutlook attributed to its debt management and ’’ … good operating cash flows supported by its diversified income streams and portfolio of subsidiaries and associates.’’
In his report, the Group Managing Director/CEO, Mr Adewale Raji, who officially will be retiring on May 31, 2024, appreciated all the esteemed shareholders for the opportunity given to him to serve the company for two successive terms lasting 10 years during which the Group with their support enthroned a new corporate governance framework that depoliticized its operations, appointments and management.
Raji explained that the Group in this past 10 years witnessed repositioning that was driven by her SRC – 2025 Strategy (i.e.Sweat, Revive & Create) to be a lean non-operating investment holding company focused on eight sectors of Real Estate, Hospitality, Financial Services, Agriculture, Energy/Power,ICT/Digital, Healthcare/Pharmaceuticals and Logistics/e-Commerce.
It is such focus on ‘’Sweating’’ that necessitated the consolidation of the entire Group real estate portfolio under our Wemabod Limited subsidiary leading to the massive redevelopment either through own resources or joint venture partnerships of our real estate portfolio to optimize yield and return.
‘’Revive’’ is manifesting in our renovation and redevelopment of Premier Hotel at Ibadan with significant progress made in both the existing building and new developments on the site with phased re-opening starting in H1 of 2025. ‘’Create’’ reflects in the significant step up in our BITA Exploration and ProductionLtd marginal field (PPL 249) funding thrust to implement the Field Development Plan with our partner, Pioneer Global EnergyResources. The company expects that once these funding and regulatory requirements are met; it will be able to achieve ‘’First Oil’’ within Q1 of 2025. All these translated to remarkable success in its financial performance, corporate governance, risk management, and asset optimization across its chosen sectors.
He noted that in real terms, OICL Profit Before Tax for 2023 actually increased by 62 people to N1.772 billion from N1.092 billion in 2022 if we strip off Revaluation Gains arising from our Investment Properties portfolio in both years. He also recounted that the financial year 2023 will be the 10th consecutive year that the company will be paying dividends to Shareholders with the cumulative amount paid in this past decade amounting toN3.11 billion.
In his review of the operating environment, Mr. Raji expressed optimism that President Bola Ahmed Tinubu administration’s pursuit of a market-driven approach to resolving underlying problems of the economy will attract long-term investments into the country to fund infrastructure and social services that includes roads, rail, power, healthcare, education, etc that will translate into sustainable economic and human capital development.
Raji, however expressed confidence that under the leadership of Mr. Abdulrahman Yinusa, the incoming GMD/CEO of OICL, the company will deliver on the ongoing redevelopment of the hotels in the Group, new pipeline of premium residential and commercial redevelopment projects, securing viable joint venture partnerships for the agriculture portfolio, achieve ‘’First Oil‘’ in the implementation of the field development plan of BITA marginal field, and facilitate the company’s mainstream participation in the turnaround of the power/electricity sector.
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