Union Dicon Salt Plc to Hold AGM Amidst Going Concern Threat
Market value of Union Dicon Salt Plc, a company with going concern threat, has been flattish at N2.214 billion over the last seven trading sessions ahead of the company annual general meeting (AGM).
The company reported zero sales in 2023, according to its audited financial statement for 2023. However, it declared profit for the same year.
The company boosted its operating income from rental, dividend and other income amounted to N302.178 million , more than double of N140.134 million reported iin the year.
In its latest regulatory filing, the company told the Nigerian Exchange and shareholders about plan to hold its annual general meeting on April 30. The meeting which is expected to hold virtually aimed to re-elect and appoints new directors for the company.
The company returned to profitability in 2023 after earnings loss posted in 2022, details from its audited financial statement revealed. Union Dicon Salt Plc recorded N61.24 million in 2023, a steep reversal from N11.436 million it posted as annual loss in 2022.
“We draw attention to note 24 in these financial statements which indicates that the Company made a profit before taxation of N94,222,000 for the year ended 31st December 2023 from :Loss of N44,959,000 in 2022
“…and as at that date its current liabilities exceeded its current assets by N1,298,729,000 versus N1,416,547,000 in 2022 and had a negative shareholders’ funds of N1,324,416,000 – a decline from N1,385,656,000 in 2022.
“These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our Opinion in respect to this matter is not modified”, its auditor BDO said.
