Chief Raymond Dokpesi, Chairman of the Daar Communications Group, has made a disheartening revelation after he revealed that the company has recorded tremendous loses.
The Chairman of the Daar Communications Group, Chief Raymond Dokpesi Jnr has stated that the company recorded a great loss of N3.4 billion in 2013 and 2014.
The Chairman of the Daar Communications Group, Chief Raymond Dokpesi Jnr. made the announcement on Monday while addressing shareholders at the joint yearly general meetings for the two years on Monday in Abuja.
He said though the company recorded growth of 33 per cent and 23 per cent respectively for the two years in question, tax commitment and other contentious liabilities took the gains of the growth.
Dokpesi said: “In the light of the above operating challenges, your company recorded modest improvement in earnings in 2013 and 2014 of N5.6 billion and N6.9 billion respectively. These achievements translated to earnings growth of 33 per cent and 23 per cent respectively over earnings recorded in their preceding years.
“Regrettably, the company recorded loss after taxation of N3.4 billion in 2013. However, there was improvement in operation in 2014 as the loss after taxation was drastically reduced to N0.107 billion . These losses arose from increasing cost of operation which was not matched with corresponding growth in earnings due to dwindling advertising budgets.
“I want to assure you that the new board of your company, under my chairmanship, has taken a holistic review of operations of the company with a view to ensuring total restructuring of the company for efficiency and economy in its operations. It is also expected that the restructure company will be able to create greater dominance in the advertising revenue in the industry and consequently better financial performance in the coming years.
“I irrevocably promise you that all necessary measures have been taken to return your company to sustainable profitability which will ultimately translate to better returns on your investment in the Company,” Dokpesi further reassured the shareholders.
However, he shared a positive message with the shareholders as he revealed that the company has cleared lingering debt it incurred after it borrowed a loan from Fidelity Bank Plc to host the 2009 U-17 World Cup which has now been settled.
He also revealed that Daar Communications has equally entered a settlement term with its satellite providers- Intelsat Global Services Limited and consequently obtained a waiver of over $2 million on the outstanding liability to it which provided the Daar Group with the opportunity to settle the debt at a discounted sum of $1.2 million as full and final settlement.
“He also told the shareholders that the board has reviewed all major cases pending against the company, including political cases and has decided to initiate out-of-court settlement for all of them."
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