Julius Berger Nigeria Plc, Nigeria’s engineering construction market leader and preferred partner for infrastructural development across the country, held its investor relations forum event, which was co-anchored by the company’s managing director, Dr. Lars Richter and Financial Director, Mr Christian Hausemann, also had shareholders and investors in attendance. According to Dr. Lars Richter, the purpose of the company’s Investor Relations Forum is to highlight Julius Berger’s “business, operations, financial highlights and key investment considerations to investors, as a compelling investment opportunity in the construction industry.”
Dr. Richter commenced proceedings at the investors’ forum with an executive summary of the company’s current profile. He confidently stated, “The Company, today, is endowed with the largest market share, limited competition of similar scale, quality and financial capacity. We have a strong brand equity, a seasoned management, an experienced and diverse Board of Directors, and a well-defined Diversification Strategy; all projecting for a strongly-rooted and positive business outlook further strengthened by a favourable operating environment…”
Julius Berger, said Dr. Richter, “is synonymous with the best quality infrastructure in Nigeria, and the company is assigned a National Scale Rating of A- with a Stable Outlook assigned a National Scale rating of A.” He emphasized the over 50 years presence and leadership of the company in the construction industry in Nigeria.
The Company, he added, is structured along three key segments – Civil works, Building Works and Services and with 7 subsidiaries, specializing in executing complex works that require the highest level of technical expertise and Nigeria- specific knowhow. Core competencies of Julius Berger Nigeria Plc, said Richter, “cover all project phases, including planning, design, engineering, construction, maintenance and operation, for infrastructure, industry and building projects.”
The Financial Director, Mr. Christian Hausemann thereafter spoke to the financial highlights saying on a healthy note that Julius Berger’s “…cash balances exceed total borrowings for most of the review period implying a negative Net Debt position.” Mr. Hausemann added that “…sustained and improving interest coverage ratios providing adequate buffer for interest expenses.”
On the reason for Julius Berger’s strong and stable portfolio footing, Dr. Richter said “…the Company enjoys long standing relationships with public and private sector clients in Nigeria due to its effectiveness in executing complex building and infrastructural projects over the past 50 years and the recognition of the brand for world class quality.” Speaking further on the company’s business outlook, the Julius Berger managing director said, “Nigeria’s construction sector is set to expand, and this will support growth in civil works, building works and ancillary service. Richter added, “We expect the construction industry to be one of the key drivers of GDP growth in the near term and as such, outpace the GDP growth rate.
Two concerned shareholders, Mr. Oladele Akande Mr. Kayode later asked questions about the company’s receivables, and how the illiquidity of foreign exchange is affecting the company’s business. Both enquiries was essentially about what steps the executive management is taking to mitigate those challenges.