By Fred Ezeh

Construction giant, Julius Berger Nigeria, recently hosted hundreds of its shareholders to the 2017 annual general meeting (AGM). 

The shareholders, some of whom have invested in and trusted the company for decades, travelled from different part of Nigeria to participate in the 2017 AGM. 

The annual event, which took place at the prestigious Shehu Musa Yar’Adua Center, Abuja, provided a free and more relaxed platform for the shareholders and the management to strengthen friendship and exchange ideas and suggestions for sustained growth and development of the company.  

It was not a surprise to the shareholders and guests that the entire venue was decorated with the white and blue colours of Julius Berger. Similarly, the colours and logos of all the seven subsidiary companies of Julius Berger were conspicuous at the venue. 

However, the 47th AGM also provided a rare opportunity for the shareholders to interface with the management, perhaps, armed with their grievances, commendations, or both, while the management took note of their criticisms and suggestions for onward presentation to an enlarged management meeting. 

Before the commencement of the annual event, a brochure containing the detailed financial and performance report of the company was given to each shareholder to study and ask for further clarification, where and when necessary.  

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Meanwhile, the chairman of the company, Mr. Mutiu Sumonu, in his welcome statement, informed the shareholders of the devastating effect of the 2016 economic recession, inflation and forex scarcity on the company, which forced the company to end the year in loss. 

He said that the company had to quickly take some decisions that were unfavorable to both the workforce and shareholders but were the only options, which kept the company afloat and relevant in the socio-economic agenda of government and individual organisations. 

Some of the decisions, according to the chairman, included the significant reduction of the workforce, cost of operations, the most painfully being the inability to pay dividend to shareholders, even as he apologised on behalf of the board and management of the company. 

Sumonu said: “For the first time in the history of our operations, Julius Berger Nigeria ended the year in loss. Consequently and regrettably, with respect to the unbroken trend of dividend payment, the directors decided not to pay dividends for the financial year ended December 31, 2016.”

He highlighted other factors that could have compounded the critical situation to include instability in crude oil price, reduced oil production as a result of youth restivenesss in the Niger Delta region, accelerated inflation, naira devaluation and shortage of foreign currency.

Collectively, he said, the factors magnified the hardship, thus making economic turnaround increasingly tough for the company.