The Chairman, Board of Directors of Cutix Plc, Mr. Okwudili Nwosu, has described 2022 financial year as a difficult one due to the dynamic and challenging macro-economic environment caused by sustained security challenges and the COVID-19 pandemic globally. This was even as he reported that the company recorded a turnover of N7.8billion in the year under review.
Speaking at the 39th Annual General Meeting (AGM) of the company held in Nnewi, Anambra State, at the weekend, Nwosu said those factors had impacted on the performance of the company.
He explained that COVID-19 which started ravaging the world beginning in late 2019 in China, rapidly spread all over the world posing threats to businesses.
Other challenges according to him included persistent and sustained insecurity which reflected in the activities of the herdsmen and farmers clashes, rampaging kidnappers, armed robberies and other violent crimes.
The Cutix Chairman also noted that the recent Russian-Ukraine war that started in February 2022 had also caused widespread apprehension and disruption in the supply chain of materials and adversely affected operations of the global economy, as well as that of the company.
“The attendant rising price of crude oil resulted in the surge in price of diesel largely used for power supply which increased our costs significantly and affected productivity.
“Our company has its factory located in Nnewi, Anambra state, South-Eastern part of the country which from second quarter of 2022 had experienced constant sit-at-home orders. These disruptions had a detrimental effect on businesses located in the region.
“The effects of these challenges are still with us today, but we are struggling to get back to our normal operations quickly”, he said. He added that it was pertinent to review the economic environment within which the company operated during the year under review.
The Chairman expressed commitment to sustaining an increase in value of the company’s assets by productivity improvements leading to higher profitability and better returns on equity to shareholders.
“Despite the challenging business environment and intense competition in the industry, the company posted a turnover of N7.8 billion with a profit before tax of over N1.1 billion which represent growths of about 17 percent and 29 percent, respectively.
“We shall maintain our resolution to continue to pay our shareholders increasing dividend annually, issue bonus shares every three years and build more market value for the company,” he added.
He expressed satisfaction with the management and staff for their patronage, loyalty and hard work over the years, the customers and consumers for their confidence in their products, including wiring cables, automotive cables, copper conductors among other products.
He thanked the founder, shareholders and his colleagues on the Board for their support to the executive management and staff.