Consolidated opens N1bn rights October 16th

….As Q2 losses weaken expectations
Shareholders of Consolidated Hallmark Insurance wishing to take their rights have reason to approach their stockbrokers for the rights’ documents, which the company has said will open on October 16th.

This was coming as losses recorded by the company in the second quarter accounting period ended 30th June 2017, has further weakened shareholders’ expectations for the H2, in terms of corporate action and equity price growth.

The company revealed this through a memo released by the Nigerian stock Exchange (NSE) recently that its 1,000,000,000 ordinary shares of 50 Kobo each at the offer price of 50 Kobo per share on the basis of one (1) new ordinary share for every six (6) ordinary shares of 50 Kobo each will be opened for subscription on Monday, 16 October, 2017.

According to the company, acceptance for the rights closes on Wednesday, 22 November, 2017. But The Daily Times Nigeria can recall that Consolidated Hallmark Insurance’s second quarter result for the period ended 30th June, 2017, showed depressed outing, as all key performance indices regressed.

According to the result, Gross Premium dropped by 0.3 per cent, to N3, 316 million from N3.437m. The company’s profit before tax (PBT) for the period posted 32.5 per cent decrease to N246,908m, against N422,342m, while income tax expenses also reduced by 9.2 per cent to N119,081m, against N259,139m recorded in the preceding period of 2016.

The company’s loss after tax closed lower at N119, 081m, from N259,139m posted in Q2 2016, reflecting 45 per cent decline.