NICOL declares 23pc dividend raise after profit surge

NICOL Investment Plc has approved a dividend raise of 23 per cent per share fueled by profit growth.

The dividend payout increased from 43/- paid in 2022 to 53/- for 2023 and will benefit shareholders listed in the company’s register by October 19.

NICOL’s Chief Executive Officer, Erasto Ngamilaga, said immediately after the 10th Annual General Meeting over the weekend that the total payout of 3.2bn/-represents nearly half of last year’s net profit.

“Despite the company’s financial obligations, the board remains committed to its policy of providing an annual increase in dividend payments,” he said.

The firm last year made a net profit increase by 15 per cent to 6.8bn/- from 5.9bn/- of 2022.

“The company continues to perform well each year, with profits on the rise. We are dedicated to increasing dividends annually because our mission is to enhance value for our shareholders,” he said.

The share of NICOL closed last week trading at 750/- though down from 850/- of mid last month.

The CEO said that to comply with international standards and attract new investors, the board has proposed an amendment to the existing dividend policy, setting the maximum dividend at 50 per cent of the company’s annual profit.

“These amendments will ensure we maintain a competitive edge for shareholders while retaining funds to invest in new opportunities, strengthen the company’s long-term value and uphold financial stability,” he said.

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The NICOL Chairperson, Dr Gideon Kaunda, said that the company has achieved significant success, especially following large investments made through its subsidiaries, leading to consistent profits year after year.

“Due to the current financial situation, the real value of our members’ shares and the market value will continue to rise, so our shareholders should be proud that they have invested in the right place,” he said.

He said NICOL’s core investment assets have shown substantial improvement, increasing by more than 21 per cent compared to the previous year.

“Our forward-looking approach is guided by a commitment to innovation, strategic use of technology, and expanding our market presence locally, regionally, and internationally,” he said.

The AGM was attended by some 800 shareholders.