FTN, Multiverse investors trapped in hefty loss as stocks dive
Temitayo Ayetoto is Businessamlive Reporter.
You can contact her on temitayo.ayetoto@businessamlive.com with stories and commentary.
Investors in FTN Cocoa Processors Plc, a Nigerian private company into processing of local agricultural commodities and Multiverse Mining & Exploration Plc, a private limited liability company, have been trapped in huge loss as both companies’ stocks hit their lowest on the Nigerian Stock Exchange during the last trading session of the week ended May 25.
At a current price of N0.20, investors have lost 92 percent of their investment since FTN listing of its 2 billion ordinary shares of 50 kobo each at N2.50 per share. Recent results for the nine months ended September 2017 revealed that the cocoa firm’s revenue plunged sharply from N842 million in 2016 to N22.6 million in 2017 while the company’s losses also widened from N263 million in 2016 to N463 million in 2017.
For shareholders of Multiverse, investments made in the firm might be a regrettable move with the company’s current trading at N0.20, from a listing price of N1.80 per share. This implies investors lost 88.8 percent of their investment since listing.
FTN Cocoa Processors was incorporated in 1991 as a private company limited by shares under the name Fantastic Abiola Nigeria Limited which later became Fantastic Traders Nigeria Limited in 1998. The company became a public limited liability company on February 29, 2008 and got listed on the NSE.
Its principal activities include processing of cocoa beans and palm kernel into cocoa cakes, cocoa liquor, cocoa butter, palm kernel oil and palm kernel cakes for export and sales to local manufacturing companies.
Multiverse on the other hand was incorporated 2002 and commenced business in 2005 and was converted to a Public Limited Liability Company in 2008. Its share was listed on the NSE in 2008.
It actively engaged in exploring, extracting, prospecting, boring, refining, drilling, producing, and quarry mining of stones and other extractive solid minerals (mainly Lead and Zinc) into different configurations and classifications.
Results for the first quarter ended March 2018 show that revenue fell from N2.4 billion in 2017 to N1 billion in 2018. Losses however reduced from N174 million in 2017 to N53 million in 2018