Nicol Company reports remarkable growth at annual general meeting

Chief Executive Officer of NICOL company Ltd, Erasto Ngamilanga addressing the report to the Board of Directors and Members to the 10th annual General Meeting, PHOTO BY Courtesy 

By Charles Mkoka

NICOL Company held its tenth annual general meeting today at the JNICC in Dar es Salaam, marking a significant milestone since its establishment in 1999. The company aims to empower Tanzanians to engage in productive economic projects.

During the meeting, CEO Erasto Ngamilanga revealed that the shareholders' fund has grown dramatically from a capital of Sh 4.5 billion to Sh 136 billion. The share price has also increased from Sh 500 in 2022 to Sh 800 in 2023. Historically, share prices began at Sh 175 when the company first began operations decades ago.

Ngamilanga also reported remarkable success in dividend growth, with total dividends rising from Sh 2.4 billion in the 2022 fiscal year to Sh 6.8 billion this year, following an authorization of Sh 43 agreed upon by each shareholder. The board has proposed a dividend of Sh 53 per share, amounting to over TShs 3 Billion to be paid to shareholders in November 2024.

Chairman of the New Board of Directors, Dr. Gideon Kaunda clarify on the raised concerns addressed in the meeting. PHOTO : COURTESY

In terms of revenue, the company's earnings have surged from Sh 60 million in 2019 to Sh 3 billion in 2023. The ratio of revenue to expenses has also improved, decreasing from 49% in 2019 to just 19% in 2023, showcasing efficient financial management that has preserved funds and increased profits.

A new board was elected in 2021, dedicated to aligning expenses with revenues. Profits have steadily increased, from Sh 1.2 billion (post-tax) in 2019 to Sh 6.7 billion in 2023, with earnings per share at Sh 110.

Looking ahead, Nicol aims to strengthen its investments across various sectors, including real estate, with plans expected to manifest in the upcoming 2024 annual report. Ngamilanga stated, "We have begun exploring entry into other sectors, including transportation, energy, agriculture, and mining, under the supervision of the board."

The company emphasizes long-term growth, focusing on a sustainable development plan that enhances the lives of its members and contributes positively to the community. Nicol is actively working on strategies to attract new members and investors, conducting thorough analyses to identify potential investment partners.

The investment in Milambo Street Properties Ltd has been completed at 100% in 2024, generating 95% of the company's income and continuing to ensure profitability for its shareholders.

Chairman Dr. Gideon Kaunda expressed gratitude to the board and management for addressing various challenges facing the company. He reiterated the importance of maintaining good relationships with shareholders, which he believes aids in securing strong leadership and promotes successful investment development.

The chairman also discussed past ventures into retail investment, emphasizing that Nicol has since moved away from such investments due to associated costs. He stressed the necessity of diversifying investments beyond a single market sector to avoid additional expenses.

As the meeting concluded, members expressed optimism about the company's future, reaffirming their commitment to Nicol's vision and strategic growth.