Julius Berger holds investor relations forum

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Julius Berger Nigeria Plc, Nigeria’s engineering construction market leader and preferred partner for infrastructural development across the country, has held its investor relations forum event.

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The event which was co-anchored by the company’s managing director, Lars Richter and Financial Director, Christian Hausemann, also had shareholders and investors in attendance.

According to Richter, the purpose of the company’s Investor Relations Forum is to highlight Julius Berger’s “business, operations, financial highlights and key investment considerations to investors, as a compelling investment opportunity in the construction industry.”

Richter commenced proceedings at the investors’ forum with an executive summary of the company’s current profile.

He stated, “The Company, today, is endowed with the largest market share, limited competition of similar scale, quality and financial capacity. We have a strong brand equity, a seasoned management, an experienced and diverse Board of Directors, and a well-defined Diversification Strategy; all projecting for a strongly-rooted and positive business outlook further strengthened by a favourable operating environment…”

Julius Berger “is synonymous with the best quality infrastructure in Nigeria, and the company is assigned a National Scale Rating of A- with a Stable Outlook assigned a National Scale rating of A.”

He emphasized the over 50 years presence and leadership of the company in the construction industry in Nigeria, during which period Julius Berger “…completed 600 building projects, completed over 20 industrial facilities and 130 infrastructure projects Nationwide.”

The Company, he added, is structured along three key segments – Civil works, Building Works and Services and with seven subsidiaries, specializing in executing complex works that require the highest level of technical expertise and Nigeria- specific knowhow. Core competencies of Julius Berger Nigeria Plc, said Richter, “cover all project phases, including planning, design, engineering, construction, maintenance and operation, for infrastructure, industry and building projects.”

The Financial Director, Christian Hausemann thereafter spoke to the financial highlights saying on a healthy note that Julius Berger’s “…cash balances exceed total borrowings for most of the review period implying a negative Net Debt position.”

Hausemann added that “…sustained and improving interest coverage ratios providing adequate buffer for interest expenses”

On the reason for Julius Berger’s strong and stable portfolio footing, Richter said “…the Company enjoys long standing relationships with public and private sector clients in Nigeria due to its effectiveness in executing complex building and infrastructural projects over the past 50 years and the recognition of the brand for world class quality.”

Speaking further on the company’s business outlook, the Julius Berger managing director said, “Nigeria’s construction sector is set to expand, and this will support growth in civil works, building works and ancillary service.

Richter added, “We expect the construction industry to be one of the key drivers of GDP growth in the near term and as such, outpace the GDP growth rate.

Two concerned shareholders, Oladele Akande and Kayode later asked questions about the company’s receivables, and how the illiquidity of foreign exchange is affecting the company’s business.

Both enquiries were essentially about what steps the executive management is taking to mitigate those challenges.

The Financial Director responded saying that there has been growth in receivables in the period under review (2022).

He added, however, that Management keeps monitoring the situation with a view to proactively mitigating any potentially negative headwinds.

The Managing Director added that the diversification into cashew processing and exports by the company, amongst other options, was also a strategy meant to mitigate the effects of the forex challenge to the company’s operations.

“CBN"

According to Richter, “In fact, we have shown by our diversification into cashew processing and exports that we (Julius Berger) can do another business besides our core construction business. Our diversification policy and initiative has contributed to the company’s revenues, even as a start-up venture.”

On a closing note, as the event came to its end, Richter thanked the many investors and participants for taking time off their tight and competing schedules to attend the 2022 Investors forum of the company.

He expressed the company’s sincere appreciation to investors for their active interest in the business of Julius Berger.

He assured investors and shareholders that with the statistical positive outlook for Julius Berger’s core business, its sustainable subsidiaries and active diversification policy, the company is not only well prepared for the future, but Julius Berger is indeed the new real time attraction for investors in the market.

Julius Berger commenced operations in Nigeria in 1965. The Company was, however, incorporated as a private limited liability company in 1970 and became a publicly listed entity on the Nigerian Exchange Limited in 1991.

Since its pioneer project in 1965, the construction of the Eko Bridge in Lagos, Julius Berger has played a pivotal role in the development of Nigeria’s industrial and civil infrastructure. Across Nigeria, the name Julius Berger is synonymous with the best quality infrastructure in Nigeria.