UNITED by VISION to create Commonwealth – THISDAYLIVE

soft finance

The story of Cutix Plc is fascinating for many reasons. In 1991, when I started covering the stock market, Cutix was one of more than 10 local companies listed on the secondary market of the Nigerian Stock Exchange to show what was possible. A few years have passed, and although many students have withdrawn from the market for various reasons, Cutix not only stayed, but also graduated, continuing to create a prosperous feast for stakeholders. For example, consider these statistics. For a newborn who invested N1,040 in the company 35 years ago, his investment will grow to N1.93 million today. For a Youth League member who also invested N5,200 35 years ago, his investment will appreciate to N9.63 million today; and for a businessman who invested N520,000 in Cutix 35 years ago, his investment today will appreciate N9 .625 million.

In this article, Vanessa Obioha tells how Cutix, a homegrown cable manufacturing company, has overcome different economic downturns to maintain its enviable position on the Nigerian Stock Exchange.

Forty years ago, when Engr. Ajulu Uzodike quit his paid job to set up a homegrown cable manufacturing company that later became Cutix Plc, part of his shared vision of a federation for Nigerians. While he’s still working on that, Uzodike has a lot to beat. What the elder Uzodike is doing is extraordinary, given that the recession swept the country from the junta-era (when Cutix was founded) to the present day democracy. With a contagious sense of humor, he has managed to keep the company afloat and achieve a phenomenal performance on the Nigerian Stock Exchange.

The company manufactures and supplies residential wiring cables, aluminium conductors (AAC), copper conductors, aluminium service cables, automotive cables, appliance cables, low voltage power cables and solar cables – proud to be the first homegrown company to migrate to this sector Tier 1 securities The market is derived from the secondary securities market.

Although Cutix’s start-up capital after private placement by 18 shareholders in mid-1983 was N400,000, as of April 30, 2022, the company was valued at N8.595 billion. What’s more, its annual pre-tax profit has continued to grow. The N10,000 investment in Cutix in 1983 is worth N89.1 million until 31 October 2022.

Over the years, Curtix has received many awards and certifications, such as the International Standard of Excellence Award from the World Quality Alliance for the Best World-Class Cable Manufacturing Company. Considering that most of its competitors were forgotten when it was established, this is indeed an outstanding example of a Nigerian success story.

If you ask the aging Uzodek or the chairman Okwudili Nwosu, who has been a project manager since the company’s inception, what the winning formula is, you’ll get a unifying answer: the charter.

“We have always been committed to the bylaws and to the principles as much as possible,” Nwosu said.

By creed, he refers to the company’s mission to be a profitable, fast-growing, high-quality, ethical and socially responsive company. It also set out to rapidly leverage emerging technologies and capabilities in product improvement and diversification, primarily using Nigerian human and local resources, and primarily using internally generated funds to develop and provide fair returns to all stakeholders.

By upholding these values, Cutix’s reputation continues to exceed expectations, not only increasing revenue, but maintaining an enviable reputation in the capital markets sector.

So on its nearly 40th anniversary, the company launched a two-year program to mark the milestone at a recent private dinner.

To be sure, the company was founded on November 4, 1982, but as Nwosu explained, the company originally started operations in 1984.

“It takes about two years from inception to the start of commercial production. So we have to remember when the company was born, which is November 4, 1982, and then link it to commercial production, which is May 1984. So, We are going through the period from the beginning of the company, which is a combination of the actual viability of the company and the commercial nature. Because by the time the company was formed in 1982, we were not fully operational. We had just received approval, brought in the machines and trained people. “

The company started producing an extrusion line in 1984, and has been in continuous production, with the ability to produce a variety of cable and wire products. A second production line was added in 1985 and several more wire processing lines were added in 1986 to achieve an integration comparable to other leading local and international cable manufacturers.

The repeated statements made by everyone at the dinner are the Nigerian character of the company. As Nwosu pointed out in his welcome speech, the company believes in “local value-add” and will only look outside the company when there is no other option. Cutix has a 100% Nigerian workforce and engineers from the start and has achieved commendable quality standards.

“The company uses her technical team for tool design, installation of imported machines, training and troubleshooting of technical issues and all other functions performed by the company. We have designed and assembled a number of manufacturing equipment lines to complement earlier imported versions to Increase local technical content.”

In addition to leveraging local talent and resources, the company positions itself as an inclusive organization, with a woman, Ms. Ijeoma Oduonye, ​​serving as CEO.

A beaming Uzodike revealed that it was proud to be at the top of the NSE, according to the company’s calculations.

“Some of my visions have come true,” he continued. “At least, I have shown that Nigerians can come together and successfully deliver returns for investors. We are the only ones doing what we are doing. A company that is entirely Nigerian and able to survive all Nigeria’s problems , even to celebrate.”

Although Cutix is ​​a towering iroko tree in its domain, it makes founder Uzodike unhappy to see other homegrown companies in the history books. He spoke enthusiastically about the need for Nigeria to establish a national federation, which is related to the theme of the 40th celebration: “40 Years of Struggle for Commonwealth”.

“A tree is not a forest. If we had so many in Nigeria, we wouldn’t be talking about insecurity and so many things. That’s what makes me sad that after 40 years of trying to make this country a better place, We couldn’t because we were alone. All the other companies we started with are gone.”

For Nwosu, it’s a matter of selfishness.

“A lot of people are selfish. If you have a company, why do you keep all the power to yourself? The more decentralization, the more efficient and viable the company is.”

He continued: “When we started this company, we were looking for a time when the people who started it may not be around, but the company will live on like many multinational companies. Those who started the company are leaving. A lot of private equity Shareholders are dead.

“So we need to keep the heirs of these shareholders committed to the ideals, and the only way they will continue to work on the ideals is if someone keeps articulating those ideals so they’re not forgotten.”

Despite the company’s rising revenue, Nwosu noted that the continued depreciation of the naira has affected the business.

“It affects us very badly because you can’t buy anything. You buy something today and tomorrow it goes up 10%. How do you bargain? So you can’t plan, and once you can’t plan, this uncertainty Very bad for business.”

The company celebrates its 40th anniversary with a new logo that reflects the company’s resilience and commitment over the years. On November 4, the company rang the bell at the NSE and explained the facts behind the luminaries of the past few years. Nwosu hinted that there will be new product launches in the next decade as well as the company’s vision.
Last Friday, closing out the firm’s presentation on the facts behind the people incident, the managing director made a very bold assertion: “Cutix has proven to be the best-kept secret stock on the market – in every portfolio A must-have”. Interestingly, all the stockbrokers who spoke at the event thought the managing director was stating the obvious.

quote
If you ask the aging Uzodek or the chairman Okwudili Nwosu, who has been a project manager since the company’s inception, what the winning formula is, you’ll get a unifying answer: the charter.

me and my money
Yemisi Chalon

invest in educating yourself

When you spend money and invest in educating yourself, you are walking among people who don’t believe it, because the more you know, the more you see. Take the time to read and educate yourself. Eager to learn more about what you’re involved in. I decided to become a chartered stockbroker because I am investing in stocks. I know this will be a big part of my future portfolio and my stockbroking knowledge has helped me a lot.

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