Nicoz shareholders ask for more

NICOZ Diamond shareholders have described the US$0.064 cents dividend as unreasonable and too small especially for the minority shareholders of the company.

Speaking at the company’s 12^th annual general meeting minority shareholders said they expected something reasonable.

“We expected something reasonable above (US$0.064cents) that, but we have no option maybe that’s what is in the market. So I am proposing that small shareholders should be given opportunities to benefit from the company’s operations,” he said.

Another disappointed shareholder who added her voice to the issue said it was more reasonable to exchange their dividend for shares.

“The amounts (dividend) are too small, it is better to get shares than to get small amounts into your bank account,” she said.

Explaining the reason behind the dividend company chairman Albert Nduna said the company performance was the same as prior year and therefore it was prudent to give the same dividend given last year.

“The Board thanks the management and staff for the efforts put to guard the profitability of the company given the operating environment. The performance of the company in 2013 allowed the Board to recommend a dividend of US$0.064 cents per share to the shareholders of the company, the same as that of 2012 as the performance for the two years have relatively been the same.

“Shareholders got their dividend around May 21, 2014 and those who have not are encouraged to contact ZB transfer secretaries and update their banking details,” he said.

Nduna added that the short term insurance sector in Zimbabwe continued to be heavily traded with 24 active players vying for US$200 million worth of premiums, but was quick to point that there is still room for growth.

He said at peak the market used to record almost US$600m worth of premiums and that the prevailing situation is however just mirroring the economy at the moment where many sectors are operating at low capacity utilization levels.

Nicoz said the insurance market grew by 8 percent from 2012 in terms of total premiums and the company grew by 24 percent showing that it is gaining market share of an already existing pool of business.

The company chairman said they have observed an encouraging trend were people are realising the importance of getting insured by tried and tested companies than as compared to going for the prices.

“We have seen clients becoming more discerning and realizing that insurance is more about security than it is about getting the cheapest price. You want to be assured that when an unfortunate event happens; you are quickly financially restored by your insurer, you never know what will happen!

“Nicoz Diamond has been able to pay all its obligations, and its financial strength has been subjected to independent review year after year by Global Credit Rating of South Africa, maintaining an A- rating since 2006,” he said.