Harmony Holdings Limited was incorporated as an investment holding company to manage the affairs of all commercial entities in which the Kwara State Government of Nigeria has interests either wholly or partially. The establishment of the Holding Company is as an avenue to shore up the State’s Internally Generated Revenue (IGR) in the long term. Put simply, the Holding Company was to turn-around the fortunes of these entities and put them on the path of profit-making.
Harmony Holdings Limited is owned 100% by Kwara State Government
The Company was incorporated and founded to ensure that all those companies or commercial entities where the Government of Kwara State has whole or partial interests and who have been run at a loss and continues to rely on the Government for survival are turned around to profitability with a view to boosting the revenue of the State.
- Give the subsidiaries the desired strategic focus and direction.
- Reorganize and restructure all the moribund entities for optimal performance.
- Institutionalize a performance based matrix for all companies in line with their respective core competencies.
- Harmonize the operational services within the group through shared services arrangement as a way of achieving efficient cost structure across board.
- Create Job Opportunities for competent professionals and others from the state.
- Partner with international and local investors to unlock the potentials presently trapped in such areas as mining, property and tourism within the State.
Harmony Holdings Ltd will put a stop to wastages and inefficiencies as currently obtains in most of the subsidiaries, thereby ensuring their financial and operational turnaround . It will also look into the feasibility of starting new businesses that are profitable thereby increasing the revenue base of the State.
Generally, the improved efficiency level of these companies will lead to more revenue generation for the Government, which translates to better dividends of democracy for the populace in terms of delivery of more developmental projects. Specifically, the Company will generate employment opportunities for Kwarans and others.
Until recently, virtually all the entities, apart from one or two companies, suffered from many predicaments including weak management, weak accountability processes and corporate governance framework, inability to meet obligations to staff and creditors, erosion of shareholders’ fund, non-profitability (for years), non-existent performance management practices, lack of Internal Control and Audit processes, just to mention a few.Until recently, virtually all the entities, apart from one or two companies, suffered from many predicaments including weak management, weak accountability processes and corporate governance framework, inability to meet obligations to staff and creditors, erosion of shareholders’ fund, non-profitability (for years), non-existent performance management practices, lack of Internal Control and Audit processes, just to mention a few.
The Holding Company has turned around the fortunes of companies and corporations established over the years by successive administrations in Kwara State that have consistently constituted a drain-pipe on the meager resources of the State. The Company has plugged the loopholes which these entities constituted, thereby saving revenue for developmental needs of the State.
Above all, Harmony Holdings Ltd has strategically transformed these entities and restored them on the path of profit-making.
The result announced by the Holding Company for the first year of operation (Financial Year ended December 31st 2013) attest to the fact that the Company has caught the vision and delivered substantially on the stated objectives. The announcement of N373 Million Profit Before Tax by the Group (for the year 2013 is a clear indicator that the Company has positively driven entities whose fortunes had hitherto waned over the years. With an Earnings Per Share (EPS) of 2.96, the Group has been able to almost triple the resources committed to businesses in the course of the year under review.
In specific terms, the companies fully taken over by the Holding Company recorded impressive results for the Year ended 2013 viz: HHL Investment & Property Development Company Ltd (KIPDC)- N217Million PBT (compared to N46Million Loss in corresponding period in 2012), Harmony Securities Ltd (HSL)- N210.7Million PBT (as against N28Million PBT in corresponding period in 2012), and HHL Insurance Brokers Ltd (KIB) – N3.6Million PBT (compared to N90,000 Loss in corresponding period in 2012).