HENATES

There are certainly still some clouds in the sky over SKYE Bank PLC even though business is going fairly well. According to the figures to September released a few days ago, Skye bank has recorded good growth in income but expenses increase is at a higher rate. Of particular interest was the 42.7% increase in interest expense to N43248m from N30373m while generating 25.7% rise in interest income to N99500 from N79507m. If not, 68.8% increase in investment and other operating income to N29739m had helped gross earnings to grow by 33.1% to N129238m from 97126m. Added to the interest expense increase, 37.8% growth in total operations expenses to N64614m, ended up delivering only 21.5% increase in profit within the nine months even as loan loss provision dropped by 14.9%. Skye banks profit before tax by September came to N14,978m as against N12333m by the same time in 2014. SO: * To close 2015 with higher profit margin than the one recorded in 2014, Skye Bank may have to find...

Eleven quoted companies may soon be delisted from the Nigerian Stock Exchange while another eleven are under watch for deficiencies in free float requirements. According to the X- Compliance report issued by the Exchange on October 26, most of the companies to be delisted requested for voluntary delisting. These include Tourist Company of Nigeria ( with the process already begun); Afrik pharmaceuticals, Union Dixon, Amino International, African Paints, Rokana Industries, Navitus Energy, Nigerian German Chemicals, Golden Guinea and FTN Cocoa Those under watch include Aluminium Manufacturing, Mti PLC, UNIC, Adswitch, G Cappa, Goldlinj Insurance, UTC Nigeria, IPWA, West African Glass, Mtech and Allied Breweries. According to the report, another 11  companies were on default in the submission of financials and reports including schedule one defaulters Multi trex  Integrated Foods and Roads Nigeria. However seven companies got kudos for submitting 2014 financials ahead if schedule. ...

NOVEMBER 17: * Seplat Petroleum Development PLC to pay $0.04 ( about N7.96) per share dividend. NOVEMBER 19: *  Nigerian Breweries PLC to pay N1.20 per share dividend * The Nigerian Society of Engineers to annual general meeting at Akure, Ondo state. DECEMBER 7: * Nestle PLC to pay N10 per share dividend. DECEMBER 14: * Total Nigeria PLC  to pay N2 per share dividend.

It appears Nigeria has come back full circle to the era of seeing investors and businesses as fat cows that should be milked to the last drop even when they are not well fed. First, it was MTN Nigeria that was fined about one trillion Naira reportedly for failing to comply fully with official directives on sim registration. Next we heard of First Bank being penalized by the Central Bank of Nigeria for not transferring MDA accounts to schedule as demanded by the presidency. Now it is the turn of UBA PLC to be fined N2.9bn for failing to remit N58.1bn MDA funds to the CBN by October 15, 2015. The fine was 5% of the fund in question. This is certainly becoming worrisome. One, punitive measures do not have the same impact with corrective measures especially when first offenders are involved. For example, claiming 5% for fund not remitted within days is certainly punitive because there is no way such money could  have earned even one per cent per day. On the other hand, if th...

Union Bank PLC is perhaps close to the winning formula that will pave the way back to big time but it is not quite According to the figures for the nine months ended September, the magic formula may not surface this year unless Union Bank keeps down growth in interest expense and revives fees and commission while continue to watch operations costs and personnel expense like a hawk. By September, Union Banks gross earnings had grown by only 6.4% to N84719m in spite of 182.9% rise in net trading income to N3597m; 43.8% increase in other operating income to N6307m from N4386m and 19.3% increase in interest income to N66636m from N55858m. This was because net fees and commission dropped by 5.59% to N6918m; cash recovered decreased by 67%; and gain from sale of subsidiaries plummeted by 115.3% into N511m loss from N3318m gain previously. Amidst this drag down of earnings growth. Interest expense jumped by 50.2% from N17733m to N26634m; thus depriving Union Bank the full benefits of ...

When Nestle PLC released its figures recently accompanying explanatory notes pointed to higher operational costs and the Naira devaluation as its major challenges within the period. Fortunately, the company not only caged them but as a matter, did not really put its finger on it's real challenge: High finance costs. According to the figures Nestle closed September 2015 with 5.19% rise in revenue to N107986m from N102655.4m. Now, because of cost saving and higher efficiency, cost of sale rose by only 2.77% to approximately N59975m thus leading to 8.35% increase in gross profit. Then total expenses came to about N23334m up 5.1% on September 2014's N22201.8m again leading to 11.6 % increase in profit recorded from its operations. Of course, this should have landed the company in real profit before tax growth above growth in income but it didn't. Instead, the reported figure came to 20814m up only 3.25% on N20158m previously. Why? Simple. This was because net financ...

Diamonds shine especially when they have cut and made dirt free but it looks like Diamond Bank this year is banking on controlling the controllable alone in order to shine. No way say the figures for the nine months to September released this week; other diets have to removed too. According to the figures, Diamond Bank had very firm control over growth in most cost units but could not prop up income with the same firm grip. For example interest expense increased by only 0.06% within the nine months to N37487.4m from N37465.2m; personnel cost rose by 5.41% to N26438.6m and other operating expenses ended at N42684.1m closed only 2.29% up. In these times these were the kind of expense growth rates easy to accommodate. Right? Wrong. In the case of Diamond bank, income flow could match them. Well interest income did increase by 2.22% to N122595m but 32.7% rise in loan loss provision and 55.1% increase in fees and commission expense left no room profit increase. This was partly b...

From the figures to September 2015 released by OANDO PLC this week, obviously the struggle for survival continues but it is winning gradually. According to the figures, OANDO's main line revenue grew better in the third quarter when compared to half year and it increased by 58.7% on June levels although it is still 5,47% short of September 2014 mark. Very clear improvement occurred in cost of sale as 146.9% growth by June slowed down to 41.7% by September thus reducing gross profit drop to 24.1% from 42% by June and as administration costs 146.1% increase came to only 3.14% rise by September. One really surprise leap worth looking at closely when audited full year figures emerge is income from other sources which closed September at N15280m compared to a N2307.1m net loss by June and only N4735m surplus by September 2014. However, despite all these improvements in key numbers OANDO still ended September with a loss of N52034.4m compared to September 2014 N3216m profit and l...

It is pretty difficult these establishing FBN holdings PLC's gross earnings but once estimated it becomes obvious that other operations apart from core banking  are now holding things more together. Sure, the main income still comes from interest earned ( N300382m out of estimated N390896m up to September) but the profit base is shifting. For example, as interest income for the first nine months grew by 17.5%, interest expense rose by twice as much (35.6%) to N107463m compared to 368.8% increase in net income from securities; 127.1% rise in net gain from investments; and 82 per cent to N3016m for other operational income. Net gain from forex also rose by 30.9% but other income flow like from insurance and as fees and commission were rather disappointing. Fees and commission actually dropped by 0.43% to N51001m as expense incurred therefrom road by 39.4% while premium from insurance growth of 58.9% was whittled by 107.2% increase in claims and dividend income dropped by 33.8%....

In 2008 one of the main causes of the historic crash recorded at the Nigerian Stock Exchange was the high incidence of toxic loans and is impact on the financial health of banks. Eventually, sanity was restored after the Central Bank and Nigerian Deposit Insurance Corporation bought these loans. Now provision for loan loss seems to be growing once again at a time the Nigerian economy is not in best shape. Thus, perhaps it is time to beware because of the eight banks that released figures to September in recent days, only two provided less for loan loss while six reported increase. More importantly, the very big ones viz First Bank and Zenith with premium quotation and UBA reported frightening growths. FBN Holdings ( First Bank) reported the highest growth of 248.9% to N46638m from N13364m by September 2014, followed by UBA with 129.9% from N2347m to N5395m and Zenith, up 99.2 % to N9725m from N4882m. compared to these, Ecobank;Guaranty Trust Bank (GTB), and Diamond Bank had ...

The smiles are back on the faces of  stakeholders of Champion Breweries PLC not because it recorded fantastic increase in turnover for the nine months to September but because pressure from cost of operations has reduced considerably. According to the figures released last week Champion Breweries turnover increased by 3.94% to N2270.2m. Even this was watered down further by a 63.1% dive in income from other sources forcing overall income growth to drop to 1.84%. Beyond this, it is easy to see that Champion Breweries had begun to win battles. Its cost of sale decreased by 8,02% to N1731m from N1888.1m; finance charges went down 99.7% to N24.6m from N1064.5m; and distribution and administration costs capped it all with 18.5% drop to N527.2m. Consequently, Champion Breweries pulled out if the loss league by September closing with N62.6m profit as against N1344.4m loss previously. Champion Breweries ended up being more liquid too with just N585.4m working capital deficit compared t...

Shareholders if LA Farge Africa PLC may well watch out for one item in the company's annual report for this year: Long term receivables. What is it? How was it built up? These are some of the questions they may have source answers because it looks the item is becoming LA Farge's new focus or even life line. According to the figures for nine months to September released last week, main line business is growing sluggishly yet direct and indirect costs are growing faster but the net effect of these is being cushioned by returns from strategic attention to long term receivables. For example, other operating income rose handsomely to N1790.8m compared to only N544.6m previously while turnover from cement making and selling increased by only 5.4% to N168144.8m from N159396.1m. On the other hand, increase in direct cost was ahead of this at 9.33% to N113749.4m from N1040367m and administration overhead went up by 16.4% to N18507.3m. In the end, LA farce Profit before tax (PB...

Well, it sure looks like the issue of growing provision for loan loss is rearing its ugly head one again in Nigerian banking after 2008 battle. In the case of Zenith Bank PLC it had a very visible growth rate in the figures to September 2015. According to results released last week loan loss provision almost doubled to N9725m from N4882m ( up 99.2%) thus helping in no small measure to depress the bank's growth in profit before tax to be behind gross earnings increase. Zenith's PBT for the period came to N104052m representing 19.9% increase. However, this compares unfavorably with the 23.1% rise in gross earnings thus pushing profit margin down to 30.9% from 31.7% even though still ahead of 2014 full year's 29.7% Loan loss provision was not the only source of pressure on the bottom line. Interest income growth at 20.5 % to N256737n was not only behind gross earnings rate but also, was well short of the 36.9% rise in interest expense. Indeed, as fees and commission in...

Oando PLC , the petroleum products marketing group still nurturing continental impact, is currently in an epic battle for survival. That is, if the interim figures to June 2015 are anything to go by. From most angles of vision, it is red alert all the way for Oando. Firstly, it looks  very certain that the company is headed for its second year in the loss league after closing 2014 with N183893.2m loss. This is because by June 2015 N38583.2 loss had been recorded already compared with N8571.9m profit at the same time in 2014. Secondly the lone good news in the figures was that turnover increased to N60319m from N55670m thus raising hopes that the drop recorded in 2014 was being reversed. Beyond this. its showers of troubles for OANDO as its cost of sale more than doubled to N36625.5m and gross profit for the same half year dropped to N23693.5m from N40839.1m. That the interim selling and distribution cost decreased to N24.2m was helpful but that was nothing in the face of the ...

It appears like so far this financial year, Berger Paints Nigeria PLC, has developed muscle where it matters most for a manufacturer: Direct cost caging. According to the unaudited figures for nine months to September released last week, Berger Paints recorded only 1.8% increase in its direct cost while growing turnover by 18.7%. The company's turnover closed the nine months at N2152.5m as against N1812.8m while direct cost stood at N1043.4m, thus only marginally higher than September 2014's N1015m. In addition, only 3.1 per cent increase in administration charges to N706.7m was recorded. Hence, the near crippling 164.3 % increase in selling and distribution cost to N242.1m and 42% decrease in investment income, failed to hold Berger Paints to ransome successfully. As a result, its profit before tax ended nine months 88.6% up to N303.4m from N160.9m for a far healthier 13.1% profit margin compared to 8.13% previously. Good for liquidity position? Not quite because w...

Of course, with the unresolved issue of subsidy, petroleum marketers like Mobil Oil PLC are going through trying times but good enough, Mobil Oil retains firm grip over its affairs. According to the figures for nine months to September released last week, Mobil Oil's turnover has shrunk by more than a quarter to N45326.4m but, good enough the company's cost of sale went down at a faster rate of 30% to N37118.4m. But then, how trying the times were in the nine months also shines through as administration and distribution overhead grew by 18.5 % despite the turnover drop by 25.4%. Controllable administration overhead came to N6228.3m from N5256.1m thus joining relatively less controllable pressure from 50.1 % increase in finance charges to N113.8m from N75.8m. Apart from the higher drop in coat of sale, the saving grace for Mobil was the healthier 82.2% rise in income from other sources to N3345.5m from N1835.2m while the cost of generating it dropped by 73.8% to N18.7m f...

For Chemical & Allied Products PLC ( CAP PLC), third quarter to September was a drag of sorts at a time the company was hungry for strong income growth but well, management stayed in control. The quarter had contributed only 30.1% to revenue for the nine months to September while chipping in 32.1% of direct costs and 34.8% of administration costs thus coming up with only 26.1% of profit before tax. Not to worry, management took in its steady hands on stride because turnover for the nine months rose by a very marginal 0.86% to N5097,6m from N5054.2m followed by a lower 0.79% growth in cost of sales to N2480.1m from N2461.1m. In addition in spite of the fairly strong increase in expenses within the third quarter, overall increase in administration costs came to only 2,73% while selling and distribution cost dropped by 6.06% to N381.5m. The real good news came from finance income which rose by 26.8% to N159.3m to help push CAP's profit before tax for the nine months to N17...

The Board of directors of Nigerian Breweries PLC (NB) have decided to pay interim dividend of N1.20 per share based on the fortunes of the company in the nine months to September 2015. This will be paid on November 19 to shareholders in the books by November 11, 2015. However a minor question mark remains hanging: Should NB PLC have paid interim dividend now? The profit level says yes it can and should to stay in line with its own tradition. Figures for the nine months indicate N37562.4m as profit before tax and equally hefty N26175.7m as distributable profit from which, of course, dividend can be paid. Compared to the same time in 2014; both figures represent 11.8 and 12.2 per cent drops respectively but that is not enough to deter dividend payment. What could have held it back was the fact that NB was bit in the best liquidity position. By September, its working capital had worsened by 6,98 per cent into a higher N86547.8m deficit from N81832.8m previously. This was as trad...

Depending on the nature of a complaint or issue, the Nigerian capital market has different levels it can be resolved. Issues concerning status as a shareholder in any company is best laid before the company secretary who in turn may refer it to the Registrar or handle it himself. Registrars are actually professional firms approved by Securities and Exchange Commission ( SEC) to keep register of members Issues about the conduct of any stockbroking firm can be taken with SEC or the Council of the Nigerian Stock Exchange while any to do with particular stock brokers could be raised with the Institute of Chartered Stockbrokers or the Nigerian Stock Exchange. Enquiries about buying and selling of shares are best handled through stock brokers and different trading floors of the Exchange across the country.

If in these times, small can be beautiful then Triple GEE PLC  is one of the Nigerian quoted companies likely to be good example this financial year. Triple Gee is so small that it is still dreaming of hitting one billion Naira turnover but the beauty is that in the nine months to September, its puny increase in turnover was rewarded with double digit rise in profit before tax. Triple Gee's turnover had increased by 3.19 per cent from N320.1m to N330.3m but, happily, with only marginal 0.44 per cent rise in cost of sale to N205.5m from N204.6m. Administration and distribution threw in a spanner by growing 7.67 per cent up to N80m but this was well countered by 3.21 per cent decrease In finance charges thus allowing profit before tax to leap. The lower finance charges could be traced to 18.2 per cent in trade payables; 3.39 per cent  and 7.73 per cent drop in short and long term borrowings respectively plus 24.4 per cent draw down of inventories. In the end Tripple Gee sti...

Perhaps it is too early to judge but it looks like Guaranty Trust Bank PLC (GTB), the Nigerian bank with eyes well fixed on tomorrow's few that will control the most, is having a little itch in its legs presently. The bank's figures for nine months to September, show that its bottom line ( profit margin) not only eased to 40.1 per cent from 40.5 per cent, there was also a slight drop in deposits to N1634176m from N1649869.8m. Its gain on each N100 income decreased principally because loan loss provision developed wings  and interest expense rose by 23.1 per cent to N52834m to generate a fairly healthy but lower 16.7 per cent increase in interest income to N172963.7m. The bit about koan loss was more irritating as the provision ended September at N8515.6m compared to N6286.9m previously. GTB's gross earnings had increased by only 15.1 per cent to N229372m from N199138m as investment income grew by lesser 9.56 per cent to N54288m from N48551.6m. HENCE: * GTB will ...

The issue of when to buy and sell stocks and shares is rather a personal one and depends largely on personal reasons for getting involved in the first place For those who gain control of any particular company when to buy or sell is a simple matter: Issue standing orders backed with cash deposits with stockbrokers to buy or even shop for the particular stocks and shares in question. This could be accompanied with orders to sell other holdings to raise cash whenever needed to buy the shares whenever available. For those desirous of building a nest for the future, the basic consideration should be how to buy the right stocks and shares to meet your expectations. This may demand you consult your stockbroker more often or even retain a financial adviser or subscribe to a group portfolio. As for speculators, when to buy or sell is not that simple. It defends on the individual instinct for profit taking. What speculators know is that gains could come from dividend declared; price mov...

Transnationwide Express PLC seems set to close financial year 2015 with express profit going by the figures for the nine months to September 2015 released last week. This is because, according to the figures, the company's turnover was dictating good pace ahead of expenses even though reported is not in double digit. Transnationwide turnover increased by 9.7 per cent to N589.1m although overall growth in income was a lower 9.36 per cent due to drop in income from other sources. To generate this, however, the increase in direct cost came to only 5.8 per cent from N220.8m to N 233.6m while administration overhead rose by 5.09 per cent to N291.2m. Then finance charges ended the nine months 4.71 per cent down to N4.45m as against N4.67m by September 2014. Hence, Transnationwide ended the period with 64 per cent increase in profit to N61m compared to N37.2m previously. THUS: * Transnationwise Express should have a relatively very good year come year end December. * Howev...

The piece on key players in the stock market is rounded up today with the following:   UNDERWRITERS  When most companies issue shares to raise new capital, they have ready plans for the deployment of money to be so raised. Yet it does happen at times that the investing public fails to take up fully the total units offered. When this happens, of course, such plans are jeopardised. Hence in some instances, companies engage professional firms to underwrite such new issues so that in case there is any short fall in subscription, they the underwriters undertake to take up the difference then hopefully, sell it at the market later. EXTERNAL AUDITORS These are chartered accountant required by law to go through the books and documents of companies to ascertain and report in writing if the figures and report provided give a true and fair view of the state of affairs of the company as at the date specified in such reports or figures. In the end, they are actually the ones w...

22 STOCKBROKING FIRMS IN TROUBLE A total of 22 stockbroking firms who are dealing members of the Nigerian Stock Exchange (NSE) are to face disciplinary committee of the NSE on Tuesday October 27, 2015 to show cause why they should not be expelled from the exchange. According to a public notice signed by the NSE Head of legal division and Council secretary, Tinuade T Awe Esq, the 22 firms have been deregistered by the Securities and Exchange Commission and so, face outright expulsion from the stock market. " At the hearing" declared Awe " the dealing members will be required to give reason why disciplinary action should not be taken against them" by the Council of the NSE. A total of 20 of them are based in Lagos state. They include AAA Securities; Alliance Capital Management; BFCC Asset & Securities; BIC Securities; Colvia Securities; EPIC Investment; Equator Stockbrokers; Empire Securities and First Atlantic Securities. Others in Lagos are First Equity Se...

For those who want to buy stocks and shares, it helps to know who is who in the Nigerian capital market. In this instance, it is well understood that the capital market includes but goes beyond the Nigerian Stock Exchange. A capital market is the overall financial market through which people can invest in stocks and shares of both the private and public kind of limited liability companies. Hence, in the case of Nigeria, the top organisation in this regard is The Securities and Exchange commission (SEC). It approves all the stocks and shares offered for sale; registers all key players in the capital market and regulates and monitors the market in the interest of all, particularly the investing public. Next in line is the Nigerian Stock Exchange itself although its significance becomes real only when an investor decides to sell or buy shares of publicly quoted companies. These are companies, after SEC had approved their share or stock issues, decide to quote such issues in the Nige...

If Japaul Group PLC was human, since the release of its half year figures to June, it would have been on bent knees praying fervently for the full year not to be tougher. This is because the bottom seemed to have dropped out by June and the abyss of huge loss now looks so real. According to the figures, the groups income has not only dropped but its expenses too, almost without exception,  have been increasing  in spite of the drops in income. In the first place, turnover dropped by 9.9 per cent  to N5816.9m from N6455.4m while over all income (that is plus income from other sources) decreased by 10 per cent to N5880m as income from other sources went down 22.6 per cent to N63.5m as against N81.5m previously. Meanwhile, expenses incurred to even earn the lower income continued to increase. First in line, was the 42.3 per cent increase in direct cost to N4658.8m resulting in 63.6 per cent decrease in gross profit. Then Administration overheads rose by 2.4 per cent...

The main source of money people invest in stocks and shares is savings. In other words, if you really desire to get involved in the stock market then fine tune your savings habit to put something aside monthly or daily from your income. This is what the salary earner could do, Also daily earners like workers in the transport business; trading and other similar activities can get involved if they purposefully save money at intervals. Another good source of money to invest in stocks and shares is windfall like retirement money; lottery winnings; surprise cash or asset gifts and more. Here, however, one has to be very careful to get it right from day one of deploying such funds because there is hardly a second chance since no additional cash inflow is likely. Finally, some speculators who know what they are doing borrow money to invest in stocks and shares. One, because the same stocks and shares can be sold easily once liquidity is threatened. They buy low and sell high at the mar...

It may be early in the day but it looks like by nine months to September, tough times in Nigeria and the Federal Governments decision on revenue accounts is yet to hit UBA PLC on the wrong side. According to figures released this week for the period, incomes are growing at double digit while costs are mounting at single digits. And that is very good. UBA grew its gross earnings within the period by 17.3 per cent to N247205m from N210715m at the same time in 2014 as income from its main line (banking) rose by 17.2 per cent to N175090m from N149409m. Fees and commission also increased by double digit. It closed at NN47385m, up 15.4 per cent while income from other operations rose by 17.5 per cent to N4850m from N4128m. On the other hand, interest paid ended the period only 8.2 per cent up at N72975m compared to N67449m by September 2014. Expenses incurred to earn fees and commission  as a matter of fact dropped by a significant 86.1 per cent to N680m while personnel costs increas...

There are two major ways people invest in stocks and shares of public limited companies. In the case of private limited companies ( that is, the ones you can not buy or sell their shares publicly) there is only one way through private contact. For public limited liability companies, people buy when such shares and stocks are offered for sale by the issuing organisation, that is the company  and in the case of Federal Government stocks, the Central Bank of Nigeria. This is normally thrown open through advertisements in the media with clearly stated closing dates, offer price and any limitations on quantity people can apply for. This is the primary part of the capital market. The secondary part is the one that involves the Nigerian Stock Exchange. The exchange is the market where people can buy and sell shares they own in quoted public limited companies. This is done through stockbrokers who are, technically speaking, the only ones allowed to deal in the market. All else do bu...

Cadbury Nigeria PLC is apparently having better run with its liquidity position this financial year compared to last year but unfortunately, this has not translated so far in higher profitability. According to the figures for the nine months to September 2015 released this week, compared to its threatening net N15,247m deficit cash position by 2014 September, it now had N860.6m net surplus. The tight grip applied to shore up the situation becomes obvious when it is discovered that Cadbury Nigeria's current liabilities dropped by 7.6 per cent to N13935.4m within the period while decrease in current assets came to 1.31 per cent from N12336.3m to N12173.6m. In the end, the company's working capital position only worsened slightly by 3.28 per cent from September 2014 N1705.9m to N1761.8m. However, none of the relief that appeared in the physical cash position of the company ( up 81.7 per cent to N4545.8m) could be attributed to increase in profit. On the contrary, Ca...

For those who are interested, soon you may be able to own part of the Nigerian Stock Exchange by buying its shares openly at the capital market. How soon? Well that may take a while but the process has taken off in earnest as the NSE authorities announced the formal appointment of  financial advisers who will husband the Exchange through the process called demutualisation. Do not be fooled by the mouthful technical word because it simply means that an organisation owned by a group of people who came together by mutual consent for non-profit reasons  changes into a profit- driven publicly owned company. According to the announcement, the NSE has appointed Rand Merchant Bank and Chapel Hill Denham as financial advisers to prepare the ground for the exchange itself to become a publicly quoted company. The road to today started on March 11, 2014 according to NSE chief executive Mr Oscar Onyema, when the exchange asked for Proposals  from any interested consortium that mus...

The way people monitor their investment in stocks and shares depends on the original goal they set for themselves. Monitoring for security is different from monitoring while aiming for control or desiring high returns. Those who desire security of investment above all else, are people who have future plans for their investment or accumulated savings. Some invest to secure their family future or pay Juniors fees when he starts schooling while others could just be providing for retirement. For this group of people, the key issue is not how stocks and shares are monitored but how safe the decision to invest in a particular stock or share was, in the first place. Thus, they are always better advised to invest in federal government stocks and shares of Companies with a track of steady growth and dividend payment. From then on, monitoring becomes less crucial although it is good to play safe by watching the net assets per share value of choice companies from time to time. For those aimin...

Dangote Flour Mills PLC could do with divine intervention this financial to ensure that it ends it outside the loss league and liquid enough to stay healthy. Or so its interim figures to June 2014 indicate so clearly. More chronic, it seems, is the company's hunger for cash. Despite drawing down receivables 21.8 per cent to N5962.8m from previous N8143.6m and increasing its current liabilities by 38.1 per cent to N51696.1m; Dangote Flour mills still ended June 2015 with working capital deficit that was more than double the level clocked at the same time in 2014. Yet, its trade payables also went up by 14.6 per cent to N13657.2m. As a result, interest paid rose by 22.3 per cent to N2549.7m while interest received dropped by 48.9 per cent to only N3.13m. However, Dangote Flour Mills seems desperate for profit too. It ended 2014 financial year with N9285m loss, This was higher than the N6282.3m loss by June of the same year thus implying that the situation grew worse. Yes, indeed,...

R. T. Briscoe Nigeria PLC may end the current financial year still seeking an elusive winning hand to play for a glorious ending. That is going by its released figures for the half year to June 2015. According to the figures, it is not only a tale of drops all round but also, slower decreases in areas faster ones would have delivered a good ending in spite of the times. In the first place, by half year, R. T. Briscoe's turnover was down 36.3 per cent to N6418.3m and when added to income from other sources (N30.8m, down only 5.23 per cent); total income for the period eased by 36.2 per cent to N6449.1m from N10112.6m by June 2014. Then cost of sales offered a slight help by dropping 37.2 per cent from N8447.6m to N5304.6m. This meant that gross profit went down by a lower 31.8per cent to N1113.7m. But that is where the formula stopped working. Compared to the decrease in earnings, distribution cost decreased by only 5.39 per cent to N557.8m and administration cost drop...

Quite frankly, there could be as many reasons as there are people who invest in stocks and shares worldwide but a linking thread can be drawn to aggregate these rather personal reasons into the following clear groups: NO TIME TO SPARE. All human beings earn a living by investing their time ( attention); their expertise and their resources. Many do discover that they have the resources but do not have time to be involved in day to day running and monitoring of any company they must invest in to make more money. They have the option of living such monies in the bank as interest earning savings or deposits; playing the shylock by lending to others; embracing real estate most likely while depending on an agent; or buying stocks or shares to allow the money alone work for them. All of these investment outlets have their own risks but many have discovered that if one truly has no time to devote extensively to running or monitoring one's investment, the best option is to invest s...

If the trend it clocked in 2014 financial year is anything to go by, then Infinity Trust Mortgage Bank PLC  is now set like concrete to end 2015 with still rather strong double digit profit margin but short of 2014 close. According to the nine months figures to September released recently, Infinity Trust Mortgage may settle for less gain on each Naira income if its battle  with personnel cost continues to be lost; income from non-core business continues to drop and depreciation and write off of intangible assets remains relatively high. The company had by September recorded a healthy 31.4 per cent increase in interest income which was made more juicy by only 8.41 per cent rise in interest expense but its total income increased by only 9.03 per cent to N555.2m from N509.2m. Principally, this was more because income from other operations dropped by 23.9 per cent to N148.5m from N195.1m even though fees and commission rose by 26.2 per ce...

Stocks and shares are generally just referred to at once as if both are twins or mean the same thing. They are quite different financial instruments. One is proof or certificate of part ownership of a limited liability company (Shares) while the other is proof or certificate of indebtedness of a company or government (Stocks). When it comes to Shares, the key to full understanding lies with appreciation of what it means for a company to be limited. A limited liability company is one in which the risk owners' bear is directly related to how much of the company they own. If a certificate indicates that you own N100 in a one million Naira, you stand to share in profit and loss of the company only to the extent your N100 exposes you and no more. Unlike limited liability companies, those who go into unlimited partnership or prefer to own their own enterprises stand to lose everything should the business fail. Of course, they also take all the profit if it succeeds. The real issue with...

Financial Journalism and indeed, financial analysis, bears a twin burden in the developing nations of the world like Nigeria. It provides reports and analysis for decision making and decision makers and also, has the responsibility to, as much as possible, update the perception and capacity of the majority that are ill equipped to flow along. It is in the light of this burden, Henates Financail Analysis will feature a daily series on the Basics of investment and investment monitoring  starting from Tuesday, October 13, 2015. The series will publish easy to digest bites on the fundamentals of investment especially in stocks and shares starting with answers to the very basic question: What exactly are stock and shares? This series is meant for those with little or no knowledge of the hows, whens, wheres and whats in the world of investing through the stock exchange. SO: * Let us make it a date.

BETA GLASS PLC. Mr Abimbola Ogunbanjo, New Board Chairman Beta Glass PLC has appointed Mr Abimbola Ogunbanjo as the new chairman of the board of directors. He replaces Chief J. B. Oke OON. CHAMS PLC: Mr Olufemi Williams New MD Mr Olufemi Williams  has been appointed the new managing director of Chams PLC. He replaces Mr Demola Aladekomo who retired on September 18, 2015. Mr Williams joined Chams in 1990 as a youth corper ( new university graduate doing compulsory service) and rose through the ranks over the years to become the managing director of Chams PLc subsidiary Super card Ltd. Before his appointment he was deputy managing director after functioning also as chief operating officer. As DMD he was in charge of key corporate projects like Bank verification number (BVN); Anambra State Integrated Development strategy and SIM registration. BOC GASES PLC : Mr Ben Manhiti Mabelane, new Director. Mr Ben Manhiti Mabelane has been appointed a director os BOC Gases ...

It is almost definite that it is not in MRS Oil Nigeria PLC's hands to determine how close to the loss league it ends the current financial year but it is trying hard to stay in control. That is, according to figures released for the first half to June. According to the figures, the cost incurred by MRS Oil from borrowing money to stay active grew by leaps to N466.4 m from only N144.1m by June in 2014. In other words, financiers are getting a much bigger share of the company's value added when compared to 2014.  And what is more, by June 2014, only 34.6 per cent of that full year's charge had been incurred. However, the same figures indicate that MRS Oil is trying very hard to stay in control of its fortunes this year. While turnover dropped by 21.6 per cent to N36984.8m from N47158.8m, it actually  did commendable battle with its costs. In particular, cost of sale dropped ahead of the drop in turnover at minus 22.4 per cent from June 2014's N44217.2m to N34309.7m an...

BOC Gases Nigeria PLC is having single digit profit margin blues this year when compared to last financial year's double digit all through. According to the interim figures to June 2015 released to the stock market, BOC Gases closed the first half of 2014 year with 14.4 per cent profit margin. However, by June this it could only manage 4.83 per cent gain on each N100 sale. This was principally because even though turnover dropped marginally from N1041.2m to N1031.5m for the period, cost of producing the goods sold rose by 23.9 per cent to N545.1m compared to N440m at the same time in 2014. The situation was made worse by 15.2 per cent increase in administration expenses from N220.2m to N253.7m. But very helpful was the 27.8 per cent decrease in selling and distribution costs to N174.4m from N241.6m. In the end, as finance income dropped by 43.1 per cent to N6.15m while finance cost came to N14.6m, BOC Gases profit before tax closed the half year to June down 66.8 per cent to N4...

Vitafoam Nigeria PLC looks set once again to pay a price for continuing growth in turnover in spite of the times. Helped by non-core business, the group manages to grow its turnover but at a price because Vitafoam Nigeria, the company; seem more efficient. According to the figures for the nine months to June 2015 released to the stock market, while Vitafoam Nigeria the company barely increased its turnover, it handled its costs better. From the figures, group turnover rose by 3.74 per cent compared to 0.55 per cent increase for the company. Note though that the company's nine months increase was a n improvement on the 3.6 per cent drop in turnover recorded earlier in the first quarter of the year. In the case of cost management, the reverse was the case. The company's cost of sales increased by 1.49 per cent but overall growth for the group was 5.13 per cent  from N8954.9m to N9414.4m by June 2015. The same thing occurred with administration expenses, increasing by 5 per c...

The first quarter of PZ Cussons Nigeria PLC may not be the best pointer to what a particular year may look like  but this financial year, it looks like the first quarter points to stressful 2016 financial year. PZ Cussons year ends in May on each calendar year and from the figures released to the stock exchange last week for the quarter to August 2015, the Nigerian economic downturn is almost certain to hit below the belt. According to the figures, PZ Cussons closed the first quarter of 2015 with 5.81 per cent gain on each N100 sale and this eventually increased to 9.0 per cent by May year end. However, it was marginally down on the 9.53 per cent reported in the same first quarter in 2014. Now in the first quarter to August 2015, it is very possible that the 3.37 per cent gain on N100 sale recorded can be easily surpassed pointing to a repeat of what happened in 2015 year. But then, the figure is so far below levels recorded in 2015 and 2014 first quarters that obvious...

The answer to this question is not quite. That is if one cane judge with the mid-year figures submitted by six quoted insurance companies to the stock market in recent months. The interim figures were from AXA; WAPIC; UNITY KAPITAL; STACO; SOVEREIGN TRUST AND REGENCY Insurance companies. In terms of gross income ( premium plus non operational income) recorded, three apiece reported drop and growth respectively. The highest growth in gross income. was Wapic's 16.8 per centy on 2014 half year levels; followed by AXA's 14.2 per cent then Sovereign Trust's 6.77 per cent. Top drop in gross income was by Staco at 8.67 per cent followed closely by Unity Kapital with 6.17 per cent and Regency's marginal 0.14 per, cent decrease. Much the same companies reported drops and increase in premium income but the situation changes when capacity to retain risk covered is considered. Here Wapic, Staco and Regency reported decrease ahead of decrease in premium income or les...

As usual, when the cookie threatens to crumble, discerning eyes begin to see it first in the profit and loss account of companies like UACN of Nigeria PLC with tentacles in many sectors of the economy. Now, it is visible in UACN's half year figures to June 2015. According to the brief  released to the stock market recently, the first quarter of the year was rough but within relative control. At least, about 14.7 per cent profit margin recorded by the first half of 2014 only eased to 13 per cent as profit for the first quarter dropped 21.2 per cent. That was ahead of the 10.7 per cent drop reported in turnover. Come second quarter, however, this seeming elbow grip turned into a stranglehold. UACN recorded a slight drop in turnover in this quarter by 3.54 per cent to N19,646m from N2030m at the same time in 2014 but grappled with 68.4 per cent rise in distribution and administration costs to N4815.3m In the end, in the second quarter alone, despite 56.4 per cent decreas...