JAPAUL GROUP: PRAY, LET IT NOT BE TOUGHER
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 to N2248.5m and finance charges closed at N712.7m, up 20.9 per cent on the N589.7m recorded same time in 2014. It was only interest paid on leased assets that dropped within the period by 33.9 per cent to N179.4m from N271.6m to offer some relief that was like a drop in an ocean.
In the end, Japaul Group, with its strong root in maritime business in Nigeria, ended mid year to June 2014 with N1919.3m loss or N32.6 on each N100 income earned. This compares very unfavourably with the even if marginal profit of N206.2m previously which worked out at an average of N3.15 gain on each N100 income.
SO:
* All things being equal, there is no doubt at all a major headache for the rest of the financial will remain the groups worsening profitability and liquidity position. By June its working capital was 97.7 per cent deeper in deficit.
* There is hardly any hope for dividend and indeed, profit attributable to shareholders in the near future unless the present ill wind blows over. Hopefully, it will eventually.
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 to N2248.5m and finance charges closed at N712.7m, up 20.9 per cent on the N589.7m recorded same time in 2014. It was only interest paid on leased assets that dropped within the period by 33.9 per cent to N179.4m from N271.6m to offer some relief that was like a drop in an ocean.
In the end, Japaul Group, with its strong root in maritime business in Nigeria, ended mid year to June 2014 with N1919.3m loss or N32.6 on each N100 income earned. This compares very unfavourably with the even if marginal profit of N206.2m previously which worked out at an average of N3.15 gain on each N100 income.
SO:
* All things being equal, there is no doubt at all a major headache for the rest of the financial will remain the groups worsening profitability and liquidity position. By June its working capital was 97.7 per cent deeper in deficit.
* There is hardly any hope for dividend and indeed, profit attributable to shareholders in the near future unless the present ill wind blows over. Hopefully, it will eventually.
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