R.T.BRISCOE NIGERIA PLC: ELUSIVE WINNING HAND

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 also was short of income drop. It decreased by 34.1 per cent to N311.4m. Of course, these cost heads are always hard to shrink but a winning hand here always leads to higher profit for all companies.
Finally, cost of funds came in with a bigger hammer as it increased by 69.4 per cent to N1213.5m from June 2014's N716.3m. Hence, R. T. Briscoe found itself deeper in the loss league closing the half with N938.2 m loss compared to N112.9m at the same time in 2014. This translates into loss of N14.5 on each N100 income recorded by June 2015 compared to loss of only N1.12 previously.
IN OTHER WORDS:
* The second half may not be any better for R. T. Briscoe if it continues to repay long term borrowings with more costly over drafts.
* Also, no winning hand will be available if ways are not found to reduce more effectively the cost of distribution and perhaps,  administration.

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