BETA GLASS PLC: OVERSTATED PROFIT?

It looks like the profit before tax of Beta Glass PLC for the nine months to September was overstated in error.
The figures down loaded from the Nigerian Stock Exchange web site recently, included profit before tax (PBT) that was most certainly overstated because finance cost within the period was wrongly added to finance income to arrive at net finance income instead of being subtracted from it.
From the figures, operating profit before this error occurred was NN1869.4m within the nine months compared to N1738m at the same time in 2014.
Then it was stated that finance income was N189.9m while finance cost was N173.7m obviously, as balance sheet figures confirm, this was because an overdraft of N934.9m was taken.
However, both finance income and cost were subsequently added together to produce net finance income added to the operating profit to arrive at N2233.0m PBT instead of N1885.6m if the cost component was not taken as income in error.
The same thing also occurred in the case of corresponding figures to September 2014 but curiously did not occur in the figures for full year 2014 which showed finance cost of N71.2m in bracket that is implying a minus.
Hitherto. the main good news in the nine months, according to the figures, was the gain of N386.5m from foreign exchange as against N97.9m and N51.7m losses by September and full year to December 2014 respectively.
Yes, there was also 37.9% rise in income from other sources to N189.6m but that only saved operating profit from dropping under pressure from turnover decrease accompanied by less decrease in direct costs amidst double digit increases in administration and selling and distribution costs.
However, on the real PBT level, Beta Glass PLC still boasts gain on each N100 income of N15.8 compared to N14.4 by September 2014.
THUS:
* The accountants of Beta Glass and even Stock Exchange overseeing officials may have take a look at the PBT figures once again to establish if truly it is as stated.
* Meanwhile, especially if 2014 trend obtains, Beta Glass is likely to finish 2015 with higher margins compared to 2014. That is, if fourth quarter higher margin business in 2014, persists in 2015 last quarter.

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