MAY & BAKER NIGERIA PLC: BELTS STILL IN PLACE.

The belts that were tightened last year to help lift May & Baker Nigeria PLC from N93.5m loss by nine months to N101.2m profit at full year, seem to be intact. Or so figures for the nine months to this September show clearly.
According to the unaudited figures, the company continues to keep good lid on its costs and to boot, is doing a fair job shuffling its liquidity to pay less interest.
May & Baker's overall income had risen by 8.15% to N5308.3m mainly as main line revenue grew by 8.88% to N5283.8m from N4852.9m.
The reduced gross income growth was as a result of 82.9% drop in income from other sources to N8.85m and in spite of rise in investment income to N15.6m from N3.6m previously.
However, income from other sources turned out to be the only weak link in the chain as cost of sale increased by 8.2% to N3531m, distribution and selling costs remained unchanged  and administration expenses rose by only 2.3% to N444.5m from N434.5m.
Then decisively, Finance cost dropped by 8.67% to N425.4m on September 2014 N465.8m.
Of course, this was a pay back for draw down of receivables by 2.28% to N1546.2m; taking of less loan while repaying more; and new investments that propelled rent received to N14.5m from N0.26m and 29.4% build up of trade payables to N1195.5m from N923.8m by 2014 September.
While shuffling its liquidity May & Baker had had to increase current borrowings by 10.2% to N1381.5m but then this was as non current borrowings went down by 22% .
As a result, as against N93.5m loss at the same time in 2014, N60.6m modest profit was recorded.
This meant that May & Bakers profit margin came to 1.14% compared to minus 1.9% previously though down marginally on the 1.42% reported by 2014 year end.
SO:
* May & Baker may end year 2015 far better with hopes on strong recovery in the fourth quarter like it happened in 2014.
* that is, provided inventories built up by 22.8% in September end up in the market due to increased demand.

Comments

Post a Comment

Popular posts from this blog

2018: TWO BLOWS TO UNITED CAPITAL PLC.

When a child who in a previous examination scored 80%, comes home with a new report in which he now scores 67.2%, the parents have a right to sit him down and ask how come. So it must be between Nigeria's United Capital Plc and its discerning shareholders since the release of the company's 2018 audited figures. In 2018, all said and done, says the annual report, United Capital ended with 67.2 % profit margin compared to 80.2% in 2017. How come? What comes across from the figures was that the company received 2 blows to the jugular in 2018: Sharp drops in Investment income and fair value gain. Investment income dropped by 10.8% to N4422.8m from N4965.2m while fair value on financial assets plunged by 79.7% to N6.173m from 2017's N30.387m. In view of both drops, the group's gross earnings grew by only 33.9% to N9259.4m despite strong growths in net trading income, and net operating income leap to N757.5m from N143.5m  Other income streams ended with single digit increase....
Read more

KENYA AUCTIONS Ksh 13.84bn Treasury Bonds.

The Central Bank of Kenya (CBK) will from Tuesday December 18 to 27th 2018_ auction Ksh 13.84bn worth of fixed income Treasury Bonds with issue date December 17, 2018. According to official statement from the Director of Financial Markets Irene Njiru on Monday December 17, auction will continue throughout the stated period or close once the target money to be raised is reached, whichever comes first. Bid value will be paid for at most by 2pm December 31, 2018 while auction results will be made public on December 28, 2018 after the scheduled closing date. The bonds are being issued at 12.502% fixed interest at an adjusted average price of Ksh 100.468 for Ksh 100 bond. However, price payable after auction results publication will be average of successful bid prices based and allotment will be on first come first served basis. Meanwhile, the monetary operations and debt management department has released the interest payment schedule for 13 Treasury Bonds due January and February 2019. Th...
Read more

NAIROBI SE's HIGH PRICED EQUITIES.

In the wake of Nigeria's high priced quoted companies posted in this blog a while ago, Henates took a look to at Nairobi Securities Exchange June 23 official list to identify its high priced equities and the outcome was interesting too. Of the 66 companies quoted on the market by June 23, 15 or 22.7% were valued averagely at above 30 times nominal value. A word of caution though: There are two clear differences between the Nigerian stock market list and that of Nairobi: In the Nigerian one most listed companies have par or nominal value of N0.50 as is there is an implied agreement on this. On the other hand, at Nairobi most of the equities do not share common par value, they differ greatly. Then another thing, Nigerian equities are not valued below par, Nairobi ones can and many are so valued. Of the top 15 high priced equities at the Nairobi market, Safaricom topped with because by June 23, at 23.25 Ksh average price, it was valued 465 times its nominal value of just 0.0...
Read more