PRESCO PLC: AHOY, OH MEMORABLE YEAR.

Presco PLC is headed for a memorable finish to the 2015 financial year with all angles of vision showcasing good news by nine months to September 2015.
According to the brief released recently, revenue is growing well, cost increases are being absorbed and fund joggling is paying off.
Within the period, Presco grew its turnover by 16.2% to N8044.4m even though 22% drop in income from other sources reduced increase in overall income growth to 15.4% at N8168.2m compared to N7080.1m previously.
The real beauty was the fact that this turnover growth was generated with direct cost that decreased by 16.6% to N3335.4m from N3997.1m. This delivered 61% rise in gross profit to 4709m with which to absorb other pressures.
The major ones were from finance expenses which jumped by 73% to N581.5m and 20.3% increase in selling and administration costs to N1657.9m from N1378.1m.
In the end Presco not only achieved 61.8% decrease in its working capital deficit to only N420.7m from N1100.9m but significantly grew its gain on each N100 income from N42.5 recorded in September 2014 to N59.1.
DECODED:
* Even in these times, it will be hard for Presco PLC to end the current year in dire straits. On the contrary, it will be smiles all the way, all things being equal.
* Presco is yet to cage its finance costs though and that could offer some challenges in these memorable times for the company.

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