DN TYRE & RUBBER: TO BE OR NOT TO BE.

One thing was imperative from the figures to June 2015 released not too long ago, the time has come for shareholders to decide whether DN Tyre & Rubber should continue in business.
The figures were for nine months to June and ironically it painted a picture of a company that had just lifted a huge weight off its shoulders and so should look ahead with more confidence.
Well may be it can but the decision still has to be taken whether shrinking sales and yearly losses is worth the candle of hope.
Within the period DN Tyre turnover dropped by 33.1% to N66.4m from N99.3m. N
At the same time no operating cost dropped that fast. Cost of sales declined by 28% to N67.7m. Hence gross loss of N1.27m was recorded compared to modest N5.38m gross profit by June 2014.
Then selling and distribution cost dropped by 21.4% to N0.997m and administration expenses declined by 3.76% to N145.8m.
All these laid the foundation for higher loss but that was not to be because interest paid came to only N4.05m down 99.1% on N442.5m previously.
How come? Simple, DN Tyre sold some fixed assets and landed property  realising net cash of N6559m from these and other related activities then decided to considerably reduce the debt profile.
Then in view of the capital profit thus recorded shareholders fund deficit dropped by 98.3% to N93.8m from N5401.1m.
The loss thus recorded within nine months dropped to N80.7m from N510.2m.
SO:
* If it is not possible to refocus the company it is time to decide its future.
* With loss on each N100 income still up to N58.6 amidst unsure market growth it is time to take a decision on what next.

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