NEIMETH INTERNATIONAL PHARMACEUTICAL: STILL LEAKING.

The boat of Neimeth International Pharmaceuticals PLC is still leaking. In fact it leaked so badly in the year to September 2015 that Shareholders fund is now almost half of what it was at the start of year 2014.
According to audited figures released this week, Neimeth shareholders fund by the year close was N1157.3m, down 22.5% on the N1493m by 2014 year close which was itself 13.9% drop on year 2013 close.
This was because the loss for 2015 at N21.5 on each N100 income was almost the 2014 figure of N11.9.
It all ended that way in 2015 because the story comes to a tale of income drops amidst  increase in expenses and, in the case of direct cost, in spite of more than proportionate decrease.
Neimeth's total income dropped by 11.7% to N1468.5m as main line business revenue dropped by 10.3% to N1460.7m from N1628.4m and income from other sources went down 78% to N7.8m from N35.5m.
Showcasing the lone good news in the figures was the 11.2% decrease in cost of sale to N776.1m from N874.4m thus implying that there was increase in gross profit.
Unfortunately, this increase was not good enough to withstand 1.44% increase in overheads to N916.1m from N903.1m and 9.12% rise in finance charges from N84.4m to N92.1m.
This did not come as a surprise because long term borrowing closed the year 29.4% up at N177.8m compared to N137.4m in 2014.
In the end, the year's loss came to N315.8m compared to N198.2m previously.
Neimeth's working capital is not in the red yet but dropped by 18.4% to N897m from N1099.5m. Decoded: it was tougher managing liquidity within the period.
SO:
* The new CEO appointed has a clear mandate: bring down Neimeth International's overheads and try to grow more income flow at the same time.
* Devising new ways to strengthen liquidity management could help too especially in reducing finance charges.

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