UNIVERSITY PRESS PLC: EYES ON LAST YEAR'S MARK.

The performance of University Press PLC for the year to March 2026 may be close to what was  achieved in 2015 financial year, if figures to September are anything to go by.
According to the figures released not too long ago, 2014 pattern is playing itself out. For example, in the first half of 2014 University Press closed with 25.4% profit margin after being helped greatly by 35.3% clocked in the second quarter between July and September.
This year the story is almost the same. The second quarter gain in each N100 income was N35.1 but in the six months to September the actual came to only N24.
The main reason being that more revenue flowed in within the second quarter while profit before tax dropped at a relative slower pace when compared to the first quarter
April to September revenue came to N1140.4m that is 13.8% down on corresponding levels in the previous year.
Of this, N995.1m was earned in the second quarter alone representing 7.81% decrease on same period last year.
In terms of cost growth, the expenditure head in which second quarter did not set the pace was administration costs where as against 4.86% increase in the second quarter to N112.1m. overall for the half year was N192.2m, down 1.79%.
It dictated the pace in marketing and distribution costs with second quarter bill dropping by 10.6% to N106m compared to only 7.79% decrease to N190.6m for the whole half year.
However. University Press was more liquid in the first half to September 2015 when compared to  the previous year. Its closing working capital was above N1bn compared to less than N800m by march 2015.
Its cash level at N234.9m was considerably higher than March 2015's N154.1m in spite of beefing up inventories to N1151.3m from N1056.2m and increasing trade receivables to N584.6m from N217.8m.
THUS:
* It may be wise as an investor to study full year figures to March 2015 more closely.
* It is possible too that with the recent decrease in benchmark interest rate. University Press will earn less as finance income.

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