DAAR COMMUNICATIONS: SO LATE AND STRANGE

The audited figures of Daar Communications PLC for 2014 hit the stock market this week so late but came up with one main fact: It was a year the tax man pushed the company into loss league.
According to the figures, virtually everything business went well during the year and Daar Communications was set to close with profit but alas, tax liability turned it into loss after tax.
From the figures, the company ended December 2014 with profit before tax of N428.4m indicating a dramatic 115.8% leap out of the N2702.9m loss before tax in 2013.
However, after providing for N535.4m tax for the year, it ended with N107m loss which shareholders have to bear and hope for shareable profit in another year.
Interestingly, there was some good disposition from the tax man too within the year because the bill provided for 25.1% less than the N715m provision made in 2013.
In the end, 2014 was one year the company would at worst love to repeat, not go below.
It was a year income from all sources were on the go and virtually all expenditures were well under control.
Core revenue rose by 24.4% to N6973.4m from N5607.5m while total income increased at a higher 34.2% from N6135.74m to N8233.7m. This was as finance income rose by 43.7% to N751.4m from N522.8m and income from other sources leapt to N508.9m from a mere N5.44m in 2013.
Amidst the good run, only selling expenses ended growing at all and that was by 1.82% to N72.6m from N71.3m.
Direct cost dropped by 1% to N5302.5m from N5356.1m while administration costs declined by 24.8% to N1888.6m from N2512.7m. Also finance cost  at N541.7m was 39.7% less than 2013's N898.6m.
All the balanced inflows and outflows led to less liquidity aches for Daar Communications as well with working capital deficit dropping from N7111.5m in 2013 to N4987.8m.
SO:
* No doubt about it, 2014 looked the year Daar Communications will always love to build on.
* However, so much remains to be done before liquidity pressures can vanish and may be, before shareholders smile to the bank to access dividend paid.

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