ONE LITTLE SLIP FOR ACADEMY PRESS

Academy Press PLC would have ended the period to December 2015 in a better position but for one little slip: It borrowed more to stock up and partially repay medium term liabilities.
According to the figures for the period released last week, even though revenue eased, Academy Press was well in control of most costs and looked set to reap more but, of course, 44% rise in finance cost applied the brakes.
The income decrease was marginal;down 3.19% for total income to N1560.5m from N1610.3m as core revenue eased by 2.93% to N1542.7m from N1589.3m
That was because drop in income from other sources at 15.2% was more significant but as it turned out, not enough to make much difference.
More significant was the fact that direct cost dropped by a higher 3.76% to N1031.9m from N1072.2m.
Then of course most other pieces fell into place as well. Foreign exchange loss declined 59.4% to N23.9m from N58.8m; and distribution costs reduced by 7.05% to N40.9m from N44m although the 0.29% decrease in administration expenses to N412.5m was not quite the round peg in a round hole.
The real punch came from N190.5m in finance charges, compared to N132.2m previously.
This was principally as current borrowings increased by 31.8% to N104.5m from N79.3m led to 60.6% rise in inventories at N660.1m; 43.6% decline in cash and 8.14% drop in less costly medium term liabilities to N1324.8m from N1442.4m.
In the end, in spite of the fairly good cost control, Academy Press PLC reported higher loss (N139.2m) compared to N110.3m previously.
SO:
* To end the current year in better position, Academy Press may have to be more adept in handling its liquidity especially receivables and inventories.
* Losing 8.92% on total income as against 6.85% previously does not lead to smiles.

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