TOURIST COMPANY OF NIGERIA: HELP FROM SHYLOCK

In the half year to December, Tourist Company of Nigeria PLC got help from unexpected quarters: finance costs which actually ought to be the Shylock's share of the cake.
According to figures for the period released to the stock market last week, TCN PLC could not record revenue growth or have a super effective control over costs which then left only significantly decreased finance charges to make the day.
Its revenue within the half year came to N1611.2m down 0.12% from N1613m by the same time last financial year.
This was happily accompanied by 0.14% drop in total expenses to N1635.7m from N1638m.
Hence, operating loss decreased sluggishly to minus N24.5m from N24.9 m previously but the point was made, TCN PLC kept costs within control.
However, the real good news emerged when finance costs dropped by 67.6% to N282.5m instead of N871.7m  in spite of 23.3% increase on borrowings within the period from N9027.1m to N11132.5m.
Hence a sigh of relief was inevitable as total loss before tax closed at N307m compared to N896.6m previously.
In other words, some of the holes that led to N55.6 loss on each N100 income by December 2014 were blocked leading to only N19.1 by December 2015.
However, even if the year closed on that note by March it will be good but certainly, it won't be time to celebrate yet. Why? Because accumulated losses had by half year cleaned out shareholders fund.
By December 2015, according to the figures, shareholders fund was in the red by N1745.5m after closing same time in 2014 at N307.3m positive.
SO:
* The target for the next  half year is set: Put a stop to the annual losses in spite of the times.
* Tap into the relatively improved liquidity and cash position to seek ways to grow more income with high margin.

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