TRIPLE GEE PLC: NOT TRIPLE BUT....

Triple Gee PLC may not end the year to March 2016 on the triple; more like a slow train still rolling on in spite of the times. Or so the nine months figures to to December 2015 seem to indicate.
However this was more because its distribution and administration costs grew out of step by following finance cost in double digit growth.
Hitherto, Triple Gee appeared to stand a chance by recording growth in turnover that was almost that in direct cost.
According to the figures, there was 4.02% increase in total income for the period to N532.9m compared to N512.3m previously
To produce the goods sold however, only 2.67% increase in direct cost was recorded to N373.9m from N364.2m.
Thus the company's gross profit rose by 7.43% to N159m from N148.1m.
The first pressure to puncture this rising balloon came from overhead costs with distribution and administration expenses at N95.1m, up 10.3% from N86.2m previously.
This meant that operating profit, instead of increasing like gross profit dropped by 9.51% to N53.9m from N62.1m.
Then finally finance bill came to N55.6m compared with N46m previously thus leaving Triple Gee with only N8.29m profit before tax down 55.7% from December 2014's N18.7m.
Triple Gee ended the period better in terms of liquidity though. despite continuing with the reduction of short term borrowing and long term borrowing that started in previous year last quarter.
SO:
* It is somehow surprising that finance bill ended that high despite the reduction in indebtedness and CBN reduction of benchmark interest rates.
* May be finance charges may not grow that fast come year end and that should help Triple Gee.

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