COMPUTER WAREHOUSE GROUP PLC ALERTS ON 2015 LOSS.

Shareholders and the investing public who hope for distributable profit from Computer Warehouse Group PLC (CWG) in 2015 financial year had better forget it and look towards 2016.
According to a notice sent to stock market by CWG's chief financial officer, Mr Obianjulu Ezeh, there is going to be " overall loss in the year 2015" for the company.
This was mainly because the Board of Directors of the company has announced that " a number of significant one-off charges" have to be made in other to present a true and fair view of the company's state of affairs by December 2015. These charges include:
1) Provision for loss recorded due to volatility in the Nigerian foreign exchange market and consequent drop in the value of the Naira within the period.
2) Provision for write off of obsolete inventory particularly the company's investment in VSAT and MPLs network already made obsolete by new technology and changes in business model. Hitherto, CWG was a pioneer service provider to banks in these areas.
3) Provision for bad debts due mainly to income reversal from previous years as a result of cancellation of earlier contracts by customers for which penalties for the breaches are yet to be secured.
Besides, says the notice, CWG was headed for operational loss due to drop in margins and inability to transfer increased cost to customers due to existing contracts yet to expire.
However, Mr Ejeh is optimistic about 2016 prospects not only because the 2015 provisions are one off but also because of recent investment in cloud and subscription based business; increased efforts to make its reseller business more efficient and on going restructuring of operations to focus more on profitability.

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