TRANS-NATIONWIDE EXPRESS' ICING ON THE CAKE

For Trans-Nationwide Express PLC the year 2015 was good but cash management made it better
According to the audited figures for the year, it was a good thing that the company reduced its overdraft by 67.3% in 2015 from N18.1m to N5.91m and so ended with 7.38% decrease in finance costs to N5.52m from N5.96m.
This turned out to be Trans-Nationwide's icing on the cake that made it much more tasty.
The core revenue of the company had grown by 11.2% to N798.6m from N718m  with cost of sales happily lagging behind with only 5.14% growth to N310.7m from N295.5m.
This resulted in 15.4% rise in gross profit to N487.8m from N422.5m that was dampened by 56.7% drop in income from other sources to N1.59m and  almost at par increase in administration costs, up 10.1% to N408.2m from N370.7m.
That was when the drop in finance costs came in handy to grow profit before tax by 52.9% to N75.7m from N49.5m.
That meant that Trans-Nationwide profit margin closed the year at 9.46% as against 6.86% previously
SO:
* Running down cash by 44.9% to N11.8m, inventories by 26.9% to N6.85m to bring down overdraft and its attendant high cost was a good thing.
* However, stopping trade receivable from mounting by 15.6% to N275m from N237.8m  would have made the icing even taste better.

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