FULL YEAR RESULTS (2): LITTLE DROPS FOR C & I LEASING; TURNED TIDE FOR MORISON?

C & I LEASING PLC: INFLUENCE OF MINOR STREAMS.

If nothing else, the experience of C & I Leasing PLC in 2015 shows that sometimes, it is the way little drops of revenue flow in that makes a difference.
Or so the audited results for the year clearly show. Of course, total income was still dominated by lease rental, outsourcing income and vehicle sales, the bottom line was helped more by higher margins chipped in by tracking income, other operating income aided, of course, by good grip over distribution and other operating costs.
If not, the increase in gain on each N100 income to N3.19 from N2.97 would have been a dream.
Lease rental income had grown by 6.47% to N8177.9m but expense incurred on this rose by 24.5% to N2193.9m thus watering down net contribution.
Much the same way, Outsourcing income grew by 10.5% to N5509.7m but again attendant cost increased by 10.8% to N4821.9m.
In the case of Vehicle sales, it not only lost in contributions to the bottom line but also in contribution to total income. Its revenue for the year dropped by 47.7% to N259.2m and to make matters worse, cost associated with it went down by a lower 46% to N210.9m.
Thus the final total income growth of 5% recorded to N14577.7m was as tracking income more than doubled to N130.6m ; Other operating income rose by 20.5% to N481.3m and in spite of 92.5% drop in interest income to N20.4m.
It was at this stage, in spite of 145.3% increase in impairment provision to N130m that 18% drop in direct lessing expense to N2681.7m; 77% dive in distribution cost to N13.5m and 4.07% decrease in Other operating expenses to N1297.6m paved the way for the higher profit margin recorded.
This was despite 6.82% rise in personnel cost to N762.4m ahead of growth in total income.

C & I LEASING PLC (Nm)
                        2015.               2014
Gross income 14577.7.     13883.9
Lease rental.     8177.9.      7680.8
Lease Expense  2193.9.      1761.9
Outstanding Inc 5509.7.     4987.4
Outstanding exp 4821.9.    4353.3
Vehicle sales.        259.2.      495.6
Vehicle sales exp  210.9.      390.5
Tracking income.  130.6.        50.4
Tracking expense   31.4.         16.7
Interest income      20.4.       270.5
Other op. Income  481.3.      399.3
Direct leasing exp 2681.7.  3271.4
Impairment.             130.0       53.0
Personnel cost         762.4.   713.7
Other op. Cost       1297.6.  1352.7
Distribution cost       13.5.      58.6
Profit B4 tax.           465.6.     411.8
Profit margin %         3.19.       2.97

MORISON PLC: TURNED TIDE?

Did the tide that landed Morison PLC in huge loss in 2014 finally turn in the company's favour in 2015 or it was just an accident?
Well, only follow up figures for 2016 can fully answer this question but from the audited results for 2015, something good happened to Morison PLC.
Forget the fact that it still could not grow its less than N250m total income as it dropped by 16.1% to N191.32m as follow up to 15.8% decrease in core income to N183.3m.
The good thing was that the direct cost of generating this dropped by 18.8% to N114.4m; operating expenses declined by 31.5% to N87.2m and to boot, finance cost tumbled by 57% to N83,000.
All these not only reduced the impact of the total income drop but more importantly helped mitigate the effect of 24% increase in distribution cost to N35.1m and 21.4% dive in other operating income to N8.02m.
Hence, loss recorded in 2015 came to only N46.1m compared to N88.3m in 2014. Decoded: this comes to 47.8% improvement in Morison PLC bottom line though it remains at N24.1 loss on each N100 income as against N38.7 loss in 2014.
Now, will 2016 improve on that? Hopefully.

MORISON PLC ( Nm)
                          2015.          2014
Total income   191.32.        228.0
Core revenue   183.3.          217.8
Cost of sale     114.4.          140.9
Distribution.      35.1.            46.2
Operating exp.  87.2.          127.3
Other op. Inc.     8.02.           10.2
Finance exp.      O.83.           1.93
Profit b4 tax.    (46.1).       (88.3)
Profit margin % (24.1).      (38.7)

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