FULL YEAR RESULTS (4): 2015 tough indeed for UACN, not tantalising for Tantalizers, but great for ABC Transport.

UACN PLC: TOUGH INDEED.

The financial year 2015 was indeed tough for UACN, the veteran Nigerian conglomerate.
From the figures for the year released earlier, nothing seemed to work in UACN PLC's favour within the year as core and total income dropped, and costs increased almost without exception.
The group total income came to N76671.9m, down 15.6% while core revenue dropped by 14.6% to N73146m.
The higher decrease on total income was because Other gains dropped by 43.4% to N1959.4m and finance income was lower by 10.2% at N1566.5m.
The legendary UACN grip slipped in 2015 as selling and distribution cost increased by 8.54% to N3318.7m, and administration expenses rose by 5.05% to N6881.9m.
Even share of profit from subsidiaries dived by 40% to N1787.5m.
All said and done, with cost of sale dropping only slightly ahead of core revenue drop, UACN PLC ended 2015 with profit before tax of N7943.8m down 43.6% on 2014's N14096.9m.
Sure at 10.4 % the resultant profit margin was still comfortable, it could not be compared to 15.5% in 2014.

UACN PLC (Nm)
                         2015.             2014
Total income 76671.9.        90863.3
Core revenue 73147.0.        85654.3
Cost of sale   56581.0.        66471.8
Other gains.   1959.4.          3463.9
Selling Distr.  3318.7.          3628.7
Administration 6881.9.       6550.8
Other losses     716.3.             73.4
Finance income 1566.5.     1745.1
Finance cost.      3017.6.     3020.8
Share of profit.    1787.5.     2979.0
Profit before tax  7943.8.    14096.9
Profit margin %      10.4.         15.5

TANTALIZERS PLC: NOT TANTALISING

From the audited results for 2015, the one thing that was tantalising for Tantalizers PLC was the fact that quantum loss dropped to N695.9m from N771.6m in 2014.
It came about as income from other sources jumped by 80.7% to N424m.
It was this that reduced drop in total income to 25.3% at N2355m after core revenue decreased by 33.8% to N1931m and also cushioned blows from cost units.
In particular, cost of sale had decreased by 29.3% to N1167.8m, that is less than income drop, and lower percentage decreases in administration and distribution costs had also been recorded.
Of course, with distribution cost going down by 13.8% to N55.8m and administration expenses dropping by 15.5% to N487.1m this was proof that Tantalizers tried it's best to cage costs.
So, it somehow earned the reduced loss thus reported especially as finance charges increased by 7.02% to N208.8m.
Unfortunately, because of the more than a quarter decrease in total income, the company's loss on each N100 income actually increased to N29.5 from N24.5 previously. Surely that's not tantalising.

TANTALIZERS PLC (Nm)
                        2015.               2014
Total income 2355.0.           3153.4
Core revenue 1931.0.           2918.7
Cost of sale.  1167.8.           1651.4
Other income.  424.0.             234.7
Distribution.       55.8.                64.7
Administration 487.1.             576.5
Finance cost.    208.8.             195.1
Profit before tax (695.9).       (771.6)
Profit margin %  (29.5).          (24.5)

ABC TRANSPORT PLC: EASIER THAN ABC.

For ABC Transport PLC, 2015 was a year full of fine breeze, the type that makes things look easier than learning the alphabets ABC.
From the released audited figures for the year, sure total income and core income decreased by 4.31% and 7.49% to N7242.1m and N6797.4m respectively, it was easy going because most cost units were well under control.
Starting from direct cost that decreased by 12% to N5163.8m, that is well ahead of core income drop, it was good breeze all the way as administration cost reduced by 7.15% to N1372.3m; and finance charges decreased by 18.2% to N387.3m.
Added to 179.5% increase in Other gains to N340.1m  and 25.2% lift in fair asset value gain to N2.04m, it was easy to withstand 139.9% increase in impairment provision to N23.7m and 32.4% decrease in investment income.
Thus, compared to N260m loss reported in 2014, the N295.1m profit before tax achieved in 2015 makes the year unforgettable.
That is not to say that there are no rooms for improvement in 2016.
For one at 4.07%, though better than 2014's 3.44% loss, ABC Transport profit margin is still low.
For another, its liquidity position too improved within the year but it is still in deficit although after reducing overdraft by 12.6%; and reducing considerably short and, particularly, long term borrowings.

ABC TRANSPORT PLC (Nm)
                        2015.             2014
Total income 7242.2.          7568.8
Core revenue 6797.4.          7347.9
Cost of sale   5163.8.          5867.5
Administration 1372.3.       1477.9
Other Op. Inc.     102.1.           94.9
Interest income.   0.036          1.97
Fair asset value.   2.04.           1.63
Investment inc.     0.50.           0.74
Impairment           23.7.            9.88
Other gains.         340.1.        121.7
Finance cost        387.3.         473.5
Profit before tax  295.1.        (260.0)
Profit margin %.     4.07.        (3.44)
Overdraft.              296.9.       339.8
Long term loan.   444.8.        876.8
Short term loan   1436.7.     1467.9
Working capital.  (1222.3).  (1504.3)

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