FULL YEAR RESULTS (5): Caverton's one solid support, eTranzact's good times.

CAVERTON OFFSHORE SUPPORT GROUP: ONE SOLID SUPPORT.

In the financial year 2015 Cavertpn Offshore Support Group PLC could only bank on one solid support to lean on: Income from other sources.
Sure, according to the audited results, core business still provided the main reason for being in business by contributing lion share of revenue, but it ended 6.75% down on 2014 levels.
More significant was the fact that even the cost of generating this lower core revenue increased by 4.56% thus depressing gross profit by 21.2% to N14605m.
It was income from other sources that almost tripled to N1040.1m that not only reduced total income drop to 3.98% at N24259.9m but also helped to cushion the full effect of the cost of sake growth amidst revenue drop.
Caverton did a good job with administration cost though by reducing it by 15.6% to N6092.9m
However, not good enough to avoid 35.3% decrease in profit before tax to N1767.1m all because finance charges added to the pressures on the bottom line by rising 32.9% to N1794.8m.
The end result was that gain on each N100 income dropped to N7.28 from N10.8 but that was not the end of the matter.
As Caverton invested in fixed assets to bring closing value 8.79% up at N20290.5m, its working capital deficit jumped to N3287.1m from 2014's N384.2m despite growing payables by 40.5%.
Liquidity was also stretched by 30.9% increase in prepayments, 23.6% rise in receivables and 20.3% top up of inventories.

CAVERTON OFFSHORE SUPPORT GROUP PLC (Nm)
                             2015.         2014
Total revenue  24259.9    25266.6
Core revenue   23219.8.   24900.1
Direct cost.      14605.0.   13968.3
Gross profit.      8614.7.    10931.8
Administration  6092.9.     7217.9
Other income     1040.1.      366.5
Finance cost       1794.8.    1350.5
Profit before tax. 1767.1.    2729.9
Working capital  (3287.1). (384.2)
Fixed assets.    20290.5.   18651.1
Inventories          1457.2.     1211.7
Receivables.        8632.3      6985.4
Prepayments.         98.4.           75.2
Profit margin %.       7.28.        10.8

e TRANZACT PLC: 2015 G00D TIMES.

eTranzact PLC had a great time in 2015 despite being unable to come to grips with its overhead.
According to full year figures, core revenue growth was slowed by other gains to arrive at 21.4% increase in total income to N8884.9m.
Core revenue had risen by 22.3% to N8671.9 accompanied by far less 11.7% increase in cost of sale to N6199.5m.
Investment income had also done well by closing at N185.6m from N70.3m
But Other gains declined by 82.2% to N27.4m just as administration cost applied the same kind of pressure by ending the year 48.9% up at N1512.5m
On the other hand, selling and marketing bill dropped by 26.1% to N108.9m
Eventually, eTranzact ended 2015 with 12% profit margin as profit before his came to N1063.9m up 76.1% on 2014 figure.
As some icing, the company's liquidity position was also more solid with working capital closing at N1978.9m compared to N1507.7m previously.

eTRANZACT PLC (Nm)
                          2015.          2014
Total income. 8884.9.       7316.6
Core revenue. 8671.9.       7092.3
Cost of sale    6199.5.       5548.9
Marketing etc   108.9.         147.4
Administration 1512.5.      1016.0
Investment inc.  185.6.          70.3
Other gains          27.4.         154.0
Profit before tax 1063.9.     604.3
Profit margin %      12.0.       8.26
Working capital 1978.9.    1507.7

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