NIGERIAN ROPES PLC: THE KNOT IN 2015.

Nigerian  Ropes PLC entered 2015 financial year roped in N49.9 loss on every N100 income. Thus it was more preoccupied with how to untie the knot.
According to the audited figures for the year, Nigerian Ropes succeeded to a very limited extent. At least it reduced the loss margin to N48.8 on N100 income.
Trying as 2015 was for most companies, Nigerian laid the foundation for the year end by driving costs hard enough to achieve 11.2% decrease in cost of sale to N217.3m ahead of the 8.87% reduction in core revenue to N340.9m. and also reducing administration expenses by 9.62% to N228.2m.
The 19.4% increase in distribution cost to N19.1m and rise in finance charges by 20.4% to N71.3m did not help matters but this was checkmated by 142.5% increase in other income to N19.4m from N8m in 2014.
Yet, the battle against cost pressure may not be that easy to win in 2016. One, because it will still be against finance costs at a time liquidity remains a problem. And against continued rise in distribution cost components.
But then, easy or not hopeful slight decrease in loss margin needs to be made the beginning of recovery from a bottom.
SO:
* Diversification beckons since hitting half a billion is now a tough job.
* But then that only be done if 2015 very poor liquidity position is reversed through injection, perhaps of new capital and vision.

NIGERIAN ROPES PLC: (Nm).
                         2015.             2014
Total income  360.3.              382.1
Core revenue. 340.9.              374.1
Cost of sale    217.3.              244.7
Administration 228.2.            252.5
Distribution.        19.1.              16.0
Other income       19.4                8.0
Finance cost.        71.3.             59.2
Profit b4 tax.     (175.7).         (190.6)
Loss margin%.    (48.8).          (49.9)

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