PAINT & COATINGS: WEAKENED KNEES.

Paints and Coatings PLC was virtually overwhelmed by cost pressure in 2015 and so, couldn't but end the year on weakened knees. That is, according to figures released recently.
First, core business revenue refused to grow. It decreased by 6.19% to N3090.1m from N3294.1% leaving non-core revenue to reduce that to 5.94% drop in total revenue from N3299.6m to N3103.5m.
Then cost of sale showed its own sign of being the boss by dropping by only 4.74% to N2161.7m.
That was even better than the very marginal 1.19% decrease in administration expenses to N779.2m from N788.6m recorded.
Finally, along the same way, finance cost rose by 64% to N15.8m from N9.63m.
It could have been worse for Paints & Coatings but for solid  percentage increases recorded in income from other sources and interest received.
Income from other sources more than doubled to N13.2m from N5.38m while interest received increased to N280,000 from N66,000.
The one cost unit that more than responded to control was selling and distribution costs that went down by 73.1% to N4.35m from N16.2m.
In the end,  Paints & Coatings gain on N100 income dived from year 2014's N6.54 to N4.36.
SO:
* It will make business sense in 2016 for emphasis to shift to how to bring all costs more under management control.
* It is surprising seeing finance cost grow so fast while the company's liquidity and cash position looked so healthy by 2015 year end.