FULL YEAR RESULTS (6): PHARMA DEKO PLC, CHAMS PLC.

PHARMADEKO PLC: 2015 NOT QUITE EUREKA.

For Pharma Deko  PLC, the year 2015 was a remarkable year because it hit a bottom but unfortunately, it did not quite turn out to be time to shout, eureka, I have found it.
According to the audited results for the year, Pharma Deko  ended 2015 with profit before tax of N701.7m compared to N 150.2m in 2014 but clinking glasses on celebration will be premature.
This is because the bulk of the year profit was the type that will be hard to come by in 2016 and beyond.
A major contributor was Other income which came N885.4m but was made up of N620.1m gain from sale of one of its factories and some other income that are more capital gain than current income.
However, Pharma DEKO did benefit immensely in 2015 from the new money injected by shareholders at premium. It ended the year with considerable interest income compared to finance cost hitherto and reversed its liquidity position for good.
Of course, these can be hoped on in 2016 but the issue was that core revenue actually dropped in 2015 while direct cost and administration expenses increased rather substantially. Thus only selling and distribution cost declined.
In other words, it is hard to see Pharma Deko  replicating the 25.2% profit margin recorded in 2015 if none of revenue and cost realities were addressed in 2016.

PHARMA DEKO PLC. (Nm)
                      2015.             2014
Total inc.    2783.2.          1586.2
Core inc.     1482.0.          1566.2
Cost of sale 769.8.            642.9
Other inc.     885.4.              9.37
Selling etc    171.1.            213.7
Admin. Cost 1100.5.          492.0
Impairment  (39.9).              10.6
Finance cost.  -                     87.9
Write back gain 415.8.          -
Profit before tax 701.7.       150.2
Profit margin %  25.2.        9.47

CHAMS PLC: NOT CHARMING

There was nothing charming for Chams PLC in financial year 2015 and so, it ended the year well in  loss league.
From the audited results for the year, the trying year closed with whopping drops in all income streams with total income and core revenue declining by 59% and 60.9% respectively.
Then cost of generating core revenue eased by 52.4%, not high enough to match core revenue decrease while administration cost closed the year at N3778.8m compared to N1369.4m in 2014.
Also finance expense increased to N161.5m from N120m while finance income dropped to N0.05m from N1.51m.
However, Chams PLC played s good hand by reducing its trade receivables by 44.3% to N3545.4m but it only helped in saving it from going too far into working capital deficit due to the huge loss recorded.
To help stabilize liquidity. Chams had increased loans by 18.2% to N553.4m although cash on hand still ended at N157.4m, that is lower than 2014's N228.8m.

CHAMS PLC: Nm
                        2015.          2014
Total income 1768.85.    4316.61
Core revenue  1610.5.      4115.8
Cost of sale    1221.5.      2565.5
Other income.   158.3.        199.3
Administration 3778.8.     1369.4
Finance cost       161.5.       120.0
Finance inc.           0.05.        1.51
Profit before tax (3393).      261.8
Profit margin %.  (191.8).      6.06
Working capital. (445.4).  2889.9
Loans.                   553.4.     468.3
Cash.                     157.4.     228.8

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