FULL YEAR RESULTS (7): Multiverse Mining and Exploration, SCOA NIGERIA.

MULTIVERSE MINING & EXPLORATION PLC:
PROFIT IN SIGHT?
The financial year 2015 turned out to be one for finally deciding if Multiverse  Mining and Exploration PLC had chance of making profit at all.
According to the results for the year, MM&E PLC the possibility exists after years of accumulating losses.
Sure it ended 2015 with 17.5 % increase in accumulated losses but the good news was that at N405.9m, the loss for the year was 30% lower than 2014's N580m loss.
The year end pointer to profit possibility was the direct product of 17.5% increase in core revenue to N57.8m accompanied by 67% decline in cost of sale to N45.9m in spite of the revenue growth.
Of course, also very helpful was the leap in Other income to N58.1m from N13m in 2014.
It was also significant that no selling and distribution cost was incurred within the year compared to N6.55m so incurred in 2014 and that increase in administration expenses was manageable.
The lone pressure within the year thus came from finance cost 40.6% increase to N342.6m.
Hence when loss per each N100 income gets reduced from 2014:s very fast paced N932.5 to N350.2m then surely, all things being equal, profit should be around the corner.
However, its still a hard stretch of the road ahead.
For one MM&,E PLC has to survive still mounting liquidity pressure. By December 2015, it still hard 2012.3m working capital  deficit to live with, and part of that was because at a time loans rose by 2.43%, trade receivables was allowed to almost triple to N57.7m.
MULTIVERSE MINING & EXPLORATION PLC: (Nm)
                           2015.           2014
Total income    115.9.           62.2
Core revenue      57.8.           49.2
Cost of sale.      45.9.          140.7
Other income    58.1.            13.0
Administration 105.7.          93.0
Finance cost     342.6.        243.7
Profit before tax (405.9).   (580.0)
Profit margin %  (350.2).  (932.5)
Working capital (2012.3) (1753.1)
Loss to date      2084.0.    1773.1
Receivables.         57.7.       20.1
Loans.                 367.3.     358.6
SCOA NIGERIA PLC: BACK TO LOSS.
As 2015 closed with SCOA Nigeria PLC back in the loss league  three things pose real challenge in 2016: how to grow income, check cost growth and improve on liquidity position.
According to the audited results for the year, total income and core decrased almost at par in 2015 with cost of sale declining by almost the same percentage.
What posed real headaches were 98.8% rise on finance cost to N1006.1m, 15.7% increase in controllable administration expenses to N1256.8m and 13% top up by selling and distribution costs to N60.7m.
Near doubling of finance charges in the end did not come as a surprise because short term interest bearing borrowings jumped by 97.3% to N5717m in addition to N272.9m new long term loan.
To boot, closing working capital was N308.9m in the red compared to N97m surplus by 2014 close.
Hence, SCOA Nigeria closed the year with 26.4% loss margin as against 13.0% profit margin in 2014.
SCOA NIGERIA PLC (Nm)
                           2015.             2014
Total income.  4757.8.          6813.7
Core revenue   4528.3.          6440.1
Cost of sale     3662.5.          5054.5
Distribution etc  60.7.               53.7
Administration 1285.8.         1111.7
Finance income   17.8.            31.8
Dividend income. 0.46.           0.77
Profit before tax (1256.8).       88.4
Profit margin %    (26.4).          13.0
Working capital  (308.9).         97.0
Long term loan    272.9.            -
Short term loan 5717.0.        2897.1
Receivables.      3708.8.        3038.7
Cash.                      88.1.          147.8

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