FULL YEAR RESULTS(8): First Aluminum, Studio Press.

FIRST ALUMINIUM PLC: TWO GOOD TURNS.

First Aluminium PLC ended financial year 2015 with only two good turns in its favour: Fair liquidity management and double digit drop in administration expenses.
According to the audited results for the year, First Aluminium started the year with N330m working capital deficit but ended it with N128m surplus.
This as a result of 66.4% increase in long term borrowings to N654.5m mostly to bring down more costly short term borrowings by 27.5%. to N1568.6m even as cash on hand dropped by 31.4% to N231.7m and inventories went down by 8.93% to N1713m.
Where First Aluminium got its liquidity management wrong was in decreasing payables by 3.37% to N593m while increasing receivables by 40.9% to N407.3m.
In the issue of profitability, only 14.3% decline in administration expenses to N188.7m helped. Though core revenue increased by 17.7% to N10478.2m, the impact was watered down by 19.5% rise in cost of sale to N9751.3m amidst 19.5% drop in revenue from other sources and 23.1% increase in finance charges.
Thus, First Aluminium reported N41.3m profit before tax for the year, down 60.5% on 2014's N104.5m.
Broken down it comes to N0.39 gain on each N100 income compared to N1.12 in 2014.

FIRST ALUMINIUM PLC: (Nm)
                           2015.           2014
Total income. 10491.0.       8917.5
Core revenue  10478.2.       8901.1
Cost of sale     9751.3.        8161.1
Other Income      12.8.           15.9
Distribution        102.6.        100.8
Administration   188.7.        220.3
Finance income 0.008.        0.002
Finance cost      407.2.        330.9
Profit before tax  41.3.         104.5
Profit margin %.  0.39.          1.17
Long term loan  654.5.        393.4
Short term loan 1568.6.     2164.2
Working capital   128.        (339)
Payables.            593.0.      613.7
Cash                    231.7.      335.0
Inventories.        1713.0.     1881.6

STUDIO PRESS PLC: LOOKING AHEAD

In 2015, like for most companies in Nigeria, things were a bit rough for Studio Press PLC but that did not stop it from looking beyond tbr year.
According to the audited figures for the year, in spite of the times. Studio Press bought more machines and equipment thus raising closing book value of these fixed assets by 17.6% to N6125.6m.
Naturally, this helped to depress working capital to N216.5m alongside 25% drop in cash and 12.8% decrease in receivables.
Aside from the asset purchase, there was also 4.37% increase in Import trade facility to N2031.4m that impacted on liquidity position.
There was good reason to remain positive since Studio Press ended 2015 with a lower N165.6m loss compared to N 269.8m loss in 2014.
This was principally as 8.82% increase in core revenue to N7991.9m was accompanied by only 3.98% rise in cost of sale and 6.51% increase in administration cost.
Only selling and distribution cost and finance charges danced out of tune by closing the year 37.9% and 12.5% up respectively.
Lucky Studio Press tax rebate of N71.8m helped further reduce the year s loss to N93.8m as against 2014 when N83.6m tax provision pushed Studio Press further into the loss league.

STUDIO PRESS PLC: (Nm)
                          2015.             2014
Total income   8144.0.         7504.2
Core revenue.  7991.9.         7343.9
Other income    152.1.           160.3
Administration. 572.9.         537.9
Distribution          70.2.          50.9
Finance cost    1264.0.        1123.6
Profit before tax (165.6).     (269.8)
Profit margin %  (2.03).        (3.6)
Working capital   216.5.     1021.4
Import facility.   2031.4.     1946.3
Receivables.       1672.5.     1917.6
Cash         ..           534.0.       711.7
Machinery.          6125.6.       5210.8

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