MID YEAR RESULTS (2): AFROMEDIA, JOHN HOLT.

AFROMEDIA PLC: NEARER SURFACE ?

For quite a while now Afromedia PLC has been finding ways to surface from the loss league, is the surf ace any nearer?
May be, according to the unaudited figures for six months to March 2016. The hope offered is summed up in the fact that Afromedia ended the period losing N152.8 on each N100 income compared to N249.3 by the first of the previous year.
Of course, that level of loss is still life threatening but work harder at what made it possible and you could be on the way to the surface.
So many factors helped. They include 20.7% drop in direct cost to N151m while core revenue generated rose by 5.29% to N229m and 43.9% decrease in finance charges to N174.6m
Also helpful was the 6.86% decline in administration cost reported but not so for 24.4% increase in distribution expenses and 36.3% jump in other operating costs to N19.9m.
The icing on the cake was N4.32m in other income that previously fetched pittance. And the cake was that the loss recorded for the half year was N356.6m compared to N552.5m previously.
Such little drops of achievement could make smooth flowing water but Afromedia still has a long way to go particularly not just in regards to total cost control but also in its liquidity management.
After all, it makes little sense to increase costly overdraft only to expand receivables while decreasing payables.
As for the surface, it has to be soon because accumulated loss is chipping away shareholders funds

AFROMEDIA PLC (Nm):
                    Half year
                      2016.              2015
Total income 233.32.        221.6
Core revenue 229.0.          221.6
Cost of sale   151.0.          190.4
Other inc.         4.32.          0.001
Administration 228.1.       244.9
Distribution        16.3.          13.1
Other op. cost    19.9.          14.6
Finance cost    174.6.        311.0
Profit b4 tax.   (356.6).    (552.5)
Working capital (5738.3) (5649.1)
Payables            2482.9.   2619.2
Overdraft           3068.0.    2915.1
Receivables.       582.4.     556.7

JOHN HOLT PLC: FIRM GRIP

It appears like firm grip paid off well for John Holt PLC on the first half to March .
John Holt, according to the figures for the period surfaced with N38m profit by the end of the period as against N580m loss by the same time previously.
It grew core revenue and total well enough by 21.1% and 22.5% to N1554m and N1526m respectively but that only laid the broad foundation for the result achieved eventually.
Quite significant was that John Holt had such control over cost that its cost of sale eased by 2.28% to N942m; distribution cost declined BT 30.4% to N110m and administration expenses took a 71.4% dive to N173m.
Less attributable to management control is finance cost but that too also went down 25.2% to N92m.
Surely this was than enough to put smiles on faces of John Holt executives but they also should frown over 6.2% decrease in payables and 189.3% leap on receivables to N781m while short term loans was rising by 96.9% to N1691m and long term loan was down 35.9% to N271m.
The more so when working capital was showing increased deficit.

JOHN HOLT PLC (Nm)
                     Half year
                        2016.             2015
Total income 1554.              1269
Core revenue 1526.              1260
Cost of sale     942.               964
Distribution      110.               158
Administration 173.        .      604
Other income     28.                   9
Finance cost      92.               123
Profit b4 tax       38.             (580)
Profit margin % 2.45.          (45.7)
Working capital (2757)     (2554)
Short term loans 1691       996
Overdraft.                21.         19
Long term loan    271.       423
Payables.           1468.      1565
Receivables.       781.         270
Cash.                     9.             67

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