QUARTER RESULTS: Austin Laz PLC, Omoluabi Savings & Loans.

AUSTIN LAZ: SOMETHING WRONG.

There is something with the first quarter results released by Austin LAZ PLC recently: Accumulated loss seemed to have been grossly understated.

According to the from figures, the balance on retained earnings was stated as N2.3m whereas the company ended the quarter with N25.1m loss.

It would have been possible for the closing balance to be N2.3m loss if balance as at 2015 year end was positive.

This was not likely. By first quarter 2014 Austin LAZ was already carrying N19.1m as retained earnings then ended the year with N54.5m loss.

Be that as it may, ending the quarter with N25.1m loss compared to N14.8m loss by March 2015, was inevitable, according to the figures.

Austin LAZ's turnover dropped by 0.15% to N65.2m but going down by such a low percentage turned to be the only good news within the period.

The first blow was that cost of sale increased by 10% to N62.5m thus depressing gross profit by 68.2% to N2.68m.

Then administration cost rose by 23% to N23m; distribution expense ended 0.1% up at N4.08m and finance charges increased to N0.66m from N0.6m.

This came to 38.5% loss margin as against 22.7% previously and helped water down working capital to N403.9m from N492.1m by March 2015.

AUSTIN LAZ (Nm)
                 First quarter
                     2016.      2015
Income       65.2.         65.3
Cost of sale 62.5.       56.8
Gross profit  2.68.       8.44
Distribution  4.08.       3.71
Administration 23.0   18.7
Finance cost   0.66     0.6
Profit b4 tax  (25.2).  (14.8)
Profit margin (38.5). (22.7)
Working cap.  403.9 492.1

OMOLUABI SAVINGS & LOAN: NOT GOOD ENOUGH.

Funny but true. In the quarter to March growing total income by 28.4% to N72m turned out not to be good enough for Omoluabi Savings and Loans PLC.

According to the unaudited figures for the period, this growth had been dragged down from 29.9% increase in core interest income to N70.9m by zero income from investment and other sources within the quarter.

It was not enough simply because the additional support from 18.3% increase in fee and commission to N1.1m was consumed by N1.3m while earning it and because costs except interest expense grew wings.

The increase in Interest expense was only 4.67% to N0.112m but personnel cost jumped by 86.8% to N24.1m and other operating expenses rose by 90.8% to N12.5m.

However, impairment provision dropped by 14.4% to N4.76m .

Thus, Omoluabi profit before tax ended the quarter 6.13% down at N29.1m decreasing profit margin to 40.4% from 55.3%.

Of course, this is still comfortable but continue to lose grounds that fast, it could become rather uncomfortable, soon enough.

OMOLUABI SAVINGS & LOAN: (Nm). First quarter.
                       2016       2015
Total income 72.0.     56.08
Interest income 70.9 54.6
Interest exp.     0.112 0.107
Commission   1.10.   0.93
Comm. Exp.    1.36.     -
Investment inc. -        0.37
Other income.   -        0.18
Personnel cost 24.1. 12.9
Other expenses 12.5  6.55
Impairment.        4.76  5.56
Profit before tax 29.1. 31.0
Profit margin %. 40.4.  55.3

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