FULL YEAR RESULTS: AVON CROWN CAPS PLC; UNIVERSITY PRESS PLC.


AVON CROWN CAPS PLC: ALL FOR THE TAXMAN.

One thing is obvious from the figures of Avon Crown caps Plc for then financial year to March 2016: Shareholders had no cause to smile but the tax man smiled to the bank.

According to the figures released recently, Avon Crown Caps ended the year with N152.1m profit before tax which represented real jump on the N22m reported in 2015 financial year. But the shareholders can only smile because their company survived the year better off but tax provision actually drove into loss due to shareholders.

Within the year, there was provision for N33.4m income tax; then N18.5m education tax and N283.9m in under provision from previous year. In other words, total tax charged to the profit and loss appropriation account was N321.2m leaving Avon Crown Caps with N169.1m loss after tax.

The year had ended fairly better even though only 9.32% increase in total income to N14440.8m had occurred despite 9.42% growth in core income to N14406.5m as income from other sources fell 20.6% to N34.7m.

The increased profit before tax recorded resulted from far less growth in cost of sale by 5.5% to N11856.3m; and also lower 8.86% increase in distribution expenses to N243.3m.

It occurred too despite 15.2% increase in administration costs to N1116.3m and 41.7% rise in finance charges to N1073.2m.

AVON CROWN CAPS PLC: Nm
                                                  2016                     2015
Total income                           14440.8                13209.6
Core income                            14406.1                13165.9
Cost of sale                              11856.3                11237.8
Other income                                34.7                      43.7
Distribution                                 243.3                    223.5
Administration                          1116.3                     969.0
Finance charges                        1073.2                     757.3
Profit before tax                          152.1                      22.0
Tax provision                              321.2                      64.3
Profit after tax                            (169.1)                   (42.4)


UNIVERSITY PRESS PLC: IT COULD HAVE BEEN WORSE

If it was due to effort at cost control alone, University Press somehow ought to have ended the financial year to march 2016 in a worse position but alas, there is still finance income growth to consider.

For University Press, core revenue had dropped by 14.8% to N1471.9m and 62.9% decrease in other income to N20m had depressed total income drop to 15.7% to N1530.4m. But this was as finance income rose by 51% to N38.5m.


 University Press tried holding cost of sale down but it went down by only10.7% to N680.2m and marketing cost was more stubborn as it ended only 4.84% down at N371.9m.

On the other hand, administration cost was more amenable but even then, it ended up dropping by only 12.`% to N408.1m, way behind the percentage decreases in core and total income.

Subsequently, University Press plc ended the year to March with N73.2m profit before tax, down 63.3% on the N199.2m recorded in 2015 year.

Decoded: This meant that it gained only N4.78 on each N100 income within the year compared to N11 gain previously.

UNIVERSITY PRESS PLC; Nm
                                           2016                   2015
Total Income                    1530.4                 1816.0
Core income                     1471.9                 1728.1
Cost of sale                         680.2                   761.5
Other income                         20.0                    62.4        
Marketing                           371.9                   390.8
Administration                   408.1                    464.5
Finance income                   38.5                       25.5
Profit before tax                  73.2                     199.2
Profit margin %                   4.78                       11.0






 
             



 

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