HALF YEAR RESULTS: UNITED CAPITAL PLC; TRNASNATIONWIDE EXPRESS PLC.


UNITED CAPITAL PLC: UNITED EFFORTS BUT.....

United Capital Plc depended on all streams of income to end the half year to June 2016 with so much promise but only the growth chipped in by interest income made the real difference.

According to the interim figures released this week, gross earnings of United Capital plc increased by 32.9% to N3655.4m but only net interest earned ended the period with higher percentage growth.

Investment income came close growing by 27.6% to N1720.8m followed by 19.9% rise in fee and commission to N980.3m. Good try but they were not up the gross earnings growth and so, could not have determined this.

Two other income streams did not even come into reckoning. Net trading income dropped by 60% to N14.2m thus being the main drag within the half year and Income from other sources rose by only 7.65% to N244.8m.

The game changer was net interest that more than doubled (up 102%) to N695.3m from N344.2m by June 2015.

Then it turned out that United Capital plc also had good control over its costs. Within the half year, personnel cost dropped by 10.3% to N322m and other operating expenses decreased by 3.67% to N701m.

In view of these positive developments, United Capital looks set to end 2016 year very well as profit before tax by half year was N2581m, up 44% on N1792.8m previously.

Thus from 15.4% increase in managed funds to N125,934m its profit margin rose to 70.6% compared to 51.2% at the same time in 2015 year.

UNITED CAPITAL PLC Nm: Half year
                                                2016                         2015
Gross earnings                      3655.4                       2750.5
Investment income               1720.8                       1348.9
Fee and commission               980.3                        817.4
Net trading income                   14.2                          35.5
Net interest income                 695.3                        344.2
Other income                           244.8                        227.4
Personnel                                 322.0                        358.8
Other operating expenses        701.0                        727.7
Profit before tax                    2581.1                        1792.8
Profit margin %                       70.6                             51.2
Managed funds                125,934.1                     109,105.1


TRANSNATIONWIDE EXPRESS PLC: SCALING THROUGH.

If half year figures to June 2016 reflect the fortunes of Trans-nationwide Express plc this year, then it is likely it could barely scale through without bruises.

According to the figures released to the stock market this week, compared to N9.88 gain on every N100 income recorded in 2015 first half, N9 was recorded this time around.

This was as profit before tax rose very marginally by 1.84% to N38.7m despite 9.98 % increase in core turnover to N421.9m and in total income by 11% to N427.2m.

The blow to the jugular came from 22.6% increase in direct cost to N191.8m from N156.4m. In contrast, administration expenses rose by only 3.51 % to N194.4m and finance cost even dropped by 15.2% to N2.29m.

Income from other sources had helped beef up total income growth by ending at N5.26m compared to only N1.21m previously.

Now, if this turns out to be a repeat of what occurred in 2015 year then it will be a case of scaling through indeed.

By half year in 2015, 50.2% of the year's profit before tax was already in and indeed, by full year the company's half year profit margin had decreased to 9.46%.

Now that the slide continued to June 2016's 9.0%; will it continue till the end of the year? Most likely unless there is greater control over direct costs and that is one tough nut to crack given the times Nigeria is going through.

TRANS-NATIONWIDE EXPRESS PLC; Nm. Half year
                                               2016                       2015
Total income                          427.2                      384.8
Core revenue                          421.9                      383.7
Direct cost                              191.8                      156.4
Other income                            5.26                        1.21
Administration cost                194.4                       187.8
Finance charges                         2.29                        2.70
Profit before tax                       38,7                        38.0
Profit margin %                         9.0                        9.88

Comments

Post a Comment

Popular posts from this blog

2018: TWO BLOWS TO UNITED CAPITAL PLC.

When a child who in a previous examination scored 80%, comes home with a new report in which he now scores 67.2%, the parents have a right to sit him down and ask how come. So it must be between Nigeria's United Capital Plc and its discerning shareholders since the release of the company's 2018 audited figures. In 2018, all said and done, says the annual report, United Capital ended with 67.2 % profit margin compared to 80.2% in 2017. How come? What comes across from the figures was that the company received 2 blows to the jugular in 2018: Sharp drops in Investment income and fair value gain. Investment income dropped by 10.8% to N4422.8m from N4965.2m while fair value on financial assets plunged by 79.7% to N6.173m from 2017's N30.387m. In view of both drops, the group's gross earnings grew by only 33.9% to N9259.4m despite strong growths in net trading income, and net operating income leap to N757.5m from N143.5m  Other income streams ended with single digit increase....
Read more

KENYA AUCTIONS Ksh 13.84bn Treasury Bonds.

The Central Bank of Kenya (CBK) will from Tuesday December 18 to 27th 2018_ auction Ksh 13.84bn worth of fixed income Treasury Bonds with issue date December 17, 2018. According to official statement from the Director of Financial Markets Irene Njiru on Monday December 17, auction will continue throughout the stated period or close once the target money to be raised is reached, whichever comes first. Bid value will be paid for at most by 2pm December 31, 2018 while auction results will be made public on December 28, 2018 after the scheduled closing date. The bonds are being issued at 12.502% fixed interest at an adjusted average price of Ksh 100.468 for Ksh 100 bond. However, price payable after auction results publication will be average of successful bid prices based and allotment will be on first come first served basis. Meanwhile, the monetary operations and debt management department has released the interest payment schedule for 13 Treasury Bonds due January and February 2019. Th...
Read more

NAIROBI SE's HIGH PRICED EQUITIES.

In the wake of Nigeria's high priced quoted companies posted in this blog a while ago, Henates took a look to at Nairobi Securities Exchange June 23 official list to identify its high priced equities and the outcome was interesting too. Of the 66 companies quoted on the market by June 23, 15 or 22.7% were valued averagely at above 30 times nominal value. A word of caution though: There are two clear differences between the Nigerian stock market list and that of Nairobi: In the Nigerian one most listed companies have par or nominal value of N0.50 as is there is an implied agreement on this. On the other hand, at Nairobi most of the equities do not share common par value, they differ greatly. Then another thing, Nigerian equities are not valued below par, Nairobi ones can and many are so valued. Of the top 15 high priced equities at the Nairobi market, Safaricom topped with because by June 23, at 23.25 Ksh average price, it was valued 465 times its nominal value of just 0.0...
Read more