C & I LEASING PLC's PAINFUL ADVANCE

C & I Leasing PLC is apparently making slow progress in the current year due to painful pressures.

According to the half year results to June, C & I Leasing recorded impressive growths in most of its income streams but with accompanying cost growth in step or ahead.

Lease income grew by 96.2% to N5493.1m but associated cost rose by 105.9% to N1305.8m and outsourcing income rose by 105.8% to N2713m but unfortunately, its related expenses closed 108.9% higher at N2476.4m.

However, two exceptions to this trend were recorded although from streams that contribute far less to gross earnings.

Tracking income rose by 89.1% to N76.2m tracked by only 20% rise in expenses to N51.7m and vehicle sales income increased by 84.2% to N98.2m accompanied by 38.7% rise in expenses to N113m thus reducing loss recorded in vehicle stream.

The real game changer for C & I Leasing within the period was 176.4% growth in other operating income to N314.3m supported by 6.69% lift in interest income to N33.5m.

These and the exceptions to the income trend helped the company absorb 120.9% increase in operating expenses to N2215m; 92.8% rise in personnel cost to N388.6m and 84.8% top up by other operating expenses to N1104.6m.

In the end, C & I Leasing reaped 169.8% increase in profit to N176.7m from 100.4% jump in gross earnings to N8729.2m.

Hence, with all the solid growths in income streams recorded, its bottom line only closed the half year at 2.02 % compared to 1.5% previously.

C & I LEASING: Nm half yr
                       2016.   2015
G. Earnings  8729.2 4356.2
Lease inc.    5493.1 2799.6
Lease exp.   1305.8  634.1
Outsourcing 2713.8 1318.9
" expenses. 2476.4. 1185.2
Veh. Sales      98.2.     53.3
" expense.     113.0.   81.5
Tracking inc.   76.2.    40.3
  " expense.     51.7.    43.1
Interest inc.    33.5.    31.4
Other op. Inc. 314.3  113.7
Op. Expense 2215.0 1002.5
Impairment     62.0.      18.3
Personnel      388.6.   201.6
Distribution     5.44      5.02
Other costs   1104.6  692.6
Depreciation 830.1.   426.8
Profit b4 tax  176.7.     65.5
Margin %         2.02.    1.50

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