FULL YEAR RESULTS: CUTIX PLC's BETTER 2016

Cutix PLC breasted the year to April 2016 better than it ended 2015 year but thanks to controllable costs.

According to the audited figures released recently, the one area Cutix scored very highly within the period was administration expenses which it depressed by 2.1% to N255.8m.

It scored fairly well too in growing gross profit as 24.5% increase in core revenue to N2835.9m was accompanied by 22.3% rise in cost of sale to N2102.5m.

Otherwise, management grip slipped as distribution cost rose by 29.4% to N88.1m; and  5.79% increase in income from other sources to N25.6m dragged total income growth down to 20.1% at N2861.5m.

Then finance charges increased by 22.6% to N137m but good for Cutix, the gross profit rise and distribution cost drop was enough to absorb all these pressures.

Hence, Cutix closed the year with 37.6% increase in profit before tax to N278.1m leading to 9.72% profit margin compared to 8.48% previously.

It helped its liquidity position with working capital rising to N314.9m from N149.3m. More importantly, it meant that Cutix was able to reduce long and short term borrowing by 25.5% and 39.4% respectively.

Meaning, barring interest rate jump, Cutix should work less to service its debts next financial year.

CUTIX PLC: Nm Full year
                    2016.     2015
Total inc. 2861.5.   2382.5
Core inc. 2835.9.   2358.4
C of sale 2102.5   1719.4
G. Profit    733.4.   639.0
Distribution 88.1.    68.1
Admin       255.8.  261.3
Other inc   25.6.      24.2
Fin. Cost  137.0.   111.7
Profit        278.1.   202.1
Margin %   9.72.    8.48
W. Capital 314.9  149.3

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