SOMETHING CUTE WITH CUTIX PLC.

The one thing that was very cute and helpful for Cutix PLC in the financial year to April 2016 was its success in reducing administration expenses by 9.07% to N255.8m.

According to the audited figures for the year, but for this it would have been impossible for Cutix to end the year with profit before tax 37.6% up at N278.5m.

This had led to much improved 9.72% profit margin compared to 8.48% in 2015 year.

Cutix PLC total income growth had settled at 20.1% to N2861.5m despite 20.2% rise in core revenue to N2835.9m.

The slight scale down of income growth resulted from only 5.79% increase in income from other sources to N25.6m particularly as Cutix reaped 67.8% lift in forex related gains to N6.21m.

The pressures absorbed by the administration cost decrease were 22.3% increase in cost of sale to N2102.5m; 29.4% rise in distribution expenses to N88.1m and 22.6% increase in finance cost to N137m especially as overdraft interest expense closed 86.8% up at N66.3m.

In the new year, though, finance charges may not be that high or grow that fast. This is because within the 2016 year Cutix reduced short term borrowing (mainly overdraft) by 39.4% to N497.6m and also paid 25.5% from long term debts to close at N113.5m.

This was as its liquidity position improved significantly to N314.9m working capital surplus from 2015's N149.3m and N79.2m cash in hand as against N22.2m previously.

Thus, the current year promises to be a better year, all things being equal.

CUTIX PLC: Nm Full year.
                     2016.     2015
Total inc.    2861.5. 2382.6
Core inc.    2835.9. 2358.4
Direct cost 2102.5.1719.4
G. Profit       733.4.  639.0
Distribution  88.1.    68.1
Admin.        255.8.   281.3
Other inc.     25.6.     24.2
Finance cost 137.0  111.7
Profit b4 tax 278.1.  202.1
Margin %      9.72.    8.48
W. Capital   314.9.   149.3
Short debts 497.6.   821.6
Long debts  113.5.   152.4
Cash              79.2.      22.2

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