CUTIX PLC: LET THE GOOD TIMES ROLL.

Apparently, it is time for good times to roll for Cutix PLC being the local producer of an item hard times may no more encourage importation.

Cutix PLC produces cables and wires, amongst other items and half year figures to October indicate good times are beginning to roll on the back of 22.1% increase in wire and cables sales to N1431.7m within the period amidst 17.5% rise in total income.

In the three months to October, the growth recorded in wire and cables was even higher at 27.4% implying the potential exists for more in future.

After all, by the end of second quarter to October 2015: Cutix reported 9.56% profit margin which closed full year by April 2016 at 9.72% and by October this year, was 13.8%.

Agreed, part of the goodies flowed from only 9.37% increase in cost of sale to N1087.7m as core revenue rose by 17.4% to N1624.1m with 88.2% of that coming from cables and wire.

Also 35.8% increase in Other income to N8.04m, this time mainly from sale of scrap metal, helped greatly just as 12.2% drop in finance cost chipped in its bit.

However, Cutix PLC could reap more in the months ahead if it could stop distribution cost on its tracks as it rose by 50.3% to N55m and also take a good look at administration expenses that increased by 31.7% to N200.9m within the six months to October.

The helpful drop in finance cost must have surprised none in Cutix because long term debt was reduced to N83.5m from N135.9m and short term borrowing increased to N647.1m from the N497.6m by April 2016 but it was still below October 2015's N653.2m.

Naturally, as the good times continue to roll, Cutix PLC liquidity position will continue to improve on the back of profitable sales. By October 2016 working capital was N560.2m compared to N357.2m by the same time last year.

CUTIX PLC: Nm Half year (October)
                           2016.            2015
Total income    1632.1.       1388.8
Core revenue.   1624.1.       1382.9
Cost of sale.     1087.7.        994.5
Distribution.         55.0.          36.6
Administration.  200.9.        152.6
Other income.       8.04.          5.92
Finance cost.       63.6.         72.4
Profit b4 tax        225.0.       132.7
Working capital 560.2.        357.2
Profit margin. %   13.8.          9.56

                  

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