INTERLINKED TECHNOLOGIES' TOUGH FIRST QUARTER

It was indeed a tough first quarter to September for Interlinked Technologies PLC and there is no telling how it will end 2017 year in consequence.

According to unaudited figures for the first quarter to September released this week, much as direct cost surprisingly gave less trouble, Interlinked Technologies still ended with loss.

Revenue for the period had dropped by 28.5% to N41.9m accompanied by a far higher 34.5% decrease in cost of sale to N31.3m.

As a result, despite the more than a quarter drop in revenue, gross profit decreased by only 10.9% to N10.6m.

However this could not land the company in profit because there was 33.7% rise in finance cost to N1.31m; administration expense ended 14.9% at N10m and distribution cost edged up 9.93% to N0.83m.

In the end, Interlinked Technologies PLC settled for N1.6m loss by September compared to N1.5m profit same time in 2015.

This meant that it lost N3.82 on each N100 earned within the period as against N2.56 profit previously.

The pressure from finance cost was due to 100% jump in short term borrowing to N4m without cash position being any better.

Although working capital was almost stable at N276.9m, cash took a 43.4% dive to N1.72m in spite 24.5% increase in payable to N166.8m

All because there was 14.5% increase in receivables and prepayments to N298.5m that mopped up N37.9m.

Obviously, for Interlinked Technologies PLC so much depends on significant increase in revenue for the rest of the financial year.
 
INTERLINKED TECHNOLOGIES PLC
                       Nm first quarter
                       2016.               2015
Revenue.       41.9.                  58.6
Cost of sale  31.3.                   47.8
Gross profit  10.6.                   11.9
Distribution.  0.83.                  0.755
Administration 10.0.              8.70
Finance cost      1.31.            0.98
Profit b4 tax.    (1.60).           1.50
Profit margin % (3.82).          2.56
Working capital 276.9.        277.6
ST Borrowings      4.0.            2.0
Payable.              166.8.        134.0
Receivables        298.5.        260.6
Cash.                     1.72.         3.04

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