R. T BRISCOE'S TURN FOR THE WORSE

One of Nigeria's veteran motors and equipment dealers, R T Briscoe PLC is now like a patient that has taken a turn for the worse.

According to the unaudited report for nine months to September released recently, in the third quarter of 2015 year, R T Briscoe had lost N19.4 on each N100 income recorded then relatively better results for the first and second quarters turned this into N16.3 loss on each N100 income for the full nine months.

Now, the reverse is the case. The nine months to September 2016 indicate that it lost N20.8 on each N100 income after clocking N20.4 in the third quarter alone.

Not surprising, in an economy in recession needing less cars and equipment, R T Briscoe recorded drops in revenue from its major areas: motors, industrial equipment, after sales service and property development.

Hence core revenue went down by 13.4% within the nine months to N8289.3m. Worse, cost of sale refused to go down that fast. It dropped by only 8.36% to N7163.8m.

Worse still, income from other sources other than finance decreased by 38.2% to N26.5m leading to another 13.4% decline in total income to  N8346.4m in spite of 38.38% increase in finance income.

It did help though that distribution cost dropped by 14.5% and finance charges also declined by 16% but against only 4.48% decrease in administration expenses and lower income, more loss was inevitable.

Thus, RT Briscoe Nigeria ended the nine months with N1734m loss, or 20.8% loss margin compared to N1570.4m loss or 16.3% loss margin at the same time in 2015.

Naturally, the company found itself more under liquidity pressure with working capital gap widening to N6363.1m from N3451.9m and raw cash dropping by 77.3% to N109.7m.

It had to increase its overdraft by 10.8%; and draw down inventories by 74.2%.

Cash raised was drained by the losses recorded plus 31.4% decrease in borrowings; 168.1% leap in prepayments and 36.7% rise in trade receivables.

R. T. BRISCOE NIGERIA: Nm
                      Third quarter
                       2016.             2015
Total income 8346.4.         9637.4
Core revenue 8289.3.         9572.5
Cost of sale   7163.8.         7817.4
Other income     26.4.             42.7
Distribution      565.0.           660.5
Administration 720.5.           754.3
Finance income 30.7.             22.2
Finance cost   1571.2.        1871.5
Profit B4 tax   (1734.0).     (1570.4)
Margin %          (20.8).          (16.3)
Working capital (6363.1). (3451.9)
Borrowing.        4050.2.      5904.9
Overdraft          5264.3.       4752.2
Inventories.      1503.4.       5824.7
Receivables.     3636.2.      2659.3
Prepayments.     162.2.          60.5
Cash                    109.7.         482.9

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