TRIPPLE GEE BANKING ON QUARTER 4?

Last financial year to January 2016, the last quarter came up  with a miracle of sorts before Tripple Gee plc ended the year profitably.

Now, according to the nine months figures to October 2016 released last week, the same kind of miracle is more than needed to spring from the loss league.

By October, Tripple Gee had already recorded N12.6m loss compared to same time in 2015 when N8.29m profit was made only for miracle quarter four to raise it to N36.9m profit by year end.

The loss occurred principally because total income went down by 33.5% to N354.55m and although cost of sale drop matched this, distribution and administration cost decreased by only 0.63% to N94.5m.

So a final decrease by 80.3% in operating profit to N12.5m, led to only  N12.6m loss because, there was 54.1% drop in finance charges to N25.5m.

Can this be wiped out for Tripple Gee to report profit by this financial year end?

That depends on the factors that turned quarter four into a miracle working three months as more of the year's income was earned in the fourth unlike its costs.

Thus if the same thing should happen this time around, the worst that could be expected is reduced loss.

Which is likely, mostly because finance charges will continue to drop since Tripple Gee reduced both long and short term borrowings within the three months as its liquidity squeeze eased from October 2015 N39.4m working capital (after worsening toJanuary 2016 N53.6m) to just minus N26.4m by October 2016.

Modest profit may in fact be possible if something was done to decrease distribution and administration costs at a faster rate.

TRIPPLE GEE: Nm Nine months

                    2016.         2015
Total income 354.55. 532.9
Core income. 354.2.   532.9
Cost of sale    247.1.  373.9
Distributionetc 94.5.    95.1
Other income.   0.35.     -
Finance cost    25.5.    55.6
Profit b4 tax   (12.6).    8.29
Margin %.        (3.55).   1.56
Workinng cap. (26.4).  (39.4)
Short debts.    7.47.    11.7
Long debts    240.9.   263.6

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