TRANEX PLC TROUBLED EXPRESS

Nigeria's Transnationwide Express ltd (Tranex) is having it easy this financial year.

According to figures for the half year to June released recently, income streams trended down and controllable cost heads were not decreasing as fast.

Tranex total income stood at N356.7 down 16.5% as core revenue drop of 15.6% decrease to N356m was compounded by near dry up of income from other sources to N0.69m from N5.26m

Yet cost of sale declined by only 13.6% to N165.3m leading to 16.9% drop in gross profit.

Thus with administration cost decreasing by only 4.37% to N185.9m, it was left for 58.1% decrease in finance cost to try to save the day but it was so lowly a figure (dropping from N2.29m to N0.96) that its impact was minimal.

In the end, Tranex settled for N5.14m profit before tax down by a whopping 85.6% on N38.3m clocked at the same time in 2016.

Decoded, Tranex in the first half gaining only N1.44 on every N100 income generated as against N8.97 previously.

Its working capital position eased too to N266m from N278.1m previously.

TRANSNATIONWIDE EXPRESS PLC:
                     Nm Half year
                            2017.             2016
Total income   356.7.             427.2
Core revenue   356.0.             421.9
Cost of sale.    165.3.             191.8
Gross profit.    191.3.             230.3
Other income    0.69.               5.26
Administration 185.9.            194.4
Finance cost       0.96.               2.29
Profit before tax 5.14.             38.3
Working capital. 266.0.         278.1
Profit margin %  1.44.             8.97

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