HENATES

TIGER BRANDED CONSUMER GOODS: BACK ON TRACK. It looks like on going plans to change the name Tiger Branded Consumer Goods PLC (TBCG) back to Dangote Flour Mills PLC is intended to underscore a new lease in the company's life. According to half year unaudited results released last week, TBCG is bouncing back in style from the loss league. From the figures, by March 2016 it boasted 3.2% profit margin compared to 32% loss margin at the same time in 2015. More interesting was the fact that in the second quarter, the recovery was faster. It recorded 11.5% profit margin in that quarter alone compared to 35.8% loss margin for the same quarter in 2015. In other words, the rebounce was visible even in 2015 but has gained enough speed to make loads of difference. All through, it has been a combination of different factors. Both total income and core revenue grew well, cost of sale growth lagged behind this too inspite of present day cost pressures, overheads dropped by 10.5%, eve...

CAVERTON OFFSHORE SUPPORT GROUP: ONE SOLID SUPPORT. In the financial year 2015 Cavertpn Offshore Support Group PLC could only bank on one solid support to lean on: Income from other sources. Sure, according to the audited results, core business still provided the main reason for being in business by contributing lion share of revenue, but it ended 6.75% down on 2014 levels. More significant was the fact that even the cost of generating this lower core revenue increased by 4.56% thus depressing gross profit by 21.2% to N14605m. It was income from other sources that almost tripled to N1040.1m that not only reduced total income drop to 3.98% at N24259.9m but also helped to cushion the full effect of the cost of sake growth amidst revenue drop. Caverton did a good job with administration cost though by reducing it by 15.6% to N6092.9m However, not good enough to avoid 35.3% decrease in profit before tax to N1767.1m all because finance charges added to the pressures on the botto...

There are a number of issues today in Nigeria that need to be handled with care because they contain dynamite. A major one is the recent demand by organised labour for a new N56,000 a month minimum wage. Going by the fixed official exchange rate that comes to N1866.7 per day or about 9.47 dollars each day on a 30 day month. The current minimum is N18000 per month ;N600 per day or about $3 each day. However, going by the official exchange rate could be deceptive because only few items now get produced with input brought in at the official N197 to the dollar rate. Besides, since this year, prices at the market place of goods and services particularly energy, food and transportation costs have grown wings. So much so that even the new N1866.7 per day demand appears valueless before it can even find its way to the negotiation table. To add insult to injury, political leaders are quick to call for understanding and sacrifice from the populace yet none has changed modus operandi to...

SEC NIGERIA LOSES DIRECTOR AND ONE OTHER STAFF Within two days interval this April, Securities and Exchange Commission (SEC) Nigeria lost two of its staff to death. According to notice from the head office in Abuja, the first to die the Director, Zonal Office Coordinating department, Mrs Louise Eni- Umukoro. She died on April 21, barely a month after her 56st birthday. Mrs Umukoro had joined SEC in October 1986 as assistant economist and rose through the ranks to the highest career position of director by January 2010. In 2013 she had been officially commended for her contribution to the review committee on minimum paid up capital for market operators. On April 23rd, that is two days after this death, another staff joined the ancestors. He was Mr Umar Jibrin Ayu, s supervisor on the Kano office. This was four months before his 54th birthday and has been buried according to Muslim rights. The late Ayu joined SEC in October 2008 as senior clerk and rose to supervisor positi...

G. T. BANK: CORE VS NON-CORE It looks like the battle for the profitability of Guaranty Trust Bank PLC in 2016 will be between core and non-core banking business. According to the first quarter figures sent to the stock market, while core business was putting good shoulders to the wheel, non- core is acting as a drag. By the quarter to March, interest income grew marginally by 1.6% to N55833.1m but was nicely accompanied by 4.92% drop in interest expense to N15039.3m thus increasing net interest contribution to the income pool. The same thing was repeated in fee and commission which increased more resoundingly by 39.1% to N17285.6m followed by an equally remarkable 34.4% decrease in fee and commission expense to N567.1m. However, except for 3.99% decrease in impairment provision to N3385.9m, and 4.72% drop in other operating expenses to N15223.2m, no more helpful shoulders could be seen. Gain from fair value of financial assets dived by 79.9% to N1171.5m, Other income tumb...

UACN PROPERTY: FINANCE DIRECTOR RETIRES The Finance Director of UACN Property Development PLC Mrs Folashade Oluwatoyin Ogunde has proceeded on retirement leave from April 15, this year. According to a notice signed by the company secretary, Godwin A Samuel esq, she has been replaced by a namesake with slight difference in spelling the same name. The new finance director is Mrs Adeniun Folasade Taiwo. Mrs Taiwo has been with UACN group since June 2012 and was before her elevation, head, Financial services overseeing group financial accounting and related duties. From October 1990 to 2012 she was with KPMH Professional services from where she was seconded to various major companies, including UACN and First City Merchant Bank to set up or consult on internal audit and related matters. She is an associate of the Institute of Chartered Accountants of Nigeria and holds an HND from the Federal Polytechnic, Ilaro, Ogun state. LINKAGE ASSURANCE: FOUR DIRECTORS RETIRE. Four dire...

GUINNESS: CRITICAL PRESSURES. According to the unaudited nine months figures released recently, Guineas Nigeria PLC may end year 2016 considerably weaker because of critical pressures. All round, the figures tell the tale of sliding fortunes with Guinness just managing to hold on to N1.7 gain on each N100 income by March 2016 compared to N8.3 a year ago. They also tell of faster slide in fortune from N3.27 gain on each N100 income by half year to December 2015. From the results, the things worth cheering within the period are linked to finance because finance income increased by 40.1% to N946.6m and finance cost dropped by 19.2% to N3346.3m. It was the finance income growth that reduced total income decrease to 17.5% at N70912m despite 17.9% drop in core revenue to N69619m and 38.2% decrease in Other income to N346.4m. The situation worsened for Guinness because cost of sale drop at 12.6% to N39352.5m did not match revenue decrease; and worse still more controllable expense...