HENATES

Year on year inflation rate in Nigeria for the third month running edged downwards in April to 17.24% from 17.26% in March, according to Composite Index figures released today May 16 by the National Bureau of Statistics for April 2017. This indicates that on the average prices are still rising in the country but in the galloping fashion prior to the last three months. The worst may be over but some flash points still point to cause for worry. For example, even though from the figures the gradual slow down had sipped into urban index which year on year was 17.62% in April compared to 18.27% in March, the Rural index remains untouched by any slow down as it climbed to 16.69% from 16.47% in March. Besides, more worrisome was the fact that food index more or less drove CPI upwards staying  at 19.30% up by April compared to 18.44% increase in March. Month on month, though, there seems to be gradual reverse of this growth came to 2.04% in April compared to month on month increase o...

For a while, it did not seem like Ever Ready East Africa plc was ready to face any competition in its business of sale of portable power solutions in Kenya. Now, it is facing good competition from a former shareholder and partner; and says half year figures to March 2017, it is time to take on competition. According to the figures for the period released not too long ago, competition drove core turnover down by 19.5% to 241.6m Ksh but somehow, the saving grace was not just the leap in other income and sharp drops in some major expenses but more importantly, the sale of c its land to realise 397.3m Ksh gain. Of course, the major decreases in cost heads helped greatly. Cost of sale went down ahead of core revenue drop by 31% to 168.9m Ksh; and finance cost dropped by 66.6% to 10.2m Ksh although overheads increased by 22.1 % to 142.3m Ksh. However, much as they helped, the best Ever Ready could have hoped for was reduced loss for the period but it got more than that. It reported 351...

It is still tough going for Tourist Company of Nigeria Plc with no end visible this financial year, according to nine months figures and forecast for the last quarter to June released recently. By March, TCN plc was still very much in the loss league and had recorded a loss of N2354.7m, which is multiples of the N572m loss reported at the same time in 2016 financial year. Core revenue had increased marginally by 2.94% to N2402.4m on the back of 3.15% increase in hospitality income to N1200m and 2.71% increase in gaming earnings to N1112.1m. but none of these increases could match 14% hike in expenses to N2839.8m thus guaranteeing N437.4m operating loss, up 180%. Then with finance costs rising astronomically to N1917.4m from N415.8m previously, the stage for the huge jump in loss was set. The net result waas that by March, TCN Plc had accumulated losses totalling N14.596bn compared to N12.24bn previously and shareholders fund had been wiped out completely for a deficit N9340.3m ...

It was decline Monday May 15, 2017 at Africa's two NSEs: Nigerian stock exchange and Nairobi securities exchange, NIGERIAN STOCK EXCHANGE: Because the Nigerian stock market closed on a very high traded volume on Friday, Monday's top offload in some equities fell short by 36.9% thus confirming the day of drops all round as the bears seemed to grunt amidst bulls further retreat. The All shares index ASI went down by 2.41% to 27513.69 even as heavyweight Dangote Cement moved in the opposite direction by gaining 4.16% or N6.51 per share to place 3rd amongst % gainers and number one in terms of Naira gains.  Dangote cement only succeeded in exceptionally  closing Premium index 2.09% up at 1752.64 despite major % drops by the two other premium equities: Zenith Bank down 5.68% and FBN Holdings with 5.49% decrease. Neutralising Dangote Cement were heavy drops in Oil and gas leading to 4.46% decline in the sectors index to 309.90; Consumer equities with consumer index going d...

NIGERIA: LA FARGE AFRICA TO ISSUE N140BN RIGHTS. Nigeria's veteran cement manufacturer, LA Farge Africa, will table a rights issue worth N140bn before shareholders for approval at the next annual general meeting scheduled for June 7, this year. According to the company secretary, Uzoma Uja, the aim is to reduced the company's exposure to foreign loans in the light of Naira depreciation and optimise expansion in Nigeria. Shareholders will also be asked to approve the merger of Unicem ltd with LA Farge Africa. LA Farge owns Unicem 100% but the company is currently operating as a subsidiary. The key to the formal lies in the fact that Unicem is currently exposed to $600m loan which it took to complete line one producing 2.5 metric tons per year and commission line with the same production capacity. Part of this debt is owed to the parent LA Farge international group and it is planned that this portion will be used to take up the group's rights to be issued once the...

The flame of Kenya's Flame Tree Group who have burnt out somehow in 2017 financial year but for profit from sale of assets which in the second year running saved the day. In year to March 2016, similar gain of N2086.3m Ksh had helped the group report  198.4m Ksh profit before tax. Now, more 837.4m Ksh from the same source has handed 11.3% down 176m Ksh profit. The one really good news emanating frpm the 2017 figures was the fact that Other operating income rose to N5.4m from 1.50m Ksh but the figure involved was far too small to make real impact. The tune was dictated by 21.4% drop in tital income to 3387.4m Ksh even as core revenue grew by 11.4% to 2544.6m Ksh slightly ahead of 11.2% increase in cost of sale to 1640.3m Ksh. This tune was tuned up by 26.3% rise in selling and distribution cost to 329.1m Ksh accompanied by 21.8% increase in administration expenses to 297.5m Ksh. Finance cost remained more or less level at 62.7m Ksh and in spite of only 1.80% growth in othe...

According to figures for the half year to March 2017 released recently, hope is rising for Afromedia plc will some day in the future stop residence in the loss league but how soon can that be? Soon enough to navigate the trappings of relative liquidity squeeze?? Hope is rekindled because by this March, Afromedia reported 49.7% drop in loss before tax to N175.5m compared to N356.6m loss by the same time in 2016 year. Meaning for example, compared to losing about N152.8 on each N100 it earned by 2016 half year, it was now losing only N76.8. Not bad especially since it was brought about by greater control over some costs and great reduction in finance costs despite marginally increaqsed overdraft to N3152.3m The key to rising hope lies not in the 0.09% increase in total income to N233.6m as other operating income dried up within the period, but in the fact that major drops in administration; other operating costs and finance charges were strong enough to make a difference. In the ...