• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Markets Equities Stock Market

ACADEMY PRESS – NO PRESSURE TO DELIVER

Ugodre Obi-chukwubyUgodre Obi-chukwu
11 years ago
in Stock Market
Share on FacebookShare on TwitterShare on Linkedin

SELL

Imagine owning a business that earns you a profit of N40,000 for every N1million it generates in revenue, meaning the remaining N960,000 is spent on direct cost and other expenses. Not worth your time right?? Wrong!! Time don’t matter to some as has been the case for Academy Press over the last 5 years. The company recently released its third quarter to December 2012 unaudited results with revenues increasing a meagre 1.3% to N1.55b when compared to the same period last year. Operating profit however also remained flat at N119million whilst pre-tax profits dropped 41% to N21million.

Directors at the company are quick to blame the harsh economic environment as a reason for the poor results even as they also blamed the violence in the North as contained in the Chairman’s statement at last financial year’s annual report. In that same report they also highlighted the need for the Government to ensure Universal Basic Education Contracts for supply of books are given to books printed in Nigeria. These narratives are not uncommon and is surely not enough excuse for some poor operational results. A thin profit margin of less than 2% indicates operational expenses are high gulping 86% of Gross Profit in the first 9months.

The company will lay claim to its 11% drop in cost of sales as a sign of reigning down on cost even though a review of how it measures its closing stake may throw more light to their claims. “Goods in transit” and “Paper” make up over 71% of Inventory in 2012 and 65% a year earlier.

The shareholders may not be too bothered anyway? Not when 18 of them own over 65% of the outstanding shares. A board with an average age of over 50 (by my estimates) surely can’t be lured into taking a risk that might result in some dilution of ownership; a recipe for intrusion and pressure to adopt a more aggressive approach to increasing margins. Currently, the company seem satisfied with a 40/60 debt equity ratio with the inexpensive bank of industry loans making up about half of the loans. As far as they’re concerned their Net Assets of N764m is currently valued at about N1.4b and possibly rising. Is it your money??

Their share price was about N1.64 back in October and rose to over N4 a month later before crashing to about N1.62 at the end of the year. The volatility in its share price remains as it has now risen to N2.82 as at the time of writing this blog. You just can’t bet on this can you? Its free cashflow per share of 79kobo makes its current share price seemingly expensive. Equate that to its last year dividend per share of 7kobo and current market price of N2.82 and you get a yield of 2.4%.

 

Academy Press

 

 

Tags: COMPANY RESULTSDeepdiveSTOCKS
Ugodre Obi-chukwu

Ugodre Obi-chukwu

Ugo Obi-Chukwu "Ugodre" is the Founder, Publisher, and Chief Analyst of Nairametrics, a leading business and financial news online platform in Nigeria. Ugo is also the Chief Editor of the Nairametrics “Blurb” Opinion pages. Follow Ugodre on Twitter @ugodre and Instagram @ugodre Email: ugodre@nairametrics.com

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *







NM newsletters
Kwakol

Zenth Bank
UBA
Mega Millions

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • Dr. Oluwatosin Olatujoye: A trailblazing entrepreneur, philanthropist, and visionary leader
  • Ghana plans to export electricity to Nigeria
  • FG allocates N33 billion to RCC for Eleme-Onne section of East-West road

Follow us on social media:

Recent News

Dr. Oluwatosin Olatujoye: A trailblazing entrepreneur, philanthropist, and visionary leader

Dr. Oluwatosin Olatujoye: A trailblazing entrepreneur, philanthropist, and visionary leader

September 21, 2023
Ghana, export electricity

Ghana plans to export electricity to Nigeria

September 21, 2023
  • Download Nairametrics iOS App
  • Download Nairametrics Android App
  • Contact Us
  • Home
  • Exclusives
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Opinions

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Login
  • Sign Up

© 2023 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In