Nascon released its 2012 Audited Accounts posting a year on year rise In revenues by 30% to N13.4billion. Operating profit also rose 26% during the year to N3.7billion. The company will go on to post a pre-tax profit of N4billion (2011:N3.1billion) resulting in a 25% rise in earnings per share to N1.
– Sustainable operating profit margin aided by an impressive SG&A as a percentage of Gross Profit of 26%
– Low Finance cost at just under 0.2% of operating profit
– No long term debt
– High Inventory Turnover of 9.5x showing the companies ability to turnover of products rapidly
– Very high average corporate tax which was about 31% of PBT. The company also has high outstanding tax liabilities of about N1.6billion.
– Strong Cash position, generating over N3billion in operating cashflows for the second year running thus ending the year with about N4billion in cash
– Above average returns on equity of 45% more than tripling average inflation rate for the year.
– Current price N9.05 represents a multiple of 9x on current earnings portends a cheap valuation considering the fundamentals. Share price has risen 78% in the past one year and has a year to date high of N10.57
– Proposed dividend of 90kobo per share represents a yield on current price of about 10%…probably the highest you can find in the entire NSE. It also reveals the company is paying out nearly all its earnings for the year as dividends. This will help ROE to remain high. The Company is part of the Dangote Group with Aliko Dangote as Chairman
NASCON Plc 2012 Audited Accounts was posted on the website of the NSE