[upme_private]ABC Transport Plc released its 2013 results showing a 2.1% increase in revenue compared to the same period last year. Gross profit dropped 10% to N783million. Pre-tax profits also dropped 32% to N108million.
- A further look into this result reveals a very poor Q2 for the company. Revenue between March and June 2013 was N1.59billion compared to N1.63billion in the first half of the year. The revenue this period was also lower than the N1.62billion posted in Q2 2012.
- This is particularly more surprising when you consider that the roads are better as the company suggest. One hopes this is just a blip
- This slow downs affected margins all the way down with gross profit margins and operating profit margins dropping 12.5% and 64% respectively.
- Another worry is interest as a percentage of Operating profit. It rose to 87% this period compared to 50% the year before. This is despite a reduction in debts. Average interest for the period is about 7%.
- This result is disappointing in our view thus a red ink
- ABC just paid dividend of 13kobo per share. The share price dipped to 87kobo earlier in the week ending August 6th before closing at 94kobo
- ABC is in our Portfolio
ABC 2013 H1 results can be found in the website of the NSE[/upme_private]