Courteville Business Solutions released its 9months earnings results showing an 18% increase in revenue to N914million compared to N775million same period last year. Gross Profit also rose 16% to N442million compared to N379million same period last year. Operating profit also rose 47% YoY to N164million. Pre-tax profits at the end of the period was N313million (2012 9months: N281million).
Key Highlights[upme_private]
YoY
- Despite the increase in revenues Gross Profits remained pretty much flat as cost of sales rose
- Operating profit margin does show a 25% increase which actually didn’t have much to do with any significant improvement in efficiency.
- Debt to equity reduced considerably as the company repaid its short term debts.
- Return on Equity for the 9month period was 9.3% compared to 8.4% the year before and about the same figure at the end of the financial year 2012.
- Cash flow from operations was negative this period as the company paid dividends of abut N128million. It also spent about N192million in investments as it acquired new assets including N34million in intangible assets.
QoQ
- The third quarter saw a drop in revenues to N288million.
- Gross Profit margin was lowest this quarter just as the company lost money on operational profit. Operational expense was very high this quarter compared to the prior quarters.
- The silver lining in the third quarter was income from other income which just about helped the company post a profit for the quarter.
- It will be interesting to get an idea of why the company had a tough third quarter and where income from other sources was.
- The haphazard nature of income from other sources makes it somewhat unreliable for projections without a clear idea of its make up.
This result is an improvement year on year as well. However, no significant value was created for shareholders in the short run. The reduction in debt was, particularly current liabilities have been paid off.
Courteville released its 9months 2013 results in the website of the NSE
NOTE: This article was updated October 19 2013 to correct the third quarter extrapolation that was erroneously calculated in the original post. This therefore required that we change our analysis. Thanks to our readers for pointing out the error. [/upme_private]
Hi ugodre.i am surprise to see courteville plc 9 months result on your blog.so early.from your analysis,it seems the result is a little ok.can this result make any adjustment in the current price which is 0.66 kobo?
It’s most likely the share price will trend upwards or atleast stop the decline. It’s not a fantastic result but still not bad
I was thinking of adding more units but let me first find out the fundamentals of these companies from you first.which of these is at least worth investing..costain,int. energy ins,transexpr abc,and neimeth?
I haven’t reviewed them except for ABC and Neimeth. You can search the review in the blog
Victor, I just updated my review for Courteville. There was an error in my Q3 Extrapolation. Pls check it out.
Hi ugodre,i just checked your updated review on courteville plc.in other to stop loosing money.do i sell or hold the shares?this company that just release result and the share price is falling.just let me know your advice bcos im worried about it.any hope?
Hi ugodre,i just checked your updated review on courteville plc.in other to stop loosing money.do i sell or hold the shares?this company that just release result and the share price is falling.just let me know your advice bcos im worried about it.any hope?Can i use japaul oil to exchange it?
Why do you buy shares? You don’t buy shares in a company for emotional reasons. Japaul is not any better if you look at their financials. Courteville Results wasn’t so fantastic but I think their fundamentals are still good. If I were you, I would hold on to the stock and not sell.
Why is it companies without fundamentals move faster than those with good fundamentals.for example,ikeja hotels,japaul etc move better than those with good result.or is their a time to buy good fundamental ones and time to buy no good fundamentals?
Hi,Why is it companies without fundamentals move faster than those with good fundamentals.for example,ikeja hotels,japaul etc move better than those with good result.or is their a time to buy good fundamental ones and time to buy no good fundamentals?
Stock prices “move” up or down depending on a number of factors including fundamentals. In the case of Japaul, Ikeja hotels and even Jos Breweries their share price movements is as a result of volume. If you look at the price movements you will see it is because there are a lot of willing sellers and buyers. I try to get way from such stocks as its no different from betting. But if you are into stock market for the daily profit taking from movement in share prices then you need not bother about fundamentals as much as you would about technical analysis. Cheerd
Alright.now following courteville first,second and third quarter results so far,do you think they can pay dividend to shareholders next year?if yes,do you think they can pay above 5 kobo?
lol. They paid 5kobo for last year’s result and gave a bonus issue of 1 for every 5. I expect them to pay above 5kobo
Hi Ugodre,if your latest post concerning DFM and Tiger brand works,that means minority shareholders of dfm will only have 1.5 billion ordinary shares to hold.this means this stock will be scare as investors will be in need of the stock.dont you think this stock price will go above 20 naira in few months to come?
Hi Victor, I don’t estimate stock price based on sentiments. The key thing you should look out for is whether the acquisition by Tiger Brand is likely to help improve the fortunes of the company either through funding new investments and developing better products or doing something that can help improve bottom line. That is what might make be buy and not just whether the stock will be scarce or not. Besides, 1.5billion shares is quite a lot of liquidity for any company
Hi ugodre,some of us buy company shares without understanding the basics.for me,i have these questions for moderations from you.firstly,i want to understand a company share outstandings traded in the secondary market, is it different from the total shares own by the company/ board of directors?To make you understand me well,if a company listed 2 billion units shares,is that the total units of shares for both the company and shareholders?secondly,if a company listed 2 billion units of their shares and a particular firm wants 30% of their shares.will it be sold to them from the listed share outstandings or they create extra units for them?i want to know how these things are done.thanks