Courteville Business Solutions released its 2014 FY results a few days ago showing revenue grew 4.7% year on year to N1.35billion. The company also posted a profit after tax of N318milliom, 3.6% higher than the same period in 2013. The results also shows Courteville’s continues to rely on its (MVAD) Motor Vehicle Administration Documentation (which it provides for many state governments) to drive revenue. Revenue from its MVAD segment rose just 5.3% to N1.23billion YoY in 2014 compared to a 26% rise recorded in 2013.
Despite the drop in revenue the company was also able to grow pre-tax profits in double digits (13.7%) YoY to N457million. The company saw tax expenses rise by 46% to N139million essentially churning off potential profits. Effective tax rate was 30% the year under review compared to 24% in 2013.
A further look into activities throughout the four quarters of 2014 reveals the company reported a fourth quarter profit after tax of just N7million. This is average than the average N80 million it poste in the prior 7 quarters. The reason for this was the high operating cost and non- operating loses it incurred in the period. We believe this could be due to increase in staff cost as well as a huge reduction in revenue for the last quarter of the year. Revenue for Q4 was just N235million and lower than the last seven quarter average per month of N344million.
The reason was this drop was not officially disclosed from the results one can see that revenue from vehicle permits may have slowed considerably in the last quarter of the year. They also incurred the most tax during the quarter of N85million. All of this contributed to the N7million paltry profits. See Q-Q4 results below;
| Courteville Business Solution | ||||
| 2014 | Q1 | Q2 | Q3 | Q4 |
| N’m | N’m | N’m | N’m | |
| Income Statement | ||||
| Gross Income | 411 | 396 | 310 | 235 |
| Cost of sales | (193) | (188) | (201) | 56 |
| Gross Profit | 218 | 208 | 109 | 291 |
| Operating Cost | (88) | (110) | (107) | (138) |
| Operating Profit | 130 | 98 | 1 | 153 |
| Other Income | 0 | 51 | 122 | (44) |
| Finance Cost | (7.23) | (14) | (15) | (17) |
| Profit Before Tax | 123 | 135 | 108 | 91 |
| Other Comprehensive Income | – | – | – | – |
| Taxation | (20) | (21) | (14) | (85) |
| Profit after Tax | 103 | 113 | 94 | 7 |
| Indices | ||||
| Eps (Kobo) | 2.90 | 3.19 | 2.66 | 0.19 |
| Outstanding Shares (Million) | 3,552 | 3,552 | 3,552 | 3,552 |
| Gross Profit Margin | 53.0% | 52.6% | 35.0% | 123.8% |
| Operating Profit Margin | 31.6% | 24.7% | 0.5% | 65.2% |
| Profit Margin | 25.1% | 28.6% | 30.5% | 2.9% |
| SGA as a %age of Gross Profit | 40.3% | 53.0% | 98.7% | 47.3% |
| Interest Cost as a percentage of Operating Profit | 5.6% | 14.1% | 1071.4% | 11.4% |
