The Nigerian corporate landscape has clearly not been known for brand repositioning stories with more companies just content to grow old and die rather than embrace change and ride the wave of innovation. In fact, rebranding or repositioning is becoming more important in the fast paced world we live in today, where the key revenue source can be made completely obsolete with one invention, tied with changes in the media landscape and message-weary audiences, making it harder for the same messages to break through.
Doing business in today’s Nigeria means you must continue to re-invent the wheel to remain relevant; which is key to keeping the companies’ revenue streams online.
C & I Leasing Plc for instance, incorporated in 1990 and known for her finance leasing services, has grown into a multi-dimensional ancillary and marine services company, whilst still holding strong in its primary business of leasing.
From providing leasing services to companies that need to purchase vehicles to acquiring crude oil carrier vessels to support the operations of Shell Nigeria Exploration and Production Company (SNEPCO) in Bonga and EA oil exploration fields, it can be said that the company is the poster boy for repositioning in Nigeria. From tying up support service deals in Nigeria’s Upstream sector, to acquiring shares in Leasafric Ghana, the Nigerian Stock Exchange- listed company is clearly one of Nigeria’s unsung corporates, providing specialised services, in marine, telecommunications, oil and gas, equipment rentals, manpower outsourcing and transportation
It’s almost forgivable, that whilst brand positioning and the hassle for market share may be the topmost agenda on the minds of most corporates, repositioning is actually a rear feat. However, it has also been done by likes of Forte Oil, going from a predominantly downstream company to an integrated energy company, or even Dangote, the cement giant, which has now touched almost every sector of the Nigerian economy, from consumables to even oil & gas.
On the profitability scale also, the C & I Leasing plc group has continued to show remarkable increases in gross earnings at N13.883bn in 2014 from N12.299bn in 2013 and N11.760bn in 2012. Profit Before Tax (PBT) also rose to N411.80m in 2014 from N304.52m in 2013; and N180.62m in 2012. Profit After Tax (PAT) stood at N317.49m in 2014 from N161.59m in 2013.
The company’s stake in Leasafric Ghana, which has witnessed some impressive growth both in turnover and profit in the last few years, especially, 2010 and 2011, also gives the company a platform to exploit emerging opportunities in the rapidly growing Ghanaian economy.
Thus, while it has continued to be business as usual for some firms, others continue to consider repositioning their product and services in line with their company goals and changing market dynamics.
C&I as a stock is trading at 58kobo per share, which puts its price to book ratio at 0.23, showing that it is quite cheap. The company in its 2014 FY results posted a 69% increase in earnings per share to 19kobo (2013 11kobo). The company followed that up with a proposed dividend per share of 8 kobo up 100% year on year. Earlier in May, it also reported a 120% increase in pre-tax profits to N335million and a 93% increase in earnings per share of 13 kobo.
The company intends to list a minimum of NGN2 billion bonds at the platform of the Financial Market Dealers Quotation (FMDQ) and the Nigerian Stock Exchange. The FMDQ is Nigeria’s Over-the-counter Market for debt instruments which includes the FGN bonds and corporate bonds.
The Bonds, which will be issued at par value, will have a coupon rate that is benchmarked against similar tenor FGN instruments. The company is already in the process of completing the necessary statutory approvals for the listing and admission to the trading of the Bonds.
The instrument is a fixed rate bond issue that is due in five years to culminate in the year 2020. The proceeds from the bond issue will be utilized primarily for business expansion of its marine services unit to refinance credit facilities and finance working capital requirements.
Though the down side of just over 1.8billion shares, to which only about 4 million units trade as its 30 day average, liquidity levels that ensure easy entry and exit do not exist just yet; but with a rights issue being rumoured, this could easily be fixed and see more investors buy into the growing success brand.
Flash Gordon
Disclosure – The author of this article does not owns shares in C&I Leasing Plc and does not plan to buy or sell shares in C&I Leasing Plc in the next 48 hours. The author of this article wrote it themselves and wrote this article on behalf of C&I Leasing Plc. The article is purely their opinion and by no means represent the opinion and view of Nairametrics on C&I Leasing Plc.
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Interesting … To see a company with growth potentials. This stocks will graduate from being a penny stock before the end of 2015.