Tantalizers Plc released its 2015 FY results reporting a loss after tax of N707 million (2014 : (N784 million). According to its financial statements revenues dropped 34% to N1.9 billion during the year (2014: N2.9 billion).
Tantalizers spends about 85% of its N2.35 billion revenues on local materials and services, leaving it with just N286.6 million to pay for salaries (N383.4 million), interest on loans (N208.8 million) and depreciation (N390.2 million).
This is the 4th consecutive year of losses for the company, having reported a loss after tax of N303.4 million, N564.8 million, N784.2 million and N707 million for 2012, 2013, 2014 and 2015 respectively. The losses over the years have now swelled its negative retained earnings to about N2.59 billion, indicating that dividends might not be paid in the nearest future.
Tantalizers also reported a negative cash flows of about N199 million despite selling properties worth about N339 million. It’s operating cash flows was negative as the company spent more cash on operating expenses that it earned. To remain afloat, the company had to survive on overdrafts.
Tantalizers currently has total external loans of about N1.4 billion from a trio of Nigerian Banks and the IFC. The loans appear to be doubtful going by this results even though the company reported that it had restructured the loans.
The fast food giant reported that it restructured a loans of about N395.5 million to 2020 and another loan of N262.1 million to 2019. Nigerian banks often restructure loans to a longer term tenor when it is obvious that the original terms of the loans might lead to a bad loan. Tantalizers also owes GTB N8 million, Bank of Industry N292.5 million (2019) and IFC N346.7 million. The tenor of the loans suggest the company must have entered a restructuring deal with all of its banks as cash flows indicates it cannot accommodate prior repayment terms.
