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Companies
Staco Insurance profit after tax falls to N202 million in H1 2017
Staco Insurance Plc Profit After Tax fell from N240 million in Q1 2017 to N202 million in H1 2017, despite an increase in gross premium written. Gross Premium written increased from N3.03 billion in 2016 to N3.48 billion in 2017. Despite the profit, shareholders may not be getting dividends anytime soon as the company has negative retained earnings of N4.9 billion.
Possible reasons for the drop in performance
The Nigerian economy slipped into recession late last year, which led to a drop in economic activities. The drop in oil prices led to a foreign exchange crisis, which led the Central Bank of Nigeria (CBN) to embark on a tight foreign exchange policy. This affected several companies, especially involved those in importation of goods and services that were banned by the apex bank.
STACO insurance was incorporated on October 10, 1991 as a public limited liability company and began operations in October 1994. The company was listed on the Nigerian Stock Exchange (NSE) on the 25th of June 2007. The company’s shares closed yesterday at 50 kobo with no form of price appreciation year to date, underperforming the NSE All Share Index which is up 38% year to date. STACO insurance recently raised N1.6 billion through a private placement that saw new majority investors taking over.
The National Insurance Commission (NAICOM) recently instituted a risk based capitalization programme. Insurance companies will now insure risk in proportion to their capital base, thus leading to several firms embarking on capital raising programmes.
Companies
Neimeth Pharmaceuticals to raise N5 billion in additional equity
The Board of Neimeth is set to raise N5 billion additional equity upon the approval by shareholders of the company at the AGM.
Companies
Cutix Plc forecasts N148 million profit in Q4 2021
Cutix Plc has projected that its revenue will double and profit will increase by 9% to N148 million.
Cutix Plc has projected that in the fourth quarter of its financial year 2021, its revenue will double and profit will increase by 9% to N148 million.
These projections were made by the company in a recent earnings forecast issued by the Management, and signed by the Company’s CEO and CFO.
READ: Vitafoam shares gain 9.6%, as company reports N4.11 billion as profit in 2020
Key highlights of the earnings forecast for Q4 ended April 30, 2021
- Revenue to increase to N1.66billion, 100% Q-o-Q.
- Cost of Sales to increase to N1.16 billion, 70% Q-o-Q.
- Distribution, Admin & Other expenses to increase to N232.89 million, 14%% Q-o-Q.
- Other Income to remain unchanged at N2.50 million,
- Finance Charges to increase slightly to N47.38 million, 3% Q-o-Q.
- Operating income to increase to N227.83 million, 14% Q-o-Q.
- Taxation is projected at N79.74 million.
- While Profit attributable shareholders is projected at N148.10 million.
READ: Royal Exchange Plc forecasts N500.83 million PAT in Q1 2021
Bottom line
The earnings forecast was made on the ground that the Nigerian economy will continue improve, as the country recovers from the impact of COVID-19. In this regard, revenue in the fourth quarter of 2021 will be slightly higher than the revenue projected in the third quarter of 2021.
READ: Okomu Oil Plc records 27.01% decline in 2020 Q3 revenues
However, the increase in the cost of sales driven by the input cost will pressure profitability to the tune of N148.10 million, which is 9% higher than the profit after tax made in the corresponding quarter of 2020.
Companies
PZ Cussons proposes dividend payout of N397 million to the shareholders
The Board of Directors of PZ Cussons Nigeria Plc has proposed the payment of N397 million to the shareholders of the company.
