Last week, Thomas Wyatt Nigeria Plc was suspended alongside 5 other firms by the Nigerian Stock Exchange (NSE). The suspension was placed due to the companies’ failure to release their financial statements when due. The company eventually submitted its audited results for the financial year ended March 2018.
While revenue increased from N64.4 million in 2017 to N86.3 million in 2018, loss before tax jumped from N40 million in 2017 to N139 million in 2018. Loss after tax also increased from N41 million in 2017 to N98 million in 2018.
Close to the redline
Though the company’s auditors, BBC Professionals, noted that its most recent statements were prepared on a going concern status, they, however, issued a note of caution concerning three items which could cause that to change in the nearest future.
Shareholders in 2010 took the company to court over the sale of its head office to Leadway Assurance Plc.
Inadequate Top Management
The company has yet to appoint an acting Managing Director since the demise of its previous MD, Emma Obinyan in October 2013.
Fiddling while the ship is sinking
While the company’s board stated that it was addressing the issues, there was no mention of a concrete plan. The finance and strategy committee met just once during the year. The company’s website still lists Emma Obinyan and Tony Anenih, who are deceased, as directors.
Continuous loss over the years
The company has consistently made losses in the last five years, despite increasing revenue. Turnover increased from N54 million in 2014 to N86.3 million in 2018. Loss before tax, however, increased from N9.4 million in 2014 to N98.5 million in 2018.
Costs are weighty
While the company has steadily increased its revenue, costs are weighing down its operations. In 2018, the company made N89 million as revenue, but incurred a finance cost of N93 million, essentially wiping away revenue. The firm provided no break down of the finance costs into short and long-term loans.
Equity and retained earnings are negative at N286 million and N567 million respectively, meaning that the company is surviving on bank loans.
The firm is in dire need of raising capital, and if it fails to do so, its ability to continue as a going concern may be in jeopardy. The company’s share price has been on a downward spiral in the last 5 years, so an equity raise is out of the question. From N0.83 in 2014, the stock last traded at N0.23 on the 5th of October, its last trade before the suspension.
An out of court settlement of the case filed by retail investors should be pursued, and more funds injected by the core investors, Moorehouse Management Limited.
About the company
Thomas Wyatt and Sons (formerly known as Thomas and Sons West Africa) was incorporated on the 18th of March, 1948 as a private limited liability company and commenced business in 1979. It became a public company in 1978.
The company’s principal activities include the school exercise books, hardcover notebooks and other paper materials.
Amid sell-off, FUGAZ investors lose N34.68 billion in a single trading session
Market capitalization of the top five banks dropped to N2.52 trillion as at close of business on the 4th of March 2021.
Investors in the elite banks in Nigeria- FBNH, UBA, GTB, Access and Zenith have lost a total of N34.68 billion in a single trading session, amid sell-offs.
According to data from the Nigerian Stock Exchange (NSE), the market capitalization of the top five banks dropped to N2.52 trillion as at close of business on the 4th of March 2021, shedding about 1.6% in a single trading session.
The loss is due to downward pressure on the share prices of the elite banks, evident by the sell-off witnessed in the market. A snapshot of how much each bank lost and the impact is succinctly captured below;
The United Bank for Africa investors lost a total of N10.26 billion after its market capitalization dropped from N282.15 billion to N271.9 billion as at close of business yesterday.
The drop is due to a sharp decline in its share price which closed at N7.95, shedding about 3.64% in a day.
Investors cashed in on the decline to trade about 26,782,197 units of the Bank’s shares valued at N211, 571,939.35, placing the bank as the fourth most traded stock at the NSE. The volume of shares traded by the bank rose astronomically by 201.9%, when compared to 8.87 million units traded the previous day.
On the other hand, it is pertinent to note that the United Bank for Africa (UBA) is yet to release its audited FY 2020 result.
Access Bank Nigeria Plc lost a total of N8.89 billion after its market capitalization dropped from N286.14 billion to N277.25 billion. The loss is due to a decline in its share price from N8.05 to N7.80, indicating a dip of 3.11%.
Just like UBA, Access Bank investors traded a total of 21,586,491 units valued at N168, 090,266.60, placing it as the fifth most traded stock at the NSE today. In lieu of this, Access Bank stock volume appreciated by 229.1%, from 6.56 million traded yesterday.
Access Bank is yet to release its audited financial statements for FY 2020.
Zenith Bank investors lost a total of N7.85 billion after market capitalization dropped to N794.3 billion today. The marginal drop is due to a slight dip in the firm’s share price, from N25.5 traded yesterday to N25.30 as at close of business, indicating a decline of 0.98%.
Investors reacted to this drop by trading 38,647,711 units of the bank’s shares valued at N983, 251,467.75, placing the firm as the second most traded stock at the NSE market.
The drop in the market value of Zenith shares is in contrast to what was obtained last week, when investors gained a total of N37.7 billion, the highest recorded by the bank since the famous circuit breaker. The gains were sequel to an impressive financial performance by the firm for FY 2020, after it recorded a PAT of N230.6 billion and declared a final dividend of N2.70 per share.
FBNH investors lost N1.8 billion after its market capitalization declined to N253.06 billion as at the close of business. The drop was due to a 0.7% decline in its share price from N7.1 traded earlier to N7.05.
In lieu of this, a total of 31,253,644 units of the bank’s shares valued at N983, 251,467.75 were traded, placing the firm’s stock as the third most traded stock at NSE. The total volume traded surged by 88.9%, from a total of 16.54 million traded a day earlier.
FBNH had earlier declared a Profit After Tax figures of N79.71 billion for FY 2020, indicating an increase of 8.2% YoY.
GTB investors lost a total of N5.89 billion, following a drop in its market capitalization from N932.97 billion to N927.08 billion. The drop was due to a 0.63% decline in share price which closed at N31.50.
It is pertinent to note that GTB is yet to release its audited financial statement for FY 2020.
What you should know
- The Nigerian Stock Exchange ended on a bearish note on Wednesday, March 4, 2021 after the ASI declined by 0.40% to close at 39,364.67 index points.
- On a general note, investors lost a total of N82.35 billion, with FUGAZ accounting for 42.11% of the loss.
Cardano drops, but investors remain upbeat
Cardano traded at $1.06, with a daily trading volume of $7.4 billion. Cardano is down 11.76% for the day.
The fourth most valuable crypto asset is currently witnessing record sell-offs amid high profit-taking at the crypto-verse.
At the time of writing this report, Cardano traded at $1.06, with a daily trading volume of $7.4 billion. Cardano is down 11.76% for the day.
Cardano currently has a circulating supply of 31.9 billion ADA coins and a maximum supply of 45 billion ADA coins.
Amid the recent price drop in play, Cardano has experienced an impressive rally of late, as investors have relatively remained bullish on the fast-rising crypto asset on the bias that many crypto pundits believe it has the most decentralized project, and the most friendly and simple staking seen.
Cardano’s current return on investment stands at about 4837%. ADA coin is the name of Cardano.
Cardano (ADA) has been tipped to do well by many crypto experts on the account that it headed towards its smart contract launch last month, leading to a significant amount of applications built on Cardano.
This means that more developers will see it as an attractive medium for building their desired apps.
Lately, some investors are also of the bias that Cardano could at one point dethrone the world’s utility crypto, Ethereum. Cardano is a type of blockchain that permits people to receive and send funds.
It uses the Cardano blockchain and allows people to design smart contracts just like Ethereum.
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