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Leventis returns to winning way, declares N876 million profit after 3 years

Investors of Nigeria-based British conglomerate, A.G Leventis Nigeria PLC, have their lucky stars to thank as the firm has announced a profit of N876 million for the 2018 financial year-end after recording losses for three consecutive years.

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A.G Leventis

Investors of Nigeria-based British conglomerate, A.G Leventis Nigeria PLC, have their lucky stars to thank as the firm has announced a profit of N876 million for the 2018 financial year-ending, after recording losses for three consecutive years.

The losing streak, beginning in 2015 and ending in 2017, must have caused much panic among long-term investors, hoping all along that return on their investment would come their way someday.

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A.G. Leventis

Kola Karim, Group Managing Director, A.G Leventis Nigeria Plc

The details of the company’s performance are contained in the Annual Report and Accounts of A.G Leventis published on the Nigeria Stock Exchange website on 1st July, 2019.

[ALSO READ: NAHCO to pay N0.25 dividend, invests N3.6 billion in agric business]

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Key Performance Indicators Improved: All major performance indices closed in the positive. Turnover increased marginally by 6.76% to N12.263 billion in 2018 from N11.488 billion recorded the year before.

Profit Before Tax went up to N620.548 million from Loss Before Tax of N3.86 billion that A.G Leventis recorded in 2017. However, it is worthy of note that A.G Leventis’s return to profitability rode largely on the back of the gain it earned from the disposal of its subsidiary, which yielded N1.428 billion for the company.

Profit for the year summed up to N876 million in 2018, a dramatic turnaround from an outrageous loss of N3.477 billion recorded in 2017.

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A.G Leventis

Ahmed Kazalma Mantey, Chairman, A.G Leventis Plc

The Board of Directors have decided that A.G Leventis Nigeria Plc will not pay dividend for the year.

[READ ALSO: Red Star Express Plc increases dividend payout by 7.2% year on year]

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Why this matters: By all standards, the performance is a long-awaited relief to the company’s shareholders who obviously have been disappointed by the abysmal performance of A.G Leventis for three years.

Information gleaned from the company’s financials shows that the Earnings Per Share of A.G Leventis’s stocks is now 33k on every unit held by shareholders compared to the Loss Per Share of N1.27 on each unit in 2017.

A. G Leventis

Michael E. Economakis, Vice Chairman, A.G. Leventis Plc

Put differently, A.G Leventis made a gain of 33k on every unit of its shares in 2018 while it made a loss of N1.27 on each unit of share in 2018.

Altogether, the new development suggests that there is a high probability that investors’ confidence will be restored in the company as the year progresses. This means that there will be more activities and transactions on the company’s shares on the NSE.

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The shares of A.G Leventis Nigeria currently trades on the floor of the NSE at N0.30 per share.

[YOU SHOULD ALSO READ: SEC opposes Oando’s plan to join suit filed by its top executives]

Patricia

Ronald Adamolekun is a creative writer with proficiency in journalism, financial reporting, financial analysis and imaginative writing. However, his core competency lies in fiction and short story writing as well as feature writing. He is a graduate of English and Literature from Covenant University, Ota, Nigeria.

1 Comment

1 Comment

  1. Ipadeola Jonathan Okesooto

    July 9, 2019 at 11:05 am

    Appropriate disclosure consolidates the integrity of financial reporting; the report ought to have disclosed gain on disposal of Subsidiary in sum of NGN 1,428,055,000.00 as exceptional item and allow Stakeholders to judge the performance of the company.
    Please note that sum of NGN 1,848,326,000.00 as administrative expenses and NGN 897,742,000.00 as net finance cost would not allow a Company recording sales of NGN 12,263,625,000.00 to grow.
    Investors are upgrading their status; let all Operators and Regulators respond accordingly.

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Business

China more willing to restructure Africa’s debt than private creditors

Agreements have been easier to reach with Chinese lenders than with private creditors.

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A recent study by John Hopkins University reveals it may be easier for African Nations to raise debt and also get debt relief from China than private creditors.

The report of the study comes a day after China promised to cancel interests from loans to African nations and restructure debt to Africa. The study also revealed that China has restructured $15 billion of African debt and written off $3.4 billion in the past ten years.

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After 1,000 Chinese loans, including restructured Mozambican and Republic of Congo debt, were analysed, the researchers concluded that “the agreements have been easier to reach with Chinese lenders than with private creditors”.

The Paris Club recently agreed to pause debt payment valued at $11 billion for the poorest 73 nations freeing up capital to tackle the coronavirus pandemic. However, not all eligible nations signed up citing fears of default ratings if debt obligations are not met.

The study discovers difficulties in renegotiating terms on International Bonds for African countries due to the disparate ownership structure making private creditors unwilling to grant complete debt relief, citing warnings on rating downgrades.

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China accounts for about 20% of Africa’s external debt and lent over $150 billion to the continent between 2000-2018 the study reveals. Chinese President, Xi Jinping has urged global leaders to be more pragmatic with debt suspension for Africa.

The study says much of the terms of Chinese debt to Africa has not been transparent and the relief negotiations may follow the same path.

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Orange, France’s largest telco operator, may come to Nigeria in months

Orange would also be looking at bolstering partnerships with health companies or institutions.

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Orange, France's largest telco operator, may come to Nigeria in months

France’s largest telecom operator, Orange, is set to extend its tentacles to Nigeria and South Africa.

Chief Executive Officer, Orange, Stephane Richard, who disclosed the news, said that the firm would make the move in a few months.

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He said, “It could make sense to be in economies such as Nigeria and South Africa. If one considers there are things to do, the time frame I am considering is rather a few months than a few years.”

READ ALSO: French telco inks investment partnership with MainOne

The Middle East and Africa, where Orange has a presence in 18 countries, is the company’s fastest-growing market.

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What you need to know: There are chances that the company may eye payment transfers (mobile) in Nigeria.

That is because it makes the largest chunk of its revenue from payment transfers (Middle East), a key part of the group’s diversification into financial services, and Nigeria, which is the most populous black nation, is always an attraction.

READ MORE: Multichoice to integrate Netflix, Amazon contents into decoder

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Meanwhile, earlier in 2020, Orange had stated that it was bringing its operations in the Middle East and Africa into a single entity, paving the way for a potential listing of the operations that could raise cash to invest in overseas expansion.

“Orange would also be looking at bolstering partnerships with health companies or institutions,” he added.

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LIRS further extends deadline for filing annual tax returns by one month

“We constantly debated what other measures could be taken as an organization to support individuals and businesses at this time, hence, the additional one-month extension from June 1, to June 30, 2020.” – Ayodele Subair

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LIRS further extends deadline for filing annual return by one month

The Lagos State Internal Revenue Service (LIRS) has again extended the deadline for filing of Annual Tax Returns from May 31 2020 to June 30, 2020.

This is part of the state government’s effort to provide relief to taxpayers in light of the economic impact of the Covid-19 pandemic. With this development, annual returns for individuals, both employees and self-employed persons, can be filed anytime before June 30, 2020.

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In a press release signed by Monsurat Amasa, the head of LIRS’ Corporate Communications Department, the agency urged taxpayers to take advantage of the magnanimity of the government and file their returns. The LIRS’ Executive Chairman, Mr. Ayodele Subair, explained the extension thus:

“As the Lagos State Government keeps abreast of global best practices in containing the Covid-19 pandemic and eases the effects of an economic downturn on taxpayers and residents of the State, LIRS had initially extended the deadline for filing annual tax returns for two months, from the statutory March 31st of every fiscal year to May 31, 2020.  

“We constantly debated what other measures could be taken as an organization to support individuals and businesses at this time, hence, the additional one-month extension from June 1, to June 30, 2020.”

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(READ MORE: COVID-19: Lagos issues new guidelines, considers full reopening of economy)

He further explained that taxpayers can file the annual returns from the comfort of their homes and offices using the LIRS eTax platforms. They can also generate assessment and payment schedule, and other tax administration matters on the same platform. Updates on business operations and alternative payment platforms are to be found on the verified handles, and the LIRS website.

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