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Company Results

Briscoe Motors: Pioneer dealer of Toyota automobile in Nigeria suffers N1.27billion loss

The Auto dealer has a working capital deficit of N14.76bn, driven by a bank overdraft of N15.76bn 

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Pioneer dealer of Toyota automobile in Nigeria suffers a N1.27bn loss

Briscoe Motors has sent its audited financial results to the Nigerian Stock Exchange. The results revealed that the auto dealer suffered a loss of N1.27 bn in 2019. 

According to the report released by the exchange today, the company’s performance is an improvement, when compared with thN2.18bn loss, the company reported in 2018. 

Highlights 

  • Revenue increased by 33.9% 
  • Cost of sales increased 41.8% 
  • Operating profit increased by 94.5% 
  • Finance costs decreased by 37.3% 
  • Loss for the year decreased by 41.7% 

cursory view of R.T. Briscoe’s performance, revealed that revenue increased from N5.18bn in 2018 to N6.94bn in 2019. This increase was driven by the improvement in the dealer’s core business segment, as the proceeds from the sale of Motor vehicle and accessories in 2019, rose by 59.7%. 

This improvement in revenue is a consequence of the board’s decision in 2017, to return the company back to profitability, with avid steps taken to restructure the business for greater efficiency and economic rewards, via a strategic positioning of the company’s business segment to customers. This has helped the core business segment of Briscoe in recent years. 

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Despite this improvement, it is noteworthy that the 61% increase in the cost, coming from the company’s activities in the Motor vehicle and accessories segment, continue to pressure the growth prospect of the dealer. 

(READ MORE: OPay and WorldRemit partner to offer International Mobile Money Transfer Service)

In like manners, the rising cost of sales from this segment was compounded by a N1.45 billion finance cost, which the company incurred during the year, as the company is aggressively geared with bank overdraft of N15.76bn, representing 86% of the total liabilities of the company. 

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With recoverability of the trade and other receivables of the company long overdue, the Toyota Automobile dealer is exposed to credit risk, as trade and other receivables accounted for 31% of the total assets value of N8.914bn. 

Key issues facing the company  

It is noteworthy that the auto dealer has a massive working capital deficit of N14.76bn, driven by a current debt of N15.76bn.  

With bank overdraft and other debt unpaid, the company faces penalty charges by banks and court litigations. All these issues have led to winding-up cases of the company, from the banks and other creditors. 

As a result of both current and previous losses incurred over the years, the shareholders’ fund has been completely eroded, to the tune of N9.5bn and N9.9bn deficit for the group and company respectively, as at December 2019. The widespread vulnerability in the company’s book has cast doubts on the goingconcern of the company. 

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Company Results

Custodian Investment Plc posts Profit After Tax of N1.5 billion in Q3 2020

The company recorded impressive results in some key financial metrics such as gross revenue and profit after tax.

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Custodian Investment Plc has declared a Profit After Tax (PAT) of N1.5 billion in the third quarter of 2020, as against N1.37 billion posted the same period in 2019.

This is according to the consolidated financial report of the firm for Q3 2020.

What you should know

The firm recorded impressive results in some key financial metrics such as;

  • Gross Revenue grew by 42% from N15.85 billion to N22.52 billion.
  • Interest income advanced by 11.3% Year-on-Year.
  • Investment income gained 25.4% from N5.61 billion to N7.03 billion.
  • Earnings per share appreciated by 50% from N24 to N36 for the period under view.
  • Other investments and operating income grew by approximately N6.40 billion.
  • Total assets also grew by 27% from N118.01 billion to N149.94 billion for the period under view.
  • Profit before tax marginally grew by 2.8% from N1.69 billion to N1.73 billion.

What this means

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  • The growth in revenue and profitability is attributable to an increase in financial and reinsurance assets which appreciated by 35.62% and 32.5% (Y-O-Y) respectively.
  • An increase in investment and interest incomes were also very important in driving revenue.
  • On the contrary, despite recording increased gross revenue, the net profit margin decreased over time, from 23.91% recorded as of Q3 2019 to 5.8% in Q3 2020. Thus, indicating a probability of weak cost control mechanism or that variable values are not well controlled.
  • The Net profit margin indicates that the company earned N0.057K in profit for every N1 it received in revenue as of Q3, 2020. This is lower compared to N0.24k for every N1 it earned in revenue in Q3, 2019.
  • This is evident in the higher operating expenses recorded as of Q3 2020 which is up by 97.4% when compared with the figures obtained in the corresponding period last year (Q3 2019).

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Company Results

Trans-Nationwide Express Plc suffers N79 million loss in Q3 2020

Trans-Nationwide Express Plc has recorded a loss that amounts to the tune of N79 million in Q3, 2020.

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Trans-Nationwide Express Plc, Trans-Nationwide Express Plc appoints new Managing Director 

Trans-Nationwide Express Plc, a logistics and courier service company in Lagos, Nigeria, suffered N79 million loss in the third quarter of 2020.

This disclosure was based on the Q3 2020 financials sent to the Nigerian Stock Exchange on Wednesday.

READ: NIPOST’s new charges could have ruined the e-commerce/logistics industry

Breakdown

  • Revenue declined by 7.5% Year-on-Year, from N548.3 million as of the corresponding period last year to N507.17 million this year.
  • The dip was largely due to a decline in revenue from courier services, which contributed about 54.1% of the total revenue as of Q3, 2020.
  • The revenue from courier services declined from N326.44 million to N274.40 million for the period under view.
  • On the contrary, other revenue churning segments like Freight income, logistics income, internal mailing income, and warehouse all recorded a positive outlook, as they all grew viz-a-viz last year’s figures.
  • Gross profit declined by 7.1% from N321.23 million to N298.40 million in the period under view.
  • Administrative expenses increased by 17.5% from N321.0 million to N377.1 million within the period under view.
  • Cash received from customers recorded a dip from N542.28 million to N523.07 million, indicating a slip of about 3.5%.

READ: BRT owners, Primero says they lost N100 million to #ENDSARS violence

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What this means

The pandemic affected several businesses and sectors, the transportation and logistics sectors were not exempted. The loss might have been largely due to the period of economic inactivity, due to embargo on inter-state and international travels.

The high cost of maintenance, coupled with little or no revenue in those periods also played a major part.

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READ: PZ incurs N1 billion in exchange rate loss 

READ: Lafarge Africa Plc: Increase in cement sales boosts revenues

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Company Results

Total Nigeria Plc records 344% rise in PAT for Q3 2020

Total Nigeria Plc recorded an 881% rise in Profit Before Tax (PBT) for the period under view.

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Total SA, Crude

Total Nigeria Plc recorded N500.12 million as Profit After Tax in Q3 2020, against the N204.84 million loss it suffered in the corresponding period last year – a 344% increase.

The information is contained in a recent disclosure sent to the Nigerian Stock Exchange Market today.

READ:  Nigeria’s Foreign Trade hits N9.18 trillion in Q3, as non-oil export rose by 374.5%

In addition, it also recorded an 881% rise in Profit Before Tax (PBT) for the period under view, as PBT increased to N912.89 million, against N116.95 million loss recorded in the corresponding period last year.

READ: Analysis: A better way to price Guinness shares

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On the contrary, revenue during the period under view declined by 32%, from N221.84 billion recorded in Q3 2019 to N151.71 billion in Q3 2020.

READ: Flourmills posts impressive Q3, sustains recovery in 2020 financial year

READ: GTBank revenue for H1, 2020 rises to N225.14 billion

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What this means

The reason for the mixed result in terms of the dip in revenue and a non-corresponding increase in profit is largely due to a drastic reduction in costs. This simply means that the firm was able to manage its costs very well despite recording lower revenue.

READ: NPL: Banks recover N738.15 billion from oil and gas sector in Nigeria

For example, the firm was able to do the following:

  • Reduce its cost of sales to about N66.06 billion, from N196.74 billion as of Q3 2019 to N130.68 billion in Q3 2020 – indicating a 33.6% reduction.
  • Reduce its finance cost by 58.25% and increase its finance income by 664.3%.
  • The number of staff also reduced by 6%, hence impacting administrative costs.
  • Interest on bank loans and overdraft remarkably declined by approximately 64.0%.
  • On the flip side, the impact of the lockdown period, due to the spread of the pandemic, affected the revenue of the firm, which may have accounted for the 32% dip in revenue for the period under view.

READ: Analysis: Lafarge Africa Reports N30 billion Loss In 6 Months

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READ: Guinness Nigeria Plc jostles to improve from its insipid 2020 financial year

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