C&I leasing explains decline in revenue, profit for Q1 2016
C&I Leasing Plc has announced a profit after tax (PAT) of N96 million for first quarter (Q1) 2016.
This, according to the company, represents 229 per cent decline when compared to N220 million in achieved in Q1, 2015.
Also, the company’s profit before tax also declined from N275.4 million in Q1, 2015 to N111.1 million in Q1, 2016.
The firm achieved total revenue of N4.4 billion for the first quarter under review compared to N4.8 billion in the corresponding first quarter of last year.
This indicates a marginal declined in total revenue, which was also down to the harsh operating environment in the country.
In addition, the company’s lease rentals income was N2.7 billion in the quarter under review compared to N3.2 billion in the corresponding quarter of last year, while outsourcing income stood at N1.4 billion in the Q1 2016, a relatively stable performance compared to N1.3 billion Q1 2015.
For loans and receivables, the company announced N468.6 million in the quarter under review compared to N471.5 million in Q1, 2015.
However, C&I’s total equity increased 1.6 per cent Year on Year from N5.7 billion in Q1 2015 to N5.8 billion in Q1 2016.
Commenting on the Q1 2016 results, the Managing Director and Chief Executive Officer of the company, Andrew Otike-Odibi explained that the beginning of the year was tough for every companies operating in the country due to the economic uncertainties which was orchestrated by government policies, foreign exchange scarcity, fuel scarcity and electricity challenges.
He, however, noted that in spite of the operating environment, it was commendable to note that many of the company’s subsidiary businesses currently contribute about 30 per cent to the group earnings, which represents hope that in the next quarter, the company will broaden its income generation base.
His words: “As we had expected, the year presented a set of challenges ranging from inflationary threats to fuel shortages, all of which impacted the business environment. Our first quarter 2016 results reflect the stability and growth potential of our business in the face of daunting macroeconomic headwinds and a tough operating environment.
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