C&I Leasing posts N13.4b revenue

Loses almost N12 million in profit

C&I Leasing Plc, finance leasing, support and logistics solutions firm has posted revenue of N13.4billion in its third quarter operations, against N11.9 billion achieved in the corresponding period of 2015.

Specifically, the firms unaudited results for the period ended September 30, 2016, showed an increase in revenue from N11.9 billion in 2015 to N13.4 billion during the period under review.

However, profit before tax stood at N373.9 million, compared to N446.6 million in Q3 2015; profit after tax was N333.7 million, compared to N345.5 million in Q3 2015.

Lease rentals income was N8.6 billion, compared to N7.1 billion in Q3 2015, while outsourcing income rose by 5.1 per cent year-on-year (YoY) from N3.9billion in Q3 2015 to N4.1 billion in Q3 2016; shareholders’ fund increased 63.4 per cent from N5.69 billion in FY 2015 to N9.3 billion in Q3 2016.

Earnings Per Share (EPS) was 20.64 kobo, compared to 21.37 kobo in Q3 2015.Profitability ratios show Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) Margin of 28.6 per cent was recorded, compared with 33.4 per cent in Q3 2015.

Net profit margin was 2.5 per cent, compared with 2.9 per cent in Q3 2015; EBITDA/interest expense was 1.83, compared with 2.07 in Q3 2015.Capital structure ratios showed net debt/EBITDA was 7.24x, compared with 5.30x in FY 2015.

The company explained that its fleet management unit now offers a full range of fleet management solutions which include vehicle rentals, vehicle tracking/fuel monitoring and vehicle maintenance.It noted that the marine business remains strong and revenues have remained stable.

“The outsourcing division continues to record stable revenues and maintains growth as our market share was sustained during the period.
“New products such as our temporary Hire service are to be introduced to the market by December 2016. Our personnel working on the BWO FPSO have just won an award for working 5,000 days injury free. ”

The Managing Director of the company, Andrew Otike-Odibi explained that the improved performance was recorded due to the strength and resilience of it business model.

“The third quarter was another challenging period for the support and logistics industry as prevailing market conditions ranging from scarcity of foreign exchange to rising inflationary pressures on cost of doing business, greatly impacted our business operations.

“However, we have remained focused on the fundamentals of our business such as efficiency of business operations through cost management, superior customer service and diversification of earnings to take advantage of growth opportunities in the market where we operate.

“As a result, our subsidiary businesses contributed 26 per cent to our group earnings for the period, with each business division recording impressive growth from prior year position.”

Otike-odibi said the firm was poised to continue to explore more options of providing exceptional support services to clients as well as maintain a high quality product offerings to meet their diverse business needs and sustain profitability.

“We will continue to create superior value for all our stakeholders, particularly our esteemed customers and shareholders, whose confidence and support have been the driving force behind our achievements”.