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Diversifying operations to maximise profit in COVID-19 era

By Helen Oji
21 August 2020   |   4:09 am
As the international response continues to develop, companies are facing significant challenges and need to respond rapidly.

Managing Director, C&I Leasing, Andrew Otike-Odibi

As the international response continues to develop, companies are facing significant challenges and need to respond rapidly. There is a need for them to also prepare and respond to the different scenarios emerging from the COVID-19 crisis.

Besides, existing business continuity plans may not be capable of handling the fast-moving and unknown variables of an outbreak like COVID-19. To this effect, companies are expected to develop incident management and scenario plans that would help optimize their cost and boost profitability amid pandemic.

Companies that can navigate these times through proactive and innovative thinking would stay ahead of trends, identify inherent growth opportunities in the aftermath of the pandemic, and build lasting businesses with stakeholders.

To increase shareholders value and increase bottom-line in COVID-19 era, C&I Leasing Plc has unfolded plans to raise N10 to N13 billion from the market through bond issuance for refinancing and to boost capital structure.

At a webinar organized by the company, Wednesday, the Managing Director, C&I Leasing, Andrew Otike-Odibi, said the company intends to improve its financing options, diversify business operations as well as pursue cost optimization vigorously to enable it maximise profit for shareholders going forward.

According to him, the bond issuance, which is specifically for capital structure remodelling will replace its commercial paper from a short term to a long-term form.

With the bond issuance, he said the firm is also considering raising equity that would help strengthen the business capital structure, adding it would scale up its digital space to drive sales as well as introduce a new fleet management option to drive efficiency.

“We will see more of the company in the digital space to drive another aspect of sales in our business. There is also a need for us to invest in human capital and mind shift in a new business. This will be done in a lot more efficient manner than in the past.”

The Chief Finance Office, Alex Mbakogu, attributed the drop in rental income to the impact of COVID-19 on its operation, resulting in asset return and drop in price.

“For the drop in price, we are keeping these assets working for the market to reverse. Assets return will inch back again and we have opened up businesses to other services that are not asset dependent to generate more revenue enhancing value for the company, ” he said.