C & I Leasing reports 7.5% increase in profit to N1.19bn

Motolani Oseni

C & I leasing plc has reported 7.5 per cent increase in profit after tax for the full financial year ended December 31, 2018.

The company profit after tax moved from N1.11 billion in 2017 to N1.19 billion in 2018 over improved gross earnings, Impairment charge and Share of profit from the joint venture.

Aside growth in profit after tax, the group’s profit before tax also appreciated by 22per cent to N1.54 billion from N1.26 billion reported in 2017.

The listed company on the Nigerian Stock Exchange (NSE) on Friday said gross earnings rose by 32 per cent to N28.2 billion in 2018 from N21.37 billion in 2017.

Total assets for the Group grew 17 per cent to N52.6 billion in 2018 from N45.0 billion in 2017 while shareholders’ fund increased by 30.2per cent from N8.8 billion in 2017 to N11.5 billion in 2018.

In addition, the total liabilities of the Group also rose 13.7per cent from N35.9 billion in 2017 to N40.8 billion in 2018.

During the year, the economy continued to show signs of recovery from the 2016 recession, thereby creating a favourable environment for C & I Leasing to achieve better results.

The company in a statement said, “We focused on increasing visibility and rebranding, detailed process reviews and automation initiatives, some of which are still ongoing.

“We intend to implement the learning outcomes from the process reviews to position the Company as the foremost, biggest and most preferred within the logistics and transportation service space with enviable results.”

Having completed the share capital reconstruction, the company said it intended to raise fresh capital through a combination of public offer and rights issue.

The Directors of C&I leasing proposed a dividend of 1,391,752,500 per ordinary share of 7.5 kobo each, amounting to N104, 381,437.50 be paid to shareholders upon approval at the Annual General Meeting.

For 2019 outlook and beyond, the company said, “Despite the uncertainties which every election year is laden with, unpredictable monetary, fiscal and other government policies, high interest rate, likely Naira devaluation and high cost of doing business, we will continue to seek opportunities for growth and business expansion aimed at improving the profitability of the business and returns on investments to shareholders.

“As a popular financing tool, leasing provides important leverage in modern business. Its flexible nature allows it to compete favourably against traditional finance sources such as bank loans, bonds, etc.

The leasing industry is expected to blossom, owing to various initiatives of the government aimed at supporting the economy and the increasing relevance of leasing to capital formation.

“Another emerging business opportunity lies in the healthcare and education sectors with appreciable inroads being made in providing school buses as well as ambulances contracts.”

The company explained further that “We aim to exert a determined effort to achieve undisputed leadership within our market space by the optimising cost across all businesses, increasing operational efficiency, improving on the attitude and culture of our people,

aligning our strategies to our goals and ensuring that the profit contributions of our core business activities of Marine, Fleet management and Outsourcing are in the ratio 40 per cent: 30 per cent:30 per cent.

“We engaged the services of a supply chain expert and we are looking to implement transformation initiatives aimed at improving efficiency and process flow within the current period.

“Having completed the share capital reconstruction, we intend to raise equity capital through a public offer and rights issue. We will also conclude the process of Abraaj loan conversion into equity in the form of ordinary shares.”