C&I Leasing Q3 profit down by 48%

BY NKIRUKA NNOROM

C & I Leasing has announced 47.7 percent decline in its profit after tax for the third quarter ended 31st October, 2012.

The result released to the investing public by the company through the Nigerian Stock Exchange, NSE, was in contrast to the promises made by the company’s chairman at the 21st annual general last year where he pledged management’s readiness to employ resources available to improve on the preceding year’s financial performance.

During the year ended 31st January 2012, C & I Leasing had made a profit before tax of N184 million as opposed to a profit of N201 million in the prior year, which was a decrease by 8 percent from the previous year, though revenue increased by 35 percent from N6.2 billion to N8.4 billion.

A peep into the financial statement released on Wednesday showed that the profit slumped to N170.78 million as against N326.52 million posted in the equivalent period of 2011, which represents 47.7 percent decrease over the previous period.

Profit before taxation and minority interest also headed southward, falling by 42.9 percent to N242.15 million from N424.147 million. While operating expenses rose by 42.5 percent to N2.202 from N1.615 million, transfer to general reserves fell to N117.78 million from N275.88 million, also representing 57.3 percent decrease over the previous result.

However, the gross income rose to N9.17 billion as against N7.41 billion recorded in comparable period of 2011, while the net assets stood at N2.09 billion compared to N1.92 billion recorded in 2012, which represents 8.9 percent increase.

It would be recalled that the chairman AVM (rtd.) Abdul Bello had said while addressing the shareholders of the company at the 2012 annual general meeting that “Our Company will continue to be organised to take advantage and explore opportunities provided by the local content policy and other relevant regulations.

The Board and its various committees remain focused on seeing that the opportunities available to the company are harnessed profitably, while strengthening the company’s risk management processes.”

He further stated that the company would continue to deploy marine vessels to support Shell’s operations during the last quarter of the year in furtherance of the Federal Government’s laudable local content policy, adding that he was optimistic that the efforts would lead to additional business opportunities for the company in future.