By NKIRUKA NNOROM

On the top 10 performing stocks last week were the shares of Ikeja Hotels Plc, Cadbury Nig. Plc, Transnational Corporation of Nigeria (Transcorp Plc), Oando Plc, Unilever Nig. Plc and PZ Cusson Plc.

The floor of Stock exchange

Others were Dangote sugar Refinery plc, National Salt Company, NASCON Plc, UBA Capital Plc and Custodian and Allied Plc.

Ikeja Hotels Plc, which has defied all odds emanating from its disregard to the post-listing rules requirements of the Nigerian Stock Exchange, NSE, regarding early submission of its quarterly and full year financials, an action that recently earned it a N1.5 millions from the NSE, led the pack with 45.63 per cent or N1.15 appreciation to close at N3.67 from N2.52 it started the week at.

Though market operators have severally said that the company lacks any fundamental that will warrant the kind of upward trend on its shares, Ikeja Hotels competes well with other peers in the hotels/lodging sub-sector of the NSE in terms of market price and has somewhat delivered more returns to its shareholders in the sector. Its 52 week returns, for instance stands at 555.4 per cent.

However, the company is still struggling with lower revenue and declining bottom-line as it recorded 102 per cent drop in post tax profit and marginal 0.35 per cent decline in revenue during the financial year ended December 2013.

It recorded N1.627 billion in pre-tax profit in 2013 financial year as against N2.610 billion posted in comparable period of 2012, indicating a drop of 60.4 per cent, while its profit after tax (PAT) dropped by 102 per cent from N2.016 billion in 2012 to N994.806 million in 2013.

The revenue at N11.223 billion represents 0.35 per cent decline over N11.263 billion posted in the same period in 2012. Also, the first quarter 2014 financials showed a drop of 36.4 per cent in profit before tax to N251.443 million from N343.063 million in 2013.

After taxes, net profit also dropped by 36.4 per cent to N170.981 million in 2014 compared with N233.283 million in 2013 while turnover declined by 4.9 per cent from N1.597 billion in 2013 to N1.522 billion in 2014.

Cadbury Nig. Plc followed with 33.92 per cent or N11.81 price increase, rising to N46.63 from N34.82 at the beginning of the week. The company last week announced resignation of Mr. Ruslan Kinebas, a non-executive director, from the Board of Directors of the company.

The resignation, which will take effect from 31 December 2014, was duly approved by the Board of Directors at its meeting of 21 October, 2014.

The first quarter financial statement for the period ended March, 2014 showed that Cadbury is battling with decreasing finance income, which negatively affected its result for the period. The company’s revenue declined by double-digits in March 2014, falling by 17.24 percent to N6.92 billion from N8.36 billion during the same period in 2013.

According to analysts, an increase in competition within the sector, continuing insecurity in the northern region, and a less favourable macro-economic situation contributed to the company’s performance during the period.

Nevertheless, the Company was able to record a reduction in cost of sales, declining by 20.57 per cent to N4.06 billion in March 2014 from N5.11 billion in March 2013.

According to management, the reduction in sales cost is in part a testament to the effectiveness of the new Multi-Energy Vapour Absorption Chiller, which utilizes exhaust fluent gas that was formerly discarded. Despite the decline in sales costs, gross profit fell by 12.00 per cent to N2.86 billion in the first quarter ended March 2014, from N3.25 billion in the corresponding period of 2013.

Transcorp, whose subsidiary, Transcorp Hotels, recently concluded an Initial Public Offer of N8 billion that will help it expand its footprint in the hospitality industry, trailed behind Cadbury with 33.77 percent or N1.04 price increase to close at N4.12 from N3.08.

The share price of the company had almost climbed to the 2007 IPO price following different investments and initiatives put in place by management of the company to boost its operation, before it was hit by profit taking, which depleted the price to the current market price. It had risen to N7.04 before crashing. Nonetheless, Transcorp Plc has delivered 50.9 percent 52 weeks returns to investors.

Oando’s shares rose by 29.76 per cent or N5.03 to close at N21.93 from N16.90; Unilever advanced by 26.06 per cent or N7.38 to close at N35.70 from N28.32; PZ Cusson added 25.43 per cent or N4.46 to close at N22.00 from N17.54; Dangote Sugar went up by 24.55 per cent or N1.22 to close at N6.19 from N4.97; NASCON appreciated by 18.97 per cent or N1.32 to close at N8.28 from N6.96; UBA Capital added 17.65 per cent or N0.27 to close at N1.80 from N1.53, while Custodian and Allied appreciated by 16.92 per cent or N0.55 to close at N3.80 from N3.25 per share.