By Nkiruka Nnorom

‘It is pertinent to state that there are two acceptable reasons why anybody should not invest. The first is if the person has accepted poverty as his destiny. The second is if the person is dead. Besides these two reasons, you can invest no matter the condition’

On the top 10 performing stocks last week were the shares of R.T Briscoe Plc, Redstar Express Plc, Presco Plc, Cadbury Nig. Plc and Cutix Plc. Others were Vono Products Plc, P.Z Industries Plc, John Holts Plc and National Salt Company Plc.

R.T Briscoe led on the chart with 14.29 percent or N0.11 price appreciation to close at N0.88 from N0.77 per share. Last year, the company secured shareholders approval to raise additional N10 billion to support its operations. The shareholders also authorized an increase in the company’s share capital from N2 billion divided into 4.0 billion ordinary shares of 50 kobo each to N3.25 billion divided 6.5 billion ordinary shares of 50 kobo each.

For the past two years, the company has been suffering from suffering from losses arising from high interest expenses. For instance, the 2013 audited financial statements and accounts showed that the automobile and Real Estate Company posted loss before tax of N151.60 million, thereby consolidating the loss streak in 2012. The company had in 2012 recorded loss after tax of N228.50 million. However, with tax gains of N59.59 million in 2013, net loss after tax dropped from N280.72 million in 2012 to N92.02 million in 2013. The turnover also dropped from N21.98 billion in 2012 to N21.77 billion in 2013, while the gross profit slipped from N2.68 billion in 2012 to N2.56 billion. Similarly, the operating profit dropped from N941.78 million in 2012 to N801.81 million. However, the company’s finance expenses rose from N1.26 billion in 2012 to N1.47 billion in 2013. The depressed bottom-line also impacted on shareholders’ funds, which slipped from N3.13 billion in 2012 to N3.05 billion in 2012.

Also, as a result of the negative performance, value creation for shareholders had taken a downturn, which warranted a reduction of about 25 kobo in the underlying value of dividend paid in 2012 in contrast with dividend per share of 10 kobo received in 2011 and 2010 respectively. The company did not pay any dividend in 2013 financial year, due to the negative bottom-line.

Redsatr Express followed far behind, rising by 6.60 percent or N0.26 to close at N4.20 from N3.90 per share. Just last week, the chairman of the company, Alhaji Mohammed Hassan Koguna, was honoured with the prestigious Pan-African Leadership Award by the African Students’ Union Parliament (ASUP) for exceptional leadership and committing resources to the development of Africa. The award is bestowed on outstanding leaders who have distinguished themselves and impacted humanity with regards to innovation, profitability, corporate social responsibility and sustainability of their organizations. It also recognizes individuals that have been influential and inspirational, and has overseen strong financial performance for his organization through leadership and vision, taking his institution to the next height in the industry. During 2013 financial year ended March 31, 2014, Redstar committed N206 million in terms of dividends to reward its shareholders, which amounted to 35 kobo per share. During the year, the company posted revenue growth of 21.2 percent from N5.293 billion in 2013 to N6.416 billion in 2014.

Presco gained 6.53 percent or N1.60 to close as the third top performer within the week. It started the week at N24.50 and closed at N26.10 per share. Presco is one of the companies at the fore-front of campaign for withdrawal of 75 percent import duty waiver to crude palm oil importers. According to them, the 75 percent waiver could best be described as nailing the coffin of the local oil palm economy and burying it. Speaking to shareholders at the 21st Annual General Meeting, AGM, last year, the chairman, Mr. Pierre Vandebeeck, had assured that the company has bright prospects and is contemplating a further expansion. He had assured that the company is poised to reap the benefits of the expansion programme undertaken in 2013. “Our performance in 2013 can be described as good.