By Peter Egwuatu
C & I Leasing Plc has disclosed that the rising cost of doing business, low demand, scarcity of foreign exchange, Forex, among others are the major challenges confronting its business in particular and the industry in general. Notwithstanding the challenges, the company recorded Profit After Tax, PAT of N920.9 million for the financial year ended December 31, 2017, up 519 per cent year-on-year from N148.8 million reported in the corresponding period of 2015.
The results obtained from the Nigerian Stock Exchange, NSE showed that revenue rose by 16.7 per cent to N17.0 billion from N14.6 billion reported in 2015 while lease rental income of N9.1 billion, up 11.4 per cent year-on-year from N8.2 billion.
Other indices rise: Net operating income stood at N5.7 billion, up 23.1 per cent from N4.6 billion in 2015 while shareholders’ funds was N8.1 billion, an increase of 42 per cent from N5.7 billion a year earlier.
Commenting on the results, the MD/CEO of C&I Leasing Plc, Mr. Andrew Otike-Odibi said: “2016 was a challenging year for the Company, given prevailing harsh market conditions; the scarcity of foreign exchange, rising inflationary pressures and the resultant increase in the cost of doing business coupled with the lower business volumes by both local and international oil and gas companies, on the back of the decline in oil prices which impacted the service sector especially in the reduction of day rates and work scope.
“This was achieved through a combination of cost-cutting measures, more efficient utilisation of assets, in addition to improved asset quality and foreign exchange gains. We remain focused on sustaining delivery of superior customer service and continued diversification of earnings to take advantage of growth opportunities in the markets and business segments we operate in.
“In spite of inflation averaging 17.5 per cent in the year under review, our operating expenses grew by a meagre 2.2 per cent – underscoring the strength of the cost control and efficiency measures we have put in place.”