July 31, 2017
C&I Leasing Plc Records Revenue Growth

C&I Leasing Plc Records Revenue Growth of 32.3% To N11.5 Billion From N8.7 Billion And 248.1% Increase In Profit Before Tax To N614.9 Million via its unaudited results for the half year ended 30 June 2017.

Consolidated Income Statement

Revenue of N11.5 billion, up 32.3% year-on-year (June 2016: N8.7 billion)

Net operating income of N3.4 billion, up 33.1% year-on-year (June 2016: N2.6 billion)

Profit before tax of N614.9 million, an increase of 248.1% year-on-year (June 2016: N176.7 million)

Profit after tax of N580.0. million, up 298.9% year-on-year (June 2016: N145.4 million)

Basic earnings per share1 of 35.87 kobo, up 299.0% year-on-year (June 2016: 8.99 kobo)

Consolidated Statement of Financial Position

Total assets of N44.2 billion, up 18.5% year-on-year(June 2016:N37.3 billion)

Operating lease assets of N27.7 billion, up 33.2% year –on-year (June 2016 :N20.8 billion)

Key Ratios

EBITDA margin2 of 31.2% (June 2016: 27.2%)

Net profit margin3 of 5.0% (June 2016: 1.7%)

EBITDA/Interest expense of 2.0x (June 2016: 1.8x)

Return on equity4 (post tax) of 6.9% (June 2016: 2.0%)

Net Debt5/ EBITDA of 9.6x (June 2016: 11.5x)

Net Debt/Equity of 4.3x (June 2016: 3.2x)

Net Debt/Total Capitalisation of 0.79x (June 2016: 0.73x)

Total Debt/Total Capitalisation of 0.82x (June 2016: 0.77x)

Net Debt/Operating Profit of 59.9x (June 2016: 197.7x)

Asset turnover6 of 0.28 times compared to 0.26 times in June 2016

Capital adequacy ratio7 of 18.3% (June 2016: 23.2%) (CBN: 12.5%)

Operational Highlights

Marine Services remains strong and stable during the year as it commenced a contract for the provision of 4 new vessels to NLNG and has recently received its 80-ton bollard pull vessel, ‘MV Bello 2015’ for a SNEPCO contract. The marine unit recorded 85% utilization on its assets despite the industry related challenges in the Oil and Gas sector. C&I is also building three more boats which will be delivered next year.

Fleet Management continues to grow the business across the country, despite the high price of new vehicles. It is also using technology to improve its cost efficiency, especially in the maintenance of vehicles.

Personnel Outsourcing continues to record stable revenues and has expanded across several industries including Oil & Gas, Telecommunications, Banking, Manufacturing and Agriculture. The business unit is currently exploring diversification of its outsourcing business from purely Personnel Outsourcing to Business Process Outsourcing by developing core competencies in human resource management, direct sale/representation for clients and call centres.

Commenting on the results, the MD of C&I Leasing Plc, Mr. Andrew Otike-Odibi said:

“The strength in the diversity of our business is once again at play in our financial performance. Our three business lines namely, Marine, Fleet management and Outsourcing are gaining strength in their different markets with each contributing positively to the overall performance of the business. This is not without the difficulties faced in the operating environment with rising financing and operating costs coupled with continuous pressure on turnover.

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. Despite inflation averaging 17.2% in the period under review, our operating expenses grew by a meagre 2% – underscoring the strength of the cost control and efficiency measures we have put in place. Furthermore, demonstrating the benefits of diversification, our subsidiaries (Leasafric, Ghana and EPIC International FZE, United Arab Emirates) contributed 27% to the Group’s revenue for the period relative to 22% in 2016.

Our plan for the rest of the year includes improving on cost efficiency while growing market share in our areas of operation. We are therefore investing a lot in technology based solutions that will help improve operational efficiency in the business.

We are also exploring additional avenues to provide exceptional support services to our numerous clients in meeting their diverse business needs, whilst maintaining the high quality of our product offerings.

We remain optimistic about our growth prospects.