Cutix Records N14.6m Profit in 9 Months
By Uche Obike
Cutix Plc has announced profit after tax of N14.6 million for the third quarter ended January 31, 2004, compared with N12.7 million in 2003.
The company's unaudited financial results just released to the market operators showed a turnover of N322.6 million as against N231.1 million in the comparable period of 2003.
Analysts believe that this improved results have raised investors' hope for a better performance by the end of the financial year.
The Chairman of company, Engineer Ajulu Uzodike last explained that the flat performance recorded by the company in 2003 was as a result of the debt of about N30 million owed by National Electric Power Authority (NEPA) for over a year and half.
Uzodike said that the company's ability to carry out its capital plans was also hampered by the NEPA's debt.
Reviewing the performance of the company for the financial year ended April 30, 2003, Uzodike said that it was not as good as predicted the previous year.
He further disclosed that although no new business was obtained from the NEPA in 2003, the company received a significant order from the Federal Ministry of Power and Steel (FMP&S;).
He decried the current situation where the FMP&S; like NEPA could not keep to the agreed early payment terms.
"This late payment situation is unlike our previous business with the FMP&S;," said Uzodike.
He added that the company borrowed N30 million loan from Union Bank of Nigeria Plc (UBN) to finance a substantial increase of its extrusion capacity as it could increase its capacity.
He explained further that the intermediate wire drawing machine and other ancillary equipment required to achieve part of its short term expansion objective shall be purchased as soon as the NEPA and FMP&S; debts are recovered.
"We shall be more conservative in our expansion plans so as to continue to survive the debts usually owed for long periods by government and her parastatals when business is done with them. The armoured cable project though stretched out is still in our short term focus," said the chairman.
He emphasised on the need to increase Cutix working capital so as to be able to exploit new extrusion capacity to be added soon.
He noted further that "...we need to keep a sizeable part of our earnings in the business."
The company declared a dividend of 10 kobo per share, as was earned the previous year.
He assured that the future of Cutix in Nigeria looked bright as the demand for its product was on the increase.
The company during the period recorded a turnover decline by about three per cent from N387.2 million in 2002 to N376.034 million in 2003, while profit before tax increased slightly from N43.442 million in 2002 to N43.569 million in 2003.
It also recorded a decline in taxation from N16.741 million in 2002 to N16.318 million in 2003, while profit after tax appreciated from N26.701 million in 2002 to N27.256 million in 2003.
Its shareholders' funds also rose from N86.107 million in 2002 to N100.153 million in 2003, while earnings per share (adjusted) dipped marginally from 21.42 kobo in 2002 to 20.63 kobo in 2003.
|
