C & I Leasing Nigeria Plc has posted N5.1 billion turnover in its 2010 operations, as against N4.6 billion recorded in 2009.The company’s profit after tax however, stood at N335 million, from N367.7 million in 2009.The shareholder’s has approved a dividend of two kobo per share for the financial year ended January 31, 2010.
Addressing shareholders during the company’s 19th yearly general meeting in Lagos, yesterday, the Chairman, Mr. Abdullahi Bello, told shareholders that the increase in turnover was occasioned by sustained growth in the company’s revenue generated through car rentals and outsourcing, while the drop in gross profit was due to the increase in internal cost and inflation, which affected the exchange rate during the period.He assured shareholders of improved performance in the next financial year, adding that the convertible bond floated by the company earlier in the year would help maximise the high interest expense of the company.
“The drop in gross was largely due to increase in interest cost and inflation, exercabated by the adverse exchange rate regime during the year. We concluded the issue of a convertible bond in January 2010, we expect this to help minimise our high interest expense, while we have made some investment sin our subsidiaries.”Bello explained that the company witnessed increased default date as well as high interest cost which led to a reduction in investment of the unit.He said that the maritime rental unit of the company also experienced operational problems due to increased militants’ activities in the Niger Delta region, which affected the asset utilisation.
He added that the company sold some of its equipment in order to minimise the negative impact of the idle assets on its operations.Bello disclosed that the company has concluded arrangement to issue a fixed rate redeemable bond of N10 billion in two series towards the end of the year.This, according to him, would enhance the expansion of the company’s operations and help “pay down on more expensive short term borrowings.”He said the company has also signed a contract for the provision of vessels for the Bonny terminal tanker handling and support activities with Shell Nigeria.
The contract, which according to him, entails the supply of three tug boats and three crew boats with potentials of expansion within a period of seven years.“Funding has been a major challenge in this industry and in the year 2009. The tasks of raising funds and retaining the existing credit lines are daunting. We plan to issue a fixed redeemable bond of N10 billion in two series later in the year.“This will deployed in the expansion of the company’s activities and those of its subsidiaries,” he assured.