Indigenous cable manufacturing company, Cutix Plc has migrated from Second Tier to First Tier Market of the Nigerian Stock Exchange (NSE) and has posted N366.5 million Gross Profit.
Ajulu Uzodike, Chairman/Chief Executive Officer (CEO) of the of the company in his address at the ceremony disclosed that one of the reasons for taking Cutix Plc to the Stock Exchange was to help create a culture where good business practices about separation of ownership and management are followed, ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Â¦ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œso that the company would have a good chance of surviving the founder, founding owners and stakeholdersÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â he said.
According to Uzodike, there was a premature attempt to transit in 1992 which failed, but thereafter a committee comprising of six leading shareholders was set up to search for a new CEO who would takeover from the current one on November, 2008 to move the company forward.
However, financial documents of the 2007 annual reports made available to Proshare News/Investigations shows that turnover of the company increased from N714.1 million in 2006 to N1.064 million in 2007 representing a 99.85 percent increase.
Furthermore, Gross Profit also grew from N218.2 million in 2006 to N366.5 percent in 2007 indicating a 68 percent growth.
The financial document also revealed that Profit before Tax (PBT) also increased from N80.8 million in 2006 to N187.5 million in 2007 which represents a 132 percent increase.
While Profit after Tax (PAT), also went up from N54.3 million in 2006 to N121.6 in 2007 which is a 124 percent growth.
However, without prejudice to our analyst review of the 2007 financial figures of Cutix Plc, made available to Proshare News/Investigations, and financial figures for half year 2008 accounts, which shows during the period under review, that the companyÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s Gross Profit rose slightly from N195 million in 2007 to N218 million in 2008; which represents a 12 percent increase.
In the same vein, PBT of the company decreased slightly from N107 million in 2007 to N100 million in 2008 which indicates a -6.5 percent decrease, while PAT also decreased from N69.7 million in 2007 to N65.6 million in 2008 representing a -5.88 percent decrease all in the half year 2008 accounts.