C and I Leasing Plans Capital Raise In H2 2020

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Sunday September 06, 2020 / 08:45AM / C & I Leasing/Header Image Credit: C & I Leasing


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C & I Leasing, a fleet management business, plans to raise a corporate bond in H2 2020 to finance its operations and support its business sustainability.

 

The capital raise is part of a strategy by the company to cover its forward plans between 2020 and 2024 designed to improve, operations and cost efficiency

 

The company plans to raise capital through a fixed income issue and will be working towards creating new businesses from the array of opportunities that can come out of the coronavirus pandemic.

 

The Company also wants to maintain a minimum capital adequacy ratio of 12.5% alongside cost optimization initiatives, complemented by supply chain improvements.

 

Financial Highlights of C&I Leasing's H2 2020 Result :

  • Gross Earnings: N15.3bn  from N16.3bn in H1, 2019 (-5.9%)
  • Total Assets: N59.5bn from N57.5bn in FY, 2019 ( +5.9%)
  • Shareholder's Fund: N14.8bn from N37bn in FY,2019 (-25.4%)
  • Return on Equity: 3.6% from 6.8% in FY, 2019 (320bps)
  • Cost to Income Ratio: 42.8% from 52.1% in H1, 2019 (160bps)
  • Total Debt: N36.9bn from N37bn in FY, 2019 (-0.27%)

 

The report further revealed the following;

  • Gross earnings of N15.3 billion, down by -5.9% y-o-y (H1 2019: N16.3 billion) this is on the back of COVID-19 and the slide in oil price as most clients are requesting price reduction in services provided by the Company, especially the International Oil & Gas Companies and local logistics and outsourcing companies, rental income.


  • Net operating income of N3.8 billion, down by -18.5% y-o-y (H1 2019: N4.6 billion) underscoring the growth in gross earnings across the various business units.


  • Profit after tax of N268.0 million, down by -69.1% y-o-y (H1 2019: N866.9 million)


  • Basic earnings per share  of N0.36 kobo in H1 2019 y-o-y (H1 2019: N2.14kobo)

  • Marine business achieved 76.0% vessel utilization rate in H1 2019 (H1 2019: 92.0 %)

  • Year-to-date (YTD) growth in total assets of +5.9% to N59.5 billion as at H1 2020 as against N56.2 billion in FY 2019, was largely driven by growth in cash and balances with banks due to proceeds from rights issue. operating lease asset, other assets and cash & balances with the bank.

 

Total assets was largely driven by growth in cash and balances with banks due to proceeds from the company's rights issue, operating lease asset, other assets and cash & balances with the bank.


Growth in shareholders' fund largely due to share premium & share capital.


Growth in total liabilities driven by increased issuance of commercial notes and other payables. Borrowings was limited H1 as a result of the pandemic in an attempt to understand the new order of business.

 

According to the Managing Director/CEO ,Mr. Andrew Otike Odibi, the focus of C&I Leasing will be to reduce operating expense growth below inflation rate in the country, and explore opportunities for growth to improve customer visibility.

 

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