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C&I Leasing’s half-year profit hits lowest in 7years on income decline

One of Nigeria’s notable maritime companies, C&I Leasing Group, has reported its lowest half-year profit in seven years in the first half of 2021 as income and non-income from its leasing business declined.

The profit after tax of the company was down by 69.38 percent to N113 million in the six months to June 2021 from N369 million reported in the corresponding period of 2014. That is a drop of 57.84 percent when compared to the N268.04 million in 2020.

The performance reported by the group company was on the back of a combined 54.66 percent drop in both lease rental income and net tracking income in the review period.

Lease rental income was down 17.3 percent to N7.79 billion in June 2021 from N9.42 billion in the corresponding period of the previous year.

Read also: FirstBank wins Private Bank of the Year 2021 Award by Global Finance

The net tracking income on the other hand declined 37.36 percent in the review period to N38.87 million in the first six months of 2021 from N62.05 million.

The Holdings earnings per share was, therefore, down 63.89 percent in the review period to N13 in 2021 from N36 in 2020.

Meanwhile, C&I Leasing recently announced that Peace Mass Transit has purchased 313,326,316 units of the Neoma Africa Fund L.L.C. (formerly Aureos Africa Fund, L.L.C.) unsecured variable coupon redeemable convertible loan stock in registered units of N4.75 each or $ equivalent in C&I Leasing Plc.

When fully converted, the loan stock will result in the issuance of 987,500,000 (Nine Hundred and Eighty-Seven Million and Five Hundred Thousand) Ordinary Shares of the Company.

The Company, in the issued statement available on the NSE, argued that: “the transaction will strengthen the capital base of The Company and improve the clarity of the capital structure.”

The Company also notes that: “the acquisition is highly beneficial to the company as the need for a possible redemption of the Notes, with the company’s cash resources, has been eliminated.”

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