‘Sustainable profit, cash flow key to optimal financial performance’

For any business to reach its opti- mal financial per- formance, it must achieve sustainable growth in profit, strong cash flow and optimal capital, which has to be measured and managed over time. This was the position of Henry Machame, a finan- cial expert and consultant, during the CEO Business Strategy Session organised by FROT Group. Machame said if a busi- ness was profitably sustain-
able, sales growth and market share will increase and top- bottom-line share and tax will be efficient, saying that strong cash flow will create consistent cash generation, adequate working capital and low credit repayment bill. Machame further drew the CEOs’ attention to the fact that optimal capital will bring about optimal capital structure and a well-bal- anced asset structure, which will at the long run, sustain the business. He observed that CEOs need to define their busi- ness principles on how to
make money, and in doing this, information such as records and accounts on the business must be kept and reviewed, as this was key to growing any business. According to him, “infor- mation should drive what CEOs do and not experi- ence. Experienced people always want to follow the statues quo and are often left behind on what is hap- pening. Your experience is not enough to take your business to the next level.” Today, most business owners drive performance without being financially focused, he said, adding that businesses should be driven to a point where they have a
Terminal operator bemoans inconsistent policies at ports Rigo Nazzari, gen- eral manager, Five Star Logistics Limited, yester- day, said incon- sistent government policies at ports had been having adverse effects on opera- tions of the terminal, as the Nigerian Shippers’ Council (NSC) unveiled its plan to audit the operations of pri- vate terminal operators to attain operational efficiency. Nazzari said this when Has- san Bello, executive secretary, Nigerian Shippers’ Council (NSC), paid a courtesy visit to the terminal at the Roll On/ Roll Off (RORO) Port in Lagos. “The auto policy is affect- ing our terminal. The auto policy has hindered our op- erations. We are recording low activities in our terminal as a result of the unstable policy. We urge you to assist in conveying our message to the government,’’ Nazzari said. He said the management of the terminal would con- tinue to partner Nigeria as the largest business eco- nomic avenue in West Af- rica, saying “we are on the right path to prosperity but our concern is efficient ac- cess roads to the ports.’’ In his response, Hassan Bello said there was need for policy consistency so that investments in the country would flourish, saying govern- ment would come with mas- sive plan by bringing more infrastructure to the terminal. “NSC has taken steps to meet with the Customs ser- vice, especially in the area of intercepting containers which had already been cleared from the port,’’ Bello said. He said there were plans to introduce advanced cargo information system at the ports for monitoring cargo movements through com- puter networking, saying the council was ready to collabo- rate with shippers from Niger Republic to ensure that they import their vehicles through Nigerian ports. However, Bello said dur- ing a courtesy visit to Ports and Cargo Handling Servic- es Limited, the port opera- tions arm of the Sifax Group, operating in terminal `C’ of the Tin-Can Island port, Lagos, among the few ter- minal operators granted the concession to run ports in Nigeria, that the idea of au- diting the terminal operators was meant to ascertain their equipment and find out the challenges facing them. “There is need to cooper- ate with the NSC having been gazetted as the commercial regulator. It is important to transform the port and make it the hub of the West Africa sub-region,’’ he said. The NSC chief said there was the need for modern shipping practice, saying the council was ready to listen to complaints from shippers and convey their requests to the Federal Government, noting that the council preferred continuous dialogue by look- ing at those factors affecting cargo dwell-time at the port. “Government has the responsibility to create a conducive atmosphere for terminal operators to op- erate to attain an equilib- rium in port operation, ‘’ the executive secretary said, but, however, advised the terminal operators to ex- tend their operations to the hinterlands, adding that the Kaduna Inland Container Depot had been gazetted. In his response John Jen- kins, managing director, Port and Cargo Handling Services, commended the council for its good policies, and said the council’s policy had given terminal opera- tors the hope to remain in operations in Nigeria in spite of the inability to have con- stant power supply.
succession plan, a situation where ownership can be transferred even if the busi- ness owners are no longer alive to run such businesses. Frank Momoh, president, FROT Group of Companies Limited, who said FROT Group was a holding compa- ny with about six subsidiary companies – Construction, Retail, Telecomm, Energy and Health sectors, noted that FROT Group had always recognised the need for en- trepreneurs and business owners to be educated, so as to have a sustainable econo- my, noting that a successful business was one that can keep staff thereby making the economy buoyant.

IFEOMA OKEKE