Thomas Wyatt Nigeria plc, a company that manufactures stationary products, had full-year 2013 profit dampened by huge tax liability culminating in after tax loss of N6.89 million.
Based on the 2013 audited financial statement of the company released on the floor of the Nigerian Stock Exchange (NSE), showed profits were hit by a 1577.31 percent increase in tax liability to N20.48 million from N1.22 million the preceding year.
The bottomline also slowed as sales fell by 13.14 percent to N94.02 million as full year ended (March 2013), as against N122.34 million the preceding year.
Based on BusinessDay analysis, the company had a better management direct cost attributable projects as gross profit spiked by 126.72 percent to N36.82 million in the period under review as against N16.24 million the preceding year.
Additionally, gross profit margin moved to 39.16 percent in 2014 from 13.27 percent the preceding year, which shows management was able to produce each unit product at a lower cost.
Thomas Wyatt proved cost leader despite the operating challenges besetting most firms in Nigeria.
It was able to reduce cost of sales by 46.02 percent to N57.02 million in FY (March 2013), compared with N106.01 million as of FY (March 2012), while cost-of-sales margin plummeted to 60.83 percent in 2013 from 86.65 percent in 2012.
Operating expenses were down by 10.96 percent to N86.25 million in 2013, as against N96.87 million in 2012, while operating expense margin jumped to 91.73 percent in 2013, compared with 79.18 percent the preceding year.
The company as a result of it effective cost control mechanism reverted to a pre-tax profit of N13.59 million in FY 2013, compared with a loss position recorded the preceding year.
Current ratio, which measures the ability of a company to meet short-term obligation as at when due increased to 0.28x in 2013 from 0.25x last year – this however is lower than the 2.1x industry figure.
Bank overdraft reduced by 91.41 percent to N2.21 million in FY (March 2013), as against N43.47 million as of FY (March 2012).
Fixed assets turnover reduced to 19 times in the period under review compared with 31 times the preceding year, which means the company’s ability to deploy the use of assets in generating revenue dipped.
Total assets were up by 20.62 percent to N639.12 million in FY (March ended 2013), from N529.83 million the same period of the corresponding year (March 2012).
The company had debit balance of N320.96 million in its capital structure, which analysts say was caused by recurring after tax losses. This also resulted in a negative total equity of N39.41 million.
Thomas Wyatt’ share price closed trading at N0.79 on the floor of the NSE, while market capitalisation was N173.83 million.
BALA AUGIE
