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C and I Leasing, a Nigerian shipping company, reported a 129% drop in after-tax profit for the period ended December 31, 2021, despite cutting staff costs.

The company’s gross revenue fell by 5.5% from 21.275 billion naira recorded in fiscal 2020 to 19.883 billion naira in 2021. Lease rental revenue also fell by 9.1% to reach N16.222 billion. Net rental income stood at N8.255 billion in 2021, down 14.3% from the N9.634 billion deposited in the corresponding period of 2020.

The company disclosed this in its unaudited financial statements published through the Nigerian Exchange Limited and obtained by king of investors.

Net outsourcing income also fell to N1.273 billion in the year under review from N1.602 billion in 2020. Depreciation expense increased to N4.291 billion while personnel expenses fell slightly by 6.1% to 1.289 billion naira.

C and I Leasing succeeded in reducing its operating expenses by 36.75% from N1.716 billion to N1.085 billion. This significant decline helped boost pre-tax profit by 2.1% to N484.9 million in 2021. See other highlights below.

C and I Leasing Key Financial Highlights for 2021:

▪ Total assets of N58.13 billion, up 3.74% year-to-date (December 2020: N56.1 billion)
▪ Finance cost of N4.6 billion, down 15.1% year-on-year (12M 2020: N5.4 billion)
▪ Equity of N13.77 billion, up 3.3% YTD (December 2020: N13.34 billion)
▪ Capital adequacy ratio of 21% (CBN requirement: 12.5%)

Commenting on the company’s performance, Ugoji Lenin Ugoji, the new CEO/MD, of the company, said, “On the economic outlook for the first quarter of 2022 and summary for the four quarters of 2021, with only about 2, 5% Nigerians and 10.1% The ripple effects of the COVID-19 pandemic on fully immunized Ghanaians are still being felt in both economies and, by extension, in most of the businesses where we have our operations domiciled. We have seen lackluster demand for some products coupled with an increase in the cost of goods.

“It has affected the cash flow of many companies. However, Nigeria’s and Ghana’s GDP growth rates are forecast to be 2.7% and 6.17% respectively for 2022 and we see increased demand for products as the two economies continue to open up and a increased recovery in oil demand”.

“Additionally, inflationary pressures as well as exchange rate fluctuations are issues that the company continues to face. However, measures are in place to ensure that we hedge against such uncertainties and increased attention is now being given to non-asset-based revenue options to create a counterbalance to low asset utilization caused by lower demand for assets Despite the challenges, we remained focused on cost optimization, improvement initiatives business processes and ensuring efficiency in managing our sales performance.

“We are also actively working to digitize our value offerings in the fleet management, outsourcing and marine sectors with increased focus on our emerging e-business platforms. As you may know, people empower technology, technology empowers innovation, the business landscape changes, and this cycle continues, yielding positive long-term results.”

“We remain resilient; with the increase in vaccine deployments, we hope there will be a steady economic recovery, although fault lines such as new waves and new variants of the virus pose challenges for the outlook. In a context of exceptional uncertainty, the global economy is expected to grow by 4.4% in 2022, in particular the economy of sub-Saharan Africa is expected to grow by 3.7% in 2022, but we are confident that our business is fundamentally sound to withstand any future challenge to improved performance”.

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