C & I Leasing to Reconstruct Shares for Future Capital Raising

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Goddy Egene

C &I Leasing Plc has applied to reduce its issued and paid-up share capital from N808.505 million, which is 1,617,010,000 ordinary shares of 50 kobo each to N202,126, 250 share being 404,252,500 ordinary shares of 50 kobo each.

In notification to the Nigerian Stock Exchange (NSE), C & I Leasing Plc yesterday said the reduction would be achieved through the consolidation of every four ordinary shares currently held into one new share in the company. The share capital so reduced, it said, would be added to the company’s share premium account.

“The purpose of the reconstruction is to allow the company to have enough unissued shares to accommodate future plans to raise capital through the equity capital market. The additional capital will be used to finance the company’s expansion plan, extinguish some liabilities and enhance the company’s capital mix,” the company said.

According to the company, the qualification date for the share consolidation shall be Wednesday 12th December 2018 while the shares of the company will be placed on suspension from Thursday 13th December 2018 to Thursday 27th December 2018 to allow for the consolidation exercise. The shares of C & I Leasing Plc closed at N1.94 per share yesterday.

The company recorded improvement in its nine months results, growing profit after tax by 35 per cent. The unaudited results released yesterday showed gross earnings of N19.9 billion, up 15.6 per cent from N17.2 billion, while lease rental income rose to N13.9 billion, up by 17.5 per cent from N11.8 billion in 2017.

Personnel outsourcing income increased by 10.4 per cent to N5.0 billion, from N4.5 billion, bringing net operating income to N5.7 billion, up 8.6 per cent from N5.2 billion.

C & I Leasing Plc ended the period with profit before tax (PBT) of N1.3 billion, up 11.4 per cent from N1.2 billion. PAT jumped by 25 per cent to N1.2 billion, compared with N950 million in 2017.

Speaking on the results, the Managing Director/CEO of C & I Leasing Plc, Mr. Andrew Otike-Odibi said: “The Company recorded an increase of about 15.6% in revenue from N17.2 billion in the corresponding period of 2017 to N19.9 billion in 2018 and a stronger improvement in our profit after tax (up by 25 per cent from N0.95 billion in 2017 to N1.2 billion in 2018) while the group has continued to deliver a healthy performance despite the challenging operating environment. This result was achieved on the back of increased efficiency from all the business units as well as improvement in capacity utilisation of both marine and non-marine assets.”