C & I Leasing Records Improved Earnings, N1.7bn Profit after Tax

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Goddy Egene

C & I Leasing Plc has reported improved results for the year ended December 31, 2019, raising investors’ hope of receiving higher dividend for the year. According to the unaudited results, C & I Leasing posted gross earnings of N35.987 billion in 2019, showing an increase of 29 per cent from N27.815 billion recorded in 2018. Net leasing income grew by 34 per cent from N8.782 billion to N11.809 billion in 2019, while net outsourcing income rose from N832 million to N1.041 billion. Financing cost remained high, rising by 19 per cent from N4.728 billion to N5.650 billion in 2019.

The company ended the year with profit before tax of N1.863 billion up from N1.413 billion N1.169 billion in 2018, while profit after tax printed at N1.747 billion, indicating an increase of 32 per cent from N1.169 billion in 2018. A corporate action is expected when the company would come up with the audited accounts.

Some market operators said the cost of financing would likely reduce in the current year considering the fact that C & I Leasing made a rights issue to raise fresh capital from existing shareholders late last year. The outcome of the issue is being expected.

C & I Leasing made a rights issue of 539,003,333 ordinary shares of N0.50 each at N6.00 per share to raise about N3.234 billion.

According to the company, the funds would be used to finance business expansion(29.17 per cent); refinancing of loans (58.34 per cent); and investment in working capital (9.73 per cent).

The Chairman of C & I Leasing Plc, Chief Chukwuma Okolo had told the shareholders that as they look ahead, the board and management of the company have full confidence that the rights issue will result in stronger earnings and cash flows and ultimately improve investment returns.