By Goddy Egene
C&I Leasing Plc has announced a delay in publishing its audited financial statement for the year ended December 31, 2019. In a notification to the Nigerian Stock Exchange (NSE), C & I Leasing said the delay was, “occasioned by the nationwide lag in business activities arising from the lockdown; an aftermath of the Covid-19 pandemic.”
“However, the financial results are currently with our primary regulator, the Central Bank of Nigeria (CBN), and we hope to get the requisite approval to publish before 29thJune2020,” the company added.
In its unaudited results for 2019, 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.
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 would result in stronger earnings and cash flows and ultimately improve investment returns.
According to him, the board has laid down a solid foundation for growth, expansion and diversification, which is already yielding results.
“We remain consistent in improving the overall wellbeing of the company with initiatives that makes us leaders within our market space. We plan to consolidate the progress made in the previous years by delivering a strong and sustainable performance that enhances optimal returns to shareholders,” Okolo said.