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C&I Leasing, a listed support and logistics company, has announced its highest bottom line figure in 5 years driven by stronger earnings in the first quarter of 2019.
Profit after tax increased by 6.82 percent in the first three months to March 2019 to print N398.46 million compared to N373 million recorded in the same period a year ago. Gross earnings surged 21 percent to N7.81 billion in the quarter, its highest gross earnings in 5 years.
The support and logistics company has consistently grown revenue year-on-year in the first quarters of the last three years since profit dipped 56 percent from N219.7 million posted in 2015.
C & I Leasing provides transportation logistics solutions in the form of car and marine rental, fleet management as well as human resource solutions. Its support services are provided along three business lines; fleet management, personnel outsourcing and marine services.
In Q1 2019, net lease rental income rose some 26 percent to N2.96 billion owing to a 26 percent increase in lease rental income, from N4.37 billion in Q1 2018 to N5.51 billion, although lease expense rose by the same magnitude to N2.55 billion in the review period.
Outsourcing income improved by 25.75 percent from N 1.63 billion in Q1 2018 to N2.1 billion Q1 2019. Outsourcing expense increased by 27 percent to N1.85 billion with Net outsourcing income amounting to N202.83 million, 15 percent over Q1 2018 figures.
Similarly C&I leasing was able to grow revenue from Tracking segment, with a 59 percent increase in net tracking income which hit N33.22 million in Q1 2019 from N20.89 million in the equivalent quarter of 2018.
The increase was fuelled by a 35 percent rise in income from Tracking while corresponding expenses increased by 7 percent in the period.
C&I’s interest income ballooned by 1000 percent as its bank deposits earned an interest of N12 million in Q1 2019, as against N53,000 in Q1 2018. Other operating income declined by 81.46 percent and income from joint venture appreciated by 44.67 percent.
The support & logistics company faced higher finance cost in the quarter which rose by 16 percent in the quarter but had 70 percent less impairment charges. personal, depreciation and other expenses grew in the period.
As a result, profit before tax rose 7.2 percent to N435 million in the first quarter of 2019, a 7 percent increase from N406 million in the same quarter of the previous year. Income tax rose 11.68 percent to pare profit to N398.46 million, the most realised by C&I leasing in the last 5 years.
Consequently, earnings per share increased to 97 kobo in Q1 2019 from 23 kobo in Q1 2018.
Shares of C&I leasing closed at N7.20 per share on Friday, the same level it has remained at since the April 18 when it dropped from N7.99 per share.
The company’s share has been affected by a share reconstruction exercise which was completed earlier in the year.
The exercise was aimed at consolidating four ordinary shares of 50 kobo each into one ordinary share of 50 kobo each to give C&I more room to raise equity in the future. However, the exercise affected the illiquidity of C&I leasing stock