RT Briscoe Nets N1.302bn 2022Q3 Loss, As Finance Costs Hit N2.592bn

Directors of RT Briscoe (Nigeria) Plc, on Friday published its unaudited financials for the third quarter ended September 30, 2022, reporting that despite the 98% revenue growth, loss before and after tax stood at N1.302bn, a marginal 49.8% improvement from the previous N1.642bn, due to the 18.7% rise in net financial costs from N1.831bn in the first nine months of 2021, to N2.594bn this year.

The 65-year old group, is primarily engaged in the sales and servicing of Toyota and Ford motor vehicles, technical equipment, including forklifts, industrial compressors, mining and drilling equipment and generating sets, facility management, property development and leasing of properties.

Revenue for the period rose from N5.844bn to N11.568bn, and continues to be driven by sales of motor vehicles and accessories, which contributed N9.65bn from the previous N4.135bn; followed by aftersales services and parts that fetched N767.509m, down from N1.044bn in the prior year. Industrial equipment raked in N743.097m, almost double the N390.75m of previous reporting period, just as property development and facility management that contributed N407.718m from N273.613m. Cost of sales jumped similarly from N4.624bn to N9.163bn, leaving a gross profit of N2.405bn, compared to the previous N1.22bn.

Other income was up 21% from N80.213m to N97.277m, comprising other sundry income that grew from N50.63m to N70.343m, and rental income which dropped to N26.935m from N29.583m. Selling and distribution expenses rose by 157% from N217.933m to N352.714m; just as administrative expenses fell to N856.969m from N893.406m; resulting in operating profit of N1.292bn, which was a 528% improvement when compared to the previous N189.148m in the corresponding period of last year.

A breakdown of the financial costs showed that interest on bank overdrafts and loans gulped N2.509bn from N1.81bn; followed from afar by the growth in interest paid on commercial papers from just N15.684m to N77.503m; while bank charges increased from N5.669m to N7.411m. Specifically, the company reported bank overdrafts totaling N17.951bn, up from N15.855bn; while the CPs seems to have been liquidated, just like the LPO finance facility and letters of credit, both of which amounted to N849.888m borrowings in the prior nine months.

The loss after tax translated to a loss per share of N1.11, down from N1.40 each in the nine months of 2021.

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