R T Briscoe arouses investors confidence
March 24th, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
R T Briscoe Plc is enjoying the confidence of investors in the market as its share value has continued to receive a grate appreciation on the Nigerian Stock Exchange (NSE) since the beginning of the year. The stock which opened the year at the value of N14.25 per share has acheived a118 per cent rise.
The company which was listed in the Automobile and Tyre Sub-sector of the NSE in 1974 is at present celebrating 50-year operations in the country as it was incorporated in 1957.
The company’s impressive performance in 2005 coupled with the steps being taken by the board to boosts its earnings, are drawing discerning investors to the stock. 2005 was actually a good one for investors in the company that has become a leading player in the automobile and tyre sub-sector of the stock market. The year would have been one of its best in the recent times, but for the stock inadequacies due to short supplies from Toyota Motor Corporation of Japan.
But despite the hindrance, Chief Clement Olowokande, its chairman told appreciative investors at its annual general meeting last year that the company grew its turnover in the accounting year ended December 31, 2005 by 38 per cent. From turnover of N5.582 billion in 2004, it made N7.726 billion in 2005. Its profit after tax increased from N155.4 million in 2004 to N199.7 million in 2005 and that was some 28 per cent growth.
The company has remained a leader in its sub-sector in the stock market. For example, it has won the Nigerian Stock Exchange, (NSE) Annual President’s Award ten times in its automobile and tyre sub-sector. It has won it consistently since 2002.
Among its subsidiaries, Briscoe Motors remains its cash cow for some time. It made N7.2 billion turnover in 2005 from N5.2 billion in 2004. Toyota dealership, its chairman said, accounted mainly for the result. “Despite stiff competition, vehicles’ sale has continued to improve, strengthened by effective after sales service at the company’s motor service workshop”, Olowokande said at the meeting.
As part of efforts at improving the fortune of the company, Briscoe Ford came into being in 2005. The company has been appointed a dealer of the Ford range of motor vehicles. The chairman told shareholders last year that the brand was making a promising re-entry into the Nigerian market and many investment analysts believe with the view of its chairman that the company’s efforts are already yielding positive results as its interim results reveal.
The price was adjusted on 20th March, 2007 for dividend payment of N1.00 and a bonus of 1 for 2.
(No Ratings Yet)
Loading ...