Presco plc

[xplicitiyke]

Originally Posted by xplicitiyke

My Ogas, why are some of the coys declaring 2011 FYE results putting their payments dates 3 to 5(as is d case with presco) months after declaration? I think 2 months is a fair time for whatever collation that needs to be done and I see this as inefficiency on the part of management. Abi dem no get cash?

Pls what's the gurus view on my comment/question above? Is there any accounting reason for a coy to put dividend payment date 3 months and above from the date their FYE results are released?

[dr.abrahamb]

Originally Posted by xplicitiyke

My Ogas, why are some of the coys declaring 2011 FYE results putting their payments dates 3 to 5(as is d case with presco) months after declaration? I think 2 months is a fair time for whatever collation that needs to be done and I see this as inefficiency on the part of management. Abi dem no get cash?

You dey ask because you suspect so abi? We don analyze their cashflow before. Go back on this thread and see. Heavy investments in fixed assets with possible borrowing on the long-term to pay dividends...its there on the thread sir.

But the dividend is good no matter the delay. They just need a little time to liquidate their trade debtors. The investments in fixed assets is better; assuming the relationship between working capital and turnover is sustained this way.

[xplicitiyke]

Originally Posted by dr.abrahamb

You dey ask because you suspect so abi? We don analyze their cashflow before. Go back on this thread and see. Heavy investments in fixed assets with possible borrowing on the long-term to pay dividends...its there on the thread sir.

But the dividend is good no matter the delay. They just need a little time to liquidate their trade debtors. The investments in fixed assets is better; assuming the relationship between working capital and turnover is sustained this way.

Thanks for the explanantion, Doc.

[emmanuel ewumi]

Originally Posted by hispy99

Do you know how they got the seat? I hope it was not like the case of 7UP where they were the underwriters of a rights issue that was not fully subscribed so they ended up being stuck with a huge chunk of shares.

That was about 4 years ago when Mr. Yinka Sanni represented the interest of Stanbic IBTC Asset mgt on the board, because they were a major shareholder then, i guess they have sold their holdings because they are no longer a major shareholder in the company. And then the stock was selling for between N2.00 and N2.50k in 2008.
But the chairman of Stanbic IBTC, Mr. Atedo Peterside is a director in Presco with about 18 million direct shareholding of shares in the company.

[cashrules]

PRESCO PLC
May 11th, 2012
Unaudited Results (March, 2012, Q1)
Statement of Comprehensive Income
Revenue over 31/03/2012 N2.214b 31/03/2011 N1.501b Audited 11 N8.536b
Cost of Sales 12 (N867.446m) 11 (N674.431m) Audited 11 (N4.643b)
Selling & Admin Expenses 12 (N335.542m) 11 (N245.162m) Audited 11 (N1.483b)
Gains on Biological Assets 12 N1.270b 11 N120.446m Audited 11 N481.782m
Finance Expenses 12 (N67.866m) 11 (N83.773m) Audited 11 (N340.415m)
Other Operating Income 12 N27.196m 11 N112.398m Audited 11 N181.994m
Profit before Tax 12 N2.241b 11 N731.249m Audited 11 N2.732b
Taxation 12 (N614.097m) 11 (N163.708m) Audited 11 (N927.879m)
Profit after Tax 12 N1.627b 11 N567.540m Audited 11 N1.804b
Other Comprehensive Income 12 Nil 11 (N4.605m) Audited 11 (N18.419m)
Total Comprehensive Income for the Period 12 N1.627b 11 N562.936m Audited 11 N1.785b

Statement of Financial Position
Plant, Property & Equipment 31-03-12 N5.886b 31-12-11 N5.409b
Biological Assets 12 N17.698b 11 N16.418b
Inventories 12 N1.501b 11 N1.847b
Trade Receivables 12 N880.922m 11 N956.167m
Cash and Bank Balances 12 N666.599m 11 N28.959m
Other Debit Balances 12 N180.853m 11 N166.173
Trade Payables 12 N2.167b 11 N1.508b
Short term Borrowings 12 Nil 11 Nil Other
Credit Balances 12 N9.424b 11 N8.733b
Working Capital 12 (N112.666m) 11 N275.216m
Net Assets 12 N15.213b 11 N14.585b


Abeg who fit arrange 1million units of this stock off the floor.....these guys are really doing wonders at that farm o!!

[wanaj0]

Originally Posted by cashrules

PRESCO PLC
May 11th, 2012
Unaudited Results (March, 2012, Q1)
Statement of Comprehensive Income
Revenue over 31/03/2012 N2.214b 31/03/2011 N1.501b Audited 11 N8.536b
Cost of Sales 12 (N867.446m) 11 (N674.431m) Audited 11 (N4.643b)
Selling & Admin Expenses 12 (N335.542m) 11 (N245.162m) Audited 11 (N1.483b)
Gains on Biological Assets 12 N1.270b 11 N120.446m Audited 11 N481.782m
Finance Expenses 12 (N67.866m) 11 (N83.773m) Audited 11 (N340.415m)
Other Operating Income 12 N27.196m 11 N112.398m Audited 11 N181.994m
Profit before Tax 12 N2.241b 11 N731.249m Audited 11 N2.732b
Taxation 12 (N614.097m) 11 (N163.708m) Audited 11 (N927.879m)
Profit after Tax 12 N1.627b 11 N567.540m Audited 11 N1.804b
Other Comprehensive Income 12 Nil 11 (N4.605m) Audited 11 (N18.419m)
Total Comprehensive Income for the Period 12 N1.627b 11 N562.936m Audited 11 N1.785b

Statement of Financial Position
Plant, Property & Equipment 31-03-12 N5.886b 31-12-11 N5.409b
Biological Assets 12 N17.698b 11 N16.418b
Inventories 12 N1.501b 11 N1.847b
Trade Receivables 12 N880.922m 11 N956.167m
Cash and Bank Balances 12 N666.599m 11 N28.959m
Other Debit Balances 12 N180.853m 11 N166.173
Trade Payables 12 N2.167b 11 N1.508b
Short term Borrowings 12 Nil 11 Nil Other
Credit Balances 12 N9.424b 11 N8.733b
Working Capital 12 (N112.666m) 11 N275.216m
Net Assets 12 N15.213b 11 N14.585b


Abeg who fit arrange 1million units of this stock off the floor.....these guys are really doing wonders at that farm o!!

What is Gains on Biological Assets? That basically skewed the profit figure. This should be treated as extra ordinary income. Discounting for that, the result is 'good' but not fantastic.

Looking to buy more of this though. They may be the Sime Darby of Nigeria soon.

[nosa2]

Originally Posted by cashrules

PRESCO PLC
May 11th, 2012
Unaudited Results (March, 2012, Q1)
Statement of Comprehensive Income
Revenue over 31/03/2012 N2.214b 31/03/2011 N1.501b Audited 11 N8.536b
Cost of Sales 12 (N867.446m) 11 (N674.431m) Audited 11 (N4.643b)
Selling & Admin Expenses 12 (N335.542m) 11 (N245.162m) Audited 11 (N1.483b)
Gains on Biological Assets 12 N1.270b 11 N120.446m Audited 11 N481.782m
Finance Expenses 12 (N67.866m) 11 (N83.773m) Audited 11 (N340.415m)
Other Operating Income 12 N27.196m 11 N112.398m Audited 11 N181.994m
Profit before Tax 12 N2.241b 11 N731.249m Audited 11 N2.732b
Taxation 12 (N614.097m) 11 (N163.708m) Audited 11 (N927.879m)
Profit after Tax 12 N1.627b 11 N567.540m Audited 11 N1.804b
Other Comprehensive Income 12 Nil 11 (N4.605m) Audited 11 (N18.419m)
Total Comprehensive Income for the Period 12 N1.627b 11 N562.936m Audited 11 N1.785b

Statement of Financial Position
Plant, Property & Equipment 31-03-12 N5.886b 31-12-11 N5.409b
Biological Assets 12 N17.698b 11 N16.418b
Inventories 12 N1.501b 11 N1.847b
Trade Receivables 12 N880.922m 11 N956.167m
Cash and Bank Balances 12 N666.599m 11 N28.959m
Other Debit Balances 12 N180.853m 11 N166.173
Trade Payables 12 N2.167b 11 N1.508b
Short term Borrowings 12 Nil 11 Nil Other
Credit Balances 12 N9.424b 11 N8.733b
Working Capital 12 (N112.666m) 11 N275.216m
Net Assets 12 N15.213b 11 N14.585b


Abeg who fit arrange 1million units of this stock off the floor.....these guys are really doing wonders at that farm o!!

I honestly wasn't expecting this stock to do well.

[wanaj0]

Originally Posted by nosa2

I honestly wasn't expecting this stock to do well.

Why not????

[nosa2]

Originally Posted by wanaj0

Why not????

Price of palm oil was down for most of the first quarter compared to last year thou it's currently up 12% YTD and trading at last year's levels

[wanaj0]

Originally Posted by nosa2

Price of palm oil was down for most of the first quarter compared to last year thou it's currently up 12% YTD and trading at last year's levels

They are not exporting so don't think they are that affected by price in the International market. Additionally, they have invested in processing so adding value before selling hence improving margins. With cheap labour they should better able to compete.

Provision of own energy has helped them in managing opex going forward. Okomu may be better because of exposure to Rubber but Rubber price is more volatile!

[nosa2]

Originally Posted by wanaj0

They are not exporting so don't think they are that affected by price in the International market. Additionally, they have invested in processing so adding value before selling hence improving margins. With cheap labour they should better able to compete.

Provision of own energy has helped them in managing opex going forward. Okomu may be better because of exposure to Rubber but Rubber price is more volatile!

Actually they are affected by international prices because we import palm kernel oil and (I think) palm oil, and thou there are government policies against the importation of PKO they become less effective the wider margins get.

[wanaj0]

Originally Posted by nosa2

Actually they are affected by international prices because we import palm kernel oil and (I think) palm oil, and thou there are government policies against the importation of PKO they become less effective the wider margins get.

What we can import is refine palm oil (carotine) while what they focus on is 'special' palm oil.

While the commodity price may fall on the international market, the labour cost allows them to be able to compete with the imported product. With them generating their own power, they are better positioned now than before. Only issue for them now is weather.

I hope the land holding structure in Nigeria can allow for development of big estates. There is huge money to be made in this sector.

Oil plantation companies in Malaysia are now expanding into Indonesia big time because of scarcity of land. 60,000 hectare farms are not unusual.