The Initiates Plc (Nigeria) – Q3 2022 total revenue up 370% to NGN338.93M

By Published On: November 1st, 2022Categories: Corporate announcement
The Initiates Plc 2022 Interim Results For The Third Quarter

2022 THIRD QUARTER MANAGEMENT ACCOUNT.

EXECUTIVE SUMMARY: THIRD QUARTER (JULY – AUGUST 2022)

INTRODUCTION
Q3:

TIP reported a total revenue of NGN338.93M (2021: N69.47M) (Q3 Budget which M308.9 Million) represent over 370% and 7.78% increase over same period in 2021 and Q3 2022 budget. A gross Profit of N44.05 Million naira was reported for the quarter as against N15.8 Million showing a remarkable performance. However, a Net loss before tax of N40Million naira was reported due to the losses resulted by WMS from the 2 major contracts executed within the period

YEAR TO DATE (JAN- SEPTEMBER 2022) REPORT:

TIP posted a total revenue of NGN842.7M (2021: N178.25M) (YTD Budget of M5967.6) which represent over 300% and 36.1.2% increase as at September 2021 and what was budgeted for this period. A gross Profit of N219.19 Million naira was reported for the period showing an outstanding performance in comparison to same period in (2021 N27.05 Million). However, losses from the last 2 WMS contracts and the exchange loss of 54 Million from equipment importation eroded all the Net Profit before tax of N25.27 Million naira to give a negative balance of 29.419M at the end of the period as against the loss of N91 million reported as at 30th September 2021.

BALANCE SHEET
TIP Balance Sheet value shows a total asset of over NGN2 Billion as 30th September, 2022

    1. Trade Receivables: This stood at NGN624.81M as 30 September, 2022 and NGN74.75m receivable is above 90 days.
    2. Trade Payable: NGN418.996M is the Account Payable balance as at the close of business (COB) on the 30 September, 2022
    3. Measurement of Liquidity: TIP liquidity was adversely affected by the overall negative bottom line reported in the period under review. Also, the Company is still highly geared with Gearing Ratio conservatively standing at 1:1.8 as at 30 September, 2022 mainly due existing loan facility. The Management and Board are elated at the rise in turnover reported during this period and are more than willing to improve on the profits through rigorous strategies especially in this final quarter.

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