For shareholders of the construction giant,
The dividend payment formed part of the issue discussed at an investors' forum in
Rise in Turnover The financial summary prepared by the company's managing director, Mr.
Contracts The shareholders also wanted to know how the company's management is addressing the security challenges in the north on Julius Berger's activities. Kollermann reassured the company's stakeholders that apart from
Competition On the challenge posed by the presence of the various Chinese construction companies in
And responding to the enquiry of a shareholder activist, Mr.
Profitability The company showed its profitability as it recorded a 31 per cent increase in profit before tax from N12.34 billion to N16.22 billion in the current period as a result of the increase in profitability of the subsidiaries. This, according to Goetsch report, confirms the group's efficient management of investments and assets which the shareholders have entrusted in their custody to generate a reasonable level of profit. The profit margin increased from 6.1 per cent to 7.6 per cent.
According to the presentation, despite the substantial increase in profit before tax, profit after tax slightly increased by two per cent from N8.26 billion in the prior year to N8.43 billion in the current year. "This under proportional increase was as a result of significant increase in deferred taxation in the period due to the huge investment and an additional assessment arising from a tax audit conducted by Federal Inland Revenue Service," the company said, adding that retained earnings increased by 37 per cent to N18.86 billion in the period.
In the same vein, shareholders' fund rose by more than 39 per cent from N15.14 billion to N21.03 billion. It was however pointed out that the figure would be adjusted for the proposed dividend for the period once approved at the Annual General Meeting. The fund had been consistently increasing and indicates that the group's assets are sufficient to repay the liabilities.
Overdraft The company explained that the increase in interest expense from N2.7 billion to N3.0 billion in the year resulted from overdraft facilities which the group had to embark upon due to delay in receipt of payments from clients during the year. A term loan in euro with a low interest rate was obtained from
Addressing the various shareholders associations at the forum, the company's financial director explained that the company recorded an increase in its taxation which resulted from the deferred tax charge of N2.21 billion (because of the significant investment in property, plant and equipment) and an additional tax assessment of N863 million arising from an audit conducted by the Federal Inland Revenue Service.
Subsidiaries Today, subsidiaries of
Kollerman disclosed that the "ownership structure of investments in the company's subsidiaries remains the same except for an additional interest of 20 per cent acquired in Abumet increasing the company stake to 90 per cent. More so, the capital base of Julius Berger Medical Services was increased to N500 million,
Another interesting issue to the shareholders is the provision for doubtful debts, which increased by only 23 per cent in the year. The financial director explained that margin signified the ageing of existing debts further considered as doubtful, adding that management is however proactive in the recovery of payments, especially debts that are overdue. "An age analysis of debtors is carried out by management on a periodic basis and efforts are geared towards recovery of all existing debts in addition to a prudent selection of clients or contracts to be executed based on the liquidity analysis of the existing and prospective customers.
Shareholders were told that the company advances, which represent advance receipts from clients for various contracts including contracts entered into in prior periods, amounted to N107.9 billion during the period. Kollerman explained that the major client from whom the company had advances as at
Meanwhile, cash receipts from customers recorded a significant decrease of 26 per cent from the prior year figure to N167 billion. Consequently, cash paid to suppliers and employees decreased in a proportionate ratio by 22 per cent to N150 billion against N192 billion in the 2012 financial year. The development naturally pushed down the cost of sales margin by two per cent while the expenses to sale ratio slightly decreased by one per cent.
Investment in Equipment Also during the period, the group invested the sum of N22.9 billion in equipment in the period against the sum of N15.1 billion in 2012. There had been no deviation from the budgeted amount on fixed asset investment in the period. Julius Berger also received an inflow from the sale of the Federal Government bond issued in 2012, thereby generating N4.1 billion.
Most Popular Stories
- Illegal Immigration Near Historic Low, Despite What You May Have Heard
- Small-Business Loans Fueling Economic Growth
- Gasoline Costs Drive Consumer Price Increases
- Saudi Arabia Will Open Stock Market to Foreigners
- Ford: New F-150 Is No Lightweight
- Tesco Head Steps Down After Profit Warning
- Durbin Drubs Walgreen for Possible Tax Dodge
- Russians Fed Steady Diet of Conspiracy Theories
- Want a Job? Try Minneapolis
- Comic-Con Offers Toy Designers a Chance to Go Wild