C & I Leasing Overcomes Challenging Environment, Posts N580m Profit

Shareholders of C& I Leasing Plc should expect improved returns at the end of the current financial year as the company has reported impressive results for the six months ended June 30, 2017. Revenue grew by 32.3 per cent to N11.5 billion in 2017, from N8.7 billion in the corresponding period of 2016. Net operating income of N3.4 billion went up by 33.1 per cent to N3.4 billion as against N2.6 billion. But profit before tax grew faster, jumping by 248 per cent from N176 million to N614.9 million, while profit after tax soared by 298 per cent to N580 million, compared with N145.4 million in 2016.

The Managing Director of the company, Mr. Andrew OtikeOdibi attributed the financial performance to the strength in the diversity of its business.

He said: “Our three business lines namely, Marine, Fleet management and Outsourcing are gaining strength in their different markets with each contributing positively to the overall performance of the business. This is not without the difficulties faced in the operating environment with rising financing and operating costs coupled with continuous pressure on turnover. We remain focused on sustaining delivery of superior customer service and continued diversification of earnings, to take advantage of growth opportunities in the markets and business segments we operate in.”

He said explained that despite inflation averaging 17.2 per cent in the period under review, its operating expenses grew by a meagre two per cent - underscoring the strength of the cost control and efficiency measures the company has put in place.

“Furthermore, demonstrating the benefits of diversification, our subsidiaries (Leasafric, Ghana and EPIC International FZE, United Arab Emirates) contributed 27 per cent to the Group’s revenue for the period relative to 22 per cent in 2016. Our plan for the rest of the year includes improving on cost efficiency while growing market share in our areas of operation. We are therefore investing a lot in technology based solutions that will help improve operational efficiency in the business,” Otike-Odibi noted.

He added that they are also exploring additional avenues to provide exceptional support services to our numerous clients in meeting their diverse business needs, whilst maintaining the high quality of our product offerings, declaring “we remain optimistic about our growth prospects.”

The company said fleet management continues to grow the business across the country, despite the high price of new vehicles, personnel outsourcing continues to record stable revenues and has expanded across several industries including oil & gas, telecommunications, banking, manufacturing and agriculture.