Latest News | News Break Nigeria Background The company is involved in lithographic printing and manufacturing of cartons, light packaging materials like labels and flexo-printing such as nylons and poly wrappers. The company was incorporated July 9, 1965, under the name of Studio Press (Nigeria) Limited and converted to a public company in 1979. The name of the company was subsequently changed on July 25, to Studio Press Nigeria plc in compliance with the provisions of the Companies and Allied Matter Act 1990. The company shares are quoted on the Nigerian Stock Exchange. The company shares outstanding was 594.2 million with shareholders fund standing at N2.16 billion as of March 31 2014. Financial performance for March 31 2014 For the first three months of the year, Studio Press revenues rose by 33.5 percent to N1.60 billion from N1.20 billion the same period in the corresponding year (Q1 2013). The company recorded a profit before tax (PBT) of N12.67 million in Q1 2014, representing about 369.4 percent increase from a loss position of N4.27 million as of Q1 2013. The input costs were high as cost of sales margin jumped to 84.2 percent in Q1 2014, as against 78.26 percent as of Q1 2013. Gross profits decreased slightly by 1.91 percent to N256.1 million in Q1 2014, compared with N261 million as of Q1 2013, this underscores the need for the company to intensify the management of direct costs. Studio Press ability to translate turnover into profits slowed as gross profit margin decreased to 15.98 percent in Q1 2014, as against 21.74 percent as of Q1 2013. Fixed asset turnover highlights the effectiveness of the company in generating turnover from investment in assets. The total asset turnover in the period was 0.94 times, signifying the Studio Press’ ability to translate investment in assets to turnover then to profits and subsequently to increased dividends. Current ratio, which measures a firm’s ability to meet its short-term obligation as at when due, fell to 1.84x in Q1 2014, from 2.19x as of Q1 2013. Total assets in the period under review fell slightly by 1 percent to N9.47 billion in Q1 2014, compared with N9.52 billion as of Q1 2013. The Nigeria economy has immense opportunity for Studio Press to exploit as its growing population of over 170 million and rising middle-class will push the demand for cartons, light packaging materials and poly wrappers. Share performance and outlook The company’s share price closed N2.40 on the floor of the Nigerian Stock Exchange while market capitalisation was N1.42 billion. BALA AUGIE
Posted on: Fri, 27 Jun 2014 00:45:37 +0000
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