Earnings ReportFeatured

Newrest ASL Announces 20k Cash Dividend on Improved Performance, as it Commences its Planned Delisting Process

 

Company: NEWREST ASL NIGERIA PLC (AIRSERVICE)

Rating: Hold

Current Market Price at Earnings Release: N6.45

Intrinsic Value: N6.57

Latest Cash Div: N0.20

By: Jeariogbe Tunde Segun (Equity Analyst)

 

Key Financial Tickers:

  • This report explore the full year financial performance indices of Newrest ASL Nigerian Plc for the year ended 31st December, 2018
  • Meanwhile, it should be noted that, leading from the information released to the investing public through the exchange on 31st January, 2019. The board had been mandated by the members of the company, to seek voluntary delisting of all shares of the company from the Daily Official List of The Nigerian Stock Exchange.
  • Nevertheless, the result posted is an improved position against 2017 financial performance indices.
  • Major performance booster for the year was reported under other gains/losses column, where it reported Foreign Exchange Gain of N397.482 million as against the N88.806 gain reported in 2017

Dividend Information

  • Closure Date: 3rd May, 2019
  • Qualification Date: 26th April, 2019
  • Payment Date: 17th May, 2019
  • Agm Date: 16th May, 2019
  • Agm Venue: To be published

Corporate Figures

  • The Turnover figure (TO) grew outstandingly by 38.40% over the comparable year. TO moved to N5.425 billion from the previous N3.920 billion
  • Cost of Sales stood at N1.867 billion as against the previously reported N1.305 billion
  • Having considered the administrative expenses along the selling and distribution expenses the Operating Profit for the year is N582 billion as against the operating loss of N52 billion in 2017 financial year
  • Thus, Profit before Tax (PAT) soared by 284.96% above comparable year, as it stood at N1.509 billion against N392 billion
  • Similarly, Profit for the Period (PAT) galloped by 247.29% above what was earned in 2017. The new reported profit is N1.509 billion compared to the previous N428 billion
  • Total Comprehensive income followed similar trend as it moved from the previously reported N415 billion to N1.487 billion
  • Entering the year with the reserve balance of N2.860 billion, plus the Total Comprehensive Income for the year (N1.487 billion), estimated Retained Earnings for the year was N4.233 billion after deducting the N114.120 billion paid as dividend at the end of 2017 financial year.
  • Non Current Assets slightly reduced by 5.84% against the comparable year, as it is currently valued at N1.035 billion against the previous valuation of N1.099 billion
  • Meanwhile, due to increase in all Current Assets items (except other assets that dropped to N98.847 billion from N129.813 billion), the Estimated Current Assets value is currently N5.488 billion, this is 41.89% above the previously estimated N3.868 billion
  • It is noteworthy that the company runs the previous year with zero Non Current Liabilities; nevertheless, it reported a Deferred Tax Liabilities of N3.279 million under its Non current liabilities for the year under review
  • Current Liabilities on the other hand builds up by 12.37% to N1.626 billion as against N1.447 billion
  • With a slight improvement in the investment revaluation reserve, and the growth recorded in the retained earnings, the Net Assets for the year improved over comparable year by 39.02% as it is currently valued at N4.894 billion as against N3.520 billion

Liquidity/Risk Ratios

  • Considering both Current and Non Current liabilities reported for the year, we have estimated the Total Debt as 33.29% of the reported Equity; this is slightly above the industrial average of 32.27%
  • Current Ratio stood at 2.03x as against 2.87x industrial average. In other words, the company holds the strength of settling all its current liabilities as at when due
  • At a little reduced liquidity compared to industrial peers and market, the company Beta value as at the date of this report is slightly below unity
  • With interest coverage of 1.79x (estimated at 20% interest expense for the purpose of this report) the company can settle interest yielding loans as at when due

Profitability Ratios

  • Cost of Sales is currently estimated at 34.42% of the Turnover value, this is 3.31% above the 33.31% estimated from the 2017 financial data
  • Profit Before Tax Margin estimated for the year under review is 27.81% same as 178.15% above the 10% achieved last year. This confirmed improved profitability by the company
  • Similarly, Profit Margin is 27.42% at 150.93% above the 10.93% estimated at the end of 2017 financial year
  • Return achieved on Average Equity is currently 30.39% as against 12.17%
  • Return on Average Assets is 22,80%
  • See below table for details

Efficiency Ratios

  • Total Assets Turnover ratio, a test of management efficiency, is estimated at 83.17%, this is 5.39% above the 78.91% estimated last year
  • Equity Turnover on the other hand, dropped slightly by 0.45% at the estimated 110.85% against 111.35%
  • In other words, Equity was multiplied 1.33 times as against the 1.41 times achieved in 2017
  • Fixed Assets Turnover on the other hand improved slightly by 5.39% having moved from 78.91% to 83.17%

Investment Ratios

  • Reflecting the profit growth reported above, the estimated amount earned per units of shares (note total shares outstanding remains same) of Newrest Asl Plc is N2.35 as against the previous estimate of N0.68
  • The said earnings is a yield of 36.38% of the current market price on the exchange floor as at the date the result was released to the market. This is far better than the 13.79% yield estimated last year, even when the price was lower
  • Price earnings Ratio (PE/Ratio) moderated to 2.75x as against 7.25x
  • As against the N6.45 price on the floor of the exchange as at the released of result, the estimated Book Value per units share is N7.72
  • Further confirming the fairly underpriced position was the Price to Book Value ratio that stood below unity.
  • Also checked is the Operating Expenses Marging to the Turnover figure. We have currently estimated 27.42% margin as against the previously estimated 10.93% margin
  • Our estimates have revealed that the currently paid N0.20 is same as 8.52% of the year’s earnings, in other words, the Retention ratio is 91.48%

Valuation

In valuing each unit of Newrest ASL shares on the floor of the exchange, we concentrated most on the dividend stream, putting into consideration the possibility of it exiting the market before the next dividend is paid while setting our terminal point. We have conservatively placed each units of Newrest ASL share price at N6.57.

 

By: Jeariogbe Tunde Segun (Equity Analyst)

Comment here

Earnings ReportFeatured

Newrest ASL Announces 20k Cash Dividend on Improved Performance, as it Commences its Planned Delisting Process

 

Company: NEWREST ASL NIGERIA PLC (AIRSERVICE)

Rating: Hold

Current Market Price at Earnings Release: N6.45

Intrinsic Value: N6.57

Latest Cash Div: N0.20

By: Jeariogbe Tunde Segun (Equity Analyst)

 

Key Financial Tickers:

  • This report explore the full year financial performance indices of Newrest ASL Nigerian Plc for the year ended 31st December, 2018
  • Meanwhile, it should be noted that, leading from the information released to the investing public through the exchange on 31st January, 2019. The board had been mandated by the members of the company, to seek voluntary delisting of all shares of the company from the Daily Official List of The Nigerian Stock Exchange.
  • Nevertheless, the result posted is an improved position against 2017 financial performance indices.
  • Major performance booster for the year was reported under other gains/losses column, where it reported Foreign Exchange Gain of N397.482 million as against the N88.806 gain reported in 2017

Dividend Information

  • Closure Date: 3rd May, 2019
  • Qualification Date: 26th April, 2019
  • Payment Date: 17th May, 2019
  • Agm Date: 16th May, 2019
  • Agm Venue: To be published

Corporate Figures

  • The Turnover figure (TO) grew outstandingly by 38.40% over the comparable year. TO moved to N5.425 billion from the previous N3.920 billion
  • Cost of Sales stood at N1.867 billion as against the previously reported N1.305 billion
  • Having considered the administrative expenses along the selling and distribution expenses the Operating Profit for the year is N582 billion as against the operating loss of N52 billion in 2017 financial year
  • Thus, Profit before Tax (PAT) soared by 284.96% above comparable year, as it stood at N1.509 billion against N392 billion
  • Similarly, Profit for the Period (PAT) galloped by 247.29% above what was earned in 2017. The new reported profit is N1.509 billion compared to the previous N428 billion
  • Total Comprehensive income followed similar trend as it moved from the previously reported N415 billion to N1.487 billion
  • Entering the year with the reserve balance of N2.860 billion, plus the Total Comprehensive Income for the year (N1.487 billion), estimated Retained Earnings for the year was N4.233 billion after deducting the N114.120 billion paid as dividend at the end of 2017 financial year.
  • Non Current Assets slightly reduced by 5.84% against the comparable year, as it is currently valued at N1.035 billion against the previous valuation of N1.099 billion
  • Meanwhile, due to increase in all Current Assets items (except other assets that dropped to N98.847 billion from N129.813 billion), the Estimated Current Assets value is currently N5.488 billion, this is 41.89% above the previously estimated N3.868 billion
  • It is noteworthy that the company runs the previous year with zero Non Current Liabilities; nevertheless, it reported a Deferred Tax Liabilities of N3.279 million under its Non current liabilities for the year under review
  • Current Liabilities on the other hand builds up by 12.37% to N1.626 billion as against N1.447 billion
  • With a slight improvement in the investment revaluation reserve, and the growth recorded in the retained earnings, the Net Assets for the year improved over comparable year by 39.02% as it is currently valued at N4.894 billion as against N3.520 billion

Liquidity/Risk Ratios

  • Considering both Current and Non Current liabilities reported for the year, we have estimated the Total Debt as 33.29% of the reported Equity; this is slightly above the industrial average of 32.27%
  • Current Ratio stood at 2.03x as against 2.87x industrial average. In other words, the company holds the strength of settling all its current liabilities as at when due
  • At a little reduced liquidity compared to industrial peers and market, the company Beta value as at the date of this report is slightly below unity
  • With interest coverage of 1.79x (estimated at 20% interest expense for the purpose of this report) the company can settle interest yielding loans as at when due

Profitability Ratios

  • Cost of Sales is currently estimated at 34.42% of the Turnover value, this is 3.31% above the 33.31% estimated from the 2017 financial data
  • Profit Before Tax Margin estimated for the year under review is 27.81% same as 178.15% above the 10% achieved last year. This confirmed improved profitability by the company
  • Similarly, Profit Margin is 27.42% at 150.93% above the 10.93% estimated at the end of 2017 financial year
  • Return achieved on Average Equity is currently 30.39% as against 12.17%
  • Return on Average Assets is 22,80%
  • See below table for details

Efficiency Ratios

  • Total Assets Turnover ratio, a test of management efficiency, is estimated at 83.17%, this is 5.39% above the 78.91% estimated last year
  • Equity Turnover on the other hand, dropped slightly by 0.45% at the estimated 110.85% against 111.35%
  • In other words, Equity was multiplied 1.33 times as against the 1.41 times achieved in 2017
  • Fixed Assets Turnover on the other hand improved slightly by 5.39% having moved from 78.91% to 83.17%

Investment Ratios

  • Reflecting the profit growth reported above, the estimated amount earned per units of shares (note total shares outstanding remains same) of Newrest Asl Plc is N2.35 as against the previous estimate of N0.68
  • The said earnings is a yield of 36.38% of the current market price on the exchange floor as at the date the result was released to the market. This is far better than the 13.79% yield estimated last year, even when the price was lower
  • Price earnings Ratio (PE/Ratio) moderated to 2.75x as against 7.25x
  • As against the N6.45 price on the floor of the exchange as at the released of result, the estimated Book Value per units share is N7.72
  • Further confirming the fairly underpriced position was the Price to Book Value ratio that stood below unity.
  • Also checked is the Operating Expenses Marging to the Turnover figure. We have currently estimated 27.42% margin as against the previously estimated 10.93% margin
  • Our estimates have revealed that the currently paid N0.20 is same as 8.52% of the year’s earnings, in other words, the Retention ratio is 91.48%

Valuation

In valuing each unit of Newrest ASL shares on the floor of the exchange, we concentrated most on the dividend stream, putting into consideration the possibility of it exiting the market before the next dividend is paid while setting our terminal point. We have conservatively placed each units of Newrest ASL share price at N6.57.

 

By: Jeariogbe Tunde Segun (Equity Analyst)

Comment here