03 SEPTEMBER 2012Thisdaylive.com
Stockbrokers in Nigeria Seek Proper Financial Reporting Standards
Edited by : AL CIRCLE
2 min read
First Aluminium Nigeria Plc failed to present its financial results for 2012 (first and second quarter results) during the company’s presentation of facts behind the figures held at NSE Wednesday.
Stockbrokers who were present at the occasion lamented the lack of financial statements from the company stressing that financial results provide a basis by which its performance would be judged.
Although they commended the company for coming to meet with operators of the capital market, they said the presentation of financial reports would further enhance the fate of the company at the market.
The company had in its results for the year ended December 30, 2011, recorded a gross profit of N324 million, compared to N629 million in 2010. Its turnover stood at N8.79 billion in 2011, as against N8.76 billion in the corresponding period of 2010.
According to the result, net assets dipped by 5.2 per cent to N5.95 billion, from N6.27 billion recorded in 2010, while value of equities shed 4.83 per cent to N2.88 billion, from N3.03 billion recorded in 2010.
The company’s fixed assets stood at N6.02 billion in 2011, from N6.27 billion in 2010, a decline of 4.05 per cent.
Further analysis showed that total current assets stood at N3.39 billion in 2011, from N3.79 billion in 2010, while total current liabilities stood at N3.32 billion in 2011, from N3.70 billion in 2010.
Speaking on the result, the company’s Managing Director, Mr. Ben Elfrink, attributed the profit decline to the wage cost, gas supply, electricity tariff, exchange rates and duty tariffs in favour of imports.
He explained that currently 85 per cent of all imported goods are substandard and encouraged Nigerians to patronise products manufactured in the country.
He said: “Patronising Nigerian made products is better than buying imported products that are most of the time substandard. Buying Nigerian made products has an extra value in developing the Nigerian economy and give employment for Nigerians.”
Stockbrokers who were present at the occasion lamented the lack of financial statements from the company stressing that financial results provide a basis by which its performance would be judged.
Although they commended the company for coming to meet with operators of the capital market, they said the presentation of financial reports would further enhance the fate of the company at the market.
The company had in its results for the year ended December 30, 2011, recorded a gross profit of N324 million, compared to N629 million in 2010. Its turnover stood at N8.79 billion in 2011, as against N8.76 billion in the corresponding period of 2010.
According to the result, net assets dipped by 5.2 per cent to N5.95 billion, from N6.27 billion recorded in 2010, while value of equities shed 4.83 per cent to N2.88 billion, from N3.03 billion recorded in 2010.
The company’s fixed assets stood at N6.02 billion in 2011, from N6.27 billion in 2010, a decline of 4.05 per cent.
Further analysis showed that total current assets stood at N3.39 billion in 2011, from N3.79 billion in 2010, while total current liabilities stood at N3.32 billion in 2011, from N3.70 billion in 2010.
Speaking on the result, the company’s Managing Director, Mr. Ben Elfrink, attributed the profit decline to the wage cost, gas supply, electricity tariff, exchange rates and duty tariffs in favour of imports.
He explained that currently 85 per cent of all imported goods are substandard and encouraged Nigerians to patronise products manufactured in the country.
He said: “Patronising Nigerian made products is better than buying imported products that are most of the time substandard. Buying Nigerian made products has an extra value in developing the Nigerian economy and give employment for Nigerians.”
Tagged with:Financial Reports
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